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Brand Study: Maggi 1 2012 A Project Report On “ Brand Study ” Project Analyzed
Brand Study: Maggi
1
2012
A Project Report On
“ Brand Study ”
Project Analyzed & Documented By :
Dixita Porwal, PGP/FW/10-12/ISBE-A
Pratik Gandhi, UGP/FW/09-12/IIPM
Rajwin Patel, UGP/FW/10-12/ISBE
Sagar A. Agrawal, UGP/FW/09-12/IIPM
Sneha Chandan, PGP/FW/10-12/ISBE-B

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ACKNOWLEDGMENT

We heartily thank our Project in-charge, Prof. Avinash Murkute,Faculty IIPM,

Pune, whose encouragement, guidance and support from the initial to the final

level enabled us to develop an understanding of the subject. We are grateful for

Sir‘s contribution towards the execution of our project.

Lastly, we offer our regards and blessings to all of those who supported us in any

respect during the completion of the Research.

we offer our regards and blessings to all of those who supported us in any respect

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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

27

12

Management Strategies

30

4Ps EvaluationJingles And Taglines 27 12 Management Strategies 30 Integrated Marketing Communication STPD Analysis SWAT

Integrated Marketing Communication27 12 Management Strategies 30 4Ps Evaluation STPD Analysis SWAT Analysis Brand Prism 13 Sales And

STPD Analysis30 4Ps Evaluation Integrated Marketing Communication SWAT Analysis Brand Prism 13 Sales And Marketing Channel

SWAT Analysis30 4Ps Evaluation Integrated Marketing Communication STPD Analysis Brand Prism 13 Sales And Marketing Channel 44

Brand Prism30 4Ps Evaluation Integrated Marketing Communication STPD Analysis SWAT Analysis 13 Sales And Marketing Channel 44

13

Sales And Marketing Channel

44

Marketing Communication STPD Analysis SWAT Analysis Brand Prism 13 Sales And Marketing Channel 44

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14

Distribution Channel

45

15

Market Penetration Strategies

47

16

Taste And Preferences Of Consumer

49

17

Demography and psychograph of consumers

52

18

Research Methodology

53

19

Data Collecting Plan

55

20

Comparative Analysis Based On Questionnaire

60

21

Analysis

65

21

Success Factors Of Maggi

66

22

Conclusion

68

23

Recommendation

70

24

Bibliography

71

Success Factors Of Maggi 66 22 Conclusion 68 23 Recommendation 70 24 Bibliography 71

Brand Study: Maggi

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EXECUTIVE SUMMARY

The report entitled A Study of “Brand Maggi” deals with the study of Maggi

brand that was launched in India in the year 1983, by Nestle India Limited, which

became synonymous with noodles. This research tries to find awareness of

Maggi& its product line with that of its competitors. The introduction provides the

company background, operational & other important information provided by the

company, which would assist in taking the decision for the right brand extension

strategy for Maggi.

provided by the company, which would assist in taking the decision for the right brand extension

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INTRODUCTION

Background Nestle India ltd:-

Nestle India Limited (NIL) is the Indian subsidiary of the global FMCG major, Nestle

SA. Nestle India Ltd. introduced Maggi Brand to the Indian consumers with the launch of

Maggi 2 Minute Noodles, an instant food product, in 1982. With the launch of Maggi

noodles, Nestle India Ltd. created an entirely new food category - instant noodles - in the

Indian packaged food market. Nestlé, which world knows as cautious and conservatory

company is a Swiss originated 140 years old Multinational. The man at the helm is Swiss

national Carlo Donati, an all inspiration and image of the company. His philosophy is

‗bottom line dictating top line‘ based on delegation and decentralization. It resulted from

a merger in 1905 between the Anglo-Swiss Milk Company for milk products established

in 1866 by the Page Brothers in Cham, Switzerland and the Farine Lactée Henri Nestlé

Company set up in 1867 by Henri Nestlé to provide an infant food product. Nestlé India‘s

business objective and that of its management and employees is to manufacture and

market the Company‘s products in such a way as to create value that can be sustained

over 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

(42.5%), beverages (29.3 %), processed foods (14.4 %), chocolate and confectionary (13.8 %). Nestle India plans

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business into similar and diversified product categories. With an Employee strength of

over 3000 and turnover of US$ 497 million in 2003, Nestle India is one of the leading

companies in the FMCG space in India. The company is acknowledged among India‘s

most respected companies and among the top Wealth Creators of India.

in India. The company is acknowledged among India‘s most respected companies and among the top Wealth

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THE COMPANY'S HISTORY

Year 1870 -The Swiss Julius Michaël Johannes Maggi (1846-1912) inherited the family business: a mill in Kemptal, near Zurich.

Year 1886 - Several women were factory workers, thus the time available for housework and the preparation of meals was considerably reduced, and working class families suffered from poor nutrition. In view of this state of affairs, the doctor Schuler recommended the wide use of dried vegetables: peas and beans, given their rich nutritive value. Julius Maggi produced appliances for roasting and grinding these vegetables, to make flour from peas, beans, lentils etc., and enabling housewives to make a quick nourishing soup.

Year 1900 - At the Universal Exhibition, Maggi won several medals and grand prizes. Jules Magi set up home in Paris. The French head office was on the Place de l'Opéra, and the factory on the Boulevard Arago. Maggi now had depositories in Paris, Berlin, Singen (Germany), Vienna and Bregenz (Austria). A number of advertising 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 for Nestle and Maggi products in France. Maggi now had eleven factories throughout the world.

production and marketing for Nestle and Maggi products in France. Maggi now had eleven factories throughout

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Year 1982 - Nestle India Ltd. introduced Maggi to the Indian consumers with the launch of Maggi 2 Minute Noodles, an instant food product, in 1982. With the launch 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 low fat Bouillons, Bouquet Garni ("a little extra to add taste and give your dishes a festive 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 magnificent soufflŽ, on the "AFTER" page, the same man holds the Maggi sachet in his handsÉ "The magic formula to a successful soufflé!"

page, the same man holds the Maggi sachet in his handsÉ "The magic formula to a

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MANAGEMENT STRUCTURE

National Sales Manager

Regional Sales Manager

Consumer Service Area Manager System Support Event Manager Event Manager Territory in- System Support charge
Consumer Service
Area Manager
System Support
Event
Manager
Event Manager
Territory in-
System Support
charge
Manager
Leader
Sales
Associates
Distributer
Event Manager Event Manager Territory in- System Support charge Manager Leader Sales Associates Distributer

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CSR ACTIVITIES

Nestlé has been a partner in India's growth for over nine decades now and has built a very special relationship of trust and commitment with the people of India. The Company's activities in India have facilitated direct and indirect employment and provides livelihood to about one million people including farmers, suppliers of packaging materials, services and other goods.

Nestlé India manufactures products of truly international quality under internationally famous brand names such as NESCAFÉ, MAGGI, MILKYBAR, MILO, KIT KAT, BAR-ONE, MILKMAID and NESTEA and in recent years the Company has also introduced products of daily consumption and use such as NESTLÉ Milk, NESTLÉ SLIM Milk, NESTLÉ Fresh 'n' Natural Dahi and NESTLÉ Jeera Raita.

