Maggi Brand

8/8/2019 Maggi Brand

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The µMaggi¶ Brand in India

Gunjan Dhingra



Briefing

It talks about the various phases in the

PLC of Maggi noodles and the brand.

It focuses on the various measures taken by NILto position Maggi time and again (i.e.repositioning) in the minds of Indian consumers.It also discusses the various extension of Maggi brand.

This further talks about NIL¶s quest toreposition Maggi as a health product.

Finally it ends with an outlook wherein it talksabout Maggi¶s future competitors.



The Maggi¶s path

Nestlé India Ltd. (NIL), the Indian subsidiary of the globalFMCG major, Nestlé SA, introduced the Maggi brand inIndia in 1982.

With the launch of Maggi noodles, NIL created an

entirely new food category - instant noodles - in theIndian packaged food market and became a popularsnack food product in India.

Being the first-mover, NIL successfully managed toretain its leadership in the instant noodles category evenuntil the early 2000s.

In 2005, NIL started offering a range of new 'healthy'products under the Maggi brand, in a bid to attracthealth-conscious consumers.



Maggi takes the Health Route

In May 2006, Nestlé India Ltd. (NIL), launched anew instant noodles product called Maggi DalAtta Noodles (Dal Atta Noodles) under thepopular Maggi brand.

The Dal Atta Noodles were made of wholewheat and contained pulses, and positioned asa 'healthy instant noodles.

NIL offered a variety of culinary products suchas instant noodles, soups, sauces and ketchups,cooking aids (seasonings), etc., under the Maggibrand.



Competition

During 1990s, the sales of Maggi

noodles declined, and this wasattributed partly to the growingpopularity of Top Ramen.



Competitive Strategy

NIL changed the formulation of Maggi noodles in1997.However, this proved to be a mistake, as consumersdid not like the taste of the new noodles.

In March 1999, NIL reintroduced the old formulationof the noodles, after which the sales revived.

NIL also introduced several other products like soupsand cooking aids under the Maggi brand.

In the early 2000s, Maggi was the leader in thebranded instant noodles segment, and the companyfaced little serious competition in this segment.



AD/Promotion Strategy

Through its ads, NIL positioned Maggi asa 'fun' food for kids which mothers couldprepare easily. Tag lines of Maggi from

their various ads: -- µMummy, bhookh lagi hai¶ (Mom, I'm hungry),- µBas 2-Minute¶ (Only 2 minutes)- µFast to Cook Good to Eat¶ - µHealth Bhi, taste Bhi¶

- µIts Different



The Growth Factors

The demand for convenience food was

increasing in India in the early 2000s.

The survey also revealed that the market forbranded food products was growing at a healthyrate of around 15 percent in the early 2000s.

The changing lifestyles and eating habits of Indian consumers and the increasing purchasing

power of the growing middle income group werethought to be the reasons behind this growth.



Maggi¶s Life C ycle



STP Analysis

Segmentation:

- Age

- Life Style- Eating habits of urban families

Targeting:

-Kids

- Office Goers

- Working women



STP Analysis

Positioning:

- Easy to cook, Good to Eat

- 2-minute Noodles



SWOTAnalysis

Strength

- Market leader in their segment

- Strong brand loyal consumer base

- wide range of distribution channel- Product according to the need of Indian consumer

- innovative product

Weaknes- Product dependent on single flavour

- Not so much presence in rural market



SWOTAnalysis

Opportunity Increasing number of working youth

Product has been acceptable in youth category

Shift to rural market

Threat Price war with competitors

Strong presence of regional competitors



Michael Porter¶s Five Forces Model

New Entrants: No potentialthreat of new entrants formaggi noodles

Suppliers: Distributors, Raw materials suppliers

Indusrty Competitors: Top

Ramen

Buyers: Customer¶s mind

set, Brand Image Substitutes: Chowmeen,

Fast food, Past



Q1> List out the brands of NIL in India and develop abrand portfolio by analyzing their growth rate andmarket share in each of their product marketsituation.







