MM Branding

8/3/2019 MM Branding

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1GEMS B SCHOOL, BANGALORE

A

Project Repot

on

BRANDING

(Case study of MAGGI as a Brand)

By:

Tejas V. KakadeRoll No. VA09MBA09P03

GREAT EASTERN MANAGEMENT SCHOOL,

BANGALORE


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CERTIFICATE

This is to certify that the Project work BRANDING (Case study of MAGGI as a

Brand) is submitted to the college by thecandidate Mr. Tejas V. Kakade bearing Reg.

No. AA3AB0064410059AG is the product of bonafide research carried out by the

candidate under my supervision in Marketing Management.

(GUIDE)

BANGALORE DR.G.S.HEDGE

Bangalore Lecturer, Business Statistics

NOV, 2011 Great Eastern Management School


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CONTENTS

Sl.

No.Chapters Page No.

1. Introduction to Brand 5-10

2. Brand Building 11-16

3. Brand Equity 17-20

4. Brand Repositioning 21-22

5. Brand Personality 23-25

6.

Case Study-Maggi

a) Case Background

b) BCG Matrix

c) SWOT Analysis

d) Best Coerce of Action

e) Reposition

26-38

7. References 38-40


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ACKNOWLEDGEMENT

The Project work was carried out under the remarkable guidance of Dr. G.S.Hedge

Lecturer, Great Eastern Management School. I am grateful for his guidance, valuable

suggestions and for the constant encouragement and co-operation.

I also express my sincere gratitude and thanks to all the subjects participated in the

study.

I owe the successful completion of my work to Ms. Mythri for her kind support.


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Chapter 1

Introduction


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What is Brand?

A brand is the identity of a specific product, service, or business. A brand can takemany forms, including a name, sign, symbol, color combination or slogan. The word

brand began simply as a way to tell one person's cattle from another by means of a hot

iron stamp. A legally protected brand name is called a trademark.

The word brand has continued to evolve to encompass identity - it affects the

personality of a product, company or service.

A brand is the name of a particular business enterprise. There are several reasons why

a brand is important. A brand can help to differentiate a particular company from others

in a market.


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The brand is the sum total of the consumer's impressions about the product and

service. The less distinctive these impressions, the greater the risk that a competitor's

products or services may gain a stronger perception and competitive advantage.

Brand management is a process that combines various techniques and strategies that

go into making a particular brand. Marketing plans are important parts of the process.

Since brands are essential to the success of the company it is important to work hard at

the creating a brand.

Principles of Branding

A key ingredient in launching a successful company is the selection of its name. Product

names that are considered generally sound have several qualities in common.

They strategically distinguish the product from its competitors by conveying itsunique positioning

They hold appeal for the products target audience

They imply the brands benefit

They are available for legal protection.


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They allow companies to bond with their customers to create loyalty.

They have a symbolic association that fortifies the image of a company or a product

to the consumers.

They help motivate customers to buy the product.

They can buy a product image and name.

Types of Branding

Brand names for American products typically fall into one of four categories: descriptive,

suggestive, arbitrary and fanciful.

Descriptive

Descriptive names ascribe to the product a characteristic, feature, ingredient,

appearance or geographic location. Examples of descriptive product names include

Philadelphia Cream Cheese, Florida Orange Juice, Cinnamon Toast Crunch and

Transitions Lenses.

Descriptive product names can be overly long. Also, these names can become

generalized and turned into a category name instead of a brand, exemplified

by Rollerblade and Dry Ice.

Suggestive

Suggestive names, the second type of names, suggest or hint at a products key

features or benefits. They are allusive and are often formed by metaphors, allusions or

simile.

Suggestive product naming is common in business-to-consumer categories such as

food and household goods. Bounty paper towels,HersheysKisses candy, Always feminine products, Kelloggs Nutri-Grain bars and the Mr.

