PROJECT REPORT

Product: MAGGI
Prepared by: GROUP 5
Date: 16th November 2015
 TABLE OF CONTENTS

INTRODUCTION ABOUT MAGGI ................................................................................................... 3

BRAND LOGO ................................................................................................................................ 3
CELEBRITY ENDORSEMENT ........................................................................................................ 4
JINGLES AND SLOGANS .............................................................................................................. 5
STPD ANALYSIS ............................................................................................................................ 7
Segmentation ..........................................................................................................................................7
Targeting .................................................................................................................................................7
Positioning ..............................................................................................................................................8
Differentiation .........................................................................................................................................8
CBBE MODEL ................................................................................................................................. 8
Integrated Marketing Communication Tools ............................................................................. 11
Sales promotion....................................................................................................................................11
Consumer & Trade Sales Promotions .................................................................................................12
Trade Promotions ...............................................................................................................................12
Consumer Sales Promotions ..............................................................................................................13
PUBLIC RELATIONS .............................................................................................................................13
Maggi Club .........................................................................................................................................14
NESTLE MAGGI DISASTER..................................................................................................................14
RESULTS OF PUBLIC RELATION ACTIVITY .......................................................................................14
Maggi IMC Strategies ...........................................................................................................................15
TV Ads ...................................................................................................................................................15
Print Ads ...............................................................................................................................................18
Maggi Crisis and Internet Marketing ...................................................................................................18
Competitive Analysis ...........................................................................................................................23
The market Scenario - Prior to the Maggi Noodles recall ....................................................................23
ITC Yippee: Competitive Frame of Reference .....................................................................................23
IMC Tools Deployed by Yippee before the Maggi Controversy: ..........................................................25
Post Maggi Crisis: Response from Yippee ..........................................................................................30
Hits and Miss: Our Analysis ................................................................................................................34
What Maggi India did? ........................................................................................................................34
What Maggi India should have done? .................................................................................................35
REFERENCE .........................................................................................................................................36

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INTRODUCTION ABOUT MAGGI
The Maggi brand originates from Switzerland where in 1863 Julius Maggi created a recipe of
flavors to bring added taste to meals. This marked the beginning of the Maggi brand and its
convenient products. Known for his nutrition-oriented approach, the Swiss Government asked
Julius Maggi to create a product that would be quick to prepare yet nutritious as more and more
women were working outside the home. The results were a success — two instant pea soups and
an instant bean soup.
In 1947 Nestleé acquired the Maggi brand. Today the tradition continues around the world.
Whether it’s Maggi bouillons, soups, seasonings, noodles or sauces, consumers have come to
know and trust the Maggi brand for its high quality, convenience and nutrition.

In 1982 it was launched in India. At that time, Indian consumers were rather conservative in their
food habits, preferring to eat traditional Indian dishes rather than canned or packaged food. With
the launch of Maggi noodles, an entirely new food category – instant noodles – was created in the
Indian packaged food market. Initially Nestle India Limited (NIL) tried to position the Noodles in the
platform of convenience targeting the workingwomen. But it found that the sales are not picking up
despite heavy promotion. Research then showed that Kids were the largest consumers of the
brand. Realizing this, NIL shifted its focus from workingwomen to children and their mothers and
repositioned the brand towards the kids using sales promotions and smart advertising. NIL
aggressively promoted Maggi with tagline such as “Mummy Bhook Lagi”, “Bas 2 Minute” and
through several schemes of free samples, gifts on return of empty packs, etc. In 2005, NIL
reworked its marketing strategy to keep the Maggi brand fresh in the minds of Indian consumer
and reposition Maggi as a ‘health product’.

BRAND LOGO

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A logo is a mathematical element that together with its logotype forms a trademark or commercial
brand. Typically, a logo’s design is for immediate recognition.

Maggi logo is quite different and easily recognized well by people.

Carlo Donati gave the “Maggi” word to the product range to continue the image of “Healthy and
Fast to Cook” food which was introduced by Julius Maggi. Entienne Maurice Firmin Bouisset was
a french painter, poster artist and printmaker who developed and designed the logo of Maggi.
Logo is in the shape of think bubble which symbolizes whenever one thinks of food and
spices or adding taste to the food in a healthy way Maggi comes in mind. Red background
symbolizes bold and youthful culture of Maggi, it is a symbol of excitement of sharing. Yellow text
symbolizes optimism and clarity in their vision and thoughts about the brand. By maggi families
and friends come together and share joys and emotions of life.

CELEBRITY ENDORSEMENT
Maggi has used various famous personalities for its endorsements.
Madhuri Dixit who is well known personality endorses Maggi oats. She is used for endorsing
maggi oats as to reflect consumers about the healthy lifestyle and nutrition value of maggi. Maggi
oats is considered to be meal replacement of oats in the morning.
Amitabh Bachchan endorses Maggi hungroooo which symbolizes that it can fill his stomach so it
can fill yours stomach as well. Also Amitabh Bachchan has a huge fan following which indeed help
the brand to increase its goodwill. Also he was used to portray the image of maggi as healthy food.

