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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)

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Index

Page No. Executive Summary 3 Brief History of the brand & its Evolution over time 5

Instruments of Data Collection to measure :

� Quantitative Research Model 7 � Qualitative Research Model 12

Presentation of findings and conclusions for:

� Quantitative Research Model 13 � Qualitative Research Model 22

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Executive Summary:

Brand image is the measure of customer’s view of the brand. We have chosen Maggi noodles as our brand to measure the brand image.

The methods used for measuring brand image are

x Brand Asset Valuator x Laddering Method

Brand Asset Valuator:

Instrument for data collection Questionnaire Sample Size 33

The Brand Asset Valuator, a proprietary tool developed by advertising agency Young & Rubicam, measures Brand Image by applying four broad dimensions: Differentiation, Relevance, Esteem, and Knowledge. Brand Asset valuator tells where the brand stands now and how does the future look like.

The current strength of the brand is measure by Brand Stature, which is sum of knowledge and esteem of the brand and the potential of the brand is measured by Brand Vitality, which is the sum of differentiation and regard. Brand strength and vitality are plotted on a powergrid to measure the brand image.

Based on the analysis of the survey it is found that Maggi gains highest in Knowledge, Esteem and Relevance and stood second in differentiation. When plotted in power grid Maggi lies in quadrant 1, which means strong brand. Clearly, Maggi stands as leader as of BAV, but Maggi stood second in differentiation, which means for Maggi to continue as a leader in the future it has to work on differentiation.

LADDERING METHOD:

Instrument for data collection Laddering Sample Size 10

Laddering refers to an in-depth, one-on-one interviewing technique used to develop an understanding of how consumers translate the attributes of products into meaningful associations with respect to self, following means-end theory.

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Means-End theory states people choose a product because it contains attributes that are instrumental to achieving the desired consequences and fulfilling values.

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The laddering interview reveals people attribute noodles to the following values: Self Esteem, Sense of belonging, Accomplishment & Responsibility. Many of the attributes lead to accomplishment and self esteem values. The main attributes that Maggi should concentrate on are: Instant preparation, Convenience, health, taste & variety. Based on the quantitative survey it is found Maggi is leader at all the attributes except health. Therefore, the positioning of Maggi noodles should be maintained by keeping these end values.

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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 famous for the 2 minutes Noodles is today an umbrella brand in a category that it created for itself in the packaged food segment in India largely because of its first 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 for Maggi quickly. Maggi’s first 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 different taste, it proved to be a disaster as the customers did not like the taste of the new Maggi and because of which they spend crores of rupees to relaunch the 'old maggi' with the old taste. By 2001 Maggi again became the leader in the segment of instant noodles and at this time they had a product range which consisted of Maggi 2 minute Noodles, Maggi Sauces and Ketchup, Maggi Pickles and Maggi Soups. In 2004, NIL roped in Preity Zinta (Zinta), a famous Indian actress to endorse Maggi noodles in order to strengthen the brand's image.(Traditionally,Maggi did not opt for celebrities and the ads usually featured mothers and kids.) The Ad was only made to promote the small packs of Maggi. In 2005 Nestle made a very smart move. Maggi repositioned it as health and taste food products. It knew that although kids love noodles, the parents were bothered about the health aspect of Noodles which was made of Maida. Hence Maggi launched Maggi Atta Noodles with the baseline " taste bhi health bhi" .With the introduction of Maggi Atta even the parents were happy consuming it.The changing preferences of Indian consumers added to the success of Maggi’s vegetable Atta Noodles as they were increasingly accepting instant food products as a part of 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

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Maggi 2 Minute Noodles

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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

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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 four broad dimensions: Differentiation, Relevance, Esteem, and Knowledge. The 4 dimensions: Differentiation measures the degree to which a brand is seen as different from others. It is the ability for a brand to be distinguished from its competitors. Relevance is the brand’s appeal. If 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 reflects its popularity and perceptions of 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 of all the marketing and communications efforts and experiences consumers have had with a brand. Some brands makes you feel like you know the brand as you would a close friend. This is called knowledge. Relevance + Differentiation = Brand Strength Esteem + Knowledge = Brand Stature Brand differentiation and relevance combine to determine “brand strength”. These two pillars point to the brand’s future value, rather than just reflecting its past. Esteem and knowledge together create “brand stature”, which is a barometer of its past performance.

