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Brand Study : MAGGI

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. 1. Brand Study: Maggi 12012 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. 2. Brand Study: Maggi 2 ACKNOWLEDGMENTWe heartily thank our Project in-charge, Prof. Avinash Murkute,Faculty IIPM,Pune, whose encouragement, guidance and support from the initial to the finallevel enabled us to develop an understanding of the subject. We are grateful forSir‘s contribution towards the execution of our project.Lastly, we offer our regards and blessings to all of those who supported us in anyrespect during the completion of the Research.
  3. 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 2712 Management Strategies 30 4Ps Evaluation Integrated Marketing Communication STPD Analysis SWAT Analysis Brand Prism 13 Sales And Marketing Channel 44
  4. 4. Brand Study : Maggi 414 Distribution Channel 4515 Market Penetration Strategies 4716 Taste And Preferences Of Consumer 4917 Demography and psychograph of consumers 5218 Research Methodology 5319 Data Collecting Plan 5520 Comparative Analysis Based On Questionnaire 6021 Analysis 6521 Success Factors Of Maggi 6622 Conclusion 6823 Recommendation 7024 Bibliography 71
  5. 5. Brand Study: Maggi 5 EXECUTIVE SUMMARYThe report entitled A Study of “Brand Maggi” deals with the study of Maggibrand that was launched in India in the year 1983, by Nestle India Limited, whichbecame synonymous with noodles. This research tries to find awareness ofMaggi& its product line with that of its competitors. The introduction provides thecompany background, operational & other important information provided by thecompany, which would assist in taking the decision for the right brand extensionstrategy for Maggi.
  6. 6. Brand Study: Maggi 6 INTRODUCTIONBackground – Nestle India ltd:-Nestle India Limited (NIL) is the Indian subsidiary of the global FMCG major, NestleSA. Nestle India Ltd. introduced Maggi Brand to the Indian consumers with the launch ofMaggi 2 Minute Noodles, an instant food product, in 1982. With the launch of Magginoodles, Nestle India Ltd. created an entirely new food category - instant noodles - in theIndian packaged food market. Nestlé, which world knows as cautious and conservatorycompany is a Swiss originated 140 years old Multinational. The man at the helm is Swissnational 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 froma merger in 1905 between the Anglo-Swiss Milk Company for milk products establishedin 1866 by the Page Brothers in Cham, Switzerland and the Farine Lactée Henri NestléCompany set up in 1867 by Henri Nestlé to provide an infant food product. Nestlé India‘sbusiness objective and that of its management and employees is to manufacture andmarket the Company‘s products in such a way as to create value that can be sustainedover 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. 7. Brand Study : Maggi 7business into similar and diversified product categories. With an Employee strength ofover 3000 and turnover of US$ 497 million in 2003, Nestle India is one of the leadingcompanies in the FMCG space in India. The company is acknowledged among India‘smost respected companies and among the top Wealth Creators of India.
  8. 8. Brand Study: Maggi 8 THE COMPANYS HISTORYYear 1870 -The Swiss Julius Michaël Johannes Maggi (1846-1912) inherited thefamily business: a mill in Kemptal, near Zurich.Year 1886 - Several women were factory workers, thus the time available forhousework and the preparation of meals was considerably reduced, and workingclass families suffered from poor nutrition. In view of this state of affairs, thedoctor Schuler recommended the wide use of dried vegetables: peas and beans,given their rich nutritive value. Julius Maggi produced appliances for roasting andgrinding these vegetables, to make flour from peas, beans, lentils etc., and enablinghousewives to make a quick nourishing soup.Year 1900 - At the Universal Exhibition, Maggi won several medals and grandprizes. Jules Magi set up home in Paris. The French head office was on the Placede lOpéra, and the factory on the Boulevard Arago. Maggi now had depositories inParis, Berlin, Singen (Germany), Vienna and Bregenz (Austria). A number ofadvertising 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 forNestle and Maggi products in France. Maggi now had eleven factories throughoutthe world.
  9. 9. Brand Study : Maggi 9Year 1982 - Nestle India Ltd. introduced Maggi to the Indian consumers with thelaunch of Maggi 2 Minute Noodles, an instant food product, in 1982. With thelaunch 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 lowfat Bouillons, Bouquet Garni ("a little extra to add taste and give your dishes afestive 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 magnificentsoufflŽ, on the "AFTER" page, the same man holds the Maggi sachet in his handsÉ"The magic formula to a successful soufflé!"
