maggi recalling brand
TRANSCRIPT
CERTIFICATE
This is to certify that Rahul Ahuja, student of School of Management Studies ,Punjabi university
,Patiala has completed her project on the topic of ― Brand Recognition Of Maggi ‖ under my
supervision and guidance. To best of my knowledge the report is original and has not been copied
or submitted anywhere else. It is an independent work done by him.
(Prof. Apar Singh)
DECLARATION
I, Rahul Ahuja, student of Semester IV in School of Management
Studies,PunjabiUniversity,Patiala hereby declare that I had successfully completed this project on
―A study on Brand Recognition Of Maggi‖ in the academic year 2012-2014.
I declare that this submitted work is done by me and to the best of my knowledge; no such work
has been submitted by any other person for the award of degree.
I also declare that all the information collected from various secondary and primary sources has
been duly acknowledged in this project report.
Rahul Ahuja
ACKNOWLEDGEMENT
When I embarked this project, it appeared to me as onerous task. Slowly as I progressed I did
realized that I was not alone after all.
I wish to express my gratitude to Dr. Apar Singh, assistant professor ,School of Management
Studies ,Punjabi university ,Patiala who have extended their kind help, guidance and suggestion
without which it could not have been possible for me to complete this project report.
My sincere thanks to my all entire faculty members and all staff members for offering me all kinds
of support and help in preparing the project.
I am deeply indebted to my guide Prof. Apar Singh for not only his valuable and enlightened,
guidance but also for the freedom he rendered me during this project work.
My heart goes out to my parents who bear with me all the trouble I caused then with smile during
the entire study period and beyond.
PREFACE
The project gives an insight of the Maggi noodles. It basically helps understanding the Brand
Recognition Of Maggi. It helps us to know what are the basis on which a consumer recognizes a
particular brand when he/she purchases noodles.
The project will help to learn about the strategies and brand loyalty and esteem of Maggi noodles.
The research will also bring to light what all factors a consumer considers while identifying and
purchasing brand of noodles.
INTRODUCTION
Maggi is an international brand of instant soups, stocks, bouillon cubes, ketchups, sauces,
seasonings and instant noodles. Owned by Nestlé since 1947, the original company was founded in
Switzerland in 1872 by Julius Maggi.
The brand is known for Maggi noodles, Maggi cube, and Maggi-Würze (seasoning sauce).
Company History
The original company came into existence in 1872 in Switzerland, when Julius Maggi took over
his father's mill. He quickly became a pioneer of industrial food production, aiming to improve the
nutritional intake of worker families. Maggi was the first to bring protein-rich legume meal to the
market, and followed up with a ready-made soup based on legume meal in 1886. In 1897, Julius
Maggi founded the company Maggi GmbH in the German town of Singen, where it is still based
today.
In 1947, following several changes in ownership and corporate structure, Maggi's holding
company merged with the Nestlé company to form Nestlé-Alimentana S.A., currently known in its
francophone homebase as Nestlé S.A.
Today, Maggi is known throughout the world for its dry soups, seasoning sauce and instant noodle
dishes. In New Zealand, Maggi Onion Soup mix is often combined with reduced cream to create
an onion dip for potato chips that has come to be generally accepted as a Kiwi favorite.
Noodles
In India and Malaysia, Maggi instant noodles are very popular; Nestle have 39% of the market in
Malaysia, where "Maggi" is synonymous with instant noodles; and a 60% share in India where it
was the first instant noodle brand. In Malaysia, fried noodles made from maggi noodles are called
Maggi goreng.
Advertised as 2 minute noodles since 1982. Maggi noodles recently introduced a new variety of its
noodles like 'No MSG', 'Less Salt', and 'No Trans fat' to cater to the health conscious. In mid-2008,
New Zealand supermarkets introduced replacement formulations for its beef, oriental, and curry
flavours. A new feature is an extra sachet containing dehydrated vegetables. Maggi claims the new
range contains 88% less total fat and 86% less saturated fat than the average of top-three
(unnamed) 2-minute-noodle competitors. The new Maggi range also has considerably lower fat
than its own previous formulation. However, the salt content has been increased by 31 percent.
Nestlé have faced criticism of their advertising not adhering to marketing regulations in developed
countries, but making misleading claims in developing countries where regulation permits it. For
example, Nestlé claims "vegetarian" label on the product while the entire production of product
fully use several animal fats and hydrogenated fats from animal sources. The noodle
manufacturing line is technologically developed for sophisticated mixing of animal oils and other
animal based by-products for the entire packaging brand. Also, in October 2008 Nestlé mistakenly
aired an advert meant for Bangladeshi TV on British TV. The advert made false claims that the
noodles would "help to build strong muscles, bone and hair". The British Advertising Standards
Authority said that the advert did not abide by the new EU consumer protection legislation, by
which advertisers have to provide proof of health claims.
Seasoning sauce
In parts of China, Vietnam, Thailand, Taiwan, the Philippines, Singapore, Pakistan, Mexico,
Malaysia, Brunei, German-speaking countries, the Netherlands, the Czech Republic, Slovakia,
Slovenia, Poland and France, "Maggi" is still synonymous with the brand's Maggi-Würze (Maggi
seasoning sauce) (in Spain and Mexico, it is sold under the name Jugo), a dark, soy sauce-type
hydrolysed vegetable protein-based sauce.
In Indonesia, Malaysia, the Philippines, Thailand and Vietnam, Maggi seasoning sauce is a popular
condiment, and the bottles are familiar sights on tables in restaurants and homes.
Prior to the early 2000s, Maggi seasoning was an actual soy sauce, using soy and wheat as some of
their ingredients, however a change in ingredients resulted in the omission of soy. It was
introduced in 1886 as a cheap substitute for meat extract. It has since become a well-known part of
everyday culinary culture in Switzerland, Austria and especially in Germany. It is also well known
in Poland and the Netherlands. Maggi Würze has popularity in Serbia and Macedonia, despite not
being officially available in those countries. Maggi is very popular in East Asia, Southeast Asia,
and South Asia, where Maggi seasoning is used in many soups, stir-fries, marinades and as a
dipping/topping sauce. Maggi seasoning is commonly used in Asia as a "soy sauce".
