A Project Report on

Brand Audit of 'MAGGI'

Submitted in fulfillment of the requirement for

Product Brand Management
Of
Master of Business Administration

Submitted to Prof. Vidyadhar Reddy

By,

P. JAHNAVI REDDY (2018-2MBA-36)

SHILPA KATHUROJU (2018-2MBA-48)

Centre for Management Studies

NALSAR University of Law, Hyderabad
Justice City, Shameerpet– 500101
 INTRODUCTION

'BRAND AUDIT'
A brand audit enables you to identify your brand’s strengths and weaknesses together with
opportunities for innovation and growth so if your profits are falling or sales are not performing a
brand audit health check will help give you insights into your brand’s impact and performance in
the marketplace and, most importantly, why it’s not delivering.
A brand audit is a thorough examination of a brand’s current position in the market compared to
its competitors and a review of its effectiveness. It helps you determine the strength of your
brand together with its weaknesses or inconsistencies and opportunities for improvement and
new developments.
"Strong brands are more profitable and increase company value. They enable you to command a
premium, ensure customer preference in buying decisions, build customer loyalty which reduces
the cost of sales and fend off competition."
“The purpose behind a brand audit is plain and simple: to gain a fundamental understanding of
where your brand stands in its current state.”

ADVANTAGES OF BRAND AUDIT

1. Improve customer experience
Auditing is one of the best ways to assess the customer experience. Whether you are running
events, providing a technical service or offering products, the only way to improve your
customers’ experience is to understand it. An experienced auditor can provide an accurate
overview of both the positive and negative aspects of your customer service, allowing you to
build on your strengths and improve your weaknesses.

2. Increase brand loyalty

Great customer service is a key component of brand loyalty, but it is not the only component.
One of the major advantages of a brand audit is the insight it provides into customer behaviour
and brand positioning. An audit offers an unbiased assessment of how your customers
differentiate your brand from competitors and their attitudes about the service you provide. It
presents actionable insight into your marketing activities, helping you to identify areas with
growth potential.

3. Fully understand brand perception

Whether we like to admit it or not, our own biases frequently colour our perceptions. No one
within an organization can provide a candid overview of how that brand is perceived, whether
they are assessing external perception (by customers and clients) or internal (by colleagues).
That’s where a brand auditor comes in. With entrepreneurial experience, critical analysis, and no
preconceived ideas, an auditor can identify which qualities are associated with your brand.

4. Identify weaknesses

Fully understanding brand perception is the best means by which to gauge the limitations of your
current approach. The big picture perspective an auditor provides helps to identify weaknesses in
marketing, communication, and customer service. Their astute assessments allow for targeted
improvement in these areas, increasing your return on investment for everything from marketing
costs to staff training.

5. Identify new opportunities for growth

Seeking advice from an auditor with years of experience, someone qualified to provide a
comprehensive assessment of the external market, your position in it, and consumer behaviour,
will provide actionable insight into opportunities for future growth.
ABOUT MAGGI
The MAGGI brand originated in Switzerland. It was founded in 1884, when Swiss entrepreneur
Julius Maggi had a vision: to make good-tasting and nutritious food accessible to busy, working
families. He invented a powdered pea and bean soup, to provide nutritious, easy to prepare food
for busy women who worked in factories and didn't have time to prepare healthy meals.
This first MAGGI product was followed two years later with the invention of ready-to-use soups

and liquid seasoning.
 Nestlé acquired the MAGGI brand in 1947 and today, more than 120

years later, we strive to build on Julius Maggi's ambition of making delicious, quality and
nutritious food accessible to all.

Today the tradition continues around the world. Whether it’s MAGGI bouillons, soups, or
seasonings, consumers have come to know and trust the MAGGI brand for its high quality,
convenience and nutrition.

BRAND AUDIT OF "MAGGI"

The Brand Audit of Maggi was done on the following parameters
 STPD
 SWOT
 PLC
 PRODUCT VARIANTS
 MARKET SHARE

1. STPD(Segmentation, Targeting, Positioning & Differentiation):

Segmentation: Maggi identified its survey-able clusters based on the age group of the people,
eating habits and the lifestyle of the people.
Target Audience: Maggi identified it target audience as kids, youth, office geors, working
women/men and bachelors.
Positioning: Maggi has created a very strong image in the minds of the people with it's three
main attributes i.e. 'Fast to cook, good to eat", 2 Min Noodles, "Taste Bhi Health Bhi:"
Differentiation: Maggi has always been unique in terms of it's taste, flavor and packaging.
2. SWOT
Strengths

• Market leader
• Brand loyalty
• Distribution channel
• Innovative flavors and Indian taste
• Advertising strategy

Weakness

• Heavily dependent on noodles category

• Low rural market presence
• Uniform brand for all food category

Opportunities

• Growing package and canned food market in India.