Clean Magic Eraser cleaning product are all examples of suggestive product names that

are meant to imply a variety of positive associations to consumers. Both descriptive and

suggestive names are composed only of natural English words that either work alone or

in combination to form a literal or abstract name.
http://en.wikipedia.org/wiki/Cinnamon_Toast_Crunchhttp://en.wikipedia.org/wiki/Rollerbladehttp://en.wikipedia.org/wiki/Dry_Icehttp://en.wikipedia.org/wiki/Bounty_(paper_towel)http://en.wikipedia.org/wiki/Hershey%27s_Kisshttp://en.wikipedia.org/wiki/Hershey%27s_Kisshttp://en.wikipedia.org/wiki/Hershey%27s_Kisshttp://en.wikipedia.org/wiki/Always_(product)http://en.wikipedia.org/wiki/Kellogg_Companyhttp://en.wikipedia.org/wiki/Kellogg_Companyhttp://en.wikipedia.org/wiki/Nutri-Grainhttp://en.wikipedia.org/wiki/Mr._Cleanhttp://en.wikipedia.org/wiki/Mr._Cleanhttp://en.wikipedia.org/wiki/Mr._Cleanhttp://en.wikipedia.org/wiki/Mr._Cleanhttp://en.wikipedia.org/wiki/Nutri-Grainhttp://en.wikipedia.org/wiki/Kellogg_Companyhttp://en.wikipedia.org/wiki/Always_(product)http://en.wikipedia.org/wiki/Hershey%27s_Kisshttp://en.wikipedia.org/wiki/Hershey%27s_Kisshttp://en.wikipedia.org/wiki/Bounty_(paper_towel)http://en.wikipedia.org/wiki/Dry_Icehttp://en.wikipedia.org/wiki/Rollerbladehttp://en.wikipedia.org/wiki/Cinnamon_Toast_Crunch


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Arbitrary

The third category of names, arbitrary, do not describe a product or literally suggest a

product meaning. They are likewise not adapted from features or benefits of theproduct. They are literally arbitrary. Arbitrary names can be made up of either coined or

natural words. Apple, for example, was created because Steve Jobs worked on an

apple farm and also believed apples to be the perfect fruit.

Fanciful

Fanciful or coined names, also referred to as neologisms, are often perceived as a

recent phenomenon and as "completely made up," although neither of these

assumptions is true. They have been popular in the United States for more than acentury, evidenced by established brands like Crayola, Coca-Cola and Kool Aid. These

product names are so readily understood that, to many people, they simply do not

sound coined.

Names that are usually judged to be the most effective are "meaningfully coined"; that

is, they are built on descriptive or suggestive words that have meaning for the target

market. Examples are Lunchables (lunch + ability) and Motorolas RAZR (a stylized

re-spelling of razor, which alludes to the cell phones thin profile).
http://en.wikipedia.org/wiki/Apple_Inc.http://en.wikipedia.org/wiki/Steve_Jobshttp://en.wikipedia.org/wiki/Crayolahttp://en.wikipedia.org/wiki/Coca-Colahttp://en.wikipedia.org/wiki/Kool_Aidhttp://en.wikipedia.org/wiki/Lunchableshttp://en.wikipedia.org/wiki/RAZRhttp://en.wikipedia.org/wiki/RAZRhttp://en.wikipedia.org/wiki/Lunchableshttp://en.wikipedia.org/wiki/Kool_Aidhttp://en.wikipedia.org/wiki/Coca-Colahttp://en.wikipedia.org/wiki/Crayolahttp://en.wikipedia.org/wiki/Steve_Jobshttp://en.wikipedia.org/wiki/Apple_Inc.


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Famous Brands


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Chapter 2

Brand Building


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Brand Building

It has been noticed that brand loyalty is an important factor in maintaining the number

one position. The fact that brands are a part of the company equity is now a universal

concept, however what this awareness implies has not yet been fully analyzed. As is

often the case, phrases such as brands are our equity become company leitmotivs.

The truth is that, when taken at its word, this brand equity awareness has actually

revolutionized operational marketing.

Brand Equity is imperative for a company to succeed in today's market to have a decent

brand development system in place.

Brand equity involves both the component value of a brand and brand value. Brand

equity enhances the value of a product and creates a positive environment for the

company to increase prices.

Brand Equity is defined as the aggregation of two aspects of a product. The first being

the component value of a Brand i.e. a product value prior to marketing. The second is

brand value I.e. the increased value of a product due to branding.


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Branding has been shown to transform the perceived value of a product by making it

well known to customers through aggressive promotion and marketing. It has been

observed that this transformation infuses a value into the name and consequently

increases its price.

There are many apparel companies for a product in domestic as well as foreign

markets. But only a few have qualified themselves as a brand . Clearly, the price range

of these well known brands is much higher than the others. The main factor behind this

price differential is the added brand value. Thus, brand equity of such product includes

its component as well as the brand value.

