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INTRODUCTION ABOUT PRODUCT.

MAGGI COMES IN EXISTENCE IN 1872 WHEN

JULIUS MAGGI TOOK OVER HER FATHERS

BUSINESS.

LAUNCHED IN INDIA BY NESTLE IN 1982.

CURRENTLY HAVING AROUND 94% OF

MARKET SHARE IN THIS SEGMENT.

HAVING THE WIDE VARIETIES OF PRODUCT

LIKE KETCHUP,SOUPS,COOKING AIDS ETC.

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MAGGI IN INDIA

Fast to ook 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 inIndia but globally as well.

Nestl unleashed Brand Maggi in India 25years ago in

1983 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) toits decline.

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INTRODUCTORY STAGE.

THE PRODUCT LAUNCHED KEEPING IN MIND

THE WORKING WOMEN AND CHILDREN.

IT WAS THE PIONEER IN INSTANT NOODLE

MARKET.

Lower price

Bas 2 Minute DISTRIBUTION CHANNEL

PRODUCER-DISTRIBUTORS-RETAILERS-

CONSUMERS.

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Market Penetration

Promotional campaigns in schoolsAdvertising strategies : focus on youngchildrenNew product innovations according to the

needs of customers : vegetable Atta noodles ,Cuppa mania , Dal Atta noodlesDifferent packaging : 50grms , 100grms

packs

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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.

TO EAT FAST TO COOK.

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GROWTH con.

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

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MATURITY

Declining sales growth.

Saturated market.

Extending product line.

Large promotional offers.

Entry of a Competitor

ENTRANCE OF NEW PLAYERS.

-DURING THE PERIOD OF 90S MAGGIFACES THE TOUGH COMPETITION FROM TOP

RAMEN.

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MATURITY CONT

PRODUCT

-THE MAGGI INTRODUCES THE WIDE

VARIETY OF PRODUCTS LIKE DAL ATTA

NOODLES,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.

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.

MATURITY CONT

DISTRIBUTION

Distribution become more intensive. various

intensive programs for encouraging product

over other competitors.

Different packaging : 50grms , 100grms

packs

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DECLINE(If No Innovation made)

SALES SAW A DECLINE IN 1990S.-FORMULATION CHANGED FROM FRIED

BASE TO AIR DRIED BASE.

NEW PRODUCTS LAUNCHED BUT FAILED.-DAL ATTA NOODLES SAMBAR FLAVOR.

TOUGH COMPETITION FROM TOP RAMEN.

Failure of other products like soups ,cooking

aids etc.

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Analysis why Atta Noodles failed ??

In 2005 NIL launched Maggi Veg.

Atta noodlesIt was based on consumer's needsfor more whole grain based productsExtensive research and development

was done by the NIL teamMaggi Atta noodles provided all theessential dietary fibre of whole wheatgrainsMaggi Atta noodles were pricedmore than the regular noodles in themarket

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Reasons For Failure

PRICE: The price of Atta noodles was little more

than the regular noodles

FALSE CLAIMS: In October 2008 Nestle mistakenly

aired an ad claiming that noodles helped "in building

strong muscles and bones ".The Indian AdvertisingStandards Authority declared it a false claim later

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Reasons For Failure con....

NOT PURELY VEGETARIAN: Maggi Attanoodles contained additives such as E250dand E627 which are made of fish and

hence not suitable for vegetarians

LACK OF ESSENTIAL NUTRIENTS: Itlacked presence of essential vitamins such

as A and C. Moreover it targeted healthconscious people but it contained a highpercentage of fats

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Segmentation To Differentiation

Classic Noodles - 5 to 10 yrs

Veg. Atta Noodles - health conscious

Rice Mania teenagersCuppa Mania - office goers

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People accepted the new flavors.

Sales of Maggi starting increased.

Increase in the profits Production cost was recovered.

Now Nestle Maggi noodles enjoys a 90%

market share in this segment .

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Some Maggi Noodles

Advertisements

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Hurdles and Solutions

Sales declined in 1990s

Competition increased

in noodles section

Launch of new productin market

NIL created new

category-2-minites

Instant Noodles.

Changed advertisingcampaign/Tag lines

Sales promotion in

Schools and offices.

Product positioning as

fast relief from hunger

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MARKET PENETRATION

STRATEGIES

Convenience product for mothers and fun product

for children.

New products innovation-

Veg Atta Noodles,Dal Atta Noodles,Cuppa Mania.

Availability in different packs.

Conducting regular market research.

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Current Scenario Of Maggi

Leading Brand

Reasonable pricing

Diversification Creative interaction blogs for customers

Focus mainly on health benefits.

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Current World Market Share

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Product Life Cycle