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A STUDY OF MAGGIE BRAND EXTENSION AND REPOSITIONINGWITH RESPECT TO NAVI-MUMBAI

DISSERTATION SUBMITTED TO THE

PADMASHREE DR. D.Y. PATIL UNIVERSITY

IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THEAWARD OF THE DEGREE OF

MASTERS IN BUSINESS ADMINISTRATION

SUBMITTED BY:

PRIYA BHAGWAT

(ROLL NO. MBA-MARKETING-01082)

RESEARCH GUIDE:

ASST. PROF. VIDHYA KSHIRSAGAR DEPARTMENT OF BUSINESS MANAGEMENT

PADMASHREE DR. D.Y. PATIL UNIVERSITY

CBD BELAPUR, NAVI MUMBAi



A STUDY OF MAGGIE BRAND EXTENSION AND REPOSITIONINGWITH RESPECT TO NAVI-MUMBAI

Dissertation Submitted to the

Padmashree Dr. D.Y. Patil University

in partial fulfillment of the requirements for the award of the Degree of MASTERS IN BUSINESS ADMINISTRATION

Submitted by:

PRIYA BHAGWAT

(Roll No.MBA-MARKETING-01082)

Research Guide:

Asst. Prof. Vidhya Kshirsagar



Department of Business Management

Padmashree Dr. D.Y. Patil University

CBD Belapur, Navi MumbaiMarch 2012

DECLARATION

I hereby declare that the dissertation“A Study of Maggie Brand Extension andRepositioning With Respect to Navi-Mumbai”submitted for the MBA Degreeat Padmashree Dr. D.Y. Patil University’s Department of Business Management my original work and the dissertation has not formed the basis for the award of adegree, associate ship, fellowship or any other similar titles.

Place: Mumbai

Date:

(Priya Bhagwat)

Signature of the Student



CERTIFICATE

This is to certify that the dissertation entitled “A Study of Maggie Brand

Extension and Repositioning With Respect to Navi-Mumbai” is the bona fideresearch work carried out by Mrs. Priya Bhagwat, student of MBA, atPadmashree Dr. D.Y. Patil University’s Department of Business Managementduring the year 2010 -2012, in partial fulfillment of the requirements for theaward of the Degree of Master in Business Management and that thedissertation has not formed the basis for the award previously of any degree,diploma, associate ship, fellowship or any other similar title.

(Asst. Prof. Vidhya Kshirsagar)

(Dr. R. Gopal,

Director, Department of Business Management,



Padmashree Dr. D.Y. Patil University)

Place: MumbaiDate:

ACKNOWLEDGEMENTS

In the first place, I thank Asst. Prof. Vidhya Kshirsagar, Department of BusineManagement, Padmashree Dr. D.Y. Patil University, Navi Mumbai for havingiven me her valuable guidance for the project. Without her help it would hav been impossible for me to complete the project.

I would also like to thank the various people who have put in their efforts anresponded to my survey and filled in the questionnaire. I would also like to thamy friends who have helped me with their suggestions in the project.

I would be failing in my duty if I do not acknowledge with a deep sense ogratitude the sacrifices made by my parents and thus have helped me in completi

the project work successfully.

Place: Mumbai



Date:


PREFACE

While searching for a suitable topic for the MBA Dissertation, I thought of doing a project on Brand Equity. This will ensure that I learn many thingsrelated to branding and repositioning of products. Branding and repositioningare an indispensible part of Marketing.

To study the Brand Extension, there were many products to choose from. Butfinally I chose Nestlé’s Maggie Brand.

The Maggi Company merged with Nestlé in 1947. Today, Maggi is a leadingculinary brand and part of the NESTLÉ family of fine foods and beverages.Through this project, an attempt is been made to study the the Maggi brand,

which is today known world wide for quality and innovation, Nestle offers awhole range of products, such as packaged soups, frozen meals, preparedsauces and flavourings to build a Brand image.



It is strongly hoped that this project finds out the true customer perspectiveregarding the deodorants.


TABLE OF CONTENTS

Chapter No. Title Page No.

A List of Figures 9

B List of Abbreviations 10

Ch 1 Executive Summary 11 -13

Ch 2 Objectives of the Study 14 - 15

Ch 3 Research Methodology 16 - 20

Ch 4 Review of Literature 21 - 25

Ch 5 Introduction to Maggie Brand in India 26 - 33

Ch 6 Introduction to Product Variants 34 - 37

Ch 7 Market Share of the Maggie Brand 38 - 45



Ch 8 Introduction to Maggie Brand Equity 46 - 48

8.1 Maggie Brand Image 49 - 61

8.2 Maggie Brand Association 62 - 74

8.3 Maggie Brand Recall 75 - 79

Ch 9 Brand Performance of Maggie Products 80 - 81

Ch 10 Brand Extension of Maggie 82 - 88

Ch 11 SWOT Analysis of Maggie Brand 89 - 100

Ch12 STPD ANALYSIS OF MAGGI BRAND 101 - 107

Ch12CUSTOMER BASED BRAND EQUITYPYRAMID (CBBE)

108

Ch12 BRAND PRISM OF MAGGI 109 - 113

Ch12 114 - 118

Ch12 119 - 121

Ch12 122 - 125

Ch12 Data Analysis and interpretation 126 - 129

Ch 9 Recommendations and suggestions 130 - 154

Ch 10 Conclusion 155 - 157



Ch 11 Limitations 158 - 159

Ch 12 Reference Section 160

12.1 Annexure 161 - 16612.2 Bibliography

Ch 13 Questionnaire 167 - 168

LIST OF FIGURES

No. Title Pg. No.

6.1 38

8.1 109



EXECUTIVE SUMMARY

The report entitled “A study of Maggi Brand Repositioning and Extension”deals with the study of Maggi brand that was launched in India in the year 198 by Nestle India Limited, which became synonymous with noodles.

This research project tries to find a solution to a real life problem of Maggi launch its products as a Healthy Product. The introduction provides the compan background, operational & other important information provided by the compawhich would assist in taking the decision for the right brand extension strategy fMaggi.



