Description
The presentation is to give insights into various strategies adopted by Maggi for brand extension and brand repositioning.
Milk Products & Nutrition : Nestle milk, milkmaid and milkmaids funshakes, dairy whitener, dahi, raita, jeera raita, yogurts etc. Beverages : Nescafe Classic, sunrise, cappuccino, Nestea Prepared Dishes & Cooking Aids : Maggi Noodles, Sauces, soups and cooking aids Chocolate & Confectionary : Nestle Kitkat, Milky Bar, Bar- one, Polo, Eclairs and selections
Sales Mix (%) Q1 - 2009
14.2
22
15.7 47.2
Chocolate & Confectionary Beverages
Milk Products & Nutrition Prepared Dishes & Cooking Aides
Nestlé brand of instant soups, stocks, bouillon cubes, ketchups, sauces, seasonings and instant noodles • 1872 – Came into existence under Julius Maggi • 1897 – Foundation of Maggi GmbH SAF in Germany • 1947 – Merged with Nestlé of Switzerland Expanded in the Netherlands, Czech Republic, Slovenia, Slovakia, Poland, and France In West Africa, Maggi cubes are used as part of the local cuisine
Today, Maggi is particularly well known in the Baltic states for its dry soups
In India, New Zealand, Australia, Malaysia, Pakistan, Nigeria, the Philippines, and Singapore Maggi is known for its instant Maggi noodles
Maggi 2 Minutes Noodles launched in 1982 in India Tried to create instant food category targeted at working women
Research proved children are the largest segment
Positioned as ‚Convenience Product? for women, ‚Fun? for children Tag Line: Fast to Cook Good to Eat High brand awareness of tag lines ‚Mummy, bhook lagi hai?, ‚Bas 2-
minute?
Maggi Noodles Maggi Vegetable Noodles Dal Atta Noodles Maggi Rice Noodles Mania Maggi Sauces Maggi Healthy Soups
Maggi Magic Cubes
Maggi Pichkoo Maggi Cuppa Mania
Early 1990s – Ketchups and Sauces
1997 – Launched Maggi Macaroni
2008 - Cuppa Mania
Mid 1990s – Pickles, Cooking Mixes, Cooking Sauces
Sweet Maggi Noodles, Maggi Thin Noodles, Rice Noodles, Dal Atta Noodles, Vegetable Atta Noodles Maggi Coconut Milk , Maggi Magic Cubes
Maggi Brand Extensions Over the Years
Maggi 2 Minute Noodles
Maggi Sauces and Ketchups Maggi Soups Maggi Pickles Maggi Macaroni Maggi Instant Mixes Maggi Cooking Sauces Maggi Coconut Milk Maggi Atta Noodles
Maggi Cubes (seasoning)
• Maggi re-launched in 1997 • 200 million Rupees spent on the advertising campaign • Maggi replaced Nescafe as company’s core brand • In 2001,new variants in noodles and sauces were launched – Noodles : Tomato and Curry – Sauces : Imli (tamarind)
• NIL devised new Sales Promotion Strategy
• Launched smaller SKU in form of small packs at lower price points
– 50 gm Maggi @ Rs 5
• More focus on better Distribution
Small packets and better distribution increased market penetration Even in recessionary period, SKU at low price retained customers thereby maintaining loyalty Assumption was that people would switch to bigger packets when recession is over Same strategy was replicated for other Nestle products like Nescafe, Kitkat, Bar One etc. Soups were also launched in small packs and cups(also countered Knorr)
Maggi discontinued their Pickles in 2002 as they didn’t perform well Other brands like Ruchi, Mother’s recipe etc. were also fairing poorly in this market This is because consumer tastes in pickles varied region to region.
