Thursday, November 12, 2015

Maggi Come back

5 things to learn from Maggi Comeback




Nestle’s Maggi “2 minute noodles” has a fan following which can give a movie star in India run for its money. It has been ruling the taste buds of India for nearly 32 years and its recent comeback attempt whether successful or not is bound to become case studies in B schools across the world.

The past events (read: allegations for excess quantity of chemicals like mono sodium glutamate or MSG etc and subsequent sample testing of Maggi Noodles in various labs across India ) leading to large scale recall and blemishing of one of the iconic brands in Indian FMCG market. It also had a domino effect on other noodle brands as well.
Lets look at 5 things which corporate can learn from Nestle’s Welcome back campaign for Maggi
1)    Transparency - Many strategists had criticized the slow response by Nestle team to Maggi controversy.  But Nestle did the right thing by supporting the government in its inquiry and resorting to legal course of action to challenge the ban of product. As a part of Welcome back campaign , Nestle is sharing the results of the tests conducted by various labs as directed by Honorable Bombay High Court. It will be able to garner public support and build a positive reputation among consumers showcasing that “Meri Maggi” is safe. Honesty and transparency is trait respected by consumers irrespective of the product.

2)    Brand loyalty pays even in tough times- Building a strong brand loyalty is every marketer’s dream. Strong brand loyalty also translates into strong emotional attachment and ultimately defines the brand equity. Nestle has cemented its position by targeting this very aspect of Maggi. Nestle picked up the threads from its marketing campaigns couple of years back where consumers were encouraged to share their own recipes by using Maggi noodles/products as one of the ingredients. This leveraging upon past brand equity can amplify the effectiveness of come back campaigns.

3)    Purpose brand can impact the umbrella brand too– Nestle sells lots of products under its umbrella brand “Maggi” like noodles , ketchup, pasta , taste maker, etc.  The noodle controversy may impact the sales of other products too under the brand name Maggi. Even negative publicity, viral jokes , discussion on online forum highlighted Umbrella brand Maggi rather than purpose brand noodles. Nestle crisis management team will have to work extra hard to clean up the externalities generated by purpose brand on the umbrella brand.

4)    Right medium to target consumer- Welcome back campaign released by Nestle is going viral on social media. Nestle’s target consumer include kids, mothers, teenagers , students, bachelors, young working professionals living away from home. This segment is also highly inclined towards social media, so the use of Face book (Maggi has nearly 2.8 Million likes on its face book page), twitter and other social media platform may help in getting the message across the right audience. It can also provide agility to the campaign.

5)    Use of disruptive & innovative approach- Nestle being a powerhouse in FMCG sector with robust supply chain, could have tried to go solo with welcome back campaign. However, it  leveraged upon the reach and popularity of online market place “Snapdeal” to sell Maggi 2 minute noodles in specially designed pack of 12, loaded with small gift items like Calendar for year 2016, refrigerator magnet sticker using already popular flash sale model for online sales. As per the news reports , approximately 60,000 packs of special welcome back box were sold out in 5 minutes!! Flash sales model provide much needed consumer data at much faster rate as compared to traditional gathering of sales figures from POS data.  The data from flash sale can act as sample for pilot projects as the buying behaviour of consumer and depth of penetration of internet act as barriers. None the less, this approach can provide inputs to make necessary positive tweaks. Further more ,Nestle is also using omni-channel approach to make maximum impact for the campaign. It won’t be a surprise if Nestle comes up with a contest as a part of its image rebuilding exercise to offer free guided tours to few selected consumers of Maggi 2 minute noodles to its manufacturing facilities and use their testimonials as part of already ongoing viral social media posts.



Whether “Welcome Back “ campaign will be able to successfully restore the lost glory of Maggi and “2 minute noodles” and ring in the cash registers for Nestle , only time will tell but it will be a great learning lesson for brand strategist and social media marketing enthusiasts.


Disclaimer: - This article represents views of author based on his own experience and data available in public domain. Nestle , 2 minute noodles , Maggi, Snapdeal, Facebook etc. are brand names of their respective owners.
View Nikhil Pachauri CSCP's profile on LinkedIn