Rationale: A BAV can be used to: ʊ Assess brand health ʊ Assess strategy payoff ʊ Assess brand meaning ʊ Assess positioning ʊ Benchmark the brand ʊ Evaluate partnership opportunities ʊ Guide brand architecture ʊ Evaluate financial growth

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ʊ Allocate resource

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DATA COLLECTION

Research Instrument

Questionnaires

Sample Details:

Sample Size: 33

Age Bracket: 20-30

Questionnaire�

�1. What are the various brands of noodles you are aware of?

2. Identify the various brand of noodles:

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3. Identify the given taglines with their respective brands:

4. 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:

5. Which brand delivers their brand’s promise most? (scaling 6 to 1, where 6 being the highest and 1 being the lowest)

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6. 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:

7. From the brand listed below which brand do you think have similar offerings? If any

8. Which attributes are important for you in noodles: (tick the ones which are important for you)

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9. Which brand of noodles do you associate with the above chosen attributes? (Tick under the name of the brand )

10. Are you aware about the concept of “Meri maggi mein 2 min ki khushiyan” (Your experience with the brand)? Yes:

No:

11. Kindly indicate your degree of agreement for the statements given below about “Meri maggi 2 min mein khushiyan”.

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Instruments of Data Collection to measure Qualitative Research Model

Reynolds and Gutman’s “LADDERING METHOD”

Laddering refers to an in-depth, one-on-one interviewing technique used to develop an understanding of how consumers translate the attributes of products into meaningful associations with respect to self, following 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 fulfilling values (the ends) The common generic means-end chain, therefore, consists of 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%

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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 for. Brands like Knor soupy noodles, sunfeast yippee,wai-wai,horlicks foodles & top raman are taken as competitors to measure the brand awareness of magi noodles.

The questions asked to measure brand awareness are:

“What are the various brands of noodles you are aware of?”

“Identify the various brand of noodles: “

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“Identify the given taglines with their respective brands:”

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This question measures the top of the mind recall of all the brands of the noodles.

The second question checks if they are aware about the different brand of noodles by showing them the packs of different brands

The third question asks the respondent to identify the taglines of different brands. Tagline communicates what the product is meant for so if they identify the brand by the tagline that means they have knowledge about the brand and what it is meant for.

The result of Brand knowledge (as per the questionnaire) is as follows:

BRAND�KNOWLEDGE�ATTRIBUTES� FOODLES� KNORR� MAGGI� TOP�RAMEN� WAI�WAI� YIPPEEAWARENESS� 9� 10� 32� 27� 10� 18�PICTURES� 10� 21� 21� 22� 16� 17�TAG�LINES� 13� 27� 24� 11� 11� 15�SUB�TOTAL� 32� 58� 77� 60� 37� 50�PERCENTILE� 16.67� 66.67� 100� 83.33� 33.33� 50�

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100

120 BRAND�KNOWLEDGE

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From the data we can clearly say that Maggi noodles has highest brand awareness vis-à-vis the competitors in all the criteria chosen i.e. top of the mind recall, brand identification 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:

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FOODLES KNORR MAGGI TOP�RAMEN WAI�WAI YIPPEE

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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?

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 five purchase of a product shows the association of a customer with the product and if the customer thinks that the brand delivers its promise it means the customer regards the brand.

