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"Crisis Management and Image Restoration through Social Networking: Analysis of Maggi Crisis" offered for free access

Can a Reputation Ruined on Social Media be Restored?

By IGI Global on Sep 6, 2016
Can a Reputation Ruined on Social Media be Restored? Maggi’s entry into Indian markets in the 1980s and its rapid success as an easy-to-cook noodle snack were previously often cited as a management case study. Quickly growing to become one of India's most trusted brands, as well as one of the country's most popular snack foods, reports of MSG and unsafe levels of lead in the product were catastrophically devastating to the brand.

Initially, Maggi's owner Nestle actively denied these allegations, assuring their customers over Twitter, Facebook, and their website that the noodles were completely safe and that they would not be recalling any Maggi products. The controversy arose after the Uttar Pradesh Food Safety and Drug Administration ordered the recall of a batch consisting of 200,000 Maggi noodle packs. With more and more states deciding to randomly test samples and banning sales in the interim, coupled with retail chains removing it from their shelves, the company had no choice but to retract the questionable product. It is expected to have eroded brand value by at least 30-40%, according to brand specialists. Retail analysts claim that sales have dropped by at least 60-70%.

This information, along with an analysis of the effects of social media on brand image and reputation, is discussed in further detail in the IGI Global article "Crisis Management and Image Restoration through Social Networking: Analysis of Maggi Crisis," from the International Journal of Virtual Communities and Social Networking. This research aims to discern how social networking sites have become an important tool in enabling immediate crisis communication. Juxtaposing theories on crisis and strategies of image restoration, the paper aims to analyze the recent Maggi Crisis, utilizing Twitter and Facebook as points of analysis, overall observing that although social networking sites facilitate immediate communication, they can cause a lot of damage to the reputation of the organization if utmost care is not taken in the message that is delivered.

Access the article "Crisis Management and Image Restoration through Social Networking: Analysis of Maggi Crisis" here.

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