What would Maggi (Nestle India) do to salvage its Reputation?
http://www.instructables.com/id/Making-Indian-Masala-noodles/

What would Maggi (Nestle India) do to salvage its Reputation?

With Indian Food Inspectors ordering Nestle India to recall a batch of Maggi instant noodles identifying dangerous levels of lead and MSG (click for entire report), Maggi (Nestle India) is now caught into a vicious circle of bad reputation.

Maggi till date has been enjoying a brand that could connect people to not only a product but to the whole concept. Maggi has become the other name for “Instant Noodles”. Even if someone purchases Top Ramen Noodles or Sunfeast Yippe Noodles, it would still be assumed as another type of noodles but not instant noodles. At times Maggi is been sought for as a quick alternative to the staple food. However what problems the present crisis would create to Maggi is to be watched.

What is causing the bad reputation?

Due to the present situation, the internet has started talking more and more about the ill effects of Maggi which is considered as itself a brand. This has given an opportunity to rumour mongers and gossipers to start talking more and more about the ill effects of Maggi. The social media such as Facebook, twitter and google+ will now be abundantly supplied with information of what is good and what is bad and how Maggi (Nestle India) is cheating its customers. Hash tags like #Maggi, #Maggiban are being voiced over in the internet. Famous mobile messaging apps like whatsapp, wechat, etc., will now spit the venom against Maggi.

What are the ways to salvage Nestle’s / Maggi’s reputation?

Though Nestle India might say it has nothing to do with the situation and all stories of “There is no MSG in Maggi” people would hardly listen to it. Alternatively they will have to work on neutralizing their negative reputation. My friend (whose daughter is maggi’s ardent fan) has already dumped the existing 8 pack maggi masala noodles to the dustbin. So what would Maggi (Nestle) do to convince customers like my friend to be loyal to them?

PR, PR, PR

Give lots of Press releases, notifications, what all and what not. They can either tell the world that they have recalled all defective packs or say that they no longer exist. I understand they have already started working on the latter. They will have to submit their research to the world to prove their words. They will have to win in the court of public opinion. Though one of the methods of Bad publicity is to apologise, but here it might actually work against them.

Lots and Lots of Advertising

Advertising can play a big role to salvage their reputation. When Cadbury got into the similar problem of worms in chocolates, they had to resolve it with a lot of advertising. They robed in Amitabh Bachchan as their brand ambassador to speak on their behalf. They showcased the new poly packing and the new imported machineries to say that their processes have changed and changed for the good. And what was the result? In a span of 6 months they recovered to still be the leaders in the indian chocolate industry.

Maggi already has Amitabh Bachchan and Madhuri Dixit as their brand ambassadors. What is now required is some heavy advertising with a view of creativity and persuasion that might help to salvage the current situation.

In my opinion, advertisements which explains their processes, procedures and the systems-in-place rather than tasty, yummy, healthy noodles. It brings down the pressure among people to reject Maggi.

Corporate Social Responsibility (CSR)

Now is a very good time for Nestle India to showcase their Corporate Social Responsibility (CSR). They have a good policy related to CSR and hence As part of their CSR they might concentrate more towards nutrition than other activities like rural development or water sanitation or the environment.

CSR is one of the great tools to say you care for people and surroundings too.

Influencers

Yes, Now is the best time for them to bring in influencers who can talk about healthy good food and influence people. People like Sanjeev Kapoor and Vikas Khanna could help play a role in neutralising negative reputation. Nestle could also become sponsors to any “All vegetarian cooking show” like Master chef’s fourth edition

Social Media

This might not be a right time for them to run social media campaigns unless they are coupled for above solutions. Other campaigns might be harmful for them.

Conclusion

Maggi earlier too had faced lots of rumours and criticism related to having Non-vegetarian ingredients on the Vegetarian Masala Noodles and to which they had to respond well using effective PR. But this time it is on a more serious scale. This time FDA is also involved. So what approach would they take to salvage their reputation is to be watched. They also have a challenge to delink the previous rumour (non-vegetarian ingredients in vegetarian noodle) with the current crisis, else they might get sucked into a black hole.

Tip to Nestle: If you are already not doing them, you could pick up some cues from here or probably purchase my book “The Reputation builder” where I talk about how to neutralize negative reputation J

Others… Please comment on what do you think they might do to salvage their reputation?

Sachin Garg

Director Innovative Concepts, Building Gurugram, Consults Investor Right Property for better Networth, Builders JV & Collaboration, Startups & Funding; India Sales & Mktg; Nobrokage.in #Investor #Cofounder

8y

As this is quality issue & non standard item against the FOOD norms, outside india had it happened the sales wd be banned with stock returns, in India nothing concrete will happen n people will forget the things, meanwhile retailer will sell fast & shortage will start soon. Nothing is suggested to company rather increase production with new Norm, launch improved campaign & enjoy 10-15% growth. Better keep PV Narsimharao silence as any communication will further aggravate and hit them back.

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