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JINGLES AND SLOGANS
Jingle is memorable slogan set to an engaging melody. The real power of the jingle is viral. Jingles
communicate a broad theme in a simple enough way that it can be consumed in the midst of the
media and activities.
Maggi has used various Jingles over the years
• Mummy bhook lagi bas do minute, Maggi Maggi Maggi
• Mummy I’m Hungry
• Maggi positioned itself as Fast to Cook Good to Eat
• Taste bhi Health bhi
• Just add garam paani and carry on jaani
• To involve children’s with their brand they came up with a catchy jingle “Sudup Sadap
Sudup” and “Me and Meri Maggi”.
• Also then they try to relate with Health and Richness of diet compared with Oats as Maggi
Oats and with Whole Grain Roti as Maggi Atta Noodles.
Maggi also uses Nestle logo for projecting that it is a good healthy snack for consumers.

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6
STPD ANALYSIS

STPD
Segmenta Targeting Differenti Positonin
tion Kids ation g
Age Youth / Taste “Taste bhi
Eating Bachelors Flavour Health
Habits Office Packaging bhi”
Lifestyle Goers “2 minute
Working noodles”

Segmentation
Maggi does its segmentation on the basis of age that is young adults and children’s with keeping
in mind the eating habits and lifestyle of Urban Indian Population.
Eating preferences would be helpful in understanding market well as Maggi has a large consumer
market. Infact this would help maggi to enter new market and cater more people and fulfill their
needs and demands.

Targeting
Main target audience or target market of Maggi is as follows
Kids who like to have small snacks in the evening or between the meals
Young/Bachelors: For bachelors it is the easiest way of filling their stomach they can target them
well as it is easy, convenient and fast to cook.
Working Women and Office Goers: Families having working women could be targeted well so
that mom does not need to worry about their family to have food and also women or office goers
coming after a hectic day at work does not have to spend much time on cooking. So it is a easy
and healthy way or shortcut for them.

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Maggi should basically target these in the market and cater to their specific needs. They
are basically “Convenience Time Savvy Misers” who are looking for easy way out which
easy, convenient and healthy to eat.

Positioning
Maggi has positioned itself well in the market and also has a good first mover advantage as well.
Maggi has to position itself that it is better from its competitors and safe. Positioning of Maggi
should be such that it is easy, convenient and healthy to eat. Taglines “ Taste bhi Health bhi”
“2minute noodles” “Easy to Cook Good to Eat” and “2 Minute mei Khushiyaan” these all taglines
cater and position them strongly in the market and in minds of consumers. They had to go through
a healthy route and position themselves as healthy snack in the mind of consumers for their
growth.

Differentiation
Maggi can be well differentiated from its competitors because of its unique packaging also
packaging of maggi is in various sizes catering to different needs of the market. Taste of Maggi is
also unique which is well differentiated from the its competitors. “ Masal-e-Magic” makes maggi
different from its competitors. Laso maggi comes with a lot of variant with healthy as oats to atta
so that it remains in power as compared to competitors.

CBBE MODEL

Salience: Brand Salience is a food or a meal easy, convenient and health to eat. Adding flavour
and taste to the food.

Performance: Maggi has positioned itself that it is easy to cook, healthy to eat which is time saver
aswell.
Imagery: Maggi portrays image to the consumers that they are typical Indian who loves to have
Maggi who loves to have mid time snacks between the meals. Maggi also images in the mind as
to feel good and proud.

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Judgement: Users judges Maggi as solution to many problem like their hunger, time.It is also
judged as money saver. Also it is judged as an attachment with Maggi since it is their all the time
to fulfil our hunger and needs.
Feeling: There is feeling of attachment, joy bonding with maggi. Also there is share of joy and
emotions with friends and family members while consuming maggi.

Resonance: Maggi resonates well with its customers by creating a bond like “Mei and Meri
Maggi”. Creating a sense that Maggi belongs to you. Also Maggi resonates well with its
Consumers through “ Maggi Community” where maggi interacts with its customers share recipes
what all can be done with Maggi, give nutritional facts about Maggi keeping them engage with the
brand. Also customers can share their viewpoint and give recommendations as well as share their
recipes with customers.

