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MINOR PROJECT REPORT

ON

REBRANDING OF MAGGI

Submitted in partial fulfillment of the requirements


for the award of the degree of

BACHELOR OF COMMERCE(HONS)
(Session 2018-2021)

Under the Guidance of: Submitted By:


SANAM SHARMA SAMAKSH GAUR
Assistant Professor
MAIMS BCOM II Semester
Enrollment No.40361188818

Maharaja Agrasen Institute of Management studies


(Affiliated to Guru Gobind Singh Indraprastha University, New Delhi)
STUDENT UNDERTAKING
This is to certify that I have completed the project titled ‘REBRANDING OF
MAGGI’ under the guidance of ‘MS SANAM SHARMA’ in partial fulfilment of
the requirement for the award of degree of Bachelor of Commerce (Hons) at
Maharaja Agrasen Institute of Management Studies, Delhi.

SAMAKSH GAUR
(40361188818)

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CERTIFICATE
This is to certify that project titled ‘REBRANDING OF MAGGI’ is an academic
work done by “Samaksh Gaur” submitted in the partial fulfilment of the
requirement for the award of the degree of Bachelor of Commerce (Hons) from
Maharaja Agrasen Institute of Management Studies, Delhi, Under my guidance &
direction. To the best of my knowledge and belief the data & information
presented by him in the project has not been submitted earlier.

MS. SANAM SHARMA

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ACKNOWLEDGEMENT
Apart from the efforts of me, the success of any project depends largely on the the
encouragement and guidelines of many others. I take this opportunity to express
my gratitude to the people who have been instrumental in the successful
completion of this project. A special note of Thanks goes to Mrs. Sanam Sharma. I
would also like to thanks my friends for helping and making project successful.

SAMAKSH GAUR

(40361188818)

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TABLE OF CONTENTS
Student Undertaking .................................................................................................................ii

Certificate .................................................................................................................................iii

Acknowledgement ....................................................................................................................iv

CHAPTER-1 INTRODUCTION

1.1 Introduction to the company .......................................................................................2


1.2 Introduction to the concept..........................................................................................9

CHAPTER-2 THEORITICAL BACKGROUND

2.1 Why Rebranding is Required ....................................................................................16


2.2 How to Rebrand.........................................................................................................19

CHAPTER-3 RESEARCH METHOLOGY

3.1 Objective of the study ...............................................................................................25


3.2 Research Design .......................................................................................................25
3.3 Data Collection .........................................................................................................26
3.4 Limitation of Project ................................................................................................26

CHAPTER-4 ANALYSIS

4.1 Case study analysis .................................................................................................28


4.2 SWOT Analysis ......................................................................................................42

CHAPTER-5 FINDING AND CONCLUSIONS ..................................................................45

CHAPTER-6 SUGGESTIONS ..............................................................................................48

BIBLIOGRAPHY

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CHAPTER – 1

1
INTRODUCTION
The project entitled - Rebranding of Maggi deals with study of the maggi brand
that was launched in India in the year 1983, by Nestle India Limited, which
became synonymous with noodles. Mainly, the project studies the market
condition of maggi before or after when it was banned in india and promotional
strategies that are adopted by Nestle India Limited for maggi over the years, what
all strategies they adopted to become a well known and well established brand.
And also to know about the concept of branding and rebranding and also to know
the reasons that why it is required for every company.

INTRODUCTION TO THE COMPANY

 FMCG (Fast Moving Consumer Goods)


These are the durable products. They stay in the better condition for a very
short specified time. Hence their selling in quick succession in necessary.
Price of such products are relatively low and also profit margin is least.
Some examples of FMCG product selling companies are Coca Cola, Pepsi,
Hindustan Unilever, Nestle, Amul, Parle Agro etc.

Hindustan Unilever is India’s top FMCG product making company with


annual turnover exceeding 4.0 billion dollar. Second position is held by
Colgate – Palmolive with annual turnover more than 17.08 billion dollar and
third place is occupied by ITC limited which make more than $7 billion
turnover.

The success of FMCG depends greatly on its marketing strategy. An FMCG


marketer pursues a wide combination of strategies. For instance, when prices
are competitive, the company would use an extensive distribution network,
design suitable advertising and sales promotion schemes from time to time.

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INTRODUCTION TO THE NESTLE

NESTLE is a Swiss multinational food and drink company headquartered in


Switzerland. It is the largest food company in the world, measured by revenues and
other metrics, since 2014. It ranked No. 64 on the Fortune Global 500 in 2017 and
No. 33 on the 2016 edition of the Forbes Global 2000 list of largest public
companies.
Nestlé's products include baby food, medical food, bottled water, breakfast cereals,
coffee and tea, confectionery, dairy products, ice cream, frozen food, pet foods,
and snacks. Twenty-nine of Nestlé's brands have annual sales of
over about US$1.1 billion, including Nespresso, Nescafé, Kit Kat, and Maggi.
Nestlé has 447 factories, operates in 189 countries, and employs around 339,000
people It is one of the main shareholders of L'Oreal, the world's largest cosmetics
company.

