Description
BRAND IMAGE MEASUREMENT OF MAGGI NOODLE
! " Þ a g e
Praxis Business School
Brand Image Measurement
On
Maggi Noodles
Submitted to
Prof. S. Govindrajan
Product & Brand Management
Part 1: Brand Image Measurement
By
Anil Nandyala (B11005)
Richa Daruka (B11035)
Rohit Khattar (B11036)
Sonam Keshri (B11042)
# " Þ a g e
Index
Page No.
Executive Summary 3
BrieI History oI the brand & its Evolution over time 5
Instruments oI Data Collection to measure :
Quantitative Research Model 7
Qualitative Research Model 12
Presentation oI Iindings and conclusions Ior:
Quantitative Research Model 13
Qualitative Research Model 22
$ " Þ a g e
Executive Summary:
Brand image is the measure oI customer`s view oI the brand. We have chosen Maggi noodles
as our brand to measure the brand image.
The methods used Ior measuring brand image are
Brand Asset Valuator
Laddering Method
Brand Asset Valuator:
Instrument Ior data collection Questionnaire
Sample Size 33
The Brand Asset Valuator, a proprietary tool developed by advertising agency Young & Rubicam,
measures Brand Image by applying Iour broad dimensions: DiIIerentiation, Relevance, Esteem, and
Knowledge. Brand Asset valuator tells where the brand stands now and how does the Iuture look
like.
The current strength oI the brand is measure by Brand Stature, which is sum oI knowledge and
esteem oI the brand and the potential oI the brand is measured by Brand Vitality, which is the sum oI
diIIerentiation and regard. Brand strength and vitality are plotted on a powergrid to measure the
brand image.
Based on the analysis oI the survey it is Iound that Maggi gains highest in Knowledge, Esteem and
Relevance and stood second in diIIerentiation. When plotted in power grid Maggi lies in quadrant 1,
which means strong brand. Clearly, Maggi stands as leader as oI BAV, but Maggi stood second in
diIIerentiation, which means Ior Maggi to continue as a leader in the Iuture it has to work on
diIIerentiation.
LADDERING METHOD:
Instrument Ior data collection Laddering
Sample Size 10
Laddering reIers to an in-depth, one-on-one interviewing technique used to develop an understanding
oI how consumers translate the attributes oI products into meaningIul associations with respect to
selI, Iollowing means-end theory.
Means-End theory states people choose a product because it contains attributes that are instrumental
to achieving the desired consequences and IulIilling values.
% " Þ a g e
The laddering interview reveals people attribute noodles to the Iollowing values: SelI Esteem, Sense
oI belonging, Accomplishment & Responsibility. Many oI the attributes lead to accomplishment and
selI esteem values. The main attributes that Maggi should concentrate on are: Instant preparation,
Convenience, health, taste & variety. Based on the quantitative survey it is Iound Maggi is leader at
all the attributes except health. ThereIore, the positioning oI Maggi noodles should be maintained by
keeping these end values.
& " Þ a g e
Brief History of the brand & its Evolution over time
Nestle in the year 1982 launched Maggie in the Indian market. The brand 'Maggi' which is
Iamous Ior the 2 minutes Noodles is today an umbrella brand in a category that it created Ior
itselI in the packaged Iood segment in India largely because oI its Iirst mover advantage. The
product was so popular, that Maggi did to noodles in India, what Xerox did to photocopiers
worldwide.
The tagline used in the 80's was 'Fast to Cook. Good to Eat¨. The communication style
changed in the 90's where the kids would come home hungry and ask Ior Maggi quickly.
Maggi`s Iirst brand extension was in the year 1988 when they launched Maggi instant soups
with which Nestle became a pioneer in the packaged soup market in India.
The new Maggi launched in 1997 was thinner and with a diIIerent taste, it proved to be a
disaster as the customers did not like the taste oI the new Maggi and because oI which they
spend crores oI rupees to relaunch the 'old maggi' with the old taste.
By 2001 Maggi again became the leader in the segment oI instant noodles and at this time
they had a product range which consisted oI Maggi 2 minute Noodles, Maggi Sauces and
Ketchup, Maggi Pickles and Maggi Soups.
In 2004, NIL roped in Preity Zinta (Zinta), a Iamous Indian actress to endorse Maggi noodles
in order to strengthen the brand's image.(Traditionally,Maggi did not opt Ior celebrities and
the ads usually Ieatured mothers and kids.) The Ad was only made to promote the small
packs oI Maggi.
In 2005 Nestle made a very smart move. Maggi repositioned it as health and taste Iood
products. It knew that although kids love noodles, the parents were bothered about the health
aspect oI Noodles which was made oI Maida. Hence Maggi launched Maggi Atta Noodles
with the baseline " taste bhi health bhi" .With the introduction oI Maggi Atta even the parents
were happy consuming it.The changing preIerences oI Indian consumers added to the success
oI Maggi`s vegetable Atta Noodles as they were increasingly accepting instant Iood products
as a part oI their diet.
Maggi 2 minute me Khushiyan is the latest campaign adopted by Nestle to strengthen their
brand.
Currently there are many products which are being marketed by Nestle under the brand
Maggi:
MAGGI’S BRAND EXTENSON
NOODLES
Maggi Vegetable Multigrain Noodles
Maggi 2 Minute Noodles
' " Þ a g e
Maggi Vegetable Atta Noodles
Maggi Cuppa Mania
PASTA
Maggi Pazzta
SAUCES
Maggi Sauces
Maggi Pichkoo
Maggi Magic Cubes
COOKING AIDS
Magi Bhuna Masala
Maggi Coconut Milk Powder
Maggi Pizza Mazza
Maggi Masala-ae-Magic
( " Þ a g e
Instruments of Data Collection to measure
Quantitative Research Model
Brand Asset Valuator Model
The Brand Asset Valuator, a proprietary tool developed by advertising agency Young &
Rubicam, measures Brand Image by applying Iour broad dimensions: DiIIerentiation,
Relevance, Esteem, and Knowledge.
The 4 dimensions:
Differentiation measures the degree to which a brand is seen as diIIerent Irom others. It is the
ability Ior a brand to be distinguished Irom its competitors.
Relevance is the brand`s appeal. II a brand is not relevant, or personally appropriate to
Consumers, it will not attract or retain them.
Esteem measures how well the brand is regarded and respected. It reIlects its popularity and
perceptions oI its quality. The more a person believes in someone or something and its ability
to deliver on the promise, the more respect it commands.
Knowledge is the result oI all the marketing and communications eIIorts and experiences
consumers have had with a brand. Some brands makes you Ieel like you know the brand as
you would a close Iriend. This is called knowledge.
Relevance + Differentiation = Brand Strength
Esteem + Knowledge = Brand Stature
Brand diIIerentiation and relevance combine to determine 'brand strength¨. These two pillars
point to the brand`s Iuture value, rather than just reIlecting its past. Esteem and knowledge
together create 'brand stature¨, which is a barometer oI its past perIormance.
Rationale:
A BAV can be used to:
Assess brand health
Assess strategy payoII
Assess brand meaning
Assess positioning
Benchmark the brand
Evaluate partnership opportunities
Guide brand architecture
Evaluate Iinancial growth
Allocate resource
) " Þ a g e
DATA COLLECTION
Research Instrument
Questionnaires
Sample Details:
Sample Size: 33
Age Bracket: 20-30
*+,-./0112/3,
1. What are the various brands oI noodles you are aware oI?
2. IdentiIy the various brand oI noodles:
4 " Þ a g e
3. IdentiIy the given taglines with their respective brands:
4. Out oI your last 5 purchase oI noodles how many times did you buy each oI the Iollowing
brands or out oI last 5 times you had noodles?
Yippee Noodles:
Top Ramen:
Wai Wai:
Maggi Noodles:
Horlicks Foodles:
Knorr soupy noodles:
5. Which brand delivers their brand`s promise most? (scaling 6 to 1, where 6 being the
highest and 1 being the lowest)
!5 " Þ a g e
6. What comes to your mind when you think oI the Iollowing brands:
Yippee Noodles:
Top Ramen:
Wai Wai :
Maggi Noodles:
Horlicks Foodles:
Knorr soupy noodles:
7. From the brand listed below which brand do you think have similar oIIerings? II any
8. Which attributes are important Ior you in noodles: (tick the ones which are important Ior
you)
!! " Þ a g e
9. Which brand oI noodles do you associate with the above chosen attributes? (Tick under
the name oI the brand )
10. Are you aware about the concept oI 'Meri maggi mein 2 min ki khushiyan¨ (Your
experience with the brand)?
Yes:
No:
11. Kindly indicate your degree oI agreement Ior the statements given below about 'Meri
maggi 2 min mein khushiyan¨.
!# " Þ a g e
Instruments of Data Collection to measure
Qualitative Research Model
Reynolds and Gutman’s “LADDERING METHOD”
Laddering reIers to an in-depth, one-on-one interviewing technique used to develop an
understanding oI how consumers translate the attributes oI products into meaningIul
associations with respect to selI, Iollowing means-end theory. Hence, to understand the in-
depth underlying motivators a laddering technique should be used.
Laddering originated in consumer research and relies heavily on Means-End Theory which
states that people choose a product because it contains attributes (the means) that are
instrumental to achieving the desired consequences and IulIilling values (the ends) The
common generic means-end chain, thereIore, consists oI attributes (A), consequences (C) and
values (V).
Attributes -> Consequences -> Values
Rationale: The objective is to provide a detailed description and analysis about the internal
value that a consumer associates with the product.
DATA COLLECTION
Research Instrument
Laddering / Depth Interview
Sample Details:
Sample Size: 10
Age Bracket: 21 28
Composition: Men ÷ 40°, Women ÷ 60°
!$ " Þ a g e
Presentation of findings and conclusions for the
Quantitative Research Model:
BRAND ASSET VALUATOR
BRAND KNOWLEDGE:
Knowledge means being aware about the brand and understanding what the brand or service
stands Ior. Brands like Knor soupy noodles, sunIeast yippee,wai-wai,horlicks Ioodles & top
raman are taken as competitors to measure the brand awareness oI magi noodles.
The questions asked to measure brand awareness are:
'What are the various brands oI noodles you are aware oI?¨
'IdentiIy the various brand oI noodles: '
ºIdentiIy the given taglines with their respective brands:¨
!% " Þ a g e
This question measures the top oI the mind recall oI all the brands oI the noodles.
The second question checks iI they are aware about the diIIerent brand oI noodles by
showing them the packs oI diIIerent brands
The third question asks the respondent to identiIy the taglines oI diIIerent brands. Tagline
communicates what the product is meant Ior so iI they identiIy the brand by the tagline that
means they have knowledge about the brand and what it is meant Ior.
The result oI Brand knowledge (as per the questionnaire) is as Iollows:
88Anu knCWLLuCL
A118l8u1LS lCCuLLS knC88 MACCl 1CÞ 8AMLn WAl WAl ?lÞÞLL
AWA8LnLSS 9 10 32 27 10 18
ÞlC1u8LS 10 21 21 22 16 17
1AC LlnLS 13 27 24 11 11 13
Su8 1C1AL 32 38 77 60 37 30
ÞL8CLn1lLL 16.67 66.67 100 83.33 33.33 30
0
20
40
60
80
100
120
6789: ;9<=>?
?
From the data we can clearly say that Maggi noodles has highest brand awareness vis-a-vis
the competitors in all the criteria chosen i.e. top oI the mind recall, brand identiIication by
packaging and tag lines.
BRAND ESTEEM
Brand esteem is a measure to check how consumers regard the brand i.e. brand personality. In
other words it measures whether a brand has positive or negative brand personality.
The questions taken to measure the brand personality are:
lCCuLLS knC88 MACCl 1CÞ 8AMLn WAl WAl ?lÞÞLL
!& " Þ a g e
Out oI your last 5 purchase oI noodles how many times did you buy each oI the Iollowing
brands or out oI last 5 times you had noodles?
Which brand delivers their brand`s promise most? (Rating scale 1 to 6,1 being the lowest & 6
being the highest)
Brand
Yippee Noodles
Top Ramen
Wai Wai
Maggi Noodles
Horlicks Foodles
Knorr Soupy Noodles
The last Iive purchase oI a product shows the association oI a customer with the product and
iI the customer thinks that the brand delivers its promise it means the customer regards the
brand.
The result Ior the Brand Esteem (as per the questionnaire) is as Iollows:
88Anu
LS1LLM
CuLS1lCnS lCCuLLS knC88 MACCl
1CÞ
8AMLn
WAl
WAl ?lÞÞLL
88Anu Þ8CMlSL 88 118 182 127 112 103
LAS1 3 CCnSuMÞ1lCn Cl
nCCuLLS 3 9 103 13 24 11
Su8 1C1AL 91 127 287 140 136 116
ÞL8CLn1lLL 16.67 30 100 83.34 66.67 33.33
!' " Þ a g e
lrom Lhe above daLa we see LhaL Maggl has scored Lhe hlghesL ln Lerms of esLeem whlch
means Lhe consumers regards Lhe brand and are hlghly assoclaLed wlLh lL.
BRAND DIFFERENTIATION:
DiIIerentiation is how distinct the brand is Irom the competition. DiIIerentiation is the one
that helps the brand to charge premium.
For measuring the diIIerentiation oI Maggi Iollowing questions were asked
What comes to your mind when you think oI the Iollowing brands?
This question is Iramed to Iind what prominent characteristic made the consumer to buy the
product
From the brands listed below which brand do you think have similar oIIerings? II any
This question is Iramed to Iind the uniqueness oI the brand, i.e how many respondents Ieel
the brand is diIIerent Irom the competition.
The result Ior Brand DiIIerentiation (as per questionnaire) is as Iollows:
8rand
ulfferenLlaLlon
ALLrlbuLes lCCuLLS knC88 MACCl
1CÞ
8AMLn WAl WAl ?lÞÞLL
0
20
40
60
80
100
120
lCCuLLS knC88 MACCl 1CÞ 8AMLn WAl WAl ?lÞÞLL
6789: ?AB??C
!( " Þ a g e
lun 0 0 2 0 0 3
SÞlC? 0 0 1 1 3 1
SCuÞ? 0 13 0 0 0 1
8Cunu 0 0 0 0 0 6
1AS1? 0 3 6 11 3 2
LCnC nCCuLLS 0 0 0 0 0 1
SMCC1P 0 0 0 4 0 1
nCn S1lCk? 0 0 0 0 0 1
lAS1 1C CCCk 0 0 6 0 0 0
CCnvlnLAn1 0 0 2 0 4 0
vALuL lC8
MCnL? 0 0 2 0 0 0
vA8lL1? 0 0 1 0 0 0
PLAL1P? 13 0 3 0 0 0
1C1AL 13 18 23 16 10 16
unlCuLnLSS 17 13 8 11 13 10
Su8 1C1AL 32 33 31 27 13 10
ÞL8CLn1lLL 83.33 100 66.67 30 33.33 16.67
From the survey it is Iound that Knorr has the highest diIIerentiation Iollowed by Foodels and
Maggi. One reason why Knorr & Foodels has highest diIIerentiation over Maggi is Knorr &
Foodels diIIerentiated by products as soupy & healthy, where as Maggi diIIerentiated as 2
min noodle`s I.e. purely psychographic.
