Maggi Lead Controversy | Maggi Business Case Study

There would be hardly any guy in india who has not eaten maggi but the interesting fact is that maggie which was most profit making product of nestle was not started by nestle maggie in reality was started by a businessman named julius maggie in the year 1886.

And in the year 1947 nestle acquired maggie after that maggie planned to go pan entire world and in the year 1983 when india won the world cup maggie had entered india maggie has 74 of india’s market share in the noodles market and no one was able to beat maggie till date.

What is the reason behind it there are three secrets behind this the three reasons is so powerful that if it wouldn’t have been their first two secrets would have been useless so what is the first secret the first secret is neuro marketing now how does it works see when maggie entered india for the.

First time so they firstly marketed themselves as a convenience product for women and they failed miserably the only reason was that focusing on consumer and not the buyers see what is the psychology of the buyer first of all who your buyer is and what maggie means to them the homemakers are the real buyers of maggie.

And how do their psychology work now see women’s psychology is simple in india the women are most interested in buying products for their kids and not for themselves and maggi committed the same mistake initially they marketed for women whereas they should have marketed for.

Kids after that maggie changed their marketing campaign but they faced another problem which was in india the staple diet is roti sabzi and dal chawal so what does maggie had to do maggie wanted to replace the snacks in india with maggie so they targeted the.

Snacks segment what type of snacks are consumed in india pakodas samosas sandwich all of this are consumed in india kids like to have all these items in the evening but these items need huge time to cook now the cheap alternative is chips and biscuits.

But there is one factor there is huge catch the catch is in quantity you understand this see if kids have to eat enough then they need at least three to four packs of the chips they will have to eat at least two of them and if it comes to biscuit they will.

Need three to four packets now you understand the psychology of women the household women believe if their kids have two to three packs of chips or biscuits then it is not healthy the reality is that one packet of maggi is more unhealthy than one packet of chips or biscuit but still how does.

Woman psychology works so woman psychology or our mother psychology simply says that if the kid is having chips or biscuit then it is unhealthy instead of that why shall not i cook and feed them with a single packet of maggi and this is where maggie has targeted the consumers studying their psychology.

After studying this magi remarketed themselves as 2 minute noodle and their slogan was taste to be healthy now you now you would ask is this all sufficient this is the reason why maggie is so successful today well no there is one more factor behind this so.

See the neural marketing of maggie is supported by the brand cues what are the factors in brand cues that maggi uses the first one is visual codex if you study the visual codecs of maggie if you see its logo then you will find two colors red and yellow.

These two colors are very much dominant colors and in the human body it increases glaring which is a hunger hormone so we feel hungry automatically looking at such things the second factor is design consistency if you properly study the logo and packaging of maggie then you will find that for years they have not changed it.

The reason is that they wanted to generate long-term recall value in our minds and even in our parents minds and the third factor is void killer there is void in everyone’s life so maggie observed that women are becoming detached from their kids and we must strengthen their bond and this void is filled by maggie with its emotion.

Storytelling they designed their ads in such a way that that they strengthen the bond between mother and child and this is what all mothers need okay so that is why mag is dominating well no this is not the reason behind maggie’s.

Domination the real reason is behind domination is something else so see in the year 2015 maggie was banned when maggie was tested in the lamb then it was founded that maggie contains illegal quantities that is lead in msg at that time the allowed quantity was 2.5 pbm.

And maggi sample contained 17.2 ppm of lead in msg and these are very dangerous levels because of which maggie was banned now what happened with maggie at that time on 5th of june 2015 maggie recalled its stock with worth 300 crores from market the interesting thing is that after.

Eight months maggie made a comeback how see maggie was banned in june 2015 but they did not stop their marketing from august end they resumed their marketing campaigns and use nostalgic feeling they introduced good campaigns such as we miss you maggie maggie is now safe.

Now what happened with those campaigns the communication with the consumers increased and did not break but became stronger see it was banned in june and relaunched it in november properly by passing the three tests and when it was launched they collaborated with snapdeal they launched it very smartly.

Flash sale was used flash sale means available for short duration and stock will not last long what happened due to this and they built the scarcity in the market they run a campaign with collaboration with snap deal with snapdale dilki deep and that’s where they had a short of 5 minutes in those 5 minutes they sold 60.

000 packages of maggi thus maggi understood that they are still king and they just need to re-enter the market but maggie’s comeback would never have been possible if maggie had not used this strategy the strategy is range brand marketing strategy.

Now what is this see the range brand marketing strategy you would have launched a range of products under a brand name how many brands of maggie are sold spices sauces soups upma pasta are sold so much variety of products are sold under one brand that is monkey the advantage of this is.

If one product face an issue still brand would not be that affected and name is not directly damaged because of so many products and that is why maggie has launched so many products even if any issue comes in future then they are not dependent on a single product and their brand value is not.

Affected too much okay that’s why maggie is so much successful no if maggie did not have this three secrets then first two secrets would have been useless as i mentioned.

What is the third secret apc now how does it works a is for addiction maggie is very addictive so much that you can’t even resist or imagine how does it work now see some substances added in the maggi which makes maggie addictive.

The first substance is flavor enhancer it does two things first makes the aroma or smell stronger of the very strong and then it goes into the nose and increases the hunger frequency and second thing is enhance the taste.

What happens because of this so when you eat maggi your body releases dopamine a happy hormone and our body needs large amount of dopamine now see this would have not worked at all if these two things contained were not added to maggie there are raising giants and gurgum the two things increases the.

Density of maggie makes it thicker makes it more filling due to this two things happens first when you eat you get the taste and dopamine is released second you eat and fill fulfilled still your body releases more dopamine and dopamine is highly addictive so anything that releases dopamine is.

Addictive may it be a video game or social media now p is for pricing if you look at the pricing of maggie then they have not increased much it was for 7 rupees then 10 rupees and now 12 rupees not a much rise now what are the reasons behind this first is the positioning of my key.

The positioning and pricing does goes hind in hand the positioning is as an affordable snack if you see the positioning is an affordable snack if you have to keep affordable so you have to keep the rates low second is the buyers maggie no it buyers their first buyers are women 70 of.

Maggie is purchased by women why because they go for the grocery shopping and the women are much price sensitive than men when they buy the ration they avoid the most expensive things especially when it comes to grocery and the second is reselling maggi is very much into reselling if you have observed.

There are so many shops outlets on the hill stations where maggie is sold people sell it for 30 and 40 rupees over there so if maggie increases its prices then those people will stop selling maggie and maggie will suffer suffer losses now over the years inflation is there but how did maggie managed all this.

Well it is quite simple they have reduced the quantity and packaging if you observe maggie had 100 grams earlier now they have kept the price unchanged at rs 12 but reduced 70 grams because of which.

They are able to sustain at such a low price and c means convenience see maggie provides so much convenience to people it is made within 2 minutes it tastes good also you can take it wherever you want addiction price.

Convenience and apc combine these three things with two strategies of maggie which forms an unbeatable brand so thank you so much guys this was it for today’s video i hope you have liked this video if you want to know more about us do visit our website called starterplanes.com.

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