MAGGI 2-MINUTE
MAGGI 2-MINUTE Noodles is the most-loved meal across all age groups and defines the Instant
Noodles category in India by being a part of our way of life. It has been bringing people together
and is the favorite of millions; living in our hearts it has become intertwined in some of people‘s
most memorable experiences.
MAGGI 2-Minute Noodles brings to you 10% RDA of Protein and 20% RDA of Calcium in each
serve (75g). With a reduction of over 27% salt per serve, less than 0.2% Trans Fats and no added
MSG‘s MAGGI Noodles has focused on providing you a healthier meal, without compromising on
the great taste you love.
The New MAGGI Masala Dumdaar Noodles infused with a spicier flavor, added iron, calcium and
protein making it healthier and tastier. Delivering on the promise of ―Taste Bhi Health Bhi‖ each
serve (76g) provides 24% RDA of Iron, 10% RDA of Protein and 20% RDA of Calcium giving
you a truly Dumdaar taste.
Maggi in India
Launched in 1983 by NIL
In different variants like masala, tomato and chicken followed by curry few years down the
line
It was launched at a time when instant noodles were not that famous in India
First time Indians got something which was hygienically packed and convenient to prepare
―Fast to cook, Good to eat‖
Initially targeted towards working women then shifted to kids
Holds 85% market share
Competiors
SunfeastYippeNooddle
Horlicks Foodles
Top Ramen
Knorr Soupy Noodles
WaiWai
Need Recognition in India
Need of a product that provides good quality food and at the same time was convenient.
Maggi visualised it and launched itself in the Indian market to be everyone‘s favourite food
brand.
Market Penetration Strategies
Promotional campaigns in school
Advertising strategies
Availability in different pack sizes
New product innovations
Messages
Fast to cook, Good to eat
Mummy bhukhlagi..
You and maggi makes tastier meals
Bas 2 minute
Taste bhi, Health bhi
Maggi mania – Chaska taste ka, health rice ka
Maggi Cuppa mania – Just add garampani, Carry on jani
INTEGRATED COMMUNICATION
ADVERTISING PUBLICRELATIONS SALES PROMOTION INTERACTIVEMARKETING
ADs AD
CAMPAIGNS
BILLBOARDS PRINT ADs
TV ADs OTHER
Maggi Turns 25
People grew eating maggi for 25 years
Launch of the Campaign ―Me and Meri Maggi‖
Everyone had some unique and personal stories about maggi to tell
Objective was to create strong customer connects through TV, newspaper, Internet,
Billboards, Radio and Maggi packets as well
Do Minute Mein Khushiya
Everyone‘s favourite Maggi getting endorsed by Amitabh bachchan
People got to tell their Maggi stories by Amitabh Bachchan on TV.
Executive Summary
Brand image is the measure of customer‘s view of the brand. We have chosen Maggi
noodles as our brand to measure the brand image.
The methods used for measuring brand image are
.
Brand Asset Valuator
Laddering Method
Brand Asset Valuator:
Instrument for data collection Questionnaire
Sample Size 100
The Brand Asset Valuator, a proprietary tool developed by advertising agency Young & Rubicam,
measures Brand Image by applying four broad dimensions: Differentiation, Relevance, Esteem,
and Knowledge. Brand Asset valuator tells where the brand stands now and how does the future
look like.
The current strength of the brand is measure by Brand Stature, which is sum of knowledge and
esteem of the brand and the potential of the brand is measured by Brand Vitality, which is the sum
of differentiation and regard.
Based on the analysis of the survey it is found that Maggi gains highest in Knowledge, Esteem
and Relevance and stood second in differentiation. When plotted in power grid Maggi lies in
quadrant 1, which means strong brand. Clearly, Maggi stands as leader as of BAV, but Maggi
stood second in differentiation, which means for Maggi to continue as a leader in the future it has
to work on differentiation.
LADDERING METHOD:
Laddering refers to an in-depth, one-on-one interviewing technique used to develop an
understanding of how consumers translate the attributes of products into meaningful associations
with respect to self, following means-end theory.
Means-End theory states people choose a product because it contains attributes that are
instrumental to achieving the desired consequences and fulfilling values.
The laddering interview reveals people attribute noodles to the following values: Self Esteem,
Sense of belonging, Accomplishment & Responsibility. Many of the attributes lead to
accomplishment and self esteem values. The main attributes that Maggi should concentrate on are:
Instant preparation, Convenience, health, taste & variety. Based on the quantitative survey it is
found Maggi is leader at all the attributes except health. Therefore, the positioning of Maggi
noodles should be maintained by keeping these end values.
Brief History of the brand & its Evolution over time
Nestle in the year 1982 launched Maggie in the Indian market. The brand 'Maggi' which is famous
for the 2 minutes Noodles is today an umbrella brand in a category that it created for itself in the
packaged food segment in India largely because of its first mover advantage. The product was so
popular, that Maggi did to noodles in India, what Xerox did to photocopiers worldwide.
The tagline used in the 80's was ―Fast to Cook. Good to Eat‖. The communication style changed
in the 90's where the kids would come home hungry and ask for Maggi quickly. Maggi‘s first
brand extension was in the year 1988 when they launched Maggi instant soups with which Nestle
became a pioneer in the packaged soup market in India.
The new Maggi launched in 1997 was thinner and with a different taste, it proved to be a disaster
as the customers did not like the taste of the new Maggi and because of which they spend crores
of rupees to relaunch the 'old maggi' with the old taste.
By 2001 Maggi again became the leader in the segment of instant noodles and at this time they
had a product range which consisted of Maggi 2 minute Noodles, Maggi Sauces and Ketchup,
Maggi Pickles and Maggi Soups.