Brand equity refers to the intangible value that accrues to a company as a result of its

successful efforts to establish a strong brand. A brand is a name, symbol, or other

feature that distinguishes the company's goods or services in the marketplace.

Consumers often rely upon brands to guide their purchase decisions.

The positive feelings consumers accumulate about a particular brand are what makes

the brand a valuable asset for the company that owns it.

Many companies structure their marketing programs around building and preserving

their brand equity. "To be a strong brand, a company must instill a clear, unwavering

consumer perception of the distinctive emotional or functional benefits of its products

and services,"


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Types of Brand Building Strategies

There are a few approaches on brand building strategies:

Product branding

Product-line branding

Product-range branding

Corporate branding

PRODUCT BRANDING STRATEGY

This type of brand give each individual product an exclusive brand name and the

company name being ignored

It allows the brand to have unique values, personality, identity and positioning.

By doing so, it implies that every new product the company brings on to the

market is a new brand and can be positioned precisely for a specific market

segment

It has the advantage of making it easier for the company to evaluate brand

performance and worth and allows better resource-allocation decisions.

The major drawbacks are product cannibalization if consumers cannotdifferentiate clearly among product brands and involves higher advertising and

promotion budget and is totally self-supporting with little or not brand name

assistance or assurance from the parent.

PRODUCT-LINE BRANDING STRATEGY

Here, the products appear under the same brand name and possess the same

basic identity but with slightly different competencies for example Follow Me line

of hair shampoos. Here the brand line comes under the hair-care category but

the different line extensions cover complementary applications of essentially the

same product


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Advantages therefore are economies of scale in advertising and promotion and

each new line extension strengthens the position of the brand and therefore its

image. The line helps defend the category from predatory attack. Hence,

individual product brands can move across to line brands as companies find

ways of extending the brand to different consumer groups or segments.

PRODUCT- RANGE BRANDING STRATEGY

A number of products or services in a broad category are grouped together

under one brand name and promoted with one basic identity.

Compared to product-line branding, product-range branded products carry out

the basically the same functions but at different performance levels like various

cars in the Mercedes S, E, C and A class and Intels Pentium and Celeron

ranges of microprocessors.

Therefore the advantage here is that a single brand name allows some

economies of scale in advertising and promotion as the products tend to carry

the same overall brand values and positioning.

CORPORATE BRANDING STRATEGY

Two approaches in the Corporate brand exercises

First is to promote its name as the main brand name sometimes referred to as

monolithic or umbrella branding. Here the product is not branded individually or

as strongly as the corporate brand. Companies using this approach IBM,

Virgin, Sony. The basic principle is that the companies believed that the company

name is the life of an enterprise.


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The second approach which is becoming popular whereby the product brand

name has a high profile but is endorsed by the parent company which gives the

product a stamp of quality and credibility. Here the product brand is self

supporting in practically every respect but retains the assurance of the corporate

brand endorsement. This type of corporate branding is also called house or

endorsement branding. Nestle uses this approach to protect and guarantee the

performance of their multitude products.

Also suitable for companies engaged in service industries as their products are

more intangible in nature. When consumers cannot see the products, the

company name helps to give them an assurance of quality, heritage and

authenticity


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Chapter 3

Brand Equity


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Brand Equity

The basis of brand equity lies in the relationship that develops between a consumer and

the company selling the products or services under the brand name. A consumer who

prefers a particular brand basically agrees to select that brand pover others based

primarily on his or her perception of the brand and its value. The buyer may even pay a

higher price for the company's goods or services because of his commitment, orpassive agreement, to buy the brand. In return for the buyer's brand loyalty, the

company essentially assures the buyer that the product will confer the benefits

associated with, and expected from, the brand.

In order to benefit from the consumer relationship allowed by branding, a company must

painstakingly strive to earn and maintain brand loyalty. Building a brand requires the

company to gain name recognition for its product, get the consumer to actually try its

brand, and then convince the buyer that the brand is acceptable. Only after those

triumphs can the company hopes to secure some degree of preference for its brand.

Name awareness is a critical factor in achieving brand success. Companies may spend

vast sums of money and effort just to attain recognition of a new brand. But getting


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consumers to recognize a brand name is only half the battle in building brand equity. It

is also important for the company to establish strong, positive associations with the

brand and its use in the minds of consumers. The first step in building brand equity is for

the company to define itself and what it hopes to represent for consumers. The next

step is to make sure that all aspects of the company's operations support this image,

from its product and service offerings to its marketing programs to its customer service

policies. When all of these elements support a distinctive image of the company and its

products in the minds of consumers, the company has established brand equity.