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 Resonance
“Mei and Meri Maggi”
Maggi Community
Creating a bonf

Judgement: Solution to many problem, time,

money, hunger, attachment

Feeling: Attachment, Fun, Joy, Emotions, Simple and

Uniqueness of Bonding

Performance: Time Convenience, Ease in Cooking, Taste, Healthiness

Imagery: Usuage Situation, typical Indian Household, Feeling Good Factor

Brand Salience
Adding flavour to food
Easy to cook

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Integrated Marketing Communication Tools

Sales promotion
Sales promotion is any initiative undertaken by an organization to promote an increase in sales,
usage or trial of a product or service. Sales promotions are varied.
Sales promotions can be directed at the customer, sales staff, or distribution channel members
(such as retailers). Sales promotions targeted at the consumer are called consumer sales
promotions. Sales promotions targeted at retailers and wholesale are called trade sales
promotions.
Sales promotion is implemented to attract new customers, to hold present customers, to
counteract competition, and to take advantage of opportunities that are revealed by market
research. It is made up of activities, both outside and inside activities, to enhance company sales.
Outside sales promotion activities include advertising, publicity, public relations activities, and
special sales events. Inside sales promotion activities includes window displays, product and
promotional material display and promotional programs such as premium awards and contests.

The two most common discounts are price discounts (“on sale items”) and bonus packs (“bulk
items”).

(a) Buy-One-Get-One-Free (BOGOF) -

(b) Customer Relationship Management (CRM) incentives such as bonus points or money off
coupons. There are many examples of CRM, from banks to supermarkets.
(c) New media
(d) Merchandising additions such as dump bins, point-of-sale materials and product
demonstrations.
(e) Free gifts.
(f) Discounted prices
(g) Joint promotions
(h) Free samples
(I) Vouchers and coupons
(j) Competitions and prize draws, in newspapers, magazines, on the TV and radio, on The
Internet, and on packs.
(k) Cause-related and fair-trade products that raise money for charities, and the less well off

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farmers and producers, are becoming more popular.
(l) Finance deals - for example, 0% finance over 3 years on selected vehicles.
SP leads to purchase response. It affects the decision making step of Consumer buying behavior.
Maggi makes use of Push & Pull strategies as part of their Sales promotion strategy.
Advertisement is run in order to create awareness and pull for the product and Discounts are given
in-order to push Maggi over the counter.
Objectives
1. To introduce new products
2. To attract new customers and retain the existing ones
3. To maintain sales of seasonal products
4. To meet the challenge of competition

Tools
1. Exchange schemes
2. Price-off offer
3. Scratch and win offer
4. Money Back offer
5. Flash-Sale on Snapdeal
6. Sponsor School Quiz

Consumer & Trade Sales Promotions

1. Sales promotions can be directed at the customer, sales staff, or distribution channel
members (such as retailers).

Trade Promotions
1. 7% discounts on 6 piece pack (56 MRP), 5 rupee discount on 8 piece pack( 78 MRP) were
the promotional schemes given by retailer itself not by NIL.

2. Schemes like giving one soup pack with 8-piece pack.

2 minute Mein Khushiyan-Dealer Engagement Campaign

1. Company runs a dealer engagement programme, which is a part of its ‘2 minute Mein
Khushiyan’, campaign.

2. Nestle is offering incentives to retailers to buy company products in bulk and thereby
reducing trade’s options of stocking rival brands.

3. The analysts have said that the discount offered is perhaps the first in a decade, which
might be a measure to protect its market share in the increasing competition.

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Consumer Sales Promotions
1. Free distribution in schools and offices in the form of dry (super market and events) and wet
sampling (more direct and street team sampling)

2. Bonanza schemes: exchange schemes like on tomato ketchup free packet of magi noodles

3. Scratch and win offer

4. Maggi fun book and stickers with funky animal facts.

5. Discounts on family packs

6. Consumers had to come up with their own little “Maggi moments and Maggi stories” and
printed those small messages on their packaging wrappers as the token of gratitude.

Hence,
1. Maggi makes use of Push & Pull strategies as part of their Sales promotion strategy.

2. Advertisement is run in order to create awareness and pull for the product while

3. Discounts are given in-order to push Maggi noodles over the counter.

PUBLIC RELATIONS
Engaging the target segment in an interesting way so that it responds favorably to intended
communication and develops positive image about the brand
PR Tools -
1. Attendance at public events

2. Press releases

3. Newsletters.

4. Blogging.

5. Social media marketing.

Maggi faced increased costs of production, hence prices had to be increased and sales were
hence affected.
Maggi resorted to smart PR campaigns to increase the sales.

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Maggi Club

1. Community of consumers/influencers.

2. 10-23 years target segment part of the community.

3. Features such as crossword, quiz-of-the-day, contests, opinion poll, discussion groups,

activity book, etc and a hall of fame to highlight those having high points.

4. The children under 14 were invited by press advertisements and distribution of leaflets to
become a member of maggi club by sending logos cut from 5 empty maggi wrappers.