INTRODUCTION

Maggi noodlesis a brand of instant noodlesmanufactured by Nestlé. The brand is popular inAustralia, India, South Africa, Brazil, New Zealand, Brunei, Malaysia,Singapore, Sri Lanka, Bangladesh, Pakistan, Fijiand thePhilippines. In severalcountries, it is also known as "maggi mee" (mee is Indonesian/Malay/Hokkien fonoodles). Maggi noodles are part of theMaggifamily, a Nestlé brand of instantsoups, stocks, and noodles. InMalaysia, there are fried noodles made from maggi

noodles known asMaggi goreng. Maggi noodles recently introduced a new varietyof its noodles, to cater for the health conscious like 'NoMSG', 'Less Salt', and 'NoTrans fat'. A wholewheat flour based noodle variation marketed by the name"Vegetable Atta Noodles" has been introduced in India (Atta flour is used in preparing most forms of wheat based breads in India) and caters to healthconscious buyers wary of the refined flour used in the regular Maggi noodles. Thmove helps the brand in India as suburban mothers, who feed the noodles to a lin

of rice noodlesandwhole wheatwith pulses, carrots, beans, and onions has also been introduced inIndia. In fact, "Maggi" has become a well-known brand for instant noodles in India and Malaysia.

http://en.wikipedia.org/wiki/Instant_noodle

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http://en.wikipedia.org/wiki/Australia

http://en.wikipedia.org/wiki/India

http://en.wikipedia.org/wiki/South_Africa

http://en.wikipedia.org/wiki/Brazil

http://en.wikipedia.org/wiki/New_Zealand

http://en.wikipedia.org/wiki/Brunei

http://en.wikipedia.org/wiki/Malaysia

http://en.wikipedia.org/wiki/Singapore

http://en.wikipedia.org/wiki/Sri_Lanka

http://en.wikipedia.org/wiki/Bangladesh

http://en.wikipedia.org/wiki/Pakistan

http://en.wikipedia.org/wiki/Fiji

http://en.wikipedia.org/wiki/Philippines

http://en.wikipedia.org/wiki/Maggi


http://en.wikipedia.org/wiki/Maggi_goreng

http://en.wikipedia.org/wiki/Monosodium_glutamate

http://en.wikipedia.org/wiki/Trans_fat

http://www.maggi.in/vegetables_atta_noodles.aspx

http://en.wikipedia.org/wiki/Atta_flour

http://en.wikipedia.org/wiki/Rice_noodles

http://en.wikipedia.org/wiki/Whole_grain


http://en.wikipedia.org/wiki/Nestl%C3%A9

http://en.wikipedia.org/wiki/Australia


http://en.wikipedia.org/wiki/South_Africa

http://en.wikipedia.org/wiki/Brazil

http://en.wikipedia.org/wiki/New_Zealand

http://en.wikipedia.org/wiki/Brunei


http://en.wikipedia.org/wiki/Singapore

http://en.wikipedia.org/wiki/Sri_Lanka

http://en.wikipedia.org/wiki/Bangladesh

http://en.wikipedia.org/wiki/Pakistan

http://en.wikipedia.org/wiki/Fiji

http://en.wikipedia.org/wiki/Philippines

http://en.wikipedia.org/wiki/Maggi


http://en.wikipedia.org/wiki/Maggi_goreng

http://en.wikipedia.org/wiki/Monosodium_glutamate

http://en.wikipedia.org/wiki/Trans_fat

http://www.maggi.in/vegetables_atta_noodles.aspx

http://en.wikipedia.org/wiki/Atta_flour

http://en.wikipedia.org/wiki/Rice_noodles

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Nestlé India Ltd (NIL) offered a variety of culinary products such as instantnoodles, soups, sauces and ketchups, cooking aids (seasonings), etc., under theMaggi brand (Refer to Exhibit II for Maggi's product portfolio as of mid-2006). O

these, instant noodles had been NIL's main product category in the culinarysegment since the launch of Maggi 2 Minute Noodles (Maggi noodles) in 1982.Over the years, Maggi noodles became a popular snack food product in India. Infact, the word "Maggi" has become a common term for any brand of noodles inIndia.

In mid 2008, New Zealand supermarkets introduced replacement formulations foits Beef, Oriental, and Curry flavours. A new feature is an extra sachet containingdehydrated vegetables. Maggi claims the new range contains 88% less total fat an86% less saturated fat than the average of top-three (unnamed) 2-minute-noodlecompetitors. The new Maggi range also has considerably lower fat than its own previous formulation. However, the salt content has been increased by 31 percenConsumers have not reacted well to the new formulations, complaining that theywant the original chicken flavour back.[citation needed]

In the Philippines, packs of Maggi noodles were recalled by Nestle Philippinesafter it was said to be contaminated with salmonella.

Maggi noodles also contain the additivesE150dandE627.[1] E150d is sometimesmade from maize.[2]

Claimed to be "2 minute noodles", The Maggi noodle cake and seasoning is addeinto boiling water for two minutes and it is ready for consumption. Egg, seaweed

boiled vegetables or lemon can also be added to the noodles for a better flavour.The industrial revolution in Switzerland in the late 1800s created factory jobs fwomen, who were therefore left with very little time to prepare meals. This wispread problem grew to be an object of intense study by the Swiss Public Welfa

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Society. As a part of its activities, the Society asked Julius Maggi miller to createvegetable food product that would be quick to prepare and easy to digest.

Born on October 9, 1846 in Frauenfeld, Switzerland, Julius Michael JohannMaggi was the oldest son of an immigrant from Italy who took Swiss citizenshJulius Maggi became a miller and took on the reputation as an inventive ancapable businessman.

In 1863, Julius Maggi came up with a formula to bring added taste to meals. Soafter he was commissioned by the Swiss Public Welfare Society, he came up witwo instant pea soups and a bean soup - the first launch of the Maggi brand

instant foods in 1882 - 83. Towards the end of the century, Maggi & Company w producing not just powdered soups, but bouillon cubes, sauces and othflavourings.

The Maggi Company merged with Nestlé in 1947. Today, Maggi is a leadinculinary brand and part of the NESTLÉ family of fine foods and beverages. Undthe Maggi brand, which is today known world wide for quality and innovatio

Nestle offers a whole range of products, such as packaged soups, frozen mea prepared sauces and flavourings.



MAGGI BRAND IN INDIA

Maggi Comes to India – teething troubles Maggi noodles was launched in Indiathe early1980s. Carlo M. Donati, the present Chairman and Managing Director Nestle India Ltd, brought the instant noodle brand to India during his short stihere in the early eighties. At that time, there was no direct competition.

The first competition came from the ready-to-eat snack segment which includsnacks like samosas, biscuits or maybe peanuts, that were usually ‘the bought o

type. The second competition came from the homemade snacks like pakoras sandwiches. So there were no specific buy and make snack! Moreover botcompetitors had certain drawbacks in comparison. Snacks like samosas are usua bought out, and outside food is generally considered unhygienic and unhealthThe other competitor, ‘homemade’ snacks overcame both these problems but hthe disadvantage of extended preparation time at home.

Maggi was positioned as the only hygienic homemade snack! Despite this, Nesfaced difficulties with their sales after the initial phase. The reason being, th positioning of the product with the wrong target group.



