Brand Management

The report focuses on brand management aspects of Nestle Company and the Maggi brand. It includes competitor analysis, growth potential, market segments, and brand problem identification. Recommendations are provided to improve brand performance.

Running head: BRAND MANAGEMENT
Brand Management
Name of the Student
Name of the University
Author note

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Executive Summary
The report has thrown light on the overall brand management aspects of Nestle Company and
the Maggi brand. The competitor analysis of Nestle has been done in which the different
assumption relating to the sales and revenue have been considered. Moreover, the growth
potential along with different market segments and targeting have been conducted which
helped in analysing the position of Nestle in comparison to the other competitors. With the
help of the perceptual map, the key competitors have been investigated, and the problem
faced by brand in the Australian market have been identified. With the implementation of
brand theories, the brand problem has been examined adequately. Lastly, recommendations
have been provided which helped in understanding the position of the Maggi brand in the
market.

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Table of Contents
Brand Introduction.....................................................................................................................3
Background of Maggi............................................................................................................3
Entry into Australian Market.................................................................................................3
Current Standing in Australian Market..................................................................................3
Key Brand Elements..............................................................................................................4
Market Description.....................................................................................................................4
Analysis of Market Environment...........................................................................................4
Key Competitors of Maggi.....................................................................................................4
Analysis of Target Market.....................................................................................................5
The intensity of Competition.................................................................................................5
The positioning of Maggi Using Perceptual Map..................................................................5
Brand Problem Identification.....................................................................................................6
Problem Faced by Maggi Brand............................................................................................6
Identification of Brand Theories to Analyze Brand Problem....................................................8
Recommendations for Management to Improve Brand Performance......................................10
References................................................................................................................................13

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Brand Introduction
Nestle is one of the most significant Swiss multinational foods along with drink
organisation which is headquartered in Switzerland. The company was founded in the year
1866, and founder of the company is Henri Nestle. The areas served by the company is
worldwide, and critical people who are included in Nestle are Paul Bulcke and Ulf Mark
Schneider. The number of employees employed at Nestle is 323000 till 2017 and revenue
earned is 89.791 billion till the year 2017 (Nestle.com. 2018).
Background of Maggi
Maggi is one of the international brands of different seasonings, noodles along with
instant soup which has been originated from Switzerland in the late 19th century. Maggi
instant noodles are famous in Australia, New Zealand and Indiawherein they have 39% of
market share in the Australian economy. Maggi wasthe first to bring protein-rich legume
meals in the market in 1897 (Maggi.com.au. 2018).
Entry into Australian Market
The changing profile of different Australian customers has increased consumption of
the Maggi products effectively. In the present scenario, this has been seen that the majority of
the consumers are consuming healthy snacks or breakfasts as they are becoming health
conscious. Maggi tried to invent the different breakfast cereals which are low in fat which
matched preferences of customers in Australia.
Current Standing in Australian Market
In the current scenario, Maggi is in the number one positionin the market of
Australia post-ban with significant market share. In the year 2015, there was a reduction in
market share due to food safety concerns which affected the entire brand image.

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Key Brand Elements
 Trademark- Logo of Brand which is given legal protection
 Name- Essential Part of Brand
 Logotype- Design Elements of Maggi
Market Description
Analysis of Market Environment
Maggi Brand is under FMCG market as it sells different packaged foods which are
sold at relatively low cost (Maggi.com.au. 2018).
Key Competitors of Maggi
Heinz-The products which are prepared in such a manner which will suit the taste to a
particular place. The presence of the brand is all over the world and revenue earned by the
company is about $30 billion all across the world that makes them competitive
(Anselmssonand Bondesson 2015).
Kissan- The brand has a strong product portfolio wherein the annual sales of the
company are more than $26.1 billion along the world. Due to the global footprint of the
brand, Kissan brand is considered to be the toughest competitor of Maggi.
Analysis of Target Market
Maggi brand has segmented the market from age, eating habits along with a review of
the lifestyle of the different individuals in the market. The Maggi brand is associated with the
taste along with convenience and is currently accepted as a substantial meal all over the
world.

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1. Teenagers and Children
 Age group of 4-14 years will have similar tastes and preferences
2. Working Individuals
Intensity of Competition
From last few years, Maggi is dominating the market with little competition. In the
present scenario, Maggi is facing massive competition from the emergence of other brands
such as Knorr, Top Ramen and Cremica. There is no such product differentiation in the
market segment in eating habits of customers which is the same, and this has led to the
massive decline in market share.
The positioning of Maggi Using Perceptual Map
From the map, Maggi is placed in the zone wherein it provides high nutritional value
benefits; however, the price is higher in comparison to the other competitors such as Cremica.
Figure 1: Perceptual Map
(Source: Keller 2016)