HISTORY OF NESTLE

Nestlé’s origins date back to the 1860s, when two separate Swiss enterprises were
founded that would later form the core of Nestlé. In the succeeding decades, the
two competing enterprises aggressively expanded their businesses throughout
Europe and the United States.

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In 1866, Charles Page (US consul to Switzerland) and George Page, brothers
from Lee County, Illinois, USA, established the Anglo-Swiss Condensed Milk
Company in Cham, Switzerland.

Their first British operation was opened at Chippenham, Wiltshire, in 1873.


In 1867, in Vevey, Henri Nestlé developed milk-based baby food and soon began
marketing it. The following year saw Daniel Peter begin seven years of work
perfecting his invention, the milk chocolate manufacturing process. Nestlé was the
crucial co-operation that Peter needed to solve the problem of removing all the
water from the milk added to his chocolate and thus preventing the product from
developing mildew.

Henri Nestlé retired in 1875 but the company, under new ownership, retained his
name as Société Farine Lactée Henri Nestlé.
In 1877, Anglo-Swiss added milk-based baby foods to their products; in the
following year, the Nestlé Company added condensed milk to their portfolio,
which made the firms direct and fierce rivals.
In 1879, Nestlé merged with milk chocolate inventor Daniel Peter.

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n 1904, François-Louis Cailler, Charles Amédée Kohler, Daniel Peter, and Henri
Nestlé participated in the creation and development of Swiss chocolate, marketing
the first chocolate – milk Nestlé.
In 1905, the companies merged to become the Nestlé and Anglo-Swiss Condensed
Milk Company, retaining that name until 1947 when the name 'Nestlé Alimentana
SA' was taken as a result of the acquisition of Fabrique de Produits MaggiSA
(founded 1884) and its holding company, Alimentana SA, of Kempttal,
Switzerland. Maggi was a major manufacturer of soup mixes and related
foodstuffs. The company's current name was adopted in 1977.

HISTORY OF MAGGI – INDIA

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Maggi, the name synonyms with the noodles in India has experienced a bumpy
ride. From capturing the 90% market share (prior to the ban) of the noodles to
getting banned, the brand has seen it all. Let us have a detailed look at the journey
of Maggi in India:

 Year 1983: Nestle launched the first noodle product in India with the brand
name, ‘Maggi’ with the slogan – two minutes, which became an instant.

 Year 1997: Because of stiff competition from the contemporary brands, the
demand for the Maggi took a downturn. The company changed the taste of the
Maggi and came up with the flavoring agent called the ‘Tastemaker’. However, it
could not increase the demand for the product and turned out to be a total failure.
Furthermore, it was hard to change the conventional eating habit of the people in
India.

 Year 1999: Maggi uses the old formula to prepare the noodles with the main
objective to increase the sales. It came up with the punch line, “Fast to Cook,
Good to Eat”.

 Year 2001: Maggi Noodles grabbed a large instant noodles market share in India.

 Year 2009: Maggi completed 25 years of Maggi noodles and at the same time
also rolled out a new product called the Maggi Pazzta.

 Year 2012: Bollywood superstar, Mr. Amitabh Bachchan was made the brand
ambassador of Maggi.

 Year 2015: This is a period when the troubles started for the Maggi brand. The
Food Safety and Standards Authority of India (FSSAI) imposed a nationwide ban
on Maggi due to the presence of a high amount of lead and Monosodium
Glutamate (MSG) in the noodles. Before the ban, the company enjoyed around
80%-90% market share but after the ban, its share plunged to zero.

 Year 2016: The countrywide ban on Maggi was lifted was lifted by the Bombay
High Court on 13 August 2015 and in the next year i.e. 2016, Maggi was
relaunched in the Indian market by the Nestle India after getting the clearance
certificate from the National Accreditation Board for Testing and Calibration
Laboratories (NABL).
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 Year 2019: Maggi noodles find itself in the hot soup again after the company
admitted to the Supreme Court of India that its noodles contain the lead content.
At present, the company has decided to release the advertisement campaigns
mentioning the ‘Trustworthy Facts’ about its noodles and win the trust of the
people in India.

PRODUCTS OF MAGGI :

 NOODLES

 MAGGI 2- MINUTE NOODLES :

MAGGI 2- MINUTE NOODLES is one of the largest most loved food brands
that defines instant noodles in india . contuning to spread joy as it has done for the
last 25 years, your favourite MAGGI noodles is a rasty as ever and even provides
essential nutrients for all stage of your life.

