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@ Nestlé India Ltd. (NIL), the Indian subsidiary of the global
FMCG major, Nestlé SA, introduced the Maggi brand in
India in 1982.

@ With the launch of Maggi noodles, NIL created an


entirely new food category - instant noodles - in the
Indian packaged food market and became a popular
snack food product in India.

@ Being the first-mover, NIL successfully managed to


retain its leadership in the instant noodles category even
until the early 2000s.

@ In 2005, NIL started offering a range of new 'healthy'


products under the Maggi brand, in a bid to attract
health-conscious consumers.
  
@ In May 2006, Nestlé India Ltd. (NIL), launched a
new instant noodles product called Maggi Dal
Atta Noodles (Dal Atta Noodles) under the
popular Maggi brand.

@ The Dal Atta Noodles were made of whole


wheat and contained pulses, and positioned as
a 'healthy instant noodles.

@ NIL offered a variety of culinary products such


as instant noodles, soups, sauces and ketchups,
cooking aids (seasonings), etc., under the Maggi
brand.
’

@ During 1990s, the sales of Maggi


noodles declined, and this was
attributed partly to the growing
popularity of Top Ramen.
’

@ NIL changed the formulation of Maggi noodles in
1997.
However, this proved to be a mistake, as consumers
did not like the taste of the new noodles.

@ In March 1999, NIL reintroduced the old formulation


of the noodles, after which the sales revived.

@ NIL also introduced several other products like soups


and cooking aids under the Maggi brand.

@ In the early 2000s, Maggi was the leader in the


branded instant noodles segment, and the company
faced little serious competition in this segment.
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@ Through its ads, NIL positioned Maggi as


a 'fun' food for kids which mothers could
prepare easily. Tag lines of Maggi from
their various ads: -
- µMummy, bhookh lagi hai¶ (Mom, I'm hungry),
^ µBas 2-Minute¶ (Only 2 minutes)
^ µFast to Cook Good to Eat¶
^ µHealth Bhi, taste Bhi¶
^ µIts Different
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@ The demand for convenience food was
increasing in India in the early 2000s.

@ The survey also revealed that the market for


branded food products was growing at a healthy
rate of around 15 percent in the early 2000s.

@ The changing lifestyles and eating habits of


Indian consumers and the increasing purchasing
power of the growing middle income group were
thought to be the reasons behind this growth.
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^ Age
^ Life Style
^ Eating habits of urban families
@  
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^  ids
^ Office Goers
^ Working women
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- Easy to cook, Good to Eat
- 2-minute Noodles
%&pÔ 
@ Strength
- Market leader in their segment
- Strong brand loyal consumer base
- wide range of distribution channel
- Product according to the need of Indian consumer
- innovative product

@ Weaknes
- Product dependent on single flavour
- Not so much presence in rural market
%&pÔ 
@ Opportunity
@ Increasing number of working youth
@ Product has been acceptable in youth category
@ Shift to rural market

@ Threat
@ Price war with competitors
@ Strong presence of regional competitors
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@ 
#%  $ No potential
threat of new entrants for
maggi noodles

@ ½
$ Distributors,
@ Raw materials suppliers
@ 2 
 : Top
Ramen
@ Ô
$ Customer¶s mind
set, Brand Image
@ ½ 
$ Chowmeen,
Fast food, Past
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@ Brand Life Cycle - Explained in the Case


@ Branding strategies adopted by NIL:
ë Promotional campaigns in schools

ë Advertising strategies like µIts Different¶, µBas


2-Minute¶, µHealth Bhi, taste Bhi¶ etc which
caught the heart and imagination of Indian
consumer

ë Availability in different pack sizes


ë New product innovations.
ë Organizing contests, games and industrial
visits for school kids to further strengthen the
brand image

ë Invite Housewives to send new innovative


recipes made from Maggi and introduce
rewards for the same

ë NIL's promotions positioned the noodles as a


'convenience product', for mothers and as a
'fun' product for children.
ë NIL aggressively promoted Maggi noodles
through several schemes like: -

- distributing free samples

- giving gifts on the return of empty packs

- NIL's advertising too played a great role in


communicating the benefits of the product to target
consumers
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@ Brand extension is using the leverage of a well known


brand name in one category to launch a new product in a
different category.

@ Brand Extension Strategies are frequently undertaken by


the companies when they launch any new product. The
companies try to reap benefit out of their established
Brand Name and Brand Equity.

@ Brand Extension Strategy refers to the strategy in which


a company uses the same Brand Name in order to
promote products of different category.

@ It is commonly found that, a company which has already


established its brand name in the market for a specific
product category, uses the same Brand Name at the
time of launching a new product of different category.
@ In this case, the new product easily develops an
acceptance range as the customers are already
familiar with the Brand Name.
@ %
$ NIL used the brand extension strategy
and offered a variety of culinary products such
as instant noodles, soups, sauces and ketchups,
cooking aids (seasonings), etc., under the
µMaggi¶ brand name

@ Multi-brand strategy: Marketing of two or more


similar and competing products by the same firm
under different and unrelated brands.
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- obtaining greater shelf space and leaving little for


competitors' products
- saturating a market by filling all price and quality
gap
- catering to brand-switchers²users who like to
experiment with different brands
- keeping the firm's managers on their toes by
generating internal competition
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@ Focus more on the core brand i.e. Maggi 2


minutes noodles.
@ Spend on R&D and promote as health
product.
@ Enter the rural market
@ Increase the distribution channel
@ Introduce innovative products with different
brand name - i.e. go for multi-branding
strategy.
@ Give combi offers like a kit kat
Ô  ·