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Brand Problem Identification
Problem Faced by Maggi Brand
The main issue which has been faced by Maggi in the Australian economy as this has
been found that there has been the inclusion of metallic lead. Due to the same, the Australian
economy banned the import of Maggi from India in their country as the different tests carried
out which revealed that Maggi contained lead which is harmful and causing different health
hazards for the various individuals (Du Preezand Bendixen 2015). On 15th June 2015, in light
of the growing confusion of the multiple consumers in the world market, Nestle decided to
temporarily stop selling Maggi until the situation with the various authorities has been
resolved adequately.
From the respective article Digitaljournal.com (2018), there has been the massive
intake of the different kinds of issues with the brand image of the company. According to the
brand equity theory, it is related to the commercial value which is derived from the
perception of customers regarding a particular brand, rather than a specific product or service.
The brand equity is determined with the five major factors are:
 Awareness of Brand
 Association with Brand
 Loyalty Regarding Brand
 Perceived quality of Brand
 Proprietary Brand Assets
There has an enormous loss to the brand equity of Maggi due to the different
allegations and other hazardous health hazards faced by the different customers all over the
world. The brand association of Maggi is associated with various instant food products;

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however, the brand association has been affected negatively due to the ban issues faced by
Maggi (Christodoulides, Cadogan and Veloutsou 2015).
The brand image has been affected negatively by the year 2015 and from the
different news surveys, this was noticed that the level of MSG was 17 ppm and this was
impossible to be consumed by the individuals in the world (Fetscherinand Heinrich 2014).
Figure 2: Article Relating to Ban of Maggi in Australian Economy
(Source: Schivinskind Dabrowski 2015)
Identification of Brand Theories to Analyze Brand Problem
From the above section, this can be analyzed that the main issue which has been faced
by Maggi is ban as there was huge lead inclusion in the Maggi instant noodles. Due to the
temporary ban of Maggi Instant noodles in various parts of the world, this has been noticed

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that the entire aspect is related to the brand loyalty theory (Heding, Knudtzen and Bjerre
2015).
Brand Loyalty Theory
As per the brand loyalty theory, it helps in explaining the relationship between the
psychology of the customers following the brand of the organization (Coleman, de
Chernatonyand Christodoulides 2015). As per the theory, the attitude of the customers
towards the brand depends on the following aspects:
 Evaluation of Brand
 Emotional Attachment
 Behavioral Aspects
From the particular method of brand loyalty, this can be assumed that in the case of
Maggi, the ban has affected the brand loyalty of the different customers in the organization.
Due to the various news on the health hazards caused to the customers in the Australian
economy, there was the temporary ban on the import of Maggi instant noodles in the
Australian economy (Ramaseshanand Stein 2014). The traits regarding the brand have
changed to a considerable extent, and this negatively affected the brand loyalty program
(Sinclairand Keller 2017).
Nestle Company was not able to provide the customers to come back to them as the
controversies affected their revenues in the market in a negative manner. With the
implementation of the brand loyalty program, the Maggi brand needs to make the customers
their major priority as they are the assets of the organization and this will be beneficial for
them in increasing their customer presence effectively and positively (Powell 2016). For
instance- After the considerable controversy faced by Maggi, they tried to gain their position
in the market effectively by making the customers their top priority which improved their

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effectiveness, and this attracted more individuals for purchasing Maggi in comparison to the
other competitors in the market.
Value-Based Brand Theory
This is the particular theory which helps in explaining that the value-based brands are
intended to build long-term customer value in the competitive market. The entire success of
the brand depends on the value which is being delivered by them to the customers in the
market which is competitive. In case of Maggi, it was not value driven in nature as there were
different controversies and ban of Maggi was the major issue which affected their brand
image negatively (Moro, Ritaand Vala 2016).
There were more than 85% of the customers who did not consume any Maggi
products as they lost the faith from the products and there was no such value provided to the
different products sold by them as well. However, after the temporary ban was over, and
Maggi proved that they are the premium brand which tries to provide value to the customers
in the market, this was being seen that they became more customer oriented in nature which
led them in defeating the different competitors in the entire market (De Vries and Carlson
2014).
From the two respective brand management theories, this can be analyzed and
identified that Maggi is one of the supreme brands in the entire market which lost their brand
value in the market due to the various controversies and this led to the fall in the revenue.
However, after the end of the different controversies, this has been seen that there was
supreme customer loyalty among the different customers which improved their overall
efficiency (Datta, Ailawadi and van Heerde 2014).