___________________________

MAGGI 2- MINUTES NOODLES

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 MAGGI VEGETABLE ATTA NOOODLES :

An offering that exemplifies “Taste bhi Health bhi”, magi vegetable atta noodles is
tasty because it is loaded with everyone’s favourite Maggi masala and healthy
because it now has more real vegetables and it is packed with power of fibre

MAGGI VEGETABLES ATTA NOOODLES –


Masala Yo! And Chilly Chow Yo! Packed with Real Vegetables

 MAGGI CUPPA MANIA

Each offering of maggi noodles has been developed keeping in mind the
Indian palate and what you like. Since in today’s fast paced busy life,
multitasking is a reality, you need something that fits with your rushed
lifestyle – a product which is tasty and healthy, is convenient to prepare and
eat and also satisfies your hunger

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MAGGI CUPPA MANIA
Maggi cuppa mania is a combination of all of the above. In easy to carryon-the-go
cup format, MAGGI cuppa mania comes in two mouth watering variants masala
Yo! And Chilly Chow Yo! Packed with real vegetables and goodness of calcium,
‘just add garam paani’ to the noodles and voila! A cupful of delicious MAGGI
cuppa mania is ready for you to carry on jaani.

INTRODUCTION TO THE CONCEPT

 BRANDING

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Branding is all of the ways you establish an image of your company in your
customers’ eyes.

By building a website that describes what you offer, designing ads that promote
your goods and services, selecting specific corporate colors that will be associated
with your company, creating a logo, and featuring it across all your social media
accounts, you are branding your company. That is, you are shaping how and what
people’s perceptions of your business are.

And what your customers say about your brand is the reality (not what you’d like
them to think). It’s the impression that pops into their minds when they hear your
business’ name. It’s based on a feeling they have that is based on their experiences
they’ve had with you, good or bad.

The purpose of branding is to simply and easily help your customers understand
what you offer and how you’re different. But it’s not only a USP (unique selling
proposition), it is the combination of all the ways you communicate what you stand
for.

In addition to your logo and corporate colors, you can communicate your brand
message through:

 Your store environment and atmosphere


 How your staff members treat customers
 How your staff members dress
 The products you carry
 The price you charge
 Product packaging
 Public relations
 Public speaking
 Direct mail
 Sponsorships
 Advertising
 Nonprofit partnerships
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If your business does not yet have a consistent brand, or you don’t like what your
brand currently stands for, it’s time to rebrand. Here are some steps to take to
shape public perception for the better:

 Identify what your customers love most about your business. What makes yours
stand out? What are your strengths?

 Create a brand message that conveys what your business aims to do for its
customers – what you’re best at. Geico promises to save you 15% in 15 minutes.
That’s its brand promise. Marriott promises quiet luxury. What are you
promising your customers? And are you delivering?

 Make sure your visual elements match your message, and your brand. If you’re
promising innovation, don’t use greys and boring images.

 Develop standards for employee dress and behavior that support your brand
promise. Make sure they understand what your brand is and can support it.

 Apply your visuals across every marketing tool you use, from advertising to
signage to store displays to mailings to shopping bags.

 REBRANDING :
Rebranding is the process of changing the corporate image of an
organisation. It is a market strategy of giving a new name, symbol, or
change in design for an already-established brand. The idea behind
rebranding is to create a different identity for a brand, from its competitors,
in the market. here are several reasons for a company to go for rebranding.
One prominent factor is to connect with customers. Rebranding is good for
the business, but at the same time it may be risky.

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There is always a possibility that the consumers do not like the new brand.

Rebranding is a marketing strategy in which a new name, term, symbol,


design, or combination thereof is created for an established brand with the
intention of developing a new, differentiated identity in the minds of
consumers, investors, competitors, and other stakeholders. Often, this
involves radical changes to a brand's logo, name, legal names, image,
marketing strategy, and advertising themes

Rebranding is the creation of a new look and feel for an established product or
company.”
“The usual goal of rebranding is to influence a customer’s perception about a
product or service or the company overall.”

Rebranding can be good for a company because it can boost sales. Also with
goods, rebranding can extend a product’s cycle in the market.
However, if you don’t do it properly, it can be catastrophic for the company.
A rebranding process that goes wrong may break a company’s connection with its
loyal customers. In fact, it can even take away the whole meaning of its brand.