5. Maggi projected it as “maggi clubbers are fun lovers” and intended to use it as reference
group.

NESTLE MAGGI DISASTER

Reactions –

1. The #MaggiMuddle is one of the biggest PR disasters for a company in the social media
age.

2. Trust, betrayal of nostalgia, public perception and brand value were all at stake, yet the
Nestle CEO’s response on Friday was a classic case of a little too less, a little too late. It
was wimpish, dishonest, lacked empathy, bordering on utter disregard for the Indian
sentiment.

3. No chance that Brand Maggi will die," "It's a 30-year-old brand; I believe it will climb back in
30-40 months after the issue is resolved.“- Dilip Cherian, public relations consultant

RESULTS OF PUBLIC RELATION ACTIVITY

1. Getting closer to regular customer.
2. Boosted the sales.
3. Making valuable direct marketing database.

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Maggi IMC Strategies

Integrated Marketing Communication

Interactive PR/Publicit Sales

Advertising
Marketing y Promotion

Billboards TV Ads Print Ads

It is integration of all marketing tools, approaches and resources within a company which
maximizes impact on consumer mind and which results into maximum profit at minimum cost.
Advertising is any paid form of non-personal communication about an organisation, product,
service, or an idea by an identified sponsor. It is the most cost-effective way of communication,
particularly with large audiences. It has ability to create images and symbolic appeals for
differentiating similar products and services.
Maggi through its journey of more than 25 years have effectively used advertising as a medium to
strike a positive chord and build its brand among the consumers.

TV Ads

Maggi had to fight hard to be accepted by Indian consumers with their hard to change eating
habits. In 1980’s the packaged food market was very small at that time, Nestle had to sell noodle
as a concept before it could promote Maggi as a brand. Therefore, it devised two pronged
strategy- to attract mothers on ‘convenience’ plank and lure kids on ‘fun’ plank. Maggie associated
itself with mainstream television programme and advertised heavily on kid’s program and
channels.
Nestle has positioned Maggi as a convenience food product aimed at the target group of working
women who hardly found any time for cooking. Unfortunately this could not hold the product for

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very long. After many market surveys and research they found that children were the biggest
consumers of Maggi noodles. Quickly they repositioned it towards the kids segment with various
tools of sales promotion like colour pencils, sketch pens, fun books, Maggi clubs which proved
great for the brand.
Maggi was positioned as ‘2-minute noodles’ with a punch line that said ‘Fast To Cook, Good To
Eat’. The jingle “mummy bhook lagi, bas do minute, Maggi Maggi Maggi” quickly grasped the
attention of consumers all over India. They ried to give the implied understanding to consumers
that it was a ‘between meal snacks’ because Indian consumer mind set would not accept anything
as meal substitute which is not roti or rice.

Maggi in early 2000 launched new variants keeping in mind the brand positioning of Nestle, Which
changed to a health and wellness company. It came up with atta Noodle with tagline like “Taste
Bhi, Health Bhi”.

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Nestle widened its offering of Maggi brand of noodles with the launch of Maggi Cuppa Mania
instant noodles. It was positioned as easy-to-carry product for people who are very busy and it can
be carried anywhere. The tagline used was “Just Add Garam Pani and Carry On Jaani”. It was
packaged with a disposable fork to make it an even easier snacking option.

Nestle India rolled out a new marketing drive to mark the 25th anniversary of its instant noodles
brand, Maggi, Called ‘Me & Meri Maggi’, the campaign was supposed to celebrate the
consumers’ bond with brand Maggi. The company planed “360 degree activation” across
television, print and the internet, beside on-ground activities. The packaging was tweaked to
accommodate the pictures of consumers whose entries the company choose. Consumers were
asked to share their own Maggi experiences and recipes with the brand. They got over 30,000
stories. So they decided to return the love. Since Maggi had made for so many stories, now the
stories would make for new Maggi flavours i.e. the Maggi stories would inspire the new set of
Maggi flavours. Thus the idea: 'Maggi se bani aapki kahaniyan, aur ab aapki kahaniyon se
bane Maggi'.

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Print Ads

Maggi did not focus heavily on print media during its launch since its initial target audience was
mothers and kids. Some advertisements in the print media were used to highlight the convenience
factors of Maggi and create and general awareness. It came out with some ads in weekly
magazines for its atta noodles variants

Maggi Crisis and Internet Marketing

At the end of May 2015, India’s Food safety administration (FDA) ordered Nestlé India to recall its
popular 2-minute Maggi noodles after tests showed that the product contained high levels of lead
and MSG. This case study looks at how the situation developed, and how Nestlé reacted and
managed the situation using multiple digital channels.

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21st May 2015 – Indian state orders recall of Maggi noodles

Indian food inspectors order Nestlé India to recall a batch of Maggi Noodles from the northern
Indian state of Uttar Pradesh claiming that tests have found Maggi instant noodles "unsafe and
hazardous" and accused Nestlé of failing to comply with food safety law.

Nestlé response

The initial response from the global FMCG Company rejected the accusation that the noodles
were unsafe and said on their website and social media accounts that there had been no order to
recall any products.