  10. 10. Brand Study: Maggi 10 MANAGEMENT STRUCTURE National Sales Manager Regional Sales ManagerConsumer Service Area Manager System Support EventManager Territory in- System Support Event Manager charge Manager Leader Sales Associates Distributer
  11. 11. Brand Study : Maggi 11 CSR – ACTIVITIESNestlé has been a partner in Indias growth for over nine decades now and has builta very special relationship of trust and commitment with the people of India. TheCompanys activities in India have facilitated direct and indirect employment andprovides livelihood to about one million people including farmers, suppliers ofpackaging materials, services and other goods.Nestlé India manufactures products of truly international quality underinternationally famous brand names such as NESCAFÉ, MAGGI, MILKYBAR,MILO, KIT KAT, BAR-ONE, MILKMAID and NESTEA and in recent years theCompany has also introduced products of daily consumption and use such asNESTLÉ Milk, NESTLÉ SLIM Milk, NESTLÉ Fresh n Natural Dahi andNESTLÉ Jeera Raita.Nestle in the community:-Nestlé India has always focused on long term, sustainable and profitable growthand helped communities around its factories to improve their quality of life in asimilar manner. Nestlé Agricultural Services has used the experience gained byNestlé across the world to set up a system of direct and efficient contact with thefarmers. Company veterinarians and agronomists supervise the milk routes andadvise farmers on various issues including proper feed for the herds. Milk storagefacilities have been set up close to the farmers. Veterinary services are providedfree, and medicines provided at wholesale cost. The company assists farmers inartificial insemination programs for their cattle, provides subsidy and helps them inprocuring loans.For more on Nestlé Agricultural Services
  12. 12. Brand Study : Maggi 12Safe Drinking Water:-Water is a scarce resource. In India, availability of clean drinking water is a majorconcern for many communities. Almost 200 million people do not have access toclean drinking water. Nestlé India is committed to improving the situation andbelieves that the first step is to create awareness in the communities around itsfactories. A key focus area of our corporate initiatives is to help provide CleanDrinking 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 andencourages the communities around its factories to send their children to school.Nestlé India employees have developed a special play Let Us Go to School forthis 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 adoptinggood dairying practices in dairy farms and regularly conduct special programs thathelp them. Nestle India supports local schools, helps in the maintenance of publicparks and green belts, and facilitates blood donation camps and health awarenessprograms. The key messages of conservation, hygiene, health and wellness areprogressively built into the communities where the Company is present. All theseinitiatives strengthen the bond between Nestlé India and the community.
  13. 13. Brand Study : Maggi 13"Creating Shared Value is a very different approach to corporate socialresponsibility (CSR), because it is not focused on meeting a set of standardexternal criteria, or on philanthropy. The idea of winners and losers doesn‘t fit thismodel of CSR."
  14. 14. Brand Study : Maggi 14 INTRODUCTION TO THE PROJECTBrand – 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 ofindustrial food production, aiming at the improvement of the nutrition of workerfamilies.Over time the scope of MAGGI has been extended from a predominantlydehydrated cooking aid brand towards a general savory food brand including manytypes of ready meals and also frozen food. This is in line with the fact that peopleall 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 intheearly1980s. Carlo M.Donati, the present Chairman andManaging Director of Nestle India Ltd, brought the instant noodle brand to Indiaduring his short stint here in the early eighties. At that time, there was no directcompetition. The first competition came from the ready-to-eat snack segmentwhich included snacks like samosas, biscuits or maybe peanuts, that were usually‗the bought out‘ type. The second competition came from the homemade snackslike pakoras or sandwiches. So there were no specific buy and make snack!Moreover both competitors had certain drawbacks in comparison. Snacks likesamosas are usually bought out, and outside food is generallyconsidered unhygienic and unhealthy. The other competitor, ‗homemade‘ snacksovercame both these problems but had the disadvantage of extended
  15. 15. Brand Study : Maggi 15preparation time at home. Maggi was positioned as the only hygienic home madesnack! Despite this, Nestlé faced difficulties with their sales after theinitial phase. The sole reason being, the positioning of the product with the wrongtarget group. Nestle had positioned Maggi as a convenience food productaimed at the target group of working women who hardly found any timefor cooking. Unfortunately this could not hold the product for very long. Inthe course of many market researches and surveys, the firm found thatchildren were the biggest consumers of Maggi noodles. Quickly theyrepositioned it towards the kids segment with various tools of sales promotion likecolor pencils, sketch pens, fun books, Maggi clubs which worked wondersfor the brand.
  16. 16. Brand Study : Maggi 16 BRAND STORYLaunched in 5 flavors initially – Masala, chicken, Capsicum, sweet & sour, andLasagna –Maggi had to fight hard to be accepted by Indian consumers with theirhard-to-change eating habits. The packaged food market was very small at thistime, Nestle had to promote noodles as a concept, before it could promoteMaggi as a brand. It therefore devised a two-pronged strategy to attract motherson the ‗convenience‘ plank and lure kids on the ‗fun‘ plank. Gradually,the market for instant noodles began to grow. The company also decided to focuson promotions to increase the brand awareness. In the initial years, Nestle promotionalactivities for Maggi included schemes offering gifts (such as toys and utensils) inreturn for empty noodles pack.According to analyses the focus on promotion turned out to be the single largestfactor responsible for Maggi‘s rapid acceptance. Nestle‘s Managersutilized promotions as measured to meet their sales target. Gradually,sales promotion became a crutch for Maggi noodles sales. Later manyof 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 ratherthan direct communication. In addition to promotional activities, Maggiassociated itself with mainstream television programme and advertised heavilyon 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‘spopularity became highly attributed to its ―extremely high appeal to children‖. As aresult, Maggi‘s annual growth reportedly touched 15% during its initial years.
