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
Nutrition Facts
Serving Size: 100g
Amount per Serving
Calories 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%
all were false claims of being
Vitamin A 0% nutritious
Vitamin C 0%
Calcium 0%
Iron0%
Est. Percent of Calories from:
Fat 33.4% Carbs 57.1%
Some Maggi Noodles
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THE END

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