Nestle in the community:-

Nestlé India has always focused on long term, sustainable and profitable growth and helped communities around its factories to improve their quality of life in a similar manner. Nestlé Agricultural Services has used the experience gained by Nestlé across the world to set up a system of direct and efficient contact with the farmers. Company veterinarians and agronomists supervise the milk routes and advise farmers on various issues including proper feed for the herds. Milk storage facilities have been set up close to the farmers. Veterinary services are provided free, and medicines provided at wholesale cost. The company assists farmers in artificial insemination programs for their cattle, provides subsidy and helps them in procuring loans.For more on Nestlé Agricultural Services

programs for their cattle, provides subsidy and helps them in procuring loans.For more on Nestlé Agricultural

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Safe Drinking Water:-

Water is a scarce resource. In India, availability of clean drinking water is a major concern for many communities. Almost 200 million people do not have access to clean drinking water. Nestlé India is committed to improving the situation and believes that the first step is to create awareness in the communities around its factories. A key focus area of our corporate initiatives is to help provide Clean Drinking 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 and encourages the communities around its factories to send their children to school. Nestlé India employees have developed a special play 'Let Us Go to School' for this 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 adopting good dairying practices in dairy farms and regularly conduct special programs that help them. Nestle India supports local schools, helps in the maintenance of public parks and green belts, and facilitates blood donation camps and health awareness programs. The key messages of conservation, hygiene, health and wellness are progressively built into the communities where the Company is present. All these initiatives strengthen the bond between Nestlé India and the community.

where the Company is present. All these initiatives strengthen the bond between Nestlé India and the

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"Creating Shared Value is a very different approach to corporate social responsibility (CSR), because it is not focused on meeting a set of standard external criteria, or on philanthropy. The idea of winners and losers doesn‘t fit this model of CSR."

of standard external criteria, or on philanthropy. The idea of winners and losers doesn ‘t fit

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INTRODUCTION TO THE PROJECT

Brand 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 of industrial food production, aiming at the improvement of the nutrition of worker families. Over time the scope of MAGGI has been extended from a predominantly dehydrated cooking aid brand towards a general savory food brand including many types of ready meals and also frozen food. This is in line with the fact that people all 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 in theearly1980s. 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

unhealthy. The other competitor, ‗homemade‘ snacks overcame both these problems but had the disadvantage of extended

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preparation time at home. Maggi was positioned as the only hygienic home made snack! Despite this, Nestlé faced difficulties with their sales after the initial phase. The sole 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 color pencils, sketch pens, fun books, Maggi clubs which worked wonders for the brand.

tools of sales promotion like color pencils, sketch pens, fun books, Maggi clubs which worked wonders

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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 to promote 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 prom otions 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 analyses the focus on promotion turned out to be the single largest factor responsible for Maggi‘s 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 Maggi‘s extensions also made considerable use of promotional schemes. The focus of all Maggi‘s extensions was more on below the line activities rather than direct communication. In addition to promotional activities, Maggi associated itself with mainstream television programme and advertised heavily on kids programme and channels. After its advertisements with taglines like “mummi bhookh lagi hai,bas do minute” and fast to cook good to eat Maggi‘s popularity became highly attributed to its ―extremely high appeal to children‖. As a result, Maggi‘s annual growth reportedly touched 15% during its initial years.

high appeal to children‖. As a result, Maggi‘s annual growth reportedly touched 15% during its initial

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MAGGI’S BRAND EXTENSION

In order to stretch Maggi‘s brand to include Indian ethnic foods the company tied up with a Pune based ―Chordia foods‖ to launch pickles under the year 1995. The company also tied up with Indian foods fermentation (IFF), a Chennai based food company 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 lot of untapped potential in the market for ready to use south Indian market.

In 1996, products from these two ventures received lukewarm response from the market; sales were rather poor in the regions in which they were launched. 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. Maggi noodles performed badly in 1996. Despite slow sales in the previous two years, Nestlé had set a sales target of 25,000 tonnes for the year. However, Maggi couldn‘t cross even 14,000 tonnes. Adding to the company woes was the failure of Maggi Tonight‘s Special, a range of cooking sauces aimed at providing ‗restaurant-like-taste‘ to food cooked at home. The range included offerings such as Butter Chicken gravy and tomato sauce for pizzas.

Nestlé launched ‗Maggi Macaroni‘ in July 1997. According to analysts, Maggi Macaroni was launched partly to deal with the growing popularity of competing noodles brand Top Ramen. Maggi Macaroni was made available in three flavors, Tomato, Chicken, and Masala. The company expected to repeat the success of Maggi noodles with Maggi Macaroni. As with most of its product launches, Maggi Macaroni‘s launch was backed by a multi-media advertisement campaign including radio, television,

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outdoors and print media with the tagline, ‗Tum Roz Baby.

Due to failure Nestlé had to withdraw Maggi Macaroni completely from the market.

Nestlé had not even recovered from Macaroni‘s dismal performance, 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, which were turning out to the ‗rare‘ successful extensions of Maggi. These products were supported by a popular advertisement campaign for the Maggi Hot & Sweet sauce brand. These humorous advertisements, featuring actors Pankaj Kapoor and Javed Jafri, used the tagline, ‗It‘s different.‘ However, during mid- 1997, HLL began promoting its Kissan range of sauces aggressively and launched various innovative variants in the category.

Nestlé responded with a higher thrust on advertising and different size packs at different 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 operational costs of Maggi noodles had increased considerably, forcing the company to increase the retail price. By early 1997, the price of a single pack had reached Rs 10. Volumes were still languishing between 13,000-14,000 tonnes

By early 1997, the price of a single pack had reached Rs 10. Volumes were still

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PRODUCT PORT FOLIO OF THE BRAND:

“MAGGI”

The product mix of Maggi is divided into various categories defined below. The company 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
Maggi Dal Atta Noodles ( Sambhar taste) Maggi 2-Minute Noodle ( Masala , Chicken, Curry and Tomato) Vegetable Atta Maggi Noodles Maggi Rice
Vegetable Atta Maggi Noodles Curry and Tomato) Maggi Dal Atta Noodles ( Sambhar taste) Maggi Rice Noodles (Lemon Masala, Chilly
Maggi Rice Noodles (Lemon Masala, Chilly Chow and Shahi Pulao) Tomato) Maggi Dal Atta Noodles ( Sambhar taste) Vegetable Atta Maggi Noodles Maggi Cuppa mania (Masala
Maggi Cuppa mania (Masala yo, Chilli chow yo)Atta Noodles ( Sambhar taste) Vegetable Atta Maggi Noodles Maggi Rice Noodles (Lemon Masala, Chilly Chow

2. Sauces

Maggi Cuppa mania (Masala yo, Chilli chow yo) 2. Sauces Teekha masala Tomoto chatpat Imli khata

Teekha masala Tomoto chatpat Imli khata mitha Tomato ketchup Hot and sweet Tomato pudina Ginger, Garlic &
Tomoto chatpat Teekha masala Imli khata mitha Tomato ketchup Hot and sweet Tomato pudina Ginger, Garlic & Coriander
Imli khata mitha Teekha masala Tomoto chatpat Tomato ketchup Hot and sweet Tomato pudina Ginger, Garlic & Coriander Maggi
Tomato ketchup Teekha masala Tomoto chatpat Imli khata mitha Hot and sweet Tomato pudina Ginger, Garlic & Coriander
Hot and sweet Teekha masala Tomoto chatpat Imli khata mitha Tomato ketchup Tomato pudina Ginger, Garlic & Coriander Maggi
Tomato pudina Tomoto chatpat Imli khata mitha Tomato ketchup Hot and sweet Ginger, Garlic & Coriander Maggi Oriental
Ginger, Garlic & Coriander Imli khata mitha Tomato ketchup Hot and sweet Tomato pudina Maggi Oriental Chilli Garlic Ginger, Garlic
Maggi Oriental Chilli Garlic Imli khata mitha Tomato ketchup Hot and sweet Tomato pudina Ginger, Garlic & Coriander Ginger, Garlic
Ginger, Garlic & CorianderImli khata mitha Tomato ketchup Hot and sweet Tomato pudina Ginger, Garlic & Coriander Maggi Oriental

and sweet Tomato pudina Ginger, Garlic & Coriander Maggi Oriental Chilli Garlic Ginger, Garlic & Coriander
and sweet Tomato pudina Ginger, Garlic & Coriander Maggi Oriental Chilli Garlic Ginger, Garlic & Coriander
and sweet Tomato pudina Ginger, Garlic & Coriander Maggi Oriental Chilli Garlic Ginger, Garlic & Coriander

