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PLC over time

A concept that provides a way to trace the stages of a product's acceptance, from its introduction (birth)
to its decline (death).
Introductory phase:
The Introductory phase is generally characterized by the following

High failure rates


No competition
Frequent product modification
Limited distribution
High marketing and production costs
Promotion focuses on awareness and information

Nestl India Ltd. (NIL), the Indian subsidiary of the global FMCG major, Nestl SA, introduced the
Maggi brand in India in 1982, with its launch of Maggi 2 Minute Noodles, an instant noodles
product.
With the launch of Maggi noodles, NIL created an entirely new food category - instant noodles - in
the Indian packaged food market. Because of its first-mover advantage, NIL successfully managed to
retain its leadership in the instant noodles category
In order to penetrate in the market various strategies adopted by them is:
Promotional campaigns in school.
Advertising strategies: - focusing on kids.
New product innovation according to the need of consumers:
Veg. Atta Noodles.
Dal Atta Noodles.
Cuppa Mania.
Availability in different packages:
50 gms.
100 gms.
200 gms.
family packs (400gms.).
Conducting regular market research

Growth
Some of the characteristic of this stage is

Increasing rate of sales


Entrance of competitors
Initial healthy profits
Promotion emphasizes brand ads
Prices normally fall
Development costs are recovered
10 yrs back it enjoyed around 50% market share in this segment which was valued at around 250
crores.
During the 1990s, the sales of Maggi noodles declined, due to growing popularity of Top Ramen,
another instant noodles product.
In order to improve sales, NIL changed the formulation of Maggi noodles in 1997.
However, this proved to be a mistake, as consumers did not like the taste of the new noodles.
In March 1999, NIL reintroduced the old formulation of the noodles, after which the sales revived.
Over the years, NIL also introduced several other products like soups and cooking aidt you have
selected.

Maturity Stage:
Declining sales growth
Saturated markets
Extending product line
Stylistic product changes
Heavy promotions to dealers and consumers
Prices and profits fall
In 2003 Hindustan Lever Ltd was all set to take on Nestle's bestselling Maggi 2-minute noodles by
launching a new category of liquid snacks under its food brand, Knorr Annapurna.
The new product, called Knorr Annapurna Soupy Snax, was priced aggressively at Rs 5 and had four
variants: two chicken options and two vegetarian.

Like Maggi, Soupy Snax will be an in-between-meals snack and will be targeted at all age groups,
particularly office-goers.
Currently maggi is entering in Maturity stage as many competitors entered the market and the
growth rate is not as high.
Decline Stage:
It is characterized by
Long-run drop in sales:
Large inventories of unsold items
Elimination of all nonessential marketing expenses
8. Study the product, branding, pricing, retailing, distribution, advertising strategies for the brand
that you have selected.
Maggi noodles Products In India:
Nestle unleashed brand maggi in India Almost 25 years ago in 1983 with launch of its traditional 2
minutes noodles in its masala, tomato and chicken flavours, followed by its curry flavour some years
down the line.
Maggi was launched in India at the time when instant noodle was not that well known a category.
When nestle India launched maggi in country, it used the tagline, fast to cook and good to eat, to
not only promote the product but also to educate the ever growing aspirant consumer about the
advantages of using it.
Products of Maggi Noodles:
A. MAGGI-2 minute noodles
B. MAGGI Vegetable atta Noodles
C. MAGGI Cuppa Mania
D. MAGGI Vegetable Multigrainz Noodle

MAGGI 2-MINUTE Noodles is one of the largest & most loved snack food brands that define the
Instant Noodles category in India. Weve recently launched two new flavors in the short space of
two months Thrillin Curry & Tricky Tomato Noodles. Blending Emotions with ingredients, the two
new flavors deliver strongly on Taste Bhi Health Bhi. It is now available in 5 delectable flavours:
Masala, Chicken, Tricky Tomato, Thrillin Curry & Romantic Capsica.

An offering that exemplifies taste bhi health bhi, MAGGI vegetable atta noodles is tasty because it
is loaded with everyones favourites MAGGI masala and healthy because it now has more real
vegetables and is packed with the power of fibre. 85g of maggi vegetable atta noodles provides
dietary fibre equal to 3 prepared ratios, 20g each.

MAGGI, the pioneer and creator of Taste Bhi Health BHi has introduced another great testing and
healthy variant in its popular range of MAGGI Noodles.
MAGGI Vegetable Multigrainz Noodle is made with Ragi, Corn, Jowar and Wheat. It offers the
consumer multi-gun as it is a source of Protein, Calcium and Fibre and has added vegetables. It also
provides the spicy test to their customers. The inspiration for the product comes from the growing
consumer preference for a healthier lifestyle and the deep understanding that magi has developed
about Indian food habits and culture.

Since in todays fast-paced busy life, multitasking is a reality, you need something that fits with your
rushed lifestyle a product which is tasty and healthy, is convenient to prepare and eat and also
satiates your hunger.
Maggi cuppa mania is a combination of all the above. In an easy to carry on-the-go cup format,
MAGGI cuppa mania comes in two mouth watering variants masala yo! And chilly chow yo!
It is packed with real vegetables and the goodness of calcium, just add garam paani to the noodles
and voila! A cupful of delicious MAGGI cuppa mania is ready for you to eat.

