Brand Maggi :Nestle's powerful Arm
The report entitled A Study of “Brand Maggi” deals with the study of Maggi brand that was launched in India in the year 1983, by Nestle India Limited, which became synonymous with noodles. This research tries to find awareness of Maggi& its product line with that of its competitors. The introduction provides the company background, operational & other important information provided by the company, which would assist in taking the decision for the right brand extension strategy for Maggi.
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Brand Study : MAGGI
1. Brand Study: Maggi 1
2012
A Project Report On
“ Brand Study ”
Project Analyzed & Documented By :
Dixita Porwal, PGP/FW/10-12/ISBE-A
Pratik Gandhi, UGP/FW/09-12/IIPM
Rajwin Patel, UGP/FW/10-12/ISBE
Sagar A. Agrawal, UGP/FW/09-12/IIPM
Sneha Chandan, PGP/FW/10-12/ISBE-B
2. Brand Study: Maggi 2
ACKNOWLEDGMENT
We heartily thank our Project in-charge, Prof. Avinash Murkute,Faculty IIPM,
Pune, whose encouragement, guidance and support from the initial to the final
level enabled us to develop an understanding of the subject. We are grateful for
Sir‘s contribution towards the execution of our project.
Lastly, we offer our regards and blessings to all of those who supported us in any
respect during the completion of the Research.
3. Brand Study : Maggi 3
TABLE OF CONTENTS
S.NO PARTICULARS PAGE-NO
1 Executive Summary 5
2 Background Of Nestle India 6
3 The Company’s History 8
4 Management Structure 10
5 CSR Activities 11
6 Introduction Of The Project 14
7 Brand Story 16
8 Maggi Brand Extension 17
9 Brand Name And Logo 22
10 Jingles And Taglines 27
12 Management Strategies 30
4Ps Evaluation
Integrated Marketing Communication
STPD Analysis
SWAT Analysis
Brand Prism
13 Sales And Marketing Channel 44
4. Brand Study : Maggi 4
14 Distribution Channel 45
15 Market Penetration Strategies 47
16 Taste And Preferences Of Consumer 49
17 Demography and psychograph of consumers 52
18 Research Methodology 53
19 Data Collecting Plan 55
20 Comparative Analysis Based On Questionnaire 60
21 Analysis 65
21 Success Factors Of Maggi 66
22 Conclusion 68
23 Recommendation 70
24 Bibliography 71
5. Brand Study: Maggi 5
EXECUTIVE SUMMARY
The report entitled A Study of “Brand Maggi” deals with the study of Maggi
brand that was launched in India in the year 1983, by Nestle India Limited, which
became synonymous with noodles. This research tries to find awareness of
Maggi& its product line with that of its competitors. The introduction provides the
company background, operational & other important information provided by the
company, which would assist in taking the decision for the right brand extension
strategy for Maggi.
6. Brand Study: Maggi 6
INTRODUCTION
Background – Nestle India ltd:-
Nestle India Limited (NIL) is the Indian subsidiary of the global FMCG major, Nestle
SA. Nestle India Ltd. introduced Maggi Brand to the Indian consumers with the launch of
Maggi 2 Minute Noodles, an instant food product, in 1982. With the launch of Maggi
noodles, Nestle India Ltd. created an entirely new food category - instant noodles - in the
Indian packaged food market. Nestlé, which world knows as cautious and conservatory
company is a Swiss originated 140 years old Multinational. The man at the helm is Swiss
national Carlo Donati, an all inspiration and image of the company. His philosophy is
‗bottom line dictating top line‘ based on delegation and decentralization. It resulted from
a merger in 1905 between the Anglo-Swiss Milk Company for milk products established
in 1866 by the Page Brothers in Cham, Switzerland and the Farine Lactée Henri Nestlé
Company set up in 1867 by Henri Nestlé to provide an infant food product. Nestlé India‘s
business objective and that of its management and employees is to manufacture and
market the Company‘s products in such a way as to create value that can be sustained
over the long term for consumers, shareholders, employees, business partners.
The product mix of Nestle India consists of milk products and baby products (42.5%),
beverages (29.3 %), processed foods (14.4 %), chocolate and confectionary (13.8 %).
Nestle India plans to expand
7. Brand Study : Maggi 7
business into similar and diversified product categories. With an Employee strength of
over 3000 and turnover of US$ 497 million in 2003, Nestle India is one of the leading
companies in the FMCG space in India. The company is acknowledged among India‘s
most respected companies and among the top Wealth Creators of India.
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THE COMPANY'S HISTORY
Year 1870 -The Swiss Julius Michaël Johannes Maggi (1846-1912) inherited the
family business: a mill in Kemptal, near Zurich.
Year 1886 - Several women were factory workers, thus the time available for
housework and the preparation of meals was considerably reduced, and working
class families suffered from poor nutrition. In view of this state of affairs, the
doctor Schuler recommended the wide use of dried vegetables: peas and beans,
given their rich nutritive value. Julius Maggi produced appliances for roasting and
grinding these vegetables, to make flour from peas, beans, lentils etc., and enabling
housewives to make a quick nourishing soup.
Year 1900 - At the Universal Exhibition, Maggi won several medals and grand
prizes. Jules Magi set up home in Paris. The French head office was on the Place
de l'Opéra, and the factory on the Boulevard Arago. Maggi now had depositories in
Paris, Berlin, Singen (Germany), Vienna and Bregenz (Austria). A number of
advertising texts written by Franck Wedekind had strong military undertones:
Year 1947 - Maggi merged with the Nestle India firm.
Year 1948 - Sopad took over from Nestle to handle production and marketing for
Nestle and Maggi products in France. Maggi now had eleven factories throughout
the world.
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Year 1982 - Nestle India Ltd. introduced Maggi to the Indian consumers with the
launch of Maggi 2 Minute Noodles, an instant food product, in 1982. With the
launch of Maggi noodles, Nestle India Ltd. created an entirely new food category -
instant noodles - in the Indian packaged food market.
Year 1984 - Eating habits changed, and Maggi adjusted their products, with low
fat Bouillons, Bouquet Garni ("a little extra to add taste and give your dishes a
festive look!"), and "Soupes Moulinées", a new line to add to their "Soup Time"
range. The ad announcing the new "Maggi soufflé mix" had two sections: on the
"BEFORE" page, a man disguised as a oriental wise man levitates a magnificent
soufflŽ, on the "AFTER" page, the same man holds the Maggi sachet in his handsÉ
"The magic formula to a successful soufflé!"