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3. Maggi Pichko

TomatoBrand Study : Maggi 20 3. Maggi Pichko Imli 4. Soups Healthy Chef Style - Cream

ImliBrand Study : Maggi 20 3. Maggi Pichko Tomato 4. Soups Healthy Chef Style - Cream

4. Soups Healthy

Chef Style: Maggi 20 3. Maggi Pichko Tomato Imli 4. Soups Healthy - Cream Mushroom - Sweet

- Cream Mushroom

- Sweet Sour Tomato Noodles

- Tangy Tomato Vegetables

Home Style- Sweet Sour Tomato Noodles - Tangy Tomato Vegetables - Creamy Chicken - Mixed Vegetable -

- Creamy Chicken

- Mixed Vegetable

- Rich Tomato

Chinese StyleStyle - Creamy Chicken - Mixed Vegetable - Rich Tomato - Chinese Hot Sour Chicken -

- Chinese Hot Sour Chicken

- Chinese Sweet Corn Chicken

- Chinese Sweet Corn Vegetables

- Chinese Hot & Sour Vegetables

Hot Sour Chicken - Chinese Sweet Corn Chicken - Chinese Sweet Corn Vegetables - Chinese Hot
Hot Sour Chicken - Chinese Sweet Corn Chicken - Chinese Sweet Corn Vegetables - Chinese Hot
Hot Sour Chicken - Chinese Sweet Corn Chicken - Chinese Sweet Corn Vegetables - Chinese Hot
Hot Sour Chicken - Chinese Sweet Corn Chicken - Chinese Sweet Corn Vegetables - Chinese Hot
Hot Sour Chicken - Chinese Sweet Corn Chicken - Chinese Sweet Corn Vegetables - Chinese Hot

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5. Maggi Soup Sanjivni

AmlaBrand Study : Maggi 21 5. Maggi Soup Sanjivni Badam Spinach Dal Tomato 6. Maggi Bhuna

BadamBrand Study : Maggi 21 5. Maggi Soup Sanjivni Amla Spinach Dal Tomato 6. Maggi Bhuna

SpinachBrand Study : Maggi 21 5. Maggi Soup Sanjivni Amla Badam Dal Tomato 6. Maggi Bhuna

Dal: Maggi 21 5. Maggi Soup Sanjivni Amla Badam Spinach Tomato 6. Maggi Bhuna Masala Bhuna

Tomato: Maggi 21 5. Maggi Soup Sanjivni Amla Badam Spinach Dal 6. Maggi Bhuna Masala Bhuna

6. Maggi Bhuna Masala

Bhuna masala for gravy dishes Bhuna masala for Vegetable Dal
Bhuna masala for Vegetable DalBhuna masala for gravy dishes

7. Maggi Magic Cubes

Chicken Vegetarian masala
Vegetarian masalaChicken

8) Maggi Pasta: -

Whitefor gravy dishes Bhuna masala for Vegetable Dal 7. Maggi Magic Cubes Chicken Vegetarian masala 8)

Redfor gravy dishes Bhuna masala for Vegetable Dal 7. Maggi Magic Cubes Chicken Vegetarian masala 8)

gravy dishes Bhuna masala for Vegetable Dal 7. Maggi Magic Cubes Chicken Vegetarian masala 8) Maggi
gravy dishes Bhuna masala for Vegetable Dal 7. Maggi Magic Cubes Chicken Vegetarian masala 8) Maggi
gravy dishes Bhuna masala for Vegetable Dal 7. Maggi Magic Cubes Chicken Vegetarian masala 8) Maggi
gravy dishes Bhuna masala for Vegetable Dal 7. Maggi Magic Cubes Chicken Vegetarian masala 8) Maggi
gravy dishes Bhuna masala for Vegetable Dal 7. Maggi Magic Cubes Chicken Vegetarian masala 8) Maggi

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BRAND NAME

Brand name is a Promise

It says 'you know the name, you can trust the promise'. As all promises, it is trusted

only as far as those promises are met. Trust is a critical first step and brands aim to accelerate that step leveraging the implied promise of the brand. The brand's most valuable asset isits name.

A brand name encapsulates all of the content intellectual and emotional that

people associate with the product. Names make this process of association easier than others. With all of the challenges business owners face, it makes sense to use

every 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 based Nestle 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 value

of

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 the brand“named”.

Well the history of this brand traces back to the 19 th century when industrial revolution in Switzerland created jobs for women, who were therefore left with very little time to prepare meals. Due to this growing problem Swiss Public

jobs for women, who were therefore left with very little time to prepare meals. Due to

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Welfare Society asked a miller named Julius Maggi to create a vegetable food product that would be quick to prepare and easy to digest. Julius, the son of an Italian immigrant came up with a formula to bring added taste to meals in 1863,which became popular among the working class families because of their convenience and nutritional value. In 1890, Julius founded the company society Anonym pour la Fabrication des Products Alimentative MAGGI (SAF) in Germany 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 the world. The formula clicked well & “Maggi” became a brand name. That‘s precisely what is required in making a product a ―brand‖. The brand has grown to an 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" of our daily life and that too for last 25 years. In India 'Maggi Noodles'is recognized as a genre of products known as Instant noodles. Maggi Noodles has literally revolutionalized the way we cooked & eat food. There was no single food product available in world that could be cooked in less than "2-Minutes" without much of recipe. It was a brilliant idea of Nestle Team, which later created a separate market of Instant Noodles itself. Hardly anyone could think of the revolution brought by a simple food product in our lives. It is enormous. And even after 25 years of dominating more than 90% share of market, there is virtually any competition. So people often say, "There is virtually no room for any new thing in Instant Noodles". This is exactly what a strong brand name does over the years to the product.Maggi is just not a food product. It is more than it. It is an original concept. It is lifestyle. It is a new food habit. It is a great idea. It is the cheapest

more than it. It is an original concept. It is lifestyle. It is a new food

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branded food item available in market.

"Creating a superb taste needs a vision of adding value to food habits of people, it is just more than satisfying crave". ―MAGGI‖ is the name that serves it impeccably. Maggi is the name, which showed the power of marketing. This brand made noodles a household product.

When many foreign food brands are trying to change Indian consumer's taste, Maggi bought in a silent revolution. To mark its silver jubilee, Maggi is running a campaign " Me & Meri Maggi".The name slowly ―attached‖ itself to the sentiments of Indian consumer's need without disruption. Maggi personifies the basic principles of understanding consumers, innovating and investing in the brand.

disruption. Maggi personifies the basic principles of understanding consumers, innovating and investing in the brand.

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BRAND LOGO

Brand Study : Maggi 25 BRAND LOGO A logo is a mathematical element (ideogram, symbol, emblem,

A logo is a mathematical element (ideogram, symbol, emblem, icon, sign) that, together with its logotype (a uniquely set and arranged typeface) forms a trademark or commercial brand. Typically, a logo's design is for immediate recognition.

The logo is one aspect of a company's commercial brand, or economic or academic entity, and its shapes, colors, fonts, and images usually are different from others in a similar market. Logos are also used to identify organizations and other non-commercial entities.

