Product Life Cycle

NESTLE MAGGI

SALONI NANDA BBA4519/09

Introduction To Nestle 2-Minute Maggi Noodles

◉It's a brand of instant noodles made by Nestle India Limited. ◉It was found by the Nestle family based in Switzerland in the 19th century.◉Nestle launched Maggi in India in year 1982.◉Nestle wanted to explore the potential for instant food among the Indian consumers.◉It took several years and investment on part of Nestle to establish itself in India.◉Now it enjoys a 90% market share in this segment .

Product Life Cycle

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

Introductory Stage

◉High failure rates◉No competition◉Frequent modifications◉High production costs◉Nestle 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 been able to retain it's leadership in the instant noodles food category

Market Penetration➢Promotional campaigns in schools➢Advertising strategies : focus on young children➢New product innovations according to the needs of customers : vegetable Atta noodles , Cuppa mania , Dal Atta noodles ➢Different packaging : 50grms , 100grms packs

Growth Stage◉Increasing rates of sales◉Entrance of competitors◉Initial healthy profits◉Development costs are recovered◉In early 1990's the demand for Maggi noodles started to fall due to launch of Top Ramen ,another instant noodle product◉So in order to increase sales , NIL formulated the flavor of Maggi noodles which was not accepted by the consumers ◉In March 1999 NIL re- launched the old version of Maggi noodles , after which the sales revived

Maturity Stage

◉Declining sales growth◉Saturated market◉Extending product lines◉Heavy promotions to dealers and consumers◉Prices and profits fall◉In 2003 HLL introduced Knorr Annapurna , a liquid snack segment in competition to NIL's Maggi range◉The new product by HLL was priced at rs.5 and came in 4 variants◉Like Maggi ,Soupy Snax targeted all age-groups ,particularly office goers

Segmentation To Differentiation

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

Decline Stage{if no innovations are

made}◉Long drop in sales◉Large inventories of unsold items◉Elimination of all non-essential marketing expenses

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

Veg. Atta noodles○It was based on consumer's needs for more whole grain based products○Extensive research and development was done by the NIL team○Maggi Atta noodles provided all the essential dietary fibre of whole wheat grains○Maggi Atta noodles were priced more than the regular noodles in the market

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 Advertising Standards Authority declared it a false claim later⇨NOT PURELY VEGETARIAN: Maggi Atta noodles contained additives 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 health conscious people but it contained a high percentage of fats .

Back Cover Of Atta Noodles Pack

all were false claims of being nutritious

Nutrition FactsServing Size: 100g Amount per ServingCalories 350 Calories from Fat 110 Total Fat 13g 20% Saturated Fat 1g 5% Trans Fat 0g Sodium 800mg 33% Total Carbohydrate 50g 17% Sugars 3g Protein 9g 18% Vitamin A 0% Vitamin C 0% Calcium 0% Iron0% Est. Percent of Calories from:Fat 33.4% Carbs 57.1% Protein 10.3%

Some Maggi Noodles Advertisements

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