PRODUCT

LIFE CYCLE
OF

04/07/2010
 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, India
 Malaysia, New Zealand
 Nepal, South Africa
 Singapore, The Philippines

India tops

Nestle 50% market share 250 crores

 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
Product life cycle is a
concept that provides
a way to trace the
stages of a product’s
acceptance , from
its introduction to
its 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 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.
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 consumers
 Wide distribution
Innovation

WEAKNESS

One flavor
Health related issues
Rural market

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 SWOT Analysis

OPPORTUNITIES

Rural market
Increasing working youth
Preference 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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