  17. 17. Brand Study: Maggi 17 MAGGI’S BRAND EXTENSIONIn order to stretch Maggi‘s brand to include Indian ethnic foods the company tiedup with a Pune based ―Chordia foods‖ to launch pickles under the year 1995. Thecompany also tied up with Indian foods fermentation (IFF), a Chennai based foodcompany 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 lotof untapped potential in the market for ready to use south Indian market.In 1996, products from these two ventures received lukewarm response from themarket; sales were rather poor in the regions in which they were launched.Analysts attributed the failure of these Maggi extensions to the fact that Nestléseemed to be particularly bad at dealing with traditional Indian product categories.Maggi noodles performed badly in 1996. Despite slow sales in the previous twoyears, Nestlé had set a sales target of 25,000 tonnes for the year. However, Maggicouldn‘t cross even 14,000 tonnes. Adding to the company woes was the failure ofMaggi Tonight‘s Special, a range of cooking sauces aimed at providing‗restaurant-like-taste‘ to food cooked at home. The range included offerings suchas Butter Chicken gravy and tomato sauce for pizzas.Nestlé launched ‗Maggi Macaroni‘ in July 1997. According to analysts, MaggiMacaroni was launched partly to deal with the growing popularity of competingnoodles brand Top Ramen. Maggi Macaroni was made available in three flavors,Tomato, Chicken, and Masala. The company expected to repeat the success ofMaggi noodles with Maggi Macaroni. As with most of its product launches, MaggiMacaroni‘s launch was backed by a multi-media advertisement campaignincluding radio, television,
  18. 18. Brand Study : Maggi 18outdoors and print media with the tagline, ‗Tum Roz Baby.Due to failure Nestlé had to withdraw Maggi Macaroni completely from themarket.Nestlé had not even recovered from Macaroni‘s dismal performance, when it learntto its horror that Knorr had dethroned Maggi as the leader in the soup segment (endof 1997). The only saving grace for Maggi seemed to its ketchups and sauces,which were turning out to the ‗rare‘ successful extensions of Maggi. Theseproducts were supported by a popular advertisement campaign for the Maggi Hot& Sweet sauce brand. These humorous advertisements, featuring actors PankajKapoor and Javed Jafri, used the tagline, ‗It‘s different.‘ However, during mid-1997, HLL began promoting its Kissan range of sauces aggressively and launchedvarious innovative variants in the category.Nestlé responded with a higher thrust on advertising and different size packs atdifferent 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 operationalcosts of Maggi noodles had increased considerably, forcing the company toincrease the retail price. By early 1997, the price of a single pack had reached Rs10. Volumes were still languishing between 13,000-14,000 tonnes..
  19. 19. Brand Study : Maggi 19 PRODUCT PORT FOLIO OF THE BRAND: “MAGGI”The product mix of Maggi is divided into various categories defined below. Thecompany 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
  20. 20. Brand Study : Maggi 203. Maggi Pichko Tomato Imli4. 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
  21. 21. Brand Study : Maggi 215. Maggi Soup Sanjivni Amla Badam Spinach Dal Tomato6. Maggi Bhuna Masala Bhuna masala for gravy dishes Bhuna masala for Vegetable Dal7. Maggi Magic Cubes Chicken Vegetarian masala8) Maggi Pasta: - White Red
  22. 22. Brand Study : Maggi 22 BRAND NAMEBrand name is a PromiseIt says you know the name, you can trust the promise. As all promises, it is trustedonly as far as those promises are met. Trust is a critical first step and brands aim toaccelerate that step leveraging the implied promise of the brand. The brands mostvaluable asset is— its name.A brand name encapsulates all of the content — intellectual and emotional — thatpeople associate with the product. Names make this process of association easierthan others. With all of the challenges business owners face, it makes sense to useevery 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 basedNestle 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 valueof 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 thebrand“named”.Well the history of this brand traces back to the 19 th century when industrialrevolution in Switzerland created jobs for women, who were therefore left withvery little time to prepare meals. Due to this growing problem Swiss Public
  23. 23. Brand Study : Maggi 23Welfare Society asked a miller named Julius Maggi to create a vegetable foodproduct that would be quick to prepare and easy to digest. Julius, the son of anItalian immigrant came up with a formula to bring added taste to meals in1863,which became popular among the working class families because of theirconvenience and nutritional value. In 1890, Julius founded the company societyAnonym pour la Fabrication des Products Alimentative MAGGI (SAF) inGermany 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 theworld. The formula clicked well & “Maggi” became a brand name. That‘sprecisely what is required in making a product a ―brand‖. The brand has grown toan 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" ofour daily life and that too for last 25 years. In India Maggi Noodlesis recognizedas a genre of products known as Instant noodles. Maggi Noodles has literallyrevolutionalized the way we cooked & eat food. There was no single food productavailable in world that could be cooked in less than "2-Minutes" without much ofrecipe. It was a brilliant idea of Nestle Team, which later created a separate marketof Instant Noodles itself. Hardly anyone could think of the revolution brought by asimple food product in our lives. It is enormous. And even after 25 years ofdominating more than 90% share of market, there is virtually any competition. Sopeople often say, "There is virtually no room for any new thing in InstantNoodles". This is exactly what a strong brand name does over the years to theproduct.Maggi is just not a food product. It is more than it. It is an originalconcept. It is lifestyle. It is a new food habit. It is a great idea. It is the cheapest
  24. 24. Brand Study : Maggi 24branded food item available in market."Creating a superb taste needs a vision of adding value to food habits ofpeople, it is just more than satisfying crave". ―MAGGI‖ is the name that servesit impeccably. Maggi is the name, which showed the power of marketing. Thisbrand made noodles a household product.When many foreign food brands are trying to change Indian consumers taste,Maggi bought in a silent revolution. To mark its silver jubilee, Maggi is running acampaign " Me & Meri Maggi".The name slowly ―attached‖ itself to thesentiments of Indian consumers need without disruption. Maggi personifies thebasic principles of understanding consumers, innovating and investing in thebrand.
