38748673 Product Life Cycle of Maggi

7/31/2019 38748673 Product Life Cycle of Maggi

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NESTLE MAGGI

Product Life Cycle

RAKESH KUMARMUKESH KUMAR


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Introduction To Nestle 2-Minute MaggiNoodles

It's a brand of instant noodles made by Nestle India Limited.It was found by the Nestle family based in Switzerland in the19th century.Nestle launched Maggi in India in year 1982.

Nestle wanted to explore the potential for instant food amongthe Indian consumers.It took several years and investment on part of Nestle toestablish itself in India.Now it enjoys a 90% market share in this segment .


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A concept that provides a way to trace the stages of aproduct's acceptance , from it's introduction {birth} toit's decline {death}.

Product Life Cycle


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Introductory Stage

High failure ratesNo competitionFrequent modificationsHigh production costsNestle India limited , an Indian subsidiary of the global FMCG major ,Nestle introduced the Maggi brand in India with it's Maggi 2-minute noodles With the launch of Maggi noodles , NIL create an entirely new food category - instant food in the Indian packaged food market .Since then NIL has beenable to retain it's leadership in the instant noodles food category


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Market Pene

Promotional campaigns in schools Advertising strategies : focus on youngchildren New product innovations according to theneeds of customers : vegetable Atta noodles ,Cuppa mania , Dal Atta noodles Different packaging : 50grms , 100grms

packs


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Growth StageIncreasing rates of salesEntrance of competitorsInitial healthy profitsDevelopment costs are recoveredIn early 1990's the demand for Maggi noodles started to fall due to launch of

Top Ramen ,another instant noodle productSo in order to increase sales , NIL formulated the flavor of Maggi noodleswhich was not accepted by the consumersIn March 1999 NIL re- launched the old version of Maggi noodles , afterwhich the sales revived


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Maturity StageDeclining sales growthSaturated marketExtending product linesHeavy promotions to dealers and consumersPrices and profits fall

In 2003 HLL introduced Knorr Annapurna , a liquid snack segment incompetition to NIL's Maggi rangeThe new product by HLL was priced at rs.5 and came in 4 variantsLike Maggi ,Soupy Snax targeted all age-groups ,particularly office goers


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Segmentation To Differentiation Classic Noodles - 5 to 10 yrs Veg. Atta Noodles - health conscious Rice Mania - teenagers Cuppa Mania - office goers


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Decline Stage{if no innovations are made}

Long drop in salesLarge inventories of unsold itemsElimination of all non-essentialmarketing expenses


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Analysis why Atta Noodles failed ?? In 2005 NIL launched Maggi

Veg. Atta noodles It was based on consumer'sneeds for more whole grain basedproducts Extensive research anddevelopment was done by the NILteam Maggi Atta noodles provided allthe essential dietary fibre of whole wheat grains Maggi Atta noodles were priced

more than the regular noodles inthe market


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Reasons For Failure

PRICE: The price of Atta noodles was little more than theregular noodles FALSE CLAIMS: In October 2008 Nestle mistakenly aired anad claiming that noodles helped "in building strong musclesand bones ".The Indian Advertising Standards Authority declared it a false claim later NOT PURELY VEGETARIAN: Maggi Atta noodles containedadditives such as E250d and E627 which are made of fish and

hence not suitable for vegetarians LACK OF ESSENTIAL NUTRIENTS: It lacked presence of essential vitamins such as A and C. Moreover it targeted healthconscious people but it contained a high percentage of fats .


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Some Maggi NoodlesAdvertisements


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THE END

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38748673 Product Life Cycle of Maggi