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MANAGEMENT STRUCTURE
National Sales Manager
Regional Sales Manager
Consumer Service Area Manager System Support Event
Manager
Territory in- System Support Event Manager
charge Manager
Leader
Sales
Associates
Distributer
11. Brand Study : Maggi 11
CSR – ACTIVITIES
Nestlé has been a partner in India's growth for over nine decades now and has built
a very special relationship of trust and commitment with the people of India. The
Company's activities in India have facilitated direct and indirect employment and
provides livelihood to about one million people including farmers, suppliers of
packaging materials, services and other goods.
Nestlé India manufactures products of truly international quality under
internationally famous brand names such as NESCAFÉ, MAGGI, MILKYBAR,
MILO, KIT KAT, BAR-ONE, MILKMAID and NESTEA and in recent years the
Company has also introduced products of daily consumption and use such as
NESTLÉ Milk, NESTLÉ SLIM Milk, NESTLÉ Fresh 'n' Natural Dahi and
NESTLÉ Jeera Raita.
Nestle in the community:-
Nestlé India has always focused on long term, sustainable and profitable growth
and helped communities around its factories to improve their quality of life in a
similar manner. Nestlé Agricultural Services has used the experience gained by
Nestlé across the world to set up a system of direct and efficient contact with the
farmers. Company veterinarians and agronomists supervise the milk routes and
advise farmers on various issues including proper feed for the herds. Milk storage
facilities have been set up close to the farmers. Veterinary services are provided
free, and medicines provided at wholesale cost. The company assists farmers in
artificial insemination programs for their cattle, provides subsidy and helps them in
procuring loans.For more on Nestlé Agricultural Services
12. Brand Study : Maggi 12
Safe Drinking Water:-
Water is a scarce resource. In India, availability of clean drinking water is a major
concern for many communities. Almost 200 million people do not have access to
clean drinking water. Nestlé India is committed to improving the situation and
believes that the first step is to create awareness in the communities around its
factories. A key focus area of our corporate initiatives is to help provide Clean
Drinking Water and educate children in schools to conserve this scarce resource.
Education and Training:-
Nestlé supports initiatives to create awareness about the right to education and
encourages the communities around its factories to send their children to school.
Nestlé India employees have developed a special play 'Let Us Go to School' for
this purpose. This has been staged amongst the communities around our factories,
and its recordings screened at smaller gatherings along the milk routes.
The Company also recognizes the active role that village women play in adopting
good dairying practices in dairy farms and regularly conduct special programs that
help them. Nestle India supports local schools, helps in the maintenance of public
parks and green belts, and facilitates blood donation camps and health awareness
programs. The key messages of conservation, hygiene, health and wellness are
progressively built into the communities where the Company is present. All these
initiatives strengthen the bond between Nestlé India and the community.
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"Creating Shared Value is a very different approach to corporate social
responsibility (CSR), because it is not focused on meeting a set of standard
external criteria, or on philanthropy. The idea of winners and losers doesn‘t fit this
model of CSR."
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INTRODUCTION TO THE PROJECT
Brand – MAGGI:-
Maggi is an over 100-year-old Nestlé brand of instant soups, stocks, bouillons,
ketchups, sauces, seasonings and instant noodles. It quickly became a pioneer of
industrial food production, aiming at the improvement of the nutrition of worker
families.
Over time the scope of MAGGI has been extended from a predominantly
dehydrated cooking aid brand towards a general savory food brand including many
types of ready meals and also frozen food. This is in line with the fact that people
all over the world are cooking less and less from scratch.
MAGGI BRAND IN INDIA:-
Maggi Comes to India – teething troubles Maggi noodles was launched in India in
theearly1980s. Carlo M.Donati, the present Chairman and
Managing Director of Nestle India Ltd, brought the instant noodle brand to India
during his short stint here in the early eighties. At that time, there was no direct
competition. The first competition came from the ready-to-eat snack segment
which included snacks like samosas, biscuits or maybe peanuts, that were usually
‗the bought out‘ type. The second competition came from the homemade snacks
like pakoras or sandwiches. So there were no specific buy and make snack!
Moreover both competitors had certain drawbacks in comparison. Snacks like
samosas are usually bought out, and outside food is generally
considered unhygienic and unhealthy. The other competitor, ‗homemade‘ snacks
overcame both these problems but had the disadvantage of extended
15. Brand Study : Maggi 15
preparation time at home. Maggi was positioned as the only hygienic home made
snack! Despite this, Nestlé faced difficulties with their sales after the
initial phase. The sole reason being, the positioning of the product with the wrong
target group. Nestle had positioned Maggi as a convenience food product
aimed at the target group of working women who hardly found any time
for cooking. Unfortunately this could not hold the product for very long. In
the course of many market researches and surveys, the firm found that
children were the biggest consumers of Maggi noodles. Quickly they
repositioned it towards the kids segment with various tools of sales promotion like
color pencils, sketch pens, fun books, Maggi clubs which worked wonders
for the brand.
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BRAND STORY
Launched in 5 flavors initially – Masala, chicken, Capsicum, sweet & sour, and
Lasagna –Maggi had to fight hard to be accepted by Indian consumers with their
hard-to-change eating habits. The packaged food market was very small at this
time, Nestle had to promote noodles as a concept, before it could promote
Maggi as a brand. It therefore devised a two-pronged strategy to attract mothers
on the ‗convenience‘ plank and lure kids on the ‗fun‘ plank. Gradually,
the market for instant noodles began to grow. The company also decided to focus
on prom
otions to increase the brand awareness. In the initial years, Nestle promotional
activities for Maggi included schemes offering gifts (such as toys and utensils) in
return for empty noodles pack.
According to analyses the focus on promotion turned out to be the single largest
factor responsible for Maggi‘s rapid acceptance. Nestle‘s Managers
utilized promotions as measured to meet their sales target. Gradually,
sales promotion became a crutch for Maggi noodles sales. Later many
of the Maggi‘s extensions also made considerable use of promotional schemes.
The focus of all Maggi‘s extensions was more on below the line activities rather
than direct communication. In addition to promotional activities, Maggi
associated itself with mainstream television programme and advertised heavily
on kids programme and channels. After its advertisements with taglines like
“mummi bhookh lagi hai,bas do minute” and fast to cook good to eat Maggi‘s
popularity became highly attributed to its ―extremely high appeal to children‖. As a
result, Maggi‘s annual growth reportedly touched 15% during its initial years.
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MAGGI’S BRAND EXTENSION
In order to stretch Maggi‘s brand to include Indian ethnic foods the company tied
up with a Pune based ―Chordia foods‖ to launch pickles under the year 1995. The
company also tied up with Indian foods fermentation (IFF), a Chennai based food
company to market popular south Indian food preparation such as sambher, dosa,
vada and spices in consumer packs in Dec 1995. The company reportedly saw a lot
of untapped potential in the market for ready to use south Indian market.
