Reviving’Maggi’in’India,’’ - · PDF...

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Transcript of Reviving’Maggi’in’India,’’ - · PDF...

  • Reviving Maggi in India - Presen0ng to: Suresh Narayanan, Head of Nestle India Ltd. (NIL)

    Project Team Anja Kievelitz Sarah Daniel Peter Mandel Timon GoJschalk

    Duesseldorf University Consul0ng

  • March 2014: Lab analysts found monosodium glutamate (MSG) in product samples NIL ini1ated further tes1ng:

    Illegal levels of lead were found in in-house tests June 2015:

    600 batches external lab tests showed levels within allowed limits 1000 samples in-house tes0ng showed levels within allowed limits

    The crisis is threatening Maggis posi0on in India

    Team Duesseldorf 2

    Controversial lab results paired with heated debates caused substan0al confusion for consumers

  • 1. Market strategy: How to regain market share

    2. Preven0on management: Learn your lessons

    3. AXer crisis management: How to avoid long term damage

    Agenda

    Team Duesseldorf 3

  • The four pillars of the market strategy

    Team Duesseldorf 4

    Pricing

    Compe0tors Product

    Communica0on

  • The four pillars of the market strategy

    Team Duesseldorf 5

    Pricing

    Compe0tors Product

    Communica0on

    Commu- nica0on

    Launch new website that informs about standards of quality and product ingredients and its sources

    Use TwiJer feeds and other social media channels in order to support the websites message

    Launch Nostalgia marke0ng campaign that connects to customer emo0ons and reminds them of why they like Maggi instant noodles

  • The four pillars of the market strategy

    Team Duesseldorf 6

    Pricing

    Compe0tors Product

    Communica0on

    Product

    New labeled product with with free MSG, free lead

    Ensure FSSAI approval. Good product labeling

  • The four pillars of the market strategy

    Team Duesseldorf 7

    Pricing

    Compe0tors Product

    Communica0on

    Pricing

    Sunfeast Yippee Noodles

    Smith and Jones

    Top Ramen

    Knorr Soupy Noodels

    Patanjali AJa

    Noodles Compe0tor

    Reac0on to Maggi Ban

    Undertook aggressive campaign and doubled produc0on to fill demand

    Launched new product with No MSG and No Lad label

    Maggis compe00ve reac0on

    Start with penetra0on pricing and increase prices by incremental steps

    Start with penetra0on pricing and increase prices by incremental steps

    Start with penetra0on pricing and increase prices by incremental steps

    Capture free market demand with new labeled product Imita0on strategy for lables

    Compe00on

  • 2. Preven0on management: Learn your lessons

    Team Duesseldorf 8

    Fast. Pro-ac0ve. Transparent.

  • 2. Preven0on management: Learn your lessons

    Team Duesseldorf 9

    Fast. Pro-ac0ve. Transparent.

  • 2. Preven0on management: Learn your lessons

    Team Duesseldorf 10

    Press release: 16 days aXer news broke out. NILs measures in the past:

  • 3. Preven0on management: Learn your lessons

    Team Duesseldorf 11

    Press release: 16 days aXer news broke out. NILs measures in the past:

    Same-day communica0on Con0nuous updates via social media such as

    TwiJer and Facebook React fast to every new development

    NILs measures in the future:

  • 2. Preven0on management: Learn your lessons

    Team Duesseldorf 12

    Fast. Pro-ac0ve. Transparent.

  • 2. Preven0on management: Learn your lessons

    Team Duesseldorf 13

    NIL was confronted with heated debates Did liJle to calm the public

    NILs measures in the past:

  • 3. Preven0on management: Learn your lessons

    Team Duesseldorf 14

    NIL was confronted with heated debates Did liJle to calm the public

    NILs measures in the past:

    Implement Crisis Control Board. Execu0ve: Head of Public Affairs

    Address the public and most important stakeholder directly

    AJend talkshows in order to underline the high standards in the past

    Offer help for inves0ga0on process

    NILs measures in the future:

  • 2. Preven0on management: Learn your lessons

    Team Duesseldorf 15

    Fast. Pro-ac0ve. Transparent.

  • 2. Preven0on management: Learn your lessons

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    Intransparent comunica0on NILs measures in the past:

    Release external laboratory analysis Inform press about latest news and

    developments directly

    NILs measures in the future:

  • 1. Regain customers trust in the brand

    2. Invest in quality & safety management

    3. Adapt short term produc0on to current demand

    The three steps of aXer crisis management: How to avoid long-term damage?

    Team Duesseldorf 17

  • 1. Regain customers trust in the brand

    2. Invest in quality & safety management

    3. Adapt short term produc0on to current demand

    The three steps of aXer crisis management: How to avoid long term damage?

    Team Duesseldorf 18

  • AXer crisis management: 1. Regain customers trust in the brand

    Team Duesseldorf 19

    Be transparent about the quality and safety of products by Ensuring correct and favorable labeling Showing whole produc0on process Offer guided tours through produc0on factories Videos educa0ng about produc0on process on website

    Cooperate with media and be open for dialogue Join public debates in talk shows Install communica0on plalorm

    Joining interna0onal food ini0a0ves

  • Regain customers trust in the brand

    Invest in quality & safety management

    Adapt short term produc0on to current demand

    AXer crisis management: How to avoid long term damage

    Team Duesseldorf 20

  • AXer crisis management: 2. Invest in quality & safety management

    Team Duesseldorf 21

    Achieve process excellence by Internal benchmarking: Knowledge exchange with other countries Secure clean and safe working environment R&D for safe packaging materials Develop responsible tes0ng procedures by Regular tes0ng by external laboratories Stricter in-house quality control focusing on

    Produc0on processes Quality of suppliers

  • Regain customers trust in the brand

    Invest in quality & safety management

    Adapt short term produc0on to current demand

    AXer crisis management: How to avoid long term damage

    Team Duesseldorf 22

  • AXer crisis management: 3. Adapt short term produc0on to current demand

    Team Duesseldorf 23

    Temporarily lower produc0on capaci0es to 60% for relaunch Adjust number of FTEs by temporarily reducing working hours (flexible working solu0ons, e.g. shorter hours at lower wages) Incrementally increase produc0on capaci0es as communica0on and marke0ng measures are rolled out

  • Timeplan

    Team Duesseldorf 24

    TimeMeasures

    Develop labels

    Conduct price study

    Launch marketing campaign

    Set up website

    Install social media committee

    R&D for packaging and safety

    October November December

    Reentry of market

    100,000 USD

    200,000 USD

    5,000,000 USD

    500,000 USD

    500,000 USD

    750,000 USD

    7,050,000 USD

  • Market strategy: How to regain market share

    Preven0on management: Learn your lessons

    AXer crisis management: How to avoid long term damage

    Wrap-up

    Team Duesseldorf 25