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Recommendations for Management to Improve Brand Performance
From the above, there are different recommendations which are provided to Nestle
and Maggi brand to become more competitive. In the case of the Maggi brand, this has been
seen that the brand faced various controversies which affected the overall stability of the
brand negatively. The different recommendations which are required to be provided to Maggi
brand are as follows:
Firstly, after the various controversies and ban faced by Maggi, the brand needs to
secure their brand image which will be appropriate for gaining the trust of the customers in
the competitive market. In the competitive business environment, the customers or the
different clients are looking for the business which is trustworthy. For example- Maggi can
increase the sample checking process and make it more often which will be appropriate for
the overall success of the firm.
Secondly, Maggi needs to keep the consistency as the key as this is the essential
aspect which is required to be followed by them after such controversies. There should be the
inclusion of different campaigns along with providing cleat communication which will be
essential for effective branding of the various products and services and delivering the same
efficiently.
Furthermore, after the controversies faced by the company, this is essential to target
the audiences appropriately as different audiences have lost faith from the Maggi brand. The
presence of lead has affected their brand image and the appropriateness, in such scenario,
targeting the audiences and assuring them regarding the quality of the food is essential.
There can be the inclusion of the different brand performance metrics which can be
used by the company to determine how the weak or strong the brand is in nature. There are

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few Key Performance Indicators which are essential to be adopted by Maggi brand which
will be helpful for attaining more than 60% of the share in the market.
Core Business Objectives
of Maggi Brand
Smart External Goal External KPI
Improve Customer
Satisfaction
Increase the checking of
each sample of different
food items more
appropriately which will be
helpful for them in attaining
a large number of customers
in the market
There can be an increase of
more than 50% of the sales
in the marketing
environment of Maggi
which will be appropriate
for gaining success
Increase in Overall Sales
of Company
There can bethe inclusion of
different programs such as
the use of social media
platforms to increase the
sales percentage in a
positive manner
There can be an increase of
more than 10% of the sales
in a positive way which will
be beneficial for the overall
success of the firm
effectively
From the analysis of KPIs, this can be analyzed that the performance of the
organization can be improved with the proper usage of the different kinds of interactions with
the customers which will be beneficial for the overall success of the firm appropriately. After
such controversies faced by Maggi in the entire market, this is essential for them to align the
different aspects of sales and revenue generation in an appropriate manner which will be
helpful for improving their preferences among the customers. The interaction metrics is

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mandatory to be applied by Maggi in which the awareness among the customers will be
beneficial for creating positive associations with the business.
References
Anselmsson, J. and Bondesson, N., 2015. The brand value chain in practice; the relationship
between mindset and market performance metrics: A study of the Swedish market for FMCG.
Journal of Retailing and Consumer Services, 25, pp.58-70.
Christodoulides, G., Cadogan, J.W. and Veloutsou, C., 2015. Consumer-based brand equity
measurement: lessons learned from an international study. International Marketing
Review, 32(3/4), pp.307-328.
Coleman, D.A., de Chernatony, L. and Christodoulides, G., 2015. B2B service brand identity
and brand performance: an empirical investigation in the UK’s B2B IT services
sector. European Journal of Marketing, 49(7/8), pp.1139-1162.
Datta, H., Ailawadi, K.L. and van Heerde, H.J., 2017. How well does consumer-based brand
equity align with sales-based brand equity and marketing-mix response?. Journal of
Marketing, 81(3), pp.1-20.
De Vries, N.J. and Carlson, J., 2014. Examining the drivers and brand performance
implications of customer engagement with brands in the social media environment. Journal
of Brand Management, 21(6), pp.495-515.
Digitaljournal.com (2018). Maggi noodles banned in around the world. [online] Available at:
http://www.digitaljournal.com/life/health/maggi-noodles-banned-in-around-the-world/
article/436489 [Accessed 28 Dec. 2018]

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Du Preez, R. and Bendixen, M.T., 2015. The impact of internal brand management on
employee job satisfaction, brand commitment and intention to stay. International Journal of
Bank Marketing, 33(1), pp.78-91.
Fetscherin, M. and Heinrich, D., 2014. Consumer brand relationships: A research landscape.
Heding, T., Knudtzen, C.F. and Bjerre, M., 2015. Brand management: Research, theory and
practice. Routledge.
Keller, K.L., 2016. Reflections on customer-based brand equity: perspectives, progress, and
priorities. AMS review, 6(1-2), pp.1-16.
Maggi.com.au. 2018. MAGGI Australia. [online] Available at:
https://www.maggi.com.au/products [Accessed 28 Dec. 2018].
Moro, S., Rita, P. and Vala, B., 2016. Predicting social media performance metrics and
evaluation of the impact on brand building: A data mining approach. Journal of Business
Research, 69(9), pp.3341-3351.
Nestle.com. 2018. [online] Available at:
https://www.nestle.com/brands/allbrands/maggi_culinary [Accessed 28 Dec. 2018].
Powell, S.M., 2016. Journal of Brand Management–Year end review 2016. Journal of Brand
Management, 23(6), pp.601-611.
Ramaseshan, B. and Stein, A., 2014. Connecting the dots between brand experience and
brand loyalty: The mediating role of brand personality and brand relationships. Journal of
Brand Management, 21(7-8), pp.664-683.
Schivinski, B. and Dabrowski, D., 2015. The impact of brand communication on brand equity
through Facebook. Journal of Research in Interactive Marketing, 9(1), pp.31-53.

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Sinclair, R. and Keller, K.L., 2017. Brand value, accounting standards, and mergers and
acquisitions:“The Moribund Effect”. Journal of Brand Management, 24(2), pp.178-192.