In 1996, products from these two ventures received lukewarm response from the
market; sales were rather poor in the regions in which they were launched.
Analysts attributed the failure of these Maggi extensions to the fact that Nestlé
seemed to be particularly bad at dealing with traditional Indian product categories.
Maggi noodles performed badly in 1996. Despite slow sales in the previous two
years, Nestlé had set a sales target of 25,000 tonnes for the year. However, Maggi
couldn‘t cross even 14,000 tonnes. Adding to the company woes was the failure of
Maggi Tonight‘s Special, a range of cooking sauces aimed at providing
‗restaurant-like-taste‘ to food cooked at home. The range included offerings such
as Butter Chicken gravy and tomato sauce for pizzas.
Nestlé launched ‗Maggi Macaroni‘ in July 1997. According to analysts, Maggi
Macaroni was launched partly to deal with the growing popularity of competing
noodles brand Top Ramen. Maggi Macaroni was made available in three flavors,
Tomato, Chicken, and Masala. The company expected to repeat the success of
Maggi noodles with Maggi Macaroni. As with most of its product launches, Maggi
Macaroni‘s launch was backed by a multi-media advertisement campaign
including radio, television,
18. Brand Study : Maggi 18
outdoors and print media with the tagline, ‗Tum Roz Baby.
Due to failure Nestlé had to withdraw Maggi Macaroni completely from the
market.
Nestlé had not even recovered from Macaroni‘s dismal performance, when it learnt
to its horror that Knorr had dethroned Maggi as the leader in the soup segment (end
of 1997). The only saving grace for Maggi seemed to its ketchups and sauces,
which were turning out to the ‗rare‘ successful extensions of Maggi. These
products were supported by a popular advertisement campaign for the Maggi Hot
& Sweet sauce brand. These humorous advertisements, featuring actors Pankaj
Kapoor and Javed Jafri, used the tagline, ‗It‘s different.‘ However, during mid-
1997, HLL began promoting its Kissan range of sauces aggressively and launched
various innovative variants in the category.
Nestlé responded with a higher thrust on advertising and different size packs at
different price points. Though Kissan gained market share over the next few years,
Maggi was able to hold on to its own market share. Meanwhile the operational
costs of Maggi noodles had increased considerably, forcing the company to
increase the retail price. By early 1997, the price of a single pack had reached Rs
10. Volumes were still languishing between 13,000-14,000 tonnes..
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PRODUCT PORT FOLIO OF THE BRAND:
“MAGGI”
The product mix of Maggi is divided into various categories defined below. The
company has launched various products under each category as mentioned below.
1. Noodles
Maggi 2-Minute Noodle ( Masala , Chicken, Curry and Tomato)
Maggi Dal Atta Noodles ( Sambhar taste)
Vegetable Atta Maggi Noodles
Maggi Rice Noodles (Lemon Masala, Chilly Chow and Shahi Pulao)
Maggi Cuppa mania (Masala yo, Chilli chow yo)
2. Sauces
Teekha masala
Tomoto chatpat
Imli khata mitha
Tomato ketchup
Hot and sweet
Tomato pudina
Ginger, Garlic & Coriander
Maggi Oriental Chilli Garlic
Ginger, Garlic & Coriander
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3. Maggi Pichko
Tomato
Imli
4. Soups Healthy
Chef Style
- Cream Mushroom
- Sweet Sour Tomato Noodles
- Tangy Tomato Vegetables
Home Style
- Creamy Chicken
- Mixed Vegetable
- Rich Tomato
Chinese Style
- Chinese Hot Sour Chicken
- Chinese Sweet Corn Chicken
- Chinese Sweet Corn Vegetables
- Chinese Hot & Sour Vegetables
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5. Maggi Soup Sanjivni
Amla
Badam
Spinach
Dal
Tomato
6. Maggi Bhuna Masala
Bhuna masala for gravy dishes
Bhuna masala for Vegetable Dal
7. Maggi Magic Cubes
Chicken
Vegetarian masala
8) Maggi Pasta: -
White
Red
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BRAND NAME
Brand name is a Promise
It says 'you know the name, you can trust the promise'. As all promises, it is trusted
only as far as those promises are met. Trust is a critical first step and brands aim to
accelerate that step leveraging the implied promise of the brand. The brand's most
valuable asset is— its name.
A brand name encapsulates all of the content — intellectual and emotional — that
people associate with the product. Names make this process of association easier
than others. With all of the challenges business owners face, it makes sense to use
every advantage at their disposal. Word is, ―a great name is a great start.‖
Maggi: “ Ready to Cook ”
Maggie a synonym for noodles is a well-established product of Switzerland based
Nestle Group. In July 2001, Maggi replaced Nescafe as the company‘s core brand.
It has become the most sought after snack food in recent days. It has a brand value
of Rs.3.7billion. This shows the popularity of this product.
It will be interesting to know the history of such a product and how was the
brand“named”.
Well the history of this brand traces back to the 19 th century when industrial
revolution in Switzerland created jobs for women, who were therefore left with
very little time to prepare meals. Due to this growing problem Swiss Public
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Welfare Society asked a miller named Julius Maggi to create a vegetable food
product that would be quick to prepare and easy to digest. Julius, the son of an
Italian immigrant came up with a formula to bring added taste to meals in
1863,which became popular among the working class families because of their
convenience and nutritional value. In 1890, Julius founded the company society
Anonym pour la Fabrication des Products Alimentative MAGGI (SAF) in
Germany and Austria. In 1934, SAF was taken over by Alimentana. Later in 1947,
Alimention merged with Nestle and Nestle introduced Maggi to the rest of the
world. The formula clicked well & “Maggi” became a brand name. That‘s
precisely what is required in making a product a ―brand‖. The brand has grown to
an estimated 200 crore & contributes to around 10% of Nestle India‘s top line.
It claims to have added value to our life without taking more than "2-Minutes" of
our daily life and that too for last 25 years. In India 'Maggi Noodles'is recognized
as a genre of products known as Instant noodles. Maggi Noodles has literally
revolutionalized the way we cooked & eat food. There was no single food product
available in world that could be cooked in less than "2-Minutes" without much of
recipe. It was a brilliant idea of Nestle Team, which later created a separate market
of Instant Noodles itself. Hardly anyone could think of the revolution brought by a
simple food product in our lives. It is enormous. And even after 25 years of
dominating more than 90% share of market, there is virtually any competition. So
people often say, "There is virtually no room for any new thing in Instant
Noodles". This is exactly what a strong brand name does over the years to the
product.Maggi is just not a food product. It is more than it. It is an original
concept. It is lifestyle. It is a new food habit. It is a great idea. It is the cheapest
24. Brand Study : Maggi 24
branded food item available in market.