A statement on their website said that “The quality and safety of our products are the top priorities
for our Company. We have in place strict food safety and quality controls at out Maggi factories…
We do not add MSG to Maggi Noodles, and glutamate, if present, may come from naturally
occurring sources. We are surprised with the content supposedly found in the sample as we
monitor the lead content regularly as a part of the regulatory requirements.”

1st June – Nestlé re-assures customers its noodles are safe

Nestlé continues to keep its customers up to date on the investigation into the safety of Maggi
noodles in India. On the official Maggi noodles India Facebook page, Twitter and website, Nestlé
states that extensive testing reveals no excess lead in Maggi noodles.

2nd June – Nestlé interacts with customers on social media thanking them for their support

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Nestlé uses Twitter and Facebook to answer customers questions about the levels of MSG and
lead found in their noodles. The company continues to re-assure customers that the noodles are
safe and that they are a transparent company working closely with authorities in India to resolve
the issue. As well as this Nestlé explains the science behind the tests, what lead and MSG are
and gives an informative breakdown of the ingredients in their product.

@MaggiIndia makes an impressive effort to respond to every tweet from customers on this issue
with a pre-prepared statement explaining that lead occurs naturally in soil and water.

3rd June – Nestlé launches a FAQ page on the official Nestlé website

Nestlé continues to engage in an active dialogue with customers on social media channels
Facebook and Twitter. As well as this the company created a FAQ page on the official Nestlé
website to answer all questions.

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Here’s what you need to know tweet – retweeted 846 times:

4th June – Nestlé backtracks and recalls all Maggi noodles from India

After re-assuring customers that its noodles are safe, the brand does a U-turn and decides to
recall Maggi noodles produced in India. Nestlé CEO Paul Bulcke spoke to the media and said that
“We are working with authorities to clarify the situation and in the meantime Nestlé will be
withdrawing Maggi noodles from shelves.”

16th June – Nestlé to destroy withdrawn noodles

Nestlé decided to destroy more than £32million ($50million) worth of Maggi Noodles in India after
they were deemed unsafe by regulators.

3rd July – Testing on Maggi noodles abroad finds levels of lead are within food safety
levels

After the food safety scare in India Maggi noodles have been tested in other parts of the world to
reassure consumers that they are safe. Results from noodles tested in the UK found that levels of

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lead in the product are within EU levels. Shortly after the UK results were published, Canada also
cleared Maggi noodles as safe.

Overview- using social media for damage limitation

When Maggi noodles, one of Nestlé’s top products was deemed unsafe in India, all eyes were on
Nestlé to see how they would respond and manage the situation. Initially Nestlé defended its
product and rejected all claims that its noodles were unsafe, and they did this on all digital
channels.

Nestlé took to social media, Facebook and multiple Twitter accounts (main Nestlé account, Nestlé
India, Maggi India) to reassure customers that its product was safe. Nestlé responded directly to
all comments on social media. As well as this Nestlé created a section on their main website to
keep customers updated.

As the pressure grew on the global company, in a press conference Nestlé’s CEO said that all
Maggi noodles in India would be withdrawn from shelves in order to comply with regulators.

Again Nestlé used digital channels to explain to customers why this decision had been made and
to answer all their questions. Nestlé also explained the science behind the reason for the ban in
simple terms so customers could understand.

The scare was a huge blow to the company, which has been selling its Maggi products for over
three decades in India with 80% of the country’s instant noodle market. However, through smart
use of social media during the crisis, the brand limited further damage by reassuring and informing
customers to encourage them to continue buying the noodles in the future.

August 2015 Update

After a difficult summer for Nestlé India the company finally receives some positive news after an
Indian government approved laboratory has found that Maggi noodles do in fact comply with
national food safety standards.

India’s food minister has slammed the FSSIA (Food Safety and Standards Authority of India) for
creating an environment of fear in the food industry. Meanwhile, Maggi noodles have been cleared
in many foreign countries; Nestlé also received permission from the Bombay High Court to export
Indian Maggi noodles.

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Competitive Analysis

The market Scenario - Prior to the Maggi Noodles recall

In September 2010, the brand launched its noodles brand extension- Sunfeast Yippee. Indian
noodles segment has now become a huge market worth Rs 1300 crore (approx.) Maggi is the
market leader with a whopping 70% market share. A huge market with one major market leader is
definitely an attractive one. That is one of the reasons why so many players have recently
launched their brand in this segment. Sunfeast (ITC) is a worthy player to take on the might of
Maggi. ITC is a company that is not averse to taking risk and have a huge cash reserve to fight a
marketing war with Nestle.
ITC product portfolio has been further expanded with Sunfeast Yippee! Instant noodles. Three
years of exhaustive developmental work has gone into the creation of Sunfeast Yippee! The
product has two intrinsic components - the noodle block and the masala mix. Wheat is a key
ingredient of the noodle block. The sourcing and blending expertise that has made Aashirvaad
India's No 1 branded Atta has been leveraged to make a truly delightful noodle block. Sun feast
Yippee noodles do not lump even 30 minutes after cooking. At present, Sunfeast Yippee is
available in three lip smacking variants - Classic Masala, Chinese Masala and Magic Masala.