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Why do companies rebrand? There are many reasons why a company may wish to
rebrand. Perhaps there was been too much negative press. The rebranding may be
in response to changing consumer habits. No matter what reasons are they can
always be categorized as either proactive or reactive :

 Proactive Rebranding

Soometimes a company sees a reason to rebrand to sieze an apportunity or


thwart potential threats in future. Proactive rebranding might happen in
following situations :

1. Predicted Growth : When a company is preparing for significant growth,


especially international growth or preparing to go public, it may be a useful
idea to rebrand to appeal to new markets. Your products and services may
need to be rebranded into a consolidated brand that will appeal to multiple
manufacturing markets: both your existing and potential customers.

2. Relevancy : When you realize that your manufacturing brand may be starting
to lose relevancy in the minds of existing or potential clients, it’s time to
consider rebranding. Part of the point of branding at all is to demonstrate how
your manufacturing company’s products and services are relevant to clients
and customers.

3. You Enter a New Line of Business : This is related to three above, but as
your manufacturing company expands, you may enter a new line of business
or simply expand the products and services that you offer to current and
potential customers.

4. New Audience : When you want to appeal to a new base of potential


customers, rebranding may be a way to do so. Rebranding is a way to create
opportunities to speak to a new demographic.

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 Reactive Rebranding

Other times companies rebrand in reaction to an event that is so significant that


the existing brand mustr be changed. Reactive rebranding might happen in
situations like the ones listed below :

 Merger or Acquisition: When companies merge or acquire other companies


(and even when they break apart), rebrandings are often required. That’s how
we’ve gotten brand names like Pricewaterhouse Coopers and Bank of New York
Mellon. When AT&T broke up into three separate companies in the late 1990s,
Lucent Technologies was born. These types of rebrandings are very common and
often go through multiple iterations.

 Legal Issues: There are a number of different legal issues that could cause a
company to rebrand. Trademarks are often at the root of these rebranding
examples. That’s why it’s so important to conduct an exhaustive trademark
search and obtain the trademark rights to your brand name before you launch it.

 Competitive Influences: Sometimes a company’s competitors’ activities can be


the catalyst to a rebranding. When a competitor renders your brand useless or
dated, a rebranding could help you regain a foothold in your market and give you
the facelift you need to effectively strike back.

 Negative Publicity: Remember a company called Andersen Consulting? It was


part of a larger company along with the accounting firm Arthur Andersen that
was tied to the collapse of Enron. Andersen Consulting was granted
independence from its parent company in 2000, and on New Year’s Day 2001,
the consulting company was reborn as Accenture, representing a great example of
effective rebranding in response to negative publicity.

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CHAPTER – 2

15
THEORITICAL BACKGROUND

 WHY REBRANDING IS REQUIRED?

On average, organizations and brands change or update their brands about once
every seven years. This often involves restyling logos, color palettes, visual
language, and the photographic style, in addition to strategic repositioning. In a
small number of cases, the name of the organization is also changed during this
process. Although there is usually one leading reason for making the change,
the motivation behind a rebranding project is often a combination of various
factors. Here is an overview of the ten most common reasons for a corporate
rebranding.

 Top 10 Reasons for Rebranding :

1. Mergers, Acquisitions, And Spin-offs :

For the most part, changes in business ownership, such as mergers, acquisitions,
and spin-offs, result in an immediate rebranding. The aim here is not only to make
the change visible, but also to comply with legal and regulatory requirements. In
the case of spin-offs—sometimes termed demergers—the newly created company
is obliged to develop its own brand. This makes clear that it is no longer part of the
larger organization.
Over the past few years, this process has taken place at grid operators, which
emerged from their energy companies. Some results have been the creation of
companies such as Enexis, Alliander, and Stedin. There are several possibilities
when it comes to mergers and acquisitions. The new company may develop a
completely new brand, as in the case of @home, Casema, and Multikabel, which
together became Ziggo. In other cases the name of one of the parties is used, e.g.
Getronics, which continued under the KPN brand following its acquisition by
KPN.

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2. Repositioning :

If implemented properly, a change to the positioning and brand promise of a


company has major consequences for the organization. Everything is adapted in
line with the organization’s new strategy and promise, its products or services, HR
policy, customer contact, corporate identity, and so on. Rebranding makes this
change visible for all stakeholders. We saw an example of this with Gamma, which
repositioned itself by moving away from traditional home improvements (DIY—
do it yourself) and towards interiors and enjoyment.

3. Internationalization :

In some cases, rebranding is necessary so that a brand can also be used


internationally. This may be because the brand name is too specific to a particular
country. In certain countries, a brand name may also conjure up the wrong
associations. Organizations that sell the same products in several countries, but
under different brand names, are also increasingly opting to use one brand
internationally. Famous examples include the rebranding of Jif to Cif, Smiths to
Lay’s, Raider to Twix, and Postbank (which was only used in the Netherlands) to
ING, the brand that is used everywhere internationally.

