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First phase submission

Theme: Category branding (Umbrella branding)

Topic: Category branding in India with reference to Maggi

Submitted to

Prof. (Dr.) Avinash Kapoor

Submitted by

12P193 Bhaskar Rawat

12P194 Chandrachuda Sharma Y

12P199 Girish Chandra Joshi

12P217 Naman Sharma

12P236 Sameera V

13B0C07 Fabrizio Delfrati

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Theme: Category branding (Umbrella branding)

Topic: Category branding in India with reference to Maggi

Introduction

Umbrella branding

When companies use same brand name to sell different products then it is called

umbrella branding or category branding. Brand manufacturers always try to leverage

on their strongly build brands either by cross promoting or by cross selling different

product categories under an umbrella brand. Umbrella branding helps firms with

strong brands to successfully introduce new products by convincing consumers that

new and existing products are of similar quality Through umbrella branding

companies are minimizing their costs of creating a new brand. Now a days it has

become a standard business practice. Consumers make inferences from the

characteristics of one product to the characteristics of another product under the

same umbrella brand. Whenever a proper information is missing about a new

product extended by an umbrella brand, strongly build umbrella brand will always

help consumers in decision making about products extended by an umbrella brand.All products under the umbrella brand will help in building the reputation of umbrella

brand. Through brand extensions, brand managers are reducing their risk in

introducing new product.

Firms can control their branding decisions on qualities, umbrella branding can

convey information to consumers even in the absence of any technological quality

correlation. First, the umbrella branding decision itself may influence consumers

beliefs about qualities; umbrella branding has signalling effects in this case. Second,

umbrella branding leads to feedback effects whenever consumers believe that the

qualities of the included products are correlated. In the case of positive quality

correlation, the success (failure) of an umbrella branded product has a positive

(negative) feedback effect on consumers belief about the quality of the other product

sold under the same brand

Nestle India Limited created a new food category, noodles in the Indian

packaged food market. It leveraged on its first mover advantage, Nestle successfully

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managed to be a market leader in noodles category. Nestle extended the Maggi

brand to a variety of food products like sauces, soups, ketchups, etc. These product

extensions were not able to lure customers as noodles.

Purpose and scope of the study

To identify the key brand associations of Maggi as a brand and leveraging

them for extensions of brand within a category. It also includes the various measures

taken by Nestle to keep Maggi brand stay afresh in the minds of Indian consumers.

This project also includes study about the various extensions and tries to analyse the

reasons behind the success of sauces and ketchups category, among all other

product extensions.

Objectives of the study

1. Assessing customer evaluation of extensions for the Maggi brand

2. Understanding marketing implications for the successful category branding

Significance of the study

This study will help the readers in understanding the effect of parents brand equity

on the evaluation of the new product launched under an umbrella name specially

what associations are transferred from the parent brand to the new products which

help in a positive evaluation. Maggi provides an interesting example as the new

products launched under the umbrella brand Maggi have met with mixed results. The

study of these failures and successes can provide the readers with knowledge about

the factors influencing the prospects of brand extensions.

The study extends the development of the stream of literature on the relationships

between brand extensions and brand equity of Maggi. On a practical level, the

results of the study can aid brand managers in deciding as to how parent brand

equity may have an impact on their brand extension decisions. Furthermore, the

study also provides information regarding the effect of brand extension on the core

brand concept and parent brand equity