2003 – Maggi test marketed 2 step mixes in three variants – Paneer Tikka, Chicken Biryani, Chicken Tikka ITC had a premium brand ‚Kitchens of India? and they introduced another brand named ‚Ashirvaad? HLL introduced ‚Knorr Annapurna Soupy Snax? available in 4 variants in October 2003 Top Ramen also came out wit Cup Noodles positioned as ‘in between meal/snack’
• In 2004, Preity Zinta was roped in to play endorser to the Rs. 5/- pack • To communicate the message of fun, convenience, vibrancy and instant connection with the consumer
Since early 2000s NIL focussed on health and wellness by launching such products all over the world Introduced new ‚healthier? weaning milk products in 2004 in India Established R&D facility to improvise products to be more healthy
Introduced Maggi Vegetable Atta Noodles To meet the new needs of the Indian consumer who now wants to include health and wellness in their foods in a convenient manner Contributed 11% value in the first seven months
2006 – Launched Dal Atta Noodles – combination of whole wheat and dal (pulses)
Food and Beverage Survey by FICCI in Feb 2006
• Health foods, health food supplements, convenience foods and branded foods are the rapidly rising segments of F&B Industry • Market for branded food products growing at a rate of 15% in early 2000s • Reasons for growth: changing lifestyles, eating habits, increasing purchasing power of middle income group
PERCENTAGE AD SPENDS OF TOP 5 NOODLES/PASTA BRANDS IN INDIA IN THE FIRST HALF OF 2005
BRANDS ADVERTISER 50 26 22 2 0.1 % SPEND
Maggi Vegetable Atta Noodles Nestle India Limited Sunfeast Pasta Treat Maggi Noodles Asian 2 Pm Noodles Maggi Masala ITC Ltd. Nestle India Limited Asian 2 Pm Noodles Nestle India Limited
• Heavy spending on advertising campaign with two pronged strategy i.e. mothers and kids: ‚Taste bhi Health bhi?
• Increasingly targeted the whole family guided by the fact that Maggi noodles were consumed by all age groups • Claimed each 100gms of Vegetable Atta Noodles to have the same nutritional value as that of 3 rotis • Repositioned soups as ‚Healthy Soups? and advertised similarly
Maggi was the market leader in the Sauces and Ketchup segment However, competition from Heinz and Kissan increased. Heinz reduced its prices by about 30%
Maggi lost its market share from 41.9% to 39.7% in 2004
To counter attack Maggi increased advertising spends, brought in Ranvir Shorey and Vinay Pathak in replacement of Javed Jaffery and Pankaj Kapoor ads
Maggi Sauces had more variety than any other brand and they still retained the market leader position in 2005
Retail Market size for sauces and ketchups was Rs. 1.5 to 1.8 billion Heinz introduced Heinz Champ Ketchup containing vitamins and proteins HLL’s Kissan sauces available in Indian flavours like Tomato, Tomato & Chilli and one with ‚no onion no garlic? Market Share: Sauces and Ketchups (2005) Maggi – 37% Kissan – 29%
COMPANY
PRODUCT
Instant Noodles Soupy Noodles Top Ramen
BRAND
Curry Smoodles
Indo Nissin Foods Ltd. ITC Limited HLL Heinz India Ltd. Dabur India Ltd.
Ready to eat
Cooking Pastes and Cooking Aides Pasta
Cup Noodles, Mug Smoodles
Kitchens of India, Ashirvaad Sunfeast
Sauces and Ketchup
Soups Sauces and Ketchups Soups Sauces Cooking Pastes
Kissan
Knorr Annapurna Heinz Hommade Capsico Hommade
2005 – NIL decided not to launch Maggi 2 Step Mixes even after test marketing for about one year Scrapping of underperforming products like Milkmaid Squeezy, Nestle Chocostick and Milkmaid UHT liquid milk. Emphasis on maintaining healthy topline as well as good bottom line
2005 – Maggi brand valued at Rs. 3.7 bn. Increased by 17.5% from last year Volume : 48.3 thousand tons, increased by 7.5% from last year NIL set up manufacturing facility at Uttaranchal exclusively for production of NIL’s culinary products
Even though demand is growing for convenience food, Indian consumers still conservative in their food habits due to perceived health benefits of traditional food NIL should not rely on the flagship brand ‚Maggi Noodles? . It should try to diversify into other categories like biscuits, cheese and butter cubes, cheese spreads etc.
Maggi Brand should not be extended any further except for the cheese and butter products.
For Indian flavored food categories another Brand should be launched rather than extending the ‚Maggi? Brand
doc_294928556.pptx
The presentation is to give insights into various strategies adopted by Maggi for brand extension and brand repositioning.
