MAGGI PRODUCT LIFE CYCLE

Mohammed Salahuddin

INTRODUCTION
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It s Brand of instant Noodle made by Nestle India Ltd. It was found by Maggi family in Switzerland in 19th century. Nestle launched Maggi for first time in India in 1982. The Brand is popular in Australia, India, Malaysia, New Zealand, Singapore. Nestle wanted to explore the potential for instant food in Indian market. It took several years and lot of money for Nestle to establish its Noodle brand in India. Now it enjoys around 90% market share in this segment.

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‡ ‡ ‡ ‡ . Stage at which Maggi is in the product life cycle.ISSUES ‡ Different phases product life cycle of Maggi Why atta noodle was a failure? Strategies taken to establish new product category What measures NIL should take to sustain the image of a popular brand image.

.PRODUCT LIFE CYCLE ‡ A concept that provides a way to trace the stages of a product s acceptance. from its introduction (birth) to its decline (death).

GRAPHICAL REPRESENTATION OF A TYPICAL LIFE CYCLE .

INTRODUCTORY STAGE High failure rates  No competition  Frequent product modification  Limited distribution  High marketing and production costs  Promotion focuses on awareness and information  Nestle India Ltd (NIL). NIL created an entirely new food category ± instant noodle ± in Indian packaged food market. with its launch of Maggi 2 minute noodles. Indian subsidiary of the global FMCG major. Because of its first-mover advantage.  . an instant noodles product  With launch of Maggi noodles. Nestle SA. NIL successfully managed to retain its leadership in the instant noodles category. introduction of Maggi brand in India in 1982.

STPD ANALYSIS Segmentation Targeting Positioning Differentiation A K Y L T P T .

3) New product innovation according to the needs of consumers ± Veg. Cuppa Mania. Atta Noodles. 2) Advertising strategies ± focusing on kids. DalAtta Noodles.MAR ET PENETRATION Promotional campaigns in school. 4) Availability in different packages ± 50 and 100 gms. 1) .

Over the years. However. In order to improve sales. another instant noodles product. NIL changed the formulation of Maggi noodles in 1997. NIL also introduced several other products like soups and cooking aids under the Maggi brand. this proved to be a mistake. During the 1990s.GROWTH STAGE             Increasing rate of sales Entrance of competitors Initial healthy profits Promotion emphasizes brand ads Prices normally fall Develop costs are recovered 10 years back it enjoyed around 50% market share in this segment which was valued at around 250 crores. In March '99. as consumer did not like the taste of the new noodle. after which sales revived. due to growing popularity of Top Ramen. NIL re-introduced the old formulation of the noodles. . the sales of Maggi noodles declined.

x i i . t i .t rti l rl ri t f li r tl ' i r M i r t i l t ri l ffi r . i M i. S S ill t r t t ll l r t t r . l i t r . S t x r ill . rr A r rr A r S R . ri ti .MATURITY STAGE          li i l r t S t r t r t Ext i r t li St li ti r t r ti t ri r fit f ll I .

Note: Rate of decline depends on change in tastes or adoption of substitute products .   DECLINE STAGE IF NO PRODUCT INNOVATION INTRODUCED Long run drop in sales Large inventories of unsold items Elimination of all nonessential marketing e penses.

EXTENDING THE PLC  Change product Change product use Change product image Change product positioning    .

CATEGORIES OF NEW PRODUCT/REVISING  New To-The-World New Product Lines Product Line Additions Improvements/Revisions Repositioned Products Low Priced Products      .

WHY ATTA NOODLES FAILED?     In 2005. Maggi Vegetable Atta Noodles will provide the dietary fibre of whole grains and provide daily nutrition. Based on consumer needs and evolving trends for more whole grain based products E tensive Research and Development e pertise to develop Maggi Vegetable Atta Noodles. NIL introduced Maggi Vegetable Atta Noodles. .

ATTA NOODLE INGREDIENTS .

NUTRITION FACTS .

COMPARING PRICES .

The British Advertising Standards Authority said that it was a false claim. . C and also fat content is more compare to carbohydrates. Price ± Atta Noodle was little more than Maggi 2 minutes noodle. E627 is partly prepared from fish. Not Pure Vegetarian ± Maggi Noodles also contains additives E627. Lack of essential nutrients ± New Atta Noodle lacks Vitamin A.FAILURE CAUSES      Indian Psyche ± Indian palate is not too adventurous in trying new tastes. False Claim: Nestle mistakenly aired that noodle 'help to build strong muscles and bone'. New product with new taste from different culture will have difficulty in appealing to Indian market.

Strengthen the distribution channel of the rural areas within 100 kms of all the metros.000. . Launch new advertisement campaign (TV. Focus on creating distinctive image based on twin benefits of 'Instant' and 'Healthy' Conduct promotional campaigns at schools in small towns with population more than 10.SUGGESTIVE PROMOTIONAL STRATEGIES      They should conduct test marketing before launching new product. radio and print media commercials) with the brand ambassador.

79. 55 cr in India. Creative customers. Reasonable competitive pricing.00.000 bo es ± Rs. 90000 bo es ± Rs.CURRENT SCENARIO OF MAGGI  Leading Brand in India as well as world.000 in Mumbai ± 10. Current Sales ± Appro .49. interaction blog for    . 4.

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