Nestle had positioned Maggi as a convenience food product aimed at the targgroup of working women who hardly found any time for cooking. Unfortunatethis could not hold the product for very long. In the course of many mark

researches and surveys, the firm found that children were the biggest consumersMaggi noodles. Quickly they repositioned it towards the kids segment with variotools of sales promotion like colour pencils, sketch pens, fun books, Maggi cluwhich worked wonders for the brand.

WHY THE SPECIFIC BRAND POSITIONING?

Maggi was positioned as ‘2-minute noodles’ with a punch line that said ‘Fast cook! Good to eat!’ And this gave the implied understanding to the consumer thit was a ‘between meals’ snack. The company could have easily positioned t product as a meal, either lunch or dinner. But, it chose not to do so, because tIndian consumer mindset did not accept anything other than rice or roti as a meHence trying to substitute it with noodles would have been futile. The firm did n

position it as a ‘ready-to-eat’ meal either, as the housewife prefers to ‘make’meal for her kids rather than buy it for them. And if she can make it in two minuwith very little effort, then obviously it’s a hit with her! What’s more, if kids alslove the taste, the product is as good as sold! So the ‘2-minute’ funda coupled wthe ‘yummy taste worked!



MAGGI BRAND STORY

Launched in 5 flavors initially – Masala, chicken, Capsicum, sweet & sour, anLasagna – Maggi had to fight hard to be accepted by Indian consumers with thhard-to-change eating habits. The packaged food market was very small at thtime, Nestle had to promote noodles as a concept, before it could promote Magas a brand. It therefore devised a two-pronged strategy to attract mothers on t‘convenience’ plank and lure kids on the ‘fun’ plank.

Gradually, the market for instant noodles began to grow. The company alsdecided to focus on promotions to increase the brand awreness. In the initial yea Nestle promotional activities for Maggi included schemes offering gifts( such toys and utensils) in return for empty noodles pack.

According to analysits the focus on promotion turned out to be the single largefactor responisible for Maggi’s rapid acceptance. Nestle\’s Managers utiliz

promotions as measured to meet their sales target. Gradually, sales promotio became a crutch for Maggi noodles sales. Later many of the Maggi’s extensioalso made considerable use of promotional schemes.



The focus of all Maggi’s extensions was more on below the line activities raththan direct communication. In addition to promotional activities, Maggi associatitself with main stream television programme and advertised heavily on kid

programme and channels.After its advertisements with taglines like “mummi bhookh lagi hai, bas dminute” and fast to cook good to eat Maggi’s popularity became highly attributto its “extremely high appeal to children”. As a result, Maggi’s annual growreportedly touched 15% during its initial years.

Maggi’s Brand Extension:

In 1998, Nestle launched Maggi’s first brand extension, Maggi soup. At this stagThere was no organized packaged soup market in India. Nestle planned to createmarket for packaged soup as it felt the category had a lot of potential. Howeve

according to analyst, the company had introduced soups only to cash in on thMaggi’s brand name, and was never very serious about the segment.

In 1993, “Sweet Maggi”, the first variant of Maggi noddles was launched. Thcompany supported the launch with a huge advertisement outlay that amounted 75% of the total yearly expenditure on the Maggi brand. However, the produ

failed to generate the desired sales volume and Nestle was forced to withdraw At the end of the year, Maggi noodles was generating sales volume of around 50tonns and remained a loss making proposition for Nestle.



To boost sales, Nestle decided to reduce the price of Maggi noodles. This wamade possible by using thinner and cheapeer packaging material, the company alintroduced “money saver multi packes” in the form of 2-in-1 pack and 4-in

packs. As a result volume increases phenomenally to 9700 tonnes in 1994 anfurther to 13000 tonnes in 1995. Maggi’s euphoroia was, however, short lived, sales stagnated in 1995 at the previous years level. With soup business beinthreatned by a new entrant “Knorr soups” launched in 1995, offering 10 flavoagainst Maggi’s 4 the company started rethinking its strategies towards the soumarket.

In order to stretch Maggi’s brand to include Indian ethenic foods the company tiup with a Pune based chordia foods to launch pickles under the year 1995. Thcompany also tied up with Indian foods fermentation (IFF), a Chennai based focompany to market popular south Indian food preparation such as sambher, dosvada and spices in consumer packs in Dec 1995. The company reportedly saw a of untabbed potential in the market for ready to use south Indian market.

In 1996, products from these two ventures received lukewarm response from tmarket; sales were rather poor in the regions in which they were aunched. Analyattributed the failure of these Maggi extensions to the fact that Nestlé seemed to particularly bad at dealing with traditional Indian product categories. Mag

noodles performed badly in 1996. Despite slow sales in the previous two year Nestlé had set a sales target of 25,000 tonnes for the year. However, Maggcouldn’t cross even 14,000 tonnes. Adding to the company woes was the failureMaggi Tonite’s Special, a range of cooking sauces aimed at providing ‘restauran



like-taste’ to food cooked at home. The range included offerings such as ButtChicken gravy and tomato sauce for pizzas.

Understanding these failures, and buoyed by the fact that the Maggi brand final broke even in 1997, Nestlé continued to explore new options for leveraging on t brand equity of Maggi noodles. The company realized that the kids who had growup on Maggi noodles had become teenagers by the late 1990s. As they associatthe product with their childhood, they seemed to be moving away from it. To lu back these customers and to explore new product avenues, Nestlé launched ‘Mag

Macaroni’ in July 1997.

According to analysts, Maggi Macaroni was launched partly to deal with thgrowing popularity of competing noodles brand Top Ramen. Maggi Macaroni wmade available in three flavors, Tomato, Chicken, and Masala. The companexpected to repeat the success of Maggi noodles with Maggi Macaroni. As wimost of its product launches, Maggi Macaroni’s launch was backed by a multmedia advertisement campaign including radio, television, outdoors and primedia with the tagline, ‘Tum Roz Baby.

The product’s pricing, however, proved to be a major hurdle. A 75-gm Mag

Macaroni pack was priced at Rs 11, while a 100-gm noodles pack was available Rs 9. According to analysts, Nestlé failed to justify this price-value anomaly customers, who failed to see any noted value addition in Maggi Macaro(packaging and flavor variants were similar to those of Maggi noodles). addition, customers failed to see any significant difference between Mag



Macaroni and the much cheaper macaroni that was sold by the unorganized sect players. The biggest problem however was the taste of the new product. Sinmacaroni is thicker than noodles, Maggi Macaroni did not absorb the tastemak

well and consequently did not taste very good. The interest generated by thnovelty of the product soon died out and sales began tapering off. Eventuall Nestlé had to withdraw Maggi Macaroni completely from the market.