Measuring and Protecting Brand Equity

Although measuring brand equity can be difficult, it can also provide managers with a

good indication of their company's future profitability. "Companies which develop good

measures of their brand equity have an early warning indicator of likely future profit

trends, and can get a much better feel of the dangers of shorttermism," Mitchell noted.

"If brand equity is falling, you're storing up trouble for yourself. If brand equity is rising,

you're investing in future performance, even if it's not showing through in profits today.

Real business performance therefore equals short-term results plus shifts in brandequity."

Unfortunately, measuring brand equity is not as simple as counting the number of

people who recognize a brand name or symbol. It is also dangerous to assume that

simply because its brand is well-known, a company enjoys strong or growing brand

equity. In fact, the most powerful brands can easily be diluted by company missteps or

inconsistent marketing messages. Mitchell explained that the best way to measure

brand equity depends on the particular company and its industry. For example, in some

cases assessing consumer perceptions of product quality may provide the best

indication of brand equity. In other cases, more traditional business measures such as

customer satisfaction or market share may be more closely correlated with brand equity.

Finding an appropriate measure of brand equity is vital in order for companies to ensure


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that they protect this valuable asset. In his Risk Managementarticle, Knapp claims that

managers must remain constantly vigilant to protect their brand equity, since a declining

brand image poses a significant risk to company earnings. If a brand loses its distinctive

image in the minds of consumers, then the branded product becomes more like a

commodity and must compete on the basis of price rather than value. Customer loyalty

decreases, which has a corresponding negative effect on market share and profit

margins. In order to prevent this decline, Knapp recommends that companies consider

the impact of major decisions on consumer perceptions and brand equity. Every action

taken by managementincluding the introduction of new products or advertising

strategies, or the decision to lay off employees or relocate a factoryshould be

assessed for its effect on brand equity.


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Chapter 4

Brand Repositioning


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Brand Repositioning:-

Brand Repositioning - changing the appeal of a brand in order for it to attract new

market segments; brand repositioning may or may not involve modifying the Product .

Brand Repositioning is an attempt to change consumer perceptions of a particular

brand.

Repositioning is a change, principally about triggering the vision, mission and values in

a new direction that is more suited for the brand in future. The location of a brand in

relation to its competitors in some pre-defined space. The space may be defined by

criteria used by consumers, such as "value for money" or "age of consumer" etc.

Following are main factors that play an important role in defining a brand repositioning.

1) Brand Attributes -What the brand delivers through features and benefits to

Consumers

2) Consumer Expectations -What consumers expect to receive from the brand.3) Competitor attributes -What the other brands in the market offer through features

and benefits to consumers.

4) Price -An easily quantifiable factorYour prices vs. your competitors prices.

5) Consumer perceptions -The perceived quality and value of your brand in consumers

minds (i.e., does your brand offer the cheap solution, the good value for the money

solution, the high-end, high-price tag solution, etc.?)


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Chapter 5

Brand Personality


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Brand Personality

Brand Personality is a set of human characteristics associated with a brand.

Personality is how the brand behaves. Gender, age, socio-economic class, psycho

graphic, emotional characteristics. Following are few examples-

Marlboro is masculine while Virginia slims is feminine.

IBM is Older while Apple is Younger.

India Today is old fashioned while Out Look is trendier.

Coke is confirming while Pepsi is irreverent.

Brand Personality, is like human personality, is both distinctive and enduring. In other

word brand personalitys is weighted average of previous impression. In consumers

mind, these impressions merge to form overall concept of what to expect from brand.

Importantly, brand personality is often a sustainable point of differentiation.

Sustainable because it is very difficult to copy a personality. Brand Personality is

eagerly searched by brand strategies and researches. Differences in responses from

different consumers provides useful insights. Personality traits are what the brand will

live and die for. Activities such as events sponsored by the brand will influence its

personality. Ponds sponsoring Femina Miss India contest. Pepsi sponsoring Cricket

matches.

A symbol can be the powerful influence of the brand personality since it can be

controlled and can have extremely strong association. e.g

a) Apples bitten apples.

b) Nike swoosh

c) Metlifes peanuts characteristics.


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The personality thats represents a functional benefits or attribute may be relatively

ineffective if it lacks a visual image established in consumers mind. A country or region

of origin can add credibility to an identity. It can generate a strong personality that

provides a quality cue and a key point of differentiation.


