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ENCASHING THE BRAND EQUITY- MAGGI SAUCES
Manufacturer
Parent Brand
BRAND EXTENSION
Maggi Sauce• Launched in the mid-
1980s• Associated with
category re-defining innovations from the very beginning, starting with the launch of the MAGGI Hot & Sweet and “It’s different” commercials featuring Jaaved Jaaferi and Pankaj Kapoor
• Nestle introduced the brand in 1982, with Maggi noodles
• Recently, facing a lot of controversy around lead being present in Maggi noodles
• Positioned as a convenience food product
• Manufacturer of dairy products, confectionery, dried processed food, noodles, oils and fats, pasta, sauces, dressings and condiments, soup and beverages
• Nestle India- subsidiary of Nestle SA
Maggi Sauces
Quintessential Rich Tomato
Ketchup & Sauce
Hot & Sweet Tomato Chilli
Sauce
Tangy and “chatkaaredar”
Imli Pichkoo
PRODUCT CATEGORY- COOKING AID/ CONDIMENTS
• A Condiment is a spice, sauce or other food preparation that is added to food to impart a particular flavor, to enhance its flavor or to complement the dish
• Within this category, Maggi Sauces fall in the subcategory of “Sauces and Ketchups”
• Sauces, dressings and condiments grows by 18% to reach INR93 billion in 2014
• Ketchup is the most popular table sauce in India and it demonstrated strong value growth of 17% in 2014.
• Ketchup in India is not only consumed with fast food such as burgers and pizzas, but is also an alternative to wet chutneys which is usually served with dosa, chapatis, parathas and samosas. Ketchups is also used to make normal food tastier thus gaining popularity among children
MAGGI- MARKET POSITION(2014), PREPARED DISHES & COOKING AIDS
•No. 1 in Instant Noodles
No. 1 Sauces •No. 1 Pasta
•No. 2 in Soups
SAUCE BRANDS - INDIA• Heinz• Kissan• Maggi• Fun Foods• Cremica• TopsStandard
• Mamamaria• Arabbiata Sauce• Ong’s of Bachun Food Industries
Premium
NESTLE- PAST PERFORMANCE
Dec'14 Dec'13 Dec'12
9,806.27
9,061.90
8,302.26
Sales(in Rs.Cr.)18%
SAUCE AND KETCHUP MARKET- 2005
37%
29%
34%
2005
Maggi Heinz Others
NESTLÉ INDIA LTD: COMPETITIVE POSITION 2014
Product type Retail value share RankPackaged food market 4.3% 2Noodles 63.1% 1
Dried processed food 15.5% 1
Baby food 68.7% 1Soup 19.3% 2Confectionery 11.8% 3Pasta 2.1% 5Sauces, dressings and condiments 4.1% 6
Dairy 1.8% 13
Product Price
PromotionPlace
• Maggi Sauce - Rich Tomato(No Onion Garlic), 500 gm Bottle is priced at Rs. 94, more or less at par with competitor
• Primarily taste enhancer• Product Line Tomato
ketchup, Hot & Sweet, Tomato Sauce
• Distribution network - well spread, easily available in all kirana stores, retail store etc.
• Television advertisement, hoardings, print ads are used to position the brand as “different”
4 Ps AT A GLANCE
PRODUCT• Maggi Sauces are primarily taste enhancer• Less thickness as compared to Kissan ketchups• To cater to the diverse Indian palate, MAGGI has a host of variants,
including:
The quintessential Rich Tomato Ketchup and Rich Tomato Sauce (No Onion No Garlic)
The unique Hot & Sweet Tomato Chilli SauceThe tangy and “chatkaaredar” Imli Pichkoo
PRICE• Maggi Sauce - Rich Tomato(No Onion Garlic), 500 gm Bottle
is priced at Rs. 94, more or less at par with competitor• Maggi Sauce - Rich Tomato(No Onion Garlic), 1 kg Bottle is
priced at Rs. 137.00 MRP• Maggi Sauce Hot & Sweet (Tomato Chilli),500 gm is available
at Rs. 98.00 MRP• Maggi follows a Penetration pricing strategy for the Ketchup segment as it wants to reach out to maximum possible consumers
PLACE• Distribution network - well spread, easily available in all
kirana stores, retail store etc.• Distribution channel of Nestle to Distributor to Retailer to
Consumer, as a chain system is helpful in proper distribution of the product
PROMOTION• The tagline of the brand is “It’s different”
and Javed Jaffrey , the brand ambassador• Television advertisement, hoardings,
print ads are used to position the brand as “different”
• In 2010, a campaign, 'Hassi Khushi and Maggi Sauce', was launched which saw the ketchup range sport a new tagline, 'Make a Difference', where customers could share jokes with the firm, used on the packaging of products. They could also call up to listen to jokes by Maggi ketchup brand ambassador Javed Jaffrey
• Keeping up with changing times, Maggi also ran a contest on Facebook- “Cook different”, to engage audience
SEGMENTATION
• The brand extension wanted to capture the brand equity of “Maggi”
• It tries to enter various segments through different means and basis
Maggi is an international brand and tries to capture both national as well as international market
Maggi primarily caters to the segment which prefers slightly sweet taste of sauce
Usually the “fast-food eating” segment prefers Maggi
Geographic
Taste
preference
Eating
habits
TARGET SEGMENT
• It targets the Middle income and high income groups, the women, as they shop for this product, for the family
• The target segment is primarily of people who consume fast food
• Unlike Heinz, it does not position itself as a “healthy” sauce
• The promotion strategy is centred around the idea that “it’s different”. Thus, consumers like to opt for it, who are not loyal to a particular condiment brand
POSITIONING
• Tag Line – “It’s Different”• Positioning- differentiated
from the rest• Target group- Middle income
and high income households• Promotion- T.V ads, print
ads, hoardings• SKU- Bottle- 200 gm, 00 gm,
1Kg - Pichkoo-90 gm, 500 gm
SweetnessTanginess
Thickness- High
Thickness- Low
COMPETITIONMaggi faces competition from national level players as well as local brands
CONSIDERATION SET
Consumer considers Heinz, Del Monte, Kissan, Tops and Maggi while making a choice for the ketchupHowever, Kissan is the alternative preferred by the consumers who favor brand names while making such a purchase decision
POP & POD
POP• Tomato Ketchup• Price more or less similar to other brands in the consideration set• Can be eaten with all sorts of fast food• Red in color
POD• Less thicker than other ketchups• Least sugar content amongst all brands, Sugar (100gm)
13.5gm • Smooth and creamy with a sweet finish
REFERENCES• http://
food.ndtv.com/reviews/cremica-heinz-del-monte-and-other-favourites-which-ketchup-tastes-the-best-777783
• http://consumeraffairs.nic.in/consumer/writereaddata/ketchup_13.pdf• http://
business.mapsofindia.com/top-brands-india/top-ketchup-brands-in-india.html
• https://www.nestle.in/• https://www.nestle.in/investors
• Done By-TANVI TANEJA (PGP 30398) [email protected] MANAGEMENT (SECTION B)
Under the thoughtful and enriching guidance of:Prof. Sameer MathurPh.D. (Carnegie Mellon University)Marketing Professor (IIM Lucknow)
LEARNING