"Creating a superb taste needs a vision of adding value to food habits of
people, it is just more than satisfying crave". ―MAGGI‖ is the name that serves
it impeccably. Maggi is the name, which showed the power of marketing. This
brand made noodles a household product.
When many foreign food brands are trying to change Indian consumer's taste,
Maggi bought in a silent revolution. To mark its silver jubilee, Maggi is running a
campaign " Me & Meri Maggi".The name slowly ―attached‖ itself to the
sentiments of Indian consumer's need without disruption. Maggi personifies the
basic principles of understanding consumers, innovating and investing in the
brand.
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BRAND LOGO
A logo is a mathematical element (ideogram, symbol, emblem, icon, sign) that,
together with its logotype (a uniquely set and arranged typeface) forms a trademark
or commercial brand. Typically, a logo's design is for immediate recognition.
The logo is one aspect of a company's commercial brand, or economic or
academic entity, and its shapes, colors, fonts, and images usually are different from
others in a similar market. Logos are also used to identify organizations and other
non-commercial entities.
Today there are many corporations, products, brands, services, agencies and other
entities using an ideogram (sign, icon) or an emblem (symbol) or a combination of
sign and emblem as a logo. As a result, only a few of the thousands of ideograms
people see are recognized without a name.
It is sensible to use an ideogram as a logo, even with the name, if people will not
duly identify it. Currently, the usage of both images (ideograms) and the company
26. Brand Study : Maggi 26
name (logotype) to emphasize the name instead of the supporting graphic portion
and making it unique, by it non-formulaic construction via the designable use of its
letters, colors and any additional graphic elements.
Carlo Donati gave the ―Maggi‖ word to the product range to continue the image of
―healthy and fast to cook‖ food for workingwomen which was introduced by Julius
Maggi Etienne MauriceFirmin Bouisset (September 2, 1859 – 1925) was a
French painter, poster, artist and printmaker who developed and designed the logo
of Maggi
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JINGLES AND TAGLINES
A jingle is a memorable slogan, set to an engaging melody, mainly
broadcast on radio and largely used today on television commercials. It is a
very useful tool used by companies today as far as retention of the product
after the commercial is concerned. Cultivating strong jingle creative can
offer an effective way to cultivate brand ubiquity without crossing the line
of obtrusiveness.
The real power of the jingle is viral. Jingles communicate a broad theme in
a simple enough way that it can be consumed "in the midst" of other media
and activities.
A tag line is a three to seven word phrase that accompanies your logo. It
expresses your company's most important benefits and/or what you want
your customers to remember about working with you. Think of it as the
words you want to linger in your target customer's mind about you and what
you have to offer.
Great tag lines appear to be effortlessly created because they just seem to
flow. In fact, creating and refining one takes time, just like designing a great
logo. The benefits of taking the time to craft a great tag line lie with the tag
line's stickiness. Great tag lines stick in your memory.
Creating a great jingle and distinctive tag line are critical in creating a brand
that provides the perfect image for your company and great ones just might
be memorable enough to give your company the beachfront property in the
minds of your customers that leaves them thinking only of you.
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Effective use of Tag line and jingles by Maggi :-
Maggi has faced lot of hurdles in its journey in India. The basic problem the
brand faced is the Indian Psyche. Indian Palate is not too adventurous in
terms of trying new tastes. So a new product with a new taste that too from
a different culture had a great deal of difficulty in appealing to Indian
market. Initially Nestle tried to position the Noodles in the platform of
convenience targeting the working women. But it found that the sales are
not picking up despite heavy promotion. Research then showed that Kids
were the largest consumers of the brand. Realizing this, Nestle repositioned
the brand towards the kids using sales promotions and smart advertising.
Now Maggi is the number one brand in the noodles.
Maggi was positioned as ‗2-minute noodles‘ with a punch line that said
‗Fast to Cook Good to Eat‘. The jingle ―Mummy bhook lagi, Bas do
Minute, Maggi Maggi Magge‖ quickly grasped the attention of consumers
all over India. This gave the implied understanding to the consumer that it
was a ‗between meals‘ snack. The company could have easily positioned
the product as a meal, either lunch or dinner. But, it chose not to do so,
because the Indian consumer mindset did not accept anything other than
rice or roti as a meal. Hence trying to substitute it with noodles would have
been futile. The firm did not position it as a ‗ready-to-eat‘ meal either, as
the housewife prefers to ‗make‘ a meal for her kids rather than buy it for
them. And if she can make it in two minutes with very little effort, then
obviously it‘s a hit with her. The kids also loved the taste, thus the ‗2-
minute‘ fundacoupled with the ‗yummy taste‘ worked. NIL‘s promotions
positioned the noodles as ―convenience product‖, for mothers and as a
―fun‖ product for children.
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The tag lines such as ―Fast to Cook Good to Eat‖, ―2-minute noodles‖ and
―Taste Bhi, Health Bhi‖ are the strong brand elements of Maggi, which
have helped in building brand equity.
EG:-
Maggi Cuppa Mania
Just add garam paani and carry on jaaani!
Nestle has widened its offering of the Maggi brand of noodles with the
launch of Maggi Cuppa Mania instant noodles. The company hopes that its
instant noodles will be an instant hit with busy executives who are short on
time, and consequently the product has been launched with the tag line Just
add garam paani and carry on jaaani! The product, launched in two
variants ‗Masala Yo !‘ and ‗Chilli Chow Yo!‘ has been packaged with a
disposable fork to make it an even easier snacking option.
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MANAGEMENT STRATEGIES
4Ps EVALUATION:-
Price: -
Considering the price points in the market for maggi, it should
continue to position itself in the Snacks.
Affordable by all income groups
Differentiated packaging
Lower price point strategy
Millipack for Rs.5 – Targetting the lower middle class as well as
those who want to consume in lesser quantity.
Inflation effect on volume than price - Reduction of 100gm pack to
95gm, keeping price as Rs. 10 only
Multi packs at cheaper price per noodles
Healthier products at higher price. Differentiated packaging.
Place: -
Wide distribution network.
Limited penetration in rural areas.
The company has a complex supply chain process.
Target hawkers/roadside eating joints
The distribution network is well spread
Easily available in all kirana stores, retail store etc.
Sales territories, Warehousing system.
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Product: -
Quality
Models and sizes
Packing
Brands
Service
Promotion: -
Nestle also followed up these launches with ‗It‘s different‘ ad
campaigns.
Nestle was focusing their ads based on children's taste and health.
In addition to promotional activities, Maggi associated itself with
mainstream television programme and advertised heavily on kids
programme and channels.
Maggi is now targeting its products at the entire family and not only
kids.
Maggi has recently launched ―MAIN AUR MERI MAGGI‖
campaign in commensuration of 25 years of Maggi in India.