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Chapter 6

Case Study of Brand Maggi


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The Maggi Brand in India


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Case Background

Nestle India Limited is the market leader in Indian Noodle Market with its Maggi Brand

of Noodles which was pioneer brand launched in 1983 in the packaged food market of

India. It took the challenge and established Maggi in Indian market considered to be

conservative and typical about food consumption. It appropriate realization of target

segment, effective positioning and effective promotion and sales made Maggi to

Noodles in India as Xerox it to photocopier.

NIL had introduced sauces, ketchups and soups under Maggi brand to reap benefit of

brand popularity and image and contribute to financial gains by 1990. Maggi also

became successful in sauces, ketchups and soups Market in India. Though NIL tried to

extend to other ready to eat products like pickles, cooking aids and paste, It was

unsuccessful so dumped those products. Maggi Brand of products sustained recession

in 2000 and 2001 in India by introducing economy packets.

To fulfill novelty needs of customers and revitalize Maggi Noodles Brand NIL made

different attempts by introducing new formulation to new taste but customers resistedchange and Maggi had to reintroduce Maggi Noodles in same taste. Maggi Noodle had

till 2005 five product line on noodles with four variant in Maggi 2 Minutes Noodle. In

2006 in compliance with NIL target to be health and Wellness Company Maggi

repositioned it as health and taste food products. NIL has also introduced with taste and

product line in Sauces and Soup Market under Maggi to catch new segment, revitalize

brand, compete with other producers and fulfill expectation of customers.

In 2005 Maggi brand worth was 3.7 billion from 1.7 billion market worth in 1.7 billion in

2003. Maggi Noodle is Market leader with around 80% market share in Noodles/Pasta

and Maggi Sauce is market leader with almost 37% of market share in 2005 in 1.8

billion market of India. Knorr has taken over Maggi in Soup market recently. In 2005


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Maggi was the highest spender in the Promotion and Sales in the Indian Market in the

Noodles Category.

Maggi is competing with Heinz Sauces and Ketchup, Knoor Soups, Kissin Sauces and

Ketchup, Top Ramen, Sunfeast Pasta Wai Wai and 2 PM in corresponding categories

of products and variants Maggi Comes to India teething troubles Maggi noodles was

launched in India in the early1980s. Carlo M. Donati, the present Chairman and

Managing Director of Nestle India Ltd, brought the instant noodle brand to India during

his short stint here in the early eighties. At that time, there was no direct competition.

The first competition came from the ready-to- eat snack segment which included snacks

like samosas, biscuits or maybe peanuts, that were usually the bought out type. The

second competition came from the homemade snacks like pakoras or sandwiches. So

there were no specific buy and make snack! Moreover both competitors had certain

drawbacks in comparison. Snacks like samosas are usually bought out, and outside

food is generally considered unhygienic and unhealthy.

The other competitor, homemade snacks overcame both these problems but had the

disadvantage of extended preparation time at home. Maggi was positioned as the onlyhygienic home made snack! Despite this, Nestl faced difficulties with their sales after

the initial phase. The reason being, the positioning of the product with the wrong target

group.

Nestle had positioned Maggi as a convenience food product aimed at the target group

of working women who hardly found any time for cooking. Unfortunately this could not

hold the product for very long. In the course of many market researches and surveys,

the firm found that children were the biggest consumers of Maggi noodles. Quickly they

repositioned it towards the kids segment with various tools of sales promotion like

colour pencils, sketch pens, fun books, Maggi clubs which worked wonders for the

brand.


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Why the specific Brand positioning?

Maggi was positioned as 2-minute noodles with a punch line that said Fast to cook!

Good to eat! And this gave the implied understanding to the consumer that it was a

between meals snack. The company could have easily positioned the product as a

meal, either lunch or dinner. But, it chose not to do so, because the Indian consumer

mindset did not accept anything other than rice or roti as a meal. Hence trying to

substitute it with noodles would have been futile. The firm did not position it as a ready-

to-eat meal either, as the housewife prefers to make a meal for her kids rather than

buy it for them. And if she can make it in two minutes with very little effort, then

obviously its a hit with her! Whats more, ifkids also love the taste, the product is as

good as sold! So the 2-minute funda coupled with the yummy taste worked!