In 2004, NIL roped in PreityZinta (Zinta), a famous Indian actress to endorse Maggi noodles in
order to strengthen the brand's image.(Traditionally,Maggi did not opt for celebrities and the ads
usually featured mothers and kids.) The Ad was only made to promote the small packs of Maggi.
In 2005 Nestle made a very smart move. Maggi repositioned it as health and taste food products. It
knew that although kids love noodles, the parents were bothered about the health aspect of Noodles
which was made of Maida. Hence Maggi launched Maggi Atta Noodles with the baseline " taste
bhi health bhi" .With the introduction of Maggi Atta even the parents were happy consuming
it.The changing preferences of Indian consumers added to the success of Maggi‘s vegetable Atta
Noodles as they were increasingly accepting instant food products as a part of their diet.
Maggi 2 minute me Khushiyan is the latest campaign adopted by Nestle to
strengthen their brand.
Currently there are many products which are being marketed by Nestle under the brand
Maggi:
MAGGI’S BRAND EXTENSON
NOODLES
Maggi Vegetable Multigrain Noodles
Maggi 2 Minute Noodles
Maggi Vegetable Atta Noodles
Maggi Cuppa Mania
PASTA
Maggi Pazzta
SAUCES
Maggi Sauces
Maggi Pichkoo
Maggi Magic Cubes
COOKING AIDS
Magi Bhuna Masala
Maggi Coconut Milk Powder
Maggi Pizza Mazza
Maggi Masala-ae-Magic
Instruments of Data Collection to measure Quantitative Research Model
Brand Asset Valuator Model
The Brand Asset Valuator, a proprietary tool developed by advertising agency Young
&Rubicam, measures Brand Image by applying four broad dimensions:
Differentiation,Relevance, Esteem, and Knowledge.
The 4 dimensions:
Differentiation measures the degree to which a brand is seen as different from others. It is
theability for a brand to be distinguished from its competitors.
Relevance is the brand‘s appeal. If a brand is not relevant, or personally appropriate
toConsumers, it will not attract or retain them.
Esteem measures how well the brand is regarded and respected. It reflects its popularity
andperceptions of its quality. The more a person believes in someone or something and its ability
to deliver on the promise, the more respect it commands.
Knowledge is the result of all the marketing and communications efforts and
experiencesconsumers have had with a brand. Some brands makes you feel like you know the
brand as you would a close friend. This is called knowledge.
Relevance + Differentiation = Brand Strength
Esteem + Knowledge = Brand Stature
Brand differentiation and relevance combine to determine ―brand strength‖. These two pillars
point to the brand‘s future value, rather than just reflecting its past. Esteem and knowledge
together create ―brand stature‖, which is a barometer of its past performance.
Rationale:
A BAV can be used to:
Assess brand health
Assess strategy payoff
Assess brand meaning
Assess positioning
Benchmark the brand
Evaluate partnership opportunities
Guide brand architecture
Evaluate financial growth
Allocate resource
REVIEW OF LITERATURE
1.
The concept of Branding holds tremendous importance since many years; it is the key to
distinguish the goods and services from one to another. Customer‘s simple understanding of brand
is to associate and reckon with easy information processing about products purchasing and being
certain about the brand to build their trust with time (Logo Design works, 2007). This reflects the
greater need from the organization‘s point of view to have strong brands build through proper
brand management resulting from effective marketing programs to create brand equity.
2.
The modern concept of branding grew out of the consumer packaged goods industry and the
process of branding has come to include much more than just creating a way to identify a product
or company. Branding today is used to create emotional attachments to products and companies
(Dolak, 2003; Kotler& Armstrong, 2004).
3.
Branding efforts create a feeling of involvement, a sense of higher quality, and an aura of
intangible qualities that surround the brand name, mark, or symbol (Aaker, 1991;Dolak, 2003).
4.
Brands basically create perceptions in the mind of the consumer that it is unique and there is no
other similar product or service in the market. Therefore, a brand is to say to be strong entity if it is
consistent over a long period of time in providing the product or service which consumers and
prospective purchasers can rely and trust, which will lead to a Brand promise (Srinvasan, Park &
Chang, 2005).
5.
The most important assets of any business are intangible — including its base of loyal customers,
brands, symbols & slogans — and the brand‘s underlying image, personality, identity, attitudes,
familiarity, associations and name awareness. These assets — along with patents, trademarks, and
channel
relationships — comprise brand equity, and are a primary source of competitive advantage and
future earnings (David Aaker, 1991; Neal & Strauss, 2008). Brand equity is initially built by laying
a foundation of brand awareness — eventually forming positive brand.
6.
The Brand Loyalty is the result of the success of the Brand Equity which is built as shown in the
pyramid of the various variables, which makes the brand more stronger and satisfying to be
consumed more often - thus expanding its value in the longer run through generating profits. The
importance of brand equity consists of numerous benefits for companies that own brands. Brand
equity has positive association with brand loyalty. More precisely, brand equity increases the
probability of brand selection, leading to customer loyalty to a specific brand (Pitta &Katsanis,
1995).
Objectives are:
1.To measure the effectiveness of advertisement of Maggi.
2.To check whether the people are able to recognize the jingles in Maggi add.
3.To make people remind about the Maggi using various methods like laddering method and brand asset
value
RESEARCH METHODOLOGY
The research design of the project is descriptive as it describes data and characteristics. Descriptive
research is used to obtain information concerning the current status of the phenomena to describe,
"what exists" with respect to variables in a given situation.
DATA COLLECTION
Primary Data
Primary data is that data which is collected for the first time. It is original in nature in the shape of
raw material. For the purpose of collection of primary data, a well-structured questionnaire is
framed which was filled by the respondents. The questionnaire was comprises of close ended as
well as open-ended questions.
Sampling Design
Sampling refers to selecting some of the elements in a population by which one can draw
conclusions about the entire population.
