Maggi’s Brand Extension: Spreading in Indian Kitchen from Fast Food to Healthy Food
"Maggi noodles has managed to enter Indian homes to change the traditional food habits of Indian children on their promise of convenience. This brand has understood the psychology of Indian mothers and positioned itself for mother-child indulgence." - The Business Magazine, 2008 “What Xerox is to photocopier and Colgate to toothpaste, Maggi is to noodles in India.”- the Times of India, 2009
In December 2011, Nestle India Ltd. (NIL), a subsidiary of the Swiss major in food and beverages, announced its plan to invest INR 500 Crores for the production of Maggi noodles and confectionary manufacturing plant in Gujarat1. Prior to this, it invested over INR 3.87 Billion to setup a culinary factory dedicated to manufacturing sauces, noodles and bouillons under the Maggi brand.Remarked PaulBulcke, the CEO of Nestle, “Our business is growing well in India and we are very optimistic about the country’s growth opportunities over the coming years. This factory specialises in the manufacturing of culinary products and this investment reaffirms our confidence in our brands and people”2. The company has been present in India for around 9 decades3 now, making it one of the oldest countries to be operating in India. It boasts of a strong product portfolio which includes the likes of Milkmaid, Everyday, Maggi, Polo, Nescafe, Kitkat and many more. Of all its brands, Maggi has been one of the most successful brand for the company. Maggi has been synonymous with instant-noodles in the Indian market and has been the undisputed leader of this fast food category. Ever since its introduction, the Maggi brand has been extended by NIL to various culinary products like soups, pasta4, cooking pastes etc. Nestle tried every trick that it had up its sleeve to expand the brand to make the brand popular amongst the Indian audience. This also included changing the positioning of the product to a „healthy food item‟5. During this journey, NIL faced stiff competition from some of the leading companies such as GlaxoSmithkline6, Hindustan Unilever7 and ITC8. How this war of the Titans takes shape in the coming years remains to be seen. History In the mid-1860s, Henri Nestle, merchant, chemist and innovator, experimented with various combinations of cow's milk, wheat flour and sugar. The resulting product was meant to be a source of nutrition for infants, who could not be breast-fed by their mothers. In 1867, his formula saved the life of a prematurely born infant. Later that year, production of the formula, named FarineLactee Nestlé, began in Vevey and the Nestle Company was formed in 1867.Nestlé grew from a small company producing powdered milk and cereal products for infants into a global food company feeding much of the world‟s population. 1 Article from “money works for me”, www.moneyworks4me.com ,20.11.2011 2 Nestle Good Food, Good Life”,www.nestle.com” ,23 .03.2011. 3 Nestle Good Food, Good Life, ”www.nestle.in” 4 Pasta is a cookery item of any of several variously shaped edible preparations made from a flour and water dough, such as spaghetti 5Economic times, Ratan Bhushan, ” Nestle changing tack, plans makeover” www.economictimes.indiatimes.com,18.12.2008 6: GlaxoSmithKline is a British MNC with presence in various domains namely consumer healthcare, biologics, vaccine development and consumer healthcare. 7: HUL is a subsidiary of Unilever and its product portfolio includes FMCG goods, personal goods and household goods. 8: ITC: An Indian Conglomerate with presence in branded packaged foods, apparel, confectionary, stationery, household goods and so on.
Today, Nestle is the world's largest and most diversified food company. It has around 2,50,000 employees worldwide, operated 500 factories in approximately 100 countries and offers over 8,000 products to millions of consumers universally. Soluble coffee, powdered and ready-to-drink beverages, pet care and...
Please join StudyMode to read the full document