Maggi, Nestlé, India, noodles, SWOT analysis, marketing strategy
The document is a presentation answering the following question: What corporate strategy to overcome the Indian food regulation issue?
The study is based on the company Nestlé and its Maggi products.
[...] to reassure the food regulators all over the world 2. To understand better the reasons of the failure of QA on that element 3. to make sure that specific product was the only one involved. • The improvement of our image thanks to this communication program, if effectively sustained by programs of stricter controls, might also improve the image facing the financial markets and, as a consequence help to control the impact on NESTLE shares. [...]
[...] What corporate strategy to overcome the Indian food regulation issue? What corporate strategy to overcome the Indian food regulation issue? DEFINITION OF THE CONTEXT • MAGGI owns 70% of the noodles market in India. • On may 2015, food inspectors found higher than permitted levels of monosodium glutamate and lead in some MAGGI products in the state of Uttar Pradesh • Resulting on this inspection, the trading license of MAGGI in India was under threat, and the national regulator asked for recall of all variants of instant noodles. [...]
[...] • This marketing program should also take into account consumers feed back in order to play and to show value in the relation between the company and its customers. • All those elements should take example on the communication program developed by SAMSUNG when they had issues with the Galaxy Note battery showing commitment through different angles: • • Damage control Customer oriented marketing IMPLEMENTATION • In terms of implementation, the company should act and show a reinforcement of its quality control assessments all over the world, and especially on its Indian's production • At the same time, a global review over all products, branch by branch, should be performed in order • • • 1. [...]
[...] • In that context, the reaction of the company could have been more customer oriented and could have, in fact, anticipated the possible issues by contacting the national regulator themselves. • That would maybe have allowed the company to restrain the financial impact, for instance providing the authority with a plan for withdraw of products and, for instance, a series of analysis to prove the safety of the other type of Noodles. • That strategy is, in itself reduced in terms of cost and could have prevented the spread of the “scandal” by showing good faith to the regulator. [...]
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