Milk Products & Nutrition : Nestle milk, milkmaid and milkmaids funshakes, dairy whitener, dahi, raita, jeera raita, yogurts etc. Beverages : Nescafe Classic, sunrise, cappuccino, Nestea Prepared Dishes & Cooking Aids : Maggi Noodles, Sauces, soups and cooking aids Chocolate & Confectionary : Nestle Kitkat, Milky Bar, Bar- one, Polo, Eclairs and selections
Sales Mix (%) Q1 - 2009
14.2
22
15.7 47.2
Chocolate & Confectionary Beverages
Milk Products & Nutrition Prepared Dishes & Cooking Aides
Nestlé brand of instant soups, stocks, bouillon cubes, ketchups, sauces, seasonings and instant noodles • 1872 – Came into existence under Julius Maggi • 1897 – Foundation of Maggi GmbH SAF in Germany • 1947 – Merged with Nestlé of Switzerland Expanded in the Netherlands, Czech Republic, Slovenia, Slovakia, Poland, and France In West Africa, Maggi cubes are used as part of the local cuisine
Today, Maggi is particularly well known in the Baltic states for its dry soups
In India, New Zealand, Australia, Malaysia, Pakistan, Nigeria, the Philippines, and Singapore Maggi is known for its instant Maggi noodles
Maggi 2 Minutes Noodles launched in 1982 in India Tried to create instant food category targeted at working women
Research proved children are the largest segment
Positioned as ‚Convenience Product? for women, ‚Fun? for children Tag Line: Fast to Cook Good to Eat High brand awareness of tag lines ‚Mummy, bhook lagi hai?, ‚Bas 2-
minute?
Maggi Noodles Maggi Vegetable Noodles Dal Atta Noodles Maggi Rice Noodles Mania Maggi Sauces Maggi Healthy Soups
Maggi Magic Cubes
Maggi Pichkoo Maggi Cuppa Mania
Early 1990s – Ketchups and Sauces
1997 – Launched Maggi Macaroni
2008 - Cuppa Mania
Mid 1990s – Pickles, Cooking Mixes, Cooking Sauces
Sweet Maggi Noodles, Maggi Thin Noodles, Rice Noodles, Dal Atta Noodles, Vegetable Atta Noodles Maggi Coconut Milk , Maggi Magic Cubes
Maggi Brand Extensions Over the Years
Maggi 2 Minute Noodles
Maggi Sauces and Ketchups Maggi Soups Maggi Pickles Maggi Macaroni Maggi Instant Mixes Maggi Cooking Sauces Maggi Coconut Milk Maggi Atta Noodles
Maggi Cubes (seasoning)
• Maggi re-launched in 1997 • 200 million Rupees spent on the advertising campaign • Maggi replaced Nescafe as company’s core brand • In 2001,new variants in noodles and sauces were launched – Noodles : Tomato and Curry – Sauces : Imli (tamarind)
• NIL devised new Sales Promotion Strategy
• Launched smaller SKU in form of small packs at lower price points
– 50 gm Maggi @ Rs 5
• More focus on better Distribution
Small packets and better distribution increased market penetration Even in recessionary period, SKU at low price retained customers thereby maintaining loyalty Assumption was that people would switch to bigger packets when recession is over Same strategy was replicated for other Nestle products like Nescafe, Kitkat, Bar One etc. Soups were also launched in small packs and cups(also countered Knorr)
Maggi discontinued their Pickles in 2002 as they didn’t perform well Other brands like Ruchi, Mother’s recipe etc. were also fairing poorly in this market This is because consumer tastes in pickles varied region to region.