Scope
Scope refers to the geographical area where there is a scope of population. The scope of the study
is Consumers of Patiala.
Sampling Technique
The selection of the respondents is done on the basis of convenience technique .
Sample size
Sample size are 100 that are the consumers from Patiala.
Instruments of Data Collection
Reynolds and Gutman’s “LADDERING METHOD”
Laddering refers to an in-depth, one-on-one interviewing technique used to develop an
understanding of how consumers translate the attributes of products into meaningful
associations with respect to self, following means-end theory. Hence, to understand the in-depth
underlying motivators a laddering technique should be used.
Laddering originated in consumer research and relies heavily on Means-End Theory which states
that people choose a product because it contains attributes (the means) that are instrumental to
achieving the desired consequences and fulfilling values (the ends) The common generic means-
end chain, therefore, consists of attributes (A), consequences (C) and values (V).
Attributes -> Consequences -> Values
Rationale: The objective is to provide a detailed description and analysis about the internalvalue
that a consumer associates with the product.
BRAND ASSET VALUATOR
BRAND KNOWLEDGE:
Knowledge means being aware about the brand and understanding what the brand or service stands
for. Brands like Knor soupy noodles, sunfeastyippee,wai-wai,horlicksfoodles& top raman are
taken as competitors to measure the brand awareness of magi noodles.
The questions asked to measure brand awareness are:
―What are the various brands of noodles you are aware of?‖
―Identify the various brand of noodles: ―
―Identify the given taglines with their respective brands:‖
Yipee
Noodles
Top
Ramen
WaiWai Maggi
Noodles
HorticksFoodes Knorr
Soupy
Noodles
Health bhi
taste bhi
The better
noodles
Spread the
smile
Don‘t be a
noodle, be a
snoodle
‗Noodles‘
without the
No
Khakepiyoya
pee kekhao
‗Munch it,
lunch it,
soup it‘
This question measures the top of the mind recall of all the brands of the noodles.
The second question checks if they are aware about the different brand of noodles
by showing them the packs of different brands
The third question asks the respondent to identify the taglines of different brands.
Tagline communicates what the product is meant for so if they identify the brand by the
tagline that means they have knowledge about the brand and what it is meant for.
BRAND ESTEEM
Brand esteem is a measure to check how consumers regard the brand i.e. brand personality.
In other words it measures whether a brand has positive or negative brand personality.
The questions taken to measure the brand personality are:
Out of your last 5 purchase of noodles how many times did you buy each of the following
brands or out of last 5 times you had noodles?
Which brand delivers their brand‘s promise most? (Rating scale 1 to 6,1 being the lowest & 6
being the highest)
Brand
YIPEE
TOP RAMAN
WAI WAI
MAGGI NOODLES
HORLICKS
FOODLES
KNOR SOUPY NOODLES
The last five purchase of a product shows the association of a customer with the product and
if the customer thinks that the brand delivers its promise it means the customer regards the
brand.
BRAND DIFFERENTIATION:
Differentiation is how distinct the brand is from the competition. Differentiation is the
one that helps the brand to charge premium.
For measuring the differentiation of Maggi following questions were asked
What comes to your mind when you hear the word MAGGI?
This question is framed to find what prominent characteristic made the consumer to buy
the product
BRAND RELEVENCE :
Relevance is how well the brand satisfies the need of the customer.
For measuring the brand relevance of Maggi following questions were asked:
Which attributes are important for you in noodles: (tick the ones which are important for you)
Which brand of noodles do you associate with the above chosen attributes? (Tick under the
name of the brand)
The first question was asked to find what attributes are important when buying noodles and second
to measure which brand is satisfying that needs/wants (for each customers) better than the
competitors
We have asked two questions related to the campaign ―Meri Maggi-2 minute me khusiyan‖ in our
questionnaire to check the brand esteem & knowledge of the product.
―Meri Maggi-2 minute me khusiyan‖ is the latest ad campaign of the noodles brand which aims
to find out the emotional attachment of people with the brand as an old brand like Maggi does
not only offer product but also some emotional attributes with it.
ATTRIBUTES CONSEQUENCES VALUES
Instant Saving time from
Self
Esteem
Convenient hectic life
Sense
of
(Easy to cook) Dosocial activity
belongi
ng
No Oil Self satisfaction
Accom
plishme
nt
Respon
sibility
Healthy Shortage of time
Taste Studying late night
Variety Do office work
Size Meeting goals/
Objective
o Use time for other
Activities
o Concentrate on day to
day activities
o Good for body and
Health
Mood remains good
Stress buster
Fun / Enjoyment
Satisfy taste bud
Not get bored
Easy to carry
Save money
Makes life easy
No wastage
The laddering interview reveals people attribute noodles to the following values: Self Esteem,
Sense of belonging, Accomplishment & Responsibility. Many of the attributes leads to
Accomplishment and Self Esteem. The main attributes that should be concentrated are Instant,
Convenience (Easy to cook), Health, Taste & value. From the Quantitative survey it is found that
Maggi is leader in all these attributes except Health, even though it‘s Tagline is ―Health bhi Taste
bhi‖.
Therefore, Maggi should position its noodles based on these end values. The current
advertisements are mainly positioning Maggi as 2 min noodles, which are satisfying many of
the main attributes required for creating the end values. Maggi should promote its tag line
more aggressively for satisfying more end values of the users.
Brand equity as a concept has emerged and gained popularity in 1980‘s. Until than brand was one
of the neglected aspect of total marketing. Lot of the development of in the field of brand
management owes to brand equity concept.
Brand Equity is the ability of the brand to manage the changed market conditions. It is dependent
on two factors Existing & Changed conditions.
Existing conditions can be found using BAV (Brand Asset Valuator), which we have done in
Phase-1 of the project.
