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What was the incident that happened to Nestle's Maggi in India? (Jotham)

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What was the incident that happened to Nestle's Maggi in India? (Jotham)

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Like its parent, Nestle India will stay away from the pricing game to maintain profitability. It will not get into discounting or launch low-margin products. “If something needs a pricing game, we would rather keep that out of our focus. This is something that has helped us as an organization globally and we would replicate that in India as well," adds Narayanan.

Based on the statement above, Nestle did not reduce the price of their product, instead they retain the price as a firm standing as a quality food producer.

Reference: https://www.livemint.com/Companies/xyFCHn7hGJm1zUkesEVy5L/How-Nestle-is-rebuilding-in-India18-months-after-the-Maggi.html

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1. Fadizan Mohd Fauzi (58589) (KETUA)
2. Jotham Ngu Ong Hu (56243)
3. Au Yong Min Fu (55544)
4. Leong Shean Shin (56404)
5. Eugene Chin Hwa En (55899)

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How Maggi could comeback from the situation? 

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How Maggi could comeback from the situation? 

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The role of pricing reflects Nestle standing in this incident. In this incident nestle insisted that their maggi product quality is not compromised which as they claimed it does not exceed the safety and health standards of MSG and lead hazardous level. Thus it is rational that they do not reduce their price instead they add value into their product and remain the price.

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Based on Maggi's previous communication strategy "Meri Maggi" and #HealthyIsEnjoyable, the previous strategies was considered a great success. However with the emergence of the ban incident, Maggi might need to shift their focus on a new campaign to inform and educate of Maggi nutrition information to gain back again the trust of their customer. For instance, Nestle could come up with strategies similar to #HealthyIsEnjoyable by introducing more healthier options of noodles with clear indication of it's permissible nutrition information therefore adding value into their product.

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Putting Nestle's case aside, the price places a major role on the authenticity or quality of a product. Usually, a high-end products are of high quality while low-ends are low quality. However, there are cases where company would charge less for a revolutionary or newly founded product. The reason for this might come to their decisions to use other companies as a reference point. Therefore, creating an appropriate strategy is important to discover the pricing and market for a certain product before a rash decision is made.

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Grab a Brand Ambassador with Good Social Image

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Grab a Brand Ambassador with Good Social Image

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Maggi can use a new brand ambassador that has good image and concerned about the social issues, this can help Maggi regain public's trust and confidence towards Maggi noodles.

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In value communication strategy, Maggi have to ensure that customer can evaluate the value of Maggi product positively by supplying them with information about Maggi offer. For example, Maggi could design a poster creatively with all the relevent information included.  Maggi can reduce negative reactions of customer to their pricing without reducing Maggi
overall margins.

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Constant Updates with the Customers and Media

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Constant Updates with the Customers and Media

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Maggi should conduct press conference and contact with media regularly. They should clarify themselves in the press conference, this can make public understand them more. Besides traditional media, they should actively engage themselves in new media also, as most of the users are youngster (a great consumer of Maggi). - Jotham Ngu

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The top of the pyramid where the prices are set at a realistic level appropriate to the quality of the product. The price setting shall be the one that is displayed on the market for selling purposes.

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The negotiation techniques or discounts which can be applied to the customers. A better version for pricing strategy under different circumstances.

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The tools to communicate the value and discount structure to the customers.

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The sliding scale for different customer. Different options that customer may take for the amount of services that they are willing to pay for.

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The value of a product and its importance on the market. How important the product or service is to the clients, features and benefits, how satisfied clients are, and how willing clients are to pay for the price.

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Youth and youngsters are one of the most prominent consumer of instant noodles or packaging products, it is therefore important for them to have interest in Maggi's products. Since they are either still on the bench of school or active in events, Maggi could take it as an opportunity to sponsor any sports or school events so its image could be restored in addition for publicity. Additionally, charity events are one of the best for sponsorship due to it receiving quite a good response from the public. A free testers or noodles in the form of food trucks could be added at the events to attract customers and such.