Maggi: A Tangled Mess
In the summer of 2015, one of Nestlé SA (Nestlé)’s top-selling products in the Indian market, its two-minute Maggi noodles, was embroiled in a food and safety issue when lead was discovered during a test. Media pundits called for the arrest of Nestlé officials. Others took to the street to set ablaze the famous yellow-coloured Maggi packets. Nestlé treated the matter largely as a regulatory issue, managing the crisis with scientific data at hand. The narrative was quickly set by the Food Safety and Standards Authority and its various provincial partners, which led to statewide bans and expanded tests of Maggi noodles across India and beyond. Nestlé executives wondered how a simple test had landed the organization and its prized brand in hot water. How can Nestlé take control and win back consumer confidence?
Collection: Ivey Business School (Canada)
Ref: IVEY-9B18C003-E
Format: PDF
Number of pages: 11
Publication Date: Jan 29, 2018
Language: English
Review date: Jan 29, 2018
What material is included in this case:
Description
In the summer of 2015, one of Nestlé SA (Nestlé)’s top-selling products in the Indian market, its two-minute Maggi noodles, was embroiled in a food and safety issue when lead was discovered during a test. Media pundits called for the arrest of Nestlé officials. Others took to the street to set ablaze the famous yellow-coloured Maggi packets. Nestlé treated the matter largely as a regulatory issue, managing the crisis with scientific data at hand. The narrative was quickly set by the Food Safety and Standards Authority and its various provincial partners, which led to statewide bans and expanded tests of Maggi noodles across India and beyond. Nestlé executives wondered how a simple test had landed the organization and its prized brand in hot water. How can Nestlé take control and win back consumer confidence?
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Year: 2015
Geographic Setting: India
Industry Setting: Accommodation & Food Services;
Learning Objective
This case can be used in undergraduate, graduate, and executive education programs on leadership, crisis communications, and crisis management. After working through the case and assignment questions, students will be able to do the following: ·Explain how to manage communications and messaging in the midst of a crisis. ·Describe the pitfalls of a poor crisis-management strategy. ·Explain the importance of dealing with the media. ·Identify the cross-cultural sensitivities and context that affect international business. ·Assess the role of character in crisis leadership.
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