VS

PRODUCT LIFE CYCLE OF

MAGGI AND YIPPEE
NOODLES
Presented by: Chander Mauli Tripathi(26)

Submitted to: Prof. Radhika Mahajan

 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).

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Overview of Maggi
Its brand of instant noodles made by Nestle India Ltd.
It was found by Maggi family in Switzerland in 19 th
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 Noodles brand in India .
 Now it enjoys around 80% market share in this segment. 3
Introductory Stage

 High failure rates

 No competition
 High marketing and production cost
 Nestle India Limited an Indian subsidiary of the global FMCG major,
Nestle introduced the Maggi brand in India with its Maggi 2 minute
noodles.

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Market Penetration

 Promotional campaign in school

 Advertising strategies: focus on young children
 New product inventions according to the need of customers : Vegetable Atta
noodles, Oats noodles.
 Different packaging: 50grms, 100grms packs.

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Growth Stage

 Increasing rates of sales

 Entrance of competitors
 Initial healthy profits
 Development cost are recovered
 In 1990 the demand for Maggi noodles started to fall due to launch of Top
Ramen, another instant noodles product.
 So in order to increase sales Nestle formulated the flavour of Maggi
noodles which was not accepted by the customers.
 In 1999 Nestle re-launched the old version of Maggi noodles, after which
the sales revived

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Maturity Stage

 Declining sales growth

 Saturated market
 Extending product lines
 Heavy promotions to dealers and customers
 Price and profit falls

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 Decline Stage

 Long drop in sales

 Large inventories of unsold items
 Eliminations of all non-essential marketing expenses

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 Overview of Yippee

 In 2010, ITC launched its noodles brand named Sunfeast

Yippee.
 Sunfeast (ITC) is a worthy player to take on the might of
Maggi. ITC is a company that is not averse to taking risk and
have a huge cash reserve to fight a marketing war with Nestle.
 ITC product portfolio has been further expanded with
Sunfeast Yippee Instant noodles.
 Wheat is also a key ingredient of the noodles.
 At present, Sunfeast Yippee is available in three variants
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Chinese Masala, Classic Masala and Magic Masala.
 Introductory Stage

 Yippee was introduced in the market in

2010 to compete against the market leader
NIL Maggi.
 Yippee till 2015 before Maggi crisis was
growing at an moderate rate.
 As Maggi has gained it's market share by
positioning themselves, Yippee attempted to
position themselves in some different ways
and coming up with solutions of problem
which were faced by Maggi user's.

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Market Penetration

 Promotional campaign through various attractive advertisements.

 Mainly targeting children and grab their attention.
 New product development by offering non-sticky noodles which differentiate it
from Maggi.
 Different packaging: 70grms, 140grms, 240grms

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Growth Stage

  Before Maggi crisis ITC Yippee was growing at around 40% every year.
 During the period of Maggi ban it growth jumped to 80% doubled up the
market share of yippee in 2016.
 As the result, Yippee gained around 40% market share and stood 2nd
position while the first was still the Maggi.

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Thank You

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