ITC Yippee: Competitive Frame of Reference

Yippee is introduced to the market as the new and better instant noodles, evident from its claim
“THE BETTER NOODLES”! ITC has focused its noodles brand Sunfeast Yippee as “the better

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noodles” by using the benefit positioning concept in which they tried to position the product as a
better alternative to Maggi on the basis of following three differentiating criteria :-
1. The first point used by Yippee to position itself as a better alternative over Maggi was that it
was telling the customers that they should have the choice of variety of masala with two
variants in their product portfolio – Classic and Magic. The stress was made upon the point
that we want choices in each and everything in life so why not have a choice while having
instant noodles.
2. The second point focused on the shape of the contents within the pack. The contents in
other options available are in rectangular shape which have to be broken which leads to
short pieces of noodles, where as in Yippee noodle pack the cake is in round shape which
keeps the noodles intact and long and smooth.
3. Then third thing that it focuses upon is the fact that Maggi must be had immediately after it
is cooked as after sometime the taste deteriorates and you cannot have it, whereas Yippee
noodles promises that they can even be had after some time.

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IMC Tools Deployed by Yippee before the Maggi Controversy:

Sales Promotion
Biggest cross marketing
deal in association with
PayTM as “Yippee to
Public Relations
Rupee” campaign with
1. Sponsoring consumers getting
events exclusively recharge money atleast
for children equal to MRP of
2. “Derek’s YiPPee! purchased pack upto
Advertisements: Challenge”: 50k of PayTM money!
Knowledge based
1. Cricket TVC:
show with
Non sticky
quizmaster Derek
2. Punish TVC: O’Brien for middle
Round shape, school children
hence longer
Print Ads: noodles
Focusing on 3. Saloon TVC:
benefit More variety of
positioning over masala flavors to
Maggi as “The choose from
Better Noodles”

Advertisements
Its tagline reads “It’s better no?” which clearly aims to delineate the added benefits offered by
Yippee as compared to other noodles in the market. It aims to comparatively differentiate itself
from competing brands. The first three TVCs featured the same child actor and were designed to
attack competitors (mainly Maggi) on three specific points. These commercials of Sunfeast Yippee
noodles are based on clear benefit positioning over Maggie.

 Cricket TVC: It shows the child actor playing cricket (Note: Trying to target children through
sports they play such as cricket). But his noodles are ready and since they will lump up
after sometime (Note: the ad indirectly references Maggi here when another child points to
lumped up noodles) But Rahul can have his Yippee noodles after some time, because they
are non-sticky in nature. Hence, better!

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  Punish TVC: It shows the child punished and standing in a corner, something that all
children will relate to. And then the child points out the benefit of round things and how they
are all around us. Like for example, earth is also round. If all good things are round, then
why not noodles? Rahul enjoys longer noodles because Yippee is round in shape. Hence,
better!
 Saloon TVC: Here, the child questions another adult as to why he doesn’t enjoy variety of
choices of flavours in noodles as well, if he wants choices for everything? Rahul can enjoy
two choices of masala Yippee noodles. Hence, better!

Print Ads

Again, benefit positioning with respect to Maggi! The print ads actually list down the reasons why
customers should consider Yippee to be “the better noodles”. Yippee works on establishing that
they have equivalent POP’s to that provided by Maggi, and then through benefit positioning,
highlight the POD’s Yippee offers such as longer, non-sticky noodles.

Public Relations
Derek O’Brien ran 2,500 preliminary events at 1,200 schools across 45 cities for flagship project:
the Derek’s Yippee! Challenge in association with Oxford Bookstore, which was a knowledge-

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based shows that test general awareness, soft skills, communication and team-building
capabilities and generally seek to equip young boys and girls for the contemporary world. It is
meant exclusively for middle-school children – classes V-VII. In February 2015, the final rounds of
this event were conducted by the quizmaster himself. The selling factor here was the presence of
a quizmaster that was loved all across the nation by children, and targeting the schools for
promotion of a brand through knowledge based shows that promoted learning and education
among children. The target was also chosen with much deliberation: middle school. This PR
initiative improved the brand visibility of Yippee and promoted it as a children-friendly, fun and
innovative brand.

