Mini Case Study #54

Why is Maggi still #1 in India?

2 min read Food & Everyday Prices

Mini Case Study 54 poster: Why is Maggi still #1 in India?

Why is Maggi still #1 in India?

In June 2015, Maggi disappeared from Indian shops.

Food regulators said some samples had more lead than allowed. Nestlé said the noodles were safe.

Around ₹320 crore worth of Maggi was destroyed, reports say.

Its share of the instant noodles market fell from about 80% to almost nothing.

For five months, Yippee and Top Ramen had the shelf to themselves.

Then the Bombay High Court ordered fresh tests at three labs. Maggi passed.

It came back in November 2015.

Snapdeal put 60,000 Maggi kits on sale. They were gone in 5 minutes.

Today, estimates put Maggi at around 60% of the market.

India ate over 6 billion servings in FY24, reports say.

That's roughly 1.6 crore plates a day, and it makes India Maggi's biggest market in the world.

So why did people run straight back to a ₹14 packet that had just been banned?

A lot of it goes back to 1983.

Instant noodles were new in India then. Maggi didn't have to beat anyone. It had to teach people what this thing even was.

The ads kept showing one scene. A kid comes home hungry, and mom makes something hot in two minutes.

It never actually takes two minutes.

People bought it anyway, because the ad was really selling a quick answer to "Mummy, bhook lagi hai."

Do that for 40 years and the brand becomes the word.

Nobody in India says "make me some instant noodles." We say "Maggi bana de."

This is called a Generic Brand Generic Brand = when one company's name becomes the everyday word for the whole product, like Xerox or Colgate.

That's a headache for every rival. Even when people buy another brand, a lot of them still call it Maggi.

Then add everything it got attached to over the years. Hostel nights, exam nights, rainy evenings, the Maggi point on the way to the hills.

So in 2015, people weren't trying a new product. They were going back to one they grew up with.

The Brutal Reality:

Maggi didn't come out of the ban untouched.

It was around 80% before 2015. It's around 60% now. Some customers never came back.

But reports say the Maggi side of Nestlé India still brings in over ₹6,300 crore a year.

The ban kept Maggi off the shelves for five months.

It couldn't stop India from saying "Maggi bana de."

✍🏻 Mantra Joshi

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