04/07/2010

PRODUCT

LIFE CYCLE

OF

ORIGIN

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

Nestle (Swiss company/1866/Henri Nestle)

Maggi merged with Nestlé in 1947

Launched in India in 1983

FEW FACTS

Maggi Australia, IndiaMalaysia, New Zealand Nepal, South Africa Singapore, The Philippines

India tops

Nestle 50% market share 250 crores

PRODUCTS

ProductsTraditional 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

Product life cycle is a

concept that provides

a way to trace thestages of a product’sacceptance , fromits introduction toits decline

There are 4 stages

1) Introduction

2) Growth

3) Maturity

4) Decline

• 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

PRICING

The initial pricing strategy was low pricing strategy 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.

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.”

Declining sales growth

Saturated market.

Extending product line.

Large promotional offers.

Entrance of new player

-DURING THE PERIOD OF 90’S MAGGI FACES THE TOUGH COMPETITION FROM TOP RAMEN.

PRODUCT

- 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 various intensive programme for encouraging the product over their competitors in the market.

Sales saw a decline in 1990’s.

-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 aids etc.

Competition & Problem

IN 1999 company again changed the formation of its products.

Company increased the distribution of its products.

Along with children on working women company also focused on other segments also.

Company came up with various interesting ads.

NEED RECOGNITION

Key needs of the Indian market –

Good quality food

Fast & easy to cook and hence convenient

Different varieties

Value for money

MARKET RESEARCH

MARKET RESEARCH

Nestle Maggi as a Leader Strategies

Maggi was the first noodles product in India and it was accepted by majority of its

target market which at the time of launch lay in the urban cities of India but with time

Maggi has substantially used different strategies to expand its existing market space

and by doing so it has kept CHALLENGERS like Top Ramens Smoodles at bay and

maintained its position as MARKET LEADER.

For beating the challenge from different domestic and international challengers

Nestle Maggi has used the following steps to beat the competition.

1.Strong Customer Relations: The campaign designed by Nestlé for Maggi’s

silver jubilee hopes to work on the brand’s strong consumer connect through

television, the Internet and print. The jingle gets a prominent play in the

television campaign. Nestlé, India’s largest food products company, has

decided not to litter the sky with hoardings on the occasion. Instead, the ads

will play on nostalgia. Consumers who first sampled the brand as kids now

run households. The campaign seeks to strengthen the association.

Thus, customers will be invited to share their “Maggi moments” with the

company. If the company likes the way you prepare Maggi, you could find

your photo on Maggi packs. A new website called www.meandmerimaggi.com

is also in the works.

2.Good Packaging and Strong Dealer Vendor Relations: Convenience was the

unique selling proposition of Maggi when it was launched 25 years ago. For

the first time, consumers got something that was hygienically packed and

convenient to prepare. It was also the first fusion experiment on food in India.

3.Continuous process innovation: Instant noodles was an entirely new category

in the country, but it was given an Indian twist. Maggi came in four variants:

Masala, chicken, sweet & sour and capsicum.

4.Repositioning as a healthier snack: “It is no longer an aspirational product for

any socio-economic category of consumers,” says Hegde

That was also the time when Nestlé was repositioning itself worldwide as a

health and wellness company. At the grassroots level, Maggi started

associating with quiz contests and other such events connected to mental and

physical wellbeing.

5.Price Incentives: The company is taking no chances and is extending its

distribution reach to smaller towns and cities. Maggi happens to be Nestlé’s

most widely distributed brand in the country. This is also the time that Maggi’s value-for-

money pack priced at Rs 5

6.Capturing New Customer Base : Maggi realised that one of the reasons for a

low market share in Gujarat was that most of gujaratis do not eat garlic and

Onions so for Gujarat Maggi has come up with a special product which is

devoid of onions and garlic and marketed it as Jain Maggi. This helped them

gain a completely unconquered market of Jain Noodle eaters.

Hence by using these Strategies magi has been able to consolidate its position as

MARKET LEADER

SWOT Analysis

STRENGTHS

Leader Loyal consumersWide distributionInnovation

WEAKNESS

One flavorHealth related issuesRural market

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SWOT Analysis

OPPORTUNITIES

Rural marketIncreasing working youthPreference for Chinese food and fast food

THREATS

Competitive pricing Strong presence of regional competitors

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Research Methodology

Data Gathering:

This study involves data collection (primary research) from different households in four

different areas Delhi,NOIDA, Gurgaon and Faridabad.

Literature Review

The research conducted as a part of our study would include Primary as well as

Secondary research. Primary research would include a survey that would be conducted

in selected localities of Delhi and nearby areas where the responses of consumers

would be recorded through a designed questionair.Secondary research would include

various aspects of Brand management through Internet , Journals, company reports ,

expert views etc.

METHOLODOGY

The research will be carried out in the form of a survey. This will include primary

research in addition to secondary research as stated below. The survey research

method will be descriptive research design. Each respondent will be interviewed through

a Questionnaire. The sample will be selected by a simple random sampling method.

The survey will address the following information area:

Information Areas:

The objective as spelt out can be elaborated into specific information areas to be

studied.

How do customers perceive Maggi as a stable brand, their perception of noodles and

how do they associate themselves with Maggi?

Are the consumers aware of Maggi Brand or they associate noodles with some other

brand?

Do they consider noodle as a healthy product or they are aware of the company’s

strategy of repositioning it to a healthy product by the launch of some of the new

products?

Which product from the entire basket of Maggi products do the consumers consider as

the best selling product for Maggi and to which the consumers frequently buy?

Are the consumers willing to accept Maggi brand extensions to some other products

like chocolate, juices, chips etc?

THANK YOU

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