Deakin University - MMK739: Strategic Brand Management - Maggi Report

This report provides a comprehensive analysis of the Maggi brand, focusing on its current standing in the Australian market and worldwide. It begins with an introduction to Nestle, the parent company, and the origins of the Maggi brand. The report then delves into the market description, analyzing the FMCG market, key competitors (Heinz, Kissan, Cremica), and the target market (children, teenagers, and working individuals). It identifies the intensity of competition, the brand's positioning using a perceptual map, and problems faced, particularly the lead contamination issue. The application of brand equity theory and brand loyalty theory are explored. The report concludes with recommendations for management to improve brand performance, including securing brand image, maintaining consistency, implementing effective branding, and targeting the appropriate audiences. Brand performance metrics are also suggested. The report is based on the assignment brief for MMK739 – Strategic Brand Management and utilizes various academic references to support the analysis.

BRAND MANAGEMENT

Introduction of Brand
 Nestle is Swiss multinational food and drink company
headquartered in Switzerland
 Founded in the year 1866 and the founder is Henri Nestle
 Areas served by the organization is worldwide
 Number of employees employed is 323000
 Essential Individuals involved in process of making Nestle
world famous are Paul Bulcke and Ulf Mark Schneider

Background of Maggi Brand
 It is one of the international brands which is inclusive of
different seasonings and the instant food items
 This is generally originated from Switzerland in the late 19th
century and instant noodles are famous in Australia
 There is more than 39% of the market share in Australian
economy which will be beneficial for the growth of the firm

Current Standing in Australian Market
 It is in number one position in the Australian market
post the ban of the instant noodles in the year 2015
 However, in the year 2015, there was reduction in
the market share as there was different food safety
concerns which affected the overall brand image of
the organization in a negative manner

Current Standing in Australian
Market

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
It falls under the FMCG market as this sells the
different packaged food items at a relatively low
cost
In comparison to the other competitors, Maggi
tries to include the different kinds of food items
such as instant noodles and cereals for the health
conscious customers in Australian economy

Key Competitors of Maggi
 Heinz- The first major competitor which sells similar products and services
which plays a vital role in attracting the customers in Australian economy and
their market share is similar to Maggi
 Kissan- This is the second competitor in which the company sells packaged
foods at a low price in comparison to Maggi Brand
 Cremica- This helps in producing packed food along with instant noodles like
Maggi which attracts more customers in the market

Analysis of Target Market
 Children and Teenagers- Ranging from 4-14 years as
they love the taste of Maggi products especially the
instant noodles
 Working Individuals- They lead busy lives wherein they
will be gaining huge market share as these customers
prefer packaged food items as this is easy to cook

Intensity of Competition
 There is very little competition for Maggi as there are no
such competitors presence in the market in the entire
worldwide
 In the present scenario, Maggi is facing huge competition
from the other competitors such as Kissan and Top Ramen
as the eating habits of the different customers are changing
in a drastic manner

The positioning of Maggie Using
Perceptual Map
 Maggi is being placed in a position wherein they provide high
nutritional value
 However, the pricing is costly in comparison to the other
competitors in the market
 Cremica is the toughest competitors of Maggi as they provide
nutritional value to the different customers which will be
disadvantageous for Maggi

Brand Problem Identification
Problems Faced by Maggi brand
 Main issue is relating to the presence of lead in the instant
noodles sold by Maggi in Australia and all over the world
 Australian economy banned the import of Maggi from India to
their country as there were different health hazards which
affected the health of individuals in a negative manner