The Maggi Brand in India: Brand Extension and Repositioning

            
 
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Case Details:

Case Code : MKTG144
Case Length : 15 Pages
Period : 1982-2006
Organization : Nestlé India Ltd.
Pub Date : 2006
Teaching Note :Not Available
Countries : India
Industry : Packaged foods

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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Background Note



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

However, this approach failed as was evident from the fact that the sales of Maggi noodles were not picking up despite heavy media advertising. To get to the root of the 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 targeted children and their mothers through its marketing. NIL's promotions positioned the noodles as a 'convenience product', for mothers and as a 'fun' product for children. The noodles' tagline, 'Fast to Cook Good to Eat' was also in keeping with this positioning.



NIL aggressively promoted Maggi noodles through several schemes like distributing free samples, giving gifts on the return of empty packs, etc. NIL's advertising too played a great role in communicating the benefits of the product to target consumers.

Through its ads, NIL positioned Maggi as a 'fun' food for kids which mothers could prepare easily. Taglines like 'Mummy, bhookh lagi hai' (Mom, I'm hungry), 'Bas 2-Minute,' (Only 2 minutes) and 'Fast to Cook Good to Eat' effectively communicated the product's benefits to target consumers.

These ads had become so popular that the tagline 'Bas 2-Minute' immediately reminded Indian consumers of Maggi noodles even several years after the ads were taken off the TV. Maggi's first product extension was Maggi instant soups launched in 1988. With the launch of Maggi soups, NIL had become a pioneer in the organized packaged soup market in India...

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8] Though Nestlé had launched seasoning cubes under the Maggi brand in India in 1973, the product had failed to make a significant impact on the market and was discontinued.

 

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