BRAND STORY

Launched in 5 flavors initially Masala, chicken, Capsicum, sweet & sour, and Lasagna

Maggi had to fight hard to be accepted by Indian consumers with their hard-to-change

eating habits. The packaged food market was very small at this time, Nestle had topromote noodles as a concept, before it could promote Maggi as a brand. It therefore

devised a two-pronged strategy to attract mothers on the convenience plank and lure

kids on the fun plank. Gradually, the market for instant noodles began to grow. The

company also decided to focus on promotions to increase the brand awareness. In the

initial years, Nestle promotional activities for Maggi included schemes offering gifts(

such as toys and utensils) in return for empty noodles pack.

According to analysits the focus on promotion turned out to be the single largest factor

responisible for Maggis rapid acceptance. Nestle\s Managers utilized promotions as

measured to meet their sales target. Gradually, sales promotion became a crutch for

Maggi noodles sales. Later many of the Maggis extensions also made considerable use

of promotional schemes. The focus of all Maggis extensions was more on below the


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BCG Matrix ( Maggi Brand Products in 2010 )

STAR

QUESTION?

CASHCOW

DOG

STARS : Maggi Noodles is the market leader with 80 % market share in Noodles

Market and Maggi Sauces and Ketchup is leader with 37 % market share. The products

are producing cash for the company consistently. The Market is growing by 15 % in the

Product Category of Noodles.


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QUESTIONS ? : Maggi Soups is the category which is in Question mark as the market

is growing and the brand as less market share then market leader Knorr brand of

Hidustan Lever Limited. There are more chances for Maggi Soups to go to dog it does

not stay competitive and increase market share in the category.

SWOT Analysis of Maggi as Brand

Strengths

Established Family Brand

Strong Global Corporate Brand ( NIL)

Specialization in food processing category marketing and distribution in Urban

market

Presence of other product segments of food category : Dairy Products, Chocolate,

Infant food

Pioneer and Leader so 1st mover advantage in Noodles, Sauce, Ketchups and Soup

market

Nestle symbolization of warm, family & shelter.

Research and Development Division in India

New Noodles Plant in Uttarnchal

Weakness

Generic Brand to Noodles in India

Low rural market presence constraints

Uniform Brand for all food category

Brand Proliferation

Opportunities

Growing package and canned food market in India by 15% annually.

High brand awareness of Indian consumer

Other product category like Biscuits, Chips and Ready to Eat Market still unexplored.


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Opportunity to be substitute to other snacks category of food products.

Threats

Competitors with long history in product category Internationally like, Heinz

Sauce and ketchups of Heinz Indian, Top Ramen in Noodle and

Knorr Soups.

Single product focused competitors like Heinz sauce and Wai Wai Noodles.

Less Entry Barriers in the Market segment for product category

ITCs strong base in Indian Market.

Substitute Product to Product Segment.

Possible Alternatives :-

Strengthen and use the Distribution : NIL should focus on distribution channels and

use of the distribution channel to expand its market to Rural India with products

targeted to the market. It is the way it could increase its volume of sales.

Increase the Usage of Maggi Brand Products: Since Maggi Noodles and Maggi

Sauce is market leader it has to adopt strategy to increase the usage of the product to

protect its market share. As it cannot further grow sales drastically in the same

segment, only way is to increase product usage like Noodles for breakfast Ketchups in

biscuits.

Lunch Health Awareness Promotion Campaign : NIL should launch Health

Awareness campaign to educate consumers about the benefits of health food. It could

sponsors health camps, publish health information.

Enter into other product category like Biscuits, Chips and Snacks with New

Brand: To enlarge its domain, NIL should enlarge its product segment. It would spread

economies of scale to customers in the form of price.


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BEST COURSE OF ACTION

Introduce different new brand or acquire emerging brand in biscuits, chips and

snacks category.

Maggi though has been able to differentiate itself from other Noodles, Maggi being

taken as generic to Noodles is hampering other extended product category.

Competitors have high grounds to capture the market differentiating then from being

Maggi. It makes others possible product category vulnerable if lunched under Maggi. So

to avoid proliferation of brand and introduce new products to capture opportunities in

other snacks and ready to eat product category NIL has to introduce new branding

strategy.

As pasta of ITC has been seen as products capturing the market of noodles and Maggi

failing to lunch pasta under Maggi brand also support the argument for new brand

introduction by NIL.

