Brand Extension- Maggi Sauces

1. ENCASHING THE BRAND EQUITY-
MAGGI SAUCES

2. Maggi
Sauce
BRAND EXTENSION

3. 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 noodles
• Recently, facing a lot of
controversy around lead being
present in Maggi noodles
• Positioned 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

4. Maggi Sauces
Quintessential
Rich Tomato
Ketchup & Sauce
Hot & Sweet
Tomato Chilli
Sauce
Tangy and
“chatkaaredar”
Imli Pichkoo

5. 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

6. MAGGI- MARKET POSITION(2014), PREPARED
DISHES & COOKING AIDS
•No. 1 in Instant Noodles
No. 1 Sauces
•No. 1 Pasta
•No. 2 in Soups

7. SAUCE BRANDS - INDIA
• Heinz
• Kissan
• Maggi
• Fun Foods
• Cremica
• Tops
Standard
• Mamamaria
• Arabbiata Sauce
• Ong’s of Bachun Food
Industries
Premium

8. NESTLE- PAST PERFORMANCE
9,806.27
9,061.90
8,302.26
Dec'14 Dec'13 Dec'12
Sales(in Rs.Cr.)
18%

9. SAUCE AND KETCHUP MARKET- 2005
37%
29%
34%
2005
Maggi Heinz Others

10. 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

11. 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”

12. 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 Sauce
The tangy and “chatkaaredar” Imli Pichkoo

13. 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

14. 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

15. 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

16. 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

17. 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

18. 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

19. COMPETITION
Maggi faces competition from national level
players as well as local brands

20. CONSIDERATION SET
Consumer considers Heinz, Del Monte, Kissan, Tops and Maggi while making a choice for the
ketchup
However, Kissan is the alternative preferred by the consumers who favor brand names while
making such a purchase decision

21. 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

22. 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

23. • Done By-
TANVI TANEJA (PGP 30398)
tanvi.taneja@hotmail.com
7706860070
BRAND MANAGEMENT (SECTION B)
Under the thoughtful and enriching
guidance of:
Prof. Sameer Mathur
Ph.D. (Carnegie Mellon University)
Marketing Professor (IIM Lucknow)