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MAGGI NOODLES HEC Turnaround Specialist Team Caroline Crawford – Kim Bergeron – Deniz Eras – Gert Kongehl
Agenda Context
AcAon Plan
New crisis strategy
Conclusion
1. Context and strategy to regain Maggi noodles market share 2. CommunicaAon Plan to regain confidence of consumers 3. MarkeAng plan to win customers back and tackle compeAAon 4. Quality assurance team 5. New crisis recommendaAon 6. Financial projecAons 7. Conclusion
Context Context
AcAon Plan
New crisis strategy
Conclusion
1. Maggi has been undisputed leader in the noodle business. 2. Unfortunate lead events affected sales and public percepAon of Maggi. 3. Maggi Noodle market share impacted and compeAtors taking advantage of incident. With our proposed turnaround strategy, Maggi will be able to contain the damage and regain its market share and place in the heart India’s populaAon.
Stakeholders analysis Context
AcAon Plan
New crisis strategy
Conclusion
Influence Stakeholders 1. Employees 2. Shareholders 3. Consumers 4. Media 5. Government 6. Distributors -‐ retailers
5.
3. 6. 4.
1 and 2
Interest
Ac>on Plan -‐ Communica>on Context Who
AcAon Plan
New crisis strategy
What
Conclusion How
When
1. Employees
Audit results, content of the tesAng, adverAsing campaign, quality team creaAon
HR department – Special meeAng Managers via internal 2 weeks from memos now
2. Shareholders
Audit results, annual report, publicize the new turnaround strategy
Annual meeAngs, reports via corporate affairs and finance departments
Communiqué 2 weeks from now
3. Consumers
Publicize lab results – transparency. New adverAsings, refresh brand
TV, Magazines, on-‐ site events
5 days from now -‐ ongoing
4. Media
Results of reports, AdverAsing involvement in food safety
CommunicaAon department
5 days from now
5. Government
Results of report, collaboraAon with FSSAI in quality control
Corporate affairs and finance
In one month
6. Distributors -‐ retailers
MarkeAng and rebranding plan
MeeAngs – e-‐mails
As soon as possible
Ac>on Plan -‐ Marke>ng Context • • • •
AcAon Plan
PRICE Remain the same for consumers Temporary coupons Supermarkets promo>on Volume discounts for distributors
PRODUCT • Ensure quality and safety • Regional flavors contest (Crowdsourcing) • Refreshed packaging
New crisis strategy
Conclusion
PLACE • Regain shelves space in all historical distribu>on channels
• • • • • •
PROMOTION Nostalgia and family focused marke>ng campaign University – college sampling High traffic work places loca>ons Spor>ng events Bollywood and criquet celebri>es New MD included in adver>sing – consuming noodles
Ac>on Plan – Quality Audit Team Context
AcAon Plan
New crisis strategy
Conclusion
• Establish a new quality audit team to • Research origins of lead incident • Research methods to progressively reduce lead content in noodles • Cross-‐CollaboraAon with other quality specialist • Work closely with the FSSAI • Start from monthly frequency to quarterly aaer 1 year quality audits
New Crisis Strategy Context
AcAon Plan
New crisis strategy
Conclusion
• Be more proacAve and react faster to incidents • In the event of lack of internal experAse request professional external help • Reassure populaAon that everything is being done to invesAgate/ recAfy situaAon • Clarify preliminary findings • If issues exist issue recall products immediately