Price:
Price of the companys product is considered as one of the 4 ps of marketing. It is the most
important aspect for any company in terms of decision making as it directly affects the sales and
profit of the company.
These are the prices which are set by the company for the different flavours of MAGGI Noodles.
MAGGI 2 Minute Noodles
Pack Size (gm)
Price (Rs)
Masala
50
5
Masala
100
10
Masala
200
20
Masala
400
38
Masala
600
54
Masala
800
72
Chicken
100
10
Curry
100
10
Tomato
100
10
Vegetable Atta Noodles
100
13
Vegetable Atta Noodles
400
50

As we talk about maggi, it is very popular now a day in all over the world and its main customers are
children and youngsters. As we know that MAGGI Noodles price is not very high, but there are so
many competitors in the market so company cannot set price different from their competitors.
Currently company is having the tough competition with Sun feast Yuppie Noodles and Foodles.
One advantage of the company is that noodles packets are available in different size comparing it
with the brand called Top Ramen.
PLACE
Place refers to the location where the products are available and can be sold or purchased. Buyers
can purchase products either from physical markets or from virtual markets. In a physical market,
buyers and sellers can physically meet and interact with each other whereas in a virtual market
buyers and sellers meet through internet. Thus with the ease and options through which you make
your product or service available to your customers will have an effect on your sales volumes.
Physical Distribution of Maggi noodles:
To keep up with the growing trends in the Noodles sector, an intensive dealer-distributor network is
desired. Maggi has a well established distribution network.
Maggi Distribution Network Maggi Factory

Factory Warehouse

Agent

Distributors

Wholesalers

Direct Retailers

End Consumers

Thus from the chart it can be said that the distribution network is well spread almost everywhere in
India, as it is easily available in all local stores, retail store etc.

But in order to strengthen the distribution, NIL should expand its market to Rural India with
products targeted to the market. Thus this can be one of the way by which they can increase its
volume of sales. So major focus should be done to this market as well.
PROMOTION
Promotion refers to the various strategies and ideas implemented by the marketers to make the end
- users aware of their brand. Promotion includes various techniques employed to promote and
make a brand popular amongst the masses.
Promotion can be through any of the following ways:
Advertising
Print media, Television, radio are effective ways to entice customers and make them aware of the
brands existence.
Billboards, hoardings, banners installed intelligently at strategic locations like heavy traffic areas,
crossings, railway stations, bus stands attract the passing individuals towards a particular brand.
Taglines also increase the recall value of the brand amongst the customers.
Word of mouth
One satisfied customer brings ten more customers along with him whereas one dissatisfied
customer takes away ten more customers. Thats the importance of word of mouth. Positive word
of mouth goes a long way in promoting brands amongst the customers.
Initial Strategies of Maggi
Maggi has faced lot of hurdles in its journey in India. The basic problem the brand faced is the Indian
Psyche. Initially Nestle tried to position the Noodles in the platform of convenience targeting the
working women. However, the sales of Maggi was not picking up despite of heavy Media
Advertising.
To overcome this NIL conducted a research. NIL's promotions positioned the noodles as a
'convenience product', for mothers & as a 'fun' product for children. The noodles' tagline, 'Fast to
Cook Good to Eat' was also in keeping with this positioning.

Print Ads
Maggi does not focus heavily on print media during its launch since its initial target audience was
mothers and kids. But later on some advertisements in the print media were used to highlight the
convenience factor of Maggi.

Events and Experiences


Hold the Online Maggie Recipe Challenge, wherein innovative recipes with Maggi Noodles as a base
are invited. Winning entries are compiled into an e-cookbook which is published online
Sales promotion
The company also adopted sales promotion activity in order to achieve following mentioned
objectives.
To introduce new products
To attract new customers and retain the existing ones
To maintain sales of seasonal products
To meet the challenge of competition
Various Tools used
Exchange schemes
Price-off offer
Coupons
Scratch and win offer
Money Back offer
Several initiatives were also taken by Maggi Noodles or Retailers sales promotion. This can be as
follows
Maggi was distributed free in schools and offices to promote trial
Return gifts on empty packs

Maggi fun book and stickers with funky animal facts.

Public relation

The Maggi Club - 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. Maggi projected it as maggi clubbers are fun lovers and intended to use it as
reference group.
Benefits offered to maggi-clubbers are various games like Snap safari game, Cap and mask
sets, travel India game, Disney today comic. To obtain each gift the member has to send 5
wrappers as purchase proof.
Some special privileges were given to regular members time to time.
The company also Organized Maggi school quizzes and sketching.
RESULTS OF PR ACTIVITY:
Getting closer to regular customer.
Boosted the sales.
Making valuable direct marketing database.
Recently, again, they have started Maggi fan club. This time it is operating online and they
are providing user name and password.

Displays
Various kind of displays have been arranged for welcoming the product.