What were the specialties of a Nestle Company PR Crisis Management, when Maggie Noodles was banned in India from 2015 to 2016?
Until 2014, Nestle controlled 75-80 percent of the noodle market in India. In 2014, the Gorakhpur Laboratory charged Nestle with three major reasons:
1. Noodles having 17ppm of lead instead of the allowed limit of 2.5ppm.
2. Maggie Noodles had "No added MSG (monosodium glutamate1)" printed on their pocket, which the study found to be false information.
3. The new product, Maggi Oats Masala, does not follow any standardization rules.
First, Nestle denied the allegations and appeared in court. In June 2015, the Delhi government banned Magi due to too much lead. After that, it was banned in Tamil Nadu. Then banned across India. Nestle did not expect such a disaster. Its stock market shares fell down. The trust that people had in it for 30 years collapsed. On matrimony sites, many girls used to update the profile that they know how to cook Maggie! Many who had those profiles got shocked. Many people started to protest against the ban. This includes married husbands also! Then Mumbai high court lifted the ban in 2016. In the intervening year, disaster management, done by Nestle, is a lesson in many business schools today.
So what did Nestle do? Nestle brought Suresh Narayanan to India, who was the head of the Nestle for Egypt and Philippines division. He had excellent skills in disaster management. On day two, 35,000 tons of Maggi noodles were removed from all stores and destroyed. They sought the help of public relations firm called APCO Worldwide. This is because Nestle's branding among the masses has become something to start from zero again. They worked as a separate team to clarify the doubts of customers who were deeply confused, to keep an eye on those who put rumors on Twitter and Facebook on social media.
"The only way to put out a social media fire is with social media water!"
- Ramon DeLeon, Marketing Mind at Domino’s Pizza
Maggie's ads on TV were modified. In the advertisements for drinks like Complan, Horlicks, the mother of the child will always be sad and say "my son/daughter has never grown-up" and consult a doctor. The doctor prescribes the brand. Advertisers know better, so they will never use father for any of the advertisements. Mothers are the ones who have the decision-making power in any family on "Which grocery item should enter their kitchen?". So in order to stimulate their feeling, there will be advertising tactics.
They divided their ads into three types:
Before banning: In a family, only the mother knows what is good and which is worse? what do they need? Maggie is part of the family. Maggie is just like how her kids are so important.
When banned: "I miss you so much!" Scenes like Bachelors and children screaming. Maggie is a promising ingredient! Mom and grandma confessing scenes. It is the same scene as Woodwards grape water.
When the ban was lifted: Children, moms, bachelor, hostel students, everything seemed to welcome Maggie back. This is called Mob Mentality. What is visible more is what people want!
Goats do not feel like goats until they leave the flock. During the Prohibition period, Nestl's competitors, especially ITC, Yippy Noodles captured a small market. If you ask me, I would say that Nestl's competitors are not much worth enough. What a precious opportunity! They should have worked out a lot. Who would buy if they name like Yippy? In the one year since the ban was lifted, Nestl has regained 65% of its market share. Maggie is now available all over India. Men are happy, women are double happy.
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