Product life

cycle of

Maggi

INTRODUCTION ABOUT PRODUCT.

• MAGGI COMES IN EXISTENCE IN 1872 WHEN JULIUS MAGGI TOOK OVER HER FATHER’S BUSINESS.

• LAUNCHED IN INDIA BY NESTLE IN 1982.• CURRENTLY HAVING AROUND 94% OF

MARKET SHARE IN THIS SEGMENT.• HAVING THE WIDE VARIETIES OF PRODUCT

LIKE KETCHUP,SOUPS,COOKING AIDS ETC.

MAGGI IN INDIA‘Fast to Cook and Good to

Eat’• Maggi noodles is a brand of instant noodles made by

Nestle.• Maggi is the iconic brand of Nestlé• Maggi has been Nestlé's flagship culinary not only in

India but globally as well.• Nestlé unleashed Brand Maggi in India 25years ago

in 1983 with the launch of its traditional 2-minutes noodles.

• Almost 90% of shares in market.

PRODUCT LIFE CYCLE

Product life cycle is a concept that provides a way to trace the stages of a product’s acceptance , from its introduction(birth) to its decline.

INTRODUCTORY STAGE.

• THE PRODUCT LAUNCHED KEEPING IN MIND THE WORKING WOMEN AND CHILDREN.

• IT WAS THE PIONEER IN INSTANT NOODLE MARKET.• Lower price• “Bas 2 Minute”• DISTRIBUTION CHANNEL PRODUCER-DISTRIBUTORS-RETAILERS-CONSUMERS.

• Varieties: Tomato, Masala, Curry, Chicken

• No competition• Because of its first-mover advantage• High production costs

•

Market Penetration➢Promotional campaigns in schools➢Advertising strategies : focus on young children➢New product innovations according to the needs of customers : vegetable Atta noodles , Cuppa mania , Dal Atta noodles ➢Different packaging : 50grms , 100grms packs

GROWTH• INCREASED NUMBER OF SALES.• ACCEPTED AS READY TO EAT FOOD.• ENJOYED 50% MARKET SHARE VALUED AT 250

CRORE.• PROFITS BEGIN TO RISE.• TO EAT FAST TO COOK.”

GROWTH con……….

• MAGGI BECOME THE NO. 1 BRAND IN INSTANT NOODLE MARKET.

• PRICE- prices were kept normal.• PRODUCT- no any new changes.• PROMOTION- promoted with tag line “GOOD

MATURITY

Declining sales growth.Saturated market.Extending product line.Large promotional offers. Entry of a Competitor ENTRANCE OF NEW PLAYERS. -DURING THE PERIOD OF 90’S MAGGI FACES THE TOUGH COMPETITION FROM TOP RAMEN.

MATURITY CONT…

PRODUCT -THE MAGGI INTRODUCES THE WIDE

VARIETY OF PRODUCTS LIKE DAL ATTA NOODLES,CHICKEN MAGGI, MAGGI CUPPA MANIA.

PRICE - MAGGI STILL COMES IN VERY

AFFORDABLE PRICES STARTING FROM RS.5,THEY REDUCED THE QUANTITY INSTEAD OF INCREASING PRICE.

.MATURITY CONT…

DISTRIBUTION• Distribution become more intensive. various

intensive programs for encouraging product over other competitors.

• Different packaging : 50grms , 100grms packs

DECLINE(If No Innovation made)• SALES SAW A DECLINE IN 1990’S. -FORMULATION CHANGED FROM FRIED

BASE TO AIR DRIED BASE.• NEW PRODUCTS LAUNCHED BUT FAILED. -DAL ATTA NOODLES SAMBAR FLAVOR.• TOUGH COMPETITION FROM TOP RAMEN.• Failure of other products like soups ,cooking

aids etc.

•

Analysis why Atta Noodles failed ??○In 2005 NIL launched Maggi

Veg. Atta noodles○It was based on consumer's needs for more whole grain based products○Extensive research and development was done by the NIL team○Maggi Atta noodles provided all the essential dietary fibre of whole wheat grains○Maggi Atta noodles were priced more than the regular noodles in the market

•

Reasons For Failure

PRICE: The price of Atta noodles was little more than the regular noodles

FALSE CLAIMS: In October 2008 Nestle mistakenly aired an ad claiming that noodles helped "in building strong muscles and bones ".The Indian Advertising Standards Authority declared it a false claim later

Reasons For Failure con....

⇨NOT PURELY VEGETARIAN: Maggi Atta noodles contained additives such as E250d and E627 which are made of fish and hence not suitable for vegetarians

⇨LACK OF ESSENTIAL NUTRIENTS: It lacked presence of essential vitamins such as A and C. Moreover it targeted health conscious people but it contained a high percentage of fats

REINTRODUCTION OF PRODUCT

• IN 1999 COMPANY AGAIN CHANGE THE FORMATION OF PRODUCT.

• COMPANY INCREASE THE DISTRIBTION OF THE PRODUCT.

• ALONGWITH CHILDREN AND WORKING WOMEN COMPANY ALSO FOCUSED ON OTHER SEGMENTS ALSO.

• COMPANY COME UP WITH VARIOUS INTERESTING ADS.

•

Segmentation To Differentiation

Classic Noodles - 5 to 10 yrsVeg. Atta Noodles - health consciousRice Mania – teenagersCuppa Mania - office goers

• People accepted the new flavors. • Sales of Maggi starting increased.• Increase in the profits • Production cost was recovered.• Now Nestle Maggi noodles enjoys a

90% market share in this segment .

Some Maggi Noodles Advertisements

Hurdles and Solutions

• Sales declined in 1990’s• Competition increased

in noodles section• Launch of new product

in market

• NIL created new category-2-minites Instant Noodles.

• Changed advertising campaign/Tag lines

• Sales promotion in Schools and offices.

• Product positioning as fast relief from hunger

MARKET PENETRATION STRATEGIES

• ‘Convenience product’ for mothers and ‘fun product’ for children.

• New products innovation- Veg Atta Noodles,Dal Atta Noodles,Cuppa Mania.

• Availability in different packs.• Conducting regular market research.

Current Scenario Of Maggi

• Leading Brand• Reasonable pricing• Diversification• Creative interaction blogs for customers• Focus mainly on health benefits.

Current World Market Share

Product Life Cycle