• High brand awareness of Indian customers.
• Opportunity to be a substitute to other snack category of food products.
• Increasing number of working youth.

Threats

• Competitors with long history in product category internationally like heinz sauce and
ketchups of heinz Indian, Top Ramen in Noodles and Knor Soups.
• Competitive pricing
• Not perceived as healthy Product.
3. PRODUCT VARIANTS
4. PRODUCT LIFE CYCLE

Introductory stage:

Nestle launched Maggi in India in the year 1982 with it’s 2 minutes instant noodles.
When Nestle launched this product there were a lot of ups and downs, with high failure
rates. Maggi, then had no competition and incurred high production cost. A lot of
research was also done in this stage which caused frequent modifications.

Growth Stage:

Around 1985, the demand for Maggi had increased tremendously in India. The entire
development cost was recovered and moreover it’s sale rates had also increased. In 1990
the demand for Maggi had dropped a little because of an introduction of a new brand
named Top Ramen. So in order to increase it’s sales Nestle formulated a new flavour
which wasn’t well accepted by it’s consumers. Thus in 1999, Nestle re-launched the old
flavour of Maggi, which in turn increased it’s sales.

Maturity Stage:

During it’s maturity stage, Maggi’s sales were at peak, production costs were low and
profits were high.

Declining Stage:

As we all know that Maggi is now banned in India due to it’s high lead content. Thus it is
going through it’s declining stage now. Nestle is conducting a lot of research and if they
come up with something new and better, then Maggi might be selling it’s products in the
future, or else after the declining stage, this brand would become history in India.

Post the crisis :

From commanding 80% share of India’s noodles market in May 2015, Maggi went down
to zero in just a month.
It’s June of 2016, a year after the safety crackdown. At the Centre, Nestle SA’s global
headquarters in Switzerland’s picturesque Vevey, the global company’s board and
management are trying to finalize a three-year strategy for the India market. Maggi,
which returned to shelves in November, has since reconquered 57% of the market, a far
cry from its heydays, but a major fight back still.

4.MARKET SHARE

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).

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 th‘Trustworthy
Facts’ about its noodles and win the trust of the people in India.
In the above image we can see that sales of nestle has gradually decreased because of
maggi.

In the above image we can clearly see that earnings of nestle gradually decreased due to
maggi noodles.
 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).

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 th‘Trustworthy
Facts’ about its noodles and win the trust of the people in India.

SUGGESTIONS

Health Factor
Now that everybody is turning towards being very health conscious , one factor that has always
been a concern about maggi is the health factor. We know that maggi is made out of flour and
the vegetables used also are preserved for quite a long period of time maggi needs to look into
the ingredients being used. They can come up with more healthy alternatives by retaining its
tastes and flavors.

Product Variance
Maggi was never seen in the category of chips and chocolates. This can be seen as a opportunity
to increase its sales.

Distribution channels at rural areas

Maggi has always been the favorite in all the urban areas. But it hasn't been that well known in
the rural areas. These areas need to have a strong distribution channel in order to their sales even
more.

CONCLUSION
A Maggi noodle is no doubt the number one choice of the customers in India. It is not wrong to
say that the brand has completely redefined the instant food industry in India, mainly in the
instant noodles category. The controversy surrounding the Maggi noodles in terms of presence of
lead and MSG in its products has dented the image of the brand, but it is also not wrong to say it
is the first name that crops up into the minds of the people from kids to adults in the noodles
segment. It is the duty and responsibility of every brand to adhere to the quality standards and
does not play with the health of the citizens. Consideration of the quality standards when it
comes to producing the food products will only enhance the image of the company and help it
climb the tower of success.

BIBLIOGRAPHY

https://mindspinstudio.com/five-reasons-company-will-benefit-brand-experience-audit/

www.personadesign.ie

milesherndon.com

http://www.advisorymandi.com/blog/journey-of-maggi-in-india-history-of-maggi-brand-1982-to-2019/