2003 – Maggi test marketed 2 step mixes in three variants – Paneer Tikka, Chicken Biryani, Chicken Tikka ITC had a premium brand ‚Kitchens of India? and they introduced another brand named ‚Ashirvaad? HLL introduced ‚Knorr Annapurna Soupy Snax? available in 4 variants in October 2003 Top Ramen also came out wit Cup Noodles positioned as ‘in between meal/snack’
• In 2004, Preity Zinta was roped in to play endorser to the Rs. 5/- pack • To communicate the message of fun, convenience, vibrancy and instant connection with the consumer
Since early 2000s NIL focussed on health and wellness by launching such products all over the world Introduced new ‚healthier? weaning milk products in 2004 in India Established R&D facility to improvise products to be more healthy
Introduced Maggi Vegetable Atta Noodles To meet the new needs of the Indian consumer who now wants to include health and wellness in their foods in a convenient manner Contributed 11% value in the first seven months
2006 – Launched Dal Atta Noodles – combination of whole wheat and dal (pulses)
Food and Beverage Survey by FICCI in Feb 2006
• Health foods, health food supplements, convenience foods and branded foods are the rapidly rising segments of F&B Industry • Market for branded food products growing at a rate of 15% in early 2000s • Reasons for growth: changing lifestyles, eating habits, increasing purchasing power of middle income group
PERCENTAGE AD SPENDS OF TOP 5 NOODLES/PASTA BRANDS IN INDIA IN THE FIRST HALF OF 2005
BRANDS ADVERTISER 50 26 22 2 0.1 % SPEND
Maggi Vegetable Atta Noodles Nestle India Limited Sunfeast Pasta Treat Maggi Noodles Asian 2 Pm Noodles Maggi Masala ITC Ltd. Nestle India Limited Asian 2 Pm Noodles Nestle India Limited
• Heavy spending on advertising campaign with two pronged strategy i.e. mothers and kids: ‚Taste bhi Health bhi?
• Increasingly targeted the whole family guided by the fact that Maggi noodles were consumed by all age groups • Claimed each 100gms of Vegetable Atta Noodles to have the same nutritional value as that of 3 rotis • Repositioned soups as ‚Healthy Soups? and advertised similarly
Maggi was the market leader in the Sauces and Ketchup segment However, competition from Heinz and Kissan increased. Heinz reduced its prices by about 30%
Maggi lost its market share from 41.9% to 39.7% in 2004
To counter attack Maggi increased advertising spends, brought in Ranvir Shorey and Vinay Pathak in replacement of Javed Jaffery and Pankaj Kapoor ads
Maggi Sauces had more variety than any other brand and they still retained the market leader position in 2005
Retail Market size for sauces and ketchups was Rs. 1.5 to 1.8 billion Heinz introduced Heinz Champ Ketchup containing vitamins and proteins HLL’s Kissan sauces available in Indian flavours like Tomato, Tomato & Chilli and one with ‚no onion no garlic? Market Share: Sauces and Ketchups (2005) Maggi – 37% Kissan – 29%
COMPANY
PRODUCT
Instant Noodles Soupy Noodles Top Ramen
BRAND
Curry Smoodles
Indo Nissin Foods Ltd. ITC Limited HLL Heinz India Ltd. Dabur India Ltd.
Ready to eat
Cooking Pastes and Cooking Aides Pasta
Cup Noodles, Mug Smoodles
Kitchens of India, Ashirvaad Sunfeast
Sauces and Ketchup
Soups Sauces and Ketchups Soups Sauces Cooking Pastes
Kissan
Knorr Annapurna Heinz Hommade Capsico Hommade
2005 – NIL decided not to launch Maggi 2 Step Mixes even after test marketing for about one year Scrapping of underperforming products like Milkmaid Squeezy, Nestle Chocostick and Milkmaid UHT liquid milk. Emphasis on maintaining healthy topline as well as good bottom line
2005 – Maggi brand valued at Rs. 3.7 bn. Increased by 17.5% from last year Volume : 48.3 thousand tons, increased by 7.5% from last year NIL set up manufacturing facility at Uttaranchal exclusively for production of NIL’s culinary products
Even though demand is growing for convenience food, Indian consumers still conservative in their food habits due to perceived health benefits of traditional food NIL should not rely on the flagship brand ‚Maggi Noodles? . It should try to diversify into other categories like biscuits, cheese and butter cubes, cheese spreads etc.
Maggi Brand should not be extended any further except for the cheese and butter products.
For Indian flavored food categories another Brand should be launched rather than extending the ‚Maggi? Brand
doc_294928556.pptx