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com/doc/48958875/brand-extension

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digg Whose product is Maggi? Nestle Nestle: -Swiss Company founded in 1866 by Henri Nestle -Main focus: Great taste + Health, nutrition and wellness Maggi: -Nestl unleashed Maggi in India in 1982 -First Maggi (2-minute noodles) variants in India: Masala, tomato and chicken flavors -Nestles iconic brand -Flagship culinary brand in India as well as globally 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.Maggi launched in India at a time when the instant noodles market was not a popular one. Nestle launched Maggi in India with the tagline: Fast to cook and good to eat i.e. they focused on Convenience and Health.

Indian Consumer: The Indian consumer was on a lookout for a product that would provide quality food and was also convenient at the same time. Maggi recognised this need and thought of a fast relief from hunger product. In a fast growing India, where women were no more just home makers but professionals helping their spouses to run their households, cooking food was an important issue. Therefore, initially maggi 2-minute noodles targetting the women. But the sales was not picking up despite heavy Media Advertising. Indian consumers were rather conservative in their food habits, preferring to eat traditional Indian dishes rather than canned or packaged food. They realised that the Indian consumer was still orthodox and believed in traditional home made Indian food, they conducted market surverys. They found that it was the chidren who enjoyed the taste of maggi more than women. They shifted their focus on children and their mothers. Maggi realised that children love eating fast food and by associating Maggi with fast relief from hunger they created an impression of fast food and targetted the children. With the launch of Maggi noodles, Nestle India Ltd. Created an entirely new food category: instant noodles. NIL had the first-mover advantage which helped it retain leadership in the instant noodles category for a long time. In the early 80s Maggi was positioned as a quick to cook noodles. The tagline used was Fast to Cook. Good to Eat. The same theme continued in the 90s as well, but the communication was a little different. In the 90s the communication changed from the kids coming home hungry and asking their mother for something, to the kids saying that they were hungry and they wanted Maggi quickly. This emphasized the brands popularity, and also reflected on the role children played in influencing buying decisions (subtly). In the year 2006, Nestle began rebranding itself as a

Health and Wellness company. In line with this, Maggi products were promoted with the tagline Taste bhi, Health bhi. Positioning: Maggi positioned itself asthe 2-minute noodles. Consumers still associate maggi with Easy to cook and good to eat. Problems maggi faced: The biggest problem faced by maggi in India was the Indian psyche: Traditional Indian food was still a pscyhological barriers in India. The idea of instant food or fast food was not acceptable as much as it is today. Strategies: taste bhi health bhi: reinforcing their focus on health and getting in a new angle to 2-mintue maggi: taste!! In its branding campaign, the company promoted their brand by sponsoring many kids events. Also it spent huge amount on electronic and print media advertising. Consumers have an emotional bond with the product. On several occasions company does aggressive marketing by providing free samples of the product. Promotions: They promoted the product by: -Distributing free samples -Various sizes of maggi: 50 gms, 100 gms, 200 gms, etc. -Giving gifts on return on empty packets -Dry sampling (distributing maggi packets) and wet sampling (distributing cooked maggi) -Effective tagline communication Taglines: After realising its TG was young children and their mothers, maggi came up with the tagline: a.Mummy bhook lagi hai b.Bas 2 minute c.Fast to cook, good to eat Convenient product-> Mothers (fast to cook) Fun product-> Children (good to eat)

Thats how they came up with their tag line: Fast to cook, good to eat d.Health bhi taste bhi

Maggi Aata Noodles: In an effort to maintain its growth in Indian market, Maggi has launched many products like Maggi Vegetable Atta Noodles, Maggi Vegetable Multigrainz Noodles. It recently added Maggi Dal Atta Noodles in its product portfolio targeting health conscious people. This was recently followed with the Rice Noodles. Brand Extensions: Over the years, NIL extended the Maggi brand to a variety of culinary products like soups, sauces and ketchups, and cooking aids among others. Later Nestle also forayed into other food segments like pickles, using the Maggi brand, but it was unsuccessful and the products were dumped. Maggi also introduced a range of pastas in the year 2009 to complement the consumers need for variety in snack foods. Currently following are the products which are being marketed by NIL, under the Maggi Noodles brand: -Maggi Vegetable Multigrain Noodles -Maggi 2 Minute Noodles -Maggi Vegetable Atta Noodles -Maggi Cuppa Mania What worked for Maggi:

1. First-mover advantage: the introduction of instant noodles as a food segment 2. Timely recognition of their TG and correction of the same 3. Continuous persuasion through adds/campaigns to their TG (children and their mothers) 4. Consumer connect and loyalty 5. Newer and more relevant contacts (taglines/adds) with the consumer 6. Customized products to suit the consumer changing demands