The result for the Brand Esteem (as per the questionnaire) is as follows:

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�� �� ��BRAND�ESTEEM� �� �� ��

QUESTIONS� FOODLES KNORR MAGGI�TOP�RAMEN�

WAI�WAI� YIPPEE�

BRAND�PROMISE� 88� 118� 182� 127� 112� 105�LAST�5�CONSUMPTION�OF�NOODLES� 3� 9� 105� 13� 24� 11�SUB�TOTAL� 91� 127� 287� 140� 136� 116�PERCENTILE� 16.67� 50� 100� 83.34� 66.67� 33.33�

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From�the�above�data�we�see�that�Maggi�has�scored�the�highest�in�terms�of�esteem�which�means�the�consumers�regards�the�brand�and�are�highly�associated�with�it.�

BRAND DIFFERENTIATION:

Differentiation is 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

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:

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�� ��Brand�Differentiation� �� �� ��

Attributes� FOODELS� KNORR� MAGGI�TOP�RAMEN� WAI�WAI� YIPPEE�

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FOODLES KNORR MAGGI TOP�RAMEN WAI�WAI YIPPEE

BRAND�ESTEEM

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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��

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From the survey it is found that Knorr has the highest differentiation followed by Foodels and Maggi. One reason why Knorr & Foodels has highest differentiation over Maggi is Knorr & Foodels differentiated by products as soupy & healthy, where as Maggi differentiated as 2 min noodle’s I.e. purely psychographic.

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FOODLES KNORR MAGGI TOP�RAMAN WAI�WAI YIPPEE

Brand�Differentiation

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BRAND RELEVENCE :

Relevance is how well the brand satisfies the need of the customer.

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:

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�� �� �� BRAND�RELEVANCE� �� ��ATTRIBUTES� FOODLES� KNORR� MAGGI TOP�RAMEN� WAI�WAI� YIPPEE�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��

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FOODLES KNORR MAGGI TOP�RAMEN WAI�WAI YIPPEE

BRAND�RELEVANCE

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From the survey we found that Maggi is more relevant in satisfying the needs/ wants of the customers. Some of the reasons Maggi is more relevant than competitors are variety, presence & affordability.

We have asked two questions related to the campaign “Meri Maggi-2 minute me khusiyan” in our questionnaire to check the brand esteem & knowledge of the product.

“Meri Maggi-2 minute me khusiyan” is the latest ad campaign of the noodles brand which aims to find out the emotional attachment of people with the brand as an old brand like Maggi does not only offer product but also some emotional attributes with it.

The following are the questions asked:

Are you aware about the concept of “Meri maggi mein 2 min ki khushiyan” (Your experience with the brand)?

Kindly indicate your degree of agreement for 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 of fun & enjoyment It motivated you to buy the brand more frequently

It gave you a sense of recognition as a customer of the brand

The result of the question asked is as follows:

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28

50

5

10

15

20

25

30Awareness�about�the�campaign

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Aware Unaware

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From the survey we found that most of 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 following table shows the brand stature and brand strength for 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 of relevance and differentiation and Brand strength is calculated as the average of knowledge and esteem)

The above data is plotted in the power grid below:

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1.5

2

2.5

3

3.5

4

4.5

Innovative�and�something�new

Emotional�connection�with�

the�brand

It�increased�your�interest�in�the�

brand

It�is�a�source�of�fun�and�

enjoyment

It�motivated�you�to�buy�the�brand�more�frequently

Rating�of�the�statement�related�to�the�campaign

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Conclusion:

We can clearly see that Maggi has the highest Brand Stature and Brand Strength which means it is the leader followed 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 perform well in future. Horlicks Foodles is high on brand strength but low on stature which means it is an emerging and niche brand. Sunfeast Yippee and Wai-Wai are both low on stature and strength.

The main benefit Maggi is enjoying over the rest is early mover advantage. But, now the competition from HUl’s Knorr, Sunfeast yuppie and Horlicks Foodels, which are differentiating highly on product characteristics such as soupy, non sticky and healthy made Maggi lose race in differentiation. So for Maggi to keep leadership position is highly dependent on its differentiation.

