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Last Modified: Wed, Oct 28 2015. 12 38 AM IST

How to convince customers and rebuild

brand trust
When a brand like Maggi that is fraught with controversy is being re-introduced,
what are the strategies a management can adopt? Three experts tell us

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Photo: Bloomberg

Need to be wary of rivals

Siddharth Shekhar Singh, associate professor of marketing, Indian School of Business

Relaunching a product that has been pulled out of the market due to a controversy is
sometimes easier than launching a new product, particularly when the company is
not perceived to be at fault, says Singh.
In the case of Maggi, in relaunching the product Nestl will not face all the challenges
that a company typically faces in any new launch, as people are already aware of
Maggi and its a proven product, he says.
The biggest challenge for any company, says Singh, is to convince customers to move
past the controversy and try the product again.
Customers have inertia. In the case of Maggi, some of them might have moved to a
competitor and some others might have quit the category entirely over health
concerns, he says, adding that some such customers might not come back to the
product.
In such a relaunch scenario, a company must first try to clear the air around the
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controversy without strengthening the link between the negative aspects of the issue
and the product in the minds of consumers.
In Nestls case, it has to come up with simple, clear and effective campaigns to make
sure that people understand that there is nothing wrong with the product, especially
on the health side, says Singh, adding that making the product available again in the
market is another huge logistical challenge that the company will face.
Compared with smaller firms, a market leader such as Maggi will find it easier to relaunch, says Singh. For strong brands, its easier to recover from such shocks. The
task can be made easier if they handled the situation better when the crisis erupted,
he adds.
However, companies need to be wary of rivals who might use the crisis to increase
their market share and create a negative perception about the product at the centre of
the controversy.
The competition will try to use the situation to its advantage by highlighting issues
such as health hazards, as in the case of Maggi, to further its products in the market,
says Singh, adding that for smaller rivals, it makes sense to use such strategies to gain
market share even at the expense of the category itself.

Swaraj Singh Dhanjal

New packaging or new launch

Jessie Paul, founder and CEO, Paul Writer

According to Paul, relaunches vary from just new packaging formats to ones that treat
the relaunch almost like a new brand launch and use all channels of advertising.
She says brands such as Old Spice and Cadbury have successfully relaunched
themselves in the past. For instance, Old Spice, which was a voluntary relaunch, was
one such example that transformed your Grandpas aftershave into one for the
contemporary man, she adds.
Cadburys relaunchafter worms were found in its products involved a complete
revamp of the packaging, which was the root cause, hiring a very credible brand
ambassador in Amitabh Bachchan and educating the entire supply chain, she points
out.
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Paul says brands like Maggi, which is trying to come back to the market after the
recent controversy over its quality, have two ways to relaunch its product.
Admit that it (the company) may have been somewhat at fault and show how it has
addressed any possible weaknesses prior to its relaunch or tell consumers that they
were the victim of an unfair witch-hunt. Either route will need to be backed up with
supporting facts, which are glaringly missing in the current outreach, she says.
It would also be a good time to prove that instant noodles is as healthy as chapatti and
sabzi, she says.
Paul, however, says that Maggis current relaunch appears shaky. After an
inexplicable silence, Maggi came back with by-the-Agency-for-the-Agency I miss you
Maggi ads, which did not address its core market of kids and their mothers. Then the
blunt Maggi is safe ads, which failed to explain then why it was not back on shelves,
she notes.

Bidya Sapam
Be transparent, communicate

Ashish Bhasin, chairman and CEO, Dentsu Aegis Network South Asia
There has to be transparent and honest communication from the company at every
step, says Bhasin, who in his career spanning over three decades has worked with
large brands across advertising agencies.
According to Bhasin, any crisisinternal or externalmust involve all stakeholders in
a company, including employees, suppliers, vendors, government and, of course,
consumers, who must be told what is going on. The more the companies wait around,
the more questions are raised. And you dont want rumour mills working on an
overdrive, he cautions.
According to him, brand trust isnt built in a daybut it can crumble in a day. Be
patient and tactile, involve the top executives, people who have a reputation of trust
within and outside the organization, adds Bhasin. Shareholders need a constant voice
of reassurance coming from the company.
That job cannot be given to a mid-level employee.
In the case of Maggi for instance, Nestls global chief Paul Bulcke flew down from the
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companys head office in Vevey, Switzerland, to talk to the government, addressing

the media and other such stakeholders.
As for consumers, suggests Bhasin, since they dont necessarily relate to the top
management, deploy brand ambassadors to communicate with consumers.
Just like Cadbury chocolates roped in actor Amitabh Bachchan in 2004 to rescue the
brand amid controversy surrounding its chocolate bars that were found to have
worms. The brand released a commercial featuring the actor talking about the safety
measures taken by the chocolate maker.
Ensuring the safety of a product with a voice that is trustworthy and communication
that is timely can help, adds Bhasin.
Also, accept and apologize. Now that the blunder has been done, there is little you
can do to cover it up.
Be transparent and communicate regularlybe it through videos, website updates,
communication to the press and of course well-planned advertisements, suggests
Bhasin.

Suneera Tandon
Livemint

TOPICS: MAGGI RELAUNCH NESTLE BRAND TRUST

CUSTOMERS

EXPERT OPINIONS

First Published: Wed, Oct 28 2015. 12 37 AM IST

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