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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 SnehaChandan, PGP/FW/10-12/ISBE-B

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 inanyrespect 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 2712 Management Strategies 30 4Ps Evaluation Integrated

Marketing Communication STPD Analysis SWAT Analysis Brand Prism

13 Sales And Marketing Channel 44

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. 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

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important information provided by thecompany, which would assist in

taking the decision for the right brand extensionstrategy for Maggi.

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 allinspiration and image of the company. His philosophy isbottom 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. 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. 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 womenwere factory workers, thus the time available forhousework and the

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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 producedappliances 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. 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. 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

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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 indirectemployment 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. 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 sendtheir children to school.Nestlé India employees have developed a

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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 adoptinggooddairying 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. 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. 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 usuallythe

bought out‗ type. The second competition came from the homemade

snackslike pakoras or sandwiches. So there were no specific buy and

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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 buthad the disadvantage of extended

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. 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

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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 itsadvertisements 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. 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 theyear 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

providingrestaurant-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 campaignincludingradio, television,

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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. 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. 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

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Vegetable - Rich Tomato Chinese Style - Chinese Hot Sour Chicken -

Chinese Sweet Corn Chicken - Chinese Sweet Corn Vegetables -

Chinese Hot & Sour Vegetables

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. 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. 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 companysocietyAnonym pour la Fabrication des Products Alimentative MAGGI

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(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 inmaking 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. 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. Brand Study : Maggi 25 BRAND LOGOA logo is a mathematical

element (ideogram, symbol, emblem, icon, sign) that,together with its

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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, andimages 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. 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 ofhealthy 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. 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

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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 tocraft 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. Brand Study : Maggi 28Effective use of Tag line and jingles byMaggi :-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 saidFast 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

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promotionspositioned the noodles as convenience product‖, for

mothers and as afun‖ product for children.

29. Brand Study : Maggi 29The tag lines such as Fast to Cook Good

to Eat‖, 2-minute noodles‖ andTaste 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. 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. 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

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kids. Maggi has recently launched MAIN AUR MERI MAGGI‖

campaign in commensuration of 25 years of Maggi in India.

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 innovativeand 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 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.

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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. 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. 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. Brand Study : Maggi 37Sales Promotion: - To introduce new

products To attract new customer and retain the existing ones Tomaintain sales of seasonal products To meet challenge of competition

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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 withschemes 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. Brand Study : Maggi 38Public Relation: -The Maggi Club – thechildren 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. 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

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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 maximisethe 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. 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. 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

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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 brandawareness 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. Brand Study : Maggi 43Brand Consumer Prism BRAND PRISM OF

MAGGI

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. 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 warehousingfacilities that are requiredfor distribution across the state. The presence

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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 moderntradeDistributors 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. 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. 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

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was a big challenge for Maggi. Though Top Ramen couldn‗t do well in

India.

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. 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. Brand Study : Maggi 50but without diluting the core brandequity.Maggi over these years have made lot of mistakes. It made

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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 brandfresh 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. 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. 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

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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 andnationality.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 MethodologySample Size

Number of 50 respondents Survey Location PuneMethodologyTheresearch 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. 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. 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 asa part of our study would include Primary as well asSecondary

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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 ofBrand 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 CollegeQ1. Do you

purchase ready to eat products available in the market? a) Yes b) NoQ2. 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. 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. 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. 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

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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 0KnorrKnorr 4 Top Series1ITC Sunfeast 5 Ramen Maggi 0 20 40 60

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. 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. 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. 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. 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. 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 marketfromlong time but brands like Knorr, Sunfeast, Horlicks is not available at

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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 mediumfrom 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. Brand Study : Maggi 67 SUCCESS FACTORS OF MAGGIQuick

Localization:-One major factor for Maggis success was its quicklocalization. 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. 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

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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 makeextensions 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 diff iculty 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. 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. 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

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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 solebrand 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 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

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