Changed market conditions can be broadly classified in to two categories, first being competition
and second being Life cycle of the category & Leveragability of the brand
Competition is subdivided in to four parts
Loyalty with respect to the competition
Price premia gives whether the brand has flexibility with price
Distribution strengths of all brands
Based on the survey, with sample size of 37 & secondary research following conclusions are
drawn.
Loyalty: The preference of Maggi is very high compared to competitors and recommendation
byconsumers is as high as 94%, which shows the brand has high loyalty. But, from the analysis
we found that gravity of the brand is low as compared to focus that indicates Maggi is not able to
hold all its customers the reason could be sales promotion strategy, urge to try new brands and
retail‘s push is high in this category.
Price Premia:As per the Van Westendor model the price of a product should fall between the
rangeof bargain and getting expensive. As per our survey maggi customers feel value for money
when the product price is under price range of 9-11 Rs that is equal to market price. Customers
feel it is getting expensive at a price range of 12-14 for a 100gm pack. So from this we can say
Maggi is treated as value for money brand.
Leveragability:From the survey it is found that more than 35% of consumers feel that Maggi
canenter in to cookies, Chips, health drinks & Juices. Only 3% of the consumers feel that
Maggi brand cannot be leveraged for other products. The over all leveragability of the brand
Maggi is very high.
From the survey & Secondary Research it was found that Loyalty & Distribution network of
Maggi is far ahead of competition. But, Increasing competition from Knorr & Yuppie that have
good distribution network may hurt Maggi in future. For Maggi in order to retain it‘s existing
market share depends on how well it can engage consumers. Maggi‘s consumer engaging
programs like ―Merimaggi 2 min meinkhushiyan‖ will play a crucial role.
Analysis of Poters five forces reveals that category has low entry & exit barriers and the product
has many substitutes so it‘s better for maggi to leverage it‘s brand strength in other category of
products. The survey shows that Maggi can leveraged in the categories such as Cookies &
biscuits, chips, health drinks & Juices.
BRAND EQUITY:
History: Brand equity as a concept has emerged and gained popularity in 1980‘s. Until than brand
was one of the neglected aspect of total marketing. Lot of the development of in the field of brand
management owes to brand equity concept.
According to Davis A.Aaker, brand equity is a set of assest(and liabilities) linked to a brand‘s
name and symbol, that adds to (or subtracts from), the value provided by a product or service to a
firm.
Brand equity is the added value endowed on products and services. It may be reflected in the way
consumers think, feel, and act with respect to the brand, as well as in the prices, market share, and
profitability the brand commands for the firm.
Brand Equity is the ability of the brand to manage the changed market conditions. It is dependent
on two factors Existing & Changed market conditions.
BRAND EQUITY
CHANGED CONDITIONS
PLC
COMPETITION
EXISTING CONDITIONS
BRAND ASSET VALUATOR
LEVEGRAGIBILITY
PREMIUM
DISTRIBUTION
LOYALITY
.Brand Equity is the ability of the brand to manage the changed market conditions. For a brand to
with stand the changed conditions is dependent on the brand‘s existing conditions that can found
by using BAV (Brand Asset Valuator) and changed market conditions that is dependent on the
competition and product life cycle.
The ability of a brand to with stand the competition is broadly classified in to four factors
LOYALTY: The extent of the faithfulness of consumers to a particular brand, expressedthrough
their repeat purchases, irrespective of the marketing pressure generated by the competing brands.
METHODS TO FIND BRAND LOYALTY:
COLOMBO MORRISON MODEL:
Colombo and Morrison distinguished buyers in to two groups. Hard-core loyals, who buy the
same brand with absolute certainty at every single purchase occasion.Potential switchers, who
choose at every purchase occasionally one of the brands according to a certain probability
distribution.
Therefore, the two important parameters of the model reflect a brand‘s reliance on highly loyal
customers and its success in attracting brand switchers. The first groups are those who have a
positive attitude toward the brand (prefer it) and who buy it. The second groups are those who buy
it on a given purchase but who may prefer another brand.
An assumption of the model is that every consumer has a preferred brand. If these consumers
have a preference, why are they ―switching?‖ Although all consumers have a preferred brand,
some preferences are stronger than others. Weak preferences characterize potential switchers.
Potential switchers may be variety seekers; or, they may be responding to sales promotions or
other situational factors. By considering the relative preferences and purchases, the model
computes an ability of each brand to attract consumers from each other brand.
Share Tier Model:
This model takes into account two parameters Price & Quality. This model takes in to account
two parameters Price & Quality. It tests the belief and checks whether the beliefs are getting
translated into Behaviour, i.e. actual purchase. It also helps to find out the price level of price
sensitivity that a particular brand has. This model also helps in gauging the resilience and
leveragability of the brand.
Rational for choosing Colombo Morrison Model:
The category noodles we have chosen falls under low level of involvement that means people‘s
c.hance of trying other brand is high. Analyzing Colombo Morrison Model gives the reasons why
people choose other brand over preferred brand. This model helps to find out the problems
existing in the brand.
PRICE PREMIA: It is the ability of the brand to charge the premium
METHODS TO FIND PRICE PREMIUM:
Brand Price Trade off Method:
BPTO is one of the simplest to find relative value of the brand compared to competitors. In this
method different brands are shown to customers and they are asked to choose their preferred
brand at the same comparable price level. Then prices of the products are revised and then the
customers are asked to choose from the adjusted price level.
The ranking of the preferred can be inferred in relation to the prices customers can pay or willing
to pay.
Van Westerndrops Price Sensitivity Meter::
The method was developed in the 1970s by Dutch economist Peter H. Van Westendorp. The
Price Sensitivity Meter (PSM) is a market technique for determining consumer
pricepreferences.
The traditional PSM approach asks four price-related questions, which are then evaluated as a
series of four cumulative distributions.
At what price would you consider the product to be so expensive that you would not consider
buying it? (Too expensive)
At what price would you consider the product to be priced so low that you would feel the
quality couldn‘t be very good? (Too cheap)
At what price would you consider the product starting to get expensive, so that it is not out of
the question, but you would have to give some thought to buying it? (Expensive/High Side)
At what price would you consider the product to be a bargain—a great buy for the money?