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Presentation of findings and conclusions for the Qualitative Research Model:

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�Hierarchical�Value�Maps�of�MaggiNoodles�

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Varieties�Healthy�No�Oil� Taste� Affordable�Size�Convenient�Instant�

Not�get�bored

Good�for�body�and�health

Fun:Enjoyment�

Satisfy�taste�bud�

Mood�remains�good:Stress�buster�

Concentrate�on�dayͲtoͲday�activities�

Save�money

Easy�to�Carry�

Shortage�of�time�

Studying�late�night�/�Do�office�work�

Saving�time�from�Hectic�Life�

Use�time�for�other�activities

Accomplishment:Get�most�from�life�

Responsibility:Effective�utilisation�of�resources�

Do�Social�Activity�

Self�Esteem:�Self�image�Self�recognition�

Self�Satisfaction�

Sense�of�belonging�

Makes�Life�Easy�

Meeting�Goals�/�Objective�

No�wastage

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ATTRIBUTES� CONSEQUENCES� VALUES�x Instant�x Convenient�

(Easy�to�cook)�x No�Oil�x Healthy�x Taste�x Variety�x Size�

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x Saving�time�from�hectic�life�

x Do�social�activity�x Self�satisfaction�x Shortage�of�time�x Studying�late�night��x Do�office�work�x Meeting�goals/�

objective�x Use�time�for�other�

activities�x Concentrate�on�day�to�

day�activities�x Good�for�body�and�

health�x Mood�remains�good�x Stress�buster�x Fun�/�Enjoyment�x Satisfy�taste�bud�x Not�get�bored�x Easy�to�carry�x Save�money�x Makes�life�easy�x No�wastage�

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x Self�Esteem�x Sense�of�

belonging�x Accomplishment�x Responsibility�

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The�laddering�interview�reveals�people�attribute�noodles�to�the�following�values:�Self�Esteem,�Sense�of�belonging,�Accomplishment�&�Responsibility.�Many�of�the�attributes�leads�to�Accomplishment�and�Self�Esteem.�The�main�attributes�that�should�be�concentrated�are�Instant,�Convenience�(Easy�to�cook),�Health,�Taste�&�value.�From�the�Quantitative�survey�it�is�found�that�Maggi�is�leader�in�all�these�attributes�except�Health,�even�though�it’s�Tagline�is�“Health�bhi�Taste�bhi”.�

Therefore,�Maggi�should�position�its�noodles�based�on�these�end�values.�The�current�advertisements�are�mainly�positioning�Maggi�as�2�min�noodles,�which�are�satisfying�many�of�the�main�attributes�required�for�creating�the�end�values.�Maggi�should�promote�its�tag�line�more�aggressively�for�satisfying�more�end�values�of�the�users.�

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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)

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Index

Page No. Executive Summary 3 Brand Equity 5

Analysis Measure of Brand Equity

� Loyalty 10 � Price Premium � Leveragibility 15

Recommendation 17

Annexure 18

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Executive Summary: Brand equity as a concept has emerged and gained popularity in 1980’s. Until than brand was one of the neglected aspect of total marketing. Lot of the development of in the field of brand management owes to brand equity concept.

Brand Equity is the ability of the brand to manage the changed market conditions. It is dependent on two factors Existing & Changed conditions.

Existing conditions can be found using BAV (Brand Asset Valuator), which we have done in Phase-1 of the project.

Changed market conditions can be broadly classified in to two categories, first being competition and second being Life cycle of the category & Leveragability of the brand.

Competition is subdivided in to four parts

x Loyalty with respect to the competition x Price premia gives whether the brand has flexibility with price x Distribution strengths of all brands

Based on the survey, with sample size of 37 & secondary research following conclusions are drawn.

Conclusions Derived from Analysis:

Loyalty: The preference of Maggi is very high compared to competitors and recommendation by consumers is as high as 94%, which shows the brand has high loyalty. But, from the analysis we found that gravity of the brand is low as compared to focus 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.