Today there are many corporations, products, brands, services, agencies and other entities using an ideogram (sign, icon) or an emblem (symbol) or a combination of sign and emblem as a logo. As a result, only a few of the thousands of ideograms people see are recognized without a name.

It is sensible to use an ideogram as a logo, even with the name, if people will not duly identify it. Currently, the usage of both images (ideograms) and the company

even with the name, if people will not duly identify it. Currently, the usage of both

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name (logotype) to emphasize the name instead of the supporting graphic portion and making it unique, by it non-formulaic construction via the designable use of its letters, colors and any additional graphic elements.

Carlo Donati gave the ―Maggi‖ word to the product range to continue the image of ―healthy and fast to cook‖ food for workingwomen which was introduced by Julius Maggi Etienne MauriceFirmin Bouisset (September 2, 1859 1925) was a French painter, poster, artist and printmaker who developed and designed the logo of Maggi

2, 1859 – 1925) was a French painter, poster, artist and printmaker who developed and designed

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JINGLES AND TAGLINES

A jingle is a memorable slogan, set to an engaging melody, mainly

broadcast on radio and largely used today on television commercials. It is a very useful tool used by companies today as far as retention of the product

after the commercial is concerned. Cultivating strong jingle creative can

offer an effective way to cultivate brand ubiquity without crossing the line

of obtrusiveness.

The real power of the jingle is viral. Jingles communicate a broad theme in a simple enough way that it can be consumed "in the midst" of other media and activities.

A tag line is a three to seven word phrase that accompanies your logo. It expresses your company's most important benefits and/or what you want your customers to remember about working with you. Think of it as the words you want to linger in your target customer's mind about you and what you have to offer.

Great tag lines appear to be effortlessly created because they just seem to flow. In fact, creating and refining one takes time, just like designing a great logo. The benefits of taking the time to craft a great tag line lie with the tag line's stickiness. Great tag lines stick in your memory.

Creating a great jingle and distinctive tag line are critical in creating a brand that provides the perfect image for your company and great ones just might

be memorable enough to give your company the beachfront property in the

minds of your customers that leaves them thinking only of you.

enough to give your company the beachfront property in the minds of your customers that leaves

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Effective use of Tag line and jingles by Maggi :-

Maggi has faced lot of hurdles in its journey in India. The basic problem the brand faced is the Indian Psyche. Indian Palate is not too adventurous in terms of trying new tastes. So a new product with a new taste that too from a different culture had a great deal of difficulty in appealing to Indian market. Initially Nestle tried to position the Noodles in the platform of convenience targeting the working women. But it found that the sales are not picking up despite heavy promotion. Research then showed that Kids were the largest consumers of the brand. Realizing this, Nestle repositioned the brand towards the kids using sales promotions and smart advertising. Now Maggi is the number one brand in the noodles.

Maggi was positioned as ‗2-minute noodles‘ with a punch line that said ‗Fast to Cook Good to Eat‘. The jingle ―Mummy bhook lagi, Bas do Minute, Maggi Maggi Magge‖ quickly grasped the attention of consumers all over India. 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 it‘s a hit with her. The kids also loved the taste, thus the ‗2- minute‘ fundacoupled with the ‗yummy taste‘ worked. NIL‘s promotions positioned the noodles as ―convenience product‖, for mothers and as a ―fun‖ product for children.

promotions positioned the noodles as ―convenience product‖, for mothers and as a ―fun‖ product for children.

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The tag lines such as ―Fast to Cook Good to Eat‖, ―2-minute noodles‖ and ―Taste Bhi, Health Bhi‖ are the strong brand elements of Maggi, which have helped in building brand equity.

EG:-

of Maggi, which have helped in building brand equity. EG:- Maggi Cuppa Mania Just add garam

Maggi Cuppa Mania Just add garam paani and carry on jaaani!

Nestle has widened its offering of the Maggi brand of noodles with the launch of Maggi Cuppa Mania instant noodles. The company hopes that its instant noodles will be an instant hit with busy executives who are short on time, and consequently the product has been launched with the tag line Just add garam paani and carry on jaaani! The product, launched in two variants ‗Masala Yo !‘ and ‗Chilli Chow Yo!‘ has been packaged with a disposable fork to make it an even easier snacking option.

Yo !‘ and ‗Chilli Chow Yo!‘ has been packaged with a disposable fork to make it

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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 –
Affordable by all income groups maggi, it should continue to position itself in the Snacks. Differentiated packaging Lower price point strategy
Differentiated packaging itself in the Snacks. Affordable by all income groups Lower price point strategy Millipack for Rs.5
Lower price point strategy Affordable by all income groups Differentiated packaging Millipack for Rs.5 – Targetting the lower middle class
Millipack for Rs.5 groups Differentiated packaging Lower price point strategy – Targetting the lower middle class as well as 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 as well as those who want to consume in lesser quantity. Multi packs at cheaper price
Multi packs at cheaper price per noodles of 100gm pack to 95gm, keeping price as Rs. 10 only Healthier products at higher price.
Healthier products at higher price. Differentiated packaging.volume than price - Reduction of 100gm pack to 95gm, keeping price as Rs. 10 only

Place: -

Wide distribution network. Limited penetration in rural areas. The company has a complex supply chain process. Target hawkers/roadside
Limited penetration in rural areas. Wide distribution network. The company has a complex supply chain process. Target hawkers/roadside eating joints The
The company has a complex supply chain process. distribution network. Limited penetration in rural areas. Target hawkers/roadside eating joints The distribution
Target hawkers/roadside eating joints rural areas. The company has a complex supply chain process. The distribution network is well spread
The distribution network is well spread supply chain process. Target hawkers/roadside eating joints Easily available in all kirana stores, retail store etc.
Easily available in all kirana stores, retail store etc. Target hawkers/roadside eating joints The distribution network is well spread Sales territories, Warehousing system.
Sales territories, Warehousing system.eating joints The distribution network is well spread Easily available in all kirana stores, retail store

network is well spread Easily available in all kirana stores, retail store etc. Sales territories, Warehousing

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Product: -

Quality Models and sizes
Models and sizesQuality

PackingStudy : Maggi 31 Product: - Quality Models and sizes Brands Service Promotion: - Nestle also

Brands: Maggi 31 Product: - Quality Models and sizes Packing Service Promotion: - Nestle also followed

Service31 Product: - Quality Models and sizes Packing Brands Promotion: - Nestle also followed up these

Promotion: -

Nestle also followed up these launches with ‗It‘s different‘ ad campaigns. campaigns.

