Mpm731 Business Communication: Restoring Confidence Assessment Answers
The assignment requires students to create a communications strategy to deal with a significant organisational issue that will be requiring communications to both internal and external audiences.
Process of Completing the Assignment
Step 1: Context and Situation
Choose the ‘situation’ that you are going to address in this assignment. If possible, select an industry about which you have some inside information and understanding so that you are attuned to the dynamics of the industry and the various stakeholders that will need to be addressed in the Communications Strategy.
Step 2: Stakeholders
Identify the three stakeholder groups that you will address in your communications strategy.
Step 3: The Media for your Messages
Once you have chosen the stakeholders, select three (3) different media to communicate your message. While the content to each of the groups will be similar, the form and tone of the message will be quite different. You will need to select different media for each stakeholder.
Answer:
Introduction
Restoring Confidence in Maggi
Nestle India Ltd. (NIL), is the Indian subsidiary of worldwide FMCG company, Nestle SA. In 1982, the brand Maggi was introduced in India as Maggi 2 Minute Noodles were launched, an instant noodles product. By launching Maggi noodles, NIL established an entirely new food variety (instant noodles) in the packaged food market of India.
In the last days of May 2015, India’s Food safety administration, FDA ordered Nestle India to roll back its well-known 2-minute Maggi noodles (Digitaltrainingacademy.com, 2017) after tests demonstrated that the product contained elevated amounts of lead and MSG (Monosodium Glutamate). (Booshan and Das, 2016) MSG is naturally found in protein rich foods consumed daily. There were two controversies related to testing. They are:
- MSG(Monosodium Glutamate): There was some MSG found in test of Maggi noodles. It was written on pack “No added MSG”. However, in hydrolysed groundnut protein, wheat flour and onion powder, MSG is naturally present. Maggi was instructed to remove the words “No added MSG” (Sajan, R and R, 2016) from the pack to overcome the restriction.
- LEAD:Delhi authorities tested 13 samples of Maggi and 10 of them had lead content over the limit. When tested outside India in Singapore and USA, it resulted that Maggi noodles are safe. (Kaur, 2016) A bit of lead is found naturally in soil and plants. In some Indian spices also lead is found, but quantity is limited.
During this controversy, the sales fell by 60 percent and there was 60.1 percent decline in the revenue of Nestle India. There was a fall of 13.5 percent in the share price of Nestle India. (Nestle India Financial Analysts Meet, 2015) The states across the country started banning Maggi and few states ordered Nestle to stop the production. The consumers were very upset with this controversy and paused consuming Maggi. On June 5, 2015, Maggi was taken off shelves because of country wise ban by FSSAI (Food Safety and Standards Authority of India) claiming that the products are “unsafe and hazardous” to consume. The central government further banned it for an unlimited period. The court ordered a mandatory testing on three locations in India.
After reassuring customers Maggi is safe, the brand did a U-turn and chose to recall Maggi noodles created in India. The company decided to destroy Maggi noodles in India worth more than US $50million after they were considered risky by controllers.
The three stakeholder groups are public, Government body FSSAI and employees. The motivation to employees will be provided by a presentation where they will be told the science behind MSG and Lead. A report will be sent to FSSAI regarding the actual cause of issue and the public will be addressed by a press release in daily newspaper.
The aim of this media strategy is to reveal the science behind the ban. The press release can cover a large audience who are buyers and responsible for increase or decrease in sales. A report is sent to the authority, here in this case is FSSAI to clarify the issue. The best way to give a message to employees is in the form of presentation. As during training also presentations are an important medium.
This strategy will rebuild the confidence of stakeholders and ultimately benefit company.
Report to FSSAI
Ref. No………………………………….
Date…………………
From:
[Name of the Manager]
Communications Manager
Nestle India Ltd
To:
Mr./Ms [Name of the Commissioner]
Commissioner of Food Safety,
Department of Food Safety,
GNCT of Delhi, 8th Floor,
Mayur Bhawan, Near Shankar Market,
Connaught Place, New Delhi-110001
INDIA
Tel: 011-23413488
e-mail: [email protected]
Sub: Ensuring the Safety and Hygiene of Maggi 2 Minute Noodles
Sir/ Ma’am,
There was a ban implied on our products by FSSAI regarding some issues of MSG and Lead found in our products. We at Nestle India completely support the decision because the health of our customers is our priority.
