The Maggi Brand in India
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Transcript of The Maggi Brand in India
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The Maggi Brand in IndiaPresented by Group: 8
Anoop DigantaMansiRichardRituRubySoniaSuparna
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Agenda• Case briefing• The Maggi’s Path• Maggi takes the Health Route• Competition• Competitive Strategy• AD/Promotion Strategy• The Growth Factors• Maggi’s Life Cycle• STP Analysis• SWOT Analysis• Michael Porter’s Five Forces Model• Answers to the given questions
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Case Briefing
• The case talks about the various phases in the PLC of Maggi noodles and the brand.
• It focuses on the various measures taken by NIL to position Maggi time and again (i.e. repositioning) in the minds of Indian consumers.
• It also discusses the various extension of Maggi brand.
• The case further talks about NIL’s quest to reposition Maggi as a health product.
• Finally it ends with an outlook wherein it talks about Maggi’s future competitors.
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The Maggi’s path…
• Nestlé India Ltd. (NIL), the Indian subsidiary of the global FMCG major, Nestlé SA, introduced the Maggi brand in India in 1982.
• With the launch of Maggi noodles, NIL created an entirely new food category - instant noodles - in the Indian packaged food market and became a popular snack food product in India.
• Being the first-mover, NIL successfully managed to retain its leadership in the instant noodles category even until the early 2000s.
• In 2005, NIL started offering a range of new 'healthy' products under the Maggi brand, in a bid to attract health-conscious consumers.
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Maggi takes the Health Route
• In May 2006, Nestlé India Ltd. (NIL), launched a new instant noodles product called Maggi Dal Atta Noodles (Dal Atta Noodles) under the popular Maggi brand.
• The Dal Atta Noodles were made of whole wheat and contained pulses, and positioned as a 'healthy‘ instant noodles.
• NIL offered a variety of culinary products such as instant noodles, soups, sauces and ketchups, cooking aids (seasonings), etc., under the Maggi brand.
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Competition
• During 1990s, the sales of Maggi noodles declined, and this was attributed partly to the growing popularity of Top Ramen.
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Competitive Strategy
• NIL changed the formulation of Maggi noodles in 1997. However, this proved to be a mistake, as consumers did not like the taste of the new noodles.
• In March 1999, NIL reintroduced the old formulation of the noodles, after which the sales revived.
• NIL also introduced several other products like soups and cooking aids under the Maggi brand.
• In the early 2000s, Maggi was the leader in the branded instant noodles segment, and the company faced little serious competition in this segment.
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Competitive Strategy
• NIL also adopted the same strategy for the Maggi brand with the launch of the Maggi Vegetable Atta Noodles (Vegetable Atta Noodles) in 2005.
• The Dal Atta Noodles were another variant of Maggi's healthy instant noodles. proved to be a mistake, as consumers did not like the taste of the new noodles.
• In March 1999, NIL reintroduced the old formulation of the noodles, after which the sales revived.
• Again Maggi introduced smaller packs at lower price points looking at the ‘value for money’ concept of the Indian consumer.
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AD/Promotion Strategy
• Through its ads, NIL positioned Maggi as a 'fun' food for kids which mothers could prepare easily. Tag lines of Maggi from their various ads: -– ‘Mummy, bhookh lagi hai’ (Mom, I'm hungry),– ‘Bas 2-Minute’ (Only 2 minutes)– ‘Fast to Cook Good to Eat’– ‘Health Bhi, taste Bhi’– ‘Its Different’
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The Growth Factors
• The demand for convenience food was increasing in India in the early 2000s.
• The survey also revealed that the market for branded food products was growing at a healthy rate of around 15 percent in the early 2000s.
• The changing lifestyles and eating habits of Indian consumers and the increasing purchasing power of the growing middle income group were thought to be the reasons behind this growth.
