Questions: ( Case Solving)

(a) Briefly state the branding issue(s) that Lactalis is facing now.

Answer: Based on the case study, Contamination in their product that is targeted for baby’s in
case of milk powder.

Lactalis facing some critical issue that not only affect the brand image of Lactialis but also bring
negative impact on the country like Franch. Facing some core issues:

 Brand Image: Facing Imagery problem from quality issues.

 Reputation: Lactails lost their reputation.
 Loyalty: As well as they also lost their loyal consumers.

Lactails also facing some negative impact on global and domestic markets.

(b) How would you explain the customer-sensitivity and credibility of the food
contamination issue for a baby food brand? Briefly elaborate how Depth and
Breadth of brand awareness is affected. (hint: explain how this problem can ruin
the image of the company’s other products and also the image associated with other
stakeholders. Particularly link your analysis to company’s past behavior in handling
similar problems).

Answer: Based on the scenario, Lactails Milk powder contamination can broadly affect and
create imagery problem for the brand and as well as also create a negative impact on other
products of the brand.

Impact in the depth of the brand includes recognition and strength of the brand. As well as
breadth also low means purchasing of the brands product is low.

Savvy Consumers have available information about the product and service that the company
offers. Accordingly found that contamination in their baby milk powder. For that consumer s
have some negative impact on the brand because it’s a critical issue for “Lactails”.

Basically brand knowledge effect the awareness and image of a certain brand like lactails or
other product that used the power of “Lactails” for endowing in the market.
 (c) Briefly explain the possible consequences (image, money and reputation) of such
incident(s) on branding a country like France.

Answer:

Basically consider the country of origin and the brand impact. Temporarily it can create some
problem but in long run it will not impact. Restriction was imposed by the French government in
their export system because “Lactails” baby product contamination in milk powder might create
negative impact on the image of France in a short term but in long run one brand cannot create
an impact of the Country like French.

 Firstly, “Lactails” must have to face imagery problem, reputation decreases and also face
monetary problem. Because consumers compare the total benefit and total cost of the
brand. Temporarily they face some sorts of problem but in the long run they can
overcome from the critical issues.
 After hearing the news of contamination in their product they take action immediately.
They recall their product from around 86 countries. Basically this proactive type behavior
also create a brand image in a positive view because consumers see how the company
(Lactails) react to overcome the problem as well as it also increase the brand reputation
over the time.
 For this contamination and imagery problem customers perception or perceived value
changed in a short term, they become savvy and cant purchase product from that Brand.
(d) What are your recommendations to avoid such problem in future?

Answer:

 Proactive way: The management team should be proactive so that in future this type of
problem can’t arise.
 TQM: Ensure quality by continuous product development.
 Effective inspection: When introducing a new product, the company must make a team
of sample panel team for effective inspection.
 Distribution Channels: Strong Distribution channel required, so that “Lactails” can
easily recall their contaminated product from the local or global market.