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Brand Extension Maggi and RepositioningSubject: product and brand management
To increase sales, Nestle agreed to reduce the price of Maggi noodles. It was madepossible using thinner and cheapeer packing material, the company also introduced the "money saver several packes" as a 2-in-1 package and 4-in-1 packages. As a result of the phenomenal volumeincreases 9700 tonnes in 1994 to 13000 tonnes in 1995 and later., euphoroia Maggi was, however, short-lived as sales stagnated in 1995, at the level of previousyears. The soup business, which the new party "threatned Knorr soups began in1995, offering 10 fragrances from Maggi 4 Company Redefining ITS initiated strategiestowards order market.In Maggi brand soup, stretch to include Indian products ethene tied with sets of company based Chordia food products, to start a pickled under the 1995 year the company also linked upwith Indian food fermentation (IFF), Chennai based company with the preparation of the food market of food popular southIndian, such as sambher, dosha, see and spices in consumer packaging company Dec1995 in communications saw great potential in the market are usesouth Indian market untabbed.In 1996 the products from the two companies have received the warm reaction from the market; were pretty poor sales in the regions in which they aunched. Analysts attribute the thefailure of these extensions that Maggi by Nestlé, seemed Particularly badly with traditional Indian categories atdealing products. Maggi noodles, performed poorly in 1996. Despite slow sales in the previous two years, Nestlé set sales HAD 25000 tonnesfor year. However, cross the Maggi couldn't even 14000 tons. Add to companywoes was the failure of Special Tonite, Maggi in a range of cooking sauces to providing'restaurant-as the key to food cooked in the home. the range includes Chicken oil offers such as sauce and tomato sauce for pizzas.Understanding these failures, and supported by the fact that broke brand Maggi finally evenin 1997 Nestlé continues to explore new opportunities to leverage the brand equity at Magginoodles. the company realized that kids who grew up on Maggi noodles by the end of the 1990-ies hadbecome teenagers. As a product that they associated with their childhood, they seemed to be moving away from it. To lure back those customers and to explore the possibilities of NewProduct, Nestlé Launched "Maggi noodles" in July, 1997, according to analysts, Maggi Noodles in part to cope with the growing popularity of competingnoodles started brand Top Ramen. Maggi Noodles was available in three versions, the tomatoes, the chicken Masala and the company hopes to replicate the success of Maggi noodles pasta withMaggi. Like most products launches STI, Maggi was backedby run Pasta through multi-media advertising campaign, including radio, television, outdoor and PrintMedia with the slogan "Tum pink Baby prices. The product, however, was the major obstacle. 75-g is priced at RS Maggi Noodles packwas 11, and 100-GM noodles Pack was available in RTAS 9. According to toanalysts, Nestlé managed to justify that price, the cost of the anomaly on customers who could not see the value added of anynoted Maggi Noodles (packaging and flavor options, similar to thoseof Maggi noodles). In addition, customers were not able to see any substantial difference and many betweenMaggi Cheap Macaroni Pasta, which was sold to players in the informal sector. the biggest challenge, however, was a taste of the new product. So the macaroni noodles isthicker than, Maggi Noodles do not absorb well and, consequently, Tastemaker
Brand Extension Maggi and RepositioningSubject: product and brand management
Didn't the keys very well. of interest, new product sales soon Died outand decline. In the end, Nestle Maggi Noodles was abandoned completelyfrom Even market.Nestlé has not yet recovered from the notoriously macaroni 's, where she learned to itshorror, who ousted Knorr, Maggi soup as the leader in the segment (at the end of 1997). True, a little saving grace for Maggi ketchup and sauces, it seemed, STI, which turns to the "rare" successful sequels Maggi. Were woven products, supported by a popular advertising campaign for the brand Maggi Hot & sweet sauce. Woven humorousadvertisements, featuring Pankaj.jangid Kapoor and Javed Jafri actors, used the slogan, "It'sdifferent." However, during mid-1997 year began promoting ITS DA Kissan range of innovative saucesaggressively and launched various options in the category.Nestle Responded with higher thrust by advertising and different size packages at differentprice points. Although Kissan market share over the next few years Maggi has tohold on its market share. Maggi noodles Costs meanwhile to significantly hadincreased, forcing the company to increase the retail price. By the beginning of 1997 theprice of one package reached RP 10.