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Recommendations:

From the survey & Secondary Research it was found that Loyalty & Distribution network of Maggi is far ahead of competition. But, Increasing competition from Knorr & Yuppie that have good distribution network may hurt Maggi in future. 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 of Poters five forces reveals that category has low entry & exit barriers and the product has many substitutes so it’s better for maggi to leverage it’s brand strength in other category of products. The survey shows that Maggi can leveraged in the categories such as Cookies & biscuits, chips, health drinks & Juices.

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BRAND EQUITY:

History: Brand equity as a concept has emerged and gained popularity in 1980’s. Until than brand was one of the neglected aspect of total marketing. Lot of the development of in the field of brand management owes to brand equity concept.

According to Davis A.Aaker, brand equity is a set of assest(and liabilities) linked to a brand’s name and symbol, that adds to (or subtracts from), the value provided by a product or service to a firm.

Brand equity is the added value endowed on products and services. It may be reflected in the way consumers think, feel, and act with respect to the brand, as well as in the prices, market share, and profitability the brand commands for the firm.

Brand Equity is the ability of the brand to manage the changed market conditions. It is dependent on two factors Existing & Changed market conditions.

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Brand Equity is the ability of 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 found by using BAV (Brand Asset Valuator) and changed market conditions that is dependent on the competition and product life cycle.

EXISTING�CONDITIONS

BRAND�ASSET�VALUATOR

BRAND�EQUITY

CHANGED�CONDITIONS

LOYALTY

COMPETITION PREMIUM

DISTRIBUTION

PRODUCT�LIFE�CYCLE LEVERAGIBILITY

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The ability of a brand to with stand the competition is broadly classified in to four factors

LOYALTY: The extent of the faithfulness of consumers to a particular brand, expressed through their repeat purchases, irrespective of 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 of the brands according to a certain probability distribution.

Therefore, the two important parameters of the model reflect a brand’s reliance on highly loyal customers and its success in attracting brand switchers. The first groups are those who have a positive attitude toward the brand (prefer it) and who buy it. The second groups are those who buy it on a given purchase but who may prefer another brand.

An assumption of the model is that every consumer has a preferred brand. If these consumers have a preference, why are they “switching?” Although all consumers have a preferred brand, some preferences are stronger than others. Weak preferences characterize potential switchers. Potential switchers may be variety seekers; or, they may be responding to sales promotions or other situational factors. By considering the relative preferences and purchases, the model computes an ability of each brand to attract consumers from 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 belief and checks whether the beliefs are getting translated into Behaviour, i.e. actual purchase. It also helps to find out the price level of price sensitivity that a particular brand has. This model also helps in gauging the resilience and leveragability of the brand.

Rational for choosing Colombo Morrison Model:

The category noodles we have chosen falls under low level of involvement that means people’s chance of trying other brand is high. Analyzing Colombo Morrison Model gives the reasons why people choose other brand over preferred brand. This model helps to find out the problems existing in the brand.

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PRICE PREMIA: It is the ability of the brand to charge the premium

METHODS TO FIND PRICE PREMIUM:

Brand Price Trade off Method:

BPTO is one of the simplest to find relative value of the brand compared to competitors. In this method different brands are shown to customers and they are asked to choose their preferred brand at the same comparable price level. Then prices of the products are revised and then the customers are asked to choose from the adjusted price level.

The ranking of the preferred can be inferred 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 for determining consumer price preferences.

The traditional PSM approach asks four price-related questions, which are then evaluated as a series of four cumulative distributions.

ƒ At what price would you consider the product to be so expensive that you would not consider buying it? (Too expensive)

ƒ At what price would you consider the product to be priced so low that you would feel the quality couldn’t be very good? (Too cheap)

ƒ At what price would you consider the product starting to get expensive, so that it is not out of the question, but you would have to give some thought to buying it? (Expensive/High Side)

ƒ At what price would you consider the product to be a bargain—a great buy for the money? (Cheap/Good Value)

A graph is plotted by taking price on X-axis & number of 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 of Marginal cheapness) and PME (Point of 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.

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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 of involvement for the product is high. Since, the category we have chosen fall under low level of involvement, Closed end questionnaire gives better results.