  25. 25. Brand Study : Maggi 25 BRAND LOGOA logo is a mathematical element (ideogram, symbol, emblem, icon, sign) that,together with its logotype (a uniquely set and arranged typeface) forms a trademarkor commercial brand. Typically, a logos design is for immediate recognition.The logo is one aspect of a companys commercial brand, or economic oracademic entity, and its shapes, colors, fonts, and images usually are different fromothers in a similar market. Logos are also used to identify organizations and othernon-commercial entities.Today there are many corporations, products, brands, services, agencies and otherentities using an ideogram (sign, icon) or an emblem (symbol) or a combination ofsign and emblem as a logo. As a result, only a few of the thousands of ideogramspeople see are recognized without a name.It is sensible to use an ideogram as a logo, even with the name, if people will notduly identify it. Currently, the usage of both images (ideograms) and the company
  26. 26. Brand Study : Maggi 26name (logotype) to emphasize the name instead of the supporting graphic portionand making it unique, by it non-formulaic construction via the designable use of itsletters, 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 JuliusMaggi Etienne MauriceFirmin Bouisset (September 2, 1859 – 1925) was aFrench painter, poster, artist and printmaker who developed and designed the logoof Maggi
  27. 27. Brand Study : Maggi 27 JINGLES AND TAGLINESA jingle is a memorable slogan, set to an engaging melody, mainlybroadcast on radio and largely used today on television commercials. It is avery useful tool used by companies today as far as retention of the productafter the commercial is concerned. Cultivating strong jingle creative canoffer an effective way to cultivate brand ubiquity without crossing the lineof obtrusiveness.The real power of the jingle is viral. Jingles communicate a broad theme ina simple enough way that it can be consumed "in the midst" of other mediaand activities.A tag line is a three to seven word phrase that accompanies your logo. Itexpresses your companys most important benefits and/or what you wantyour customers to remember about working with you. Think of it as thewords you want to linger in your target customers mind about you and whatyou have to offer.Great tag lines appear to be effortlessly created because they just seem toflow. In fact, creating and refining one takes time, just like designing a greatlogo. The benefits of taking the time to craft a great tag line lie with the taglines stickiness. Great tag lines stick in your memory.Creating a great jingle and distinctive tag line are critical in creating a brandthat provides the perfect image for your company and great ones just mightbe memorable enough to give your company the beachfront property in theminds of your customers that leaves them thinking only of you.
  28. 28. Brand Study : Maggi 28Effective use of Tag line and jingles by Maggi :-Maggi has faced lot of hurdles in its journey in India. The basic problem thebrand faced is the Indian Psyche. Indian Palate is not too adventurous interms of trying new tastes. So a new product with a new taste that too froma different culture had a great deal of difficulty in appealing to Indianmarket. Initially Nestle tried to position the Noodles in the platform ofconvenience targeting the working women. But it found that the sales arenot picking up despite heavy promotion. Research then showed that Kidswere the largest consumers of the brand. Realizing this, Nestle repositionedthe 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 doMinute, Maggi Maggi Magge‖ quickly grasped the attention of consumersall over India. This gave the implied understanding to the consumer that itwas a ‗between meals‘ snack. The company could have easily positionedthe 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 thanrice or roti as a meal. Hence trying to substitute it with noodles would havebeen futile. The firm did not position it as a ‗ready-to-eat‘ meal either, asthe housewife prefers to ‗make‘ a meal for her kids rather than buy it forthem. And if she can make it in two minutes with very little effort, thenobviously it‘s a hit with her. The kids also loved the taste, thus the ‗2-minute‘ fundacoupled with the ‗yummy taste‘ worked. NIL‘s promotionspositioned the noodles as ―convenience product‖, for mothers and as a―fun‖ product for children.
