• During the Maggi incident, Nestlé highlighted open communication with its retailers and distributors in a variety of methods to ensure an effective response and preserve trust throughout its supply chain. By prioritizing open and transparent communication with its distributors and retailers, Nestlé aimed to manage the crisis effectively and maintain strong connections across its supply chain.

Example: Nestlé kept retailers and distributors updated on the latest developments in the situation via email, newsletters, and conference calls

• Nestlé also used social media to make official announcements, ensuring that accurate information was widely spread. This helped to reduce bad media coverage and disinformation. By strategically using social media, Nestlé could ensure that its official announcements are successfully communicated, broadly disseminated, and engage the audience in meaningful ways.

Example: The company's top executives, including the CEO, used video messages to engage directly with the public, highlighting their dedication to consumer safety.

Case study:

Television commercial (2015): "We Miss You Too" advertisement launched by Nestlé India to handle the problem and recover customers trust. 

• Nestlé India used a complex social media approach to handle the problem to interact with stakeholders. They started to use open communication with its retailers and distributors and released official comments assuring consumers of the actions being taken to solve the problem. 

• Coca-Cola used a similar collaborative technique throughout times of crisis but in different circumstances to rebuild their reputation. Coca-Cola has a long history of working with governments and non-governmental organizations (NGOs) to manage crises successfully. This cooperation is critical for addressing several concerns and providing a coordinated response. For example, with the government organization, Coca-Cola often gets into public-private partnerships to capitalize on both assets and expertise. 

• Both Maggi (a Nestlé brand) and Coca-Cola recognized the need to collaborate with regulatory organizations in handling crisis, but their techniques and situations of crisis are different. Their proactive crisis management strategies demonstrate a recognition that regulatory partnership is crucial for resolving difficulties and protecting brand reputation. 

• Maggi organizations also collaborate with regulatory agencies to maintain accountability and rebuilt public trust following disasters. This involves their routine quality checks by implementing strict quality control methods at all phases of manufacturing. It also involves documentation and transparency. Maggi organizations need to keep extensive records of their testing and compliance procedures to show to regulatory agencies as appropriate.

Example: Maggi usually practices proactive compliance by regularly testing their goods to guarantee they satisfy regulatory criteria.

• Maggi must open communication by creating open channels of communication with regulatory authorities to comprehend their issues and supply essential information. They also can join any investigations by collaborating on investigations to determine the underlying source of any problems. It can help in developing a transparent partnership and understanding regulatory requirements.

Case study:

• 2015: Maggi suffered a significant problem in India when its noodles were banned due to claimed high lead levels. According to Rajain.P and Rathee.R (2019), negative word of mouth through social media platform and other medium is a major threat for the company which can damage its image. This problem required fast and skilled attention.

• Maggi hired professional public relations firms to handle the communication strategy. It helped Maggi in conveying openness and dedication to safety while efficiently dealing with the media and public concerns. 

• Coca-Cola has a long history of collaborating with external experts to expand its market and better understand consumer behavior. It needs to collaborate with top market research firms to gain information about consumer tastes and trends by utilizing digital tools and social media listening.

• Coca-Cola has gained new perspectives into customer tastes as digital media has grown in popularity. 

• The 2015 Maggi noodles crisis in India is a crucial example of the importance of robust Corporate Social Responsibility (CSR) practices, particularly in product safety and regulatory compliance. The incident demonstrates how CSR failures can lead to significant reputational and economic damage, necessitating comprehensive crisis management efforts. 

Example:  In 2015, Nestlé's Maggi brand faced a major crisis when Indian food safety officials found high levels of lead and monosodium glutamate (MSG) in Maggi noodles, contrary to the product's labeling. This led to a nationwide ban, the destruction of 400 million bags of noodles, and severe damage to the brand's market position and customer trust.

• Despite later confirming the product's safety, the initial breach of CSR principles caused lasting harm to Nestlé's reputation and market share in India. 

Case study:

• Nestlé's Maggi faced a significant CSR challenge when banned in India in 2015, leading to a thorough review of its CSR practices. The brand's CSR strategy centers on advertising to children and young adults, adhering to CSR standards, and maintaining consumer respect.

• Nestlé's dominant market share in India, over 80%, enables it to effectively meet consumer demands while ensuring quality standards. However, maintaining consumer loyalty now heavily relies on strict compliance with safety regulations, a key focus area since the ban.

• Coca-Cola's CSR approach in India emphasizes broader economic success and enhancing the quality of life for employees, their families, and local communities. The company's CSR efforts extend beyond legal requirements, involving substantial investments in human capital, environmental sustainability, and stakeholder engagement. 

• This comprehensive approach underscores Coca-Cola's commitment to social responsibility, highlighting its role as a global leader in the beverage industry dedicated to improving societal well-being.