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Case
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Reference no. 502-056-1
Subject category: Marketing
Authors: A Mukund
Published by: IBS Center for Management Research
Published in: 2002

Abstract

The case examines the brand and line extension strategies adopted by Fast Moving Consumer Goods (FMCG) major Nestle for its Maggi brand in India. It provides a detailed account of Nestle''s promotion and advertising strategies for creating a noodles market from scratch. The various products and variants launched under the umbrella brand Maggi, and the rationale behind these launches (and their failure) is explored in detail. The case also discusses the company''s attempt to change the formulation of its flagship brand Maggi noodles and how it was forced to bring back the old formulation. The case is structured to enable students to: (1) understand the various issues involved in the marketing of a typical FMCG product by a MNC and the role of promotional and advertising activities for the same; (2) discuss the pros and cons of a company implementing the marketing strategies that are adopted by its MNC parent company globally; (3) understand the potential scope and limitations of adopting an umbrella brand for different product categories; (4) understand the different strategic options available to a product manager when dealing with product line and brand decisions, such as brand extensions and line extensions; and (5) evaluate the reasons for leveraging a brand''s equity despite the failure of its earlier extensions. The case is aimed at MBA/PGDBA students, and is intended to be a part of the marketing curriculum.
Location:
Size:
Large
Other setting(s):
1997-2002

About

Abstract

The case examines the brand and line extension strategies adopted by Fast Moving Consumer Goods (FMCG) major Nestle for its Maggi brand in India. It provides a detailed account of Nestle''s promotion and advertising strategies for creating a noodles market from scratch. The various products and variants launched under the umbrella brand Maggi, and the rationale behind these launches (and their failure) is explored in detail. The case also discusses the company''s attempt to change the formulation of its flagship brand Maggi noodles and how it was forced to bring back the old formulation. The case is structured to enable students to: (1) understand the various issues involved in the marketing of a typical FMCG product by a MNC and the role of promotional and advertising activities for the same; (2) discuss the pros and cons of a company implementing the marketing strategies that are adopted by its MNC parent company globally; (3) understand the potential scope and limitations of adopting an umbrella brand for different product categories; (4) understand the different strategic options available to a product manager when dealing with product line and brand decisions, such as brand extensions and line extensions; and (5) evaluate the reasons for leveraging a brand''s equity despite the failure of its earlier extensions. The case is aimed at MBA/PGDBA students, and is intended to be a part of the marketing curriculum.

Settings

Location:
Size:
Large
Other setting(s):
1997-2002

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