(Cheap/Good Value)
A graph is plotted by taking price on X-axis & number of respondents on y-axis.The Optimal
Price Point (OPP) is the place on the graph that too inexpensive line crosses too expensive line.
The Optimal Price Range/Band is the area in the graph between the PMC (Point of Marginal
cheapness) and PME (Point of Marginal Expensive). PMC is where too inexpensive crosses
expensive. Whereas the PME is where inexpensive crosses too expensive. The PMC is the
threshold where the product becomes cheap and the PME is the threshold where the product
becomes expensive.
Changes Made to Van westendorps price sensitivity Meter: As per the method
thequestionnaire should be open ended. Open ended questions in this method works well when
the level of involvement for the product is high. Since, the category we have chosen fall under
low level of involvement, Closed end questionnaire gives better results.
Rational for choosing Van westendorps price sensitivity Meter:
This method gives clear about how consumers perception about a product changes with the
change in price of the product.
Rational for not choosing Brand Price Trade-off Method:
This method gives relative value of a brand compared to its competitors. Since, Maggi has a
market share of around 90% and the rest of the brands sharing 10% market share, adopting this
method makes results skewed towards Maggi. In order get better results using this method we
have take more sample size for competitors.
DISTRIBUTION: The main advantage of Maggi over other brands is early mover advantage&
distribution network. Only few noodles brands like Maggi, Yuppie & Knorr has good distribution
network. But Yuppie & Knorr are still in the early growth stage. Wai-Wai is present only in
Eastern region & Top Ramen has entered tie-up with Marico to tap other markets. Clearly Maggi
has the advantage over other brands in terms of availability.
PRODUCT LIFE CYCLE: Product life cycle is a tool that provides a way to trace thestages of
product‘s acceptance from introduction to decline. The market share of Maggi noodles is around
90%. The present market size of instant noodles is Rs 1300 crore and is expected to grow around
Rs 3000 – 3500 crore by 2015. But, increased competition from Sunfeast Yuppie, HUL‘s Knorr &
other brands make hard for Maggi to increase its market share.
LEVERAGIBILITY: It is the power of the existing brand name to support a company‘sentry in
to a new product category. The new category can gain the strength of existing
Brand because consumers relate pre-existing knowledge of a brand‘s level of quality with new
categoryofproducts.
Analysis Measure of Brand Equity
Which among the following brands do you prefer most?
Which brand of noodles did you purchase/have last time?
Rational: As per the Colombo Morrision model we aim to find out the focus
percentagewhich tells the purchase made by customer who prefer the brand by
the total number of customers who purchase the brand and the gravity
percentage i.e. the customers who prefer the brand by the total number of
people who buy the brand.
Brand valuation is a measure of identifying and defining the economic
strengths and weaknesses of a brand.
Brand valuation as a concept came into limelight in 1980‘s. The increasing
recognition of the value of intangible came with continues increase in gap between
book value and stock market valuation as well as sharp increase in the premium
paid to the brand‘s during mergers & acquisitions.
A brand is valued considering using two measures, Brand Equity that uses
consumer research to measure the performance of brands and financial measure.
The method chosen for brand valuation is Interbrand‘s Brand Valuation approach.
The reason for choosing this method is it considers both Brand Equity & Financial
aspects, where as, the above-mentioned approaches consider either Marketing
aspects or Financial aspects. Both these aspects have to consider finding the true
value of a brand.
Interbrand‘s Brand Valuation approach is driven by three factors
Brand Index: It is expressed on a scale of 0 to 100. It quantifies the strength of
the brandagainst generic product.
Brand Strength Score: It is a competitive benchmarking tool that identifies the
strength of abrand. It is measured using Internal & External factors the brand.
Financial performance: It is measured by using Brand Index, Brand strength
Score &Revenues of a company.
Although the brand strength of Maggi is high, it scored low in terms of
Differentiation compared to competitors, So measures should be taken to
improve differntiation
Until now Maggi enjoyed an early mover advantage over other brands,
because lack of rivalary. But now HUL‘s Knorr & ITC‘s yippie are giving
strong competition using their stong distribution & promotion strategies
Even tough the tag line of Maggi is ― Taste bi Health bi‖, consumers are
relating Maggi as tasty product but not healthy product (as per laddering) ,
which may be threat to maggi because consumers are becoming health
consciousness. So Maggi should use new ways to effectively communicate
with consumers.
What is a brand ?
A brand is an Intangible Asset. It is the future generator of cash flows. Brand
gives access to customers and possibility of charging premium on its product. A
brand build its physiological relationship with its customer over the period. It is
not set fixed, rather it keeps evolving over a period of time. It helps company in
changing their reputation
Ho did brand valuation originate?
In the late 1980‘s roll of brand acquisition led to the exposure of the hidden value
in highly branded companies. This was how brand valuation originated. These
brand acquisitions include: Nestle acquiring Rowntree, Grand Metropolitan
acquiring Pillsbury, United Biscuits buying Keebler and then selling it, and
acquisition of Nabisco‘s European businesses. The acquiring prices of all these
branded company were higher than the value of the company‘s net tangible asset.
This brings in a high level of ‗Goodwil‘ due to the acquisition. This goodwill were
the funtion of varios factors such as brand, copyrights, patents, customer loyalty,
distribution contracts, staff knowledge, etc.
Brand Valuation: Brand valuation is a measure of identifying and defining
the economicstrengths and weaknesses of a brand.
There are number of approaches for brand valuation, but most have fallen under
these two categories.
RESEARCH –BASED BRAND EQUITY EVALUATIONS:
There are many brand equity models that use consumer research to measure the
performance of brands. These methods don‘t consider financial value of the
brands; they measure behavior and attitudes of the brand that have an impact on
the financial performance of the brand. This methods measure various perceptive
measures such as awareness, knowledge, familiarity, relevance, purchase
considerations, preference, satisfaction and recommendation.