Sales Promotion
Mobile marketplace and mobile and DTH (direct-to-home) recharge platform Paytm signed a Rs
200-250 crore cross-marketing deal with ITC's noodle brand Yippee! The campaign, called
'Yippee! to Rupee‘, ran in 2014 with Paytm offering recharge coupons equivalent to the cost of the
Yippee! noodle packs purchased and allowing consumers to shop on its platform. The campaign
ensured that every consumer buying a pack of Yippee! Noodles won a gift value at least equal to
the MRP of the pack and all the way up to INR 50,000.

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Paytm, which did a similar campaign with Pepsi and Cadbury 5 Star earlier, has said this is its
biggest cross-marketing deal till date. "Since the redemption of the coupons will happen on the
Paytm platform the campaign will drive trials for us and also gives us access to new consumers,"
said Shankar Nath, senior vice-president at Paytm. Several brands run cross-marketing pro
motions, which may be relevant to 30-40% of the people they reach out to, Nath said. "But since
mobile recharge has become a currency, the consumer base we will reach out through Yippee! is
much larger and the traction will be also much higher, "he added.
While the ITC spokesperson could not be reached for comment, Nath said following the campaign
with Pepsi during the Indian Premier League this year, Paytm got five-six million new customers.
Paytm's total registered base is 20 million, of which about 15 million are regular users. The
company registers about 600,000 orders a day and transactions worth about Rs 300 crore every
month. ITC will use over a million packs across India for the campaign. The company has also
created an advertising campaign to support the promotion. While Ogilvy & Mather has made the
creatives, Madison will be responsible for the media planning and buying for the campaign, which
includes television, print and radio.

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Post Maggi Crisis: Response from Yippee

After the crisis, Yippee shifted its communication to the audiences from being different to being
safe. They did this using the following IMC Tools:

Internet/ Interactive
Marketing
1. Release of individual
videos on topics like
Public Relations: “What ingredients go
into Yipee Noodles?”,
1. 21st June: Statement “Where can I find
issued by company testing reports of
about Yipee being safe, Yipee?”, etc.
"No added MSG”
2. “You ask we answer”
2. July 31st: ITC campaign-log on to
Chairman said that website/ call on toll free
Advertisements: Yipee was safe at a time number to ask
when other brands were questions.
1. “Absolutely Safe” TVC being brought down by
2. “You ask we answer” the FSSAI. 3. Actively promoting
TVC safety of Yipee on
social media platforms
3. Flyers distributed to
retailers about safety

Advertisements

The following 2 TVC Campaigns were run:

1. “Absolutely Safe” Campaign:

Known for luring mothers with the promise of a ‘quick to prepare’ snack and children with a lip-
smacking one, instant noodles brands are suddenly seen changing communication tracks—from
being just a snack which solves hunger problems to a food item which is safe for consumption.
And among the first ones to proclaim safety was ITC’s Yippee. While others in the category were
still contemplating their next step, ITC’s Sunfeast Yippee Noodles was back in business with its
‘Absolutely safe’ communication. The noodles brand which was banned in Gujarat for failing the
safety test, has upped the ante by launching a reassurance TVC.
With the Maggi scare and the aftermath of Maggi ban, ITC has recently launched a new TVC for
its Yippee noodles brand, assuring customers about its safety, keeping in mind the health
concerns of its customers. A variation of its predecessor released in May, this ad uses old

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montages of a child and his neighbor enjoying instant noodles. But the TVC now focuses on
safety, with montages of the manufacturing unit. Don’t miss how the ‘Absolutely safe’ super
appears before the ‘Tasty’ one, reassuring consumers in a category mired in controversy.

Link: https://www.youtube.com/watch?v=N4r55grqDOA

2. “You ask we answer” Campaign:

On the digital forum as well, the brand is taking initiatives to educate users on MSG, lead and
Glutamate. They have also gone ahead to release individual videos on important topics like:
 ‘How is quality ensured in each packet of Yippee? Noodles?’
 ‘What ingredients go into Yippee Noodles?’
 ‘Where can I find the testing reports for Yippee!?’

This comes as a result of fear instilled in the minds of every noodles lover, after the Maggi problem
erupted in the month of late May.

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 Link: https://www.youtube.com/watch?v=MNLZ6PnvYI4
Apart from these advertisements, the retailers and distributors were given flyers by ITC stating that
‘Yippee! Noodles are safe’ to be given out to customers.

Public Relations

ITC has been very actively issuing messages to the public about the safety of its noodles using the
press as a medium. On June 12, the company issued a statement assuring customers on quality
and safety of its products and clarifying its ground on the phrase ‘Contains No added MSG’.
According to the statement, the FSSAI has expressed the opinion that the phrase is inappropriate.
Therefore, ITC announced that it is voluntarily taking steps to remove the phrase 'No added MSG'
from its labels in its new batches of packaging and consumers should ignore this phrase on the
current packaging.
According to reports, On July 31st, ITC Chairman YC Deveshwar said that the noodles
manufactured by the company under the Yippee brand are safe and have passed all the tests. He
further pointed out, that Yippee! Noodles have been found to be in compliance with all food safety
regulations, at a time, when most of the other noodles brand were asked to stop sale of their
products after the Maggi controversy broke out.

