Maggi Brand Audit

8/3/2019 Maggi Brand Audit

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Pr u t r t

St t

M t Leader

Brand Loyalty

Di tri tion C annel

Innovative Flavors and Indian TasteAdvertising Strategy

Weakness

Heavily Dependent on Noodles Category

Opport nitiesUnexploited RuralMarkets

Increasing Working Yout s

ThreatsCompetitors Strong Presence

Competitive Prices

Problems Faced by Brand in the Initial Few Years when the brand was For Working

Women:

Indian Psyche

Despite of Heavy Media Advertising Sales Did Not Improve

Research was conducted to find the roots ofthe problem.

Afterthe results were outthe Nestle repositioned the brand Convenience Product for

mothers and as a Fun Product for children.

Tagline Fastto Cook, Good to Eat was in line with positioning

Promoted the product further by distributing free samples and giving gifts on return of empty

packets.

STPD for Maggie:

Segmentation Targeting Positioning Differentiation

Age Kids Fast To Cook, good

To Eat

Taste

Eating Habits Youth 2 Minutes Noodles Flavor

Lifestyle of UrbanFamilies

Office Goers Taste Bhi Health Bhi Packaging

Working Women

Health ConsciousPeople

Segmentation to Differentiation:


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Product and Brand Management

Classic Noodles: or Kids between 5-10 ears

eg Atta Noodles or Health Conscious People

Rice Mania - or Teenagers

Cuppa Mania for Office Goers and Working Women

Some Historical Events in the Brand Journey:

ales Declined in 1990 As a remedial effect Maggie changed formulation from ried Base

to Air Dried Base.

Competition from Top Raman Increased tremendously as years passed by

ome of New Product Launches failed on face Dal Atta Noodles ambhar lavor

ome of new product launches did not prove as successful as Maggie Noodles Ketchups,

oups, tastemakers

Use Communication Mediums By Nestle For Maggie


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Pr u t r t

Market Penetration Strategies and Other Promotional Strategies used by Maggie:

PromotionalCampaign in Schools in the town having population more than 10000

Advertising Focusing On Kids

New Product Innovation according to DifferentConsumer Needs Veg Atta Noodles, Cuppa

Noodles

Availability in Different PackSizes 50 Grams, 100 Grams, 200 Grams and family packs-

Direct Impact on Affordability

Conducting RegularMarket Research

Focus on creating distinctive image based on twin benefits ofinstant and healthy noodles

with emphasis on health conscious consumers

Strengthened the distribution networkin rural areas within 100 KM of all metro cities

Competitive Pricing

Creative Interaction Blog For www. Maggie-club.in

Maggi was a sponsor for Hum Log, a populartelevision show on Doordarshan, Indias sole

channelin 1984.


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Pr u t r t

Maggiis now targeting its products atthe entire family and not only kids.

Maggi has recently launched MAIN AURMERI MAGGI campaign in commensuration of25 years

Maggi does not focus heavily on print media during its launch since its initial target

audience was mothers and kids.

Some advertisements in the print media were used to highlightthe convenience factor of

Maggi.

Print Ad By Maggie:

The above advertisement in various magazines in 2003 to celebrate 20 years ofitsproduct in india

Maggi has recently come out with advertisements in some weekly magazines forits new atta

noodles and rice noodles variants.Maggi rice noodles mania had the highest column centimeterin print duringjan aug 07

among the instant foods category.

Maggis expenditure on print media is much lower compared to

other media

Maggi noodles or retailers sales promotion initiatives:


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Pr u t r t

y Maggi was distributed free in schools and offices to promote trialy Return gifts on empty packsy Maggi fun book & stickers with funky animal facts

Display

Large pack sizes atthe top with decreasing pack sizes as going downward. Why? This isbecause that for a retail outletthe more value is generated large packthus they tryto project big size at convenience place.

Outer display shelves are purchased by company (Reliance mart .

Public relations:

The Maggi Club - the children under 14 were invited by press advertisements and

distribution ofleaflets to become a member of maggi club by sending logos cut from 5 empty

maggi wrappers. Maggi projected it as maggi clubbers are fun lovers and intended to use itas reference group.

Benefits offered to maggi-clubbers are various games like Snap safari game, Cap and mask

sets, travel India game, Disney today comic. To obtain each giftthe member has to send 5wrappers as purchase proof.

Some special privileges were given to regular members time to time like, discounted tickets

of Appu Ghar.