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Maggi’s Life Cycle
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STP Analysis
• Segmentation:– Age– Life Style– Eating habits of urban families
• Targeting:– Kids– Office Goers– Working women
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STP Analysis
• Positioning:– Easy to cook, Good to Eat– 2-minute Noodles
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SWOT Analysis
• 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
• Weakness– Product dependent on single flavour– Not so much presence in rural market
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SWOT Analysis
• Opportunity– Increasing number of working youth– Product has been acceptable in youth
category– Shift to rural market
• Threat– Price war with competitors– Strong presence of regional competitors
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Michael Porter’s Five Forces Model
• New Entrants: No potential threat of new entrants for maggi noodles
• Suppliers: Distributors, Raw materials suppliers
• Indusrty Competitors: Top Ramen
• Buyers: Customer’s mind set, Brand Image
• Substitutes: Chowmeen, Fast food, Pasta
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Q1> List out the brands of NIL in India and develop a brand portfolio by analyzing their growth rate and market share in each of their product market situation.
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Milk Products and Nutrition
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Beverages
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Prepared Dishes and Cooking Aids
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Chocolates & Confectionery
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Q2> Analyze the Brand Life Cycle of brand ‘Maggi’ 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 ‘Its Different’, ‘Bas
2-Minute’, ‘Health Bhi, taste Bhi’ etc which caught the heart and imagination of Indian consumer
– Availability in different pack sizes– New product innovations
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– Organizing contests, games and industrial visits for school kids to further strengthen the brand image
– Invite Housewives to send new innovative recipes made from Maggi and introduce rewards for the same
– NIL's promotions positioned the noodles as a 'convenience product', for mothers and as a 'fun' product for children
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– NIL aggressively promoted Maggi noodles through several schemes like: -
• distributing free samples• giving gifts on the return of empty packs• NIL's advertising too played a great role in
communicating the benefits of the product to target consumers
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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 known brand name in one category to launch a new product in a different category.
• Brand Extension Strategies are frequently undertaken by the companies when they launch any new product. The companies try to reap benefit out of their established Brand Name and Brand Equity.
• Brand Extension Strategy refers to the strategy in which a company uses the same Brand Name in order to promote products of different category.
• It is commonly found that, a company which has already established its brand name in the market for a specific product category, uses the same Brand Name at the time of launching a new product of different category.
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• In this case, the new product easily develops an acceptance range as the customers are already familiar with the Brand Name.
• Example: NIL used the brand extension strategy and offered a variety of culinary products such as instant noodles, soups, sauces and ketchups, cooking aids (seasonings), etc., under the ‘Maggi’ brand name
• Multi-brand strategy: Marketing of two or more similar and competing products by the same firm under different and unrelated brands.
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• While these brands eat into each others' sales, multi-brand strategy does have some advantages as a means of:-– obtaining greater shelf space and leaving little for
competitors' products– saturating a market by filling all price and quality gaps– catering to brand-switchers—users who like to
experiment with different brands– keeping the firm's managers on their toes by
generating internal competition
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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 Indian consumers when it launched Maggi 2 Minute Noodles, an instant food product, in 1982
• At that time, Indian consumers were rather conservative in their food habits, preferring to eat traditional Indian dishes rather than canned or packaged food
• In fact, NIL was trying to create an entirely new food category, instant noodles, in India
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• Initially, the company targeted working women on the premise that Maggi noodles were fast to cook and hence offered convenience
• However, this approach failed as was evident from the fact that the sales of Maggi noodles were not picking up despite heavy media advertising
• To get to the root of the problem, NIL conducted a research, which revealed that it was children who liked the taste of Maggi noodles and who were the largest consumers of the product
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• After this, NIL shifted its focus from working women and targeted children and their mothers through 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 ‘Bas 2-minutes’ to ‘Health Bhi, Taste Bhi’, and this has hit the Indian Comsumers.
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Suggestion from our side as Brand manager
• Focus more on the core brand i.e. Maggi 2 minutes noodles.
• Spend on R&D and promote as health product. • Enter the rural market• Increase the distribution channel• Introduce innovative products with different
brand name – i.e. go for multi-branding strategy.• Give combi offers like a kit kat
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Any Questions
What an Answer
Its Different !!!