32. Brand Study : Maggi 32
Packaging (Often referred as 5th P):-
Many consumers are not aware of the fact that packaging contributes
substantially to our current standards of living. It‘s state-of-the-art
packaging that has made certain items conveniently available to the
general public and easy to handle. In the past hundred or so years, the
demands producers and consumers place on packaging have developed
significantly. While initially the transportation and protection of goods
were the primary functions served by packaging, today, it also acts as a
brand-defining marketing instrument as well as an innovative and
practical shell with ever-new advantages for consumers
Contemporary 21st century industrialized societies survive on a diet of
the many, highly popular TV cooking series. At the same time, the
number of pre-cooked, easily manageable dishes in which packaging
plays a pivotal role is growing increasingly in retail outlets. Whether
discounter or gourmet store, all retailers know the value of convenience.
And convenience is made possible by sophisticated, market-oriented
packaging solutions, which often merely need to be popped in the oven
or microwave, contents and all, before serving.
Packaging innovations can be seen from two varying perspectives, one
wherein in adds to the basic functionality of the product through
providing additional benefit to the consumers and second would be when
it enables trials and increased usage by virtue of pack size (small).
33. Brand Study : Maggi 33
The ―Expected product benefit‖ is proper packaging to ensure customers
a good quality, fully packed seasoning tastemaker at affordable price.
The beliefs associated with a brand constitute the brand image, and the
customer may have uninformed beliefs which are likely to generate a
negative image about the brand. The marketer must ensure that
consumers have all relevant and correct information about the brand to
facilitate formation of a positive brand image. Certain beliefs developed
are neutral and are more dependent on the situation or circumstances of
purchase or usage ofthe product.
34. Brand Study : Maggi 34
Brand strategy- IMC
It is integration of all marketing tools, approached and resources within a
company which maximizes impact on consumer mind and which results
into maximum profit at minimum cost.
35. Brand Study : Maggi 35
Promotional tools of communication
Initial Strategies of Maggi:-
Maggi has faced lot of hurdles in its journey in india
The basic problem the brand faced is the Indian psyche
Initially Nestle tried to position Maggi in the platform of convenience
targeting the workingwomen. However, the sales of maggi was not
picking up despite of heavy media advertising. To overcome this
Nestle conducted a research. Nestle promotion positioning the maggi
product as a ‗convenience product‘ for mother and as a ‗fun‘ product
for children. The maggi ‗Tagline‖, ‗Fast To Cook Good To Eat‘ was
also in keeping with its positioning. They promoted the product
further by distributing free samples. Giving gifts on return of empty
packets, etc. Effective Tagline Communication.
36. Brand Study : Maggi 36
Different communication media used by Maggi
TV Ads:-
Initially maggi was targeted at the workingwomen and later the upper
middle class kids. Maggi was a sponsor for Hum Log, a popular television
show on Doordarshan, India‘s sole channel in 1984. Maggi is now targeting
its products at the entire family and not only kids. Maggi has recently
launched ―Main Aur Meri Maggi‖ campaign in commensurate of 25yrs of
maggi in India.
Print Ads: -
Maggi does not focus heavily on print media. During its launch since its
initial target audience was mother and kids. Some adv in the print media
were used to highlight the convenience factor of maggi.‘
Recently maggi came out with advertisements in some weekly magazines
for its new atta noodles and rice noodles varients. Maggi rice noodles mania
had the highest column centimeter in print among the istant food category.
Growth in noodles/pasta print advertisement grew by 42% share in 2010.
Maggi‘s expenditure on print media is much lower compared to other
media.
37. Brand Study : Maggi 37
Sales Promotion: -
To introduce new products
To attract new customer and retain the existing ones
To maintain sales of seasonal products
To meet challenge of competition tools
Exchange schemes
Price –Off offer
Scratch and win offer
Discount offered to retailers: -
7%discount on 6-piece pack (56MRP), 5 rupee discount on 8-piece pack
(78MRP). These are promotional schemes given to retailers. Maggi is
coming up with schemes like giving one soup pack with 8-piece pack. In
past company had promotional schemes like 4 piece pack with that of
Rs.36 instead of Rs.40.
Display: -
Large pack sizes at the top with decreasing pack sizes as going downward.
This is because that for a retail outlet the more value is generated large
pack thus they try to project big size at convenience place.
38. Brand Study : Maggi 38
Public Relation: -
The Maggi Club – the children under 14 were invited by press adv and
distribution of leaflets to become a member of maggi club ny sending logos
cut from 5 empty maggi wrappers. Maggi projected it as ―maggi clubbers
are fun lovers‖ and intended to use it as reference group. Benefit offered to
maggi- clubbers are various games like snap safari game, Cap and mask
sets, travel india game, Disney today comic. To obtain each gift the
member has to send 5 wrappers as purchase proof. Some special privileges
were given to regular members time to time like, discounting tickets of
Appughar. Organisation maggi school quizzes and sketching.
Result of PR Activity: -
Getting closer to regular customer boosted the sales. Making valuable
direct marketing database. Recently, again, they have started maggi fan
club. This time it is operating online and they are provided user name and
password.
39. Brand Study : Maggi 39
STPD ANALYSIS
Segmentation: Market Segmentation divides the heterogeneous market into
homogenous groups of customers who share a similar set of needs/wants
and could be satisfied by specific products. Maggi Brand have segmented
the market on the basis of lifestyle and habits of URBAN FAMILIES.
Targeting: Market Targeting refers to evaluating and deciding from
amongst the various alternatives, which segment can be satisfied best by the
company. The Maggi Brand have mainly targeted the Kids, Youth, Office
Goers & Working Woman which falls into the category of ―convenience-
savvy time misers‖ who would like to get something instant and be over
with it quickly.
Positioning: Market Positioning is the act of designing the company‘s
offerings and image to occupy a distinctive place in the minds of the target
market. The goal of positioning is to locate the brand in the minds of
consumers to maximise the potential benefit to the firm. Maggi has
positioned itself in the SNACKS category and not in the meal category
since Indians do not consider noodles as a proper food item. Therefore
Maggi have developed its brand image of instant food products with
positioning statements such as ―2 minutes noodles‖ and ―Easy to cook,
good to eat‖.
40. Brand Study : Maggi 40
Differentiations: Points-of-difference (PODs) are attributes or benefits
consumers strongly associate with a brand, positively evaluate and believe
they could not find to the same extent with a competitive brand. The Maggi
Brand have also differentiated its brand image from its competitors in terms
of taste, flavours and packaging. Maggi have launched wide varieties of
products in different flavors which can attract larger set of customers.
Maggi products are also available in different sizes catering to different
customer needs.