Organized Maggi school quizzes and sketching

The Economic Times, a prominent newspaper in India, in 2003. "Maggiis the leaderin

the Instant Noodles category because itis constantly improving its understanding ofthe

consumerto give them excellent and tasty products that provide nutrition, health, and

wellness.

Martial Rolland, chairman and managing director, Nestl India Ltd., in

2006. "Maggi has managed to enter Indian homes to change the traditional food

habits of Indian children on their promise of convenience. This brand has

understood the psychology of Indian mothers and positioned itself for

mother-child indulgence.

KNORR SOUPY NOODLES

Knorr recently launched another product line extension - Soupy Noodles. The brand is

currently running the campaign featuring its brand ambassador Kajol. Soupy Noodles

combines both the properties of soup and noodles. The brand is promoting this variant as a

new category to be carved out of Noodles. To penetrate in the noodle market dominated by


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Pr u t r t

NILs Maggi, HUL took the root of product innovation (expansion) Soupy noodles is not

entirely an innovation since a similar version called Curry Noodles exists in the market.

To counterattack HUL Maggi mightlaunch its version of soupy noodles. Ifthe taste is good,

Indian market will see the emergence of a new category of soup + noodles. Knorr Soupy

Noodles is launched in Karnataka, Andhra Pradesh, Kerala and Tamil Nadu. It will be

introduced across India in a phase wise manner.

The powder in Knorr Soupy Noodles is not simply a tastemaker or spices but actual soup

powder, with a taste and consistency similar to Knorrs flagshi p product. Noodles are not

perceived as a healthy food and Soup does not bring any excitement to kids. Thus, the idea

behind soupy noodles is FUN with HEALTH. To convey this idea in a better way, HUL has

roped Kajol as a brand ambassador and the Thoda Khao, Thoda Piyo proposition helped the

kids understand how to consume the product and made it fun atthe same time.

FOODLES

What makes Foodles unusual is that it is being offered under the Horlicks brand. Horlicks

was always sweet, even the biscuits and cereal bar. They wanted to extend the brand into a

savory or salty kind of product and Foodles was an opportunity to do that. Horlicks is already

a market leader in stimulants in the form of malted drinks. By branding Foodles under

Horlicks, GSK associated its new product in the Health food category without investing

much on creating awareness of its functional benefits. Its penetration will be easier since

Horlicks is a trusted brand and already finds its place in the households with children aged 6

12 years. In the case of Foodles, nutrition is going to be the differentiator, remaining

consistent with the plank already occupied by Horlicks. So besides the regular flavour,

Foodles will also be available in a multi-grain option viz. Vitamin-fortified and the four-grain

version.

The market growth ofFoodles is 3% p.a. and aims the target of 6% market share in a year or

so. Foodles has been able to garner 5 per cent of sales in the South and East where it was

soft-launched before going national. Its multigrain variant costs Rs 15 for 80 gm compared to

Maggi's Rs 10 for 80 gm.

TOP RAMEN

Its not Noodles, Its Smoodles. Smoodles means Smooth Noodles. Top Ramen is the second

largest Noodles brand in India trying hard for the past 18 years to beatMaggi Noodles. Top

Ramen is a global brand from Nissin. Launched in 1991, Top Ramen has been trying all

possible marketing tool to dethrone Maggi. In 2001, when Maggi changed its taste, Top

Ramen gained popularity and acceptance. Top Ramen always perceived as a premium brand

compared to the affordable Maggi. Forthe past 10 years, the brand has been distributed by

Marico. In 2008, the alliance was mutually called-off . Now Nissin is building its own

distribution network. Top Ramen could not offer any serious differentiation to Maggi either


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Pr u t r t

in terms of the product or brand because of which it lost its ground to Maggi. Top Ramen

also lost out when Maggi repositioned itselfin the health platform.

Top Ramen had its share of innovations. This brand is credited with innovating a new

category of cup-noodles in Indian market. The difference between cup noodles and instant

noodles is that cup-noodles need not be cooked, itis ready to eatjust after adding hot water

into it.

Top Ramen currently holds more than 90 % share in the cup-noodles market. Maggi has

recently entered the cup-noodles market with its brand Cuppa- Mania. Itis expected thatthe

entry of new players will expand the category. Unlike instant noodles where the brands are

targeting kids, Cup-Noodles is targeting adults. The segment aimed by Top-Ramen is 16-35.

Top Ramen Curry noodle comes with gravy which no other noodle company provided.

SMALL PLAYERS

Other brands that may not have the huge money power of the multinational giants but which

are piggybacking on the opportunity afforded by modern trade are Chings Secret and Smith

& Jones from CapitalFoods, the Future Groups private label brand Tasty Treat and Wai Wai

from Chaudhary Group.

Chings Secretis aimed at youth between ages 16-25, where there is a demand for something

spicier. Chings Instant Noodles are available in three delicious Chinese flavors, Schezwan,

Manchurian and Hot Garlic. Chings Secret has gone the college route to get closer to its

youth demographic. They have sponsored a large number of college shows in the country last

year and are also targeting the youth aggressively through Facebook. The Chings Secret

community on Facebook has over 118,000 fans following the brand. Chings Instant Noodles

launches with a multimedia campaign across TV, Cinema, Hoardings, Internet and Mobile.

Chings Khao BakiBhol Jao is the advertising tagline.

Tasty Treat offers spicy masala and has flavours like Punjabi masala and Mumbai masala

waiting in the wings to caterto localtastes. Future Group plays the game oflow costto get an

entry in noodle market.

Wai Wai is built around the USP of being a genuinely instant noodle that can be eaten

directly from the pack unlike Maggi which requires at least two minutes worth of cooking.

No other brand has such option. Wai Wais variant MiMi is in the Rs 5 space. While the

product was largely targeted towards kids, it helped get more people to sample the product.

To help the brand be recognised across kiranas and convenience stores TV is given much

importance. Just being presentin modern trade will not give sustainable value


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Pr u t r t

PARAMETERS Maggi Foodles Soupy Noodles

PositioningFastto cook good to

eatNourishment Noodles

A healthy and exciting

snack for kids

Variants25 flavours

worldwide

Ala Masala

Crazy Curry

MastMasala

Chinese ChowTomato Chatpata

Packaging

Chota pack (40 gms)

Single Pack (80 gms)

Double Pack

Pack of four

Regular Pack (80

gms)

Regular Pack (80

gms)

Prize Rs. 10Rs. 10 &

Rs. 15Rs. 15

Market Share 90% 3.5% NA

Questionnaire:

1) What product would you associate with the tag lines mentioned below?y 2 minute noodles/Bas 2

minute.

y Dont be a noodle, be asnoodle.

.

y More nourishingnoodles

..


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Pr u t r t

y Mummy bhooklagi

y Taste bhi, healthbhi

.

y Fastto cook, good toeat

2) What comes firstto your mind when you hearthe word Maggi?y Noodlesy Fast foody Snacksy Other

....

3) How do you perceive Maggi products?y Good for healthy Ready to eaty Junk foody Tastyy Fun eating

4) Rankthe following Maggi products with respectto frequency of purchase (1 being thehighest)

y Noodlesy Ketchupy Soupsy Cubes

5) On a scale of 1 to 5 rate Maggi noodles on the following parameters (1: highlyfavorable, 5: highly unfavorable)

y Tastey Variety/ flavorsy Hygiene/ purityy Availabilityy Packaging (SKUs)

6) Which variety of maggi noodles do you regularly buy?y Maggi masalay Maggi vegetable atta noodlesy Maggi dal atta noodlesy Maggi rice noodles maniay Maggi soupy noodlesy Others

.


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Pr u t r t

7) How would you rate Maggi noodles in terms of following parameters?y Expertise (Competent, Innovative & market Leader)y Trustworthiness (Dependable & keeps customers in mind)y Liability(Fun & Interesting)y None ofthese

8) According to you, which age group prefers Maggi noodles the most?y 4-12y 13-26y 27-40y 41 & abovey All

9) What according to you helped Maggi noodles to increase sales?y Affordable pricesy Continuous innovationy Variety and flavorsy Attractive advertisements

10)Which Maggi noodles advertisement first comes to your mind?

11)Which advertisements ofMaggi products do you like the most?y Noodles:mein aur meri maggiy Sauces:Its differenty Soups: taste bhi, health bhiy

Pasta:nutra-licious pasta

y Others:

12)According to you who are the biggest competitors forMaggi?y Noodles:

............

y Sauces:.

y Soups:

..

y Pasta:

13)Rankthe categories which maggi should lookin future in order of yourimportance:


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y Chocolatesy Salted potato chipsy Fruitjuicesy Processed foods (ready to use pastes, masalas)y Others

........

14)Your suggestions forimproving maggi noodles:

Profile Sheet:Age:

Sex:

Profession:

Monthly income:

Marital status:

Thank you for your answers.It has been a pleasure interacting with you.

f

Maggi Brand Audit

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