Maggi swiftly issued public statements acknowledging the concerns raised and expressing its commitment to consumer safety
The brand took responsibility for the situation and assured consumers that they were taking the matter seriously.
Maggi’s prompt response also allowed the brand to take control of the narrative to some extent.
prevent misinformation from spreading and mitigate further damage to its reputation
Case Study
Nestlé response: The initial response from the global FMCG 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 that “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.”
Similarly, Coca-Cola's approach to the problem was characterized by rapid acknowledgement and transparency. Following the disclosure of elevated pesticide levels in Coca-Cola products, the company's leadership, including President Gupta, attended a press conference to address the problem directly. While refusing to accept guilt, Coca-Cola reassured the public of its commitment to providing high-quality goods and public safety. Additionally, Coca-Cola India made proactive initiatives to boost openness by making quality control test results available to customers on its website monthly, which were validated by international and federal laboratories (Harris et al, 2011).
The crisis management tactics used by Maggi Noodle and Coca-Cola throughout their separate crises emphasize the need of immediate reaction and crisis recognition. While both corporations addressed the issues mentioned, Coca-Cola's emphasis on openness upped the bar for crisis management. These stories provide useful lessons for firms facing similar issues, highlighting the need of openness, responsibility, and proactive communication in retaining customer trust and minimizing reputation harm during crisis.
Maggi utilized multiple communication channels
The brand set up dedicated helplines and email addresses to receive queries and feedback from consumers.
Through these channels, Maggi provided regular updates on the steps being taken to address the crisis, assuring consumers of their commitment to resolving the issue.
Maggi prioritized open communication with its distributors and retailers. The brand ensured that they were well-informed about the situation and provided them with guidance on how to handle consumer queries and concerns.
actively engaged with the media, providing regular press releases and participating in interviews to keep the public informed about the progress made in addressing the crisis
helped to shape the narrative surrounding the brand and countered negative publicity
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Television Commercials-There was huge campaigning done through the medium of television and Maggi spent a lot of money on it to gain back customer ‘s trust (Ray, 2016).
-Source: afaqs! News bureau (2015) Fig. 4 Commercials showing Maggi is safe
3rd June 2015 – Nestlé launches a FAQ page on the official Nestlé website Nestlé continues to engage in an active dialogue with customers on social media channels Facebook and Twitter. As well as this the company created a FAQ page on the official Nestlé website to answer all questions.
Coca-Cola has used a similar collaborative strategy during times of crises, but in different situations. To solve numerous social concerns, the corporation has partnered with regulatory bodies, government agencies, and non-governmental organizations (NGOs). Coca-Cola, for example, has collaborated with governments and non-governmental organizations to prevent the spread of HIV/AIDS, and it has founded the Coca-Cola Foundation to focus on higher education and community development. Furthermore, Coca-Cola's projects in sustainability, job development, and waste management demonstrate the company's dedication to social well-being.
Maggi's crisis management strategy stresses openness and regulatory compliance, whereas Coca-Cola's approach focuses on its larger social responsibility activities.
Maggi and Coca-Cola's crisis management procedures demonstrate the need of working with regulatory agencies to solve difficulties successfully. Both organizations have been able to endure crises and emerge stronger because they prioritize openness, compliance, and stakeholder involvement. Businesses may use these examples to establish strong crisis management frameworks that promote customer safety, regulatory compliance, and social well-being.
cooperated fully with investigations, providing necessary information, test results, and documentation to the regulatory authorities
This collaboration helped demonstrate Maggi’s commitment to addressing the issues raised and working in alignment with the regulatory framework.
Maggi showcased its willingness to comply with regulations and prioritize consumer safety.
This collaborative approach fostered a sense of shared responsibility between Maggi and the regulatory bodies, leading to a more constructive and effective resolution of the crisis.
worked closely with the authorities to establish revised quality control protocols and testing procedures to ensure the safety and compliance of its products.
This collaboration not only helped in resolving the immediate crisis but also set the foundation for a more robust and transparent system moving forward.
Case Study
2nd June 2015 – Nestlé interacts with customers on social media thanking them for their support Nestlé uses Twitter and Facebook to answer customers questions about the levels of MSG and lead found in their noodles. The company continues 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. As well as Nestlé explains the science behind the tests, what lead, and MSG are and gives an informative breakdown of the ingredients in their product. @MaggiIndia 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.
Coca-Cola India had its own dilemma, which evolved from the view of soft drinks as a luxury that was out of reach for rural populations. Coca-Cola India launched a "think local, act local" strategy after recognizing the potential for development in rural regions. This included adapting marketing strategies to appeal to rural consumers and resolving economic problems by introducing smaller, less expensive bottles. Coca-Cola effectively infiltrated rural regions by portraying itself as a trustworthy and accessible brand, competing with traditional beverage options like as tea and lassi (Harris et al, 2011).
While Maggi and Coca-Cola experienced specific crises, their public relations and brand recovery strategies highlighted the significance of openness, customer participation, and market flexibility. Through strategic communication and focused marketing, both companies successfully survived crises, strengthening their market positions and regaining customer confidence.