Ramdhar Maheshwari Lions Business School

Affiliated To:To:Tilak Maharashtra University, Pune.

Project of:of:-

Product Life Cycle:Cycle:Presented By:By:Ms. Neha agarwal Ms. Ramnik kaur Mst. Amar jain Mst. Siddharth bajaj

¨What is brand name that comes to your mind when I say the word Noodles?

 Nestle wanted to explore the potential for such an instant food among the Indian market.  In 2005.  The brand is popular in India. Singapore. Nestle SA. NIL started offering a range of new healthy products under the maggi brand.About ³Maggi´ 2-Minute Noodle  Nestle India Ltd. New Zealand. Australia.  With a launch of Maggi noodles. (NIL).in the Indian package food market.  It was found by the Maggi family in Switzerland in the 19thcentury. South Africa. in a bid to attract health-conscious consumers. . Malaysia.  It took several years and lot of money for nestle to establish its noodles brand in India. The Indian subsidiary of the global FMGC major. NIL create an entirely new food categoryinstant noodles. introduced the maggi brand in India in 1984.

Product of nestle ³Maggi´          Maggi Noodles Maggi Vegetable Noodles Maggi Dal Atta Noodles Maggi Rice Noodles Mania Maggi Sauces Maggi Healthy Soups Maggi Magic Cubes Maggi Pichkoo Maggi Cuppa Mania .

(NIL). Over the years.  The dal atta noodles were made of whole wheat and contained pulses. sauces and ketchups. under the Maggi brand. This product id under the popular Maggi brand. . and positioned as a healthy instant noodles. Nestle India Ltd. cooking aids (seasonings). soups. launches a new instant noodles product called Maggi Dal Atta noodles. Maggi noodles became a popular snack food product in India. etc.  NIL offered a variety of culinary product such as instant Noodles.³Maggi´ takes health route  In May 2006.

.  Also they are having a strong competition with a local manufacture.Competition¶s of ³Maggi´  During 1990s the sales of maggi noodles declined.  Maggi is also facing competition with the chowmin. and this was attributed partly to the growing popularity of top ramen.

 The noodles tagline ³fast to cook.  The basic problem the brand faced is the Indian psyche. . good to eat´ was also in keeping with this positioning.  To overcome this NIL conducted.  However the sale of maggi was not picking up despite of heavy media advertising.  They promoted the product further by distributing free samples giving gifts on return of empty packets.Initial Strategies of ³Maggi´  It has faced lot of hurdles in its journey in India.

Top Raman Noodles. .  But Maggi has taken care of consumers likes and dislikes and went through a good process of New Product Development to achieve the consumer satisfaction. and consistently innovated and renovated itself to make life easier and happier for them. But for being a trusted brand Maggi has also faced many hurdles. Dal Atta Noodles etc. but these products were not successful: Ketchups. Tastemakers. Indo nissin a Japanese noodles had given Maggi a good competition.  In 1990 the sale of Maggi was decline.  Some Maggi Products were also failed e. Soups.  Maggi launched some new products under their brand.Hurdle faced by ³Maggi´  ³Maggi´ is a trusted brand because it has understood the consumers evolving needs. etc.g.

What is product life-cycle? life Product life cycle is a series of stages start from introduction stage of product and end on decline stage.  Product life cycle change from product to product each company PLC is different from other. . revenues and customers.  At each stage organization take different strategy according to product nature. profits. environment.  Some product move from introduction stage to maturity in a fly like fashion (shoes and clothes) and decline in a short span of time.

 Profit rise and fall at different stages.  Product requires different strategeies.Concept of PLC  Product have a limited Life.  Product Sales pass through distinct Stages. Benefits of PLC  Reduced time to market  Improved product quality  Saving through the reuse of original data .