Nestle was focusing their ads based on children's taste and health.up these launches with ‗It‘s different‘ ad campaigns. In addition to promotional activities, Maggi associated

In addition to promotional activities, Maggi associated itself with mainstream television programme and advertised heavily on kids programme and channels.focusing their ads based on children's taste and health. Maggi is now targeting its products at

Maggi is now targeting its products at the entire family and not only kids. Maggi has recently launched ―MAIN AUR MERI MAGGI‖ campaign in commensuration of 25 years of
its products at the entire family and not only kids. Maggi has recently launched ―MAIN AUR Maggi has recently launched ―MAIN AUR MERI MAGGI‖ campaign in commensuration of 25 years of Maggi in India.

kids. Maggi has recently launched ―MAIN AUR MERI MAGGI‖ campaign in commensuration of 25 years of

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Packaging (Often referred as 5 th 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 substantially to our current standards of living. It‘s state-of-the-art packaging that has made certain items conveniently available to the general public and easy to handle. In the past hundred or so years, the demands producers and consumers place on packaging have developed significantly. While initially the transportation and protection of goods were the primary functions served by packaging, today, it also acts as a brand-defining marketing instrument as well as an innovative and practical shell with ever-new advantages for consumers

Contemporary 21st century industrialized societies survive on a diet of the many, highly popular TV cooking series. At the same time, the number of pre-cooked, easily manageable dishes in which packaging plays a pivotal role is growing increasingly in retail outlets. Whether discounter or gourmet store, all retailers know the value of convenience. And convenience is made possible by sophisticated, market-oriented packaging solutions, which often merely need to be popped in the oven or microwave, contents and all, before serving.and practical shell with ever-new advantages for consumers Packaging innovations can be seen from two varying

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).packaging solutions, which often merely need to be popped in the oven or microwave, contents and

benefit to the consumers and second would be when it enables trials and increased usage by

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Brand Study : Maggi 33 The ―Expected product benefit‖ is proper pac kaging to ensure customers

The ―Expected product benefit‖ is proper packaging to ensure customers a good quality, fully packed seasoning tastemaker at affordable price. The beliefs associated with a brand constitute the brand image, and the customer may have uninformed beliefs which are likely to generate a negative image about the brand. The marketer must ensure that consumers have all relevant and correct information about the brand to facilitate formation of a positive brand image. Certain beliefs developed are neutral and are more dependent on the situation or circumstances of purchase or usage ofthe product.

beliefs developed are neutral and are more dependent on the situation or circumstances of purchase or

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Brand strategy- IMC

Brand Study : Maggi 34 Brand strategy- IMC It is integration of all marketing tools, approached

It is integration of all marketing tools, approached and resources within a company which maximizes impact on consumer mind and which results into maximum profit at minimum cost.

resources within a company which maximizes impact on consumer mind and which results into maximum profit

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Promotional tools of communication

Initial Strategies of Maggi:-

Maggi has faced lot of hurdles in its journey in indiatools of communication Initial Strategies of Maggi:- The basic problem the brand faced is the Indian

The basic problem the brand faced is the Indian psycheMaggi has faced lot of hurdles in its journey in india Initially Nestle tried to position

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 childre n. 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.

further by distributing free samples. Giving gifts on return of empty packets, etc. Effective Tagline Communication.

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Different communication media used by Maggi

TV Ads:-

Initially maggi was targeted at the workingwomen and later the upper middle class kids. Maggi was a sponsor for Hum Log, a popular television show on Doordarshan, India‘s sole channel in 1984. Maggi is now targeting its products at the entire family and not only kids. Maggi has recently launched ―Main Aur Meri Maggi‖ campaign in commensurate of 25yrs of maggi in India.

Print Ads: -

Maggi does not focus heavily on print media. During its launch since its initial target audience was mother and kids. Some adv in the print media were used to highlight the convenience factor of maggi.‘

Recently maggi came out with advertisements in some weekly magazines for its new atta noodles and rice noodles varients. Maggi rice noodles mania had 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 other media.

advertisement grew by 42% share in 2010. Maggi‘s expenditure on print media is much lower compared

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Sales Promotion: -

To introduce new productsBrand Study : Maggi 37 Sales Promotion: - To attract new customer and retain the existing

To attract new customer and retain the existing ones To maintain sales of seasonal products
To maintain sales of seasonal productsTo attract new customer and retain the existing ones

To meet challenge of competition toolsthe existing ones To maintain sales of seasonal products Exchange schemes Price – Off offer Scratch

Exchange schemes Price – Off offer
Price Exchange schemes – Off offer Off offer

Scratch and win offerof competition tools Exchange schemes Price – Off offer Discount offered to retailers: - 7%discount on

Discount 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 is coming up with schemes like giving one soup pack with 8-piece pack. In past company had promotional schemes like 4 piece pack with that of Rs.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 large pack thus they try to project big size at convenience place.

that for a retail outlet the more value is generated large pack thus they try to

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Public Relation: -

The Maggi Club the children under 14 were invited by press adv and distribution of leaflets to become a member of maggi club ny sending logos cut from 5 empty maggi wrappers. Maggi projected it as ―maggi clubbers are fun lovers‖ and intended to use it as reference group. Benefit offered to maggi- clubbers are various games like snap safari game, Cap and mask sets, travel india game, Disney today comic. To obtain each gift the member has to send 5 wrappers as purchase proof. Some special privileges were given to regular members time to time like, discounting tickets of Appughar. Organisation maggi school quizzes and sketching.

Result of PR Activity: -

Getting closer to regular customer boosted the sales. Making valuable direct marketing database. Recently, again, they have started maggi fan club. This time it is operating online and they are provided user name and password.

again, they have started maggi fan club. This time it is operating online and they are

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STPD ANALYSIS

Segmentation: Market Segmentation divides the heterogeneous market into homogenous groups of customers who share a similar set of needs/wants and could be satisfied by specific products. Maggi Brand have segmented the market on the basis of lifestyle and habits of URBAN FAMILIES.

Targeting: Market Targeting refers to evaluating and deciding from amongst the various alternatives, which segment can be satisfied best by the company. The Maggi Brand have mainly targeted the Kids, Youth, Office Goers & Working Woman which falls into the category of ―convenience- savvy time misers‖ who would like to get something instant and be over with it quickly.

Positioning: Market Positioning is the act of designing the company‘s offerings and image to occupy a distinctive place in the minds of the target market. The goal of positioning is to locate the brand in the minds of consumers to maximise the potential benefit to the firm. Maggi has positioned itself in the SNACKS category and not in the meal category since Indians do not consider noodles as a proper food item. Therefore Maggi have developed its brand image of instant food products with positioning statements such as ―2 minutes noodles‖ and ―Easy to cook, good to eat‖.

of instant food products with positioning statements such as ―2 minutes noodles‖ and ―Easy to cook,

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Differentiations: Points-of-difference (PODs) are attributes or benefits consumers strongly associate with a brand, positively evaluate and believe they could not find to the same extent with a competitive brand. The Maggi Brand have also differentiated its brand image from its competitors in terms of taste, flavours and packaging. Maggi have launched wide varieties of products in different flavors which can attract larger set of customers. Maggi products are also available in different sizes catering to different customer needs.

larger set of customers. Maggi products are also available in different sizes catering to different customer

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SWOT ANALYSIS

The SWOT analysis of Maggi brand clearly indicates the strengths of Maggi as a Brand in Indian market. The Brand was found to be a leader in its category of Noodles, with strong customer loyalty. Intensive distribution of Maggi as a Brand was seen in urban areas of the country. The major threats of the brand as shown in the figure below indicates that Maggi has made several attempts to revamp itself as a ‗Healthy Product‖ but till date its perseverance towards the tag line is low by the consumers. The brand is in the growth stage of product life cycle with a strong inclination towards the maturity stage.

