Meri Maggi Story – May 2015

March 2014, Government Regional Public Analyst Laboratory on the Baba Raghav Das Medical College campus in Gorakhpur reported Maggi samples found to contain MSG, contrary to its labelling of ‘No added MSG’. Maggi would have gotten away with a Rs 10000 / 200$ fine, if it had not insisted on taking the samples to Central Food Labs in Kolkata. [Indian Express report here]

Soon Maggi sales were banned in several states in India. The Maggi brand, created carefully over the past 30 years, as a quick midnight meal or a young mom’s last minute saviour, was looking at a collapse.

The question we had was – Is Maggi really synonymous with instant noodles? So did people stop eating noodles when Maggi was banned or did they shift their loyalties to other brands such as Yippee and Top Ramen.

Answer lies in the Data.

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In April, Maggi has more than 90% market share in the Instant Noodles sector. 

Maggi_Apr

Market Share of Instant Noodles in April 2015

Maggi is banned in several Indian states in May 2015.

MarketShare

Market Share of Instant Noodles brands over time

Yippee now definitely has higher market share. But does it mean that Maggi users have no brand loyalty??

Maggi_AbsSales

Sales of Instant Noodles as a percentage of sales in April

NO, People have just stopped eating noodles. Total sales of instant noodles has fallen to 25% of what it was in April.

Maggi_abssales_compare

Sales of Maggi, Yippee and TopRamen since Apr 2015

Sales of Yippee noodles has definitely doubled, however not enough to fill the crater left by Maggi ban.

There are two groups of instant noodles consumers who used to earlier buy Maggi

  • A whopping ~ 80% belong to ‘Noodles means Maggi. No Maggi = No Noodles.
  • Remaining 20% have moved on to other brands. Will they rebound back to Maggi?

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