SAINTGITS INSTITUTE OF MANAGEMENT
BUSINESS COMMUNICATION
PROJECT ON CONTROVERSIES OF MAGGI
Submitted To
Asst. Prof. Shino Abraham
Submitted By:
Aswathy Augestin
Bessy Ann Chandy
Joel Philipose Thomas
Mariya GeorgeVishnu P
MAGGI
1.INTRODUCTION
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SAINTGITS INSTITUTE OF MANAGEMENT
BUSINESS COMMUNICATION
PROJECT ON CONTROVERSIES OF MAGGI
Submitted To
Asst. Prof. Shino Abraham
Submitted By:
Aswathy Augestin
Bessy Ann Chandy
Joel Philipose Thomas
Mariya GeorgeVishnu P
MAGGI
1.INTRODUCTION
Maggi is an international brand of seasonings, instant soups, and noodles that originated in Switzerland in late 19th century. The Maggi company was acquired by Nestlé in 1947. The company originated in Switzerland in 1884, when Julius Maggi took over his father's mill. He quickly became a pioneer of industrial food production, aiming to improve the nutritional intake of worker families. Maggi was the first to bring protein-rich legume meals to the market, and followed up with a ready-made soup based on legume meals in 1886. After that Julius Maggi introduced bouillon concentrates, first in capsules, then in cubes. In 1897, Julius Maggi founded the company Maggi GmbH in Singen, Germany.
In 1947, following several changes in ownership and corporate structure, Maggi's holding company merged with the Nestlé company to form Nestlé- Alimentana S.A., currently known in its francophone home base as Nestlé S.A. Maggi instant noodles are popular in India, Pakistan, Singapore, Malaysia, Australia and New Zealand. Nestle has 39% market share in Malaysia, where "Maggi" is synonymous with instant noodles, and had 90% market share in India prior to a nationwide ban by the Food Safety and Standards Authority of India. Following the ban, the market share was reduced to 53% in India. In Malaysia, fried noodles made from Maggi noodles are called Maggi goreng. Maggi Instant noodles are branded as "Maggi 2 Minute Noodles" in AustraLIA
and New Zealand.
In June 2015, tests in India found high amounts of lead in Maggi noodles. The Food Safety and Standards Authority of India ordered a national recall for all 9 variants of Maggi Instant Noodles and Oats Masala Noodles.I^ Inddia, Maggi noodles carry a green dot, meaning they are specifically formulated to serve vegetarians. This special formulation is not available in other countries, unless imported from India.
2.3.Communication flow from top management to lower management
3.Maggi Noodles : Crisis Management
Maggi seems to be just that perfect quick-snack between meals and is so easy to
make that kids sometime make it alone. At the end of May 2015, India’s Food
safety administration (FDA) ordered Nestle India to recall its popular Maggi
noodles after tests showed that the product contained high levels of lead and
MSG. Hence, the 2-minutes ready Maggi Noodles ban in India was declared.
3.1 Nestle Maggi Noodles Ban In India
The company used various social media channels to take care of its image while the media was putting questions on its image.
- Initially, the company rejected the accusation that the noodles were unsafe and said on their website and social media accounts that there had been no order to recall any products. A statement on their website said “The quality and safety of our products are the top priorities for our Company. We have in place strict food safety and quality controls at out Maggi factories… We do not add MSG to Maggi Noodles, and glutamate, if present, may come from naturally occurring sources. We are surprised with the content supposedly found in the sample as we monitor the lead content regularly as a part of the regulatory requirements.” This statement was made to revoke the Maggi Noodles ban.
- Nestle continued to keep its customers up to date on the investigation into the safety of Maggi noodles in India. Nestle stated on the official Maggi Noodles Facebook page, Twitter and website, that extensive testing revealed no excess lead in Maggi Noodles.
- Nestle used its Twitter and Facebook accounts to answer customers questions about the levels of MSG and lead found in their noodles. The company continued to re-assure customers that the noodles are safe and that they are a transparent company working closely with authorities in India to resolve the issue.
- When Maggi was deemed unsafe in India, all eyes were on Nestle to see how they would respond and manage the situation. Nestle defended its product on all social media channels and rejected all claims that its noodles were unsafe. They used the best use of social media to connect the masses. Initially, the websites which were used for promotion of the product was now being used for maintaining its image.
- (^) Maggi India Twitter account makes an impressive effort to respond to every tweet from customers on this issue with a pre-prepared statement explaining that lead occurs naturally in soil and water. Nestle also explained the science behind the reason for the ban in simple terms so customers could understand
- The scare was a huge blow to the company, which has been selling its Maggi products for over three decades in India with 80% of the country’s instant noodle market. However, through smart use of social media during the crisis, the brand limited further damage by reassuring and informing customers to encourage them to continue buying the noodles future
Nestle India is preparing a blueprint for a possible re-launch of the Maggi instant noodles brand.
Industry experts and analysts feel the issue of the recall and ban of Maggi noodles in India is likely to be resolved in the next three to six months.
4.Crisis Management Lessons from the Nestlé
Maggi Noodle Controversy
Nestlé Maggi hopes to again become the top-selling noodle in India after a long and costly controversy over alleged lead contamination of its popular instant noodles. Indian regulators banned the noodles last June after its tests found excess lead in noodles and only recently reversed the ban. Maggi noodles remained off the shelves for five months and the brand’s reputation suffered substantial damage while the crisis brewed. The company may not fully recover for years.
4.1.The controversy provides several PR crisis management
lessons
Maggi focused on the technical and regulatory aspects of the crisis while neglecting communications and public opinion. In its main defense, it stated that’s its tests of over 3,500 samples showed that lead levels were well below regulatory limits. “This is a case where you can be so right and yet so wrong,” said Nestlé CEO Paul Bulcke, according to Fortune. “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.” To be fair, the company faced substantial challenges: fearful consumers, an aggressive media, tough regulators, and the difficult business climate of India. However, PR crisis management experts and other commentators cite a number of mistakes that can serve as lessons to other organizations.
Slow response. Indian officials first ordered the product recall on April 30, yet the company did not address the media in Delhi or appoint a lobbying firm to represent it in India until June. Media monitoring measurement could have
more important, as the facts themselves. That’s a lesson Nestlé executives in India learned the hard way.