41. Brand Study : Maggi 41
SWOT ANALYSIS
The SWOT analysis of Maggi brand clearly indicates the strengths of
Maggi as a Brand in Indian market. The Brand was found to be a leader in
its category of Noodles, with strong customer loyalty. Intensive distribution
of Maggi as a Brand was seen in urban areas of the country. The major
threats of the brand as shown in the figure below indicates that Maggi has
made several attempts to revamp itself as a ‗Healthy Product‖ but till date
its perseverance towards the tag line is low by the consumers. The brand is
in the growth stage of product life cycle with a strong inclination towards
the maturity stage.
Strengths
Established Family Brand
Strong Global Corporate Brand ( NIL )
Specialization in food processing category marketing and distribution
in Urban
Market leader
Pioneer and Leader so 1st mover advantage in Noodles, Sauce,
Ketchups and Soup market.
Nestle symbolization of warm, family & shelter
Innovative flavours for Indian taste buds
Distribution Channels
42. Brand Study : Maggi 42
Weakness
Generic Brand to Noodles in India
Low rural market presence constraints
Uniform Brand for all food category
Heavily dependent on one flavor
Opportunities
Growing package and canned food market in India by 15% annually.
High brand awareness of Indian consumer
Opportunity to be substitute to other snacks category of food
products.
Unexploited rural market
Increasing number of working youth
Affinity of Indians to Chinese food Health related issues
Threats
Competitors with long history in product category Internationally
like, Heinz Sauce and ketchups of Heinz Indian, Top Ramen in
Noodle and Knorr Soups.
Single product focused competitors like Heinz sauce and Wai Wai
Noodles.
Less Entry Barriers in the Market segment for product category
ITC‘s strong base in Indian Market.
Substitute Product to Product Segment
Competitive pricing
Strong presence of regional competitors
43. Brand Study : Maggi 43
Brand Consumer Prism
BRAND PRISM OF MAGGI
44. Brand Study : Maggi 44
SALES AND MARKETING CHANNEL
Marketing channels
The focus of our market channel analysis is limited to culinary products, as
maggi falls under this product category.
Customer – upper and middle class family
Strategic intent – selling and promotion form the strategic intent for this
distribution channel
Channel Type – Maggi followed a market type channel for its culinary
products
Marketing Channel Strategy: -
A hybrid strategy involving both a push as well as a pull strategy is used by
maggi. The push strategy employed through setting targets at various levels
of the distribution channel and a pull strategy is exercised through
aggressive advertising and in store promotion.
Marketing Channel flows: -
Following are the different marketing flows in Maggi marketing channel
Physical Goods flow
Information Flow
Payment Flow
Promotion Flow
Title Flow
45. Brand Study : Maggi 45
DISTRIBUTION CHANNEL
Physical Good Flow
Nestle has 6 factories across India. From these factories, Maggi are directly
shipped to CFAs (carry and forward Agencies) located in each state. Carry
and forward agencies provided the warehousing facilities that are required
for distribution across the state. The presence of carry and forward agencies
in each state ensures that the taxes, octroi and other state level charges
applied are lower.
The next entity in the channel is the distributer. There are two major types
of distribution.
Distribution Targeting Traditional trade
Distribution targeting modern trade
Distributors Focused on traditional trade deal with
Wholesalers for reaching areas with spares demand
Retailers in area of high demand
Wholesalers distribute Maggi products to smaller stockiest and retailers.
Retailer stores are segmented based on their per week order. There are four
board categories
Super ―A‖ – Supper High Volume retailers
‖A‖ – High volume retailers
―B‖ – Medium volume retailers
―C‖ – Low
46. Brand Study : Maggi 46
Each distributer covers close to 400- 500 retail stores. The product is
shipped from the distributer to the wholesaler or retailer as per the order
taken by the distributer sales men. There is a one day delay between talking
an order and distributing the product.
Modern trade involves retail stores chains. Ex: Big Bazaar, Reliance Fresh
etc. They are serviced Through specially designated distributors. The
number of distributors supplying goods to these major retailers is samller
than that of traditional trade.
47. Brand Study: Maggi 47
MARKET PENETRATION
STRATEGIES
Maggi started with promotional campaigns in the school to see the reaction of
children after eating Maggi.
Started their advertising straight focusing on kids.
Introduced new products like atta noodles dal atta noodles cuppa mania.
Products are made available in different packages like 50,100,200,400 Gms.
Keep on conducting market research to understand changes in market.
Though Maggi has been successful every time, there were times when it faced
challenges. Some of these are:
Sales saw decline in 1990: The Company saw a decline in the sales in 1990.
When the company tried to find out what the reason was, they came to know
that there was some thing wrong with the formula that spoiled the taste. So
the formula was changed from fried base to oiled dried base
Competition increased in noodle segment: When Maggi was enjoying being
the only noodle offering by any company Top ramen entered the market as a
competition. This was a big challenge for Maggi. Though Top Ramen
couldn‘t do well in India.
48. Brand Study : Maggi 48
New product launched in market but failed- Nestle decided to expand its
offerings by offering Dal atta noodles & Sambhar flavor noodles. But these
products were not welcomed by the people the very special taste of Maggi
was still ruling the consumer
Maggi launched some new products: Ketchups, Soups, Taste makers etc. but
they were not successful
49. Brand Study: Maggi 49
TASTE AND PREFERENCES OF CONSUMERS
Health is the flavor of the season. Food companies in India are growing aware of
the increasingly changing consumption trends and taste preferences among the
Indian junta. No surprises, but this is the reason more and more companies are
coming up (or are actually re-marketing) with products that are healthy. Take for
example Coke and Pepsi; both have already started looking into the non-
carbonated drinks category section. Maggi first introduced in the market Maggi
Atta Noodles – which it claimed was a healthy food as it was made of wheat flour
followed by soups.
Nestle India, in an effort to carry on with its trend of providing the Indian
consumers healthy food recently introduced a range of Healthy Soups. The entire
range consists of the following; maggi tomato, mixed vegetable, tomato vegetable,
mushroom, chicken, sweet corn chicken and hot and sour vegetable. The product is
priced at Rs 25 for 70 grams.
Maggi became successful because it understood consumers . The brand never
wanted to change Indian consumer's habit. It did not had ambitions about changing
Indian's breakfast or dinner preferences. What Maggi did was to slowly attach
itself to Indian consumer's need without disruption.
Maggi was also closely watching consumer preferences.When consumers wanted
healthy food, Maggi launched Atta Noodle variants that was healthy . More
importantly this move addressed the concerns of Homemakers. The brand extended
itself to multiple segment
50. Brand Study : Maggi 50
but without diluting the core brand equity.