Nestlé had not even recovered from Macaroni’s dismal performance, when it leato its horror that Knorr had dethroned Maggi as the leader in the soup segme

(end of 1997). The only saving grace for Maggi seemed to its ketchups and saucwhich were turning out to the ‘rare’ successful extensions of Maggi. The products were supported by a popular advertisement campaign for the Maggi H& Sweet sauce brand. These humorous advertisements, featuring actors PankKapoor and Javed Jafri, used the tagline, ‘It’s different.’ However, during mi1997, HLL began promoting its Kissan range of sauces aggressively and launchvarious innovative variants in the category.

Nestlé responded with a higher thrust on advertising and different size packs different price points. Though Kissan gained market share over the next few yeaMaggi was able to hold on to its own market share. Meanwhile the operationcosts of Maggi noodles had increased considerably, forcing the company

increase the retail price. By early 1997, the price of a single pack had reached R10. Volumes were still languishing between 13,000-14,000 tonnes.



MAGGI :- Pricing and Product Development:

It was at this point in time that Nestlé decided to change the formulation of Mag

noodles. The purpose was not only to infuse ‘fresh life’ into the brand, but alsosave money through this new formulation. The company used new noodl processing technology, so that it could air-dry instead of oil-fry the noodles. Thtastemaker’s manufacturing process was also altered.

As a result of the above initiatives, costs reportedly came down by 12-14%. T

cook the new product, consumers had to add two cups of water instead of one-ana-half cups. The taste of the noodles was significantly different from what it usto be. The customer backlash that followed the launch of the new noodles too Nestlé by surprise. With volumes declining and customer complaints increasinthe company began to work on plans to relaunch ‘old Maggi’ to win baccustomers. In addition, in 1998, Nestlé began working out a strategy to regaMaggi’s position in the soup segment.

To counter the Knorr threat, the company relaunched Maggi soups under th‘Maggi Rich’ brand in May 1998. The soups were not only thicker in consisten



than those produced earlier, the pricing was also kept competitive and th packaging was made much more attractive. However, Knorr took Nestlé bsurprise by launching one-serving soup sachets priced as low as Rs 4. HLL to

launched two-serving sachets of Kissan soup priced at Rs 7. As Maggi did nhave any offerings in this price-range, it lost a huge portion of its market shareKnorr.

The relaunch prompted market observers to compare Nestlé’s move with US sodrinks major Coca-Cola’s ‘New Coke’ fiasco. However, the company disagree

“It’s a hard-5 nosed strategy, that mixes nostalgia with the consumer’s voice preference for the product it has been bred and rought up on. The reintroduction Nestlé’s acknowledgement of the loyalty of the Indian mother and the child to toriginal product.” By May 1999, Nestlé’s decision to bring back the ‘old Maggseemed to have paid off. Two months after the relaunch, the monthly average salof Maggi noodles n the northern region rose 50% in comparison to the previoyear. In July 1999, ‘Maggi’ the brand, was promoted as the biggest brand Nestlé’s portfolio of brands in India, overtaking brands such as Nestum anCerelac. Nestlé believed that Maggi had immense potential as it was a ver‘flexible’ brand under which regional variants could be introduced to meet variomarket needs.

Company sources claimed that with reasonable price points and innovativ products, Maggi could emerge as a top brand and a major growth driver for tcompany.



To further support the brand, Nestlé carried out various promotional activities well. These included the August 1999 ‘Fun-Dooz’ campaign and Jungle Jackpcampaigns. 6 As a result of the above initiatives, Nestlé claimed to have corner

an 81% market share of the 20,000 tonnes noodles market by the end of 199 Nestlé sources claimed that Maggi noodles outsold the competition four times ovand that more than four Maggi noodle cakes were consumed every second in tcountry.

PRODUCT VARIENTS

The product mix of Maggi is divided into various categories defined below. Th

company has launched various products under each category as mentioned below

Noodles

• Maggi 2-Minute Noodle ( Masala , Chicken, Curry and Tomato)• Maggi Dal Atta Noodles ( Sambhar taste)•

Vegetable Atta Maggi Noodles• Maggi Rice Noodles (Lemon Masala, Chilly Chow and Shahi Pulao)• Maggi Cuppa mania (Masala yo, Chilli chow yo)



– Chinese Hot & Sour Vegetables

Maggi pichkoo:-

Sauces

• Teekha masala• Tomoto chatpat• Imli khata mitha• Tomato ketchup• Hot and sweet• Tomato pudina• Ginger, Garlic & Coriander • Maggi Oriental Chilli Garlic



• Ginger, Garlic & Coriander

Maggi soup sanjivni

• Amla• Badam• Spinach• Dal•

Tomato

Maggi Bhuna M asala

• Bhuna masala for gravy dishes



• Bhuna masala for vegetable dal

Maggi magic cubes

• Chicken• Vegetarian masala



MARKET SHARE

According to the 2010 data by market research firm Nielsen Nestle's Maggi is losing market share on a monthly basis to newer entrants suchGlaxoSmithKline's (GSK) Horlicks Foodles, Hindustan Unilever's (HUL) KnoSoupy noodles, Big Bazaar's Tasty Treat, Top Ramen and several other small

players.

The data shows that Maggi's share of instant noodles, on an all-India basis, acrourban markets, has slipped consistently between December '09 to July '10. WhiMaggi instant noodles (minus vermicelli) had a 90.7% share in December '09, tshare dropped to 86.5% in July '10 on an all-India basis.

INTRODUCTION TO MAGGI BRAND EQITY:-

Brand Equity is the value and strength of the Brand that decides its worth. It canalso be defined as the differential impact of brand knowledge on consumersresponse to the Brand Marketing.Brand Equity exists as a function of consumerchoice in the market place. The concept of Brand Equity comes into existence



when consumer makes a choice of a product or a service. It occurs when theconsumer is familiar with the brand and holds some favourable positive strong andistinctive brand associationsin the memory.

Factors contributing to Brand EquityBrand Awareness:- Brand awarenessis the probability that consumers arefamiliar about the life and availability of the product. It is the degree to whichconsumers precisely associate the brand with the specific product. It is measuredratio of niche market that has former knowledge of brand. Brand awarenessincludes both brand recognition as well as brand recall.

Brand recognition :- is the ability of consumer to recognize prior knowledge of brand when they are asked questions about that brand or when they are shown thspecific brand, i.e., the consumers can clearly differentiate the brand as having being earlier noticed or heard. Whilebrand recall is the potential of customer torecover a brand from his memory when given the product class/category, needssatisfied by that category or buying scenario as a signal. In other words, it refersthat consumers should correctly recover brand from the memory when given a clor he can recall the specific brand when the product category is mentioned. It isgenerally easier to recognize a brand rather than recall it from the memory.

