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
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Recommenda-ons: Three Pronged Communica-ons Strategy
Protea PR & Crisis Advisors
1. B2C: Customer
2. B2B: Retailers 3. Press
Protea PR & Crisis Advisors
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?
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Current State Analysis SARAH – MAGGI NOODLES
Protea PR & Crisis Advisors
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 ($9.8m)
The Maggi Customer Protea PR & Crisis Advisors
• Purchasing for kids • Care about food safety and trusted brand
• Not actually the consumer, purchasing decision-‐maker
The Maggi Mom
• Convenience, on-‐shelf, accessible • Purchasing and consuming Bachelors &
Students
RecommendaBons BRAD – MAGGI NOODLES
Protea PR & Crisis Advisors
Recommenda-ons: Three Pronged Communica-ons Strategy
Protea PR & Crisis Advisors
1. B2C: Customer
• Admission and Apologe-c
• Align values • Tangible health “badging”
• In-‐store support and couponing.
2. B2B: Retailers
• Leverage power of Nestle brand
• Nego-ate POS and Gondola Ends
3. Press
• Control the message
• Detailed and forthright about opera-onal quality control measures taken
ImplementaBon MARCIA – MAGGI NOODLES
Protea PR & Crisis Advisors
Implementa-on Overview Protea PR & Crisis Advisors
0 to 1 Week 1 Week to 2 Months
2 Months to Six Months
1. Press Release
2. Consumer led brand campaign
-‐ TV tag on
-‐ Instore Ac-va-on
-‐ Sampling
-‐ Pack Revisions
-‐ Product Bundling
3. Retailer Brand Campaign
-‐ POS
-‐ TV Promo
-‐ Cross Category Bundling
Consumer Brand Campaign Protea PR & Crisis Advisors
Consumer Brand
Campaign
TV
Instore Top 500 Stores
Indian FDA
Approval
Pack Revision
Product Bundling
We value your family’s health as much as you do
Sampling Promotor ladies
Maggie category leaders
Retailer Campaign Protea PR & Crisis Advisors
Retailer Campaign
POS
TV Promos
Product Bunding
Cross-‐Merchandising
Gondola Ends
DirecAng consumers instore and 10% price discounts
Kids aFernoon snacks
Financial ConsideraBons JOY – MAGGI NOODLES
Protea PR & Crisis Advisors
US$ 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
Protea PR & Crisis Advisors
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
Protea PR & Crisis Advisors
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
Protea PR & Crisis Advisors
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
Protea PR & Crisis Advisors