Inside Nestl India's head office in Gurgaon is a sort of a model kitchen. Coloured bright yellow with hues of red, it reminds you of the company's highly successful brand, Maggi. But what this kitchen also signifies is Nestl India's ambition--to deepen the bond with homemakers and to create more products for them. As it celebrates 25 years of Maggi, the company is not taking it easy. And there are enough reasons for the same. The territory where Maggi has lorded over all these years, instant noodles, is being breached by big players. Fast moving consumer goods giants GlaxoSmithKline Consumer Healthcare (GSKCH) and Hindustan Unilever (HUL) have entered the Rs 1,000-crore instant noodles market with their respective brands, Foodles and Knorr. ITC Foods is reported to be waiting in the wings to enter the instant noodles market with its Sunfeast brand. In addition, there are the private label brands of large retailers which are increasing finding a way into the consumer's shopping trolley. Sauces too are a highly competitive space, with Maggi claiming to be the market leader but not with a huge margin. And the soup category is even tougher. It is not the first time Maggi has faced competition in the noodles category. In 1997-98, Indo Nissin came with its noodles brand Top Ramen. Nestle changed the formulation of Maggi 2-minute noodles around the same time which was rejected by the consumers. As a result, sales of Maggi noodles declined with the company finally bringing back the old formulation in 1999 to arrest drop in sales. Meanwhile, Indo Nissin had also become complacent, and Maggi was able to quickly consolidate its position as the leader. Though it will not be easy to dislodge Maggi from its perch today, given the huge brand equity it enjoys among consumers, experts say some loss of market share cannot be ruled out, given the deep pockets and vast distribution network of its new rivals. For starters, the company is building on the brand lineage to take it forward. Maggi noodles and sauces have become household names over the years. The company is strengthening its emotional connect with the consumers. Last year saw Nestle launch its Me aur meri Maggi campaign that revolved around consumers sharing their experiences. The selected ones were published on the product packaging. For sauces, the company is again evoking nostalgia and spreading the message of humour whcih has worked so well for the brand. The Its different campaign starring actor Javed Jaffari, which made Maggi sauces an instant hit makes a comeback, but with a twist this time. This time, it's about Make a difference. The company has planned a complete 360-degree campaign surrounding it that includes a series of TV commercials, a car by the name of Ha Ha Car which will travel across cities for over 70 days, and a toll free number where people can call, listen to jokes and even share their jokes. The toll free number received over 2 lakh calls in the last two months, claims the company. On the other hand, Nestle India has launched fortified food products such as Maggi Rasile Chow targeted at the rural/semi-urban markets. Initial feedback on these low priced products has been positive. The new products under the mother brand are in sync with the strategy that Nestle has adopted globally popularly priced products or PPP. PPP are affordable food products of high quality and nutrition. The importance of PPP's can be gauged from the fact that in 2009, they accounted for around 8% of Nestl's global annual sales, which roughly translates into $ 8 billion. While fortified noodles Maggi Rasile Chow is priced at Rs 4, Maggi Masala-ae-MagicC, a taste enhancer but again fortified with iron and other nutrients, is available only in Rs 2 sachets. There is greater understanding and widespread concern today about micronutrient malnutrition in India. Finding convenient and affordable approaches to address this was a challenge, and we worked closely on various

concepts with our Nestle R&D team, says Shivani Hegde, general manager-foods, Nestle India. Besides noodles and sauces, there are soups, pastas, powders, pizza sauces, and variants of noodles and sauces in the Maggi stable. Maggis first move towards the opportunities at the bottom of the pyramid came around 2005. What Nestle did was to expand its customer base and reach out to tier 2-3 towns and rural areas by launching Maggi 2-minute noodles at the Rs 5 price point. The first move was the large value packs. Then to gain further penetration and to sustain market share, they launched smaller value packs for the new consumers, says a research analyst with a brokerage firm. Emmanuel Upputuru, national creative director of Publicis India, which handles the Maggi account, recently presented a case study on Maggi at the recent Think Digital cnference. "As a product, Maggi is targeted at mothers. But today, these are the same mothers whove spent a lifetime with Maggi and their experience with the brand was reason enough for them to write to us with their stories. Thousands of stories were received during the campaign," he had said. Over the years, Maggis campaigns have been talking to mothers, though the nature of the conversation has evolved continouusly. The Maggi story began in India in 1983, with the launch of Maggi 2-minute noodles. "When Maggi was launched in the 80s the mother's need for convenience was important but without undermining her involvement with the children. Mummy Bhook Lagee hai - Bus Do Minute was a pioneering rendition of this approach, says Hegde. While the initial years of Maggi 2-minute noodles were challenging, it overcome those with not just a carefully executed campaign but also on-ground activities. Nestle initially spent a lot on sampling a product. There were a lot of school programmes where the product was freely sampled, in metros as well as small towns. There was a lot of money spent on advertising, but it is the sampling which helped them set a category and be the leader," says Anand Ramanathan, sector analyst, KPMG. The dawn of the new century saw Nestle globally changing its position towards a healthier foods company. And in 2001, Maggi became the core brand in India for Nestle in place of Nescafe. Four years later, it adopted the health angle into its communication with the Taste Bhi Health Bhi campaign. This was devised to counter the growing concerns over the health aspect of fast food products. While on one hand it appealed to the kids, on the other hand it assured the parents of its nutritional values. This was followed by the launch of Vegetable Atta Noodles and re-launch of Maggi soups in 7 variants. The next year saw Vegetable Dal Atta noodles launched which was rejected by the consumers and it was then pulled out. Whenever they have launched variants of the original product, they haven't been that successful and have ultimately rolled it back, says Ramanathan. There have been other casualties on the way as well. Remember Maggi pickles and jams, macaroni, snack mixes ? Maggi as a category has performed very well. It had a 21.7% volume growth in calendar year 2009-10 and a 60% incremental growth in volumes, according to a report by Angel Broking. From a revenue contribution point of view, milk and nutrition products are the largest, but the foods category under the Maggi brand is the fastest growing. But it'll have to work aggressively to make sure it retains its leadership. Apart from the big campaigns, they haven't been doing enough recently. There have been new products and variants launched, but the awareness generation has not been much. It seems that some of the lessons learnt (like free sampling) have been unlearnt. One must remember that for food category, people would really like to sample and then decide," says Ramanathan.