4. Changing Markets :

For some companies, changes in the marketplace mean that their very existence
comes under threat. The digital transformation of society in particular is making it
necessary for certain sectors to reinvent themselves. Different requirements call for
a different product to be offered. One example, also in the Netherlands, the Free
Record Shop, adapted its logo, corporate identity, and retail environment to give its
brand a boost.

5. Bad Reputation :

If a brand has a bad reputation and this is having a serious impact on its operating
results, rebranding can ensure that negative associations with the brand are
ameliorated or dispelled. It is important here that changes are implemented both
internally and externally. This is the only way that a rebranding project can remove
any negative associations with the brand and succeed. The rebranding of
VendexKBB to Maxeda is one example of this.
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6. Conflict With Stakeholders :

Developing a brand may in itself also lead to a rebranding. This may be because
the new style is too similar to an existing brand, for example. Such a situation was
faced by Multimate, which, after its rebranding, lost a lawsuit against IKEA as the
two brands had become too similar. Multimate had to make sure that its new logo
was no longer visible within a period of six months.
Another reason is that aspects of a rebranding can sometimes be so negatively
received by internal and external stakeholders that it stands in the way of the
organization’s success. One example involved the identity change by Gap clothing
company, which decided within one week that it would keep its original logo after
all.

7. New CEO :

A new CEO often brings a new lease on life to an organization. This may result in
major organizational changes that also influence the course the company takes.
Such a situation arose at Apple, for example, following the return of Steve Jobs in
1997. At that time Apple had to change in order to survive. Jobs himself took a
hand in choosing the new logo, which changed from the rainbow-colored apple to
the more modern metallic variant, in addition to steering the company’s shift in the
modern era.

8. Outdated Image :

One of the most common reasons for undertaking a corporate rebranding project is
modernization. Trends mean that over time brands come across as old-fashioned if
they have not been updated. Although in many cases it is not the main reason, a
more modern image is often one of the motivations behind a rebranding project.

9. Changing Brand Portfolio :

Over the years, some organizations develop or acquire new brands. In time, this
results in a broad brand portfolio that is no longer coherent. Furthermore, carrying
many different brands often leads to high costs when it comes to maintaining and
promoting the brand. In such cases, rebranding ensures that the entire brand
portfolio is brought into line and tells a clear story about the organization. A
number of years ago
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10. Further Development Of Brand Components:

Years ago, for the majority of organizations, a corporate identity consisted of just a
logo, a primary color palette, and typography. Brand elements such as
photographic style, visual language, and a secondary color palette had not been
defined back then. This meant that there was a great deal of freedom when it came
to applying the elements, with the result that the brand expressions ultimately
became misaligned. In such cases, the further development of an organization’s
brand is a must to ensure it is coherent and recognizable.

HOW TO REBRAND?

 Ways for rebranding :

1. Think about the big picture :


Don’t spend too much time obsessing over small details. It’s understandable that
you want elements of your logo to have a deeper meaning, but most people won’t
pay such close attention to the design.

2. Focus on what makes your brand unique :


Your brand should clearly state what your business is all about. Many businesses
don’t zero in on what makes them special or unique. They try to envelope all
customers and markets and end up with a vague brand that blends in with the
masses. Remember, a brand that means everything is a brand that means nothing.

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3. Hire an expert :
It often happens that you and your team members are too invested in the brand to
be objective. In this case, hire a consultant with an unbiased opinion. This help will
be invaluable while you rework your brand.

4. Consider your audience :


Understand who your target audience is. What new customers are you trying to
reach, and who is already loyal to your brand? When rebranding, you want to make
your new look and feel is gaining attention, but you don’t want to lose already
existing customers in the process.

5. Be strategic with your announcement :


When developing your announcement strategy, remember that people don’t care
about names or logos — they care about how the rebrand is going to affect them.
At the same time, most people shy away from change. Make sure to retain positive
aspects of the company your customers love. In addition, explain why the changes
you’re making will benefit both the company and your customers. This way,
customers can hold onto aspects they love, and gain fresh, exciting benefits, too.

6. Consider social media :


If you’re choosing a new business name, make sure the domain is available, and
make sure your desired social media addresses and links are available, too. The last
thing you want to do is totally rebrand your business and then discover the name is
already taken by a different person or company on Twitter and Instagram.

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7. Don’t leave traces of your old brand behind :
Make sure you rebrand everything. It gives an unprofessional appearance if you
leave anything outdated behind. If customers see your new logo in one place and
your old logo in another, they’ll think of your company as disorganized and
confusing.

8. Don’t shock your customers :


Let your audience and customers know a big surprise is coming. Post about it on
social media. Give them hints that you have an exciting rebrand coming in two
weeks. Don’t hit them out of left field with an unexpected change.

