NESTLE MAGGI

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 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 product’s acceptance, from it’s

Introduction (birth) to it’s 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 it’s 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 it’s 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 1990’s 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 NIL’s 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 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 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 factsServing size : 100g

Amount per serving Calories 350Calories from fat 110Total fat 13g 20% Saturated fat 1g 5%Trans fat 0gSodium 800mg 33%Total carbohydrate 50g 17%

Sugars 3g All were false claims of being nutritious Protein 9g 18%Vitamin A 0% Vitamins C 0%Calcium 0%Iron 0% Est. percent of calories from:Fat 33.4% Carbs 57.1%Protein 10.3%

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• MaggiThe Product Life Cycle