NESTLE MAGGI

INTRODUCTION TO NESTLE
2-MINUTE MAGGI NOODLES
Its 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 launch Maggi in India in year 1982.
Nestle wanted to explore the potential for instant food
among the Indian consumers.
It took several year 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
stage of a products acceptance, from its
Introduction (birth) to its decline (death)

INTRODUCTORY STAGE

High failure rates

No competition
Frequent modification
High production cost
Nestle India limited, an Indian subsidiary of the global
FMCG major, Nestle introduce the Maggi brand in India
with its 2-mintue Noodles.
With the launch of Maggi noodles, NIL create an entirely
new food category instant food in Indian packaged food
market. Since then NIL has been able to retain its
leadership in the instant noodles food category.

MARKET PENETRATION
Promotional campaign in school
Advertising strategy : focus on young
children
New product innovations according to the
needs of customer : Vegetable Atta
Noodles, Cuppa Mania, Dal Atta Noodles
Different packaging : 50grms, 100grms,
packs

GROWTH STAGE

Increasing rates of sales

Entrance of competitors
Initially healthy profits
Development costs are recovered
In early 1990s the demand for Maggi Noodles start 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
customers
In march 1999 NIL Re- launched the old version of
Maggi Noodles, after which the sales review.

MATURITY STAGE

Decline sale growth

Saturated market
Extending product lines
Heavy promotions to dealers and consumers
Price and profit fall
In 2003 HLL introduced knorr Annapurna, a liquid snack
segment in competition to NILs Maggi range
The new product by HLL was price at Rs. 5/- and came
in 4 variants
Like Maggi, soupy snax targeted all age-group,
particularly office goers

SEGMENTATION TO
DIFFERENTAITION

Classic Noodles 5 to 10 years

Veg. Atta Noodles health conscious
Rice Mania teenagers
Cuppa Mania office goers

Decline Stage
Long drop in sales
Large inventories of unsold items
Elimination of all non-essential market
expenses

Analysis Why Atta Noodles

failed ??
In 2005 NIL launch Maggi Veg. Atta Noodles
It was based on consumers 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 fiber of whole wheat grains
Maggi Atta Noodle were priced more than the
regular Noodles in the market

Reason for failure

PRICE: the price of Atta Noodles was little more than the
regular Noodles
FLASE CLAIMS: in October 2008 Nestle mistakenly
aired an ad claiming that Noodles helps in building a
strong muscles and bones. The Indian Advertising
Standard Authority declared it a false claim later
NOT PURELY VEGETARIAN: Maggi Atta Noodles
contained additives such as E250d and E627 which are
made by fish and hence not suitable for vegetarians
LACK OF ESSENTIALNUTRIENTS: 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

Nutrition facts
Serving size :

100g

Amount per serving

Calories
Calories from fat
Total fat
Saturated fat
Trans fat
Sodium
Total carbohydrate
Sugars
Protein
Vitamin A
Vitamins C
Calcium
Iron

350
110
13g 20%
1g 5%
0g
800mg 33%
50g 17%
3g
9g 18%
0%
0%
0%
0%

Est. percent of calories from:

Fat
Carbs
Protein

33.4%
57.1%
10.3%

All were false claims of being nutritious

Some Maggi Noodles

Advertisements

 MaggiThe Product Life Cycle