SAMEER-Product Life Cycle

8/8/2019 SAMEER-Product Life Cycle

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Product Life Cycle

NESTLE MAGGI

SAMEER KRISHNA.S1225110150 MBA-A


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Introduction To Nestle 2-Minute MaggiNoodles

It's a brandof instantnoodles made by Nestle India Limited.Itwasfound bythe Nestlefamily basedin Switzerlandin the19thcentury.Nestlelaunched Maggi in India in year 1982.

Nestle wantedtoexplorethepotentialforinstantfood amongthe Indian consumers.Ittookseveralyears andinvestmenton partofNestletoestablishitselfin India.Now itenjoys a 90% marketsharein thissegment.


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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}.


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Introductory Stage

High failure ratesNo competitionFrequent modificationsHigh production costsNestle India limited , an Indian subsidiary of the global FMCG major ,

Nestle introduced the Maggi brand in India with it's Maggi 2-minute noodlesWith the launch of Maggi noodles , NIL create an entirely new food category- instant food in the Indian packaged food market .Since then NIL has beenable to retain it's leadership in the instant noodles food category


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Market Penetration

Promotionalcampaignsin schoolsAdvertising strategies : focuson youngchildren

New productinnovations according totheneedsofcustomers : vegetableAtta noodles ,Cuppa mania , DalAtta noodlesDifferentpackaging : 50grms , 100grms

packs


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Growth Stage

Increasing ratesofsalesEntranceofcompetitorsInitialhealthyprofitsDevelopmentcosts arerecoveredIn early 1990'sthedemandfor Maggi noodlesstartedtofallduetolaunchofTop Ramen ,anotherinstantnoodleproductSoin ordertoincreasesales , NILformulatedtheflavorofMaggi noodleswhich was notaccepted bytheconsumersIn March 1999 NIL re- launchedtheoldversion ofMaggi noodles , afterwhichthesalesrevived


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Maturity Stage

Declining sales growthSaturated marketExtending productlinesHeavypromotionstodealers andconsumersPrices andprofitsfall

In 2003 HLLintroduced KnorrAnnapurna , a liquidsnacksegmentincompetition to NIL's MaggirangeThe new productbyHLL waspriced atrs.5 andcamein 4 variantsLike Maggi ,Soupy Snaxtargeted all age-groups ,particularlyoffice goers


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Segmentation To Differentiation

Classic Noodles - 5 to 10 yrsVeg. Atta Noodles - health conscious

Rice Mania - teenagers

Cuppa Mania - office goers


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Decline Stage{ifnoinnovations are made}

Long drop in salesLarge inventories of unsold itemsElimination of all non-essentialmarketing expenses


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Analysis why Atta Noodles failed ??

In 2005 NILlaunched Maggi

Veg.Atta noodlesItwas basedon consumer'sneedsfor more whole grain basedproductsExtensiveresearch anddevelopmentwasdone bythe NILteamMaggiAtta noodlesprovided alltheessentialdietaryfibreofwhole wheatgrainsMaggiAtta noodles werepricedmorethan theregular noodlesinthe market


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Reasons ForFailure

PRICE: The price of Atta noodles was little more than theregular noodlesFALSE CLAIMS: In October 2008 Nestle mistakenly aired anad claiming that noodles helped "in building strong musclesand bones ".The Indian Advertising Standards Authoritydeclared it a false claim laterNOT PURELY VEGETARIAN: Maggi Atta noodles containedadditives such as E250d and E627 which are made of fish and

hence not suitable for vegetariansLACK OF ESSENTIAL NUTRIENTS: It lacked presence ofessential vitamins such as A and C. Moreover it targeted healthconscious people but it contained a high percentage of fats .


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Back Cover Of Atta Noodles

Pack

all werefalseclaimsofbeingnutritious

Nutrition FactsServing Size: 100g

Amountper ServingCalories 350

Caloriesfrom Fat110Total Fat13g 20%Saturated Fat 1g 5%Trans Fat 0gSodium 800mg 33%TotalCarbohydrate 50g 17%Sugars 3gProtein 9g 18%

Vitamin A 0%Vitamin C 0%Calcium 0%Iron0%Est.PercentofCaloriesfrom:

Fat33.4% Carbs 57.1%


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Some Maggi Noodles

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THE END

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