BRAND APOLOGY ?

CRISIS MANAGEMENT
 Maggi – The Two Minute
Revolution
1 Nestle India Limited (NIL) – The Indian Subsidiary of the global FMCG Major, Nestle.

2 NIL introduced Maggi to the Indian consumers in the year 1982

3 In July 2001, Maggi replaced Nescafe as the company’s core brand

4 Commanded 80% share of the India’s noodles market

 21 May 01 June 05 June 16 June 03 July 13 Aug 9 Nov
2015 2015 2015 2015 2015 2015 2015
1 2 3 4 5

Indian State Nestle Nestle Nestle to Testing on Verdict in Relaunch of

orders recall reassures backtracks destroy Maggi favor Maggi
of Maggi customers and recalls withdrawn noodles
noodles all Maggi noodles Abroad
Noodles
from India
Maggi's brand was valued at $2.4 billion prior to the
ban, which ranked the noodle manufacturer as the
23rd most valuable food brand in the world.
However, the $50 million loss of goods combined
with a damaged brand will result in a reduced brand
value of $2.2 billion.
Untangling the
noodle mess
 TWITTER
Nestle replied to all the queries
NEWSPAPER related to Maggi
Nestle kicked the relaunch
campaign that said “Your Maggi
is safe, has always been”

TV AD
Nestle highlighted the
emotional connect with the
brand.

FACEBOOK
Nestle Launched
# WeMiss youToo ad campaign
on social media to speak to
young consumers
“This was a case where you can be so right and yet so
wrong,” says Nestlé CEO Paul Bulcke. “We were right on
factual arguments and yet so wrong on arguing. It’s not a
matter of being right. It’s a matter of engaging the right
way and finding a solution.” He adds: “We live in an
ambiguous world. We have to be able to cope with that.”
 1824 1948 1967 1997 1990 2003 - 2018
04
1 2 3 4 5 6

Company Began its Five Star Bournvita in Target Adult Worm Present
founded by operation and Gems Sachets group Controversy State
John
Cadbury
Worm – Controversy - 2003

1 “Festival of Light” was approaching in 2003

2 Fresh stocks send over to 6.5 lakh outlets in India

Worm reported in Cadbury Dairy Milk chocolate bar

3
in Mumbai from 8 outlets
4 FDA seized the stock and sent it for analysis

5 Market share of Dairy Milk was around 35%

The Crisis Snowball

1 In 3 weeks – close to 1000 advertisements on Newspaper and 120 TV clips in ten languages

2 As per FDA, the problem was at manufacturing unit or improper packaging

3 Negative publicity melted Cadbury’s sales by 30% at a time, when it sees a festive spike of 15%
Backfire

1 Denied the responsibility

2 Project ‘Vishwas’ – 190000 retailers and response to media

3 “Purity” sealed Packaging – cost company 15 crore (imported machinery)

4 Marketing and convey message about safety of product

Recovery and other facts
75%* - Cadbury Dairy Milk come to their mind when they here
word “Chocolate”

62%* - Favorite chocolate is Dairy Milk

66%* - Loyal Customer

Dairy Milk Sales

68% Oct 03 65.9% May 05

64% Jan 04
Battle of the Bottles
 1967 1977 1977 1989 1993 2003 - 2004
04
1 2 3 4 5 6

Coco – Cola Coco – Cola Campa Cola Coco – Cola Pesticide Kerala Plant
Pepsi
entered left India again hit the Controversy Shutdown
Indian instead of Indian
Market revealing market
formula
 Pepsi and Coke Pesticide controversy
2003 - 2006
Under fire – For manufacturing carbonated beverage that contained
1
local groundwater

Pesticide residue found was 12 times higher than new safety

2
standard

3 CSE identified toxins including – lindane, DDT and Malathion

*CSE – Center for Science and

Environment
 After Effect

Gujarat and MP banned the sale of Coke and Pepsi

Sales dropped by 30% – 40 %

March 2004 – Kerala shutdown $16 million

Coco Cola bottling plant for polluting

Local water bodies

Brand Revival

1 Company held a joint press conference

2 Launched independent campaign to reassure public

Answered questions on their website and differentiate it as

3
‘myths’ and ‘facts’
4 Rebranding

5 Pricing strategy

6 Brand (re)lives by its Ambassadors

THANK YOU !!!!
Presented By :
Aanchal Gupta
Chetan Shekhawat
Gaurav Singh
P.Megha
Tejasvine G V
Vishnu Prasath