Internet/ Interactive Marketing

Yippee has relied heavily on the Internet for its communications.

1. “You ask we answer campaign”:

To facilitate the campaign, Yippee encourages customers to go to the website and register
questions, or give a call on the toll free number.

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 Link: http://www.sunfeastyippee.com/

As many as 12 videos have already been uploaded on their YouTube channel and actively shared
on Facebook and Twitter, answering the questions of the consumers.

Link: https://www.youtube.com/watch?v=0KmB96UiBMA

2. Active use of Social Media Platforms:

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Yippee actively uses social media platforms like Facebook and Twitter to connect with audiences.

Hits and Miss: Our Analysis

What Maggi India did?

1. Blocked all lines of communication barring a computer-generated statement: A computer-

generated statement is a highly impersonal way of communicating with customers in the
wake of such a critical situation. It showed the customers that Nestle doesn’t care enough
about the customers’ health to deal with the matter promptly and personally.

2. Social media response was a disaster: After the news of such a crisis breaks out,
customers turn to the Internet to know more about it. A swift and well thought out social
media response from Nestle would have curbed the disaster before it blew up.

3. Nestle stayed in denial: The customers felt like by denying the whole problem, Nestle was
trying to cheat them.

4. CEO came out a month later to speak to press: The CEO should have taken charge
immediately and spoken to the press promptly, by giving a strong and honest statement.

5. Complacent attitude of Maggi and not capitalizing the golden-hour to meet the audience:
Nestle ignored the golden hour, the hour following the break out of the crisis.

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 6. Failed to target key journalists, opinion formers or distribute evidence to back-up its claims
that its products were safe: Nestle refused to completely acknowledge its faults or reach out
to the press for communicating its defense.

What Maggi India should have done?

1. Call back the product voluntarily:

By calling back the product voluntarily, Nestle could have showed its customers that their
health is top priority for the company and they take full responsibility for the situation and
will take measures to remedy it. Nestle should have recalled all the stocks proactively just
to convey their commitment to the well being of Indian consumers. This would have given a
clear signal to the consumers that here is a company that is willing takes losses but not
willing to compromise on consumer confidence.

2. Add a human touch to social media responses and respond quickly:

In this age of digital media you can't wait even for an hour before you respond to an issue
like this. You have to start responding/acknowledging in real time. It is not about giving out
legally vetted official statement but engaging with the audience in some form so that one
can't be accused of 'hiding' from the controversy. Nestle could have appointed an official
'face' who could reassure the consumers about their commitment to resolving the issue
than merely give out delayed statements that lacked human touch.

3. Bringing in brand evangelists:

Nestle should have brought in credible and respected brand evangelists to come out and
speak up- like Amitabh Bachchan did for Cadbury - that we trust it and have had it for
years. They could have also brought in real life consumers to tell their story and reaffirm
faith in the brand.

4. Keeping the crisis geographically locked up:

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 When the issue first erupted, there was a healthy chance to keep it geographically locked
up. Nestle should have identified the factory that was the source for the suspect samples
and locked in the batch, containing and isolating the controversy at the very root. On the
contrary, a dogged refusal to draw boundaries sucked the whole brand in.

5. Update and acknowledge the controversy:

Somewhere between the clean chits of various food authorities and the rejections by Indian
labs, there is a batch or two that may have fallen between the cracks. However, the biggest
blunder in the episode was Nestle's failure to stand up and take ownership of the product
and the brand. All that was needed was for the India leadership team to man the ship and
communicate leadership. To say, that we own this brand, we will investigate and if a
problem is found, we shall fix it because we care.

6. Have more ‘Friends and News Leaders’ in the industry:

Because Maggi was the leading brand and had a monopoly in the market, somewhere
along the line Nestle became a little arrogant and ignored the importance of making
“friends” in the PR industry. They should have maintained healthy relationships with the
media personnel, key journalists and opinion leaders so that these people could have stood
up for the brand in the face of the controversy.

REFERENCE

https://www.maggi.in/default.aspx
https://brandeminence.wordpress.com/category/sales-promotions/
http://articles.economictimes.indiatimes.com/2012-08-03/news/33020104_1_nestle-stock-
md-antonio-helio-waszyk-nescafe
https://brandalyzer.wordpress.com/2011/09/29/promotions-maggi-club/

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http://www.prmoment.in/1922/has-the-maggi-crisis-created-pr-biggest-ever-
opportunity.aspx
Cricket: https://www.youtube.com/watch?v=RC2S1yygV98
Punish: https://www.youtube.com/watch?v=7MFBh10NIos
Saloon: https://www.youtube.com/watch?v=5FKt220f-54

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