Ac>on Plan – Key Financial Assump>ons Context Rebranding budget Marketing budget
AcAon Plan
New crisis strategy
Conclusion
Y2 Marketing
3% of Sales: covering the bollywood, cricket, and new MD advertising 2% of Sales: covering packaging, regular advertising, flavour campaign, social media, university e vents Slows to 1.5%
Team Localization team Audit VP Audit team Outsourcing
1.1M ruppees 1.1M ruppees 4.4M ruppees 2.2M ruppees 3 FTE
Marketshare Growth Steady state profit % Communication budget
1% 13% Q1 2015 1% of sales Q3
Ac>on Plan -‐ Financials Context
AcAon Plan
New crisis strategy
Conclusion
Billion Rupees 2015 Revenue Profit
Q1 25.1 3.2
2016
Q2 19.3 -‐0.6
Q3 18.2 2.3
Q4 19.6 2.5
Q1 21.0 2.7
Q2 23.3 3.0
Q3 26.1 3.3
Q4 28.9 3.7
1.0 1.5
1.0 1.7
0.4 2.6
0.5 2.9
0.5 3.2
40.8 48%
41.2 51%
41.6 56%
42.0 62%
42.5 68%
Incremental Spend Net Profit
3.2
-‐0.6
1.8 0.6
Market Market Share
39.6 63%
40 48%
40.4 45%
Ac>on Plan – Cost Projec>ons Context
AcAon Plan
New crisis strategy
2015 Q3 Marketing Campaign Rebranding Marketing Campaign Total Marketing Campaign Crowdsourcing platform Team Localization Platform Crowdsourcing total Communication Consultant Audit Team VP Team Total Audit Team Total Initiative Cost
Conclusion
2016 Q4
Q1
Q2
Q3
Q4
545,400 363,600 909,000
587,578 391,718 979,296
630,544 315,272 945,816
349,643 349,643
390,976 390,976
433,100 433,100
825,000 825,000
1,375 1,375 55,000 57,750
1,375 1,375 55,000 57,750
1,375 1,375 55,000 57,750
1,375 1,375 55,000 57,750
1,375 1,375 55,000 57,750
2,750 2,750 5,500
2,750 2,750 5,500
2,750 2,750 5,500
2,750 2,750 5,500
2,750 2,750 5,500
1,752,180 1,042,546 1,009,066
412,893
454,226
496,350
Comments new rebranding focus new campaign
5 e mployees 2 e mployees and outsourcing
18,180
1 V P 5 e mployees
Ac>on Plan – Cost Projec>ons Context
AcAon Plan
New crisis strategy
Conclusion
1. New acAon plan assure NIL is prepared against unexpected risks going forward; 2. With strong branding and markeAng campaign NIL will reestablish its brand posiAoning; 3. Localized markeAng iniAaAves will bring NIL closer to customers and communiAes.
Thank you
Thank you
Agenda Context
AcAon Plan
New crisis strategy
Conclusion
1. Context and strategy to regain Maggi noodles market share 2. CommunicaAon Plan to regain confidence of consumers 3. MarkeAng plan to win customers back and tackle compeAAon 4. Quality assurance team 5. New crisis recommendaAon 6. Financial projecAons 7. Conclusion
Context Context
AcAon Plan
New crisis strategy
Conclusion
1. Maggi has been undisputed leader in the noodle business. 2. Unfortunate lead events affected sales and public percepAon of Maggi. 3. Maggi Noodle market share impacted and compeAtors taking advantage of incident. With our proposed turnaround strategy, Maggi will be able to contain the damage and regain its market share and place in the heart India’s populaAon.
Stakeholders analysis Context
AcAon Plan
New crisis strategy
Conclusion
Influence Stakeholders 1. Employees 2. Shareholders 3. Consumers 4. Media 5. Government 6. Distributors -‐ retailers
5.
3. 6. 4.
