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 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• 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) tanvi.taneja@hotmail.com7706860070BRAND MANAGEMENT (SECTION B)

Under the thoughtful and enriching guidance of:Prof. Sameer MathurPh.D. (Carnegie Mellon University)Marketing Professor  (IIM Lucknow)

LEARNING