0
20
40
60
80
100
120
lCCuLLS knC88 MACCl 1CÞ 8AMAn WAl WAl ?lÞÞLL
6321D :/EE,3,1./2./01
!) " Þ a g e
BRAND RELEVENCE :
Relevance is how well the brand satisIies the need oI the customer.
For measuring the brand relevance oI Maggi Iollowing questions were asked:
Which attributes are important Ior you in noodles: (tick the ones which are important Ior you)
Which brand oI noodles do you associate with the above chosen attributes? (Tick under the
name oI the brand)
The Iirst question was asked to Iind what attributes are important when buying noodles and
second to measure which brand is satisIying that needs/wants (Ior each customers) better than
the competitors
The result Ior Brand Relevance (as per questionnaire) is as Iollows:
88Anu 8LLLvAnCL
8BB7F6GB?A lCCuLLS knC88 MACCl 1CÞ 8AMLn WAl WAl ?lÞÞLL
lun 0 1 1 0 1 2
1AS1L 0 0 24 8 0 0
CCnvlnLAn1 0 6 17 0 0 0
PLAL1P? 10 0 0 8 0 0
vA8lL1? 0 1 16 0 0 1
CuALl1? 2 1 20 2 0 0
ÞACkAClnC 0 0 1 0 0 0
vALuL lC8 MCnL? 0 0 14 1 3 1
nCn S1lCk? 0 0 0 4 4 6
LCnC nCCuLLS 0 1 1 1 0 4
Su8 1C1AL 12 10 94 24 10 14
ÞL8CLn1lLL 30 23 100 83.3 23 66.7
0
20
40
60
80
100
120
lCCuLLS knC88 MACCl 1CÞ 8AMLn WAl WAl ?lÞÞLL
6789: 7?>?H89I?
!4 " Þ a g e
From the survey we Iound that Maggi is more relevant in satisIying the needs/ wants oI the
customers. Some oI the reasons Maggi is more relevant than competitors are variety,
presence & aIIordability.
We have asked two questions related to the campaign 'Meri Maggi-2 minute me khusiyan¨ in
our questionnaire to check the brand esteem & knowledge oI the product.
'Meri Maggi-2 minute me khusiyan¨ is the latest ad campaign oI the noodles brand which
aims to Iind out the emotional attachment oI people with the brand as an old brand like
Maggi does not only oIIer product but also some emotional attributes with it.
The Iollowing are the questions asked:
Are you aware about the concept oI 'Meri maggi mein 2 min ki khushiyan¨ (Your experience
with the brand)?
Kindly indicate your degree oI agreement Ior the statements given below about 'Meri maggi
2 min mein khushiyan¨.
Statements Brand
It is innovative and something new
It increased emotional connection with
the brand
It increased your interest in the brand
It is a source oI Iun & enjoyment
It motivated you to buy the brand more
Irequently
It gave you a sense oI recognition as a
customer oI the brand
The result oI the question asked is as Iollows:
28
3
0
3
10
13
20
23
30
8J23,1,-- 2K0+. .L, M2NO2/P1
Aware unaware
#5 " Þ a g e
From the survey we Iound that most oI the respondent knows about the campaign and they
think it`s innovative & something new. The campaign can allow the consumers to own the
brand and talk about their unique experience relating to the brand which in turn will help
increasing the brand esteem and knowledge
The Iollowing table shows the brand stature and brand strength Ior each brand:
Brand Brand Strength Brand Stature
Horlicks Foodles 66.67 16.67
Knorr 62.5 58.34
Maggi 83.34 100
Top Ramen 66.67 83.33
Wai-Wai 29.17 50
Yippie 41.68 41.67
(Brand strength is calculated as the average oI relevance and diIIerentiation and Brand
strength is calculated as the average oI knowledge and esteem)
The above data is plotted in the power grid below:
0
0.3
1
1.3
2
2.3
3
3.3
4
4.3
lnnovaLlve and
someLhlng new
LmoLlonal
connecLlon wlLh
Lhe brand
lL lncreased your
lnLeresL ln Lhe
brand
lL ls a source of
fun and
en[oymenL
lL moLlvaLed you
Lo buy Lhe brand
more frequenLly
72./1P 0E .L, -.2.,N,1. 3,Q2.,D .0 .L,
M2NO2/P1
Conclusion:
We can clearly see that Maggi has the highest Brand Stature and Brand Strength which
means it is the leader Iollowed by Top Ramen and Knorr Soupy noodles which are again high
on Brand Stature and Brand Strength that means they are doing well now and will be able to
perIorm well in Iuture. Horlicks Foodles is high on brand strength but low on stature which
means it is an emerging and niche brand. SunIeast Yippee and Wai-Wai are both low on
stature and strength.
The main beneIit Maggi is enjoying over the rest is early mover advantage. But, now the
competition Irom HUl`s Knorr, SunIeast yuppie and Horlicks Foodels, which are
diIIerentiating highly on product characteristics such as soupy, non sticky and healthy made
Maggi lose race in diIIerentiation. So Ior Maggi to keep leadership position is highly
dependent on its diIIerentiation.
#! " Þ a g e
## " Þ a g e
Presentation oI Iindings and conclusions Ior the
Qualitative Research Model:
Plerarchlcal value Maps of Magglnoodles
`
varleLles PealLhy no Cll 1asLe Affordable Slze
ConvenlenL lnsLanL
noL geL
bored
Cood for body
and healLh
R+1S
Ln[oymenL
SaLlsfy
LasLe bud
C00D 3,N2/1- P00DS
SLress busLer
ConcenLraLe on day
Loday acLlvlLles
Save money
Lasy Lo Carry
ShorLage of
Llme
SLudylng
laLe nlghL /
uo offlce
work
Savlng Llme
from PecLlc Llfe
use Llme for oLher acLlvlLles
8MM0NOQ/-LN,1.S
CeL mosL from llfe
7,-O01-/K/Q/.TS
LffecLlve
uLlllsaLlon of
resources
uo Soclal AcLlvlLy
A,QE ?-.,,NS
Self lmage
Self recognlLlon
Self SaLlsfacLlon
A,1-, 0E
K,Q01P/1P
Makes Llfe
Lasy
MeeLlng
Coals /
Cb[ecLlve
no wasLage
#$ " Þ a g e
8BB7F6GB?A I<9A?*G?9I?A H8>G?A
lnsLanL
ConvenlenL
(Lasy Lo cook)
no Cll
PealLhy
1asLe
varleLy
Slze
Savlng Llme from
hecLlc llfe
uo soclal acLlvlLy
Self saLlsfacLlon
ShorLage of Llme
SLudylng laLe nlghL
uo offlce work
MeeLlng goals/
ob[ecLlve
use Llme for oLher
acLlvlLles
ConcenLraLe on day Lo
day acLlvlLles
Cood for body and
healLh
Mood remalns good
SLress busLer
lun / Ln[oymenL
SaLlsfy LasLe bud
noL geL bored
Lasy Lo carry
Save money
Makes llfe easy
no wasLage
Self LsLeem
Sense of
belonglng
AccompllshmenL
8esponslblllLy
1he ladderlng lnLervlew reveals people aLLrlbuLe noodles Lo Lhe followlng values: Self LsLeem, Sense
of belonglng, AccompllshmenL & 8esponslblllLy. Many of Lhe aLLrlbuLes leads Lo AccompllshmenL
and Self LsLeem. 1he maln aLLrlbuLes LhaL should be concenLraLed are lnsLanL, Convenlence (Lasy Lo
cook), PealLh, 1asLe & value. lrom Lhe CuanLlLaLlve survey lL ls found LhaL Maggl ls leader ln all
Lhese aLLrlbuLes excepL PealLh, even Lhough lL's 1agllne ls ºPealLh bhl 1asLe bhl".
1herefore, Maggl should poslLlon lLs noodles based on Lhese end values. 1he currenL
adverLlsemenLs are malnly poslLlonlng Maggl as 2 mln noodles, whlch are saLlsfylng many of Lhe
maln aLLrlbuLes requlred for creaLlng Lhe end values. Maggl should promoLe lLs Lag llne more
aggresslvely for saLlsfylng more end values of Lhe users.
! " ! " # $
Praxis Business School
Brand Equity
On
Maggi Noodles
Submitted to
Prof. S. Govindrajan
Product & Brand Management
Part 1: Brand Image Measurement
By
Anil Nandyala (B11005)
Richa Daruka (B11035)
Rohit Khattar (B11036)
Sonam Keshri (B11042)
# " ! " # $
Index
Page No.
Executive Summary 3
Brand Equity 5
Analysis Measure oI Brand Equity
Loyalty 10
Price Premium
Leveragibility 15
Recommendation 17
Annexure 18
$ " ! " # $
Executive Summary:
Brand equity as a concept has emerged and gained popularity in 1980`s. Until than brand was
one oI the neglected aspect oI total marketing. Lot oI the development oI in the Iield oI brand
management owes to brand equity concept.
Brand Equity is the ability oI the brand to manage the changed market conditions. It is
dependent on two Iactors Existing & Changed conditions.
Existing conditions can be Iound using BAV (Brand Asset Valuator), which we have done in
Phase-1 oI the project.
Changed market conditions can be broadly classiIied in to two categories, Iirst being
competition and second being LiIe cycle oI the category & Leveragability oI the brand.
Competition is subdivided in to Iour parts
Loyalty with respect to the competition
Price premia gives whether the brand has Ilexibility with price
Distribution strengths oI all brands
Based on the survey, with sample size oI 37 & secondary research Iollowing conclusions are
drawn.
Conclusions Derived from Analysis:
Loyalty: The preIerence oI Maggi is very high compared to competitors and recommendation by
consumers is as high as 94°, which shows the brand has high loyalty. But, Irom the analysis we
Iound that gravity oI the brand is low as compared to Iocus that indicates Maggi is not able to hold all
its customers the reason could be sales promotion strategy, urge to try new brands and retail`s push is
high in this category.
Price Premia: As per the Van Westendor model the price of a product should fall between the range
of bargain and getting expensive. As per our survey maggi customers feel value for money when the
product price is under price range of 9-11 Rs that is equal to market price. Customers feel it is getting
expensive at a price range of 12-14 for a 100gm pack. So from this we can say Maggi is treated as
value for money brand.
Leveragability: From the survey it is found that more than 35% of consumers feel that Maggi can
enter in to cookies, Chips, health drinks & Juices. Only 3% of the consumers feel that Maggi brand
cannot be leveraged for other products. The over all leveragability of the brand Maggi is very high.
% " ! " # $
Recommendations:
From the survey & Secondary Research it was Iound that Loyalty & Distribution network oI
Maggi is Iar ahead oI competition. But, Increasing competition Irom Knorr & Yuppie that
have good distribution network may hurt Maggi in Iuture. For Maggi in order to retain it`s
existing market share depends on how well it can engage consumers. Maggi`s consumer
engaging programs like 'Meri maggi 2 min mein khushiyan¨ will play a crucial role.
Analysis oI Poters Iive Iorces reveals that category has low entry & exit barriers and the
product has many substitutes so it`s better Ior maggi to leverage it`s brand strength in other
category oI products. The survey shows that Maggi can leveraged in the categories such as
Cookies & biscuits, chips, health drinks & Juices.
& " ! " # $
BRAND EQUITY:
History: Brand equity as a concept has emerged and gained popularity in 1980`s. Until than
brand was one oI the neglected aspect oI total marketing. Lot oI the development oI in the
Iield oI brand management owes to brand equity concept.
According to Davis A.Aaker, brand equity is a set oI assest(and liabilities) linked to a brand`s
name and symbol, that adds to (or subtracts Irom), the value provided by a product or service
to a Iirm.
Brand equity is the added value endowed on products and services. It may be reIlected in the
way consumers think, Ieel, and act with respect to the brand, as well as in the prices, market
share, and proIitability the brand commands Ior the Iirm.
Brand Equity is the ability oI the brand to manage the changed market conditions. It is
dependent on two Iactors Existing & Changed market conditions.
Brand Equity is the ability oI the brand to manage the changed market conditions. For a
brand to with stand the changed conditions is dependent on the brand`s existing conditions
that can Iound by using BAV (Brand Asset Valuator) and changed market conditions that is
dependent on the competition and product liIe cycle.
%&'()'*+
,-*.')'-*(
/01*. 1((%)
21341)-0
/01*. %54')6
,71*+%.
,-*.')'-*(
3-613)6
,-8!%)')'-* !0%8'48
.'()0'/4)'-*
!0-.4,) 3'9%
,6,3%
3%2%01+'/'3')6
' " ! " # $
The ability oI a brand to with stand the competition is broadly classiIied in to Iour Iactors
LOYALTY: The extent oI the IaithIulness oI consumers to a particular brand, expressed
through their repeat purchases, irrespective oI the marketing pressure generated by the
competing brands.
METHODS TO FIND BRAND LOYALTY:
COLOMBO MORRISON MODEL:
Colombo and Morrison distinguished buyers in to two groups. Hard-core loyals, who buy the
same brand with absolute certainty at every single purchase occasion. Potential switchers,
who choose at every purchase occasionally one oI the brands according to a certain
probability distribution.
ThereIore, the two important parameters oI the model reIlect a brand`s reliance on highly
loyal customers and its success in attracting brand switchers. The Iirst groups are those who
have a positive attitude toward the brand (preIer it) and who buy it. The second groups are
those who buy it on a given purchase but who may preIer another brand.
An assumption oI the model is that every consumer has a preIerred brand. II these consumers
have a preIerence, why are they 'switching?¨ Although all consumers have a preIerred
brand, some preIerences are stronger than others. Weak preIerences characterize potential
switchers. Potential switchers may be variety seekers; or, they may be responding to sales
promotions or other situational Iactors. By considering the relative preIerences and
purchases, the model computes an ability oI each brand to attract consumers Irom each other
brand.
