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Maggi Noodles Craig Maas, Hannah Meesala, Kishore Raju, Lingling Xia

Maggi Noodles - · PDF fileKnorr soupy noodles Patanjali Atta(Wheat) Noodles Situation Analysis Recommendation Implementation Summary . Damage Prevention Kaizen process for continuous

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Page 1: Maggi Noodles - · PDF fileKnorr soupy noodles Patanjali Atta(Wheat) Noodles Situation Analysis Recommendation Implementation Summary . Damage Prevention Kaizen process for continuous

Maggi Noodles Craig Maas, Hannah Meesala, Kishore Raju, Lingling Xia

Page 2: Maggi Noodles - · PDF fileKnorr soupy noodles Patanjali Atta(Wheat) Noodles Situation Analysis Recommendation Implementation Summary . Damage Prevention Kaizen process for continuous

Agenda

u  Situation Analysis

u  Recommendation

u  Implementation

u  Summary

u  Q&A

Page 3: Maggi Noodles - · PDF fileKnorr soupy noodles Patanjali Atta(Wheat) Noodles Situation Analysis Recommendation Implementation Summary . Damage Prevention Kaizen process for continuous

Competitive Advantage

u  Pioneers in the Instant Noodles

u  Maggi synonymous to Noodles

u  Staple food for many Indians

Situation Analysis Recommendation Implementation Summary

Page 4: Maggi Noodles - · PDF fileKnorr soupy noodles Patanjali Atta(Wheat) Noodles Situation Analysis Recommendation Implementation Summary . Damage Prevention Kaizen process for continuous

Issues

u  Lead and monosodium glutamate found in Maggi samples

u  Media aggravating the issues

u  Consumer Dissatisfaction

u  Brand Image Destroyed /Trust Broken

u  Emotional Outcry

u  Competitors doubled production

u  Threat of new entrants to fill the void in the market

Situation Analysis Recommendation Implementation Summary

Page 5: Maggi Noodles - · PDF fileKnorr soupy noodles Patanjali Atta(Wheat) Noodles Situation Analysis Recommendation Implementation Summary . Damage Prevention Kaizen process for continuous

Challenges

u  Regain its pre-fiasco market share

u  Communication strategy

u  Growing Competition

u  Ensure no permanent damage

u  Corporate Strategy

u  Focus on Quality or Crisis control

Situation Analysis Recommendation Implementation Summary

Page 6: Maggi Noodles - · PDF fileKnorr soupy noodles Patanjali Atta(Wheat) Noodles Situation Analysis Recommendation Implementation Summary . Damage Prevention Kaizen process for continuous

Timeline

Press  ReleaseAdvertisingProduct  DestructionQuality  Check  Tour  of  Plant

1 2 3 4 5 6 7 8Weeks

Maggi  Noodles

Situation Analysis Recommendation Implementation Summary

Page 7: Maggi Noodles - · PDF fileKnorr soupy noodles Patanjali Atta(Wheat) Noodles Situation Analysis Recommendation Implementation Summary . Damage Prevention Kaizen process for continuous

Win-Back Strategies | 1st week

u  Press Release

u  Product Destruction

u  Quality Check

•  Be truthful about the incident and quality control neglect

•  Reinforce our new leadership management team and the efforts taken by for quality control and transparency of suppliers

Situation Analysis Recommendation Implementation Summary

Page 8: Maggi Noodles - · PDF fileKnorr soupy noodles Patanjali Atta(Wheat) Noodles Situation Analysis Recommendation Implementation Summary . Damage Prevention Kaizen process for continuous

Win-Back Strategies | 2nd week

Advertising

•  Staple food in India •  Emphasis on our new leadership and quality control |

ZERO MSG & lead •  Contract with famous film and music stars for

advertisement campaigns | huge persuasive in India

Situation Analysis Recommendation Implementation Summary

Page 9: Maggi Noodles - · PDF fileKnorr soupy noodles Patanjali Atta(Wheat) Noodles Situation Analysis Recommendation Implementation Summary . Damage Prevention Kaizen process for continuous

Win-back Strategies | 3rd Week

u Advertising

u Quality control

u Press & Media

Situation Analysis Recommendation Implementation Summary

Post interview video with loyal customers | college students, children, people on travel, etc.