http://toostep.com/insight/maggi-growth-strategies-simplified

The story behind Maggi

In the early 1980s India was opening up to the world after three and a half decades of selfexistence. Till then, the concept of fast food was practically non-existent. Nestle had already been pipped to the post by Cadbury in the milk chocolate segment and it desperately

wanted to create a niche for itself in the high potential Indian market. It was then that it realized that it could be a first-mover in the untapped instant food segment. Several years went by and a lot of money was spent and Maggi Noodles was born. The problems had only just begun. The biggest of them was the Indian psyche of the 80s. The conservatism which India showed in their culture boiled down to their palate also. They would rather stick to their Tandoori Chicken or Idli Sambhar than be a little more adventurous in trying a new taste. Maggi Noodles was a new taste from a new culture. It was then that Maggi Noodles became Maggi Instant Two-Minute Noodles. The whole point was to position Maggi as platform of convenience and soul food for the a fast growing section of the Indian population the working women. Heavy promotion was done on the same lines. But even this did not work. Sales were good but not as good as they wanted it to be. A research was carried out which revealed that the largest consumers of the brand were not the working women but young children in the Indian households. Realizing this, Nestle repositioned their brand using new promotional strategies and smart advertising. Marketing teams were sent out to schools to distribute free Maggi samples to take home. The kids would inevitably take their Maggi packets home and ask their mothers to prepare it for lunch or as a snack. The mothers would find that it took them only two minutes to make a proper hot meal for their children who would love it. They would refer it to their neighbors who would pass it on to distant bachelor cousins who lived alone and had to cook for themselves. Thus, the hugely successful viral campaign ensured that Maggi created a distinct affection in the hearts of its consumers unlike any other proprietary food of its time.

But the story was far from over. In 1997, Nissin the inventor of instant noodles launched its flagship brand Top Ramen in the Indian market with Shah Rukh Khan fresh from the success of super hits like Dilwale Dulhania Le Jayenge endorsing the brand. It was then that Maggi took its first false step it changed its taste to align itself with that of Top Ramens.

The results were disastrous. A generation which had grown up on Maggi could not accept the new taste and would rather give Top Ramen a try. Nestle was fast losing ground to Nissin. It took them two years to work out a new strategy accept the consumers verdict and get back to the basics. In 1999, Maggi relaunched itself with its original taste. It paid off handsomely and the faithfuls returned to their master. Top Ramen could no longer sustain the growth it built up in the two years. The next big hurdle came in 2004. The SARS epidemic of 2003 in South East Asia had led to widespread concerns regarding personal hygiene and health. Mothers were now more concerned regarding what their children were eating and maida in general was always considered to be low on the health aspect. In 2005 Maggi launched Atta Noodles with the tagline Taste bhi, health bhi. Although the advertisements showed Atta Noodles replacing the rotis and chapatis, this was never Maggis intention. It knew that thinking about that objective was a far cry and the main purpose was to convince mothers that their children was eating the right thing. In this sense, it scored over the Licia and Bambino semolina-based Macaroni products, which, though being an healthier alternative to Maggi, always tried to position themselves as a substitute for wheat based items of daily consumption. Within 10 months, Maggi Atta Noodles was declared a success and now they are foraying further with the Taste bhi, Health bhi campaign with products such as Multi-Grain Noodles. The above examples show that Maggi as a brand knows the customer and is willing to learn from its mistakes. It knows that its USP is convenience to make and good to eat and it sticks to that without pushing the envelope further in its campaigns. It has also leveraged its success to other food products the most notable of which is the Maggi ketchup which has garnered a market leader position of about 45% largely thanks to the Maggi brand and its positioning as a Different product ( Remember the tagline Its different!). The savior of many students (and especially the ones staying in hostels), there is little doubt as to why many regard Maggi as the greatest invention since the wheel.

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