Share Tier Model:
This model takes into account two parameters Price & Quality. This model takes in to
account two parameters Price & Quality. It tests the belieI and checks whether the belieIs are
getting translated into Behaviour, i.e. actual purchase. It also helps to Iind out the price level
oI price sensitivity that a particular brand has. This model also helps in gauging the resilience
and leveragability oI the brand.
Rational for choosing Colombo Morrison Model:
The category noodles we have chosen Ialls under low level oI involvement that means
people`s chance oI trying other brand is high. Analyzing Colombo Morrison Model gives the
reasons why people choose other brand over preIerred brand. This model helps to Iind out the
problems existing in the brand.
( " ! " # $
PRICE PREMIA: It is the ability oI the brand to charge the premium
METHODS TO FIND PRICE PREMIUM:
Brand Price Trade off Method:
BPTO is one oI the simplest to Iind relative value oI the brand compared to competitors. In
this method diIIerent brands are shown to customers and they are asked to choose their
preIerred brand at the same comparable price level. Then prices oI the products are revised
and then the customers are asked to choose Irom the adjusted price level.
The ranking oI the preIerred can be inIerred in relation to the prices customers can pay or
willing to pay.
Van Westerndrops Price Sensitivity Meter::
The method was developed in the 1970s by Dutch economist Peter H. Van Westendorp. The
Price Sensitivity Meter (PSM) is a market technique Ior determining consumer price
preIerences.
The traditional PSM approach asks Iour price-related questions, which are then evaluated as a
series oI Iour cumulative distributions.
At what price would you consider the product to be so expensive that you would not
consider buying it? (Too expensive)
At what price would you consider the product to be priced so low that you would Ieel the
quality couldn`t be very good? (Too cheap)
At what price would you consider the product starting to get expensive, so that it is not out
oI the question, but you would have to give some thought to buying it? (Expensive/High
Side)
At what price would you consider the product to be a bargaina great buy Ior the money?
(Cheap/Good Value)
A graph is plotted by taking price on X-axis & number oI respondents on y-axis.The Optimal
Price Point (OPP) is the place on the graph that too inexpensive line crosses too expensive
line. The Optimal Price Range/Band is the area in the graph between the PMC (Point oI
Marginal cheapness) and PME (Point oI Marginal Expensive). PMC is where too
inexpensive crosses expensive. Whereas the PME is where inexpensive crosses too
expensive. The PMC is the threshold where the product becomes cheap and the PME is the
threshold where the product becomes expensive.
Changes Made to Van westendorps price sensitivity Meter: As per the method the
questionnaire should be open ended. Open ended questions in this method works well when
the level oI involvement Ior the product is high. Since, the category we have chosen Iall
under low level oI involvement, Closed end questionnaire gives better results.
) " ! " # $
Rational for choosing Van westendorps price sensitivity Meter:
This method gives clear about how consumers perception about a product changes with the
change in price oI the product.
Rational for not choosing Brand Price Trade-off Method:
This method gives relative value oI a brand compared to its competitors. Since, Maggi has a
market share oI around 90° and the rest oI the brands sharing 10° market share, adopting
this method makes results skewed towards Maggi. In order get better results using this
method we have take more sample size Ior competitors.
DISTRIBUTION: The main advantage oI Maggi over other brands is early mover advantage
& distribution network. Only Iew noodles brands like Maggi, Yuppie & Knorr has good
distribution network. But Yuppie & Knorr are still in the early growth stage. Wai-Wai is
present only in Eastern region & Top Ramen has entered tie-up with Marico to tap other
markets. Clearly Maggi has the advantage over other brands in terms oI availability.
PRODUCT LIFE CYCLE: Product liIe cycle is a tool that provides a way to trace the
stages oI product`s acceptance Irom introduction to decline. The market share oI Maggi
noodles is around 90°. The present market size oI instant noodles is Rs 1300 crore and is
expected to grow around Rs 3000 3500 crore by 2015. But, increased competition Irom
SunIeast Yuppie, HUL`s Knorr & other brands make hard Ior Maggi to increase its market
share.
* " ! " # $
LEVERAGIBILITY: It is the power oI the existing brand name to support a company`s
entry in to a new product category. The new category can gain the strength oI existing
Brand because consumers relate pre-existing knowledge oI a brand`s level oI quality with
new category oI products.
!+ " ! " # $
Analysis Measure of Brand Equity
Questionnaire for Loyalty:
Which among the Iollowing brands do you preIer most?
Which brand oI noodles did you purchase/have last time?
Rational: As per the Colombo Morrision model we aim to Iind out the Iocus percentage
which tells the purchase made by customer who preIer the brand by the total number oI
customers who purchase the brand and the gravity percentage i.e. the customers who preIer
the brand by the total number oI people who buy the brand.
Last Brand Purchased
Yippee
Horlicks
Foodles
Maggi
Wai
Wai
Top
Ramen
Knorr
Soupy
Noodles
Total
P
r
e
f
e
r
r
e
d
B
r
a
n
d
Yippee X X**
Horlicks Foodles X
Maggi X
Wai Wai
X
Top Ramen X* X
Knorr Soupy
Noodles
X
Total
Where,
X ÷ No. oI customer loyal to their brand
X*÷ Customers who preIer Top Ramen but their last purchase made was Yippee i.e they
switch
X** ÷ Customers who preIer Yippee but their last purchase made was Yippee
!! " ! " # $
Last Brand Purchased
Yippee
Horlicks
Foodles
Maggi
Wai
Wai
Top
Ramen
Knorr
Soupy
Noodles
Total
P
r
e
f
e
r
r
e
d
B
r
a
n
d
Yippee 2 0 1 0 0 0 3
Horlicks Foodles 0 0 0 0 0 0 0
Maggi 3 0 29 0 0 1 33
Wai Wai 0 0 0 0 0 0 0
Top Ramen 0 0 1 0 0 0 1
Knorr Soupy
Noodles
0 0 0 0 0 0 0
Total 5 0 31 0 0 1 74
In the above table column Total shows the share oI preIerence oI each brand. Over here
Maggi`s share oI preIerence is 44.59° (33/74). Row Total tells us the market share Ior each
brand. According to the response taken Irom 37 respondents, the market share Ior Yippee is
6.75°, Ior Maggi is 41.89°, Ior Knorr soupy noodles its 1.35° and Ior rest all other brand
its 0.
From above matrix we derive the Gravity and Focus Ratio Matrix
Gravity Focus
Yippee 67° 40°
Horlicks Foodles 0° 0°
Maggi 88° 94°
Wai Wai 0° 0°
Top Ramen 0° 0°
Knorr Soupy
Noodles
0° 0°
Industry 42° 42°
Industry minus
Maggi
6.5° 6.1°
,:;<=>$
?=@"? <=
A;
BA"CD
!# " ! " # $
From the above Gravity and Focus matrix we can see that the
Industry Average oI both Gravity and Focus Ratio is 42° which is calculated as
|(2¹0¹29¹0¹0¹0)/74| i.e. the loyalty consumers oI all the brand by total consumers (both
preIerred and purchased).
II we look upon Maggi`s Gravity Ratio: 88° and Focus Ratio: 94°. Though both the gravity
and Iocus ratio is greater than the industry average, but Maggi is not able to convert its
preIerred to purchase because its gravity ratio is greater than its Iocus ratio.
Whereas, Yippee noodles are able to convert its preIerred customers to purchase customers,
since its Iocus ratio is less than its gravity.
Here, Iocus ratio(94°) oI Maggi is more than IiIteen times to that oI Industry minus maggi`
Iocus ratio(6.1°). It means that that loyalty oI maggi is increasing. ThereIore the brand is
robust to genearte Iuture cash Ilow.
If you get similar noodles (as your preferred brand) at a cheaper price, will you switch
to that brand?
Rational: This question is actually to check iI in the changing situation a new brand comes in
with a price less than maggi will the customers switch to the brand or not. This tells us the
threat oI competitors price per se and so that we can be prepared Ior any such changes.
EFG
HIG
JG
KJG
IJG
LJG
HJG
EJG
MJG
NJG
3=@"? (OP<QR$A;
,-./-0123- 45 64726 208 9:;1/<-.9 45 =233;
!$ " ! " # $
If your preferred brand is not available, what will you do?
Rational: The question was asked to check the degree oI loyalty, as people who will buy
only maggi even iI it is not available in a shop indicates he is very loyal to the brand.
KIG
LLG
EEG
JG
KJG
IJG
LJG
HJG
EJG
MJG
' OP?? C=< B / "C=<R$A BA"CD / SA=> =<R$A ;R=TU$$T$A
>.208 ?472617
Do you recommend your preferred brand to others?
Rational: The question again measures the degree oI loyalty oI a customer as a highly loyal
customer oI a brand becomes a brand.
VHG
MG
JG
KJG
IJG
LJG
HJG
EJG
MJG
NJG
FJG
VJG
KJJG
0$Q=>>$CD .=$; C=< 0$Q=>>$CD
@-/4AA-0821;40 B7 1<- /409CA-.9
!% " ! " # $
Conclusion for Loyalty:
The preIerence oI Maggi is very high compared to competitors and recommendation by consumers is
as high as 94°, which shows the brand has high loyalty. But, Irom the analysis we Iound that gravity
oI the brand is low as compared to Iocus that indicates Maggi is not able to hold all its customers the
reason could be sales promotion strategy, urge to try new brands and retail`s push is high in this
category.
!& " ! " # $
Price Premia :
Question: At what price range would you consider your preIerred brand to be so expensive
that you will not consider buying it?
Rational: This question was asked to Iind at what price range consumers think the price oI
the product is too expensive and would not aIIord to buy.
Question: At what price range would you consider your preIerred brand to be so low that you
will Ieel the quality will not be good?
Rational: This question was asked to Iind at what price range consumers think the price oI
the product is too cheap and quality is deteriorated.
Question: At what price range would you consider your preIerred brand starting to get
expensive, so that it is not out oI the question, but you have to give some thought to buy it?
Rational: This question was asked to Iind at what price range consumers think the price oI
the product is getting expensive, but give some thought to consider it
Question: At what price range would you consider your preIerred brand to be a bargain, a
great buy Ior money?
Rational: This question was asked to Iind at what price range consumers think the price oI
the product is value Ior money.
!' " ! " # $
Conclusion for Price Primia:
As per the Van Westendor model the price of a product should fall between the range of bargain and
getting expensive. As per our survey maggi customers feel value for money when the product price is
under price range of 9-11 Rs that is equal to market price. Customers feel it is getting expensive at a
price range of 12-14 for a 100gm pack. So from this we can say Maggi is treated as value for money
brand.
!( " ! " # $
Leveragability:
Which of the following category of products will you buy if offered by your preferred
brand?
Rational: This question was asked to Iind in which category oI products the brand could be
leveraged.
Conclusion for Leveragibility:
From the survey it is found that more than 35% of consumers feel that Maggi can enter in to cookies,
Chips, health drinks & Juices. Only 3% of the consumers feel that Maggi brand cannot be leveraged
for other products. The over all leveragability of the brand Maggi is very high.
!) " ! " # $
Recommendations:
From the survey & Secondary Research it was Iound that Loyalty & Distribution network oI
Maggi is Iar ahead oI competition. But, Increasing competition Irom Knorr & Yuppie that
have good distribution network may hurt Maggi in Iuture. For Maggi in order to retain it`s
existing market share depends on how well it can engage consumers. Maggi`s consumer
engaging programs like 'Meri maggi 2 min mein khushiyan¨ will play a crucial role.
Analysis oI Poters Iive Iorces reveals that category has low entry & exit barriers and the
product has many substitutes so it`s better Ior maggi to leverage it`s brand strength in other
category oI products. The survey shows that Maggi can leveraged in the categories such as
Cookies & biscuits, chips, health drinks & Juices.
!* " ! " # $
Annexure
! " ! " # $
Praxis Business School
Brand Value Measurement
On
Maggi Noodles
Submitted to
Prof. S. Govindrajan
Product & Brand Management
Part 3: Brand Value Measurement
By
Anil Nandyala (B11005)
Richa Daruka (B11035)
Rohit Khattar (B11036)
Sonam Keshri (B11042)
# " ! " # $
Index
Page No.
Executive Summary 3
Brand Value Measurement 6
Brand Strength Score 15
Financial Analysis 16
Recommendation 17
Annexure 18
$ " ! " # $
Executive Summary:
Brand valuation is a measure of identifying and defining the economic strengths and
weaknesses of a brand.
Brand valuation as a concept came into limelight in 1980’s. The increasing recognition of the
value of intangible came with continues increase in gap between book value and stock market
valuation as well as sharp increase in the premium paid to the brand’s during mergers &
acquisitions.
A brand is valued considering using two measures, Brand Equity that uses consumer research
to measure the performance of brands and financial measure.
The method chosen for brand valuation is Interbrand’s Brand Valuation approach. The reason
for choosing this method is it considers both Brand Equity & Financial aspects, where as, the
above-mentioned approaches consider either Marketing aspects or Financial aspects. Both
these aspects have to consider finding the true value of a brand.
Interbrand’s Brand Valuation approach is driven by three factors
Brand Index: It is expressed on a scale of 0 to 100. It quantifies the strength of the brand
against generic product. From the survey we got Brand Index score of 78
Brand Strength Score: It is a competitive benchmarking tool that identifies the strength of a
brand. It is measured using Internal & External factors the brand. Based on the survey we got
Brand Strength score of 89.
Financial performance: It is measured by using Brand Index, Brand strength Score &
Revenues of a company.
The brand value of Maggi calculated as per Interbrand’s Brand valuation approach is Rs
13225 crores.
RECOMMENDATIONS:
Although the brand strength of Maggi is high, it scored low in terms of Differentiation
compared to competitors, So measures should be taken to improve differntiation
Until now Maggi enjoyed an early mover advantage over other brands, because lack of
rivalary. But now HUL’s Knorr & ITC’s yippie are giving strong competition using their
stong distribution & promotion strategies
Even tough the tag line of Maggi is “ Taste bi Health bi”, consumers are relating Maggi as
tasty product but not healthy product (as per laddering) , which may be threat to maggi
because consumers are becoming health consciousness. So Maggi should use new ways to
effectively communicate with consumers.
% " ! " # $
What is a brand ?
A brand is an Intangible Asset. It is the future generator of cash flows. Brand gives access to
customers and possibility of charging premium on its product. A brand build its physiological
relationship with its customer over the period. It is not set fixed, rather it keeps evolving over
a period of time. It helps company in changing their reputation
Ho did brand valuation originate?