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 PROCESS OF REBRANDING

 STEPS OF REBRANDING

 Introspection
Self-awareness is key to successful rebranding. You need to know the answers to
these questions:

 Who are you?


 What do you do?
 What do you want to be known for?
 Why do you want to rebrand at this particular moment in time?

 Market Research
Get back in touch with your customers. Does your current image fit their
wants and needs? Do you want to keep the same customers, or reach out
to new people? Can you categorise your audience into groups and, in
doing so, create buyer personas?

Ask your existing customers and members of your target demographic for
their input on your brand story, products, and existing reputation. You can
use surveys or focus groups to solicit their opinions. This information will
help you align your new brand with your intended audience.

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 Decide What Makes You Unique
Decide what makes you unique, and think about how you can use your USPs as a
focal point of the rebranding process. For instance, do you pride yourself on selling
only high-end products, or are you keen to market yourself as budget friendly?

Remember, you shouldn’t try to appeal to everyone. Your job is to focus on


finding your niche and servicing their needs.

 List & Redesign Your Brand Touchpoints


Make a list of all your material that needs rebranding. This includes flyers,
websites, business cards, signs, blogs, and posters. Every time you experiment with
a new design, ask yourself whether it fits with your broader brand strategy.

Think about your brand touchpoints – any point at which a customer or potential
customer interacts with your business.

 Make Sure Everyone’s On Board


A rebrand will flop if your employees aren’t convinced that it aligns with your
business values and strategy. Get their feedback at all stages of the design process.

Before you take your new brand to the public, give them the opportunity to tell you
what they think. You can set up an anonymous comment box if you think it will
encourage them to share their thoughts.

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Take Your New Brand Public
Make your public launch quick and decisive. Do not try to phase in changes
gradually, because this will only confuse your customers. It should be implemented
within a few days.

Use your rebrand as a means of generating publicity and engaging with customers.
For example, if you have a mailing list, send them a few teaser emails in the run-up
to the launch, hinting at the changes to come.

Get Feedback

The work doesn’t stop when you unleash your new brand. Get some feedback from
your target audience, and analyse your business performance to assess the impact
of rebranding on your bottom line. You can do this informally, by asking
customers in person, or you can use online surveys and focus groups.

Rebranding can be a huge undertaking, but also marks a fresh, exciting phase in
the life of your business. Done right, it will excite and re-engage your customers or
leave you in a strong position to attract a new audience.

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 For example : Pepsi India done its REBRANDING by changing its logo over
the years

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CHAPTER – 3

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RESEARCH METHOLOGY

OBJECTIVE OF THE STUDY

 THE OBJECTIVE OF THE PROOJECT ARE :

1. To understand the concept of branding and rebranding


2. To know about the reasons of ban of maggi
3. To analyze the marketing strategies of nestle the adopted for
rebranding of maggi

RESEARCH DESIGN :

 Research design is defined as a framework of methods and techniques chosen


by a researcher to combine various components of research in a reasonably
logical manner so that the research problem is efficiently handled. It provides
insights about “how” to conduct research using a particular methodology. Every
researcher has a list of research questions which need to be assessed – this can
be done with research design.

 the research design of this project is descriptive form

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DATA COLLECTION :
Data collection is the systematic approach to gathering and measuring information
from a variety of sources to get a complete and accurate picture of an area of
interest. Data collection enables a person or organization to answer relevant
questions, evaluate outcomes and make predictions about future probabilities and
trends.

SECON DARY DATA :

Secondary data is research data that has previously been gathered and can be
accessed by researchers. The term contrasts with primary data, which is data
collected directly from its source.

Secondary data is used to increase the sampling size of research studies and is also
chosen for the efficiency and speed that comes with using an already existing
resource.

 This project has made with the help of secondary data from various
sources like reports, articles, news and etc.’

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CHAPTER – 4

29
ANALYSIS

CASE STUDY ANALYSIS

 REBRANDING OF MAGGI

 MAGGI NOODLES RULED IN INDIA

Nestle launched Maggi noodles with its captivating two-minute


tagline way back in 1982 when instant food was not popular in
India. Even after 31 years, it enjoys approx. 75% of the market share.
Three more products on the same lines were introduced after that namely
Top Ramen, Yipee, Foodles and Knorr Soupy Noodles.

Maggi surely had First Movers Advantage. Maggi was distributed in schools
so as to promote trials.This also may have helped.

30
When a brand creates a new category it sets a benchmark for quality. Maggi
did the same to the instant noodle category in India.