  29. 29. Brand Study : Maggi 29The 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, whichhave 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 thelaunch of Maggi Cuppa Mania instant noodles. The company hopes that itsinstant noodles will be an instant hit with busy executives who are short ontime, and consequently the product has been launched with the tag line Justadd garam paani and carry on jaaani! The product, launched in twovariants ‗Masala Yo !‘ and ‗Chilli Chow Yo!‘ has been packaged with adisposable fork to make it an even easier snacking option.
  30. 30. Brand Study : Maggi 30 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.
  31. 31. Brand Study : Maggi 31Product: - Quality Models and sizes Packing Brands ServicePromotion: - Nestle also followed up these launches with ‗It‘s different‘ ad campaigns. Nestle was focusing their ads based on childrens 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. 32. Brand Study : Maggi 32Packaging (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. 33. Brand Study : Maggi 33The ―Expected product benefit‖ is proper packaging to ensure customersa good quality, fully packed seasoning tastemaker at affordable price.The beliefs associated with a brand constitute the brand image, and thecustomer may have uninformed beliefs which are likely to generate anegative image about the brand. The marketer must ensure thatconsumers have all relevant and correct information about the brand tofacilitate formation of a positive brand image. Certain beliefs developedare neutral and are more dependent on the situation or circumstances ofpurchase or usage ofthe product.
  34. 34. Brand Study : Maggi 34 Brand strategy- IMCIt is integration of all marketing tools, approached and resources within acompany which maximizes impact on consumer mind and which resultsinto maximum profit at minimum cost.
  35. 35. Brand Study : Maggi 35Promotional tools of communicationInitial 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. 36. Brand Study : Maggi 36Different communication media used by MaggiTV Ads:-Initially maggi was targeted at the workingwomen and later the uppermiddle class kids. Maggi was a sponsor for Hum Log, a popular televisionshow on Doordarshan, India‘s sole channel in 1984. Maggi is now targetingits products at the entire family and not only kids. Maggi has recentlylaunched ―Main Aur Meri Maggi‖ campaign in commensurate of 25yrs ofmaggi in India.Print Ads: -Maggi does not focus heavily on print media. During its launch since itsinitial target audience was mother and kids. Some adv in the print mediawere used to highlight the convenience factor of maggi.‘Recently maggi came out with advertisements in some weekly magazinesfor its new atta noodles and rice noodles varients. Maggi rice noodles maniahad 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 othermedia.
  37. 37. Brand Study : Maggi 37Sales 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 offerDiscount 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 iscoming up with schemes like giving one soup pack with 8-piece pack. Inpast company had promotional schemes like 4 piece pack with that ofRs.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 largepack thus they try to project big size at convenience place.
  38. 38. Brand Study : Maggi 38Public Relation: -The Maggi Club – the children under 14 were invited by press adv anddistribution of leaflets to become a member of maggi club ny sending logoscut from 5 empty maggi wrappers. Maggi projected it as ―maggi clubbersare fun lovers‖ and intended to use it as reference group. Benefit offered tomaggi- clubbers are various games like snap safari game, Cap and masksets, travel india game, Disney today comic. To obtain each gift themember has to send 5 wrappers as purchase proof. Some special privilegeswere given to regular members time to time like, discounting tickets ofAppughar. Organisation maggi school quizzes and sketching.Result of PR Activity: -Getting closer to regular customer boosted the sales. Making valuabledirect marketing database. Recently, again, they have started maggi fanclub. This time it is operating online and they are provided user name andpassword.
  39. 39. Brand Study : Maggi 39 STPD ANALYSISSegmentation: Market Segmentation divides the heterogeneous market intohomogenous groups of customers who share a similar set of needs/wantsand could be satisfied by specific products. Maggi Brand have segmentedthe market on the basis of lifestyle and habits of URBAN FAMILIES.Targeting: Market Targeting refers to evaluating and deciding fromamongst the various alternatives, which segment can be satisfied best by thecompany. The Maggi Brand have mainly targeted the Kids, Youth, OfficeGoers & Working Woman which falls into the category of ―convenience-savvy time misers‖ who would like to get something instant and be overwith it quickly.Positioning: Market Positioning is the act of designing the company‘sofferings and image to occupy a distinctive place in the minds of the targetmarket. The goal of positioning is to locate the brand in the minds ofconsumers to maximise the potential benefit to the firm. Maggi haspositioned itself in the SNACKS category and not in the meal categorysince Indians do not consider noodles as a proper food item. ThereforeMaggi have developed its brand image of instant food products withpositioning statements such as ―2 minutes noodles‖ and ―Easy to cook,good to eat‖.
  40. 40. Brand Study : Maggi 40Differentiations: Points-of-difference (PODs) are attributes or benefitsconsumers strongly associate with a brand, positively evaluate and believethey could not find to the same extent with a competitive brand. The MaggiBrand have also differentiated its brand image from its competitors in termsof taste, flavours and packaging. Maggi have launched wide varieties ofproducts in different flavors which can attract larger set of customers.Maggi products are also available in different sizes catering to differentcustomer needs.