Strengths

Established Family Branda strong inclination towards the maturity stage. Strengths Strong Global Corporate Brand ( NIL ) Specialization

Strong Global Corporate Brand ( NIL )the maturity stage. Strengths Established Family Brand Specialization in food processing category marketing and

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 leader food processing category marketing and distribution in Urban Pioneer and Leader so 1st mover advantage in
Pioneer and Leader so 1st mover advantage in Noodles, Sauce, Ketchups and Soup market. processing category marketing and distribution in Urban Market leader Nestle symbolization of warm, family & shelter
Nestle symbolization of warm, family & shelterdistribution in Urban Market leader Pioneer and Leader so 1st mover advantage in Noodles, Sauce, Ketchups

Innovative flavours for Indian taste buds Distribution Channels
Distribution ChannelsInnovative flavours for Indian taste buds

Nestle symbolization of warm, family & shelter Innovative flavours for Indian taste buds Distribution Channels

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Weakness

Generic Brand to Noodles in India Low rural market presence constraints Uniform Brand for all food category Heavily dependent on one
Low rural market presence constraints Generic Brand to Noodles in India Uniform Brand for all food category Heavily dependent on one
Uniform Brand for all food category Generic Brand to Noodles in India Low rural market presence constraints Heavily dependent on one flavor
Heavily dependent on one flavorGeneric Brand to Noodles in India Low rural market presence constraints Uniform Brand for all food

Opportunities

Growing package and canned food market in India by 15% annually. High brand awareness of Indian consumer Opportunity to be substitute to other snacks category of
High brand awareness of Indian consumer package and canned food market in India by 15% annually. Opportunity to be substitute to other
Opportunity to be substitute to other snacks category of food products. by 15% annually. High brand awareness of Indian consumer Unexploited rural market Increasing number of working
Unexploited rural market to be substitute to other snacks category of food products. Increasing number of working youth Affinity
Increasing number of working youth other snacks category of food products. Unexploited rural market Affinity of Indians to Chinese food Health
Affinity of Indians to Chinese food Health related issuesto be substitute to other snacks category of food products. Unexploited rural market Increasing number of

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
Single product focused competitors like Heinz sauce and Wai Wai Noodles. of Heinz Indian, Top Ramen in Noodle and Knorr Soups. Less Entry Barriers in the Market
Less Entry Barriers in the Market segment for product category focused competitors like Heinz sauce and Wai Wai Noodles. ITC‘s strong base in Indian Market. Substitute
Entry Barriers in the Market segment for product category ITC‘s strong base in Indian Market. Substitute ITC‘s strong base in Indian Market.
for product category ITC‘s strong base in Indian Market. Substitute Product to Product Segment Competitive pricing Substitute Product to Product Segment
Competitive pricing ITC‘s strong base in Indian Market. Substitute Product to Product Segment Strong presence of regional competitors
Strong presence of regional competitorsfor product category ITC‘s strong base in Indian Market. Substitute Product to Product Segment Competitive pricing

in Indian Market. Substitute Product to Product Segment Competitive pricing Strong presence of regional competitors

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Brand Consumer Prism

BRAND PRISM OF MAGGI

Brand Study : Maggi 43 Brand Consumer Prism BRAND PRISM OF MAGGI
Brand Study : Maggi 43 Brand Consumer Prism BRAND PRISM OF MAGGI

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SALES AND MARKETING CHANNEL

Marketing channels

The focus of our market channel analysis is limited to culinary products, as maggi falls under this product category.

Customer upper and middle class family

Strategic intent selling and promotion form the strategic intent for this distribution channel

Channel Type Maggi followed a market type channel for its culinary products

Marketing Channel Strategy: -

A hybrid strategy involving both a push as well as a pull strategy is used by maggi. The push strategy employed through setting targets at various levels of the distribution channel and a pull strategy is exercised through aggressive 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
Information Flow Physical Goods flow Payment Flow
Payment FlowPhysical Goods flow Information Flow

Promotion Flow Title Flow
Title FlowPromotion Flow

flows in Maggi marketing channel Physical Goods flow Information Flow Payment Flow Promotion Flow Title Flow

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DISTRIBUTION CHANNEL

Physical Good Flow

Nestle has 6 factories across India. From these factories, Maggi are directly shipped to CFAs (carry and forward Agencies) located in each state. Carry and forward agencies provided the warehousing facilities that are required for distribution across the state. The presence of carry and forward agencies in each state ensures that the taxes, octroi and other state level charges applied are lower.

The next entity in the channel is the distributer. There are two major types of distribution.

Distribution Targeting Traditional tradethe distributer. There are two major types of distribution. Distribution targeting modern trade Distributors Focused on

Distribution targeting modern tradeof distribution. Distribution Targeting Traditional trade Distributors Focused on traditional trade deal with

Distributors Focused on traditional trade deal with

Wholesalers for reaching areas with spares demandtrade Distributors Focused on traditional trade deal with Retailers in area of high demand Wholesalers distribute

Retailers in area of high demanddeal with Wholesalers for reaching areas with spares demand Wholesalers distribute Maggi products to smaller stockiest

Wholesalers distribute Maggi products to smaller stockiest and retailers.

Retailer stores are segmented based on their per week order. There are four board categories

Super ―A‖ – Supper High Volume retailers Supper High Volume retailers

‖A‖ – High volume retailers ―B‖ – Medium volume retailers ―C‖ – Low High volume retailers
‖A‖ – High volume retailers ―B‖ – Medium volume retailers ―C‖ – Low ―B‖ – Medium volume retailers
‖A‖ – High volume retailers ―B‖ – Medium volume retailers ―C‖ – Low ―C‖ – Low

High Volume retailers ‖A‖ – High volume retailers ―B‖ – Medium volume retailers ―C‖ – Low

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Each distributer covers close to 400- 500 retail stores. The product is shipped from the distributer to the wholesaler or retailer as per the order taken by the distributer sales men. There is a one day delay between talking an order and distributing the product. Modern trade involves retail stores chains. Ex: Big Bazaar, Reliance Fresh etc. They are serviced Through specially designated distributors. The number of distributors supplying goods to these major retailers is samller than that of traditional trade.

The number of distributors supplying goods to these major retailers is samller than that of traditional
The number of distributors supplying goods to these major retailers is samller than that of traditional

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MARKET PENETRATION STRATEGIES

Maggi started with promotional campaigns in the school to see the reaction of children after eating Maggi.

Started their advertising straight focusing on kids.school to see the reaction of children after eating Maggi. Introduced new products like atta noodles

Introduced new products like atta noodles dal atta noodles cuppa mania. Products are made available in different packages like 50,100,200,400 Gms.
Products are made available in different packages like 50,100,200,400 Gms.Introduced new products like atta noodles dal atta noodles cuppa mania.

Keep on conducting market research to understand changes in market.available in different packages like 50,100,200,400 Gms. Though Maggi has been successful every time, there were

Though Maggi has been successful every time, there were times when it faced challenges. 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
Competition increased in noodle segment: When Maggi was enjoying being the only noodle offering by any company Top ramen entered the market as a competition. This was a big challenge for Maggi. Though Top Ramen that spoiled the taste. So the formula was changed from fried base to oiled dried base couldn‘t do well in India.

entered the market as a competition. This was a big challenge for Maggi. Though Top Ramen

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New product launched in market but failed- Nestle decided to expand its offerings by offering Dal atta noodles & Sambhar flavor noodles. But these products were not welcomed by the people the very special taste of Maggi was still ruling the consumerBrand Study : Maggi 48 Maggi launched some new products: Ketchups, Soups, Taste makers etc. but

Maggi launched some new products: Ketchups, Soups, Taste makers etc. but they were not successfulnoodles. But these products were not welcomed by the people the very special taste of Maggi

ruling the consumer Maggi launched some new products: Ketchups, Soups, Taste makers etc. but they were

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TASTE AND PREFERENCES OF CONSUMERS

Health is the flavor of the season. Food companies in India are growing aware of the increasingly changing consumption trends and taste preferences among the Indian junta. No surprises, but this is the reason more and more companies are

coming up (or are actually re-marketing) with products that are healthy. Take for example Coke and Pepsi; both have already started looking into the non- carbonated drinks category section. Maggi first introduced in the market Maggi Atta Noodles which it claimed was a healthy food as it was made of wheat flour

followed

soups.

by

Nestle India, in an effort to carry on with its trend of providing the Indian consumers healthy food recently introduced a range of Healthy Soups. The entire range consists of the following; maggi tomato, mixed vegetable, tomato vegetable, mushroom, chicken, sweet corn chicken and hot and sour vegetable. The product is priced at Rs 25 for 70 grams.