..g.g.g.. pet rocks) .Product Life-Cycle Applications Life Product class has the longest life cycle (e.g.g. is adopted quickly. gas powered cars)  Product form tends to have the standard PLC shape (e.Tide. business casual)  Fad is a fashion that enters quickly. Danish modern furniture)  Fashion is a popular style in a given field (e. and declines fast (e.g. dial telephone)  Brand can change quickly because of changing competitive attacks and responses (e...Cheer)  Style is a basic and distinctive mode of expression (e. formal clothing.

length of each stage.  Hard to forecast sales level.  Hard to identify factors that affect product¶s movement through stages.Problems of PLC  Hard to identify which stage of the PLC the product is in. and shape of PLC.  Strategy is both a cause and result of the PLC .  Hard to pinpoint when the product moves to the next stage.

Four stages of Product Life-Cycle Life- Introduction Stage Growth Stage Maturity Stage Decline Stage .

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Introduction Stage Summary of Characteristics. Objectives. & Strategies Sales Costs Profits Marketing Objectives Product Price Distribution Advertising Low Sales High cost per customers Negative Create product awareness and trial Offer a basic product Use cost-plus Build selective distribution Build product awareness among early adopters and dealers .

Growth Stage Summary of Characteristics. service. Objectives. warranty Price to penetrate market Build intensive distribution Build awareness and interest in the mass market . & Strategies Sales Costs Profits Marketing objectives Products Price Distribution Advertising Rapidly rising sales Average cost per customer Rising profits Maximize market share Offer product extensions.

& Strategies Sales Costs Profit Marketing Objectives Product Price Distribution Advertising Peak Sales Low cost per customer High profits Maximize profits While Defending Market Share Diversify Brand And Models Price to match or best competitors Build more intensive distribution Stress brand Differences .Maturity Stage Summary of Characteristics. Objectives.

Decline Stage Summary of Characteristics. Objectives. & Strategies Sales Costs Profit Marketing Objectives Product Price Distribution Advertising Declining Sales Low cost per Customer Declining Profits Reduce expenditure And milk the brand Phase out weak items Cut price Go selective: phase out unprofitable outlets Reduce to level needed to retain hard-core loyal customers .

Managing the Life Cycle  Successful life-cycle management requires predicting the shape of the curve and then successfully adapting strategies at each stage  When to consider entering the market  How to manage to capitalize on growth  It is possible to develop strategies that will extend the maturity stage. devise new uses. or design new appeals  Greatest challenge comes at the decline . modify the product.

from its introduction (birth) to its decline (death).Product life cycle of ³MAGGI´ A concept that provides a way to trace the stages of a product¶s acceptance. .

Introductory stage       High failure rates No competition Frequent product modification Limited distribution High marketing and production costs Promotion focuses on awareness and information .

In march 1999. . its proved to be a mistake. Nil change the formulation of Maggi noodles in 1997. NIL reintroduced the old formulation of the noodles. growing popularity of top ramen. as consumer did not like taste of new product.Growth stage Increasing rate of sales Entrance of competitors Initial healthy profit Price normally falls Development cost are recovered During the 1990s the sale of Maggi noodles declined due to. Over the year nil also introduced several other products like soups. However. after which the sales revived. another instant noodles product In order to improve sales. and cooking aids under the Maggi.

5 and had four variants: Two chicken option & Two vegetarian. was priced aggressively at Rs.  Like Maggi. Hindustan lever Ltd was all set to take on Nestlé's bestselling Maggi 2-min noodles by launching a new category of liquid snacks under its food brand.Maturity Stage        Declining sales growth Saturated markets Extending product line Stylistic Product changes Heavy promotion to dealers and consumers. Price and profits fall In 2003. . soupy snacks will be an in-between. called knorr annapurna soupy snacks.meals snacks and will be targeted at all age groups.  The new product. knorr Annapurna. particularly office-goers.

.Decline stage if no product Innovation brought  Long run drop is sales  Large inventories of unsold items  Elimination of all non-essential Marketing expenses.

 It is the first stage of planning and helps marketers to focus on key issues. weaknesses. Opportunities and Threats.  Opportunities and threats are external factors.  Strengths and weaknesses are internal factors. .  SWOT analysis is a tool for auditing an organization and its environment.  SWOT stands for strengths. opportunities. and threats.SWOT ANALYSIS Strengths. Weaknesses.