Milk Products and Nutrition



Beverages



Prepared Dishes and

CookingAids



Q2> Analyze the Brand Life C ycle of brand µMaggi¶

and enlist the various branding strategies adopted

by NIL to keep it alive.

Brand Life Cycle - Explained in the Case

Branding strategies adopted by NIL:

Promotional campaigns in schools

Advertising strategies like µIts Different¶, µBas2-Minute¶, µHealth Bhi, taste Bhi¶ etc whichcaught the heart and imagination of Indian

consumer

Availability in different pack sizes

New product innovations.



Organizing contests, games and industrialvisits for school kids to further strengthen thebrand image

Invite Housewives to send new innovativerecipes made from Maggi and introducerewards for the same

NIL's promotions positioned the noodles as a'convenience product', for mothers and as a'fun' product for children.



NIL aggressively promoted Maggi noodles

through several schemes like: -

- distributing free samples

- giving gifts on the return of empty packs

- NIL's advertising too played a great role incommunicating the benefits of the product to target

consumers



Q3>How is Brand Extension different from Multi-

brand strategy.

Explain the difference in the light of the given case.

Brand extension is using the leverage of a well knownbrand name in one category to launch a new product in adifferent category.

Brand Extension Strategies are frequently undertaken by

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

Brand Extension Strategy refers to the strategy in whicha company uses the same Brand Name in order topromote products of different category.

It is commonly found that, a company which has alreadyestablished its brand name in the market for a specificproduct category, uses the same Brand Name at thetime of launching a new product of different category.



In this case, the new product easily develops anacceptance range as the customers are alreadyfamiliar with the Brand Name.

Example: NIL used the brand extension strategyand offered a variety of culinary products suchas instant noodles, soups, sauces and ketchups,cooking aids (seasonings), etc., under the µMaggi¶ brand name

Multi-brand strategy: Marketing of two or moresimilar and competing products by the same firmunder different and unrelated brands.



While these brands eat into each others' sales,multi-brand strategy does have someadvantages as a means of:-

- obtaining greater shelf space and leaving little forcompetitors' products

- saturating a market by filling all price and qualitygap

- catering to brand-switchers²users who like to

experiment with different brands- keeping the firm's managers on their toes by

generating internal competition



Q4>NIL has repositioned Maggi from time to time´.

Critically assess the repositioning strategy of NIL

and suggest what will do as a brand manager of

Maggi in the present scenario.

NIL introduced the Maggi brand to Indianconsumers when it launched Maggi 2 MinuteNoodles, an instant food product, in 1982

At that time, Indian consumers were ratherconservative in their food habits, preferring toeat traditional Indian dishes rather thancannedor packaged food

In fact, NIL was trying to create an entirelynew

food category, instant noodles, in India.



Initially, the company targeted working womenon the premise that Maggi noodles were fast tocook and hence offered convenience

However, this approach failed as was evident

from the fact that the sales of Maggi noodleswere not picking up despite heavy mediaadvertising

To get to the root of the problem, NIL conducteda research, which revealed that it was childrenwho liked the taste of Maggi noodles and whowere the largest consumers of the product



After this, NIL shifted its focus from workingwomen and targeted children and their mothersthrough its marketing

NIL's promotions positioned the noodles as a'convenience product', for mothers and as a 'fun'product for children

The noodles' tagline, 'Fast to Cook Good to Eat'was also in keeping with this positioning

With time, NIL has also changed the tagline of Maggi from µBas 2-minutes¶ to Health Bhi,

TasteBhi¶, and this has hit the Indian Comsumers.



Suggestion from our side as Brand

manager

Focus more on the core brand i.e. Maggi 2minutes noodles.

Spend on R&D and promote as health

product. Enter the rural market

Increase the distribution channel

Introduce innovative products with different

brand name - i.e. go for multi-brandingstrategy.

Give combi offers like a kit kat



Documents

Maggi Brand