Even though a brand performs strongly according to these indicators but they still
fail to create financial and share holder‘s value. Because these methods do not
consider the role of certain factors like R&D and design of the brand that have
high degree of impact on the brand‘s performance.
FINANCIALLY DRIVEN APPROACHES:
Cost-based Approach: In this method the value of a brand is the aggregation of
all costsincurred or replacement costs required to bring back the brand to it‘s
current state. This method of valuation fails because there is no direct correlation
between financial investments made & value added to the brand.
Comparable Approach: In this method the value of a brand is arrived on the
basis ofcomparing it with something comparable. But comparing of brands is
difficult because brands by definition are differentiated and not comparable.
Further more, the value creation of a brand in the same category can be different,
even though other aspects of the underlying business such as target group,
advertising spend price promotion & distribution channel.
Premium price Approach: In this method the brand value is created as the net
present valueof future prices that a branded product would command over an
unbranded product. However, the primary purpose of many brands is not
necessarily to obtain a premium but rather to secure the highest level of future
demand. The value generation of a brand is dependent volume generation rather
than securing price premium. The method is flawed because there are rarely
generic equivalents of a brand.
Economic use Approach: Approaches that are driven exclusively by brand equity
measuresor financial measure lose either financial or marketing component of the
brand. For measuring the true value of a brand both financial & marketing aspects
have to be considered to provide a complete and robust value of a brand. The
economic use approach, which was developed in 1988, combines brand equity and
financial measures, and has become the most widely recognized and accepted
methodology for brand valuation. It has been used in more than 3,500 brand
valuations worldwide.
RATIONAL FOR CHOOSING INTERBRAND’S BRAND VALUATION
METHOD:
Brand value can be measure by using two approaches, first being Research based
and other being Financial based approach. The problem with these approaches is
they are either missing Marketing aspects or Financial aspects. Both these aspects
have to considered to find the true value of a brand.
Interbrand‘s valuation is an economic use approach that combines both brand
equity & financial measures.
Brand Strength Index:
BSI is a competitive benchmarking tool that identifies the strength of a brand. It is
broadly classified into two types.
INTERNAL FACTORS:
Internal factors are broadly classified in to four types. We are relying on the
secondary data for measuring these four factors, because consumers are not
aware/concerned about the internal factors of a brand & Internal factors are
maintained in secrecy by a company.The four factors are:
CLARITY: Its about what the brand stands for in terms of its values,
positioningproposition, audiences, customer insights & drivers. We assign Maggi
a score of 10 in this aspect because without these values articulated internally and
shared in the organization it is not possible for a brand to be the leader in the
BRAND STRENGTH
EXTERNAL FACTORS
INTERNAL FACTORS
category consequentially over the years.
COMMITMENT: It is the extent to which the brand receives the support in terms
of time,influence& Investment. We assign Maggi a score of 10 in this aspect the
reasons are stated below.
Brand extension for other category of products that shows company‘s
interest in the brand.
Brand Campaign‘s such as ―2 Min meinkhushiyan movement‖ & other
advertisements shows company‘s time & Investment in the brand.
PROTECTION: It is how secured brand in dimensions such as legal protection,
proprietyingredients, scale or geographical spread. We assign Maggi a score of 8
in this aspect. The reasons are stated below
The category itself doesn‘t have legal protection because the products
across the brand are easily replicable.
When it comes to scale & geographical spread Maggi has early mover
advantage and a strong distribution channel and presence of over 4.1
million outlets.
RESPONSIVENESS: It is the ability of the brand to respond to market changes,
challenges& opportunities. The brand should have a sense of leadership internally
& a desire and ability to constantly evolve & renew itself.
1. What are the various brands of noodles you are aware of?
MAGGI 100
YIPEE 30
KNOR 20
TOP RAMAN 40
WAI WAI 0
FOODLES 5
INTERPRETATION
Out of 100 respondents, 100 are aware of maggi,25 of yippee, 20 of knor, 40 of
top raman and 5 of foodles
0
20
40
60
80
100
120
MAGGI YIPEE KNOR TOP RAMAN WAI WAI FOODLES
2. Identify the various brand of noodles:
MAGGI 100
YIPEE 60
KNOR 50
TOP RAMAN 30
WAI WAI 0
FOODLES 5
INTERPRETATION
Out of 100 respondents, 100 identify maggi, 60 identify yippee, 50 of knor, 30 of
top raman and 5 of foodles.
0
20
40
60
80
100
120
MAGGI YIPEE KNOR TOP RAMAN
WAI WAI FOODLES
Column2
3. Identify the given taglines with their respective brands
MAGGI 80
YIPEE 50
KNOR 60
TOP RAMAN 5
WAI WAI 0
FOODLES 20
INTERPRETATION
Out of 100 respondents, 80 identify tagline of maggi, 50 identify yippee, 60 of
knor, 5 of top raman and 20of foodles.
0
10
20
30
40
50
60
70
80
90
MAGGI YIPEE KNOR TOP RAMAN
WAI WAI FOODLES
Column3
4 Out of your last 5 purchase of noodles how many times did you buy each
of the following brands or out of last 5 times you had noodles?
MAGGI 60
YIPEE 10
KNOR 20
TOP RAMAN 10
WAI WAI 0
FOODLES 0
INTERPRETATION
Out of 100 respondents, 60 purchased maggi in the last 5 times, 10 identify
yippee, 20 of knor and 10 of top raman.
0
10
20
30
40
50
60
70
MAGGI YIPEE KNOR TOP RAMAN
WAI WAI FOODLES
Column3
5. Which brand delivers their brand‘s promise most?
MAGGI 60
YIPEE 20
KNOR 10
TOP RAMAN 10
WAI WAI 0
FOODLES 0
INTERPRETATION
Out of 100 respondents, 60 agreed for maggi, 20 for yippee, 10 of knor and10 of
top raman.
