“Jus
t two weeks ago, lead-tainted toys manufactured in China, forced US toys major Mattel to withdraw a slew of plastic pre-school toys, including replicas of Elmo, globally and in India. Now despite the fact that they have quality safeguards, such incients do happen in a global world, where outsourcing is the buzz word,” explains communication guru Gulu Sen. Lin agrees. “Nokia is experiencing the same pressures as all other mobile phone makers in India in delivering products in volume at the lowest cost possible. Product failures due to the cost cutting pressure put on all cell phone makers and their vendors is a well understood in- dustry challenge when it comes to making products for high growth markets,” he points out. But, while consumers may be willing to accept realistic and honest answers and have supportive reactions when it comes to problems related to technology-related products, food products and toys (which land up in the hands of kids and none else) invariably attract harsher consumer reactions. In case of the Cadbury worm controversy in 2003, the chocolate major’s market share was hit hard. “The company did resort to advertising and roped in a celebrity ambassador, but then they also had to work hard at the ground level,” opines Brand Analyst, Harish Bijoor.
t two weeks ago, lead-tainted toys manufactured in China, forced US toys major Mattel to withdraw a slew of plastic pre-school toys, including replicas of Elmo, globally and in India. Now despite the fact that they have quality safeguards, such incients do happen in a global world, where outsourcing is the buzz word,” explains communication guru Gulu Sen. Lin agrees. “Nokia is experiencing the same pressures as all other mobile phone makers in India in delivering products in volume at the lowest cost possible. Product failures due to the cost cutting pressure put on all cell phone makers and their vendors is a well understood in- dustry challenge when it comes to making products for high growth markets,” he points out. But, while consumers may be willing to accept realistic and honest answers and have supportive reactions when it comes to problems related to technology-related products, food products and toys (which land up in the hands of kids and none else) invariably attract harsher consumer reactions. In case of the Cadbury worm controversy in 2003, the chocolate major’s market share was hit hard. “The company did resort to advertising and roped in a celebrity ambassador, but then they also had to work hard at the ground level,” opines Brand Analyst, Harish Bijoor.An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative
