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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.
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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 toincrease 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.