This is to inform you that we have taken full responsibility of this issue and we will remove our product “Maggi 2 Minute Noodles” from the market. The company has taken some serious steps in this regard. The development in this case is as follows:
- Nestle India has decided to recall the noodles from the market and destroy them. Their worth is more than US $50 million.
- The noodles are sent to various laboratories operated by Nestle for testing and to the three mandatory laboratories mentioned by the court.
- We are organising various surveys among our target groups to know if they want any other changes except the MSG and Lead issues.
- The noodles will come in a new pack where everything will be same but label “No added MSG” will be removed.
The company wants to clear that MSG is found naturally in the foods used daily that are rich in protein such as milk, cheese, groundnut, tomatoes, etc. It was not added to the noodles but when hydrolysed peanut, wheat and onion powder are used, it comes naturally. So, the labelling will be removed. As Lead is concerned, the Maggi noodles that are exported from India to other countries are found to be under the permitted level when tested in those countries.
Before the production of any batch, testing is done and when the test results are acceptable, then only production starts. The lead is monitored at all the levels such as water, raw materials, packaging. The suppliers are audited before they provide us any raw material. The testing is still going on and the company will make sure that the lead is under permissible level when the production starts.
The health of the consumers is always our priority. The testing is not that we started doing after this issue, we always did it.
For any type of clarification regarding this issue or any other, the management of the company will always be there. We will keep you updated with every step taken in the direction to resolve this problem.
Thank You!
Yours Faithfully,
[Signature]
[Name of the Manager]
Communications Manager,
Nestle India Ltd.
Press Release to Daily Newspaper
Nestle India Ltd
Nestle House, Jacaranda Marg M Block
DLF City Phase II, National Highway 8
Gurgaon 122 002, India
Tel: +91 124 238 93 00
Fax: +91 124 238 93 99
FOR IMMEDIATE RELEASE
24 September 2021
[Name of the Manager]
Communications Manager
e-mail: [email protected]
Maggi - Ensuring Safety and Health of India
Nestle India Ltd want to assure the consumers of India that Maggi is safe to eat. There were reports about our noodles that a high level of Lead is found and MSG is also there.
On 5th June 2015, we were ordered to recall all our noodles and a nationwide ban is implied on the noodles. Nestle believes that the priority is consumer’s health and safety. So, we have decided to take all the noodles away from the market. Nestle India Ltd will be destroying all this stock. The company will be producing new batches when this problem will be resolved. The new production will strictly follow the orders from Government Authorities regarding MSG and Lead.
The company wants to clarify the science behind MSG and Lead. MSG (Monosodium Glutamate) is the fifth unique taste besides sugar, salt, bitter and sour. It originated in Japan almost before 100 years. All protein-rich foods consumed on a daily basis such as milk, cheese, groundnut, tomatoes, etc. contains MSG naturally. When we add ingredients such as hydrolysed groundnut, wheat flour, onion powder, MSG comes automatically with them. It is not that we add it knowingly, it comes through nature. So, when it will be tested for Glutamate, it will come positive.
Lead is found in earth’s crust, everywhere, even in batteries, paints, soil all have lead. Regulators know that there can’t be zero lead situation, so they have fixed the toxicity limit and for our product, it is 2.5 parts per million as the upper limit.
The company has decided to provide following developments to the esteemed customers:
- The noodles (Maggi 2 minute noodles) will be launched again with the same packing but won’t be the labelled “No added MSG”.
- The levels of Lead are monitored regularly at our laboratories whether it is in the water used in our factory, packaging, or raw materials. The Maggi that is exported from India is also tested negative in those countries. The samples at our laboratories are not only tested for lead, but also for other contaminants and heavy metals. The testing will be done on the three mandatory laboratories as per the orders of Supreme Court of India.
For more information, the management from the company will always be there. As long as there's a need, regardless of how substantial or little, we will answer the call for help in every way possible.
