Maggi Product Life Cycle Updated

7/31/2019 Maggi Product Life Cycle Updated

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08/19/08 Made by Abhinav & Nida


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FEW FACTS

Maggi

Australia, India

Malaysia, New Zealand

Nepal, South Africa

Singapore, The Philippines

India tops

Nestle 50% market share 250 crores


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ORIGIN

In 1863, Julius Maggi developed a formula to bring added taste to meals

Nestle (Swiss company/1866/Henri Nestle)

Maggi merged with Nestl in 1947

Launched in India in 1983


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PRODUCTS

Products

Traditional

Dal atta

Veg atta

Rice noodles

Maggi Masala

Other variants

Curry masala

Tomato Chicken

Masala Chicken

Rice Noodle Segments

Shahi Pulao

Lemon Masala

Chilly Chow


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Fast to Cook and Good to Eat

Maggi noodles is a brand of instant noodles made by Nestle.

Maggi is the iconic brand of Nestl

Maggi has been Nestl's flagship culinary not only in India but

globally as well.

Nestl unleashed Brand Maggi in India 29 years ago in1983

with the launch of its traditional 2-minutesnoodles.

Almost 90% of shares in market


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PRODUCT LIFE CYCLE

Product life cycle is a

concept that provides

a way to trace thestages of a products

acceptance , from

its introduction(birth) to

its decline


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.

INTRODUCTORY STAGE

The product launched keeping in mind the working

women and children.

No competition

It was the pioneer in the instant noodle market.

Distribution channel

Producer -- Distributor --

Retailer -- Consumer


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INTRODUCTION

PRICINGThe initial pricing strategy was low pricingstrategy to make product affordable.

PROMOTION

Promotion focuses on awareness and information

Promoted with the tag line

BAS 2 MINUTE.Promotion done by

- Giving gifts on empty packets.


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GROWTH

INCREASED NUMBER OF SALES.

ACCEPTED AS READY TO EAT FOOD.

ENJOYED 50% MARKET SHARE VALUED AT 250 CRORE.

PROFITS BEGIN TO RISE.

MAGGI BECOME THE NO. 1 BRAND IN INSTANT NOODLE

MARKET.

PRICE- prices were kept normal.

PRODUCT- no any new changes.

PROMOTION- promoted with tag line

GOOD TO EAT FAST TO COOK.


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MATURITY

Declining sales growth

Saturated market.

Extending product line. Large promotional offers.

Entrance of new player

During the period of 90s maggi faces the toughcompetition from top ramen.


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MATURITYPRODUCT

- Maggi introduced wide variety of products like Dal attanoodles, Chicken maggi, Maggi cuppa mania.

PRICE

- Maggi still comes in very affordable prices starting from Rs. 5,

they reduced the quantity instead of increasing price.

DISTRIBUTION

- Distribution became more intensive. Adopted variousintensive programme for encouraging the product over their

competitors in the market.


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DECLINE

Sales saw a decline in 1990s.-Formulation changed from fried base to .

air dried base.

New product launched but failed.

Dal atta noodles of sambur flavour. Tough competition from TOP RAMEN.

Failure of other products like soups, cooking aid

etc.


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Competition & Problem


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INTRODUCTION

Top Ramen is one of the noodles brand in India launched by Indo Nissin FoodsLtd.in 1991.

It was introduced as Japanese soup-type noodles which were watery and were

called Smoodles derived from SMoother noodles

It is available in different flavors like chicken, masala, curry, tomato, and egg.

Since its launch the brand has been constantly changing its sales pitch andproduct composition with little success.

Top Ramen has been trying all possible marketing tools for the past 19 years todethrone Maggi Noodles which had become a benchmark in the category.


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THE MARKETING TWIST

Maggis gaffe presented a great opportunity forTop Ramen, but then Indo-Nissin ran into atangle. Brooke Bond,which had a 26per cent

stake in Indo-Nissin and looked after thedistribution of Top Ramen, was merged withHindustan Lever Limited.

Indo-Nissin managed to finalize an alternatedistribution arrangement with Marico Industriesonly in July 1998.


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LACKING INNOVATION

The major issue faced by Top Ramen was thedifferentiation.

Top Ramen could not offer any serious differentiation to

Maggi either in terms of the product or brand.

Since there was no serious differentiation, Maggi wasable to gain back the lost ground because it was thepioneer brand who built the category.

Top Ramen also lost out when Maggi repositioned itselfin the health platform.


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Hurdles and Solutions

Journey in India

Competition increased in noodles section

Changed formulation in 1997 Lack of essential Nutrients

Claim


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REINTRODUCTION OF

PRODUCTIN 1997 company again changed the formation of its products.

Company increased the distribution of its products.

Along with children , working women, company also focused onother segments also.

Company came up with various interesting ads.

Changed advertising campaign/Tag lines Product positioning as fast relief from hunger

Sales promotion in schools and offices

Website


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Me & meri maggi


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Marketing Strategies

Convenience product for mothers and fun product forchildren.

New products innovation-

Veg Atta Noodles,Dal Atta Noodles,Cuppa Mania.

Availability in different packs. Easily available

Conducting regular market research

Objective ads

Different variants

Invited housewives to send different recipes made by maggi

Organized different campaigns contest games

Continuous renovated and innovated new products


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NEED RECOGNITION

Key needs of the Indian market

Good quality food

Fast & easy to cook and hence convenient Different varieties

Value for money


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SWOT Analysis

STRENGTHS

Leader

Loyal consumers

Wide distributionInnovation

WEAKNESS

Health related issues

Rural market


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S W

O T

OPPORTUNITIES

Rural market

Substitute for Chinese food and fast food

THREATS

Competitive pricing Strong presence of regional competitors


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MARKET RESEARCH


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MARKET RESEARCH


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THANK YOU

Documents

Maggi Product Life Cycle Updated