Nestle India Takes Baby Steps Towards Damage Control: What Does it look Like?
NDTV Food | Updated: June 20, 2015 18:30 IST
With Nestle India announcing the recall of its existing produce worth 3.2 billion rupees, there is a lot at stake for the company. A Nestle spokesman said it was the biggest ever withdrawal of a product by the company. In what is supposedly their biggest brand crisis, Nestle India is being held answerable to millions of its loyal customers, food authorities, distributors, workers, stakeholders and others associated with the product.
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There's no denying that the controversy has led to tremendous loss of money as well as resources. It is unimaginable to put to reason the amount of resources gone into the production of the existing lot of Maggi noodles across the nation, the manpower and of course close to 100 years of trust that the company has built with its customers. Maggi was amongst the Top 5 in Brand Equity's 'Most Trusted Brands' 2014 and No.1 Most Trusted Food Brand in India.
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This is indicative of the fact that the controversy may also significantly overshadow the credibility of other products by the same brand. Adding more to the raging fire is the current instance of a customer finding worms in a pack of Nestle Cerelac.Keeping all this in mind, Nestle has an uphill task ahead in regaining the trust of its once-loyal customers. The Nestle Maggi noodles controversy has affected the credibility of the brand to such an extent that the global officials have also noted of the event as a cause of worry. Around 30% of Nestle India's income comes from Maggi Noodles. Maggi Noodles also sits on approximately 70% of the instant noodles market. The ban is bound to leave a dent in the company profits. This has created a stir in the global Nestle office that led to the global CEO finally breaking the silences on the issue.
"The only thing that interests me is to have the product back as soon as possible and that things are cleared up," Nestle chief Paul Bulcke told AFP. "We are doing all we can to make contact with Indian authorities at the earliest," he said, adding: "The product is safe."
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Nestle's Damage Control
Taking a cue from what Nestle's Global CEO wishes for, Nestle India has already started taking steps in what could be the beginning of their retention strategy. For all those who got their copies of a leading newspaper today would have come across a Nestle advertisement which specified that the brand puts their customers' trust on priority. In the advertisement, the company called out to millions of its customers who may still have Maggi noodles packets at their homes and would wish to give them up.
Issued in public interest or more to say in its consumer's interest, the advertisement gives details on where and how the company can be contacted in case any one wishes to return their Maggi noodles packets. The advertisement reads as follows: "Our company representative will get in touch to collect these MAGGI Noodles packs and reimburse you the value of the collected packs."
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