  41. 41. Brand Study : Maggi 41 SWOT ANALYSISThe SWOT analysis of Maggi brand clearly indicates the strengths ofMaggi as a Brand in Indian market. The Brand was found to be a leader inits category of Noodles, with strong customer loyalty. Intensive distributionof Maggi as a Brand was seen in urban areas of the country. The majorthreats of the brand as shown in the figure below indicates that Maggi hasmade several attempts to revamp itself as a ‗Healthy Product‖ but till dateits perseverance towards the tag line is low by the consumers. The brand isin the growth stage of product life cycle with a strong inclination towardsthe 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. 42. Brand Study : Maggi 42Weakness Generic Brand to Noodles in India Low rural market presence constraints Uniform Brand for all food category Heavily dependent on one flavorOpportunities 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 issuesThreats 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. 43. Brand Study : Maggi 43Brand Consumer Prism BRAND PRISM OF MAGGI
  44. 44. Brand Study : Maggi 44SALES AND MARKETING CHANNELMarketing channelsThe focus of our market channel analysis is limited to culinary products, asmaggi falls under this product category.Customer – upper and middle class familyStrategic intent – selling and promotion form the strategic intent for thisdistribution channelChannel Type – Maggi followed a market type channel for its culinaryproductsMarketing Channel Strategy: -A hybrid strategy involving both a push as well as a pull strategy is used bymaggi. The push strategy employed through setting targets at various levelsof the distribution channel and a pull strategy is exercised throughaggressive 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. 45. Brand Study : Maggi 45 DISTRIBUTION CHANNELPhysical Good FlowNestle has 6 factories across India. From these factories, Maggi are directlyshipped to CFAs (carry and forward Agencies) located in each state. Carryand forward agencies provided the warehousing facilities that are requiredfor distribution across the state. The presence of carry and forward agenciesin each state ensures that the taxes, octroi and other state level chargesapplied are lower.The next entity in the channel is the distributer. There are two major typesof distribution. Distribution Targeting Traditional trade Distribution targeting modern tradeDistributors Focused on traditional trade deal with Wholesalers for reaching areas with spares demand Retailers in area of high demandWholesalers distribute Maggi products to smaller stockiest and retailers.Retailer stores are segmented based on their per week order. There are fourboard categories Super ―A‖ – Supper High Volume retailers ‖A‖ – High volume retailers ―B‖ – Medium volume retailers ―C‖ – Low
  46. 46. Brand Study : Maggi 46Each distributer covers close to 400- 500 retail stores. The product isshipped from the distributer to the wholesaler or retailer as per the ordertaken by the distributer sales men. There is a one day delay between talkingan order and distributing the product.Modern trade involves retail stores chains. Ex: Big Bazaar, Reliance Freshetc. They are serviced Through specially designated distributors. Thenumber of distributors supplying goods to these major retailers is samllerthan that of traditional trade.
  47. 47. Brand Study: Maggi 47 MARKET PENETRATION STRATEGIESMaggi started with promotional campaigns in the school to see the reaction ofchildren 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 facedchallenges. 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. 48. Brand Study : Maggi 48New product launched in market but failed- Nestle decided to expand itsofferings by offering Dal atta noodles & Sambhar flavor noodles. But theseproducts were not welcomed by the people the very special taste of Maggiwas still ruling the consumerMaggi launched some new products: Ketchups, Soups, Taste makers etc. butthey were not successful
  49. 49. Brand Study: Maggi 49 TASTE AND PREFERENCES OF CONSUMERSHealth is the flavor of the season. Food companies in India are growing aware ofthe increasingly changing consumption trends and taste preferences among theIndian junta. No surprises, but this is the reason more and more companies arecoming up (or are actually re-marketing) with products that are healthy. Take forexample Coke and Pepsi; both have already started looking into the non-carbonated drinks category section. Maggi first introduced in the market MaggiAtta Noodles – which it claimed was a healthy food as it was made of wheat flourfollowed by soups.Nestle India, in an effort to carry on with its trend of providing the Indianconsumers healthy food recently introduced a range of Healthy Soups. The entirerange consists of the following; maggi tomato, mixed vegetable, tomato vegetable,mushroom, chicken, sweet corn chicken and hot and sour vegetable. The product ispriced at Rs 25 for 70 grams.Maggi became successful because it understood consumers . The brand neverwanted to change Indian consumers habit. It did not had ambitions about changingIndians breakfast or dinner preferences. What Maggi did was to slowly attachitself to Indian consumers need without disruption.Maggi was also closely watching consumer preferences.When consumers wantedhealthy food, Maggi launched Atta Noodle variants that was healthy . Moreimportantly this move addressed the concerns of Homemakers. The brand extendeditself to multiple segment
  50. 50. Brand Study : Maggi 50but without diluting the core brand equity.Maggi over these years have made lot of mistakes. It made mistakes because thebrand was willing to experiment. More importantly the brand learned from thosemistakes and corrected itself.Maggi also invested heavily in brand building. The campaigns for one of Maggisproducts were always there in the media which kept the brand fresh in the mind ofthe 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 thepast many years and the secret to the success is that instead of trying to change thefood habits of consumers, it has tried to align itself with local tastes andpreferences with the ‗fast to cook and good to eat‘ promise.To commemorate its successful journey through a quarter of a century in theworld‘s largest consumer market, the brand, last year, launched an innovativecampaign inviting its loyalists to share with it their Maggi stories and promised tobroadcast them to the world at large, thereby, making them the superstarsovernight. Along with television commercials, which aired individual consumerstories of their lasting memories of Maggi, the brand displayed pictures of theseloyal customers on the Maggi packs. Nestle also introduced a website Me and merimaggi in for engaging with them.The company also rewarded its consumers by adding to the Maggi portfolio, thathitherto had sauces and soups in various flavors, a range of prepared dishes andcooking aids such as Maggi Bhuna Masala and Maggi Pazzta. So far focussed on
  51. 51. Brand Study : Maggi 51urban consumers, the company also made a pitch for rural consumers by launchingMaggi Rasile Chow noodles at an inviting price of Rs4. Again, local tastes andrecipes have been at the core of all these marketing innovations.―Creating delight and happiness in everyday meals is not just about providing tastyfood. It is about providing taste and health in a convenient combination,‖ saysShivani Hegde, general manager, foods.