Brand Associations:- Brand association is anything which is deep seated incustomer’s mind about the brand. Brand should be associated with something positive so that the customers relate your brand to being positive. Brandassociations are the attributes of brand which come into consumers mind when th

brand is talked about. It is related with the implicit and explicit meanings which aconsumer relates/associates with a specific brand name. Brand association can al be defined as the degree to which a specific product/service is recognized withinit’s product/service class/category. While choosing a brand name, it is essential

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that the name chosen should reinforce an important attribute or benefit associatiothat forms it’s product positioning

Brand LoyaltyBrand Loyalty is a scenario where the consumer fears purchasing

and consuming product from another brand which he does not trust. It is measurethrough methods like word of mouth publicity, repetitive buying, price sensitivitycommitment, brand trust, customer satisfaction, etc.

Perceived Quality:refers to the customer’s perception about the total quality of the brand. While evaluating quality the customer takes into account the brands performance on factors that are significant to him and makes a relative analysis

about the brand’s quality by evaluating the competitors brands also. Thus qualitya perceptual factor and the consumer analysis about quality varies. Higher perceived quality might be used for brand positioning. Perceived quality affect the pricing decisions of the organizations. Superior quality products can be charged a price premium. Perceived quality gives the customers a reason to buy the producIt also captures the channel member’s interest. For instance - American Express.

Other Proprietary Brand Assets:Patents, Trademarks and Channel Inter-relations are proprietary assets. These assets prevent competitors attack on theorganization. They also help in maintaining customer loyalty as well asorganization’s competitive advantage.

Brand equity is the added value endowed to products and services. This value m be reflected in how consumers think feel and act with respect to the brand as was the prices market share and profitability that the brand commands for the firBrand equity is an important intangible asset that has psychological and financivalue to the firm. Marketers and researchers use various perspectives to stud brand equity.

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Maggi is the brand owned by Nestle. Nestle India launched Maggi 2 minutenoodles, an instant noodles, in the year 1982. Maggi noodles became an instant hand found an unmissable feature in the middle class Indian household. The produ

was so popular, that Maggi did to noodles in India, what Xerox did to photocopieworldwide.

Nestle, having the first mover advantage, was able to maintain market leadershipuntil the early 2000s even. The Maggi story is also a lesson for marketers whowish to extend a band name successfully across different products. Maggi hadlaunched soups, ketchup, and sauces to leverage the brand equity by the year 199Later Nestle also forayed into other food segments like pickles, using the Maggi brand, but it was unsuccessful and the products were dumped. Maggi alsointroduced a range of pastas in the year 2009 to complement the consumers needfor variety in snack foods.

In the early 80s Maggi was positioned as a quick to cook noodles. The tagline uswas “Fast to Cook. Good to Eat”. The same theme continued in the 90s as well, bthe communication was a little different. In the 90s the communication changed

from the kids coming home hungry and asking their mother for something, to thekids saying that they were hungry and they wanted Maggi quickly. Thisemphasized the brand’s popularity, and also reflected on the role children played influencing buying decisions (subtly).

In the year 2006, Nestle began rebranding itself as a Health and Wellnesscompany. In line with this, Maggi products were promoted with the tagline “Tast

bhi, Health bhi”. This has been done across the product range of Maggi. Currenltthe following are the products which are being marketed by Nestle India, under tMaggi brand

maggi Brand image :-



Brand imageis the current view of the customers about a brand. It can be definedas a unique bundle of associations within the minds of target customers. It signifiwhat the brand presently stands for.It is a set of beliefs held about a specific

brand. In short, it is nothing but the consumers’ perception about the product. It ithe manner in which a specific brand is positioned in the market. Brand imageconveys emotional value and not just a mental image. Brand image is nothing buorganization’s character. It is an accumulation of contact and observation by peopexternal to an organization. It should highlight an organization’s mission and visito all. The main elements of positive brand image are- unique logo reflectingorganization’s image, slogan describing organization’s business in brief and branidentifier supporting the key values.

Brand image is the overall impression in consumers’ mind that is formed from alsources. Consumers develop various associations with the brand. Based on theseassociations, they form brand image. An image is formed about the brand on the basis of subjective perceptions of associations bundle that the consumers have abthe brand. Volvo is associated with safety. Toyota is associated with reliability.

The idea behind brand image is that the consumer is not purchasing just the product/service but also the image associated with that product/service. Brandimages should be positive, unique and instant. Brand images can be strengthenedusing brand communications like advertising, packaging, word of mouth publicitother promotional tools, etc.

Brand image develops and conveys the product’s character in a unique manner

different from its competitor’s image. The brand image consists of variousassociations in consumers’ mind - attributes, benefits and attributes. Brandattributes are the functional and mental connections with the brand that thecustomers have. They can be specific or conceptual. Benefits are the rationale forthe purchase decision. There are three types of benefits: Functional benefits - wh



do you do better (than others ),emotional benefits - how do you make me feel better (than others), and rational benefits/support - why do I believe you(more thothers). Brand attributes are consumers overall assessment of a brand.

Brand image has not to be created, but is automatically formed. The brand imageincludes products' appeal, ease of use, functionality, fame, and overall value. Braimage is actually brand content. When the consumers purchase the product, theyare also purchasing it’s image. Brand image is the objective and mental feedbackof the consumers when they purchase a product. Positive brand image is exceedinthe customers expectations. Positive brand image enhances the goodwill and branvalue of an organization.

NIL conducted a research, which revealed that it was children who liked the tasteof Maggi noodles and who were the largest consumers of the product. After this, NIL shifted its focus from working women and targeted children and their mothethrough its marketing. NIL's promotions positioned the noodles as a 'convenience product', for mothers and as a 'fun' product for children. The noodles' tagline, 'Fato Cook Good to Eat' was also in keeping with this positioning

Maggi Brand Association

Brand Associations are not benefits, but are images and symbols associated with brand or a brand benefit. For example- The Nike Swoosh, Nokia sound, Film Staas with “Lux”, signature tune Ting-ting-ta-ding with Britannia, Blue colour withPepsi, etc. Associations are not “reasons-to-buy” but provide acquaintance anddifferentiation that’s not replicable. It is relating perceived qualities of a brand toknown entity. For instance- Hyatt Hotel is associated with luxury and comfort;BMW is associated with sophistication, fun driving, and superior engineering.



Most popular brand associations are with the owners of brand, such as - Bill Gateand Microsoft, Reliance and Dhirubhai Ambani.