 This chart shows how maggi rules in india :

31
 MAGGI BANNED :

It was Sanjay Singh, a food inspector at the Uttar Pradesh government’s Food
Safety and Drug Administration, who spotted the label that claimed “no added
MSG (monosodium glutamate)" on the bright-yellow packets of Maggi noodles in
March 2014 during one of his routine raids on retail outlets. A PhD in organic
chemistry, Singh picked up a sample and sent it to the state laboratory at
Gorakhpur for testing. The result that came a few weeks later was positive—that
particular sample of Maggi noodles had MSG. Samples of Maggi noodles were
then sent to the Central Food Laboratory in Kolkata in June 2014.

The results that came after almost one year in April 2015 read: “MSG: Present and
Lead: 17.2ppm (parts per million)". The amount of lead found was over 1,000
times more than what Nestle India Ltd had claimed.

 FSSAI REPORT ON MAGGI :

 MCG major Nestle India said today that Maggi complied with the latest
guidelines of food safety regulator FSSAI and it does not add any ash to its
popular noodles.
 District administration of Shahjahanpur, UP, had slapped a fine on Nestle India
and its distributors last week after Maggi had allegedly failed to pass the lab test
32
and found ash content above the permissible limits for human consumption.
“Nestle wishes to categorically state that we do not add ash in any form
whatsoever during the manufacturing process of its Maggi noodles,” Nestle
India Chairman and Managing Director Suresh Narayanan told reporters here.

Speaking on the sidelines of a CII event here, he said the company has received
the order of the district administration and will decide on the future course of
action after studying it. “We are fully compliant with the latest FSSAI
guidelines which were issued in August-September this year...” he added.

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GUJRAT AND TAMIL NADU BAN MAGGI

Tamil Nadu banned the manufacture, stocking and sale of Maggi and three
other noodle brands — Wai Wai Xpress Noodles, Reliance Select Instant
Noodles and Smith and Jones Chicken Masala Noodles — on Thursday for
three months after samples of the products were found to contain
unacceptable levels of lead.
Uttarakhand, Jammu and Kashmir and Assam have banned the sale of
Maggi, while the Gujarat government has banned it and another noodles
brand — SK Foods — for violating food safety standards.

The Tamil Nadu Food Safety Department had sent samples of all four
brands from across the State for testing. Of the 17 samples lifted from
Chennai, the results of seven are out and six of them have been found to
contain lead higher than the mandated limit of 2.5 parts per million,
according to a press release.

The Tamil Nadu government has also sent notices to the manufacturers to
withdraw the stocks currently available in the State markets

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ANDHRA PRADESH ALSO BANNED MAGGI :

Though the ongoing Maggi controversy is creating furore in the food space, the
Telangana and Andhra Pradesh governments are yet to take a decision on whether
to impose a ban or not on the sale of Maggi noodles. While the Telangana Minister
for Health C Laxma Reddy said the government would take a decision after it
received the report from Institute of Preventive Medicine which was testing the
contents of Maggi noodles, the Andhra Pradesh Civil Supplies director Dayakar
said the State government so far had not taken any decision on the matter.

But since the issue has been causing serious concern, as it is a widely used product
in almost all households, a High Court lawyer Y Somaraju filed a public interest
litigation before the AP State Human Rights Commission and prayed for
immediate ban of the product in Telangana. He said though the IPM was testing
the product it would take some time for the laboratory results to be announced and
in the meantime the consumers might have to face the ill-effects.

The Commission issued notices to the Telangana Principal Secretary of Health and
Family welfare and asked the government to reply by June 30. Interestingly, a
random survey conducted by The Hans India has revealed that there has been a dip
in the sales of Maggi noodles in the city. While Big Bazaar has stopped the sale of
noodles, More Super Market said the sales had fallen drastically. Advertise With
Us

35
COMPANY RESPONE AND STRATEGIES :
At the end of May 2015, India’s Food safety administration (FDA) ordered Nestlé
India to recall its popular 2-minute Maggi noodles after tests showed that the
product contained high levels of lead and MSG. This case study looks at how the
situation developed, and how Nestlé reacted and managed the situation using
multiple digital channels.

21st May 2015 – Indian state orders recall of Maggi noodles Indian food
inspectors order Nestlé India to recall a batch of Maggi Noodles from the northern
Indian state of Uttar Pradesh claiming that tests have found Maggi instant noodles
"unsafe and hazardous" and accused Nestlé of failing to comply with food safety
law. Nestlé response: The initial response from the global FMCG Company
rejected the accusation that the noodles were unsafe and said on their website and
social media accounts that there had been no order to recall any products. A
statement on their website said that “The quality and safety of our products are the
top priorities for our Company. We have in place strict food safety and quality
controls at out Maggi factories… We do not add MSG to Maggi Noodles, and
glutamate, if present, may come from naturally occurring sources. We are
surprised with the content supposedly found in the sample as we monitor the lead
content regularly as a part of the regulatory requirements.”

