“What Xerox is to photocopier and Colgate to toothpaste, Maggi is

to noodles in India”

-The Economic Times, in India-2003

THE MAGGI BRAND IN INDIA:

Brand Extension and Repositioning

A Brief Profile Of Nestle India LimitedNestle India Limited is a wholly owned subsidiary of Nestle SA, a Vevey, Switzerland based FMCG Company.*Started in 1959*Initially sold imported condensed milk and infant food in India.*In 1962- NIL setup its first manufacturing unit in Moga, Punjab in order to produce condensed milk products sold under the Milkmaid Brand

PRODUCT SEGMENT BRANDSMilk Products and Nutrition Ceremeal , Everyday, Milkmaid

Nestle-Fresh ‘n’ natural dahi, Jeera Rita, Milk and Slim Milk

Beverages Nescafe-Classic, Sunrise, 3 in 1,Milo

Prepared dishes and cooking aids MaggiChocolates and Confectionary Kitkat, Munch, Milkybar, Bar-one,

Polo, Eclairs, Acti-V, and Nestle Milk Chocolate

Background Launched in India in 1982 as Maggi 2 Minutes Noodles, an instant food

product Initially targeted working women Initial failure-Research conducted-focus shifted- “Convenience to fun” NIL aggressively promoted Maggi noodles Famous taglines- Mummy Bhook Lagi Hai Bas 2-minute Fast To Cook Good To Eat Sales pickedup, gain acceptance Brand extensions Product extensions Market share increased Maggi sauces advertising were getting popular- It’s Different Competition increased

Maggi after the Relaunch

In July 2001, Maggi replaced Nescafe, which has been the core brand since 1998.During recession phase 2001-02Introduction of smaller packs at lower price points.50gm pack prices 5 Rs.NIL Improvised existing distribution channel In the 1st quarter of 2002, NIL launched Maggi chinese noodles.In December 2002, NIL extended soups brand to maggi hot cup.(Tomato & Chicken)

Market penetration Strategy

• Promotional stratergy in school• Advertising straight focus on kids• Innovative new products – veg atta

noodles,dal atta noodles,cuppa mania• Availability of diff packages-

50,100,200gms,400gms-family pack• Conducting regular market survey

One of the key strategy to improve sales:

During 2003, NIL test-marketed ready to cook recipe mixes:

Paneer-tikka, chicken biryani & chicken-tikka.By 2003, India became the largest consumer

of maggi noodles in the world.Market share of Maggi v/s Top Ramen

Maggi 80%

Top Ramen 19%

SWOT ANALYSISStrength• Market leader• Brand loyally• Distribution channels• Innovative flavors

Weakness• Heavily dept on one flavor• Health related issues

Opportunities• Unexploited rural market• Increasing no. of working

youths• Affinity of Indians to Chinese

food

Threats• Strong presence of regional

competitors• Competitive pricing (top

Ramen)

The Health Angle

In 2000’s NIL took measures to transform into Health and wellness co.In 2004 introduced Healthier products.In march 2005,Maggi Brand took health route launched ‘Veg atta noodles’. Nutritional Value.

Ad. Campaign of Veg Atta NoodlesTagline “Taste bhi Health bhi”.NIL Spend heavily on Advertisement Atta Noodles – 50% spendings.New Ad showed maggi for all family. Mother-(Easy to cook healthy food) kids -(Saying Good to Taste)It was accepted by Indian public. Launched 4 varients-

Masala,Tamato,Curry&Chicken.

In Nov 2005,repositioned soups as “Maggi Healthy Soups”

Tagline “Taste bhi Health bhi”.In Dec 2005,Enviornment became competitive Dabur, Heinz, Hindustan Lever Ltd.Focused on Ad on sauces & ketchup “ Its different”.Market share-Sauces & ketchups Maggi-37%,Kissan-29%

Outlook….. According to FICCI, FOOD AND BEVERAGE SURVEY

published in Feb’2006 shown rapid rising segments- health foods, health foods supplements, convenience foods and branded foods

Changing life style and eating habits and increasing purchasing power

Increase in competition for Maggi Major competitor –ITC’s Sunfeast