This action might not be possible to undo. Are you sure you want to continue?
SWOT ANALYSIS OF MAGGI BRAND«««««««««««.23 18.12 9.14 13..10 6.. CUSTOMER-BASED BRAND EQUITY PYRAMID (CBBE) ««««««««. BRAND STORY«««««««««««««««««««««««««««««. RECOMMENDATION«««««««««««««««««««««««««. SURVEYRESULT««««««««««««««««««««««««««««.«04 2. METHODOLOGY««««««««««««««««««««««««««« 13 12...21 16. OBJECTIVE«««««««««««««««««««««««««««««««. MARKET SHARE««««««««««««««««««««««««««««.... 23 19. STPD ANALYSIS OF MAGGI BRAND«««««««««««««.20 15.06 5.22 17.. DATA COLLECTIO PLAN«««««««««««««««««««««««««13 11. FUTURE PLAN«««««««««««««««««««««««««««««..12 8.TABLE OF CONTENTS 1.24 .. PRODUCT VARIENTS««««««««««««««««««««««««.. RESEARCH PLAN««««««««««««««««««««««««««««..««««««. LIMITATION«««««««««««««««««««««««««««««. CONCLUSION«««««««««««««««««««««««««««««.««.05 4.««. BRAND PRISM OF MAGGI««««««««««««««««««««««««... MAGGI BRAND IN INDIA«««««««««««««««««««««««««. EXECUTIVE SUMMARY««««««««««««««««««««««««.12 10.11 7. INTRODUCTION««««««««««««««««««««««««««««..24 20.««««««««19 14...05 3.. RESEARCH METHODOLOGY««««««««««««««««««««««.
.EXECUTIVE SUMMARY The report entitled ³A study of Maggi Brand Repositioning and Extension´ deals with the study of Maggi brand that was launched in India in the year 1983. The introduction provides the company background. by Nestle India Limited. which became synonymous with noodles. This research paper tries to find a solution to a real life problem of Maggi to launch its products as a Healthy Product. operational & other important information provided by the company which would assist in taking the decision for the right brand extension strategy for Maggi.
Julius Michael Johannes Maggi was the oldest son of an immigrant from Italy who took Swiss citizenship. such as packaged soups. Soon after he was commissioned by the Swiss Public Welfare Society. The Maggi Company merged with Nestlé in 1947. prepared sauces and flavourings.83. Under the Maggi brand. Julius Maggi came up with a formula to bring added taste to meals. he came up with two instant pea soups and a bean soup . Julius Maggi became a miller and took on the reputation as an inventive and capable businessman. This wide spread problem grew to be an object of intense study by the Swiss Public Welfare Society. Maggi is a leading culinary brand and part of the NESTLÉ family of fine foods and beverages. which is today known world wide for quality and innovation. sauces and other flavourings.INTRODUCTION The industrial revolution in Switzerland in the late 1800s created factory jobs for women. Towards the end of the century. Today. Born on October 9. Maggi & Company was producing not just powdered soups. 1846 in Frauenfeld.the first launch of the Maggi brand of instant foods in 1882 . who were therefore left with very little time to prepare meals. frozen meals. but bouil on cubes. Switzerland. the Society asked Julius Maggi miller to create a vegetable food product that would be quick to prepare and easy to digest. Nestle offers a whole range of products. In 1863. . As a part of its activities.
Quickly they repositioned it towards the kids segment with various tools of sales promotion like colour pencils. then obviously it¶s a hit with her! What¶s more. Nestle had positioned Maggi as a convenience food product aimed at the target group of working women who hardly found any time for cooking. And if she can make it in two minutes with very little effort. So there were no specific buy and make snack! Moreover both competitors had certain drawbacks in comparison. In the course of many market researches and surveys. µhomemade¶ snacks overcame both these problems but had the disadvantage of extended preparation time at home. At that time. that were usual y µthe bought out¶ type. biscuits or maybe peanuts. and outside food is generally considered unhygienic and unhealthy. the positioning of the product with the wrong target group. either lunch or dinner.The reason being. Snacks like samosas are usually bouht out. it chose not to do so. Donati. Maggi clubs which worked wonders for the brand. the product is as good as sold! So the µ2-minute¶ funda coupled with the µyummy taste worked! . But. Unfortunately this could not hold the product for very long. The company could have easily positioned the product as a meal. The second competition came from the homemade snacks like pakoras or sandwiches.MAGGI BRAND IN INDIA Maggi Comes to India ± teething troubles Maggi noodles was launched in India in the early1980s. The other competitor. brought the instant noodle brand to India during his short stint here in the early eighties. Carlo M. The first competition came from the ready-to-eat snack segment which included snacks like samosas. if kids also love the taste. the firm found that children were the biggest Consumers of Maggi noodles. fun books. as the housewife prefers to µmake¶ a meal for her kids rather than buy it for them. Maggi was positioned as the only hygienic home made snack! Despite this. sketch pens. because the Indian consumer mindset did not accept anything other than rice or roti as a meal. The firm did not position it as a µready-to-eat¶ meal either. Hence trying to substitute it with noodles would have been futile. there was no direct competition. Nestlé faced difficulties with their sales after the initial phase. Why the specific Brand positioning? Maggi was positioned as µ2-minute noodles¶ with a punch line that said µFast to cook! Good to eat!¶ And this gave the implied understanding to the consumer that it was a µbetween meals¶ snack. the present Chairman and Managing Director of Nestle India Ltd.
