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