In the late 1980’s roll of brand acquisition led to the exposure of the hidden value in highly
branded companies. This was how brand valuation originated. These brand acquisitions
include: Nestle acquiring Rowntree, Grand Metropolitan acquiring Pillsbury, United Biscuits
buying Keebler and then selling it, and acquisition of Nabisco’s European businesses. The
acquiring prices of all these branded company were higher than the value of the company’s
net tangible asset. This brings in a high level of ‘Goodwil’ due to the acquisition. This
goodwill were the funtion of varios factors such as brand, copyrights, patents, customer
loyalty, distribution contracts, staff knowledge, etc.
Brand Valuation: Brand valuation is a measure of identifying and defining the economic
strengths and weaknesses of a brand.
There are number of approaches for brand valuation, but most have fallen under these two
categories.
RESEARCH –BASED BRAND EQUITY EVALUATIONS:
There are many brand equity models that use consumer research to measure the performance
of brands. These methods don’t consider financial value of the brands; they measure behavior
and attitudes of the brand that have an impact on the financial performance of the brand. This
methods measure various perceptive measures such as awareness, knowledge, familiarity,
relevance, purchase considerations, preference, satisfaction and recommendation.
Even though a brand performs strongly according to these indicators but they still fail to
create financial and share holder’s value. Because these methods do not consider the role of
certain factors like R&D and design of the brand that have high degree of impact on the
brand’s performance.
FINANCIALLY DRIVEN APPROACHES:
Cost-based Approach: In this method the value of a brand is the aggregation of all costs
incurred or replacement costs required to bring back the brand to it’s current state. This
method of valuation fails because there is no direct correlation between financial investments
made & value added to the brand.
Comparable Approach: In this method the value of a brand is arrived on the basis of
comparing it with something comparable. But comparing of brands is difficult because
brands by definition are differentiated and not comparable. Further more, the value creation
of a brand in the same category can be different, even though other aspects of the underlying
business such as target group, advertising spend price promotion & distribution channel are
& " ! " # $
identical.
Premium price Approach: In this method the brand value is created as the net present value
of future prices that a branded product would command over an unbranded product.
However, the primary purpose of many brands is not necessarily to obtain a premium but
rather to secure the highest level of future demand. The value generation of a brand is
dependent volume generation rather than securing price premium. The method is flawed
because there are rarely generic equivalents of a brand.
Economic use Approach: Approaches that are driven exclusively by brand equity measures
or financial measure lose either financial or marketing component of the brand. For
measuring the true value of a brand both financial & marketing aspects have to be considered
to provide a complete and robust value of a brand. The economic use approach, which was
developed in 1988, combines brand equity and financial measures, and has become the most
widely recognized and accepted methodology for brand valuation. It has been used in more
than 3,500 brand valuations worldwide.
RATIONAL FOR CHOOSING INTERBRAND’S BRAND VALUATION METHOD:
Brand value can be measure by using two approaches, first being Research based and other
being Financial based approach. The problem with these approaches is they are either missing
Marketing aspects or Financial aspects. Both these aspects have to considered to find the true
value of a brand.
Interbrand’s valuation is an economic use approach that combines both brand equity &
financial measures.
' " ! " # $
Brand Value Measurement
Interbrand’s Brand Valuation approach is driven by three factors
Brand Index
Brand Strength Score
Financial performance
Brand Index:
The Brand Index is expressed on a scale of 0 to 100. It quantifies the strength of the brand
against generic product.
The following question is asked to find the brand index
Which type of noodles do you prefer to eat ?
Branded
Unbranded
Both
%&' ()*
+' ,*
-' +.*
/0"12$2
3140"12$2
/567
Analysis: From the data we found that 78% prefer only branded noodles and are assign
Brand Index of noodles as 78
( " ! " # $
Brand Strength Index:
BSI is a competitive benchmarking tool that identifies the strength of a brand. It is broadly
classified into two types.
INTERNAL FACTORS:
Internal factors are broadly classified in to four types. We are relying on the secondary data
for measuring these four factors, because consumers are not aware/concerned about the
internal factors of a brand & Internal factors are maintained in secrecy by a company.The
four factors are:
CLARITY: Its about what the brand stands for in terms of its values, positioning
proposition, audiences, customer insights & drivers. We assign Maggi a score of 10 in this
aspect because without these values articulated internally and shared in the organization it is
not possible for a brand to be the leader in the category consequentially over the years.
COMMITMENT: It is the extent to which the brand receives the support in terms of time,
influence & Investment. We assign Maggi a score of 10 in this aspect the reasons are stated
below.
Brand extension for other category of products that shows company’s interest in the
brand.
Brand Campaign’s such as “2 Min mein khushiyan movement” & other
advertisements shows company’s time & Investment in the brand.
PROTECTION: It is how secured brand in dimensions such as legal protection, propriety
ingredients, scale or geographical spread. We assign Maggi a score of 8 in this aspect. The
reasons are stated below
The category itself doesn’t have legal protection because the products across the
brand are easily replicable.
/0"12
860$1#67
916$01":
;"<6508
=>6$01":
;"<6508
) " ! " # $
When it comes to scale & geographical spread Maggi has early mover advantage and
a strong distribution channel and presence of over 4.1 million outlets.
RESPONSIVENESS: It is the ability of the brand to respond to market changes, challenges
& opportunities. The brand should have a sense of leadership internally & a desire and ability
to constantly evolve & renew itself.
We assign Maggi a score of 9 in this aspect. The reason are stated below
Introduced new products like Maggi Atta noodles, Veg multigrain noodles in response
to the competition.
EXTERNAL FACTORS:
It is mainly dependent on how consumers perceive the brand. The ratings for the external
factors are calculated based on our Phase 1 & 2 of the project and using additional
questionnaire.
AUTHENCITY: This component is about how soundly a brand is based on an internal
capability. Authenticity is calculated considering 3 factors
Heritage
Value set (Rated based on the value’s found by using Laddering Theory)
Customer’s Expectation
Did Maggi meet your expectations every time you had it?
More than meet my expectations
Meet my expectations
Did not meet my expectations
%' -*
,?' .@*
?' ?*
A50$ 67"1 B$$6 BC
$>D$<6"6E518
A$$6 BC $>D$<6"6E518
2E2 156 B$$6 BC $>D$<6"6E518
Analysis: From the data we found that 94% of the respondents are satisfied & rest are more
satisfied with the brand. Considering Maggi heritage of 25 years & values it has created to
the consumers we are assigning a score of 10
RELEVANCE: This component is about how well the brand satisfies the needs of the
consumer. The following questions were asked to find the brand relevance.
Which brand of noodles do you associate with the above chosen attributes? (Tick under
the name of the brand)
The first question was asked to find what attributes are important when buying noodles and
second to measure which brand is satisfying that needs/wants (for each customers) better than
the competitors.
For measuring the brand relevance of Maggi following questions were asked:
Which attributes are important for you in noodles: (tick the ones which are important
for you)
Which brand of noodles do you associate with the above chosen attributes? (Tick under
the name of the brand)
The first question was asked to find what attributes are important when buying noodles and
second to measure which brand is satisfying that needs/wants (for each customers) better than
the competitors
The result for Brand Relevance (as per questionnaire) is as follows:
* " ! " # $
!+ " ! " # $
BRAND RELEVANCE
ATTRIBUTES
FOODLE
S
KNOR
R
MAGG
I
TOP
RAMEN
WAI
WAI
YIPPE
E
FUN 0 1 1 0 1 2
TASTE 0 0 24 8 0 0
CONVINEANT 0 6 17 0 0 0
HEALTHY 10 0 0 8 0 0
VARIETY 0 1 16 0 0 1
QUALITY 2 1 20 2 0 0
PACKAGING 0 0 1 0 0 0
VALUE FOR
MONEY 0 0 14 1 5 1
NON STICKY 0 0 0 4 4 6
LONG NOODLES 0 1 1 1 0 4
SUB TOTAL 12 10 94 24 10 14
PERCENTILE 50 25 100 83.3 25 66.7
Analysis: We assign Maggi a score of 10 because it has got more relevance compared to its
peers.
DIFFERNCIATION: This component measures how distinct the brand is from the
competition. Differentiation is the one that helps the brand to charge premium.
For measuring the differentiation of Maggi following questions were asked
?
%?
@?
-?
)?
+??
+%?
;FFGH=I JKFLL AMNN9 OF! LMA=K PM9 PM9 Q9!!==
,-./0 -1213./41
!! " ! " # $
What comes to your mind when you think of the following brands?
This question is framed to find what prominent characteristic made the consumer to buy the
product
From the brands listed below which brand do you think have similar offerings? If any
This question is framed to find the uniqueness of the brand, i.e how many respondents feel
the brand is different from the competition.
The result for Brand Differentiation (as per questionnaire) is as follows:
Brand
Differentiation
Attributes FOODELS KNORR MAGGI
TOP
RAMEN WAI WAI YIPPEE
FUN 0 0 2 0 0 3
SPICY 0 0 1 1 3 1
SOUPY 0 15 0 0 0 1
ROUND 0 0 0 0 0 6
TASTY 0 3 6 11 3 2
LONG
NOODLES 0 0 0 0 0 1
SMOOTH 0 0 0 4 0 1
NON STICKY 0 0 0 0 0 1
FAST TO
COOK 0 0 6 0 0 0
CONVINEANT 0 0 2 0 4 0
VALUE FOR
MONEY 0 0 2 0 0 0
VARIETY 0 0 1 0 0 0
HEALTHY 15 0 3 0 0 0
TOTAL 15 18 23 16 10 16
UNIQUENESS 17 15 8 11 15 10
SUB TOTAL 32 33 31 27 15 10
PERCENTILE 83.33 100 66.67 50 33.33 16.67
!# " ! " # $
?
%?
@?
-?
)?
+??
+%?
;FFGH=I JKFLL AMNN9 OF! LMAMK PM9 PM9 Q9!!==
,5678 09::;5;7<96<9=7
Analysis: We assign Maggi a score of 7 because other brands such as Foodels & Knorr stood
ahead of Maggi.
CONSISTENCY: This measures the degree to which a brand is experienced without fail
across all touch points and formats.
The following question is was asked to find the consistency of the brand
Did you find any change in the quality of the Maggi noodles every time you had it?
,' .*
%.' .+*
Q$8
K5
!$ " ! " # $
If you have mentioned yes for the above question, please tick which ever is applicable?
Quality has Increased
Quality has decreased
Out of the 3 respondents who said there is a change in quality, All mentioned the quality has
increased
Analysis: We assign a score of 10 for this attribute because 91% said the quality is consistent
and rest said the quality has increased
PRESENCE: The degree to which a brand feels omnipresent and is talked about positively
by consumers, customers and opinion formers in both traditional and social media.
The following questions were asked to find the presence of the Maggi
Out of your last 5 purchases of noodles how many times did you buy each of the
following brands or out of last 5 times you had noodles?
The underlying assumption behind this is if a brand is purchased more often consumers have
positivity towards the brand (consumers have lot of choices in this category)
Do you recommend Maggi to others ?
Analysis: We assigned Maggi a score of 9 based on the responses to the above questions
.@*
-*
?*
+?*
%?*
,?*
@?*
&?*
-?*
(?*
)?*
.?*
+??*
L$<5BB$12 G5$8 156 L$<5BB$12
-;>=??;786<9=7 @A <B; >=7CD?;5C
!% " ! " # $
UNDERSTANDING: This component in depth understanding of the distinctive qualities and
characteristics of the brand and those of the company.
BAV & Laddering techniques gave us some in-depth understanding of how consumers
understand the distinctive qualities & characteristics of the brand.
From our survey it was found that 73% of the consumers recognize the tagline of the brand
that is “Health bhi Taste bhi”, but when we used Laddering we found that attribute Health is
not given much importance by the consumers.
To find the consumers understanding of the company following questions were asked.
Which company owns the brand Maggi?
List down the various products offered by Nestle ?
From the list of 24 people who identified Maggi company’s name as Nestle only 22 were able
to recall Nestle’s other products.
Analysis: Based on the above from Laddering & Questionnaire data analysis we assign a
score of 6 for this attribute.
BRAND STRENGTH SCORE TABLE:
@
%
%
%@' (&*
R3H
GM/3L
9OS
K=IOH=
!& " ! " # $
ATTRIBUTE SCORE
INTERNAL FACTORS SCORE
CLARITY 10
COMMITMENT 10
PROTECTION 8
RESPONSIVENESS 9
EXTERNAL FACTORS
AUTHENCITY 10
RELEVANCE 10
DIFFERENTIATION 7
CONSISTENCY 10
PRESENCE 9
UNDERSTANDING 6
TOTAL SCORE 89
Financial Analysis:
!' " ! " # $
The brand value of Maggi is Rs 13225 crores as per as our calculation. It is the market leader with a
brand strength score of 88.
RECOMMENDATIONS:
!( " ! " # $
Although the brand strength of Maggi is high, it scored low in terms of Differentiation
compared to competitors, So measures should be taken to improve differntiation
Until now Maggi enjoyed an early mover advantage over other brands, because lack of
rivalary. But now HUL’s Knorr & ITC’s yippie are giving strong competition using their
stong distribution & promotion strategies
Even tough the tag line of Maggi is “ Taste bi Health bi”, consumers are relating Maggi as
tasty product but not healthy product (as per laddering) , which may be threat to maggi
because consumers are becoming health consciousness. So Maggi should use new ways to
effectively communicate with consumers.
!) " ! " # $
Annexure
1. Which type of noodles do you prefer to eat ?
Branded
Unbranded
Both
2. Do you recommend Maggi to others ?
Yes
No
3. Which attributes are important for you in noodles: (tick the ones which are
important for you)
!* " ! " # $
4. Which brand of noodles do you associate with the above chosen attributes? (Tick
under the name of the brand )
5. What comes to your mind when you think of the following brands:
Yippee Noodles:
Top Ramen:
Wai Wai :
Maggi Noodles:
Horlicks Foodles:
Knorr soupy noodles:
#+ " ! " # $
6. From the brand listed below which brand do you think have similar offerings? If
any
7. Out of your last 5 purchase of noodles how many times did you buy each of the
following brands or out of last 5 times you had noodles?
Yippee Noodles:
Top Ramen:
Wai Wai:
Maggi Noodles:
Horlicks Foodles:
Knorr soupy noodles:
8. Did Maggi meet your expectations every time you had it?
More than meet my expectations
Meet my expectations
Did not meet my expectations
9. Did you find any change in the quality of the Maggi noodles every time you had
it?
Yes
No
10. If you have mentioned yes for the above question, please tick which ever is
applicable?
