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potential for such an Instant food by Nestle India Ltd. among the Indian market. It was found by the Maggi family in Switzerland in the 19th century. It took several years and lot of money for Nestle to establish its Nestle launched Maggi for the first Noodles brand in India. time in India in the year 1982.
The Brand is popular in: Now it enjoys around 90% market
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. Stage at which maggi is in the product life cycle.
Time
Introductory Stage
Full-Scale Launch High failure rates of New Products 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
STPD Analysis
Segmentation
Age
Targeting
Kids
Positioning
Fast to cook good to eat 2-minute noodles Taste bhi health bhi
Differentiation
Taste
Eating Habits
Youth
Flavours
Office goers
Packaging
Growth Stage
Increasing rate of sales Offered in more Entrance of competitors sizes, Initial healthy profits flavors, options 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 aids under the Maggi brand.
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 2minute 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.
STPD Analysis
Segmentation to Differentiation: Classic Noodles 5 10 yrs. Veg. Atta Noodles Health Conscious. Rice Mania Teenage Cuppa Mania Office goers, Working women.
Change product
Change product use Change product image Change product positioning
FAILURE CAUSES
1. Indian psycheThe basic problem the brand faced is the Indian Psyche. Indian Palate is not too adventurous in terms of trying new tastes. So a new product with a new taste that too from a different culture will have difficulty in appealing to Indian market.
2. PriceThe price of atta noodle was little more than maggi 2 minutes noodle 3. False claimsIn October 2008, Nestle mistakenly aired an advert that noodle "help to build strong muscles and bone". The British Advertising Standards Authority said that it was a false claim. 4. Not purely vegetarianMaggi Noodles also contains the additives E150d and E627.E627 is partly prepared from fish,and is thus not suitable for vegetarians. E150d is sometimes made from genetically modified maize
5. Lack of essential nutrientsThe new maggi atta noodles as can be seen from the fig. lacked essential vitamins A, C,also the fat content was more then carbohydrates 6. Targeted health conscious peoplebut atta noodle didnt appealed thembecause of other Substitute supplements in the market
well as World. Current Sales: Approx. 90000 boxes Rs. 4,79,49,000 in Mumbai 10,00,000 boxes 55 cr. in India Reasonable competitive pricing. Creative interaction blogs for customers: www.maggi-club.in Focus mainly on Health Benefits.
Maggi 94%
Top Ramen 4%
Other Local 2%
Maggi 94%
Top Ramen 4%
Other Local 2%
Thank you