Product Life Cycle

Of Maggi
The Different 1.Introduction

Stages Of 2.Growth

Product Life 3.Maturity

Cycle Of Maggi 4.Decline

 Introduction
• Popular in many countries like Australia, New Zealand, South Africa, India, Nestle wanting to
explore the potential for such instant food/noodle brand in India, launched Maggi in the year
1982. It took several years and lot of money for Nestle to establish its noodles brand in India.
• When Maggi noodles was launched in India it had segmented the based on age and urban
families targeting kids, youth and office goers positioning itself as fast to cook, 2 minute
noodles, with the tagline of “taste bhi, Health bhi”. Positioning however was not an issue, as no
instant noodle had been launched in India, Maggi was the first one.
• In the initial stages, Maggi had high failure rates, frequent product modifications(to adjust to
Indian consumer), high marketing and product cost as they were trying to build product
awareness. With a lot of ups and downs and high failure rates
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 Growth
• Around 1985, the demand for Maggi had increased tremendously in India
recovering their developmental costs and increasing the sales rate. Maggi remained
the monopoly in the Indian Market till 1990, after which Top Ramen entered the
market reducing the market share of Maggi a little
• 10 years back Maggi had 50% of the market, In order to increase its sales again,
Maggi introduced a new flavour in 1997 which wasn’t well accepted by the consumer,
thus in 1999, Nestle re-launched its old flavour of Maggi, getting back on track in
terms of sales.
• Over the years, Nestle has also introduced many products under the Maggi brand,
like the ketchups, soup, oats, pasta, more noodle flavours etc.
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 Maturity
• During it’s maturity stage, Maggi’s sales were at peak, production costs were low
and profits were high. In 2003, Hindustan Unilever Limited (HUL) was all set to take on
Nestle’s Maggi by launching a new category of liquid snacks under it’s food brand
Knorr Annapurna.
• Priced aggressively at 5Rs, the new product called Knorr Annapurna Soupy Snax was
made available in 4 varieties. Like Maggi, it had a similar target market and positioned
it in a similar manner.
• Maggi faced tough competition from Top Ramen. That led to decline in sales.

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 Decline
•There were certain hiccups in the way- like the banning of Maggi. Due to high lead
content almost led us to believe that our favourite noodle brand is now off the shelf.
And may be reached its last phase
• Nestle invested more in the research of Maggi and took corrective actions. For
example, Internal employee engagement, increased campaign, more activities on
social media, and revived back from the near disaster.
• Talking about the current scenario, After the world was hit by the Corona Virus
Pandemic In the year 2019, Maggi sales shot up by 25% as consumers stayed home
and stockpiled instant noodles.
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 Conclusion
• This was my take on the product life cycle of Maggi. In this article we talked about
What are the 4 stages of product life cycle the Introduction, growth, maturity and
decline stages.
• Maggi even today is the most liked and valuable instant noodle brand. And now has
expanded its reach into other diverse flavours and products.

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