Quality has Increased
Quality has Decreased
doc_229038592.pdf
BRAND IMAGE MEASUREMENT OF MAGGI NOODLE
! " Þ a g e
Praxis Business School
Brand Image Measurement
On
Maggi Noodles
Submitted to
Prof. S. Govindrajan
Product & Brand Management
Part 1: Brand Image Measurement
By
Anil Nandyala (B11005)
Richa Daruka (B11035)
Rohit Khattar (B11036)
Sonam Keshri (B11042)
# " Þ a g e
Index
Page No.
Executive Summary 3
BrieI History oI the brand & its Evolution over time 5
Instruments oI Data Collection to measure :
Quantitative Research Model 7
Qualitative Research Model 12
Presentation oI Iindings and conclusions Ior:
Quantitative Research Model 13
Qualitative Research Model 22
$ " Þ a g e
Executive Summary:
Brand image is the measure oI customer`s view oI the brand. We have chosen Maggi noodles
as our brand to measure the brand image.
The methods used Ior measuring brand image are
Brand Asset Valuator
Laddering Method
Brand Asset Valuator:
Instrument Ior data collection Questionnaire
Sample Size 33
The Brand Asset Valuator, a proprietary tool developed by advertising agency Young & Rubicam,
measures Brand Image by applying Iour broad dimensions: DiIIerentiation, Relevance, Esteem, and
Knowledge. Brand Asset valuator tells where the brand stands now and how does the Iuture look
like.
The current strength oI the brand is measure by Brand Stature, which is sum oI knowledge and
esteem oI the brand and the potential oI the brand is measured by Brand Vitality, which is the sum oI
diIIerentiation and regard. Brand strength and vitality are plotted on a powergrid to measure the
brand image.
Based on the analysis oI the survey it is Iound that Maggi gains highest in Knowledge, Esteem and
Relevance and stood second in diIIerentiation. When plotted in power grid Maggi lies in quadrant 1,
which means strong brand. Clearly, Maggi stands as leader as oI BAV, but Maggi stood second in
diIIerentiation, which means Ior Maggi to continue as a leader in the Iuture it has to work on
diIIerentiation.
LADDERING METHOD:
Instrument Ior data collection Laddering
Sample Size 10
Laddering reIers to an in-depth, one-on-one interviewing technique used to develop an understanding
oI how consumers translate the attributes oI products into meaningIul associations with respect to
selI, Iollowing means-end theory.
Means-End theory states people choose a product because it contains attributes that are instrumental
to achieving the desired consequences and IulIilling values.
% " Þ a g e
The laddering interview reveals people attribute noodles to the Iollowing values: SelI Esteem, Sense
oI belonging, Accomplishment & Responsibility. Many oI the attributes lead to accomplishment and
selI esteem values. The main attributes that Maggi should concentrate on are: Instant preparation,
Convenience, health, taste & variety. Based on the quantitative survey it is Iound Maggi is leader at
all the attributes except health. ThereIore, the positioning oI Maggi noodles should be maintained by
keeping these end values.
& " Þ a g e
Brief History of the brand & its Evolution over time
Nestle in the year 1982 launched Maggie in the Indian market. The brand 'Maggi' which is
Iamous Ior the 2 minutes Noodles is today an umbrella brand in a category that it created Ior
itselI in the packaged Iood segment in India largely because oI its Iirst mover advantage. The
product was so popular, that Maggi did to noodles in India, what Xerox did to photocopiers
worldwide.
The tagline used in the 80's was 'Fast to Cook. Good to Eat¨. The communication style
changed in the 90's where the kids would come home hungry and ask Ior Maggi quickly.
Maggi`s Iirst brand extension was in the year 1988 when they launched Maggi instant soups
with which Nestle became a pioneer in the packaged soup market in India.
The new Maggi launched in 1997 was thinner and with a diIIerent taste, it proved to be a
disaster as the customers did not like the taste oI the new Maggi and because oI which they
spend crores oI rupees to relaunch the 'old maggi' with the old taste.
By 2001 Maggi again became the leader in the segment oI instant noodles and at this time
they had a product range which consisted oI Maggi 2 minute Noodles, Maggi Sauces and
Ketchup, Maggi Pickles and Maggi Soups.
In 2004, NIL roped in Preity Zinta (Zinta), a Iamous Indian actress to endorse Maggi noodles
in order to strengthen the brand's image.(Traditionally,Maggi did not opt Ior celebrities and
the ads usually Ieatured mothers and kids.) The Ad was only made to promote the small
packs oI Maggi.
In 2005 Nestle made a very smart move. Maggi repositioned it as health and taste Iood
products. It knew that although kids love noodles, the parents were bothered about the health
aspect oI Noodles which was made oI Maida. Hence Maggi launched Maggi Atta Noodles
with the baseline " taste bhi health bhi" .With the introduction oI Maggi Atta even the parents
were happy consuming it.The changing preIerences oI Indian consumers added to the success
oI Maggi`s vegetable Atta Noodles as they were increasingly accepting instant Iood products
as a part oI their diet.
Maggi 2 minute me Khushiyan is the latest campaign adopted by Nestle to strengthen their
brand.
Currently there are many products which are being marketed by Nestle under the brand
Maggi:
MAGGI’S BRAND EXTENSON
NOODLES
Maggi Vegetable Multigrain Noodles
Maggi 2 Minute Noodles
' " Þ a g e
Maggi Vegetable Atta Noodles
Maggi Cuppa Mania
PASTA
Maggi Pazzta
SAUCES
Maggi Sauces
Maggi Pichkoo
Maggi Magic Cubes
COOKING AIDS
Magi Bhuna Masala
Maggi Coconut Milk Powder
Maggi Pizza Mazza
Maggi Masala-ae-Magic
( " Þ a g e
Instruments of Data Collection to measure
Quantitative Research Model
Brand Asset Valuator Model
The Brand Asset Valuator, a proprietary tool developed by advertising agency Young &
Rubicam, measures Brand Image by applying Iour broad dimensions: DiIIerentiation,
Relevance, Esteem, and Knowledge.
The 4 dimensions:
Differentiation measures the degree to which a brand is seen as diIIerent Irom others. It is the
ability Ior a brand to be distinguished Irom its competitors.
Relevance is the brand`s appeal. II a brand is not relevant, or personally appropriate to
Consumers, it will not attract or retain them.
Esteem measures how well the brand is regarded and respected. It reIlects its popularity and
perceptions oI its quality. The more a person believes in someone or something and its ability
to deliver on the promise, the more respect it commands.
Knowledge is the result oI all the marketing and communications eIIorts and experiences
consumers have had with a brand. Some brands makes you Ieel like you know the brand as
you would a close Iriend. This is called knowledge.
Relevance + Differentiation = Brand Strength
Esteem + Knowledge = Brand Stature
Brand diIIerentiation and relevance combine to determine 'brand strength¨. These two pillars
point to the brand`s Iuture value, rather than just reIlecting its past. Esteem and knowledge
together create 'brand stature¨, which is a barometer oI its past perIormance.
Rationale:
A BAV can be used to:
Assess brand health
Assess strategy payoII
Assess brand meaning
Assess positioning
Benchmark the brand
Evaluate partnership opportunities
Guide brand architecture
Evaluate Iinancial growth
Allocate resource
) " Þ a g e
DATA COLLECTION
Research Instrument
Questionnaires
Sample Details:
Sample Size: 33
Age Bracket: 20-30
*+,-./0112/3,
1. What are the various brands oI noodles you are aware oI?
2. IdentiIy the various brand oI noodles:
4 " Þ a g e
3. IdentiIy the given taglines with their respective brands:
4. Out oI your last 5 purchase oI noodles how many times did you buy each oI the Iollowing
brands or out oI last 5 times you had noodles?
Yippee Noodles:
Top Ramen:
Wai Wai:
Maggi Noodles:
Horlicks Foodles:
Knorr soupy noodles:
5. Which brand delivers their brand`s promise most? (scaling 6 to 1, where 6 being the
highest and 1 being the lowest)
!5 " Þ a g e
6. What comes to your mind when you think oI the Iollowing brands:
Yippee Noodles:
Top Ramen:
Wai Wai :
Maggi Noodles:
Horlicks Foodles:
Knorr soupy noodles:
7. From the brand listed below which brand do you think have similar oIIerings? II any
8. Which attributes are important Ior you in noodles: (tick the ones which are important Ior
you)
!! " Þ a g e
9. Which brand oI noodles do you associate with the above chosen attributes? (Tick under
the name oI the brand )
10. Are you aware about the concept oI 'Meri maggi mein 2 min ki khushiyan¨ (Your
experience with the brand)?
Yes:
No:
11. Kindly indicate your degree oI agreement Ior the statements given below about 'Meri
maggi 2 min mein khushiyan¨.
!# " Þ a g e
Instruments of Data Collection to measure
Qualitative Research Model
Reynolds and Gutman’s “LADDERING METHOD”
Laddering reIers to an in-depth, one-on-one interviewing technique used to develop an
understanding oI how consumers translate the attributes oI products into meaningIul
associations with respect to selI, Iollowing means-end theory. Hence, to understand the in-
depth underlying motivators a laddering technique should be used.
Laddering originated in consumer research and relies heavily on Means-End Theory which
states that people choose a product because it contains attributes (the means) that are
instrumental to achieving the desired consequences and IulIilling values (the ends) The
common generic means-end chain, thereIore, consists oI attributes (A), consequences (C) and
values (V).
Attributes -> Consequences -> Values
Rationale: The objective is to provide a detailed description and analysis about the internal
value that a consumer associates with the product.
DATA COLLECTION
Research Instrument
Laddering / Depth Interview
Sample Details:
Sample Size: 10
Age Bracket: 21 28
Composition: Men ÷ 40°, Women ÷ 60°
!$ " Þ a g e
Presentation of findings and conclusions for the
Quantitative Research Model:
BRAND ASSET VALUATOR
BRAND KNOWLEDGE:
Knowledge means being aware about the brand and understanding what the brand or service
stands Ior. Brands like Knor soupy noodles, sunIeast yippee,wai-wai,horlicks Ioodles & top
raman are taken as competitors to measure the brand awareness oI magi noodles.
The questions asked to measure brand awareness are:
'What are the various brands oI noodles you are aware oI?¨
'IdentiIy the various brand oI noodles: '
ºIdentiIy the given taglines with their respective brands:¨
!% " Þ a g e
This question measures the top oI the mind recall oI all the brands oI the noodles.
The second question checks iI they are aware about the diIIerent brand oI noodles by
showing them the packs oI diIIerent brands
The third question asks the respondent to identiIy the taglines oI diIIerent brands. Tagline
communicates what the product is meant Ior so iI they identiIy the brand by the tagline that
means they have knowledge about the brand and what it is meant Ior.
The result oI Brand knowledge (as per the questionnaire) is as Iollows:
88Anu knCWLLuCL
A118l8u1LS lCCuLLS knC88 MACCl 1CÞ 8AMLn WAl WAl ?lÞÞLL
AWA8LnLSS 9 10 32 27 10 18
ÞlC1u8LS 10 21 21 22 16 17
1AC LlnLS 13 27 24 11 11 13
Su8 1C1AL 32 38 77 60 37 30
ÞL8CLn1lLL 16.67 66.67 100 83.33 33.33 30
0
20
40
60
80
100
120
6789: ;9<=>?
?From the data we can clearly say that Maggi noodles has highest brand awareness vis-a-vis
the competitors in all the criteria chosen i.e. top oI the mind recall, brand identiIication by
packaging and tag lines.
BRAND ESTEEM
Brand esteem is a measure to check how consumers regard the brand i.e. brand personality. In
other words it measures whether a brand has positive or negative brand personality.
The questions taken to measure the brand personality are:
lCCuLLS knC88 MACCl 1CÞ 8AMLn WAl WAl ?lÞÞLL
!& " Þ a g e
Out oI your last 5 purchase oI noodles how many times did you buy each oI the Iollowing
brands or out oI last 5 times you had noodles?
Which brand delivers their brand`s promise most? (Rating scale 1 to 6,1 being the lowest & 6
being the highest)
Brand
Yippee Noodles
Top Ramen
Wai Wai
Maggi Noodles
Horlicks Foodles
Knorr Soupy Noodles
The last Iive purchase oI a product shows the association oI a customer with the product and
iI the customer thinks that the brand delivers its promise it means the customer regards the
brand.
The result Ior the Brand Esteem (as per the questionnaire) is as Iollows:
88Anu
LS1LLM
CuLS1lCnS lCCuLLS knC88 MACCl
1CÞ
8AMLn
WAl
WAl ?lÞÞLL
88Anu Þ8CMlSL 88 118 182 127 112 103
LAS1 3 CCnSuMÞ1lCn Cl
nCCuLLS 3 9 103 13 24 11
Su8 1C1AL 91 127 287 140 136 116
ÞL8CLn1lLL 16.67 30 100 83.34 66.67 33.33
!' " Þ a g e
lrom Lhe above daLa we see LhaL Maggl has scored Lhe hlghesL ln Lerms of esLeem whlch
means Lhe consumers regards Lhe brand and are hlghly assoclaLed wlLh lL.
BRAND DIFFERENTIATION:
DiIIerentiation is how distinct the brand is Irom the competition. DiIIerentiation is the one
that helps the brand to charge premium.
For measuring the diIIerentiation oI Maggi Iollowing questions were asked
What comes to your mind when you think oI the Iollowing brands?
This question is Iramed to Iind what prominent characteristic made the consumer to buy the
product
From the brands listed below which brand do you think have similar oIIerings? II any
This question is Iramed to Iind the uniqueness oI the brand, i.e how many respondents Ieel
the brand is diIIerent Irom the competition.
The result Ior Brand DiIIerentiation (as per questionnaire) is as Iollows:
8rand
ulfferenLlaLlon
ALLrlbuLes lCCuLLS knC88 MACCl
1CÞ
8AMLn WAl WAl ?lÞÞLL
0
20
40
60
80
100
120
lCCuLLS knC88 MACCl 1CÞ 8AMLn WAl WAl ?lÞÞLL
6789: ?AB??C
!( " Þ a g e
lun 0 0 2 0 0 3
SÞlC? 0 0 1 1 3 1
SCuÞ? 0 13 0 0 0 1
8Cunu 0 0 0 0 0 6
1AS1? 0 3 6 11 3 2
LCnC nCCuLLS 0 0 0 0 0 1
SMCC1P 0 0 0 4 0 1
nCn S1lCk? 0 0 0 0 0 1
lAS1 1C CCCk 0 0 6 0 0 0
CCnvlnLAn1 0 0 2 0 4 0
vALuL lC8
MCnL? 0 0 2 0 0 0
vA8lL1? 0 0 1 0 0 0
PLAL1P? 13 0 3 0 0 0
1C1AL 13 18 23 16 10 16
unlCuLnLSS 17 13 8 11 13 10
Su8 1C1AL 32 33 31 27 13 10
ÞL8CLn1lLL 83.33 100 66.67 30 33.33 16.67
From the survey it is Iound that Knorr has the highest diIIerentiation Iollowed by Foodels and
Maggi. One reason why Knorr & Foodels has highest diIIerentiation over Maggi is Knorr &
Foodels diIIerentiated by products as soupy & healthy, where as Maggi diIIerentiated as 2
min noodle`s I.e. purely psychographic.