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.

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

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

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but

without

diluting

the

core

brand

equity.

Maggi over these years have made lot of mistakes. It made mistakes because the brand was willing to experiment. More importantly the brand learned from those

mistakes

Maggi also invested heavily in brand building. The campaigns for one of Maggi's products were always there in the media which kept the brand fresh in the mind of the consumers. Maggi personifies the basic principles of understanding consumers, innovating and investing in the brand.

and

corrected

itself.

Maggi is one packaged food brand that has only seen its popularity grow in the past many years and the secret to the success is that instead of trying to change the food habits of consumers, it has tried to align itself with local tastes and preferences with the ‗fast to cook and good to eat‘ promise.

To commemorate its successful journey through a quarter of a century in the world‘s largest consumer market, the brand, last year, launched an innovative campaign inviting its loyalists to share with it their Maggi stories and promised to broadcast them to the world at large, thereby, making them the superstars overnight. Along with television commercials, which aired individual consumer stories of their lasting memories of Maggi, the brand displayed pictures of these loyal customers on the Maggi packs. Nestle also introduced a website Me and meri maggi in for engaging with them.

The company also rewarded its consumers by adding to the Maggi portfolio, that hitherto had sauces and soups in various flavors, a range of prepared dishes and cooking aids such as Maggi Bhuna Masala and Maggi Pazzta. So far focussed on

flavors, a range of prepared dishes and cooking aids such as Maggi Bhuna Masala and Maggi

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urban consumers, the company also made a pitch for rural consumers by launching Maggi Rasile Chow noodles at an inviting price of Rs4. Again, local tastes and recipes have been at the core of all these marketing innovations.

―Creating delight and happiness in everyday meals is not just about providing tasty food. It is about providing taste and health in a convenient combination,‖ says Shivani Hegde, general manager, foods.

food. It is about providing taste and health in a convenient combination,‖ says Shivani Hegde, general

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DEMOGRAPHY AND PSYCHOGRAPHY OF CONSUMERS

Demography: -

1) Age and sex: people of different age groups consume Maggi products. Children, teenagers, adults as well as old people consume them. Both genders male and female consume them.

2) Income: - Maggi products are available at reasonable prices. So the lower, middle as well as the higher class consume them.

3) Religion and nationality: - Maggi products are famous and are consumed by people of all religions and nationality.

Psychograph: -

1) Attitude: - Consumers of maggi have a positive attitude towards the product, which makes it the leader in the market. Maggi dominates the market.

2) Lifestyle:- Lifestyle determines the way of living of people. It describes how a consumer leads his life. All consumes Maggi products.

Lifestyle determines the way of living of people. It describes how a consumer leads his life.

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Research Methodology

Sample Size

Number of

 

respondents

50

Survey Location

Pune

Methodology

The research was carried out in the form of a survey. This will include primary

research in addition to secondary research as stated below. The survey research

method will be descriptive research design. Each respondent will be interviewed

through a Questionnaire. The sample will be selected by a simple random sampling

method.

The survey will address the following information area

The objective as spelt out can be elaborated into specific information areas to be

studied.

How do customers perceive Maggi as a stable brand, their perception ofbe elaborated into specific information areas to be studied. Maggi and how do they associate themselves

Maggi and how do they associate themselves with Maggi?

Are the consumers aware of Maggi Brand or they associate Maggi withMaggi as a stable brand, their perception of Maggi and how do they associate themselves with

some other brand?

associate themselves with Maggi? Are the consumers aware of Maggi Brand or they associate Maggi with

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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 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? a healthy product by the launch of some of the new products? Are the consumers willing
Are the consumers willing to accept Maggi brand extensions to some other products like chocolate, juices, chips etcMaggi products do the consumers consider as the best selling product for Maggi and to which

buy? Are the consumers willing to accept Maggi brand extensions to some other products like chocolate,

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DATA COLLECTION PLAN

Data Gathering

This study involves data collection (primary research) from different households in four different areas Pune (Aund, Market Yard, Warje, Bhandarkar Road)

Literature Review

The research conducted as a part of our study would include Primary as well as Secondary research. Primary research would include a survey that would be conducted in selected localities of Pune and nearby areas where the responses of consumers would be recorded through a designed questionnaire. Secondary research would include various aspects of Brand management through Internet, Journals, company reports, expert views etc.

research would include various aspects of Brand management through Internet, Journals, company reports, expert views etc.

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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 College

Q1. Do you purchase ready to eat products available in the market?

a) Yes

b) No

Q 2. What is the brand that comes to your mind when you think of ready to

eat food?

a) Maggi

b) Top Ramen

c) Knorr

d) ITC Sunfeast

Q 3. Are you a consumer of Maggi?

a) Yes

b)

No

think of ready to eat food? a) Maggi b) Top Ramen c) Knorr d) ITC Sunfeast

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Q 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) Britannia

Q6. Rank the following Maggi products w.r.t. frequency of purchase with 5

being the

highest rank.

a)

Noodle

b)

Ketchup

c)

Soup

d)

Masala

e)

Cubes

of purchase with 5 being the highest rank. a) Noodle b) Ketchup c) Soup d) Masala

Brand Study : Maggi

58

Q7. Do you recall any of the T.V. advertisements of Maggi?

a) Yes

b)

No

Q 8. Rank the categories, which Maggi should look in future in order of your

importance:

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)

No

Q10. Are you happy with the current price & packaging size variants of

Maggi Products?

a) Yes

b)

No

a) Yes b) No Q10. Are you happy with the current price & packaging size variants

Brand Study : Maggi

59

Q11. How do you perceive Maggi products?

a) Good for health.

b) Ready to eat.

c) Junk food

d) Tasty / Fun eating

59 Q11. How do you perceive Maggi products? a) Good for health. b) Ready to eat.

Brand Study : Maggi

60

QUESTIONNAIRE ANALYSIS

Q1. Do you purchase ready to eat products available in the market?

Yes 50 No 0
Yes
50
No
0
Q1 Yes No

Q1Yes No

YesQ1 No

NoQ1 Yes

Q 2. What is the brand that comes to your mind when you think of ready to eat food?

Maggi

41

Top Remaen

0

Knorr

4

ITC Sunfeast

5

ITC Sunfeast Knorr Top Series1 Ramen Maggi 0 20 40 60
ITC
Sunfeast
Knorr
Top
Series1
Ramen
Maggi
0
20
40
60
Top Remaen 0 Knorr 4 ITC Sunfeast 5 ITC Sunfeast Knorr Top Series1 Ramen Maggi 0

Brand Study : Maggi

61

Q3. Are you a consumer of Maggi?

Yes

45

No

4

Q3 Yes No

Q3Yes No

YesQ3 No

NoQ3 Yes

Q 4. You came to know about Maggi from:

Newspaper

1

Radio

0

T.V

38

Friends

8

Other

3

Other Friends T.V Series1 Radio Newspapers 0 10 20 30 40
Other
Friends
T.V
Series1
Radio
Newspapers
0
10
20
30
40
0 T.V 38 Friends 8 Other 3 Other Friends T.V Series1 Radio Newspapers 0 10 20

Brand Study : Maggi

62

Q5. Do you know which umbrella brand does Maggi fall into?

Unilever

6

Kraft

1

Nestle

42

Britannia

1

Britannia Nestle Series1 Kraft Unilever 0 10 20 30 40 50
Britannia
Nestle
Series1
Kraft
Unilever
0
10
20
30
40
50

Q6. Rank the following Maggi products w.r.t. Frequency of purchase with 1 being the highest rank?

