Leadership Workshop

1. Leadership Workshop
Crisis Management
Presentation
 2019PGP078 – ARPIKA AGRAWAL
 2020PGP356 – SADASIBA SAHU
 2020PGPH020 – PRABHU CHANDAN DAS BEBARTTA
 2020PGP170 – INGLE MAKRAND SARANG

2. What is Crisis Management?
Crisis management is the process by which an organization deals with a disruptive and unexpected
event that threatens to harm the organization or its stakeholders.
Features of Crisis Management:
● Crisis Management includes activities and processes which help the managers/employees to
analyze and understand events which might lead to crisis and uncertainty in the organization.
● Crisis Management enables the managers and employees to respond/communicate effectively
and coordinate amongst the departments to overcome emergency situations.
● Prevent spread of panic or rumours around.
● Crisis management team should devise a way to be in regular touch with the employees,
external clients, stakeholders as well as media.
● Enable the organization to adapt well to changes and new situations.

3. Stages of Crisis Management

4. What is the Maggi Crisis?
● In May 2015, India’s Food safety administration (FDA) ordered Nestlé India to recall its popular
2-minute Maggi noodles after lab tests showed that the product contained high levels of lead
and MSG. The regulated lead levels during that time was 2.50ppm and a laboratory in
Gorakhpur found the lead MSG levels in Maggi to be 17.2ppm
● Not only did they breach the regulations, but also explicitly mentioned “NO added MSG” on
the packets, leading to a mislabeling offence.
● Nestlé India lost more than Rs 500 crore (US$77 million) over the ban, which forced it to
destroy more than 37,000 tonnes of Maggi noodles.

5. Timeline of Events
● 21 May 2015 – India’s Food safety administration (FDA) ordered Nestlé India to recall a batch of
Maggi from Uttar Pradesh as tests indicated that the product is “unsafe and hazardous”
● 1 June 2015 – Nestlé India via social media reassures that Maggi is safe for consumption.
● 3 June 2015 – Nestlé launches a FAQ page on its official website
● 4 June 2015 – Nestlé backtracks its stand and recalls all batches of Maggi noodles from India
● 16 June 2015 – Nestlé decides to destroy all the batches of withdrawn noodles
● 3 July 2015 – Testing on Maggi noodles abroad in UK and Canada finds levels of lead are within
food safety levels

6. Consumers’ Reaction
 Maggi had to face a lot of backlash in the market and the customers were furious after the Incident
both on media and social platforms.
 Various protests across the country became centre of attraction in the media.
 Several hashtags like #Maggi, #Maggiban, #Maggiinasoup, #MaggiKeSideEffects trended on
social platforms for weeks.

7. Effects In Indian Market
● The net sales of Nestle declined by about 17%(as of Dec 2015).
● Net profit for the year fell to Rs 563 crore, from Rs 1,185 crore in the previous year.
● The size of the instant noodles category too shrunk by nearly half, to Rs 2,000 core for the
full year ended January 2016, from Rs 3,400 crore in the preceding 12 months.
● The market share of Maggi in the Indian instant noodles market also declined to 42% in
that month, down from a dominant 77% in January 2015.
● 7200 employees were working under Nestle India. The employees were reassigned to other
job roles during the ban.

8. Crisis Management By Maggi
● Nestle kept on staying up with the latest on the
examination concerning the wellbeing of Maggi
noodles in India.
● It expressed on the official Maggi Noodles Facebook page,
Twitter and website, that broad testing uncovered no
overabundance lead in Maggi Noodles.
● Nestle utilized its Twitter and Facebook records to answer
clients inquiries regarding the degrees of MSG and lead
found in their noodles.
● Nestle dispatched a FAQ page on its official website.

9. Crisis Management By Maggi
Nestle recalled its all Maggi noodles from India.
 After consoling clients that its noodles are protected, the brand did a U-turn and chose to review
Maggi noodles from the racks.
 Nestle chose to obliterate in excess of 300 crores worth of Maggi Noodles in India after they were
considered perilous by controllers. They gave the agreement to Ambuja concretes and paid 20
crores for it.

10. Crisis Management By Maggi
 Through savvy utilization of web-based media during the emergency, the brand restricted
further harm by consoling and educating clients to urge them to proceed purchasing the
noodles in the future.
 To guard itself in the global market, Nestle got its items tried and confirmed in different
research centers and organizations all around the globe and got the results distributed
openly distributed to demonstrate its norm of value in general.

11. Relaunch
Utilizing the nostalgia factor
Maggi was consistently made family-based commercials to draw in its clients. The greater part of the
advertisements were around moms pleasing their youngsters with the most loved two-minute
noodles.
Making it selective
Like with all the other things, buyers flourish with the sensation of possessing a item or administration
'solely'. Maggi played its cards intelligently when it chosen to consider by making an arrangement with
Snapdeal, which turned into the solitary stage where Maggi bundles were sold before its authority
rebound into the racks, all things considered.

12. Relaunch
The ideal mechanism for the launch
Alongside expanded spending on TV promotion space, Maggi was persistent in its advancements of
the forthcoming relaunch via online media. Utilizing the full power of its high held presence on a
stage like Facebook, which has in excess of 275,000 likes on it and a 95,700 after on Twitter.
Staying in contact through expanded promotion space
After the disaster of the Maggi boycott, its parent organization Nestle chose to increment its
spending on TV ads, prompting a development of its advertisement volume to about 96% by
September, 2015 .The primary print notice that went with the declaration of the relaunch peruse —
"Your Maggi is protected, has consistently been.”

13. What Went Wrong?
● An appearance of arrogance:
Nestlé argued that its own test results of Maggi noodles were correct, which prompted confrontation with
regulators who found different results. Nestlé could have pursued a more engaging, transparent process
● Slow response:
While Indian officials first ordered the product recall on April 30, 2015, the company did not address the media in
Delhi or appoint a lobbying firm to represent it in India until the following June.
● Neglected public opinion:
Maggi focused on the technical and regulatory aspects of the crisis while neglecting communications and
public opinion. In its main defense, it stated that’s its tests of over 3,500 samples showed that lead levels were well
below regulatory limits
● Lack of consumer engagement:
The Nestlé team was slow to respond to consumers on social media. Many Indians perceived its silence as
admission of guilt. The Nestlé India Twitter handle had one tweet on May 21 on the issue.

14. Conclusion
Nestle India consistently kept up great relations with the clients, providers, wholesalers
and retailers and this has helped organization re-acquiring its lost offer in the Indian
market.
Maggi could prevail with regards to maintaining and recovering its lost picture after the
thorough battle time of five months on its moral issues of hyper utilization of MSG and
lead in their item.
Despite confronting an immense misfortune, Maggi India dealt with the time of
emergency appropriately by consistently associating with their buyers through online
media.
The role played by the Maggi higher authorities made it conceivable to get the
endorsement of its re-deal in India.
The company engaged actively in social media and built a strong digital presence to
strengthen the Maggi brand.They managed to relaunch it and bring back sale levels.
Today no one thinks about lead or MSG in maggi while eating.