0
20
40
60
80
100
120
lCCuLLS knC88 MACCl 1CÞ 8AMAn WAl WAl ?lÞÞLL
6321D :/EE,3,1./2./01
!) " Þ a g e
BRAND RELEVENCE :
Relevance is how well the brand satisIies the need oI the customer.
For measuring the brand relevance oI Maggi Iollowing questions were asked:
Which attributes are important Ior you in noodles: (tick the ones which are important Ior you)
Which brand oI noodles do you associate with the above chosen attributes? (Tick under the
name oI the brand)
The Iirst question was asked to Iind what attributes are important when buying noodles and
second to measure which brand is satisIying that needs/wants (Ior each customers) better than
the competitors
The result Ior Brand Relevance (as per questionnaire) is as Iollows:
88Anu 8LLLvAnCL
8BB7F6GB?A lCCuLLS knC88 MACCl 1CÞ 8AMLn WAl WAl ?lÞÞLL
lun 0 1 1 0 1 2
1AS1L 0 0 24 8 0 0
CCnvlnLAn1 0 6 17 0 0 0
PLAL1P? 10 0 0 8 0 0
vA8lL1? 0 1 16 0 0 1
CuALl1? 2 1 20 2 0 0
ÞACkAClnC 0 0 1 0 0 0
vALuL lC8 MCnL? 0 0 14 1 3 1
nCn S1lCk? 0 0 0 4 4 6
LCnC nCCuLLS 0 1 1 1 0 4
Su8 1C1AL 12 10 94 24 10 14
ÞL8CLn1lLL 30 23 100 83.3 23 66.7
0
20
40
60
80
100
120
lCCuLLS knC88 MACCl 1CÞ 8AMLn WAl WAl ?lÞÞLL
6789: 7?>?H89I?
!4 " Þ a g e
From the survey we Iound that Maggi is more relevant in satisIying the needs/ wants oI the
customers. Some oI the reasons Maggi is more relevant than competitors are variety,
presence & aIIordability.
We have asked two questions related to the campaign 'Meri Maggi-2 minute me khusiyan¨ in
our questionnaire to check the brand esteem & knowledge oI the product.
'Meri Maggi-2 minute me khusiyan¨ is the latest ad campaign oI the noodles brand which
aims to Iind out the emotional attachment oI people with the brand as an old brand like
Maggi does not only oIIer product but also some emotional attributes with it.
The Iollowing are the questions asked:
Are you aware about the concept oI 'Meri maggi mein 2 min ki khushiyan¨ (Your experience
with the brand)?
Kindly indicate your degree oI agreement Ior the statements given below about 'Meri maggi
2 min mein khushiyan¨.
Statements Brand
It is innovative and something new
It increased emotional connection with
the brand
It increased your interest in the brand
It is a source oI Iun & enjoyment
It motivated you to buy the brand more
Irequently
It gave you a sense oI recognition as a
customer oI the brand
The result oI the question asked is as Iollows:
28
3
0
3
10
13
20
23
30
8J23,1,-- 2K0+. .L, M2NO2/P1
Aware unaware
#5 " Þ a g e
From the survey we Iound that most oI the respondent knows about the campaign and they
think it`s innovative & something new. The campaign can allow the consumers to own the
brand and talk about their unique experience relating to the brand which in turn will help
increasing the brand esteem and knowledge
The Iollowing table shows the brand stature and brand strength Ior each brand:
Brand Brand Strength Brand Stature
Horlicks Foodles 66.67 16.67
Knorr 62.5 58.34
Maggi 83.34 100
Top Ramen 66.67 83.33
Wai-Wai 29.17 50
Yippie 41.68 41.67
(Brand strength is calculated as the average oI relevance and diIIerentiation and Brand
strength is calculated as the average oI knowledge and esteem)
The above data is plotted in the power grid below:
0
0.3
1
1.3
2
2.3
3
3.3
4
4.3
lnnovaLlve and
someLhlng new
LmoLlonal
connecLlon wlLh
Lhe brand
lL lncreased your
lnLeresL ln Lhe
brand
lL ls a source of
fun and
en[oymenL
lL moLlvaLed you
Lo buy Lhe brand
more frequenLly
72./1P 0E .L, -.2.,N,1. 3,Q2.,D .0 .L,
M2NO2/P1
Conclusion:
We can clearly see that Maggi has the highest Brand Stature and Brand Strength which
means it is the leader Iollowed by Top Ramen and Knorr Soupy noodles which are again high
on Brand Stature and Brand Strength that means they are doing well now and will be able to
perIorm well in Iuture. Horlicks Foodles is high on brand strength but low on stature which
means it is an emerging and niche brand. SunIeast Yippee and Wai-Wai are both low on
stature and strength.
The main beneIit Maggi is enjoying over the rest is early mover advantage. But, now the
competition Irom HUl`s Knorr, SunIeast yuppie and Horlicks Foodels, which are
diIIerentiating highly on product characteristics such as soupy, non sticky and healthy made
Maggi lose race in diIIerentiation. So Ior Maggi to keep leadership position is highly
dependent on its diIIerentiation.
#! " Þ a g e
## " Þ a g e
Presentation oI Iindings and conclusions Ior the
Qualitative Research Model:
Plerarchlcal value Maps of Magglnoodles
`
varleLles PealLhy no Cll 1asLe Affordable Slze
ConvenlenL lnsLanL
noL geL
bored
Cood for body
and healLh
R+1S
Ln[oymenL
SaLlsfy
LasLe bud
C00D 3,N2/1- P00DS
SLress busLer
ConcenLraLe on day
Loday acLlvlLles
Save money
Lasy Lo Carry
ShorLage of
Llme
SLudylng
laLe nlghL /
uo offlce
work
Savlng Llme
from PecLlc Llfe
use Llme for oLher acLlvlLles
8MM0NOQ/-LN,1.S
CeL mosL from llfe
7,-O01-/K/Q/.TS
LffecLlve
uLlllsaLlon of
resources
uo Soclal AcLlvlLy
A,QE ?-.,,NS
Self lmage
Self recognlLlon
Self SaLlsfacLlon
A,1-, 0E
K,Q01P/1P
Makes Llfe
Lasy
MeeLlng
Coals /
Cb[ecLlve
no wasLage
#$ " Þ a g e
8BB7F6GB?A I<9A?*G?9I?A H8>G?A
lnsLanL
ConvenlenL
(Lasy Lo cook)
no Cll
PealLhy
1asLe
varleLy
Slze
Savlng Llme from
hecLlc llfe
uo soclal acLlvlLy
Self saLlsfacLlon
ShorLage of Llme
SLudylng laLe nlghL
uo offlce work
MeeLlng goals/
ob[ecLlve
use Llme for oLher
acLlvlLles
ConcenLraLe on day Lo
day acLlvlLles
Cood for body and
healLh
Mood remalns good
SLress busLer
lun / Ln[oymenL
SaLlsfy LasLe bud
noL geL bored
Lasy Lo carry
Save money
Makes llfe easy
no wasLage
Self LsLeem
Sense of
belonglng
AccompllshmenL
8esponslblllLy
1he ladderlng lnLervlew reveals people aLLrlbuLe noodles Lo Lhe followlng values: Self LsLeem, Sense
of belonglng, AccompllshmenL & 8esponslblllLy. Many of Lhe aLLrlbuLes leads Lo AccompllshmenL
and Self LsLeem. 1he maln aLLrlbuLes LhaL should be concenLraLed are lnsLanL, Convenlence (Lasy Lo
cook), PealLh, 1asLe & value. lrom Lhe CuanLlLaLlve survey lL ls found LhaL Maggl ls leader ln all
Lhese aLLrlbuLes excepL PealLh, even Lhough lL's 1agllne ls ºPealLh bhl 1asLe bhl".
1herefore, Maggl should poslLlon lLs noodles based on Lhese end values. 1he currenL
adverLlsemenLs are malnly poslLlonlng Maggl as 2 mln noodles, whlch are saLlsfylng many of Lhe
maln aLLrlbuLes requlred for creaLlng Lhe end values. Maggl should promoLe lLs Lag llne more
aggresslvely for saLlsfylng more end values of Lhe users.
! " ! " # $
Praxis Business School
Brand Equity
On
Maggi Noodles
Submitted to
Prof. S. Govindrajan
Product & Brand Management
Part 1: Brand Image Measurement
By
Anil Nandyala (B11005)
Richa Daruka (B11035)
Rohit Khattar (B11036)
Sonam Keshri (B11042)
# " ! " # $
Index
Page No.
Executive Summary 3
Brand Equity 5
Analysis Measure oI Brand Equity
Loyalty 10
Price Premium
Leveragibility 15
Recommendation 17
Annexure 18
$ " ! " # $
Executive Summary:
Brand equity as a concept has emerged and gained popularity in 1980`s. Until than brand was
one oI the neglected aspect oI total marketing. Lot oI the development oI in the Iield oI brand
management owes to brand equity concept.
Brand Equity is the ability oI the brand to manage the changed market conditions. It is
dependent on two Iactors Existing & Changed conditions.
Existing conditions can be Iound using BAV (Brand Asset Valuator), which we have done in
Phase-1 oI the project.
Changed market conditions can be broadly classiIied in to two categories, Iirst being
competition and second being LiIe cycle oI the category & Leveragability oI the brand.
Competition is subdivided in to Iour parts
Loyalty with respect to the competition
Price premia gives whether the brand has Ilexibility with price
Distribution strengths oI all brands
Based on the survey, with sample size oI 37 & secondary research Iollowing conclusions are
drawn.
Conclusions Derived from Analysis:
Loyalty: The preIerence oI Maggi is very high compared to competitors and recommendation by
consumers is as high as 94°, which shows the brand has high loyalty. But, Irom the analysis we
Iound that gravity oI the brand is low as compared to Iocus that indicates Maggi is not able to hold all
its customers the reason could be sales promotion strategy, urge to try new brands and retail`s push is
high in this category.
Price Premia: As per the Van Westendor model the price of a product should fall between the range
of bargain and getting expensive. As per our survey maggi customers feel value for money when the
product price is under price range of 9-11 Rs that is equal to market price. Customers feel it is getting
expensive at a price range of 12-14 for a 100gm pack. So from this we can say Maggi is treated as
value for money brand.
Leveragability: From the survey it is found that more than 35% of consumers feel that Maggi can
enter in to cookies, Chips, health drinks & Juices. Only 3% of the consumers feel that Maggi brand
cannot be leveraged for other products. The over all leveragability of the brand Maggi is very high.
% " ! " # $
Recommendations:
From the survey & Secondary Research it was Iound that Loyalty & Distribution network oI
Maggi is Iar ahead oI competition. But, Increasing competition Irom Knorr & Yuppie that
have good distribution network may hurt Maggi in Iuture. For Maggi in order to retain it`s
existing market share depends on how well it can engage consumers. Maggi`s consumer
engaging programs like 'Meri maggi 2 min mein khushiyan¨ will play a crucial role.
Analysis oI Poters Iive Iorces reveals that category has low entry & exit barriers and the
product has many substitutes so it`s better Ior maggi to leverage it`s brand strength in other
category oI products. The survey shows that Maggi can leveraged in the categories such as
Cookies & biscuits, chips, health drinks & Juices.
& " ! " # $
BRAND EQUITY:
History: Brand equity as a concept has emerged and gained popularity in 1980`s. Until than
brand was one oI the neglected aspect oI total marketing. Lot oI the development oI in the
Iield oI brand management owes to brand equity concept.
According to Davis A.Aaker, brand equity is a set oI assest(and liabilities) linked to a brand`s
name and symbol, that adds to (or subtracts Irom), the value provided by a product or service
to a Iirm.
Brand equity is the added value endowed on products and services. It may be reIlected in the
way consumers think, Ieel, and act with respect to the brand, as well as in the prices, market
share, and proIitability the brand commands Ior the Iirm.
Brand Equity is the ability oI the brand to manage the changed market conditions. It is
dependent on two Iactors Existing & Changed market conditions.
Brand Equity is the ability oI the brand to manage the changed market conditions. For a
brand to with stand the changed conditions is dependent on the brand`s existing conditions
that can Iound by using BAV (Brand Asset Valuator) and changed market conditions that is
dependent on the competition and product liIe cycle.
%&'()'*+
,-*.')'-*(
/01*. 1((%)
21341)-0
/01*. %54')6
,71*+%.
,-*.')'-*(
3-613)6
,-8!%)')'-* !0%8'48
.'()0'/4)'-*
!0-.4,) 3'9%
,6,3%
3%2%01+'/'3')6
' " ! " # $
The ability oI a brand to with stand the competition is broadly classiIied in to Iour Iactors
LOYALTY: The extent oI the IaithIulness oI consumers to a particular brand, expressed
through their repeat purchases, irrespective oI the marketing pressure generated by the
competing brands.
METHODS TO FIND BRAND LOYALTY:
COLOMBO MORRISON MODEL:
Colombo and Morrison distinguished buyers in to two groups. Hard-core loyals, who buy the
same brand with absolute certainty at every single purchase occasion. Potential switchers,
who choose at every purchase occasionally one oI the brands according to a certain
probability distribution.
ThereIore, the two important parameters oI the model reIlect a brand`s reliance on highly
loyal customers and its success in attracting brand switchers. The Iirst groups are those who
have a positive attitude toward the brand (preIer it) and who buy it. The second groups are
those who buy it on a given purchase but who may preIer another brand.
An assumption oI the model is that every consumer has a preIerred brand. II these consumers
have a preIerence, why are they 'switching?¨ Although all consumers have a preIerred
brand, some preIerences are stronger than others. Weak preIerences characterize potential
switchers. Potential switchers may be variety seekers; or, they may be responding to sales
promotions or other situational Iactors. By considering the relative preIerences and
purchases, the model computes an ability oI each brand to attract consumers Irom each other
brand.