1st June – Nestlé re-assures customers its noodles are safe Nestlé continues to
keep its customers up to date on the investigation into the safety of Maggi noodles
in India. On the official Maggi noodles India Facebook page, Twitter and website,
Nestlé states that extensive testing reveals no excess lead in Maggi noodles.

2nd June – Nestlé interacts with customers on social media thanking them for
their support Nestlé uses Twitter and Facebook to answer customers questions
about the levels of MSG and lead found in their noodles. The company continues
to re-assure customers that the noodles are safe and that they are a transparent
company working closely with authorities in India to resolve the issue. As well as
Nestlé explains the science behind the tests, what lead and MSG are and gives an
informative breakdown of the ingredients in their product.

36
@MaggiIndia makes an impressive effort to respond to every tweet from
customers on this issue with a

pre-prepared statement explaining that lead occurs naturally in soil and water.

3rd June – Nestlé launches a FAQ page on the official Nestlé website Nestlé
continues to engage in an active dialogue with customers on social media channels
Facebook and Twitter. As well as this the company created a FAQ page on the
official Nestlé website to answer all questions.

4th June
Nestlé backtracks and recalls all Maggi noodles from India After re-assuring
customers that its noodles are safe, the brand does a U-turn and decides to recall
Maggi noodles produced in India. Nestlé CEO Paul Bulcke spoke to the media and
said that “We are working with authorities to clarify the situation and in the
meantime Nestlé will be withdrawing Maggi noodles from shelves.”

16th June
Nestlé to destroy withdrawn noodles Nestlé decided to destroy more than
£32million ($50million) worth of Maggi Noodles in India after they were deemed
unsafe by regulators.

3rd July
Testing on Maggi noodles abroad finds levels of lead are within food safety levels
After the food safety scare in India Maggi noodles have been tested in other parts
of the world to reassure consumers that they are safe. Results from noodles tested
in the UK found that levels of lead in the product are within EU levels. Shortly
after the UK results were published, Canada also cleared Maggi noodles as safe.

37
SWOT ANALYSIS OF MAGGI
STRENGHTS :

1. With the presence in different product categories under the umbrella brand of
Maggi with large SKU’s (Stock keeping unit).Maggi have edge over its
competitors.
2. 1st Mover Advantage: Maggi has established itself a pioneer in changing the
eating habits & acceptance of Noodles as easy meal. Although now the market
is full of local & national players in different product categories but still Maggi
Holds market leader place .
3. High Customer Pull: With its distinguished promotion strategies & branding
hence creating strong customer connects had helped Maggi to have High
TOMA score.
4. Distribution Channel: Robust & well established distribution channel of the
parent company (NESTLE) is helping in making the product available in the
Market.
5. Popularization of Maggi in Restaurants & Road side stall, Canteens is
contributing to its success.
6. With rich history and financially stable parent company is on the growing
path.

WEAKNESS :

1. Risk of Over Dependence: Company is playing hard on the risk of over


dependability on Maggi Noodles, as 57% (2014) of the revenue of the brand
Maggi comes from Noodles knowing the fact that their market share has been
decreased significantly (in 2012 “84%” to 63% in 2014).Although with more
& more competitors the market size is still on the expansion mode.
2. Ill effects of Maggi: Awareness about ill effects of Maggi is gaining
momentum with more & more educated class becoming more health
conscious.

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OPPORTUNITIES:

1. Brand Extension: Maggi can expand its product categories by venturing out in
corn flakes ,Chips & Pickles( Although it failed in 2003 but now with presence
of local & national players in this product category ,company can reap the
benefits).
2. Although it’s been used majorly by the educated class in order to save their
time what if the long potential rural markets can also be penetrated with the
innovative strategies pertaining to consumers engagement with the brand.
3. Also Company can target the Restaurants chains by offering some customized
or special offerings to make it more short of part of the daily life of the
consumers.

THREATS :

1. Competition: Tough competition from the local & national player is the area of
concern for the co. .
2. Negative word of mouth: Propagation of ill effects of Maggi noodles through
online & Social Media possess threats to the existence of Maggi. As
deterioration in perceived value of the Maggi brand due to its Noodles product
category can affect the brand as a whole.
3. Commoditized name: For majority of population the name Maggi is
being commoditized for Noodles just like Coalgate, Surf etc.

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CHAPTER - 5

40
BIBLIOGRAPHY

WEBSITES :
www.maggiwekipedia.com
www.Maggi_noodles_bannes_in_india.com
www.branding-strategy-of-maggi-noodles.com
www.brandingandrebranding.com

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