  52. 52. Brand Study : Maggi 52 DEMOGRAPHY AND PSYCHOGRAPHY OF CONSUMERSDemography: - 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. 53. Brand Study : Maggi 53 Research MethodologySample Size Number of 50 respondents Survey Location PuneMethodologyThe research was carried out in the form of a survey. This will include primaryresearch in addition to secondary research as stated below. The survey researchmethod will be descriptive research design. Each respondent will be interviewedthrough a Questionnaire. The sample will be selected by a simple random samplingmethod.The survey will address the following information areaThe objective as spelt out can be elaborated into specific information areas to bestudied. 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. 54. Brand Study : Maggi 54Do they consider noodle as a healthy product or they are aware of thecompany‘s strategy of repositioning it to a healthy product by the launch ofsome of the new products?Which product from the entire basket of Maggi products do the consumersconsider as the best selling product for Maggi and to which the consumersfrequently buy?Are the consumers willing to accept Maggi brand extensions to some otherproducts like chocolate, juices, chips etc
  55. 55. Brand Study: Maggi 55 DATA COLLECTION PLANData GatheringThis study involves data collection (primary research) from different households infour different areas Pune (Aund, Market Yard, Warje, Bhandarkar Road)Literature ReviewThe research conducted as a part of our study would include Primary as well asSecondary research. Primary research would include a survey that would beconducted in selected localities of Pune and nearby areas where the responses ofconsumers would be recorded through a designed questionnaire. Secondaryresearch would include various aspects of Brand management through Internet,Journals, company reports, expert views etc.
  56. 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 CollegeQ1. Do you purchase ready to eat products available in the market? a) Yes b) NoQ 2. What is the brand that comes to your mind when you think of ready toeat food? a) Maggi b) Top Ramen c) Knorr d) ITC SunfeastQ 3. Are you a consumer of Maggi? a) Yes b) No
  57. 57. Brand Study : Maggi 57Q 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) BritanniaQ6. Rank the following Maggi products w.r.t. frequency of purchase with 5being the highest rank. a) Noodle b) Ketchup c) Soup d) Masala e) Cubes
  58. 58. Brand Study : Maggi 58Q7. Do you recall any of the T.V. advertisements of Maggi? a) Yes b) NoQ 8. Rank the categories, which Maggi should look in future in order of yourimportance: 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) NoQ10. Are you happy with the current price & packaging size variants ofMaggi Products? a) Yes b) No
  59. 59. Brand Study : Maggi 59Q11. How do you perceive Maggi products? a) Good for health. b) Ready to eat. c) Junk food d) Tasty / Fun eating
  60. 60. Brand Study : Maggi 60 QUESTIONNAIRE ANALYSISQ1. Do you purchase ready to eat products available in the market? Yes 50 No 0 Q1 Yes NoQ 2. What is the brand that comes to your mind when you think of ready toeat food?Maggi 41 ITC SunfeastTop Remaen 0 KnorrKnorr 4 Top Series1ITC Sunfeast 5 Ramen Maggi 0 20 40 60
  61. 61. Brand Study : Maggi 61Q3. Are you a consumer of Maggi? Yes 45 No 4 Q3 Yes NoQ 4. You came to know about Maggi from:Newspaper 1Radio 0T.V 38Friends 8Other 3 Other Friends T.V Series1 Radio Newspapers 0 10 20 30 40
  62. 62. Brand Study : Maggi 62Q5. Do you know which umbrella brand does Maggi fall into?Unilever 6Kraft 1Nestle 42Britannia 1 Britannia Nestle Series1 Kraft Unilever 0 10 20 30 40 50Q6. Rank the following Maggi products w.r.t. Frequency of purchase with 1being the highest rank?Noodle 240 CubesKetchup 178 MasalaSoup 153 Soup Series1Masala 116 KetchupCubes 64 Noodle 0 100 200 300
  63. 63. Brand Study : Maggi 63Q7. Do you recall any of the T.V. advertisements of Maggi?Yes 45N0 5 Yes NoQ8. Rank the categories, which Maggi should look in future in order of yourimportance:Chocolates 110 othersSalted potato Chips 104 Processed FoodsFruit Juices 135 Fruit Juices Series1 Salted Patato ChipsProcessed Foods 156 ChocolatesOthers 0 0 50 100 150 200
  64. 64. Brand Study : Maggi 64Q9. Do you perceive Maggi as a healthy product? Yes 24 No 26 Q9 Yes NoQ10. Are you happy with the current price & packaging size variants ofMaggi Products?Yes 43No 7 Yes No
  65. 65. Brand Study : Maggi 65Q-11How do you perceive Maggi products?Good For Health 3Ready To Eat 23Junk Food 6Tasty/ Fun Eating 1825201510 Series1 5 0 Good for Ready to Junk Food Tasty/Fun Health Eat Eating
