Maggi is an international brand of instant
noodles owned by Nestle since 1947. (1)The company originally was formed in
Switzerland in the year 1872 by Julius maggi. Maggi noodles were launched in
India in the early 1980. The Chairman of Nestle Carlo M Donati brought the
noodles to India
As a customer we play a major role in
the economy local, nation and international. The maggi controversy has broken
many hearts as they found MSG (Monosodium glumate) and lead which was 17.2 parts per million which
is nearly 7 times more than the limit which is allowed in the noodles.(2) When
the maggi was tested they found MSG and the packet of Maggi stated to “NO ADDED
MSG” .Maggi had offered to remove the word “NO ADDED MSG ” from the packet of
Maggi. 13 samples which were tested in Delhi 10 of the packets of maggi had
more content of lead than it was allowed.
After the lab test maggi was banned by Food safety and standards
Authorities of India in the year 2015 .(3)
FSSAI had forced Nestle to withdraw the
product from the market.
FSSAI had noticed 3 major problems in
maggi for consumers
presence of lead present in the maggi had exceeded the limit.
company was misleading the customers by saying “NO ADDED MSG” on the packet. This
salt version of glutamic acid is an amino acid the body can produce on its own
but the processed MSG found in the processed food products can cause many
adverse reactions, including skin rashes, itching, hives, nausea, vomiting,
migraine headaches, asthma, heart irregularities, and depression.
Impact of the controversy of on the company
The company almost controls 70 per cent of the
market on instant noodles in India. The ban of maggi had effected the sales of
the company across India. The sale of maggi
was dropped by 60 %. Due to the drop of sales nestle had to bare a loss
of Rs 124 Crore in 2015. After tha ban not only the sales but the share price
were also dropped by 13.5% . Many retailers in India had to take off maggi from
their shelves after tha ban . The main impact after the ban was on consumer they
started thinking that there health will be at a stake if they start consuming
the product which has Lead and MSG. This had shaken the confidence of the consumers.
After the ban many people were affected such as the employees of the company,
suppliers, stakeholders, share market and competitors.
Due to the ban of maggi almost 15000
employees got affected.
Nestle company came in trouble when a
food inceptor in may 2015 in Uttar Pradesh found that the content of lead is
more that its allowed. The ban of maggi was done by the Delhi government on
July 3 2015.On July 5th food safety and standards authorities of
India had recalled 9 samples of maggi which were tested and had made a decision
that they are unsafe for human consumption. On the same day food safety of
United Kingdom had launched a investigation to find the level of lead present
in Maggi noodles. On july 6th maggi was banned by India and Nepal.
Maggi noodles were banned in 5 five African nations Kenya, Uganda, Tanzania,
Rwanda and south Sadan by a super market
chain after a complaint of Consumer Federation of Kenya. The test was also
conducted by the US health regulator and they showed no dangerous level of lead
in the product. The Ministry of corporate affairs had placed a fine of Rs 640
crore on the company.
The controversy of maggi has exposed
pathetic condition of packed food industry.
% population of India prefers Maggi, 18% of the people prefer yipiee
noodles,6% people prefer Wai Wai and the
rest of the 6% people prefer other noodles brand.
98% of the people were aware of the
controversy of maggi.
of the people think that the ban was due to political conspiracy
% of the people still trusted maggi whereas 18% of people lost tere trust after
they got to know that it has more content of lead
the ban of of maggi 60% of people where still using maggi products whereas 40%
of the people had completely stopped using maggi which effected the company’s
After the ban
of maggi Nestle company had made a plan to stay on board without manufacturing
maggi this was a three year strategy plan which nestle had to follow in order
to make a comeback in the market.(4)
How the company
made a comeback in the market?
Mr Suresh Narayanan the country head of maggi
had said after the ban of maggi it seems like we as a team are reconstructing
the demolished house.(5)
After the loss
of the maggi the company started building new categories, the company started
making a balanced portfolio to reduce being dependent on single product. The
company started focusing more on health and nutrition in the product. Nestle
started working more on advertising their products and most importantly stared communicating
directly with the consumers. After the ban
of maggi the company started entering the market with new products such
Nespresso (a coffee machine) . the work started immediately after the ban of
maggi within six months the company launched 30 new products.
How maggi made a comeback in the market?
On November 5th 2015 Nestle
brought the product back in the market. The company had worked on maggi to make
it 100% safe for the customers. Maggi had cleared the entire laboratory test
which was conducted by the Bombay high court. (6)The noodles which were
relaunched where being manufactured at three factories located in Punjab,
Karnataka and Goa. After the ban was released maggi was re launched in more
than 100 towns through 300 distributors.
corporate social responsibility (CSR) is a standout among the
maximum vital thoughts within the company. however the growing exploration work
directed inside the field of CSR it is extremely hard to operationalize the construct and provide a reliable and
valid degree to seize one of a kind measurements of CSR. The points of this
research are unique. in the first region, it adds to know-how the enterprise
case for CSR in growing countries by means of concentrating at the shopper
emotions toward marketing thoughts took after by means of the local and
similarly multinational companies. the second one goal of the reflect on consideration
on is to accumulate a scale via directing a whole audit of writing to create
swimming pools of factors to gauge the overdue limit on Maggi noodles in India.
Settle’s superstar picture Maggi is confronting the warmth of boycott in India
due to the fact that June, 2015. It became because of a scene that passed off
inside the country of Uttar Pradesh wherein a couple of checks of Maggi moment
nobles were observed to include lead and monosodium glutamate past as some
distance as possible. exams have been led in government and similarly in
personal labs, but the end result of the take a look at consequences uncovered
opposing discoveries. on this paper an undertaking has been made to develop a
scale incorporating three precept build to gauge the CSR routine as regards to
Nestle India. those are publicizing correspondence made by way of Nestle India
for the maximum component with the aid of large names having no clue about the
fixings show within the stuff which is basically targeted closer to the kids
and youthful grown-ups, besides, regardless of whether or not the ordinary CSR
standards have been clung to and sooner or later to analyze whether or not fear
for consumers had been given due regard. To seize those builds a touch scale
turned into created to investigate the impact of the purchasers who are for the
maximum element inside the decrease age magnificence. The discoveries of the
examination discover that Nestlé might be extra receptive to the requirements
of the general population and will control the desired fine standards given
that has almost 80% piece of the overall industry in India. unique parametric
and non-parametric checks have been utilized to set up the legitimacy and unwavering high-quality of the dimensions.
The results of thing examinations exposed the construct legitimacy of the
dimensions and the alpha esteems are additionally internal as some distance as
possible. The element score relapse uncovers that the customer may not unfold
effective communique until the item complies with all well being standards. The
effect of late boycott has additionally been observed to influence the logo
reliability conduct of shoppers. Administrative ramifications and diploma for
additionally examines has likewise been pointed out for scientists running in