MAGGI SAUCES

TANVI TANEJA (PGP 30398) Tanvi.Taneja@Hotmail.com7706860070BRAND MANAGEMENT (SECTION B)

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 noodlesRecently, facing a lot of controversy around lead being present in

Maggi noodlesPositioned 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• Tops

Standard

• 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 Rank

Packaged food market  4.3% 2

Noodles  63.1% 1

Dried processed food  15.5% 1

Baby food  68.7% 1

Soup  19.3% 2

Confectionery  11.8% 3

Pasta  2.1% 5

Sauces, 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

• Penetration pricing strategy

• Primarily taste enhancer• Product Line Tomato

ketchup, Hot & Sweet, Tomato Sauce

• Less thickness as compared to Kissan ketchups

• 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

• Television advertisement, hoardings, print ads are used to position the brand as “different”

• The tagline of the brand is “It’s different”

• Javed

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

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 ketchup

FRAME OF REFERENCE AND 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

REFERENCED

• 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