Maggi over these years have made lot of mistakes. It made mistakes because the
brand was willing to experiment. More importantly the brand learned from those
mistakes and corrected itself.
Maggi also invested heavily in brand building. The campaigns for one of Maggi's
products were always there in the media which kept the brand fresh in the mind of
the consumers. Maggi personifies the basic principles of understanding consumers,
innovating and investing in the brand.
Maggi is one packaged food brand that has only seen its popularity grow in the
past many years and the secret to the success is that instead of trying to change the
food habits of consumers, it has tried to align itself with local tastes and
preferences with the ‗fast to cook and good to eat‘ promise.
To commemorate its successful journey through a quarter of a century in the
world‘s largest consumer market, the brand, last year, launched an innovative
campaign inviting its loyalists to share with it their Maggi stories and promised to
broadcast them to the world at large, thereby, making them the superstars
overnight. Along with television commercials, which aired individual consumer
stories of their lasting memories of Maggi, the brand displayed pictures of these
loyal customers on the Maggi packs. Nestle also introduced a website Me and meri
maggi in for engaging with them.
The company also rewarded its consumers by adding to the Maggi portfolio, that
hitherto had sauces and soups in various flavors, a range of prepared dishes and
cooking aids such as Maggi Bhuna Masala and Maggi Pazzta. So far focussed on
51. Brand Study : Maggi 51
urban consumers, the company also made a pitch for rural consumers by launching
Maggi Rasile Chow noodles at an inviting price of Rs4. Again, local tastes and
recipes have been at the core of all these marketing innovations.
―Creating delight and happiness in everyday meals is not just about providing tasty
food. It is about providing taste and health in a convenient combination,‖ says
Shivani Hegde, general manager, foods.
52. Brand Study : Maggi 52
DEMOGRAPHY AND
PSYCHOGRAPHY OF CONSUMERS
Demography: -
1) Age and sex: people of different age groups consume Maggi products.
Children, teenagers, adults as well as old people consume them. Both
genders male and female consume them.
2) Income: - Maggi products are available at reasonable prices. So the lower,
middle as well as the higher class consume them.
3) Religion and nationality: - Maggi products are famous and are consumed
by people of all religions and nationality.
Psychograph: -
1) Attitude: - Consumers of maggi have a positive attitude towards the
product, which makes it the leader in the market. Maggi dominates the
market.
2) Lifestyle:- Lifestyle determines the way of living of people. It describes
how a consumer leads his life. All consumes Maggi products.
53. Brand Study : Maggi 53
Research Methodology
Sample Size
Number of 50
respondents
Survey Location Pune
Methodology
The research was carried out in the form of a survey. This will include primary
research in addition to secondary research as stated below. The survey research
method will be descriptive research design. Each respondent will be interviewed
through a Questionnaire. The sample will be selected by a simple random sampling
method.
The survey will address the following information area
The objective as spelt out can be elaborated into specific information areas to be
studied.
How do customers perceive Maggi as a stable brand, their perception of
Maggi and how do they associate themselves with Maggi?
Are the consumers aware of Maggi Brand or they associate Maggi with
some other brand?
54. Brand Study : Maggi 54
Do they consider noodle as a healthy product or they are aware of the
company‘s strategy of repositioning it to a healthy product by the launch of
some of the new products?
Which product from the entire basket of Maggi products do the consumers
consider as the best selling product for Maggi and to which the consumers
frequently buy?
Are the consumers willing to accept Maggi brand extensions to some other
products like chocolate, juices, chips etc
55. Brand Study: Maggi 55
DATA COLLECTION PLAN
Data Gathering
This study involves data collection (primary research) from different households in
four different areas Pune (Aund, Market Yard, Warje, Bhandarkar Road)
Literature Review
The research conducted as a part of our study would include Primary as well as
Secondary research. Primary research would include a survey that would be
conducted in selected localities of Pune and nearby areas where the responses of
consumers would be recorded through a designed questionnaire. Secondary
research would include various aspects of Brand management through Internet,
Journals, company reports, expert views etc.
56. Brand Study: Maggi 56
SAMPLE QUESTIONNAIRE FOR
MARKET RESEARCH
Thank you for taking the time to fill in this questionnaire, you will remain anonymous. We need a sample of an
audience to use as an example for our Research Project at College
Q1. Do you purchase ready to eat products available in the market?
a) Yes
b) No
Q 2. What is the brand that comes to your mind when you think of ready to
eat food?
a) Maggi
b) Top Ramen
c) Knorr
d) ITC Sunfeast
Q 3. Are you a consumer of Maggi?
a) Yes
b) No
57. Brand Study : Maggi 57
Q 4. You came to know about Maggi from:
a) Newspapers
b) Radio
c) T.V advertisements
d) Friends
e) Other source, specify ______________
Q5. Do you know which umbrella brand does Maggi fall into?
a) Unilever
b) Kraft
c) Nestle
d) Britannia
Q6. Rank the following Maggi products w.r.t. frequency of purchase with 5
being the highest rank.
a) Noodle
b) Ketchup
c) Soup
d) Masala
e) Cubes
58. Brand Study : Maggi 58
Q7. Do you recall any of the T.V. advertisements of Maggi?
a) Yes
b) No
Q 8. Rank the categories, which Maggi should look in future in order of your
importance:
a) Chocolates
b) Salted Potato Chips
c) Fruit Juices
d) Processed foods (Ready to use pastes, masalas)
e) Others (Please mention)
Q9. Do you perceive Maggi as a healthy product?
a) Yes
b) No
Q10. Are you happy with the current price & packaging size variants of
Maggi Products?
a) Yes
b) No
59. Brand Study : Maggi 59
Q11. How do you perceive Maggi products?
a) Good for health.
b) Ready to eat.
c) Junk food
d) Tasty / Fun eating
60. Brand Study : Maggi 60
QUESTIONNAIRE ANALYSIS
Q1. Do you purchase ready to eat products available in the market?
Yes 50
No 0
Q1
Yes
No
Q 2. What is the brand that comes to your mind when you think of ready to
eat food?
Maggi 41
ITC
Sunfeast
Top Remaen 0
Knorr
Knorr 4
Top Series1
ITC Sunfeast 5 Ramen
Maggi
0 20 40 60
61. Brand Study : Maggi 61
Q3. Are you a consumer of Maggi?
Yes 45
No 4
Q3
Yes
No
Q 4. You came to know about Maggi from:
Newspaper 1
Radio 0
T.V 38
Friends 8
Other 3
Other
Friends
T.V
Series1
Radio
Newspapers
0 10 20 30 40
62. Brand Study : Maggi 62
Q5. Do you know which umbrella brand does Maggi fall into?