0
10
20
30
40
50
60
70
MAGGI YIPEE KNOR TOP RAMAN WAI WAI FOODLES
6. From the brand listed below which brand do you think have best
advertisement?
MAGGI 50
YIPEE 30
KNOR 15
TOP RAMAN 5
WAI WAI 0
FOODLES 0
INTERPRETATION
Out of 100 respondents, 50 agreed for maggi, 30 for yippee, 15 for knor and5 of
top raman.
0
10
20
30
40
50
60
MAGGI YIPEE KNOR TOP RAMAN WAI WAI FOODLES
7. Which attributes are important for you in noodles: (tick the ones which are
important for you)?
TASTE 40
VALUE FOR MONEY 10
NON STICKY 10
VARIETY 5
HEALTHY 15
QUALITY 10
CONVINIENT(EASY TO COOK) 10
INTERPRETATION
Out of 100 respondents, 40 agreed for taste, 10 for value for money, 10 for non-
sticky, 5 for variety, 15 for healthy, 10 for quality and10 for convenient.
05
1015202530354045
8. Are you aware about the concept of ―Merimaggimein 2 min
kikhushiyan‖ (Your experience with the brand)?
YES 85
NO 15
INTERPRETATION
Out of 100 respondents, 85 agreed that they know the concept and other 15
denied.
0
10
20
30
40
50
60
70
80
90
YES NO
9. Have you tried different variants of maggi?
YES 80
NO 20
INTERPRETATION
Out of 100 respondents, 80 tried different variety and 20 denied.
0
10
20
30
40
50
60
70
80
90
YES NO
10. Which of the following maggi variant you relish?
2 MINUTE NOODLES 70
AATA NOODLES 25
VEG MULTIGRAIN 5
INTERPRETATION
Out of 100 respondents, 70 relish 2 minute noodles, 25 relish aata noodles and 5
relish veg multi-grain.
0
10
20
30
40
50
60
70
80
2 MINUTE NOODLES AATA NOODLES VEG MULTIGRAIN
11. What comes in your mind first when you hear the word Maggi?
NOODLE 100
SNACK 0
FAST FOOD 0
INTERPRETATION
Out of 100 respondents, 100 thinks of noodle when they hear word maggi.
0
20
40
60
80
100
120
NOODLE SNACK FAST FOOD
12. Are you aware of Maggi Cuppa Mania?
YES 85
NO 15
INTERPRETATION
Out of 100 respondents, 85 aware of maggicuppa mania and 15 are not aware of
cuppa mania.
0
10
20
30
40
50
60
70
80
90
YES NO
13. Will you buy maggi again?
YES 100
NO 0
INTERPRETATION
Out of 100 respondents, 100 says that they buy maggi again.
SUGGESSTIONS
0
20
40
60
80
100
120
YES NO
1. Maggi should take more concentration on their different varieties.
2. All other brands need more advertisement if they want to increase their
sale and want to create brand image like maggi.
3. All other brands need to enhance their quality , their packaging design and
to reduce their cost to stable in market.
4. Basically people are quite aware about Top Ramen but Yipee and Knoor
have to do something because they are not capturing the minds of costumer.
5. Top Ramen have to add something to attract the minds of their costumers.
6. Identification of the particular brand is very necessary through their
taglines but Top Ramen having boring type tagline which doesnot capture in the
minds of costumers they have to work on it.
7. Costumer are not loyal about the Top Ramen and Yipee so they have to
enhance their attributes and their brand value to having loyal costumer.
8. All brands have to work on their taste and health products except Maggi.
9. Maggi should also have to promote their cupamania if they want to rise
that product in the market.
LIMITATIONS
1)Consumer are sometimes unwilling & hesitated in replying.
2) The accuracy of the result is also limited to reliability of methods of
investigations, measurement & analysis of the data.
3) The study is based on primary data hence personal bias cannot be over ruled.
4) The study cannot be generalized across the population across the population, as
the sample size is small.
Questionnaire
1. What are the various brands of noodles you are aware of?
2. Identify the various brand of noodles:
3. Identify the given taglines with their respective brands:
Yipee
Noodles
Top
Ramen
WaiWai Maggi
Noodles
HorticksFoodes Knorr
Soupy
Noodles
Health bhi
taste bhi
The better
noodles
Spread the
smile
Don‘t be a
noodle, be a
snoodle
‗‖its better
,no‖
Khakepiyoya
pee kekhao
‗Munch it,
lunch it,
soup it‘
4. Out of your last 5 purchase of noodles how many times did you buy each of the
following brands or out of last 5 times you had noodles?
Yippee Noodles:
Top Ramen:
WaiWai:
Maggi Noodles:
Horlicks Foodles:
Knorr soupy noodles:
5. Which brand delivers their brand‘s promise most?
Yippee Noodles:
Top Ramen:
WaiWai:
Maggi Noodles:
Horlicks Foodles:
Knorr soupy noodles:
6. Which of the following brands advertise there product the most:
Yippee Noodles:
Top Ramen:
WaiWai :
Maggi Noodles:
Horlicks Foodles:
Knorr soupy noodles:
7. Which attributes are important for you in noodles: (tick the ones which are
important for you)
Fun
Taste
Convenient (East to cook)
Healthy
Variety
Quality
Packging
Value for Money
Non Sticky
Long noodles
8. Are you aware about the concept of ―Merimaggimein 2 min kikhushiyan‖
(Your experience with the brand)?
Yes:
No:
9. Have you tried different variants of maggi?
o Yes
o No
10. Which of the following maggi variant you relish?
o 2-minutes masala maggi
o Atta noodles
o Vegetable multi grain noodles
o Chicken Maggi
11.What comes in your mind first when you hear the word Maggi?
o Noodles
o Snacks
o Fast food
o Others
12.Are you aware of Maggi Cuppa Mania?
o Yes
o No
13.Will you buy maggi again?
o Yes
o No