Nestlé (Dis)entangled! Braving the Maggi Noodle Crisis in India (B)

After a tumultuous five months, Nestle India was exonerated in the Maggi crisis just in time for Diwali. Although the mood was one of vindication, the leadership team with Suresh Narayanan at the helm, knew they faced a major challenge to regain lost glory. Stock price had plummeted along with consumer confidence which went down from over 90 to less than 5 per cent. Part B traces the efforts of Nestle India to not only reinforce the message of product quality but also to engage consumer trust. Through changes in product strategy, organisational structure, and multi-pronged communication, Maggi was able to rekindle the emotional connect with the consumer and surge back. On 30 November 2019 despite loss of market share, consumer faith and trust in 2015, Nestlé India was trading at INR 14,453/55 (NSE/BSE;~US$225) per share after hitting a record low of INR 4981 (~US$76) on 29 February 2016. Part B of the case outlines the measures Nestle India took to bounce back and asks if Nestle India’s reputation is out of the woods. Could the past come back to haunt Maggi or was the worst behind them?