Page 10: Maggi Noodles - · PDF fileKnorr soupy noodles Patanjali Atta(Wheat) Noodles Situation Analysis Recommendation Implementation Summary . Damage Prevention Kaizen process for continuous

Win-back Strategies | 4th Week

u  Tour of the plants | Mass media

u  Quality control

u  Advertising

•  Educate public about our new healthy ingredients and quality control process

Situation Analysis Recommendation Implementation Summary

Page 11: Maggi Noodles - · PDF fileKnorr soupy noodles Patanjali Atta(Wheat) Noodles Situation Analysis Recommendation Implementation Summary . Damage Prevention Kaizen process for continuous

Concentrated Market

Competitors

Sunfeast Yippee Noodles

Smith and Jones

Top Ramen

Knorr soupy noodles

Patanjali Atta(Wheat) Noodles

Situation Analysis Recommendation Implementation Summary

Page 12: Maggi Noodles - · PDF fileKnorr soupy noodles Patanjali Atta(Wheat) Noodles Situation Analysis Recommendation Implementation Summary . Damage Prevention Kaizen process for continuous

Damage Prevention

Kaizen process for continuous improvement

Six sigma for quality control

Transparency in raw material sourcing

Situation Analysis Recommendation Implementation Summary

Page 13: Maggi Noodles - · PDF fileKnorr soupy noodles Patanjali Atta(Wheat) Noodles Situation Analysis Recommendation Implementation Summary . Damage Prevention Kaizen process for continuous

Communication

What Happened

1. Delay in communication

and recall

2. Distrust by the public

3. Recall of all Maggi Noodles

varieties

What Should Have Happened

1. Instant contact with

consumers and recall

2. Ensure all that quality is of the

utmost importance

3. Recall of Maggi Noodles

but quicker introduction

back into market

Situation Analysis Recommendation Implementation Summary

Page 14: Maggi Noodles - · PDF fileKnorr soupy noodles Patanjali Atta(Wheat) Noodles Situation Analysis Recommendation Implementation Summary . Damage Prevention Kaizen process for continuous

Quality Control vs. Crisis Control Alternative

Crisis Control

Short term solution

Does not allow for continued

growth

Exacerbates company

image

Quality Control

Long term solution

Continued growth over

time

Enhances company

image

Situation Analysis Recommendation Implementation Summary

Page 15: Maggi Noodles - · PDF fileKnorr soupy noodles Patanjali Atta(Wheat) Noodles Situation Analysis Recommendation Implementation Summary . Damage Prevention Kaizen process for continuous

Quality Control vs. Crisis Control

Transparent Quality Control

Focus on quality is the crisis control

Long term health of Maggi Noodles

Situation Analysis Recommendation Implementation Summary

Page 16: Maggi Noodles - · PDF fileKnorr soupy noodles Patanjali Atta(Wheat) Noodles Situation Analysis Recommendation Implementation Summary . Damage Prevention Kaizen process for continuous

Timeline

Press  ReleaseAdvertisingProduct  DestructionQuality  Check  Tour  of  Plant

1 2 3 4 5 6 7 8Weeks

Maggi  Noodles

Situation Analysis Recommendation Implementation Summary

Page 17: Maggi Noodles - · PDF fileKnorr soupy noodles Patanjali Atta(Wheat) Noodles Situation Analysis Recommendation Implementation Summary . Damage Prevention Kaizen process for continuous

Summary

Quick response to calm public

Focus on quality for now and the future to offset any trepidation

Advertising and information to the public

Continuous growth of Maggi Noodles brand

Situation Analysis Recommendation Implementation Summary

Page 18: Maggi Noodles - · PDF fileKnorr soupy noodles Patanjali Atta(Wheat) Noodles Situation Analysis Recommendation Implementation Summary . Damage Prevention Kaizen process for continuous

Timeline

Press  ReleaseAdvertisingProduct  DestructionQuality  Check  Tour  of  Plant

1 2 3 4 5 6 7 8Weeks

Maggi  Noodles

Page 19: Maggi Noodles - · PDF fileKnorr soupy noodles Patanjali Atta(Wheat) Noodles Situation Analysis Recommendation Implementation Summary . Damage Prevention Kaizen process for continuous

Assumptions

u  Growth rate =7.5% per annum

u  NIL has already gone through quality checks with suppliers

Page 20: Maggi Noodles - · PDF fileKnorr soupy noodles Patanjali Atta(Wheat) Noodles Situation Analysis Recommendation Implementation Summary . Damage Prevention Kaizen process for continuous

Financial forecast (quarterly) in Rupees

0

5

10

15

20

25

30

1 2 3 4 5 6 7 8 9