After its advertisements with taglines like ³mummi bhookh lagi hai. Nestle promotional activities for Maggi included schemes offering gifts (such as toys and utensils) in return for empty noodles pack. According to analysits the focus on promotion turned out to be the single largest factor responisible for Maggi¶s rapid acceptance. The focus of all Maggi¶s extensions was more on below the line activities rather than direct communication. sales promotion became a crutch for Maggi noodles sales. Nestle had to promote noodles as a concept. The packaged food market was very small at this time. Maggi¶s annual growth reportedly touched 15% during its initial years.BRAND STORY Launched in 5 flavors initially ± Masala. Maggi associated itself with main stream television programme and advertised heavily on kids programme and channels. Gradually. The company also decided to focus on promotions to increase the brand awreness. before it could promote Maggi as a brand. . the market for instant noodles began to grow. chicken. Later many of the Maggi¶s extensions also made considerable use of promotional schemes. It therefore devised a two-pronged strategy to attract mothers on the µconvenience¶ plank and lure kids on the µfun¶ plank. As a result. Capsicum. sweet & sour. Nestle\¶s Managers utilized promotions as measured to meet their sales target. Gradually. In addition to promotional activities. and Lasagna ± Maggi had to fight hard to be accepted by Indian consumers with their hard-to-change eating habits. bas do minute´ and fast to cook good to eat Maggi¶s popularity became highly attributed to its ³extremely high appeal to children´. In the initial years.
000 tonnes for the year.Understanding these failures. However. In order to stretch Maggi¶s brand to include Indian ethenic foods the company tied up with a Pune based chordia foods to launch pickles under the year 1995. the company had introduced soups only to cash in on the Maggi¶s brand name. according to analyst. As a result volume increases phenomenally to 9700 tonnes in 1994 and further to 13000 tonnes in 1995. The company reportedly saw a lot of untabbed potential in the market for ready to use south Indian market. Maggi noodles was generating sales volume of around 5000 tonns and remained a loss making proposition for Nestle. Maggi soup. sales were rather poor in the regions in which they were aunched. dosa. and was never very serious about the segment. However. This was made possible by using thinner and cheapeer packaging material. Nestle launched Maggi¶s first brand extension. Maggi¶s euphoroia was. The company also tied up with Indian foods fermentation (IFF). however. the product failed to generate the desired sales volume and Nestle was forced to withdraw it. Despite slow sales in the previous two years. At this stage. There was no organized packaged soup market in India. Analysts attributed the failure of these Maggi extensions to the fact that Nestlé seemed to be particularly bad at dealing with traditional Indian product categories. and buoyed by the fact that . vada and spices in consumer packs in Dec 1995. the company also introduced ³money saver multi packes´ in the form of 2-in-1 pack and 4-in-1 packs. Maggi noodles performed badly in 1996. Nestle planned to create a market for packaged soup as it felt the category had a lot of potential. products from these two ventures received lukewarm response from the market. as sales stagnated in 1995 at the previous years level. a range of cooking sauces aimed at providing µrestaurant-like-taste¶ to food cooked at home. ³Sweet Maggi´. Adding to the company woes was the failure of Maggi Tonite¶s Special. Maggi couldn¶t cross even 14. a Chennai based food company to market popular south Indian food preparation such as sambher. the first variant of Maggi noddles was launched. Nestle decided to reduce the price of Maggi noodles. In 1993. At the end of the year. short lived. In 1996. However. offering 10 flavors against Maggi¶s 4 the company started rethinking its strategies towards the soup market.Maggi¶s Brand Extension: In 1998.000 tonnes. The range included offerings such as Butter Chicken gravy and tomato sauce for pizzas. To boost sales. With soup business being threatned by a new entrant ³Knorr soups´ launched in 1995. Nestlé had set a sales target of 25. The company supported the launch with a huge advertisement outlay that amounted to 75% of the total yearly expenditure on the Maggi brand.
