Maggi : A Lesson in Corporate Non-Communication
Nestle never got its own word in

NEW DELHI: It may take years to build a brand but it may take just two minutes to tarnish a brand. This is exactly what happened in the case of Maggi. The brand that commanded an over 80 per cent of the market share in the instant noodles category, beat a hasty retreat in the wake of reports that the product contained an excess of lead and other non permitted chemical components.
What can be more detrimental for a food brand, than being called from the market on charges of being unsafe for human consumption? Yet, that is exactly what happened. Tons of Maggi packs have been recalled and destroyed. Apparently the company decided that it was cheaper to destroy them (burnt as fuel) than to wait for further reports for a possible clean chit. The reaction smacks more of a lack of confidence in the product than sheer Cost Management prudence by the company itself.
What’s more, when diehard Maggi fans were reeling under the shock of the betrayal by their favourite comfort food, Nestle; the Switzerland based multinational company that makes Maggi, chose to observe a stoic silence. The least the company could have done was to issue a blitzkrieg of media insertions stating its position on the issue and a promise that the brand stands for the safety of the consumers above all. But nothing of that sort happened.
In fact while the controversy was at its peak, Maggi’s regular Television commercial (The schoolgirl, ‘Rajkumari’-Mom Ad) was constantly being aired across channels depicting an attitude as if the company was under the impression that the trouble was minor and would blow away at worse. The company appeared to be in denial-mode without, however, stating its position in so many words.
By then the news of Maggi being unsafe had run its full course, thanks to the media and of course the Indian word of mouth grapevine. Sales dropped dramatically, as most of India stopped buying what had almost become a staple diet for children across the country.
The company which spends crores of rupees in advertising, promotions and celebrity endorsements was expected to come up with advertorials and advertisements stating its position, and assuring the consumers that the company was seriously looking into the entire issue to unearth the truth. And that it remained committed to giving the people that they would have no doubt in buying or consuming.
There was clearly need of urgent crisis communication. Ironically the company just let it go without doing anything about it. Compared to this, the pesticide controversy years ago had the Cola giants hyperactive with their communications strategy. So much so that both Coke and Pepsi-arch rivals otherwise had joined hands in issuing communication statements to the public, refuting the charges and re-assuring the consumers. Leading Communication agencies and Image consultants were hired to espouse the cause.
In contrast, Maggi, which enjoyed a huge brand loyalty and brand connect, did nothing to reach out to its average consumer; many of whom were waiting to hear the Company’s version, as it were, but in vain. From a sheer communication and brand perspective, it proved to be a case of what not to do when a company is in urgent need of crisis communication and the need to reach out to its consumers, both from a commercial and a humanitarian perspective.
( Raja Ghoshal is a Communications Consultant)