Share Tier Model:
This model takes into account two parameters Price & Quality. This model takes in to
account two parameters Price & Quality. It tests the belieI and checks whether the belieIs are
getting translated into Behaviour, i.e. actual purchase. It also helps to Iind out the price level
oI price sensitivity that a particular brand has. This model also helps in gauging the resilience
and leveragability oI the brand.
Rational for choosing Colombo Morrison Model:
The category noodles we have chosen Ialls under low level oI involvement that means
people`s chance oI trying other brand is high. Analyzing Colombo Morrison Model gives the
reasons why people choose other brand over preIerred brand. This model helps to Iind out the
problems existing in the brand.
( " ! " # $
PRICE PREMIA: It is the ability oI the brand to charge the premium
METHODS TO FIND PRICE PREMIUM:
Brand Price Trade off Method:
BPTO is one oI the simplest to Iind relative value oI the brand compared to competitors. In
this method diIIerent brands are shown to customers and they are asked to choose their
preIerred brand at the same comparable price level. Then prices oI the products are revised
and then the customers are asked to choose Irom the adjusted price level.
The ranking oI the preIerred can be inIerred in relation to the prices customers can pay or
willing to pay.
Van Westerndrops Price Sensitivity Meter::
The method was developed in the 1970s by Dutch economist Peter H. Van Westendorp. The
Price Sensitivity Meter (PSM) is a market technique Ior determining consumer price
preIerences.
The traditional PSM approach asks Iour price-related questions, which are then evaluated as a
series oI Iour cumulative distributions.
At what price would you consider the product to be so expensive that you would not
consider buying it? (Too expensive)
At what price would you consider the product to be priced so low that you would Ieel the
quality couldn`t be very good? (Too cheap)
At what price would you consider the product starting to get expensive, so that it is not out
oI the question, but you would have to give some thought to buying it? (Expensive/High
Side)
At what price would you consider the product to be a bargaina great buy Ior the money?
(Cheap/Good Value)
A graph is plotted by taking price on X-axis & number oI respondents on y-axis.The Optimal
Price Point (OPP) is the place on the graph that too inexpensive line crosses too expensive
line. The Optimal Price Range/Band is the area in the graph between the PMC (Point oI
Marginal cheapness) and PME (Point oI Marginal Expensive). PMC is where too
inexpensive crosses expensive. Whereas the PME is where inexpensive crosses too
expensive. The PMC is the threshold where the product becomes cheap and the PME is the
threshold where the product becomes expensive.
Changes Made to Van westendorps price sensitivity Meter: As per the method the
questionnaire should be open ended. Open ended questions in this method works well when
the level oI involvement Ior the product is high. Since, the category we have chosen Iall
under low level oI involvement, Closed end questionnaire gives better results.
) " ! " # $
Rational for choosing Van westendorps price sensitivity Meter:
This method gives clear about how consumers perception about a product changes with the
change in price oI the product.
Rational for not choosing Brand Price Trade-off Method:
This method gives relative value oI a brand compared to its competitors. Since, Maggi has a
market share oI around 90° and the rest oI the brands sharing 10° market share, adopting
this method makes results skewed towards Maggi. In order get better results using this
method we have take more sample size Ior competitors.
DISTRIBUTION: The main advantage oI Maggi over other brands is early mover advantage
& distribution network. Only Iew noodles brands like Maggi, Yuppie & Knorr has good
distribution network. But Yuppie & Knorr are still in the early growth stage. Wai-Wai is
present only in Eastern region & Top Ramen has entered tie-up with Marico to tap other
markets. Clearly Maggi has the advantage over other brands in terms oI availability.
PRODUCT LIFE CYCLE: Product liIe cycle is a tool that provides a way to trace the
stages oI product`s acceptance Irom introduction to decline. The market share oI Maggi
noodles is around 90°. The present market size oI instant noodles is Rs 1300 crore and is
expected to grow around Rs 3000 3500 crore by 2015. But, increased competition Irom
SunIeast Yuppie, HUL`s Knorr & other brands make hard Ior Maggi to increase its market
share.
* " ! " # $
LEVERAGIBILITY: It is the power oI the existing brand name to support a company`s
entry in to a new product category. The new category can gain the strength oI existing
Brand because consumers relate pre-existing knowledge oI a brand`s level oI quality with
new category oI products.
!+ " ! " # $
Analysis Measure of Brand Equity
Questionnaire for Loyalty:
Which among the Iollowing brands do you preIer most?
Which brand oI noodles did you purchase/have last time?
Rational: As per the Colombo Morrision model we aim to Iind out the Iocus percentage
which tells the purchase made by customer who preIer the brand by the total number oI
customers who purchase the brand and the gravity percentage i.e. the customers who preIer
the brand by the total number oI people who buy the brand.
Last Brand Purchased
Yippee
Horlicks
Foodles
Maggi
Wai
Wai
Top
Ramen
Knorr
Soupy
Noodles
Total
P
r
e
f
e
r
r
e
d
B
r
a
n
d
Yippee X X**
Horlicks Foodles X
Maggi X
Wai Wai
X
Top Ramen X* X
Knorr Soupy
Noodles
X
Total
Where,
X ÷ No. oI customer loyal to their brand
X*÷ Customers who preIer Top Ramen but their last purchase made was Yippee i.e they
switch
X** ÷ Customers who preIer Yippee but their last purchase made was Yippee
!! " ! " # $
Last Brand Purchased
Yippee
Horlicks
Foodles
Maggi
Wai
Wai
Top
Ramen
Knorr
Soupy
Noodles
Total
P
r
e
f
e
r
r
e
d
B
r
a
n
d
Yippee 2 0 1 0 0 0 3
Horlicks Foodles 0 0 0 0 0 0 0
Maggi 3 0 29 0 0 1 33
Wai Wai 0 0 0 0 0 0 0
Top Ramen 0 0 1 0 0 0 1
Knorr Soupy
Noodles
0 0 0 0 0 0 0
Total 5 0 31 0 0 1 74
In the above table column Total shows the share oI preIerence oI each brand. Over here
Maggi`s share oI preIerence is 44.59° (33/74). Row Total tells us the market share Ior each
brand. According to the response taken Irom 37 respondents, the market share Ior Yippee is
6.75°, Ior Maggi is 41.89°, Ior Knorr soupy noodles its 1.35° and Ior rest all other brand
its 0.
From above matrix we derive the Gravity and Focus Ratio Matrix
Gravity Focus
Yippee 67° 40°
Horlicks Foodles 0° 0°
Maggi 88° 94°
Wai Wai 0° 0°
Top Ramen 0° 0°
Knorr Soupy
Noodles
0° 0°
Industry 42° 42°
Industry minus
Maggi
6.5° 6.1°
,:;<=>$
?=@"? <=
A;
BA"CD
!# " ! " # $
From the above Gravity and Focus matrix we can see that the
Industry Average oI both Gravity and Focus Ratio is 42° which is calculated as
|(2¹0¹29¹0¹0¹0)/74| i.e. the loyalty consumers oI all the brand by total consumers (both
preIerred and purchased).
II we look upon Maggi`s Gravity Ratio: 88° and Focus Ratio: 94°. Though both the gravity
and Iocus ratio is greater than the industry average, but Maggi is not able to convert its
preIerred to purchase because its gravity ratio is greater than its Iocus ratio.
Whereas, Yippee noodles are able to convert its preIerred customers to purchase customers,
since its Iocus ratio is less than its gravity.
Here, Iocus ratio(94°) oI Maggi is more than IiIteen times to that oI Industry minus maggi`
Iocus ratio(6.1°). It means that that loyalty oI maggi is increasing. ThereIore the brand is
robust to genearte Iuture cash Ilow.
If you get similar noodles (as your preferred brand) at a cheaper price, will you switch
to that brand?
Rational: This question is actually to check iI in the changing situation a new brand comes in
with a price less than maggi will the customers switch to the brand or not. This tells us the
threat oI competitors price per se and so that we can be prepared Ior any such changes.
EFG
HIG
JG
KJG
IJG
LJG
HJG
EJG
MJG
NJG
3=@"? (OP<QR$A;
,-./-0123- 45 64726 208 9:;1/<-.9 45 =233;
!$ " ! " # $
If your preferred brand is not available, what will you do?
Rational: The question was asked to check the degree oI loyalty, as people who will buy
only maggi even iI it is not available in a shop indicates he is very loyal to the brand.
KIG
LLG
EEG
JG
KJG
IJG
LJG
HJG
EJG
MJG
' OP?? C=< B
/ "C=<R$A BA"CD / SA=> =<R$A ;R=TU$$T$A>.208 ?472617
Do you recommend your preferred brand to others?
Rational: The question again measures the degree oI loyalty oI a customer as a highly loyal
customer oI a brand becomes a brand.
VHG
MG
JG
KJG
IJG
LJG
HJG
EJG
MJG
NJG
FJG
VJG
KJJG
0$Q=>>$CD .=$; C=< 0$Q=>>$CD
@-/4AA-0821;40 B7 1<- /409CA-.9
!% " ! " # $
Conclusion for Loyalty:
The preIerence oI Maggi is very high compared to competitors and recommendation by consumers is
as high as 94°, which shows the brand has high loyalty. But, Irom the analysis we Iound that gravity
oI the brand is low as compared to Iocus that indicates Maggi is not able to hold all its customers the
reason could be sales promotion strategy, urge to try new brands and retail`s push is high in this
category.
!& " ! " # $
Price Premia :
Question: At what price range would you consider your preIerred brand to be so expensive
that you will not consider buying it?
Rational: This question was asked to Iind at what price range consumers think the price oI
the product is too expensive and would not aIIord to buy.
Question: At what price range would you consider your preIerred brand to be so low that you
will Ieel the quality will not be good?
Rational: This question was asked to Iind at what price range consumers think the price oI
the product is too cheap and quality is deteriorated.
Question: At what price range would you consider your preIerred brand starting to get
expensive, so that it is not out oI the question, but you have to give some thought to buy it?
Rational: This question was asked to Iind at what price range consumers think the price oI
the product is getting expensive, but give some thought to consider it
Question: At what price range would you consider your preIerred brand to be a bargain, a
great buy Ior money?
Rational: This question was asked to Iind at what price range consumers think the price oI
the product is value Ior money.
!' " ! " # $
Conclusion for Price Primia:
As per the Van Westendor model the price of a product should fall between the range of bargain and
getting expensive. As per our survey maggi customers feel value for money when the product price is
under price range of 9-11 Rs that is equal to market price. Customers feel it is getting expensive at a
price range of 12-14 for a 100gm pack. So from this we can say Maggi is treated as value for money
brand.
!( " ! " # $
Leveragability:
Which of the following category of products will you buy if offered by your preferred
brand?
Rational: This question was asked to Iind in which category oI products the brand could be
leveraged.
Conclusion for Leveragibility:
From the survey it is found that more than 35% of consumers feel that Maggi can enter in to cookies,
Chips, health drinks & Juices. Only 3% of the consumers feel that Maggi brand cannot be leveraged
for other products. The over all leveragability of the brand Maggi is very high.
!) " ! " # $
Recommendations:
From the survey & Secondary Research it was Iound that Loyalty & Distribution network oI
Maggi is Iar ahead oI competition. But, Increasing competition Irom Knorr & Yuppie that
have good distribution network may hurt Maggi in Iuture. For Maggi in order to retain it`s
existing market share depends on how well it can engage consumers. Maggi`s consumer
engaging programs like 'Meri maggi 2 min mein khushiyan¨ will play a crucial role.
Analysis oI Poters Iive Iorces reveals that category has low entry & exit barriers and the
product has many substitutes so it`s better Ior maggi to leverage it`s brand strength in other
category oI products. The survey shows that Maggi can leveraged in the categories such as
Cookies & biscuits, chips, health drinks & Juices.
!* " ! " # $
Annexure
! " ! " # $
Praxis Business School
Brand Value Measurement
On
Maggi Noodles
Submitted to
Prof. S. Govindrajan
Product & Brand Management
Part 3: Brand Value Measurement
By
Anil Nandyala (B11005)
Richa Daruka (B11035)
Rohit Khattar (B11036)
Sonam Keshri (B11042)
# " ! " # $
Index
Page No.
Executive Summary 3
Brand Value Measurement 6
Brand Strength Score 15
Financial Analysis 16
Recommendation 17
Annexure 18
$ " ! " # $
Executive Summary:
Brand valuation is a measure of identifying and defining the economic strengths and
weaknesses of a brand.
Brand valuation as a concept came into limelight in 1980’s. The increasing recognition of the
value of intangible came with continues increase in gap between book value and stock market
valuation as well as sharp increase in the premium paid to the brand’s during mergers &
acquisitions.
A brand is valued considering using two measures, Brand Equity that uses consumer research
to measure the performance of brands and financial measure.
The method chosen for brand valuation is Interbrand’s Brand Valuation approach. The reason
for choosing this method is it considers both Brand Equity & Financial aspects, where as, the
above-mentioned approaches consider either Marketing aspects or Financial aspects. Both
these aspects have to consider finding the true value of a brand.
Interbrand’s Brand Valuation approach is driven by three factors
Brand Index: It is expressed on a scale of 0 to 100. It quantifies the strength of the brand
against generic product. From the survey we got Brand Index score of 78
Brand Strength Score: It is a competitive benchmarking tool that identifies the strength of a
brand. It is measured using Internal & External factors the brand. Based on the survey we got
Brand Strength score of 89.
Financial performance: It is measured by using Brand Index, Brand strength Score &
Revenues of a company.
The brand value of Maggi calculated as per Interbrand’s Brand valuation approach is Rs
13225 crores.
RECOMMENDATIONS:
Although the brand strength of Maggi is high, it scored low in terms of Differentiation
compared to competitors, So measures should be taken to improve differntiation
Until now Maggi enjoyed an early mover advantage over other brands, because lack of
rivalary. But now HUL’s Knorr & ITC’s yippie are giving strong competition using their
stong distribution & promotion strategies
Even tough the tag line of Maggi is “ Taste bi Health bi”, consumers are relating Maggi as
tasty product but not healthy product (as per laddering) , which may be threat to maggi
because consumers are becoming health consciousness. So Maggi should use new ways to
effectively communicate with consumers.
% " ! " # $
What is a brand ?
A brand is an Intangible Asset. It is the future generator of cash flows. Brand gives access to
customers and possibility of charging premium on its product. A brand build its physiological
relationship with its customer over the period. It is not set fixed, rather it keeps evolving over
a period of time. It helps company in changing their reputation
Ho did brand valuation originate?