Unilever 6
Kraft 1
Nestle 42
Britannia 1
Britannia
Nestle
Series1
Kraft
Unilever
0 10 20 30 40 50
Q6. Rank the following Maggi products w.r.t. Frequency of purchase with 1
being the highest rank?
Noodle 240
Cubes
Ketchup 178
Masala
Soup 153
Soup
Series1
Masala 116 Ketchup
Cubes 64 Noodle
0 100 200 300
63. Brand Study : Maggi 63
Q7. Do you recall any of the T.V. advertisements of Maggi?
Yes 45
N0 5
Yes
No
Q8. Rank the categories, which Maggi should look in future in order of your
importance:
Chocolates 110
others
Salted potato Chips 104
Processed Foods
Fruit Juices 135 Fruit Juices
Series1
Salted Patato Chips
Processed Foods 156
Chocolates
Others 0 0 50 100 150 200
64. Brand Study : Maggi 64
Q9. Do you perceive Maggi as a healthy product?
Yes 24
No 26
Q9
Yes
No
Q10. Are you happy with the current price & packaging size variants of
Maggi Products?
Yes 43
No 7
Yes
No
65. Brand Study : Maggi 65
Q-11How do you perceive Maggi products?
Good For Health 3
Ready To Eat 23
Junk Food 6
Tasty/ Fun Eating 18
25
20
15
10 Series1
5
0
Good for Ready to Junk Food Tasty/Fun
Health Eat Eating
66. Brand Study : Maggi 66
ANALYSIS
Maggi is having the best channel, as the product is easily available at almost each
& every store. Next comes the top ramen which is also established in the market
from long time but brands like Knorr, Sunfeast, Horlicks is not available at stores
& if it is available its not been sold. Pricing has been a very important factor when
it comes to the sales of Maggi products and retailers emphasize on the fact that
customers want a good price as there are competitors coming in the market.
Television is the medium from which people are aware and enlightened about the
brand.
It‘s also been observed that Maggi has the best mind-share among all the brands
that were researched in the project. Also, apart from it being a ready-to-eat product
with fun, Maggi as a brand is perceived as a family product amongst the other
brand which were researched.
67. Brand Study : Maggi 67
SUCCESS FACTORS OF MAGGI
Quick Localization:-
One major factor for Maggi's success was its quick localization. We have been
eating Maggi since our childhood, for about 15 years, we never knew that Maggi
was a foreign brand until we read Wikipedia just before writing this article. How
many times had you seen the wrapper of Maggi Noodles packet? Many times!
Everybody likes reading everything that's written on wrapper; in fact it has become
a hobby that we don't even know about consciously. So Maggi has a simple
presentation of itself to people in India.
Every common Indian knows the tagline of maggi - 2-minute noodles. And Maggi
was famous in the flavor of Masala. Happens to mean spice in India. So to a
common Indian, Maggi Masala sounds very logical and Indian. Never did Maggi
put any fancy English tag lines nor did it endorse its product as a foreign brand
though it could have. It's almost like they hid their real identity of being a foreign
brand simply by not revealing the fact neither in ads nor in the wrapper or
anywhere else
The advertisements that endorsed Maggi in the Television, picture, a small girl and
a boy waiting eagerly for her mom to cook and serve Maggi. Once served, they
happily eat their meal and go to play. To add, there was no hint of foreign hand in
the brand. So they kind of ―Indianized Maggi‖, established as a brand that every
Indian can identify with and buy that product without any hesitation.
68. Brand Study: Maggi 68
CONCLUSION
The food processing business in India is at a nascent stage. Currently, only about
10% of the output is processed and consumed in packaged form thus highlighting
huge potential for expansion and growth. Traditionally, Indians believe in
consuming fresh stuff rather then packaged or frozen, but the trend is changing and
the new fast food generation is slowly changing.
Riding on the success of noodles, Nestle India, tried to make extensions of the
Maggi brand to a number of products like, sauces, ketchups, pickles, soups,
tastemakers and macaroni in the mid-1990s. Unfortunately, the macaroni and
pickles didn‘t pick up as expected. The soups and sauces did somewhat fine,
gathering considerable sales volumes and have a satisfactory presence even today.
‗Maggi Noodles‘ itself faced a bit of difficulty with respect to ‗taste‘, and nearly
lost its position in the minds of Indianconsumers in the late 1990s. When Nestle
changed the formulation of its tastemaker, the ominous packet that came along
with Maggi Noodles, a major chunk of consumers were put-off and sales started
dropping. Also, Maggi‘s competitor ‗TopRamen‘ took advantage of the situation
and started a parallel aggressive campaign to eat into Maggi‘s market share. But
the company quickly realised this and went back into making the original formula
coupled with a free sampling campaign. This helped Maggi to win back its lost
consumers and pushed up its sales volumes again!
69. Brand Study : Maggi 69
Maggi Today The year 2008 saw India leading in worldwide Maggi sales. The
brand has grown to an estimated value of Rs 160-170 crore and contributes at least
8–9% to Nestle India‘s top line. All the same, some FMCG analysts feel that the
brand has not done much to expand the noodles category. Even after 25 years of its
launch, the size of the instant noodles market is yet quite small at Rs 300 crore. But
yes, the parent company, Nestle India Limited has certainly encouraged the brand
to enter into other culinary products.
70. Brand Study : Maggi 70
RECOMMENDATION
After the conducted study following recommendations could be sited for Maggi
Brand.
To gain maximum leverage in terms of profit the company should pay
emphasis on segments with age groups 25-35 and above. Advertising is the
key to success. Targeting these segments will not only enhance the
company‘s profit margins but also it will leverage the brand image of Maggi.
The company should advertise its products by depicting attributes related to
Health like Nutrition values, % of Vitamins, Proteins etc.This would help in
customers perceiving the product as Healthy.
Foray into other food products like chips, chocolates etc under its sole brand
name would not only help in Brand extension but will also enhance Maggi‘s
market share.
FUTURE PLANS:-
Nestlé India‘s objective is to manufacture and market the company‘s
products in such a way so as to create value that can be sustained over the
long term for consumers, shareholders, employees and business partners.
Maggi‘s aims to create value for consumers that can be sustained over the
long term by offering a wide variety of high quality, safe food products at
affordable prices.
The company continuously focuses its efforts to better understand the
changing lifestyles of modern India and anticipate consumer needs in order
to provide convenience, taste, nutrition and wellness through its product .
71. Brand Study : Maggi 71
BIBLIOGRAPHY
Websites:-
www.nestle.in
www.maggi-club.in
www.indianjournalofmarketing.com
www.careerdynamo.com/marketing_journals.html
www.wikipedia.com
Newspapers and Magazines:-
Economic Times – ―Brand Equity Supplement‖
4P‘s of Marketing Magazine
Marketing Today Magazine