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    Nestle Maggi: Submitted By: Pavan S Ghodke

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    Santhosh K Kolekar
    Maggi noodles were introduced in India in 1982 by Nestle, creating a new instant food category. After several years of establishing itself, Maggi gained a 90% market share in the instant noodles segment. The document describes Maggi's product life cycle in India, from the introductory stage where it had high costs and few competitors, to the growth stage where it expanded through promotions and innovations. Maggi later faced competition in the maturity stage and differentiated its product lines. The product life cycle concept analyzes categories, forms, products and brands over time from introduction to potential decline if no new innovations are made.

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    Nestle Maggi: Submitted By: Pavan S Ghodke

    Uploaded by

    Santhosh K Kolekar
    4K views19 pages
    Maggi noodles were introduced in India in 1982 by Nestle, creating a new instant food category. After several years of establishing itself, Maggi gained a 90% market share in the instant noodles segment. The document describes Maggi's product life cycle in India, from the introductory stage where it had high costs and few competitors, to the growth stage where it expanded through promotions and innovations. Maggi later faced competition in the maturity stage and differentiated its product lines. The product life cycle concept analyzes categories, forms, products and brands over time from introduction to potential decline if no new innovations are made.

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    Product-Life-Cycle-of-Maggi

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    Maggi noodles were introduced in India in 1982 by Nestle, creating a new instant food category. After several years of establishing itself, Maggi gained a 90% market share in the instant noodles segment. The document describes Maggi's product life cycle in India, from the introductory stage where it had high costs and few competitors, to the growth stage where it expanded through promotions and innovations. Maggi later faced competition in the maturity stage and differentiated its product lines. The product life cycle concept analyzes categories, forms, products and brands over time from introduction to potential decline if no new innovations are made.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    4K views19 pages

    Nestle Maggi: Submitted By: Pavan S Ghodke

    Uploaded by

    Santhosh K Kolekar
    Maggi noodles were introduced in India in 1982 by Nestle, creating a new instant food category. After several years of establishing itself, Maggi gained a 90% market share in the instant noodles segment. The document describes Maggi's product life cycle in India, from the introductory stage where it had high costs and few competitors, to the growth stage where it expanded through promotions and innovations. Maggi later faced competition in the maturity stage and differentiated its product lines. The product life cycle concept analyzes categories, forms, products and brands over time from introduction to potential decline if no new innovations are made.

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    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 19

    Product Life Cycle

    NESTLE MAGGI

    Submitted by:
    PAVAN S GHODKE
     Product Life Cycle (PLC):The Product Life Cycle
    (PLC) is based upon the biological life cycle. For
    example, a seed is planted (introduction); it begins to
    sprout (growth); it shoots out leaves and puts down
    roots as it becomes an adult (maturity); after a long
    period as an adult the plant begins to shrink and die
    out (decline).

    Each product may have a different life cycle


     PLC determines revenue earned
     Contributes to strategic marketing planning
     May help the firm to identify when
    a product needs support, redesign, reinvigorating,
    withdrawal, etc.
     May help in new product development planning
     May help in forecasting and managing cash flow
    The PLC curve is typically divided into four stages:

     Introduction – A period of slow sales growth as the


    product is launched in the market. This phase is
    characterized by high operational costs and so incurs
    initial losses.
     Growth – A period of rapid market acceptance and
    substantial profit improvement.
     Maturity – A slowdown in sales growth because the
    product has achieved acceptance by most potential
    buyers. Profits stabilize or decline because of increased
    competition.
     Decline – Sales show a downward drift and profits erode.
    Maturity

    Growth Decline
    Sales/Profits

    Sales
    Introduction Profits

    Profit

    Break-even
    point
    Loss

    Time
    Features Introduction Growth Maturity Decline
    Characteristics:
    Sales Low Rising Peak Declining
    Costs High Average Low Low
    Profits Negative Rising High Declining
    Customers Innovators Early Middle Laggards
    adopters majority
    Few Growing no. Stable no. Declining no.
    Competitors
    Marketing Create product Maximize Maximize Reduce
    Objectives awareness & trial. market profit while expenditure &
    share. defending milk the
    mkt. share. brand.
    Strategies:
    Product Basic product Product Diversify Phase out
    extension brands weak
    Cost plus charge To penetrate To match Cut price
    Price
    Market competitors
    Intensive More intensive Selective
    Distribution Selective
    Introduction To Nestle 2-Minute Maggi
    Noodles
    ◉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
    Some Maggi Noodles
    Advertisements
    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
     The PLC concept can be used to analyze:
    o a product category (e.g. – liquor)
    o a product form (e.g. – white liquor)
    o a product (e.g. – vodka), or
    o a brand (e.g. – Smirnoff)
     Not all products exhibit an s-shaped curve.
     Three common alternate patterns are described here…
    Sales Volume

    Time

     Sales grow rapidly when the product is introduced, then fall to a “petrified”
    level that is sustained by late adopters buying the product for the first time
    and early adopters replacing the product.
     Often characteristic of small kitchen appliances such as handheld mixers
    and bread makers.
    Sales Volume
    Primary Cycle
    Recycle

    Time

     A company aggressively promotes its new product and this produces


    the first cycle.
     Later the sales starts declining & the company gives its product
    another promotion push, which produces a second cycle of smaller
    magnitude & duration.
     E.g. – sales of new drugs of a pharmaceutical company.
    Sales Volume

    Time

     Here, sales pass through a succession of life-cycles based on the


    discovery of a new product characteristics, uses & users.
     The sales of nylon, for example, show a scalloped pattern because of
    the many new uses – parachutes, hosiery, shirts, carpeting, boat
    sails, automobile tires, that continue to be discovered over time.
    THE END

    saloni nanda

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