1 and 2
Interest
Ac>on Plan -‐ Communica>on Context Who
AcAon Plan
New crisis strategy
What
Conclusion How
When
1. Employees
Audit results, content of the tesAng, adverAsing campaign, quality team creaAon
HR department – Special meeAng Managers via internal 2 weeks from memos now
2. Shareholders
Audit results, annual report, publicize the new turnaround strategy
Annual meeAngs, reports via corporate affairs and finance departments
Communiqué 2 weeks from now
3. Consumers
Publicize lab results – transparency. New adverAsings, refresh brand
TV, Magazines, on-‐ site events
5 days from now -‐ ongoing
4. Media
Results of reports, AdverAsing involvement in food safety
CommunicaAon department
5 days from now
5. Government
Results of report, collaboraAon with FSSAI in quality control
Corporate affairs and finance
In one month
6. Distributors -‐ retailers
MarkeAng and rebranding plan
MeeAngs – e-‐mails
As soon as possible
Ac>on Plan -‐ Marke>ng Context • • • •
AcAon Plan
PRICE Remain the same for consumers Temporary coupons Supermarkets promo>on Volume discounts for distributors
PRODUCT • Ensure quality and safety • Regional flavors contest (Crowdsourcing) • Refreshed packaging
New crisis strategy
Conclusion
PLACE • Regain shelves space in all historical distribu>on channels
• • • • • •
PROMOTION Nostalgia and family focused marke>ng campaign University – college sampling High traffic work places loca>ons Spor>ng events Bollywood and criquet celebri>es New MD included in adver>sing – consuming noodles
Ac>on Plan – Quality Audit Team Context
AcAon Plan
New crisis strategy
Conclusion
• Establish a new quality audit team to • Research origins of lead incident • Research methods to progressively reduce lead content in noodles • Cross-‐CollaboraAon with other quality specialist • Work closely with the FSSAI • Start from monthly frequency to quarterly aaer 1 year quality audits
New Crisis Strategy Context
AcAon Plan
New crisis strategy
Conclusion
• Be more proacAve and react faster to incidents • In the event of lack of internal experAse request professional external help • Reassure populaAon that everything is being done to invesAgate/ recAfy situaAon • Clarify preliminary findings • If issues exist issue recall products immediately
Ac>on Plan – Key Financial Assump>ons Context Rebranding budget Marketing budget
AcAon Plan
New crisis strategy
Conclusion
Y2 Marketing
3% of Sales: covering the bollywood, cricket, and new MD advertising 2% of Sales: covering packaging, regular advertising, flavour campaign, social media, university e vents Slows to 1.5%
Team Localization team Audit VP Audit team Outsourcing
1.1M ruppees 1.1M ruppees 4.4M ruppees 2.2M ruppees 3 FTE
Marketshare Growth Steady state profit % Communication budget
1% 13% Q1 2015 1% of sales Q3
Ac>on Plan -‐ Financials Context
AcAon Plan
New crisis strategy
Conclusion
Billion Rupees 2015 Revenue Profit
Q1 25.1 3.2
2016
Q2 19.3 -‐0.6
Q3 18.2 2.3
Q4 19.6 2.5
Q1 21.0 2.7
Q2 23.3 3.0
Q3 26.1 3.3
Q4 28.9 3.7
1.0 1.5
1.0 1.7
0.4 2.6
0.5 2.9
0.5 3.2
40.8 48%
41.2 51%
41.6 56%
42.0 62%
42.5 68%
Incremental Spend Net Profit
3.2
-‐0.6
1.8 0.6
Market Market Share
39.6 63%
40 48%
40.4 45%
Ac>on Plan – Cost Projec>ons Context
AcAon Plan
New crisis strategy
2015 Q3 Marketing Campaign Rebranding Marketing Campaign Total Marketing Campaign Crowdsourcing platform Team Localization Platform Crowdsourcing total Communication Consultant Audit Team VP Team Total Audit Team Total Initiative Cost
Conclusion
2016 Q4
Q1
Q2
Q3
Q4
545,400 363,600 909,000
587,578 391,718 979,296
630,544 315,272 945,816
349,643 349,643
390,976 390,976
433,100 433,100
825,000 825,000
1,375 1,375 55,000 57,750
1,375 1,375 55,000 57,750
1,375 1,375 55,000 57,750
1,375 1,375 55,000 57,750
1,375 1,375 55,000 57,750
2,750 2,750 5,500
2,750 2,750 5,500
2,750 2,750 5,500
2,750 2,750 5,500
2,750 2,750 5,500
1,752,180 1,042,546 1,009,066
412,893
454,226
496,350
Comments new rebranding focus new campaign
5 e mployees 2 e mployees and outsourcing
18,180
1 V P 5 e mployees
Ac>on Plan – Cost Projec>ons Context
AcAon Plan
New crisis strategy
Conclusion
1. New acAon plan assure NIL is prepared against unexpected risks going forward; 2. With strong branding and markeAng campaign NIL will reestablish its brand posiAoning; 3. Localized markeAng iniAaAves will bring NIL closer to customers and communiAes.
Thank you
Thank you
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