As Indian Market is Brand conscious, other competitors are coming up with more

Indianized brand of products, and as Indian being more aware of their culture and large

segment being typical and conservative about their culture, there care more chances

that NIL would be successful if it create a brand close to Indian culture in wording to

positioning. As India is growing, Old Indian Brands are also regaining momentum

worldwide, NIL could catch the trend of market.

By doing so, NIL could avoid the draw backs associated with the Maggi brand. It could

position new brand in competition with other competitors brand where there is no fit of

product with the Maggi brand. NIL other option is acquiring products manufacturers of

different products like biscuits, chips and snacks as it is very essential for its market


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leader position. Other companies have advantage of such products. ITC has biscuits to

it.

Hindustan Lever has tea to it. India is huge market where distribution advantage plays

major role and economies of scale pays back. So its is important for NIL to concentrate

on other ready to eat category to benefit consumers from economies of scale reflect in

price.

Repositioning of Maggi

Nestl India Ltd. (NIL), the Indian subsidiary of the global FMCG major, Nestl SA,

introduced the Maggi brand in India in 1982, with its launch of Maggi 2 Minute

Noodles,an instant noodles product. With the launch of Maggi noodles, NIL created an

entirely new food category - instant noodles - in the Indian packaged food market.

Because of its first-mover advantage, NIL successfully managed to retain its leadership

in the instant noodles category even until the early 2000s.

Over the years, NIL extended the Maggi brand to a variety of culinary products like

soups, sauces and ketchups, and cooking aids among others. However, these product

extensions were not as successful as the instant noodles. In 2005, NIL started offering arange of new 'healthy' products under the Maggi brand, in a bid to attract health-

conscious consumers.

This case looks at the various phases in the product life cycle of Maggi noodles in India.

It talks about the various measures taken by NIL to keep the Maggi brand fresh in the

minds of Indian consumers. The case also talks about the various extensions of the

Maggi brand and tries to analyze why only the sauces and ketchups category, among

all the other product extensions, managed to succeed. Maggi became successful

because it understood consumers . The brand never wanted to change Indian

consumer's habit. It did not had ambitions about changing Indian's breakfast or dinner

preferences. What Maggi did was to slowly attach itself to Indian consumer's need

without disruption.


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Maggi was also closely watching consumer preferences. When consumers wanted

healthy food, Maggi launched Atta Noodle variants that was healthy . More importantly

this move addressed the concerns of Homemakers. The brand extended itself to

multiple segment but without diluting the core brand equity. Maggi did change the

masala [taste maker]few years back and sales declined and the company was forced to

go back to the old masala and nestle ran an ad campaign ,that old taste is back. The

resultant yellow masala-flavoured spongy strands were wolfed down by us and before

you could say noodles, Maggi became a quintessential Indian food. As a consumer,

Maggi has been part of numerous memorable experiences of my life.

From being a midnight snack to helping with early hours of mugging for exams to eating

plates of cheese and anda Maggi at the night canteen after an evening of drunken

revelry. From hot Maggi after getting drenched in the rain to it being the first cooking

experience for numerous youngsters when the folks were away. From carrying packets

of it on a trek to carrying packets for friends who live abroad (they insist that the Indian

flavours are unique). Everyone, rich or poor, has his or her own Maggi tale to tell. As an

observer of branding and advertising too, the brands a shoo-in for the India MarketingHall of Fame, if such a hall were ever to be constituted. For starters this was the brand

that pioneered the entire category of packaged food in India. Not easy in a country

where freshly cooked food was the norm.

The outstanding sampling exercise apart, the first commercial for the brand was one of

the most memorable commercials of its time (from that great ad agency of the 1980s,

HTA Delhi). It was probably the first example of Hinglish in a mainstream commercial

from the opening Mummy bhook lagi hai to the tag line that went Fast to cook and

good to eat, Maggi makes a tasty treat and twominutes became a part of the popular

lexicon.


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It further discusses the measures taken by NIL to reposition Maggi as a 'health product'.

The case ends with a discussion whether NIL would be successful in sustaining this

new image for Maggi in the market.


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References


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References

http://www.google.co.in/

http://www.wikipedia.org/

http://www.nestle.in/

http://books.google.com
http://www.google.co.in/http://www.google.co.in/http://www.wikipedia.org/http://www.wikipedia.org/http://www.nestle.in/http://www.nestle.in/http://books.google.com/http://books.google.com/http://books.google.com/http://www.nestle.in/http://www.wikipedia.org/http://www.google.co.in/

Documents

MM Branding