In the late 1980’s roll of brand acquisition led to the exposure of the hidden value in highly
branded companies. This was how brand valuation originated. These brand acquisitions
include: Nestle acquiring Rowntree, Grand Metropolitan acquiring Pillsbury, United Biscuits
buying Keebler and then selling it, and acquisition of Nabisco’s European businesses. The
acquiring prices of all these branded company were higher than the value of the company’s
net tangible asset. This brings in a high level of ‘Goodwil’ due to the acquisition. This
goodwill were the funtion of varios factors such as brand, copyrights, patents, customer
loyalty, distribution contracts, staff knowledge, etc.
Brand Valuation: Brand valuation is a measure of identifying and defining the economic
strengths and weaknesses of a brand.
There are number of approaches for brand valuation, but most have fallen under these two
categories.
RESEARCH –BASED BRAND EQUITY EVALUATIONS:
There are many brand equity models that use consumer research to measure the performance
of brands. These methods don’t consider financial value of the brands; they measure behavior
and attitudes of the brand that have an impact on the financial performance of the brand. This
methods measure various perceptive measures such as awareness, knowledge, familiarity,
relevance, purchase considerations, preference, satisfaction and recommendation.
Even though a brand performs strongly according to these indicators but they still fail to
create financial and share holder’s value. Because these methods do not consider the role of
certain factors like R&D and design of the brand that have high degree of impact on the
brand’s performance.
FINANCIALLY DRIVEN APPROACHES:
Cost-based Approach: In this method the value of a brand is the aggregation of all costs
incurred or replacement costs required to bring back the brand to it’s current state. This
method of valuation fails because there is no direct correlation between financial investments
made & value added to the brand.
Comparable Approach: In this method the value of a brand is arrived on the basis of
comparing it with something comparable. But comparing of brands is difficult because
brands by definition are differentiated and not comparable. Further more, the value creation
of a brand in the same category can be different, even though other aspects of the underlying
business such as target group, advertising spend price promotion & distribution channel are
& " ! " # $
identical.
Premium price Approach: In this method the brand value is created as the net present value
of future prices that a branded product would command over an unbranded product.
However, the primary purpose of many brands is not necessarily to obtain a premium but
rather to secure the highest level of future demand. The value generation of a brand is
dependent volume generation rather than securing price premium. The method is flawed
because there are rarely generic equivalents of a brand.
Economic use Approach: Approaches that are driven exclusively by brand equity measures
or financial measure lose either financial or marketing component of the brand. For
measuring the true value of a brand both financial & marketing aspects have to be considered
to provide a complete and robust value of a brand. The economic use approach, which was
developed in 1988, combines brand equity and financial measures, and has become the most
widely recognized and accepted methodology for brand valuation. It has been used in more
than 3,500 brand valuations worldwide.
RATIONAL FOR CHOOSING INTERBRAND’S BRAND VALUATION METHOD:
Brand value can be measure by using two approaches, first being Research based and other
being Financial based approach. The problem with these approaches is they are either missing
Marketing aspects or Financial aspects. Both these aspects have to considered to find the true
value of a brand.
Interbrand’s valuation is an economic use approach that combines both brand equity &
financial measures.
' " ! " # $
Brand Value Measurement
Interbrand’s Brand Valuation approach is driven by three factors
Brand Index
Brand Strength Score
Financial performance
Brand Index:
The Brand Index is expressed on a scale of 0 to 100. It quantifies the strength of the brand
against generic product.
The following question is asked to find the brand index
Which type of noodles do you prefer to eat ?
Branded
Unbranded
Both
%&' ()*
+' ,*
-' +.*
/0"12$2
3140"12$2
/567
Analysis: From the data we found that 78% prefer only branded noodles and are assign
Brand Index of noodles as 78
( " ! " # $
Brand Strength Index:
BSI is a competitive benchmarking tool that identifies the strength of a brand. It is broadly
classified into two types.
INTERNAL FACTORS:
Internal factors are broadly classified in to four types. We are relying on the secondary data
for measuring these four factors, because consumers are not aware/concerned about the
internal factors of a brand & Internal factors are maintained in secrecy by a company.The
four factors are:
CLARITY: Its about what the brand stands for in terms of its values, positioning
proposition, audiences, customer insights & drivers. We assign Maggi a score of 10 in this
aspect because without these values articulated internally and shared in the organization it is
not possible for a brand to be the leader in the category consequentially over the years.
COMMITMENT: It is the extent to which the brand receives the support in terms of time,
influence & Investment. We assign Maggi a score of 10 in this aspect the reasons are stated
below.
Brand extension for other category of products that shows company’s interest in the
brand.
Brand Campaign’s such as “2 Min mein khushiyan movement” & other
advertisements shows company’s time & Investment in the brand.
PROTECTION: It is how secured brand in dimensions such as legal protection, propriety
ingredients, scale or geographical spread. We assign Maggi a score of 8 in this aspect. The
reasons are stated below
The category itself doesn’t have legal protection because the products across the
brand are easily replicable.
/0"12
860$1#67
916$01":
;"<6508
=>6$01":
;"<6508
) " ! " # $
When it comes to scale & geographical spread Maggi has early mover advantage and
a strong distribution channel and presence of over 4.1 million outlets.
RESPONSIVENESS: It is the ability of the brand to respond to market changes, challenges
& opportunities. The brand should have a sense of leadership internally & a desire and ability
to constantly evolve & renew itself.
We assign Maggi a score of 9 in this aspect. The reason are stated below
Introduced new products like Maggi Atta noodles, Veg multigrain noodles in response
to the competition.
EXTERNAL FACTORS:
It is mainly dependent on how consumers perceive the brand. The ratings for the external
factors are calculated based on our Phase 1 & 2 of the project and using additional
questionnaire.
AUTHENCITY: This component is about how soundly a brand is based on an internal
capability. Authenticity is calculated considering 3 factors
Heritage
Value set (Rated based on the value’s found by using Laddering Theory)
Customer’s Expectation
Did Maggi meet your expectations every time you had it?
More than meet my expectations
Meet my expectations
Did not meet my expectations
%' -*
,?' .@*
?' ?*
A50$ 67"1 B$$6 BC
$>D$<6"6E518
A$$6 BC $>D$<6"6E518
2E2 156 B$$6 BC $>D$<6"6E518
Analysis: From the data we found that 94% of the respondents are satisfied & rest are more
satisfied with the brand. Considering Maggi heritage of 25 years & values it has created to
the consumers we are assigning a score of 10
RELEVANCE: This component is about how well the brand satisfies the needs of the
consumer. The following questions were asked to find the brand relevance.
Which brand of noodles do you associate with the above chosen attributes? (Tick under
the name of the brand)
The first question was asked to find what attributes are important when buying noodles and
second to measure which brand is satisfying that needs/wants (for each customers) better than
the competitors.
For measuring the brand relevance of Maggi following questions were asked:
Which attributes are important for you in noodles: (tick the ones which are important
for you)
Which brand of noodles do you associate with the above chosen attributes? (Tick under
the name of the brand)
The first question was asked to find what attributes are important when buying noodles and
second to measure which brand is satisfying that needs/wants (for each customers) better than
the competitors
The result for Brand Relevance (as per questionnaire) is as follows:
* " ! " # $
!+ " ! " # $
BRAND RELEVANCE
ATTRIBUTES
FOODLE
S
KNOR
R
MAGG
I
TOP
RAMEN
WAI
WAI
YIPPE
E
FUN 0 1 1 0 1 2
TASTE 0 0 24 8 0 0
CONVINEANT 0 6 17 0 0 0
HEALTHY 10 0 0 8 0 0
VARIETY 0 1 16 0 0 1
QUALITY 2 1 20 2 0 0
PACKAGING 0 0 1 0 0 0
VALUE FOR
MONEY 0 0 14 1 5 1
NON STICKY 0 0 0 4 4 6
LONG NOODLES 0 1 1 1 0 4
SUB TOTAL 12 10 94 24 10 14
PERCENTILE 50 25 100 83.3 25 66.7
Analysis: We assign Maggi a score of 10 because it has got more relevance compared to its
peers.
DIFFERNCIATION: This component measures how distinct the brand is from the
competition. Differentiation is the one that helps the brand to charge premium.
For measuring the differentiation of Maggi following questions were asked
?
%?
@?
-?
)?
+??
+%?
;FFGH=I JKFLL AMNN9 OF! LMA=K PM9 PM9 Q9!!==
,-./0 -1213./41
!! " ! " # $
What comes to your mind when you think of the following brands?
This question is framed to find what prominent characteristic made the consumer to buy the
product
From the brands listed below which brand do you think have similar offerings? If any
This question is framed to find the uniqueness of the brand, i.e how many respondents feel
the brand is different from the competition.
The result for Brand Differentiation (as per questionnaire) is as follows:
Brand
Differentiation
Attributes FOODELS KNORR MAGGI
TOP
RAMEN WAI WAI YIPPEE
FUN 0 0 2 0 0 3
SPICY 0 0 1 1 3 1
SOUPY 0 15 0 0 0 1
ROUND 0 0 0 0 0 6
TASTY 0 3 6 11 3 2
LONG
NOODLES 0 0 0 0 0 1
SMOOTH 0 0 0 4 0 1
NON STICKY 0 0 0 0 0 1
FAST TO
COOK 0 0 6 0 0 0
CONVINEANT 0 0 2 0 4 0
VALUE FOR
MONEY 0 0 2 0 0 0
VARIETY 0 0 1 0 0 0
HEALTHY 15 0 3 0 0 0
TOTAL 15 18 23 16 10 16
UNIQUENESS 17 15 8 11 15 10
SUB TOTAL 32 33 31 27 15 10
PERCENTILE 83.33 100 66.67 50 33.33 16.67
!# " ! " # $
?
%?
@?
-?
)?
+??
+%?
;FFGH=I JKFLL AMNN9 OF! LMAMK PM9 PM9 Q9!!==
,5678 09::;5;7<96<9=7
Analysis: We assign Maggi a score of 7 because other brands such as Foodels & Knorr stood
ahead of Maggi.
CONSISTENCY: This measures the degree to which a brand is experienced without fail
across all touch points and formats.
The following question is was asked to find the consistency of the brand
Did you find any change in the quality of the Maggi noodles every time you had it?
,' .*
%.' .+*
Q$8
K5
!$ " ! " # $
If you have mentioned yes for the above question, please tick which ever is applicable?
Quality has Increased
Quality has decreased
Out of the 3 respondents who said there is a change in quality, All mentioned the quality has
increased
Analysis: We assign a score of 10 for this attribute because 91% said the quality is consistent
and rest said the quality has increased
PRESENCE: The degree to which a brand feels omnipresent and is talked about positively
by consumers, customers and opinion formers in both traditional and social media.
The following questions were asked to find the presence of the Maggi
Out of your last 5 purchases of noodles how many times did you buy each of the
following brands or out of last 5 times you had noodles?
The underlying assumption behind this is if a brand is purchased more often consumers have
positivity towards the brand (consumers have lot of choices in this category)
Do you recommend Maggi to others ?
Analysis: We assigned Maggi a score of 9 based on the responses to the above questions
.@*
-*
?*
+?*
%?*
,?*
@?*
&?*
-?*
(?*
)?*
.?*
+??*
L$<5BB$12 G5$8 156 L$<5BB$12
-;>=??;786<9=7 @A <B; >=7CD?;5C
!% " ! " # $
UNDERSTANDING: This component in depth understanding of the distinctive qualities and
characteristics of the brand and those of the company.
BAV & Laddering techniques gave us some in-depth understanding of how consumers
understand the distinctive qualities & characteristics of the brand.
From our survey it was found that 73% of the consumers recognize the tagline of the brand
that is “Health bhi Taste bhi”, but when we used Laddering we found that attribute Health is
not given much importance by the consumers.
To find the consumers understanding of the company following questions were asked.
Which company owns the brand Maggi?
List down the various products offered by Nestle ?
From the list of 24 people who identified Maggi company’s name as Nestle only 22 were able
to recall Nestle’s other products.
Analysis: Based on the above from Laddering & Questionnaire data analysis we assign a
score of 6 for this attribute.
BRAND STRENGTH SCORE TABLE:
@
%
%
%@' (&*
R3H
GM/3L
9OS
K=IOH=
!& " ! " # $
ATTRIBUTE SCORE
INTERNAL FACTORS SCORE
CLARITY 10
COMMITMENT 10
PROTECTION 8
RESPONSIVENESS 9
EXTERNAL FACTORS
AUTHENCITY 10
RELEVANCE 10
DIFFERENTIATION 7
CONSISTENCY 10
PRESENCE 9
UNDERSTANDING 6
TOTAL SCORE 89
Financial Analysis:
!' " ! " # $
The brand value of Maggi is Rs 13225 crores as per as our calculation. It is the market leader with a
brand strength score of 88.
RECOMMENDATIONS:
!( " ! " # $
Although the brand strength of Maggi is high, it scored low in terms of Differentiation
compared to competitors, So measures should be taken to improve differntiation
Until now Maggi enjoyed an early mover advantage over other brands, because lack of
rivalary. But now HUL’s Knorr & ITC’s yippie are giving strong competition using their
stong distribution & promotion strategies
Even tough the tag line of Maggi is “ Taste bi Health bi”, consumers are relating Maggi as
tasty product but not healthy product (as per laddering) , which may be threat to maggi
because consumers are becoming health consciousness. So Maggi should use new ways to
effectively communicate with consumers.
!) " ! " # $
Annexure
1. Which type of noodles do you prefer to eat ?
Branded
Unbranded
Both
2. Do you recommend Maggi to others ?
Yes
No
3. Which attributes are important for you in noodles: (tick the ones which are
important for you)
!* " ! " # $
4. Which brand of noodles do you associate with the above chosen attributes? (Tick
under the name of the brand )
5. What comes to your mind when you think of the following brands:
Yippee Noodles:
Top Ramen:
Wai Wai :
Maggi Noodles:
Horlicks Foodles:
Knorr soupy noodles:
#+ " ! " # $
6. From the brand listed below which brand do you think have similar offerings? If
any
7. Out of your last 5 purchase of noodles how many times did you buy each of the
following brands or out of last 5 times you had noodles?
Yippee Noodles:
Top Ramen:
Wai Wai:
Maggi Noodles:
Horlicks Foodles:
Knorr soupy noodles:
8. Did Maggi meet your expectations every time you had it?
More than meet my expectations
Meet my expectations
Did not meet my expectations
9. Did you find any change in the quality of the Maggi noodles every time you had
it?
Yes
No
10. If you have mentioned yes for the above question, please tick which ever is
applicable?
Quality has Increased
Quality has Decreased
doc_229038592.pdf