Brand association is anything which is deep seated in customer’s mind about

the brand. Brand should be associated with something positive so that thecustomers relate your brand to being positive. Brand associations are the attributeof brand which come into consumers mind when the brand is talked about. It isrelated with the implicit and explicit meanings which a consumer relates/associatwith a specific brand name. Brand association can also be defined as the degree twhich a specific product/service is recognized within it’s

product/service class/category. While choosing a brand name, it is essential ththe name chosen should reinforce an important attribute or benefit association thforms it’s product positioning

Brand associations are formed on the following basis:• Customers contact with the organization and it’s employees;• Advertisements;• Word of mouth publicity;• Price at which the brand is sold;• Celebrity/big entity association;• Quality of the product;• Products and schemes offered by competitors;•

Product class/category to which the brand belongs;• POP ( Point of purchase) displays; etc

Positive brand associations are developed if the product which the brand depicts durable, marketable and desirable. The customers must be persuaded that the bra possess the features and attributes satisfying their needs. This will lead to



customers having a positive impression about the product. Positive brandassociation helps an organization to gain goodwill, and obstructs the competitor’sentry into the market.

Maggi Brand Recall :-

Brand Recall is the extent to which a brand name is recalled as a member of a brand, product or service class, as distinct from brand recognition.

Common market research usage is that pure brand recall requires "unaided recallFor example a respondent may be asked to recall the names of any cars he mayknow, or any whisky brands he may know.

Some researchers divide recall into both "unaided" and "aided" recall. "Aidedrecall" measures the extent to which a brand name is remembered when the actua brand name is prompted. An example of such a question is "Do you know of the"Honda" brand?"

In terms of brand exposure, companies want to look for high levels of unaidedrecall in relation to their competitors. The first recalled brand name (often called

"top of mind") has a distinct competitive advantage in brand space, as it has thefirst chance of evaluation for purchase.

OBJECTIVES

➢ To understand the influence of Maggi as a brand on consumers mind set.

➢ Sources of Brand equity of Maggi like Brand awareness, Brand imageBrand association, Brand recall



➢ To understand the Brand performance of Maggi products.

➢ To understand Brand Imagery, Brand Quality perceived by customers,➢ Brand Extension of Maggi in terms of product diversity.➢ Analyse the repositioning of Maggi brand as a “Healthy product” and th

consumers perseverance towards the same.

RESEARCH METHODOLOGY

The research method will be descriptive research. Each respondent will binterviewed through a Questionnaire. The sample will be selected by a simprandom sampling method.



Primary data

This study involves data collection through questionnaire from differenhouseholds from Navi- Mumbai. Primary research would conduct in select

localities of Navi-Mumbai and nearby areas where the responses of consumewould be recorded through a designed questionnaire.

Secondary data

The research conducted as a part of our study would include Primary as well Secondary research. Secondary research would include to gather informatioregarding various aspects of Brand management through Internet , Journa

company reports , etc.

RESEARCH PLAN



Research Design:

The research will be carried out in the form of questionnaire which will be doneareas near to Navi Mumbai. The population has been segmented on the basis

salary Group and Age Group.

Sample Design:

The target population for research is households. The sample will be selected bysimple random sampling method.

Sample Size:

The sampling unit is 50 which are divided as follows: Number of respondents

50

Age-group 10 - 45

Monthly HouseholdIncome

15000 - 45000 INR

Survey Locations Navi-Mumbai

Salary Group No income25K -40K

40K -60K

60K -75K

Number of Respondents 10 20 30

Age Group 10 - 25 25 - 35 35 – 45

Number of Respondents 20 30 10



DATA ANALYSIS:-

Brand Associations:



Sources of Brand equity like brand association of Maggi as a Brand was founhighest with the age group of 10-25 and the product category associated withwas the noodles category. Consumers in the age segment of 10-25 could easi

relate Maggi to noodles.

Brand Association according to income

In the income wise category the brand association was highest with the incomgroup of 25k-40k were more than 40 respondents associated Maggi with noodleThe implications from the findings discussed above seem that Maggi has goo



brand association in terms of noodles. Consumers presume Maggi as Noodles athe company’s philosophy of projecting the brand as noodles brand seem to bviable in this regard.

Brand Recall:



From the given below it seems a clear trend that Maggi has a good brand recall compared to its competitors like Top Ramen, Surya noodles etc. Consumers coueasily associate Maggi with noodles. In the Age wise category, the respondents

the age group of 25-45 were highly cautious of Maggi brand and seemed to bconsuming Maggi more as compared to other age segments.

Brand Recall according to gender



In the gender wise category the company’s strategy of positioning of Maggi branfor working women seems to be adaptive and gaining shape as women respondenhad a brand recall more than male.

Brand Awareness:

From the responses of the respondents in the conducted survey it was evident thMaggi’s Brand awareness was very high in terms of noodles were around 65 %the respondents associated maggi as noodles and only 20 % of the respondenknew ,Maggi as a Ketchup, 9% as soup etc.



Brand Awareness according to the age

The trend indicated that Maggi’s brand extension strategy to increase its basket h

not been quite successful in other food segments .This might be because of thlarger share of market captured by the competitors hence Maggi has a hig potential in markets like ketchup, soups etc.



Repositioning Maggi as a healthy product:

The company’s strategy to reposition Maggi as a “Healthy product” was not fou

conducive as per the survey results. The survey showed that consumers did n perceived Maggi as a healthy product with 53% of them consumed Maggitraditional products as compared to the rest who consumed other variants oMaggi’s brand that were positioned as “Healthy products”.



Perception of Maggi Noodles

From the pie chart given below it can be clearly seen that Maggi is still perceivas a non healthy products by the consumers and in spite of the efforts to positioMaggi as a healthy product by the company the brand is still perceived as a “reato eat” food brand that has a high market share in the noodle category in India.

Perception of Maggi Noodles

As a HealthyProduct40%

As a nonHealthy Product

60%



Perception of Maggi Product

From the pie chart given below it can be clearly seen that Maggi is still perceivas a junk food by the consumers and in spite of the efforts to position Maggi ashealthy product by the company the brand is still perceived as a “ready to eat” fo brand. and also very less consumers prefer magi for its taste and fun eating.



SWOT ANALYSIS OF MAGGI BRAND

STRENGTH

– Market leader in their segment – Strong brand loyal consumer base – Wide range of distribution channel – Product ac – Product cording to the need of Indian consumer – Innovative

WEAKNESS

– Product are dependent on each other – Not so much presence in rural market

OPPORTUNITY

–Increasing number of working youth – Product has been acceptable in youth category – Shift to rural market – Changing preference of consumer towards Chinese food and fast food.



