BRAND STRATEGIES OF MAGGI

Introduction about the topic

The brand tells why products exists, where they come from and where they are going. It also sets
their guidelines. A brand is not a fact set in stone. It must be able to adapt to the times to changes
in buyers and in technology (Keller, 2004). A brand is an assurance or guarantee that the product
will perform as the customer thinks it should, which means that the brand has already shaped the
expectations of the customer about itself. The brand embodies some values that remain
consistent over a period of time
Introduction about the Brand - 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 a range 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.

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.

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 promotions to
increase the brand awreness. 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 line activities rather than direct
communication. In addition to promotional activities, Maggi associated itself with main stream
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 Maggis popularity became highly attributed to its extremely high appeal to children. As
a result, Maggis annual growth reportedly touched 15% during its initial years.