 Opportunities: external conditions that are helpful to achieving the objective. .  Weaknesses: attributes of the person or company that are harmful to achieving the objective.  Threats: external conditions which could do damage to the business's performance. Strengths: attributes of the person or company that are helpful to achieving the objective.

SWOT of Nestle ³Maggi´ Strength  Market leader  Brand loyalty  Distribution channel  Advertising strategy Weakness  Heavily dependent on One flavour  Minor distribution problems  Health related issues .

Opportunities  Unexploited rural markets  Increasing number of working youth  Affinity of Indians to Chinese food Threats  Competitors  Competitive pricing (Top Ramen) .

 The BCG matrix method is based on the product life cycle theory that can be used to determine what priorities should be given in the product portfolio of a business unit.  In 1960. .  It has 2 dimensions: market share and market growth. is a matrix developed by a group known as Boston Consulting Group in USA. a company should have a portfolio of products that contains both high-growth products in need of cash inputs and low-growth products that generate a lot of cash.  The market standing of the company can be analysed in four different classess. Bruce Henderson the president of the Boston consulting group Places the BCG matrix product according to market share & market growth rate in the 4 celled matrix.  To ensure long-term value creation.BCG Matrix  BCG Matrix.

Four Celled Matrix Are:Are:BCG Matrix STARS QUESTION MARKS DOGS CASH COWS .

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high market share  Have best profit  Use and generate large amounts of cash.  To maintain the market share product requires capital over and above there cash flow. .Stars  High growth.

investments needed is low.  Profits and cash generation is high .Cash cows  Low growth. . and because of the low growth. high market share.

low market share.  Deliver cash.  Very low competitive position and profit. . otherwise liquidate.Dogs  Low growth.

because high demands and low returns due to low market share. low market share.Question marks  High growth.  Have the worst cash characteristics of all. .

BCG matrix of ³MAGGI´ ³MAGGI  Product: Maggi Noodles  Position: Cash Cow (1) Maggi Noodles. . which has found more households of consumption in India that any other country in the world and has become the first preference of Indian children in terms of instant food. (3) Though the number of repeat purchasers is high in case of Maggi. the market growth rate of Noodle consumption is not very high. is only a cash cow and not a star. (2)Maggi Noodles has a significantly high market share in the Noodles market in India. the rate of increase among the new purchasers is not too high.

Now ³Maggi´ enjoys around 94% Market share in this segment. MAGGI(94%) TOP RAMEN(4%) 4% 2% OTHERS(2%) 94% .

00. ± 90000 boxes ± Rs.in  Focus mainly on Health Benefits.000 in Mumbai ± 10.maggi-club.49. 4.79. .  Creative interaction blogs for customers: www.000 boxes ± 55 cr.Current Scenario of ³Maggi´  Leading Brand in India as well as World. in India  Reasonable competitive pricing.  Current Sales: Approx.

 The company plans ³360 degree activation´ across television.  Nestle has launched an interactive website for the consumers. www. Nestle to unveil new campaign  Nestle India is set to roll out a new marketing drive to mark the 25th anniversary of its instant noodles brand. two brand extensions were made ²Maggi Bhuna Masala and Maggi Cuppa Mania Instant Noodles. beside on-ground activities. the campaign is supposed to celebrate the consumers bond with brand Maggi.meandmeri. print and the internet. .³Maggi´ turns 25.in  In 2008. Maggi Called ÄMe & MeriMaggi .

Conclusion  Plc analysis is very important tools in the hand of marketer. marketer should evaluate and adjust this strategies for promoting. pricing and distribution of product.  Better understanding is in managing profitable product and eliminating unprofitable one. .  As product moves from one stage to another stage in plc.

.Acknowledgement We like to thanks Our Mam Ms. Mansi Gaur for helping us and giving us a valuable suggestment and input throughout the project and we also like to thanks the student for showing their atmost patience.

Wikipedia.Maggi-club.Managementparadise.Nestle.Bibliography  www.com  www.com  www.com  www.Scribd.Meandmeri.Philip kotler .com  www.in  www.com  Principle of management:.Google.com  www.

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