  66. 66. Brand Study : Maggi 66 ANALYSISMaggi 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 marketfrom 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 whenit comes to the sales of Maggi products and retailers emphasize on the fact thatcustomers want a good price as there are competitors coming in the market.Television is the medium from which people are aware and enlightened about thebrand.It‘s also been observed that Maggi has the best mind-share among all the brandsthat were researched in the project. Also, apart from it being a ready-to-eat productwith fun, Maggi as a brand is perceived as a family product amongst the otherbrand which were researched.
  67. 67. Brand Study : Maggi 67 SUCCESS FACTORS OF MAGGIQuick Localization:-One major factor for Maggis success was its quick localization. We have beeneating Maggi since our childhood, for about 15 years, we never knew that Maggiwas a foreign brand until we read Wikipedia just before writing this article. Howmany times had you seen the wrapper of Maggi Noodles packet? Many times!Everybody likes reading everything thats written on wrapper; in fact it has becomea hobby that we dont even know about consciously. So Maggi has a simplepresentation of itself to people in India.Every common Indian knows the tagline of maggi - 2-minute noodles. And Maggiwas famous in the flavor of Masala. Happens to mean spice in India. So to acommon Indian, Maggi Masala sounds very logical and Indian. Never did Maggiput any fancy English tag lines nor did it endorse its product as a foreign brandthough it could have. Its almost like they hid their real identity of being a foreignbrand simply by not revealing the fact neither in ads nor in the wrapper oranywhere elseThe advertisements that endorsed Maggi in the Television, picture, a small girl anda boy waiting eagerly for her mom to cook and serve Maggi. Once served, theyhappily eat their meal and go to play. To add, there was no hint of foreign hand inthe brand. So they kind of ―Indianized Maggi‖, established as a brand that everyIndian can identify with and buy that product without any hesitation.
  68. 68. Brand Study: Maggi 68 CONCLUSIONThe food processing business in India is at a nascent stage. Currently, only about10% of the output is processed and consumed in packaged form thus highlightinghuge potential for expansion and growth. Traditionally, Indians believe inconsuming fresh stuff rather then packaged or frozen, but the trend is changing andthe new fast food generation is slowly changing.Riding on the success of noodles, Nestle India, tried to make extensions of theMaggi brand to a number of products like, sauces, ketchups, pickles, soups,tastemakers and macaroni in the mid-1990s. Unfortunately, the macaroni andpickles 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 nearlylost its position in the minds of Indianconsumers in the late 1990s. When Nestlechanged the formulation of its tastemaker, the ominous packet that came alongwith Maggi Noodles, a major chunk of consumers were put-off and sales starteddropping. Also, Maggi‘s competitor ‗TopRamen‘ took advantage of the situationand started a parallel aggressive campaign to eat into Maggi‘s market share. Butthe company quickly realised this and went back into making the original formulacoupled with a free sampling campaign. This helped Maggi to win back its lostconsumers and pushed up its sales volumes again!
  69. 69. Brand Study : Maggi 69Maggi Today The year 2008 saw India leading in worldwide Maggi sales. Thebrand has grown to an estimated value of Rs 160-170 crore and contributes at least8–9% to Nestle India‘s top line. All the same, some FMCG analysts feel that thebrand has not done much to expand the noodles category. Even after 25 years of itslaunch, the size of the instant noodles market is yet quite small at Rs 300 crore. Butyes, the parent company, Nestle India Limited has certainly encouraged the brandto enter into other culinary products.
  70. 70. Brand Study : Maggi 70 RECOMMENDATIONAfter the conducted study following recommendations could be sited for MaggiBrand. 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. 71. Brand Study : Maggi 71 BIBLIOGRAPHYWebsites:- www.nestle.in www.maggi-club.in www.indianjournalofmarketing.com www.careerdynamo.com/marketing_journals.html www.wikipedia.comNewspapers and Magazines:- Economic Times – ―Brand Equity Supplement‖ 4P‘s of Marketing Magazine Marketing Today Magazine