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Protea PR & Crisis Advisors University of Cape Town BRAD SARAH JOY MARCIA – MAGGI NOODLES

IntroducBon BRAD – MAGGI NOODLES

Protea PR & Crisis Advisors

Your Current Situa-on and Our Mandate Protea PR & Crisis Advisors

June 2015

Aug 2015

Oct 2015

Nov 2015

MSG Found in Gorakhpur Lead content exceeds limits Recall in U<ar Pradesh State bans FSSA range recall

New CEO Nostalgia Media Campaign

Court led lab test approved

Relaunch

Today

EscalaEon

How do we return Maggie to same Market Share and same Margins?

Take Control: Quick, admission, align values and concerns. Recall. Provide Eme lines.

24% of NIL Business $88 million quarterly loss Net Margin decline to -‐3.3%

Key Issues Protea PR & Crisis Advisors

Reputa-onal Damage: Trust regarding health and safety

Consequen-al Financial Strain

Compe-tors Rising

1

2

3

Recommenda-ons: Three Pronged Communica-ons Strategy


1. B2C: Customer

2. B2B: Retailers 3. Press


Required Responses

How should Maggi noodles proceed to regain its pre-‐fiasco market share?

What should be NIL’s communicaEon strategy to win its customers back?

How should NIL address the challenges posed by compeEtors who have gained ground over the last few months?

How to ensure that no permanent damage is caused by the controversy?

What should have been it’s corporate communicaEon strategy aYer the crisis broke out?

Quality control or crisis control? What makes more sense at this hour?

1

2

3

4

5

6

Current State Analysis SARAH – MAGGI NOODLES


Situa-onal Analysis on Maggi Brand Protea PR & Crisis Advisors

STRENGTHS WEAKNESSES

Brand

Convenience Kids love it Staple food

Brand por[olio

Reputa-onal damage Financial performance Product loss write-‐offs

Ini-al response Damaged retailer rela-onships

OPPORTUNITIES THREATS

Rebuild trust New CEO, local

Compe-tor ramp up

Customers switching brands

Financial Impact on Maggi Brand Protea PR & Crisis Advisors

Before (2014)

90% market share

24% of top line ($89m)

AYer (2015)

?? on market share (Yippee & Patanjali)

1st quarter loss in 17 years

Top line fell 20% Profits loss of ($9.8m)

The Maggi Customer Protea PR & Crisis Advisors

•  Purchasing for kids •  Care about food safety and trusted brand

•  Not actually the consumer, purchasing decision-‐maker

The Maggi Mom

•  Convenience, on-‐shelf, accessible •  Purchasing and consuming Bachelors &

Students

RecommendaBons BRAD – MAGGI NOODLES




1. B2C: Customer

• Admission and Apologe-c

• Align values • Tangible health “badging”

•  In-‐store support and couponing.

2. B2B: Retailers

•  Leverage power of Nestle brand

• Nego-ate POS and Gondola Ends

3. Press

• Control the message

• Detailed and forthright about opera-onal quality control measures taken

ImplementaBon MARCIA – MAGGI NOODLES


Implementa-on Overview Protea PR & Crisis Advisors

0 to 1 Week 1 Week to 2 Months

2 Months to Six Months

1. Press Release

2. Consumer led brand campaign

-‐ TV tag on

-‐ Instore Ac-va-on

-‐ Sampling

-‐ Pack Revisions

-‐ Product Bundling

3. Retailer Brand Campaign

-‐ POS

-‐ TV Promo

-‐ Cross Category Bundling

Consumer Brand Campaign Protea PR & Crisis Advisors

Consumer Brand

Campaign

TV

Instore Top 500 Stores

Indian FDA

Approval

Pack Revision

Product Bundling

We value your family’s health as much as you do

Sampling Promotor ladies

Maggie category leaders

Retailer Campaign Protea PR & Crisis Advisors

Retailer Campaign

POS

TV Promos

Product Bunding

Cross-‐Merchandising

Gondola Ends

DirecAng consumers instore and 10% price discounts

Kids aFernoon snacks

Financial ConsideraBons JOY – MAGGI NOODLES


US$ 0-‐1 week 1wk-‐2months 2-‐6months

Press Release X Customer messaging Brand campaign 2 000 000 TV -‐ tag on 750 000 In store ac-va-on 1 350 000 Sampling 1 500 000 Supplier QC 1 200 000 Product bundling 650 000 Pack revision 100 000 B2B retailer POS in store 500 000 TV promo 1 500 000

Total cost US$ 9.5 million

Implementa-on Budget

250

270

290

310

330

350

370

390

410 Mar-‐15

Apr-‐15

May-‐15

Jun-‐15

Jul-‐1

5

Aug-‐15

Sep-‐15

Oct-‐15

Nov-‐15

Dec-‐15

Jan-‐16

Feb-‐16

Mar-‐16

Apr-‐16

May-‐16

Jun-‐16

Jul-‐1

6

Aug-‐16

Sep-‐16

Oct-‐16

Nov-‐16

Dec-‐16

US$ m

illions

Forecasted Revenue Recovery

Conclusion BRAD – MAGGI NOODLES


Key Issues Protea PR & Crisis Advisors

Reputa-onal Damage: Trust regarding health and safety

Consequen-al Financial Strain

Compe-tors Rising

1

2

3



1. B2C: Customer

• Admission and Apologe-c

• Align values • Tangible health “badging”

•  In-‐store support and couponing.

2. B2B: Retailers

•  Leverage power of Nestle brand

• Nego-ate POS and Gondola Ends

3. Press

• Control the message

• Detailed and forthright about opera-onal quality control measures taken


Required Responses

How should Maggi noodles proceed to regain its pre-‐fiasco market share?

What should be NIL’s communicaEon strategy to win its customers back?

How should NIL address the challenges posed by compeEtors who have gained ground over the last few months?

How to ensure that no permanent damage is caused by the controversy?

What should have been it’s corporate communicaEon strategy aYer the crisis broke out?

Quality control or crisis control? What makes more sense at this hour?

1

2

3

4

5

6

Win back consumer trust and retailer rela-onships

Three -er communica-ons strategy

Brand messaging and purchase and retrial incen-vizing

Take control of press messaging

Discussed in introduc-on.

Both and more. Post crisis re-‐messaging.

Thank you. Q&A. PROTEA PR CONSULTANTS – MAGGI NOODLES


Documents

ProteaPR&CrisisAdvisors - mbacasecomp.com€¦ · How%should%Maggi%noodles%proceed%to%regain%its%preQﬁasco%market’share? ... Situaonal%Analysis%on%Maggi%Brand% ... instore$and$10%$price$