– Can foray into other food markets with its strong Brand name

THREAT

– Price war with competitors. – Strong presence of regional competitors – Consumers don’t perceive it as a “Healthy Product”

The SWOT analysis of Maggi brand clearly indicates the strengths of Maggi as aBrand in Indian market. The Brand was found to be a leader in its category of Noodles, with strong customer loyalty. Intensive distribution of Maggi as a Branwas seen in urban areas of the country. The major threats of the brand as shown ithe figure below indicates that Maggi has made several attempts to revamp itself a ‘Healthy Product” but till date its perseverance towards the tag line is low by thconsumers. The brand is in the growth stage of product life cycle with a stronginclination towards the maturity stage.



STPD ANALYSIS OF MAGGI BRAND

Segmentation:Market Segmentation divides the heterogenous market into

homogenous groups of customers who share a similar set of needs/wants and cou be satisfied by specific products. Maggi Brand have segmented the market on the basis of lifestyle and habits of URBAN FAMILIES.

Target: Market Targeting refers to evaluating and deciding from amongst thevarious alternatives, which segment can be satisfied best by the company. The

Maggi Brand have mainly targeted the Kids, Youth, Office Goers & WorkingWoman which falls into the category of “convenience-savvy time misers” whowould like to get something instant and be over with it quickly.

Positioning:Market Positioning is the act of designing the company’s offeringsand image to occupy a distinctive place in the minds of the target market. The goof positioning is to locate the brand in the minds of consumers to maximise the potential benefit to the firm. Maggi has positioned itself in the SNACKS categorand not in the meal category since Indians do not consider noodles as a proper fo



item. Therefore Maggi have developed its brand image of instant food productswith positioning statements such as “2 minutes noodles” and “Easy to cook, goodto eat”.

Differentiations:Points-of-difference (PODs) are attributes or benefits consumerstrongly associate with a brand, positively evaluate and believe they could not finto the same extent with a competitive brand. The Maggi Brand have alsodifferentiated its brand image from its competitors in terms of taste, flavours and packaging. Maggi have launched wide varieties of products in different flavours

which can attract larger set of customers. Maggi products are also available indifferent sizes catering to different customer needs.



CUSTOMER BASED BRAND EQUITY PYRAMID (CBBE)

Maggi’s customer based brand equity pyramid seems to be equally strong on lefthand side and right hand side, it is also strong from bottom to top enjoying thehighest brand awareness of any fast food noodle brand in India as well as repeat purchase rate and high customer loyality.



BRAND PRISM OF MAGGI



CONCLUSION

The food processing business in India is at a nascent stage. Currently, only about10% of the output is processed and consumed in packaged form thus highlightinghuge potential for expansion and growth. Traditionally, Indians believe inconsuming fresh stuff rather then packaged or frozen, but the trend is changing athe new fast food generation is slowly changing.

Riding on the success of noodles, Nestle India, tried to make extensions of th

Maggi brand to a number of products like, sauces, ketchups, pickles, souptastemakers and macaroni in the mid-1990s. Unfortunately, the macaroni an pickles didn’t pick up as expected. The soups and sauces did somewhat fingathering considerable sales volumes and have a satisfactory presence even toda‘Maggi Noodles’ itself faced a bit of difficulty with respect to ‘taste’, and nearlost its position in the minds of Indian consumers in the late 1990s. When Nestchanged the formulation of its tastemaker, the ominous packet that came alonwith Maggi Noodles, a major chunk of consumers were put-off and sales startdropping. Also, Maggi’s competitor ‘TopRamen’ took advantage of the situatioand started a parallel aggressive campaign to eat into Maggi’s market share. Bthe company quickly realised this and went back into making the original formu



coupled with a free sampling campaign. This helped Maggi to win back its loconsumers and pushed up its sales volumes again!

Maggi Today The year 2008 saw India leading in world wide Maggi sales. The brand has grown to an estimated value of Rs 160-170 crore and contributes at lea8–9% to Nestle India’s top line. All the same, some FMCG analysts feel that the brand has not done much to expand the noodles category. Even after 25 years of launch, the size of the instant noodles market is yet quite small at Rs 300 crore. Byes, the parent company, Nestle India Limited has certainly encouraged the brandto enter into other culinary products.

RECOMMENDATION

After the conducted study following recommendations could be sited for MagBrand.

– To gain maximum leverage in terms of profit the company should pa

emphasis on segments with age groups 25-35 and above .Advertisinis the key to success. Targeting these segments will not only enhancthe company’s profit margins but also it will leverage the brand imagof Maggi.



– The company should advertise its products by depicting attributerelated to Health like Nutrition values, % of Vitamins, Proteinsetc.This would help in customers perceiving the product as Healthy.

Foray into other food products like chips, chocolates etc under its sole brand namwould not only help in Brand extension but will also enhance Maggi’s marketshare.



SUGGESIONS :-

– Nestlé India’s have to set objective to manufacture and market thcompany’s products in such a way so as to create value that can be sustaineover the long term for consumers, shareholders, employees and busines partners.

– Maggi’s should have to aims to create value for consumers that can bsustained over the long term by offering a wide variety of high quality, saf

food products at affordable prices.

– The company should continuously focuses its efforts to better understand thchanging lifestyles of modern India and anticipate consumer needs in ordto provide convenience, taste, nutrition and wellness through its producofferings.



LIMITATIONS:

The present study is confined to a minimal sample size and may not reflect thopinion or response of the entire population in general. The results of our study aentirely confined to the responses of the Navi-Mumbai consumers and migdeviate in terms of actual population as a whole. Recommendations given after tstudy are entirely dependent on the questionnaire and the secondary analysis doin the report.