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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 of the product.

Rational for not choosing Brand Price Trade-off Method:

This method gives relative value of a brand compared to its competitors. Since, Maggi has a market share of around 90% and the rest of 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 for competitors.

DISTRIBUTION: The main advantage of Maggi over other brands is early mover advantage & distribution network. Only few 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 of availability.

PRODUCT LIFE CYCLE: Product life cycle is a tool that provides a way to trace the stages of product’s acceptance from introduction to decline. The market share of Maggi noodles is around 90%. The present market size of instant noodles is Rs 1300 crore and is expected to grow around Rs 3000 – 3500 crore by 2015. But, increased competition from Sunfeast Yuppie, HUL’s Knorr & other brands make hard for Maggi to increase its market share.

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LEVERAGIBILITY: It is the power of the existing brand name to support a company’s entry in to a new product category. The new category can gain the strength of existing

Brand because consumers relate pre-existing knowledge of a brand’s level of quality with new category of products.

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Analysis Measure of Brand Equity

Questionnaire for Loyalty:

Which among the following brands do you prefer most?

Which brand of noodles did you purchase/have last time?

Rational: As per the Colombo Morrision model we aim to find out the focus percentage which tells the purchase made by customer who prefer the brand by the total number of customers who purchase the brand and the gravity percentage i.e. the customers who prefer the brand by the total number of people who buy the brand.

Last Brand Purchased

YippeeHorlicks Foodles

MaggiWai Wai

Top Ramen

Knorr Soupy

Noodles Total

Pref

erre

d B

rand

Yippee X X**

Horlicks Foodles X

Maggi X

Wai Wai

X

Top Ramen X* X

Knorr Soupy Noodles

X

Total

Where,

X = No. of customer loyal to their brand

X*= Customers who prefer Top Ramen but their last purchase made was Yippee i.e they switch

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X** = Customers who prefer Yippee but their last purchase made was Yippee

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Last Brand Purchased

Yippee Horlicks Foodles

MaggiWai Wai

Top Ramen

Knorr Soupy

Noodles Total

Pref

erre

d B

rand

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 of preference of each brand. Over here Maggi’s share of preference is 44.59% (33/74). Row Total tells us the market share for each brand. According to the response taken from 37 respondents, the market share for Yippee is 6.75%, for Maggi is 41.89%, for Knorr soupy noodles its 1.35% and for 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%

Customeloyal�to

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rs��

brand�

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From the above Gravity and Focus matrix we can see that the

Industry Average of both Gravity and Focus Ratio is 42% which is calculated as [(2+0+29+0+0+0)/74] i.e. the loyalty consumers of all the brand by total consumers (both preferred and purchased).

If we look upon Maggi’s Gravity Ratio: 88% and Focus Ratio: 94%. Though both the gravity and focus ratio is greater than the industry average, but Maggi is not able to convert its preferred to purchase because its gravity ratio is greater than its focus ratio.

Whereas, Yippee noodles are able to convert its preferred customers to purchase customers, since its focus ratio is less than its gravity.

Here, focus ratio(94%) of Maggi is more than fifteen times to that of ‘Industry minus maggi’ focus ratio(6.1%). It means that that loyalty of maggi is increasing. Therefore the brand is robust to genearte future cash flow.

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 if 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 of competitors price per se and so that we can be prepared for any such changes.

58%

42%

0%

10%

20%

30%

40%

50%

60%

70%

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Loyal Switchers

Percentage�of�loyal�and�switchers of�Maggi

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If your preferred brand is not available, what will you do?

Rational: The question was asked to check the degree of loyalty, as people who will buy only maggi even if it is not available in a shop indicates he is very loyal to the brand.

12%

33%

55%

0%

10%

20%

30%

40%

50%

60%

I�will�not�buy Buy�another�brand Buy�from�other�shopͲkeeper

Brand�Loyalty

Do you recommend your preferred brand to others?

Rational: The question again measures the degree of loyalty of a customer as a highly loyal customer of a brand becomes a brand.