000-14. The interest generated by the novelty of the product soon died out and sales began tapering off.the Maggi brand finally broke even in 1997. According to analysts. television. Chicken. the price of a single pack had reached Rs 10. HLL began promoting its Kissan range of sauces aggressively and launched various innovative variants in the category. Maggi Macaroni was made available in three flavors.they seemed to be moving away from it. featuring actors Pankaj Kapoor and Javed Jafri. . who failed to see any noted value addition in Maggi Macaroni (packaging and flavor variants were similar to those of Maggi noodles). Nestlé launched µMaggi Macaroni¶ in July 1997. As they associated the product with their childhood. A 75-gm Maggi Macaroni pack was priced at Rs 11. Since macaroni is thicker than noodles.¶ However. proved to be a major hurdle. and Masala. Tomato. while a 100-gm noodles pack was available at Rs 9. when it learnt to its horror that Knorr had dethroned Maggi as the leader in the soup segment (end of 1997). The only saving grace for Maggi seemed to its ketchups and sauces. Maggi Macaroni was launched partly to deal with the growing popularity of competing noodles brand Top Ramen. Nestlé responded with a higher thrust on advertising and different size packs at different price points. The company realized that the kids who had grown up on Maggi noodles had become teenagers by the late 1990s. Nestlé continued to explore new options for leveraging on the brand equity of Maggi noodles. By early 1997. which were turning out to the µrare¶ successful extensions of Maggi. Eventual y. The company expected to repeat the success of Maggi noodles with Maggi Macaroni. µTum Roz Baby. Maggi was able to hold on to its own market share.000 tonnes. These products were supported by a popular advertisement campaign for the Maggi Hot & Sweet sauce brand. To lure back these customers and to explore new product avenues. µIt¶s different. customers failed to see any significant difference between Maggi Macaroni and the much cheaper macaroni that was sold by the unorganized sector players. In addition. Nestlé failed to justify this price-value anomaly to customers. Volumes were stil languishing between 13. Nestlé had not even recovered from Macaroni¶s dismal performance. used the tagline. These humorous advertisements. Though Kissan gained market share over the next few years. Nestlé had to withdraw Maggi Macaroni completely from the market. According to analysts. forcing the company to increase the retail price. however. during mid-1997. Maggi Macaroni did not absorb the tastemaker wel and consequently did not taste very good. outdoors and print media with the tagline. The biggest problem however was the taste of the new product. The product¶s pricing. Maggi Macaroni¶s launch was backed by a multi-media advertisement campaign including radio. Meanwhile the operational costs of Maggi noodles had increased considerably. As with most of its product launches.
To counter the Knorr threat. the pricing was also kept competitive and the packaging was made much more attractive. . The customer backlash that fol owed the launch of the new noodles took Nestlé by surprise. As Maggi did not have any offerings in this price-range. µMaggi¶ the brand. in 1998. The relaunch prompted market observers to compare Nestlé¶s move with US soft drinks major CocaCola¶s µNew Coke¶ fiasco. Nestlé carried out various promotional activities as wel . that mixes nostalgia with the consumer¶s voiced preference for the product it has been bred and rought up on. the monthly average sales of Maggi noodles n the northern region rose 50% in comparison to the previous year. To cook the new product. ³It¶s a hard-5 nosed strategy. However. However. so that it could air-dry instead of oil-fry the noodles. With volumes declining and customer complaints increasing. To further support the brand. consumers had to add two cups of water instead of one-and-a-half cups. Two months after the relaunch. In July 1999.000 tonnes noodles market by the end of 1999. the company disagreed. The soups were not only thicker in consistency than those produced earlier.´ By May 1999. the company relaunched Maggi soups under the µMaggi Rich¶ brand in May 1998. but also to save money through this new formulation. Nestlé¶s decision to bring back the µold Maggi¶ seemed to have paid off. The company used new noodle-processing technology. The taste of the noodles was significantly different from what it used to be. it lost a huge portion of its market share to Knorr. Company sources claimed that with reasonable price points and innovative products. was promoted as the biggest brand in Nestlé¶sportfolio of brands in India. Knorr took Nestlé by surprise by launching oneserving soup sachets priced as low as Rs 4. the company began to work on plans to relaunch µold Maggi¶ to win back customers. These included the August 1999 µFun-Dooz¶ campaign and Jungle Jackpot campaigns. In addition.Pricing and Product Development: It was at this point in time that Nestlé decided to change the formulation of Maggi noodles. overtaking brands such as Nestum and Cerelac. Nestlé sources claimed that Maggi noodles outsold the competition four times over and that more than four Maggi noodle cakes were consumed every second in the country. The purpose was not only to infuse µfresh life¶ into the brand. Nestlé believed that Maggi had immense potential as it was a very µflexible¶ brand under which regional variants could be introduced to meet various market needs. Maggi could emerge as a top brand and a major growth driver for the company. 6 As a result of the above initiatives. The reintroduction is Nestlé¶s acknowledgement of the loyalty of the Indian mother and the child to the original product. costs reportedly came down by 12-14%. Nestlé began working out a strategy to regain Maggi¶s position in the soup segment. Nestlé claimed to have cornered an 81% market share of the 20. HLL too launched two-serving sachets of Kissan soup priced at Rs 7. The tastemaker¶s manufacturing process was also altered. As a result of the above initiatives.
