When a speck of dirt can destroy the entire brand: Maggi

May 2015 when the most popular product in Indian kitchens was banned due to high lead levels in their product. Maggi was removed from every shelf in every super market, local grocery store and even from street stalls in India as the Food Ministry confirmed that Maggi is hazardous to health. Maggi being the dominant player in the instant noodle industry where it had 80% control, not only lost the image of the product, but also led to a crisis for the entire brand i.e. Nestle. During this period Nestle India saw 60% of its profits and 32% of its sales fall down.

Through this event, it can be understood how maintaining and following protocols is extremely essential in order to maintain the brand name. In this era where collecting information and spreading it to the world is faster than ever, every brand must understand the importance of maintaining health and safety standards to its products and every stakeholder who is involved. At the same time a mistake Nestle made after the event took place was that they were sluggish in communicating with their stakeholders. Having a constant and a transparent communication is essential for every brand in order to let its stakeholder understand the company’s situation and to avoid any misunderstanding which can damage its business.

Sources:

• “Maggi Noodles Go Back on Sale in India after Recall – BBC News.” BBC News. N.p., n.d. Web. 17 Nov. 2015.