Noodle

240

Ketchup

178

Soup

153

Masala

116

Cubes

64

Cubes Masala Soup Series1 Ketchup Noodle 0 100 200 300
Cubes
Masala
Soup
Series1
Ketchup
Noodle
0
100
200
300
178 Soup 153 Masala 116 Cubes 64 Cubes Masala Soup Series1 Ketchup Noodle 0 100 200

Brand Study : Maggi

63

Q7. Do you recall any of the T.V. advertisements of Maggi?

Yes

45

N0

5

Yes No

YesNo

NoYes

Q8. Rank the categories, which Maggi should look in future in order of your importance:

Chocolates

110

Salted potato Chips

104

Fruit Juices

135

Processed Foods

156

Others

0

others Processed Foods Fruit Juices Series1 Salted Patato Chips Chocolates 0 50 100 150 200
others
Processed Foods
Fruit Juices
Series1
Salted Patato Chips
Chocolates
0 50
100
150
200
156 Others 0 others Processed Foods Fruit Juices Series1 Salted Patato Chips Chocolates 0 50 100

Brand Study : Maggi

64

Q9. Do you perceive Maggi as a healthy product?

Yes 24 No 26
Yes
24
No
26
Q9 Yes No
Q9 Yes No

Q9Yes No

YesQ9 No

NoQ9 Yes

Q10. Are you happy with the current price & packaging size variants of Maggi Products?

Yes

43

No

7

Yes No

YesNo

NoYes

Q10. Are you happy with the current price & packaging size variants of Maggi Products? Yes

Brand Study : Maggi

65

Q-11How do you perceive Maggi products?

Good For Health

3

Ready To Eat

23

Junk Food

6

Tasty/ Fun Eating

18

25 20 15 Series1 10 5 0 Good for Ready to Health Eat Junk Food
25
20
15
Series1
10
5
0
Good for
Ready to
Health
Eat
Junk Food Tasty/Fun
Eating
6 Tasty/ Fun Eating 18 25 20 15 Series1 10 5 0 Good for Ready to

Brand Study : Maggi

66

ANALYSIS

Maggi 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 market

from long time but brands like Knorr, Sunfeast, Horlicks is not available at stores

& if it is available its not been sold. Pricing has been a very important factor when

it comes to the sales of Maggi products and retailers emphasize on the fact that customers want a good price as there are competitors coming in the market. Television is the medium from which people are aware and enlightened about the brand.

It‘s also been observed that Maggi has the best mind-share among all the brands that were researched in the project. Also, apart from it being a ready-to-eat product with fun, Maggi as a brand is perceived as a family product amongst the other brand which were researched.

product with fun, Maggi as a brand is perceived as a family product amongst the other

Brand Study : Maggi

67

SUCCESS FACTORS OF MAGGI

Quick Localization:-

One major factor for Maggi's success was its quick localization. We have been eating Maggi since our childhood, for about 15 years, we never knew that Maggi was a foreign brand until we read Wikipedia just before writing this article. How many times had you seen the wrapper of Maggi Noodles packet? Many times! Everybody likes reading everything that's written on wrapper; in fact it has become

a hobby that we don't even know about consciously. So Maggi has a simple presentation of itself to people in India.

Every common Indian knows the tagline of maggi - 2-minute noodles. And Maggi was famous in the flavor of Masala. Happens to mean spice in India. So to a common Indian, Maggi Masala sounds very logical and Indian. Never did Maggi put any fancy English tag lines nor did it endorse its product as a foreign brand though it could have. It's almost like they hid their real identity of being a foreign brand simply by not revealing the fact neither in ads nor in the wrapper or anywhere else

The advertisements that endorsed Maggi in the Television, picture, a small girl and

a boy waiting eagerly for her mom to cook and serve Maggi. Once served, they

happily eat their meal and go to play. To add, there was no hint of foreign hand in the brand. So they kind of ―Indianized Maggi‖, established as a brand that every

Indian can identify with and buy that product without any hesitation.

Maggi‖, established as a brand that every Indian can identify with and buy that product without

Brand Study: Maggi

68

CONCLUSION

The food processing business in India is at a nascent stage. Currently, only about 10% of the output is processed and consumed in packaged form thus highlighting huge potential for expansion and growth. Traditionally, Indians believe in consuming fresh stuff rather then packaged or frozen, but the trend is changing and the new fast food generation is slowly changing.

Riding on the success of noodles, Nestle India, tried to make extensions of the Maggi brand to a number of products like, sauces, ketchups, pickles, soups, tastemakers and macaroni in the mid-1990s. Unfortunately, the macaroni and pickles didn‘t pick up as expected. The soups and sauces did somewhat fine, gathering considerable sales volumes and have a satisfactory presence even today. ‗Maggi Noodles‘ itself faced a bit of difficulty with respect to ‗taste‘, and nearly lost its position in the minds of Indianconsumers in the late 1990s. When Nestle changed the formulation of its tastemaker, the ominous packet that came along with Maggi Noodles, a major chunk of consumers were put-off and sales started dropping. Also, Maggi‘s competitor ‗TopRamen‘ took advantage of the situation and started a parallel aggressive campaign to eat into Maggi‘s market share. But the company quickly realised this and went back into making the original formula coupled with a free sampling campaign. This helped Maggi to win back its lost consumers and pushed up its sales volumes again!

with a free sampling campaign. This helped Maggi to win back its lost consumers and pushed

Brand Study : Maggi

69

Maggi Today The year 2008 saw India leading in worldwide Maggi sales. The brand has grown to an estimated value of Rs 160-170 crore and contributes at least 8–9% to Nestle India‘s top line. All the same, some FMCG analysts feel that the brand has not done much to expand the noodles category. Even after 25 years of its launch, the size of the instant noodles market is yet quite small at Rs 300 crore. But yes, the parent company, Nestle India Limited has certainly encouraged the brand to enter into other culinary products.

yes, the parent company, Nestle India Limited has certainly encouraged the brand to enter into other

Brand Study : Maggi

70

RECOMMENDATION

After the conducted study following recommendations could be sited for Maggi Brand.

To gain maximum leverage in terms of profit the company should pay emphasis on segments with age groups 25-35 and above. Advertising is the key to success. Targeting these segments will not only enhance the company‘s profit margins but also it will leverage the brand image of Maggi. The company company‘s profit margins but also it will leverage the brand image of Maggi.
margins but also it will leverage the brand image of Maggi. The company should advertise its The company should advertise its products by depicting attributes related to Health like Nutrition values, % of Vitamins, Proteins etc.This would help in customers perceiving the product as Healthy.
Foray into other food products like chips, chocolates etc under its sole brand name would not only help in would help in customers perceiving the product as Healthy. Brand extension but will also enhance Maggi‘s 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 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.
consumers, shareholders, employees and business partners. Maggi‘s aims to create value for consumers that can be 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 .can be sustained over the long term by offering a wide variety of high quality, safe

India and anticipate consumer needs in order to provide convenience, taste, nutrition and wellness through its

Brand Study : Maggi

71

BIBLIOGRAPHY

Websites:-

Newspapers and Magazines:-

Economic Times – ―Brand Equity Supplement‖ onomic Times – ―Brand Equity Supplement‖

4P‘s of Marketing Magazinewww.wikipedia.com Newspapers and Magazines:- Ec onomic Times – ―Brand Equity Supplement‖ Marketing Today Magazine

Marketing Today MagazineNewspapers and Magazines:- Ec onomic Times – ―Brand Equity Supplement‖ 4P‘s of Marketing Magazine

and Magazines:- Ec onomic Times – ―Brand Equity Supplement‖ 4P‘s of Marketing Magazine Marketing Today Magazine