The Maggi Brand in India: Brand Extension and Repositioning
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Case Details:
Case Code : MKTG144
Case Length : 15 Pages
Period : 1982-2006
Organization : Nestlé India Ltd.
Pub Date : 2006
Teaching Note : Not Available
Countries : India
Industry : Packaged foods
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Please note:
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Outlook
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According to the FICCI 'Food and Beverage Survey' published in February 2006, health foods, health food supplements, convenience foods and branded foods were the 'rapidly rising' segments of the food and beverage industry.
The survey also revealed that the market for branded food products was growing at a healthy rate of around 15 percent in the early 2000s.
The changing lifestyles and eating habits of Indian consumers and the increasing purchasing power of the growing middle income group were thought to be the reasons behind this growth.
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Even though the demand for convenience food was increasing in India in the early 2000s, analysts said that most of the Indian consumers were still conservative in their food habits, and gave importance to the perceived health benefits of traditional food. Therefore, it remained to be seen whether products like Maggi Atta Noodles, despite their 'health' focus, would prevail in the long run.
Competition was also increasing for Maggi in various other product segments (Refer to Exhibit VI for NIL's competitors in the prepared dishes and cooking aid segment in mid-2006).
For instance, Heinz was taking various initiatives to increase its presence in the sauces and ketchup market. In March 2006, Heinz India launched two new Indianized flavors - Chatakdar Mint Chutney and Chatpata Tomato Chutney. The company already had a vitamin-enriched sauce, Heinz Champ, for health conscious consumers...
Exhibit
Exhibit I: A Brief Profile of Nestlé India Limited
Exhibit II: Maggi's Product Portfolio in Mid-2006
Exhibit III: History of the Maggi Brand
Exhibit IV: Annual Financial Results of NIL from 2001 to 2005
Exhibit V: Sales of NIL from Prepared Dishes and Cooking Aids in 2004 and 2005
Exhibit VI: NIL's Competitors in Prepared Dishes and Cooking Aids Segment as of Mid-2006
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