BIBLIOGRAPHY :-

en.wikipedia.org/wiki/Maggi

en.wikipedia.org/wiki/Maggi _noodles

www. maggi.in/

www.foodproductiondaily.com/

www.nestle.com ›Home› Media› News & Features

http://www.maggi.in/




http://www.foodproductiondaily.com/

http://www.google.co.in/url?url=http://www.nestle.com/Pages/Nestle.aspx&rct=j&sa=X&ei=NE4NT-z2MYanrAeYmJGTBA&ved=0CGwQ6QUoADAG&q=WEBSITE+RELATED+TO+BRANDING+MAGGI&usg=AFQjCNE8iXtchAFawnhb6H3pWm2H-OJWhw

http://www.google.co.in/url?url=http://www.nestle.com/Media/Pages/Media.aspx&rct=j&sa=X&ei=NE4NT-z2MYanrAeYmJGTBA&ved=0CG0Q6QUoATAG&q=WEBSITE+RELATED+TO+BRANDING+MAGGI&usg=AFQjCNF80uinXO47A30D0KK2Skegh2rovw

http://www.google.co.in/url?url=http://www.nestle.com/MEDIA/NEWSANDFEATURES/Pages/NewsAndFeatures.aspx&rct=j&sa=X&ei=NE4NT-z2MYanrAeYmJGTBA&ved=0CG4Q6QUoAjAG&q=WEBSITE+RELATED+TO+BRANDING+MAGGI&usg=AFQjCNHZpl2-lFoEaHXduDoE3IP5cpvAZw


http://www.foodproductiondaily.com/

http://www.google.co.in/url?url=http://www.nestle.com/Pages/Nestle.aspx&rct=j&sa=X&ei=NE4NT-z2MYanrAeYmJGTBA&ved=0CGwQ6QUoADAG&q=WEBSITE+RELATED+TO+BRANDING+MAGGI&usg=AFQjCNE8iXtchAFawnhb6H3pWm2H-OJWhw

http://www.google.co.in/url?url=http://www.nestle.com/Media/Pages/Media.aspx&rct=j&sa=X&ei=NE4NT-z2MYanrAeYmJGTBA&ved=0CG0Q6QUoATAG&q=WEBSITE+RELATED+TO+BRANDING+MAGGI&usg=AFQjCNF80uinXO47A30D0KK2Skegh2rovw

http://www.google.co.in/url?url=http://www.nestle.com/MEDIA/NEWSANDFEATURES/Pages/NewsAndFeatures.aspx&rct=j&sa=X&ei=NE4NT-z2MYanrAeYmJGTBA&ved=0CG4Q6QUoAjAG&q=WEBSITE+RELATED+TO+BRANDING+MAGGI&usg=AFQjCNHZpl2-lFoEaHXduDoE3IP5cpvAZw



Brand Positioning



Through consumer research, the company (Food Specialities Limited) feltthat the most profitable position (for Maggi) would be as a tasty, instantsnack, made at home and initially aimed at children. The target market was

the in-home segment of the very substantial snack category. This positioningdecision automatically determined the competition which included all snack products in general. These would range from ready to eat snacks – biscuits,wafers and peanuts – to ready prepared snacks such as samosas. All werebought out items.”“Traditional pasta products (Chinese noodles and macroni) were consideredto be near. Competitors forming a rapidly growing product group. But theywere invariably used for meals, requiring a fair amount of cooking time andgarnishing was essential.”“Maggi Noodles was launched in Delhi in January 1983 and it became anovernight success.” The reasons?Maggi Noodles, as market results show, found a vacant strong position and saton it as “the good to eat, fast to cook anytime snack.”

Maggi brand extension and repositioning

In May 2006, Nestlé India Ltd. (NIL), a major FMCG company in the country ana subsidiary of the Switzerland-based Nestlé Group, launched a new instant

noodles product called Maggi Dal Atta Noodles (Dal Atta Noodles) under the popular Maggi brand (Refer to Exhibit I for a brief profile of NIL). The Dal Atta Noodles were made of whole wheat and contained pulses, and positioned as a'healthy'instant noodles product that provided 20 percent of the daily RDA of dietary fiber and protein for a child aged between 7 and 9. This was the latest



addition to the range of 'healthy' products NIL had been launching over the early2000s.

NIL offered a variety of culinary products such as instant noodles, soups, sauces

and ketchups, cooking aids (seasonings), etc., under the Maggi brand (Refer toExhibit II for Maggi's product portfolio as of mid-2006). Of these, instant noodlehad been NIL's main product category in the culinary segment since the launch oMaggi 2 Minute Noodles (Maggi noodles) in 1982. Over the years, Maggi noodl became a popular snack food product in India.

During the 1990s, the sales of Maggi noodles declined, and this was attributed partly to the growing popularity of Top Ramen , another instant noodles product.In order to improve sales and attract more consumers, NIL changed theformulation of Maggi noodles in 1997. However, this proved to be a mistake, asconsumers did not like the taste of the new noodles. In March 1999, NILreintroduced the old formulation of the noodles, after which the sales revived. Ovthe years, NIL also introduced several other products like soups and cooking aidsunder the Maggi brand.

However, these products were not as successful as the instant noodles.In the early2000s, Maggi was the leader in the branded instant noodles segment, and thecompany faced little serious competition in this segment. In the early 2000s, NILstarted introducing new 'healthy' products in accordance with the Nestlé Group'sglobal strategy to transform itself into a health and wellness company.

NIL also adopted the same strategy for the Maggi brand with the launch of theMaggi Vegetable Atta Noodles (Vegetable Atta Noodles), a 'healthy' instantnoodles product made of whole wheat flour and vegetables (instead of refinedflour), in 2005. The Dal Atta Noodles were another variant of Maggi's healthy



instant noodles. proved to be a mistake, as consumers did not like the taste of thenew noodles. In March 1999, NIL reintroduced the old formulation of the noodleafter which the sales revived.

Over the years, NIL also introduced several other products like soups and cookinaids under the Maggi brand. However, these products were not as successful as thinstant noodles. In the early 2000s, Maggi was the leader in the branded instantnoodles segment, and the company faced little serious competition in this segmen

In the early 2000s, NIL started introducing new 'healthy' products in accordancewith the Nestlé Group's global strategy to transform itself into a health andwellness company. NIL also adopted the same strategy for the Maggi brand withthe launch of the Maggi Vegetable Atta Noodles (Vegetable Atta Noodles), a'healthy' instant noodles product made of whole wheat flour and vegetables(instead of refined flour), in 2005. The Dal Atta Noodles were another variant of

Maggi's healthy instant noodles.

NIL introduced the Maggi brand to Indian consumers when it launched Maggi 2Minute Noodles, an instant food product, in 1982 (Refer to Exhibit III for thehistory of the Maggi brand). At that time, Indian consumers were rather conservative in their food habits, preferring to eat traditional Indian dishes ratherthan canned or packaged food. In fact, NIL was trying to create an entirely newfood category, instant noodles, in India. Initially, the company targeted workingwomen on the premise that Maggi noodles were fast to cook and hence offeredconvenience.



However, this approach failed as was evident from the fact that the sales of Maggnoodles were not picking up despite heavy media advertising. To get to the root othe problem, NIL conducted a research, which revealed that it was children who

liked the taste of Maggi noodles and who were the largest consumers of the product. After this, NIL shifted its focus from working women and targetedchildren and their mothers through its marketing. NIL's promotions positioned thnoodles as a 'convenience product', for mothers and as a 'fun' product for childrenThe noodles' tagline, 'Fast to Cook Good to Eat' was also in keeping with this positioning

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