Brand image. The sample will be selected by a simple random sampling method . To understand Brand Imagery. consideration. Analyses the repositioning of Maggi brand as a ³Healthy product´ and the consumers perseverance towards the same. Brand association. Sample Size: The sampling unit is 150 which are divided as follows: .RESEARCH METHODOLOGY OBJECTIVES To understand the influence of Maggi as a brand on consumers mind set. Brand credibility. Brand Quality perceived by customers. Sample Design: The target population for our study is households. Sources of Brand equity of Maggi like Brand awareness. Brand recall To understand the Brand performance of Maggi products. Brand extension of Maggi in terms of product diversity. superiority and feelings. RESEARCH PLAN Research Design: The research wil be carried out in the form of a survey which will be done in areas near to Delhi (NCR region). The population has been segmented on the basis of salary Group and Age Group.
Gurgaon.Faridabad. Survey Locations SALARY GROUP NUMBER OF RESPONDENTS NO INCOME 25K-40K 30 40K-60K 50 60K-75K 70 AGE GOUPS NUMBER OF RESPONDENTS 10-15 50 15-35 50 35-45 50 .NUMBER OF RESPONDENTS AGE GROUP MONTHLY HOUSEHOLD INCOME 150 10-45 25000-75000 INR Delhi.Noida.
This wil include primary research in addition to secondary research as stated below. The survey research method will be descriptive research design. Journals. The survey will address the fol owing information area: Information Areas: The objective as spelt out can be elaborated into specific information areas to be studied. their perception of noodles and how do they associate themselves with Maggi? Are the consumers aware of Maggi Brand or they associate noodles with some other brand? Do they consider noodle as a healthy product or they are aware of the company¶s strategy of repositioning it to a healthy product by the launch of some of the new products? Which product from the entire basket of Maggi products do the consumers consider as the best selling product for Maggi and to which the consumers frequently buy? Are the consumers willing to accept Maggi brand extensions to some other products like chocolate. METHOLODOGY The research wil be carried out in the form of a survey.Secondary research would include various aspects of Brand management through Internet . Faridabad. Primary research would include a survey that would be conducted in selected localities of Delhi and nearby areas where the responses of consumers would be recorded through a designed questionair. juices. Gurgoan. and Noida. company reports . chips etc? . expert views etc. Each respondent wil be interviewed through a Questionnaire. The sample wil be selected by a simple random sampling method. Literature Review The research conducted as a part of our study would include Primary as wel as Secondary research. How do customers perceive Maggi as a stable brand.DATA COLLECTION PLAN Data Gathering: This study involves data col ection (primary research) from different households in four different areas Delhi.
The implications from the findings discussed above seem that Maggi has good brand association in terms of noodles. Brand Associations: Sources of Brand equity like brand association of Maggi as a Brand was found highest with the age group of 10-25 and the product category associated with it was the noodles category (see exhibit 1).In the income wise category the brand association was highest with the income group of 25k-40k were more than 40 respondents associated Maggi with noodles ( see exhibit 2). Consumers presume Maggi as Noodles and the company¶s philosophy of projecting the brand as noodles brand seem to be viable in this regard.SURVEY RESULTS: 1. 40 35 30 25 20 15 10 5 0 Noodle Fast Food Snacks None of These 10yr -25yr 25yr -35yr 35yr -45yr . Consumers in the age segment of 10-25 could easily relate Maggi to noodles.
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue listening from where you left off, or restart the preview.