Product life cycle of Nestle Maggie and Sunfeast Yippee Noodles

BY Gaurav sain 58 Anirudh Bhakshi 35 Abhsishek Kakkar 04 Aman Gupta 409 Akash Sunny 19

About Nestle

FMCG industry provides a wide range of consumables The competition among FMCG manufactures is also growing and as a result of this, investment in FMCG industry is also increasing, specifically in India.

It market its products in 130 countries across the

world..
Nestle put nutrition as the core of their business.. Nestle is a Swiss company founded in 1986 by Henri

Nestle
Basically the company started to meet the need of the

milk in world war I..

MAGGI-Product mix
MAGGI 2-MINUTE Noodles MAGGI Vegetable Atta Noodles

MAGGI CUPPA MANIA

MAGGI Vegetable Multigrain Noodles

Whenever, Wherever, However Connecting with Customers out of homeon the move Maggi Fun spots Supply in other nestle kiosks ITES/BPO employees
MAGGI-PLACEMENT
The distribution network is well spread almost everywhere in India,as it is easily available in all kirana stores, retail store etc.

MAGGI-Pricing
Maggi 2-Minute Noodles (Chicken) Maggi 2-Minute Noodles (Curry) Maggi 2-Minute Noodles (Masala - spicy) Maggi Rice Noodles Maggi 2-Minute Noodles (Veg atta) Maggi Dal Atta Noodles 95 gms 12 now 10

100 gms 13.00 100 gms 12 now 10 95 gms 15.00 200 gms 30.00 100 gms 20.00

PRODUCT LEVELS: CUSTOMER VALUE HIERARCHY

Core benefit - FAST TO COOK & GOOD TO

EAT.

Basic product benefit - good taste with proper

nutrition levels and good health. TASTE BHI HEALTH BHI

Expected product benefit - proper and a good

package & fully packed seasoning tastemaker & affordable prices.

MAGGI: Promotion
Sales Promotion Exchange schemes Price-off offer Scratch n Win Offers Money back offer.. Sponsor school quiz.. Awareness campaign..

Effective Taglines

Advertisement

SWOT analysis
Strength Market leader USP- Easy to cook & tasty Variety Brand loyalty Advertising strategy.. Distribution channels Opportunities Availability of New segments Threats ITC, the competitor provides Weakness Perceived as made up of Maida not good for health and calories.. Heavily dependent on one flavor ..

(e.g. old age people)

Increasing level of income of consumers and fast life. Unexploited rural market..

higher margins to its distributors

and growing fast. Top Raman has adopted the strategy of reducing the price of

Introduction
The course of a products sales and profits over

its lifetime of Maggie is called the Product Life Cycle of it

Product life cycle is a concept that provides

a way to trace the stages of a products acceptance , from its introduction (birth) to its decline..

STAGES IN PLC
Introduction Stage.. Growth Stage.. Maturity Stage.. Decline Stage..

PLC OF MAGGI

TIME

Introduction Stage..
Sales growth tends to be slow at this stage. Cost per customer is high.

Negative profits.
Competitors are few.

The marketing objective is to create product awareness.

. INTRODUCTORY STAGE OF MAGGI

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

INTRODUCTION CONT
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.

Growth Stage
Rapidly rising sales. Rising profits.

Unit manufacturing cost declines.

The marketing objective is to maximize market

share.

MAGGI GROWTH STAGE

Sales increased. 50% market share. No.1 brand. PRICE- prices were kept normal.
Entry of Competitor

PRODUCT- no any new changes

PROMOTION-GOOD TO EAT FAST TO COOK

Maturity Stage

Sales are at peak.

Profits are high.

Cost per customer low.

The marketing objective is to maintain or

extend the market share.

Promotional campaigns in school. Advertising strategies: Focusing on kids

New product innovation according to the need of consumers: -Veg. Atta Noodles -Dal Atta Noodles -Cuppa Mania
Availability in different packages: -50 gms -100 gms -200 gms -family packs(400 gms)

MAGGI MATURITY STAGE

Introduced new Variety.

Price Rs. 5 Onwards. Big Time Promotional Offers. Slow Down In Sales. Market Saturation.

MATURITY CONT
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.

Segmentation To Differentiation
Classic Noodles - 5 to 10 yrs..

Veg. Atta Noodles - health conscious.

Rice Mania teenagers..

Cuppa Mania - office goers.

MAGGI DECLINE STAGE

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.

Reintroduction of MAGGI Noodle

Reintroduced in 1999 Increased Distribution Focus on new segments of

Society
New & Interesting TV

Commercial