Nestle India Ltd. (NIL), is the Indian subsidiary of worldwide FMCG company, Nestle SA Nestle operates in 86 countries of the world with 447 factories and 196 countries sell Nestle products. Nestle is the world’s leading nutrition, health, and wellness company with a unique portfolio of more than 2,000 global and local brands.
Restoring: MAGGI
The ProblemOn June 5, 2015, A nation wide ban was imposed on Maggi 2 minute noodles by Government body FSSAI. The reason for the ban is excess level of Lead found and the presence of MSG (Monosodium Glutamate) in Maggi. The sales has already fallen by more than 60 percent and revenue has declined by 60.1 percent. The share price has fallen by 13.5 percent. Overall, a big turmoil.
Aim
To understand the science of MSG and Lead.
Restore the confidence in consumers about Maggi.
To follow the guidelines from Government body FSSAI.
What is MSG Controversy?
What is Lead Controversy?
The lead is present everywhere. It can not be avoided, so a limit of 2.5 parts per million is fixed by authorities for our noodles.
When we did the tests of Maggi exported from India in USA and Singapore, it showed that lead is under permissible limit. As you are aware, various tests are conducted for water, packing, raw materials before the production.
The Supreme Court of India wants us to do a mandatory testing in three Indian laboratories beside decreasing the level of lead.
Unity of Employees
Steps Taken
Rollback of Noodles from the market.
All present stock will be destroyed.
Maggi will come in a new pack just like previous one but the label “No added MSG” won’t be there.
Proper testing for lead will be done before new production.
Surveys amongst customers to get any new suggestions.
Time to Restore
References
Balakrishnan, R. and Bapna, A. (2015). #MaggiInASoup: A case study of how not to handle a crisis - The Economic Times. [online] The Economic Times. Available at: https://economictimes.indiatimes.com/magazines/brand-equity/maggiinasoup-a-case-study-of-how-not-to-handle-a-crisis/articleshow/47599502.cms [Accessed 19 May 2017].
Booshan, S. and Das, R. (2016). A Research Paper on the Maggi Muddle Case and its Impact on the Psyche of the Indian Consumers (18 to 24 years). Impact: International Journal of Research in Applied, Natural and Social Sciences, 4(9), pp.99-116.
Digitaltrainingacademy.com. (2017). Digital marketing case study - Crisis management case study: Nestlé’s Maggi noodles banned in India - Digital Training Academy. [online] Available at: https://www.digitaltrainingacademy.com/casestudies/2015/07/crisis_management_case_study_nestles_maggi_noodles_banned_in_india_1.php [Accessed 19 May 2017].
Kaur, A. (2016). The Impact of Controversy of “Nestle’s Maggi” on Consumers and the Company. Orbit-Biz-Dictum, 1(1), pp.56-71.
Nestle.com. (2017). [online] Available at: https://www.nestle.com/media/facts-figures [Accessed 20 May 2017].
Nestle.com. (2017). MAGGI Noodles in India. [online] Available at: https://www.nestle.com.ph/media/pressreleases/maggi-noodles-in-india [Accessed 20 May 2017].
Nestle India Financial Analysts Meet. (2015). 1st ed. [ebook] Available at: https://www.google.co.in/url?sa=t&rct=j&q=&edata-src=s&source=web&cd=3&cad=rja&uact=8&ved=0ahUKEwjJp_O5nP7TAhVLuI8KHaKdBvMQFgguMAI&url=https%3A%2F%2Fwww.nestle.in%2Finvestors%2Fdocuments%2Fnestl%25C3%25A9-india-transcript-of-financial-analyst-meet.pdf&usg=AFQjCNFAFdSd4rbEjFPnA5lkQXK9lLPirA&sig2=cggIXKreDzwTGiERMXN3mg [Accessed 20 May 2017].
Sajan, K., R, K. and R, P. (2016). A Study on the Customers Attitude towards the Relaunch of Maggie Noodles in Ernakulam. IRACST – International Journal of Commerce, Business, and Management, 5(3), pp.16-22.
Shah, K. (2015). [CASE STUDY]- How "Maggi Noodles" tried to gain Trust via Digital Medium!. [online] Linked In. Available at: https://www.linkedin.com/pulse/case-study-how-maggi-noodles-tried-gain-trust-via-digital-kunal-shah [Accessed 19 May 2017].
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