Every brand has a flaw, but it is the action taken after that which defines the reputation of the brand. One of the biggest branding blunders has to be how Maggi Noodles responded to the 2015 MSG and lead scandal.
The Crisis: A Recipe for Disaster
Maggi noodles in India suffered a blow due to the intervention of FSSAI. The government had found excess quantities of lead and MSG in Maggi products. Due to this, there was a national strike against the consumption of the product. As the brand reputation suffered, so did the revenue. There was a rapid decline in the sales of Maggi products and their reputation plummeted. Maggi had single handedly dominated the market, but now stood on the verge of collapse.
How Maggi Bounced Back How Maggi Bounced Back
Although their fall was immense, there were a number of strategies employed by Maggi that aided in revival of the business.
1. Transparency & Testing – Famously known as the parent brand of Maggi, Nestle conducted through global audits to prove the veracity of their claims over the product. The results of these audits were made public and put all doubts to rest.
2. Emotional Connection – Maggi capitalized nostalgia with the recall of their classic advertisement and executed the #WeMissYouMaggi campaign.
3. Reinvention & Assurance: To regain customer trust, Maggi put a lot of money in social media marketing while also upgrading their packaging and introducing newer, healthier variants of the product.
The Result: A Comeback Story for the Ages
After a few months of reintroducing the product, Maggi was able to regain over 60% of the market share they had lost. Their product is now a staple food in Indian households, demonstrating that restoring brand loyalty is achievable using a powerful comeback strategy.
The Takeaway: Crisis Can Be an Opportunity
Maggi’s case teaches 3 essential business practices:
1. Accept ownership of the issue – Come clean about mistakes and take responsibility for issues raised.
2. Establish a deeper relationship with customers – Emotional attachment strengthens brands.
3. Enhance and revise – Innovate to build confidence and expand alongside the market’s needs.
What other brands do you feel are worthy of discussion for their exceptional marketing re-branding comeback strategies? Let us talk about it.