94%

6%

0%10%20%30%40%50%60%70%80%90%100%

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Recommend Does�not�Recommend

Recommendation�by�the�consumers

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Conclusion for Loyalty: The preference of Maggi is very high compared to competitors and recommendation by consumers is as high as 94%, which shows the brand has high loyalty. But, from the analysis we found that gravity of the brand is low as compared to focus 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.

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Price Premia :

Question: At what price range would you consider your preferred brand to be so expensive that you will not consider buying it?

Rational: This question was asked to find at what price range consumers think the price of the product is too expensive and would not afford to buy.

Question: At what price range would you consider your preferred brand to be so low that you will feel the quality will not be good?

Rational: This question was asked to find at what price range consumers think the price of the product is too cheap and quality is deteriorated.

Question: At what price range would you consider your preferred brand starting to get expensive, so that it is not out of the question, but you have to give some thought to buy it?

Rational: This question was asked to find at what price range consumers think the price of the product is getting expensive, but give some thought to consider it

Question: At what price range would you consider your preferred brand to be a bargain, a great buy for money?

Rational: This question was asked to find at what price range consumers think the price of the product is value for money.

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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.

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Leveragability:

Which of the following category of products will you buy if offered by your preferred brand?

Rational: This question was asked to find in which category of 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.

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Recommendations: From the survey & Secondary Research it was found that Loyalty & Distribution network of Maggi is far ahead of competition. But, Increasing competition from Knorr & Yuppie that have good distribution network may hurt Maggi in future. 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 of Poters five forces reveals that category has low entry & exit barriers and the product has many substitutes so it’s better for maggi to leverage it’s brand strength in other category of products. The survey shows that Maggi can leveraged in the categories such as Cookies & biscuits, chips, health drinks & Juices.

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Annexure

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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)

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Index

Page No. Executive Summary 3 Brand Value Measurement 6

Brand Strength Score 15

Financial Analysis 16

Recommendation 17

Annexure 18

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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:

x 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

x 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

x 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.

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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.

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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

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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.

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Brand Value Measurement

Interbrand’s Brand Valuation approach is driven by three factors

x Brand Index x Brand Strength Score x 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 ?

x Branded x Unbranded x Both

25,�78%

1,�3%

6,�19%

Branded

Unbranded

Both

Analysis: From the data we found that 78% prefer only branded noodles and are assign Brand Index of noodles as 78

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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.

x Brand extension for other category of products that shows company’s interest in the brand.

x 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

x The category itself doesn’t have legal protection because the products across the brand are easily replicable.

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Brand�strength

Internal�Factors

External�Factors

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x 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

x 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

x Heritage x Value set (Rated based on the value’s found by using Laddering Theory) x Customer’s Expectation

Did Maggi meet your expectations every time you had it?

x More than meet my expectations x Meet my expectations

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x Did not meet my expectations

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2,�6%

30,�94%0,�0%

More�than�meet�my�expectations

Meet�my�expectations

did�not�meet�my�expectations

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:

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BRAND RELEVANCE

ATTRIBUTES FOODLES

KNORR

MAGGI

TOP RAMEN

WAI WAI

YIPPEE

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

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0

20

40

60

80

100

120

FOODLES KNORR MAGGI TOP�RAMEN WAI�WAI YIPPEE

BRAND�RELEVANCE

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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

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0

20

40

60

80

100

120

FOODLES KNORR MAGGI TOP�RAMAN WAI�WAI YIPPEE

Brand�Differentiation

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?

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3,�9%

29,�91%

Yes

No

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If you have mentioned yes for the above question, please tick which ever is applicable?

x Quality has Increased x 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

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94%

6%

0%10%20%30%40%50%60%70%80%90%100%

Recommend Does�not�Recommend

Recommendation�by�the�consumers

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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:

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4

2

2

24,�75%

HUL

DABUR

ITC

NESTLE

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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

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Financial Analysis:

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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:

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x 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

x 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

x 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.

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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)

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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:

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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

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