Maggi ban this year is the biggest talking point in Indian Business Classes… The brand name “MAGGI” is worth approx. 2000 Cr. Total instant food business in India is 3500 Cr. Nestle spends around 400 Cr. on advertisement in which 150 Cr is allocated to Maggi brand. This shows how financially strong the business was and also how strong the brand is!!!
Which are the other brands which are banned before?
Coke is world’s number one brand in most of the brand audits worldwide. This brand also had an issue in India and also abroad, that it had pesticides in its beverages – which spread like wild fire and sales of Coke Cola India’s Sale dropped 30 % – 40 % over night. Coke took almost 2 years to recover from this damage.
Other brands which were banned recently are Xiaomi, One Plus One, Starbucks, Kellogs so on…I know each brand has its own essence and type of customer feelings towards brand, so recovery strategies and time differ brand to brand. I am strong believer that “Brands Never Die”
Maggi as a Brand
Here we will try and understand how Maggi is different from the other brands. Maggi major Target market is Kids section, where consumers are kids and customers are parents in most of the cases. This fact makes Maggi as a brand more complicated, hence difficult to restore the image.
The fall of Maggi was faster than 2 min for the reason influencers for the purchase are kids and parents where the actual buyers. Any parent is very protective about their kids.
China is number one consumer of fast foods in the world but India as a market has more potential for the instant food business so the growth of the brand was very fast in the past 2 years of time. Other than this as we know brand stood for Healthy, Hygiene, Instant, Modern so on..
Maggi What next?
Nestle as a company would have planned many things like
Employee Salary Deduction
Fighting the case against Government
Having strict Quality check policies
Ground level activation (BTL)
More than all these there are few marketing touch points which needs to be looked at very carefully so that brand recovers fast
Don’t leave customer engagement till your back.
Maggi last post in its official face book page was on 5th June. This might be for the only reason that, anything they do now will back fire as customers are angry on them. But the fact is if your customers don’t hear what you’re doing for long time then there are many brands which are waiting to take your place in the mind of customers.
Keep talking to your customer base, whatever it happens!!
We know they can’t talk now conventionally with TVC and Radio, but they should keep customers informed what’s cooking inside. If they fail to do they are inviting competitor (may be in the same industry or different).
Maggi website has some interesting question and answers but they are not interactive. If Maggi does not want negative PR by interacting with customers online they can do one to one interaction if some one sends mail. and Positive responses can be posted in the websites!!!
After Maggi is back to market grow slowly, don’t be aggressive.
Most of the brands which come back don’t recover soon as they become desperate for sales. But the fact of the matter is convincing customers to believe in brand again will take time. The more aggressive you become in marketing the more you’ll be back fired.
The best way to do it by educating the customers what corrective measures have begen taken although you were healthy food (you may not be in the past). And engaging the brand in lot of community and health based programs will pull the customers back to loyalty.
In future instead of investing in brand ambassadors it’s better to invest in social causes which will have good PR coverage.
You make your investors and employees believe that the brand will bounce back then it will happen. Gaining internal trust before external marketing is most important.