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Preksha Singh
Preksha Singh
Founder @Cosmolance Tech | Full Stack Marketer | Published Author | Alum NSRCEL, IIM Bangalore
Published Feb 22, 2023
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In 2015, Nestle was hit with a major setback when its popular Maggi noodles were banned in India after being found to contain high levels of lead. The ban came as a shock to consumers and caused Nestle’s share price to drop by 11%. It was a difficult time for the company but, thanks to some quick thinking and speedy action, Nestle managed to rebound from this setback and come out stronger than ever. Let’s take a look at how they did it.
Maintaining Brand Loyalty During the Ban
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Nestle responded quickly to the ban on Maggi by launching an aggressive campaign to maintain brand loyalty during this difficult period. They used TV and radio commercials to reassure customers that their products were safe and that they were working hard to resolve the issue as quickly as possible. It also conducted extensive testing on all of its products to ensure quality control and customer safety. This allowed them to rebuild customer trust in their brand even while the product was unavailable.
Expanding Their Product Line
In addition to maintaining customer loyalty, Nestle also took this opportunity to expand their product line. While Maggi noodles were temporarily unavailable, Nestle put out a number of new products such as breakfast cereals, oat-based snacks, chocolates, and more. This allowed them to tap into markets that had been previously untapped by their main product range. It also helped them diversify their portfolio so they would not be dependent on one product alone going forward.
Improving Supply Chain Management
Finally, Nestle worked hard behind the scenes on improving supply chain management methods in order to ensure that their products were able to reach customers faster and more reliably than ever before. By streamlining their supply chain processes, they were able to reduce costs while still providing customers with high-quality products in a timely manner. This enabled them to remain competitive even during a time when other companies may have struggled due to supply chain disruptions or delays.
The ban on Maggi noodles could have been disastrous for Nestle but, thanks to some quick thinking and speedy action, they managed not only to survive but thrive during this difficult period. By maintaining customer loyalty through an aggressive brand campaign, expanding their product line into new markets, and improving supply chain management methods; they emerged from this setback stronger than ever before - all while remaining competitive against other companies in their industry!
In short, Nestle proved yet again why it is one of the most successful brands in the world today!
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