maggi project final (2)

Ramdhar Maheshwari Lions Business School 

Affiliated To: To:-Tilak Maharashtra University, Pune.

Project of:of:-

Product Life Cycle:Cycle:Presented By:By:Ms. Neha agarwal  Ms. Ramnik kaur  Mst. Amar jain Mst. Siddharth bajaj 

Project of:of:-

Product Life Cycle:Cycle:Presented By:By:Ms. Neha agarwal  Ms. Ramnik kaur  Mst. Amar jain Mst. Siddharth bajaj 

¨ W  hat is brand name that comes to W hat your mind when I say the word  Noodles?

About ³Maggi´  About ³Maggi´ 2 2-Minute Noodle 

Nestle India Ltd. (NIL). The Indian subsidiary of the global FMGC major, Nestle SA, introduced the maggi brand in India in 1984.

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It was found by the Maggi family in Switzerland in the 19thcentury.

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With a launch of Maggi noodles, NIL create an entirely new food categoryinstant noodles- in the Indian package food market.

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The brand is popular in India, Malaysia, New Zealand, Singapore, South Africa, Australia.

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Nestle wanted to explore the potential for such an instant food among the Indian market.

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It took several years and lot of money for nestle to establish its noodles brand in India.

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In 2005, NIL started offering a range of new healthy products under the maggi brand, in a bid to attract health-conscious consumers.

Product of nestle ³Maggi´          

Maggi Noodles Maggi Vegetable Noodles Maggi Dal Atta Noodles Maggi Rice Noodles Mania Maggi Sauces Maggi Healthy Soups Maggi Magic Cubes Maggi Pichkoo Maggi Cuppa Mania

³Maggi´ takes ³Maggi´ takes health route 

In May 2006, Nestle India Ltd. (NIL), launches a new instant noodles product called Maggi Dal Atta noodles. This product id under the popular  Maggi brand.

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The dal atta noodles were made of whole wheat and contained pulses, and positioned as a healthy instant noodles.

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NIL offered a variety of culinary product such as instant Noodles, soups, sauces and ketchups, cooking aids (seasonings), etc, under the Maggi brand. Over the years, Maggi noodles became a popular snack food product in India.

Competition¶s of ³Maggi´  of ³Maggi´  

During 1990s the sales of maggi noodles declined, and this was attributed partly to the growing popularity of top ramen.

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Also they are having a strong competition with a local manufacture.

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Maggi is also facing competition with the chowmin.

Initial Strategies of ³Maggi´  of ³Maggi´       

It has faced lot of hurdles in its journey in India. The basic problem the brand faced is the Indian psyche. However the sale of maggi was not picking up despite of heavy media advertising. To overcome this NIL conducted. The noodles tagline ³fast to cook, good to eat´ was also in keeping with this positioning. They promoted the product further by distributing free samples giving gifts on return of empty packets.

H urdle

faced by ³Maggi´ 

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³Maggi´ is a trusted brand because it has understood the consumers evolving needs, and consistently innovated and renovated itself to make life easier and happier for them, But for being a trusted brand Maggi has also faced many hurdles.

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In 1990 the sale of Maggi was decline. Top Raman Noodles, Indo nissin a Japanese noodles had given Maggi a good competition.

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Some Maggi Products were also failed e.g. Dal Atta Noodles etc.

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Maggi launched some new products under their brand, but these products were not successful: Ketchups, Soups, Tastemakers, etc.

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But Maggi has taken care of consumers likes and dislikes and went through a good process of New Product Development to achieve the consumer  satisfaction.

W hat  Product

is product lifelife-cycle?

life cycle is a series of stages start from introduction stage of product and end on decline stage.  At each stage organization take different strategy according to product nature, environment, profits, revenues and customers.  Product life cycle change from product to product each company PLC is different from other.  Some product move from introduction stage to maturity in a fly like fashion (shoes and clothes) and decline in a short span of time.

Concept of PLC  

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Product have a limited Life. Product Sales pass through distinct Stages.

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Profit rise and fall at different stages.

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Product requires different strategeies.

Benefits of PLC  

Reduced time to market

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Improved product quality

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Saving through the reuse of  original data

Product LifeLife-Cycle Applications      

Product class has the longest life cycle (e.g., gas powered cars) Product form tends to have the standard PLC shape (e.g., dial telephone) Brand can change quickly because of changing competitive attacks and responses (e.g.,Tide,Cheer) S tyle is a basic and distinctive mode of expression (e.g., formal clothing, Danish modern furniture) F ashion is a popular style in a given field (e.g. business casual) F ad is a fashion that enters quickly, is adopted quickly, and declines fast (e.g., pet rocks)

Problems of PLC      

Hard to identify which stage of the PLC the product is in. Hard to pinpoint when the product moves to the next stage. Hard to identify factors that affect product¶s movement through stages. Hard to forecast sales level, length of each stage, and shape of  PLC. Strategy is both a cause and result of the PLC

F our

stages of Product LifeLife-Cycle

Introduction Stage

Growth Stage

Maturity Stage

Decline Stage

Introduction Stage Summary of Characteristics, Objectives, & Strategies Sales

Low Sales

Costs

High cost per customers

Profits

Negative

Marketing Objectives

Create product awareness and trial

Product

Offer a basic product

Price

Use cost-plus

Distribution

Build selective distribution

Advertising

Build product awareness among early adopters and dealers

G rowth

Stage

Summary of Characteristics, Objectives, & Strategies Sales Costs Profits Marketing objectives Products

Rapidly rising sales Average cost per customer   Rising profits Maximize market share Offer product extensions, service, warranty

Price

Price to penetrate market

Distribution

Build intensive distribution

Advertising

Build awareness and interest in the mass market

Maturity Stage Summary of Characteristics, Objectives, & Strategies Sales

Peak Sales

Costs

Low cost per customer

Profit

High profits

Marketing Objectives

Maximize profits While Defending Market Share

Product

Diversify Brand And Models

Price

Price to match or best competitors

Distribution

Build more intensive distribution

Advertising

Stress brand Differences

Decline

Stage

Summary of Characteristics, Objectives, & Strategies Sales

Declining Sales

Costs

Low cost per Customer

Profit Marketing Objectives

Declining Profits Reduce expenditure And milk the brand

Product

Phase out weak items

Price

Cut price

Distribution

Go selective: phase out unprofitable outlets

Advertising

Reduce to level needed to retain hard-core loyal customers

Managing the Life Cycle 

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Successful life-cycle management requires predicting the shape of the curve and then successfully adapting strategies at each stage When to consider entering the market How to manage to capitalize on growth It is possible to develop strategies that will extend the maturity stage; modify the product, devise new uses, or design new appeals Greatest challenge comes at the decline

Product life cycle of  ³MAGG I´  A concept that provides a way to trace the stages of a product¶s acceptance, from its introduction (birth) to its decline (death).

Introductory stage      

High failure rates No competition Frequent product modification Limited distribution High marketing and production costs Promotion focuses on awareness and information

G rowth Increasing

stage

rate of sales Entrance of competitors Initial healthy profit Price normally falls Development cost are recovered During the 1990s the sale of Maggi noodles declined due to, growing popularity of top ramen, another instant noodles product In order to improve sales, Nil change the formulation of Maggi noodles in 1997. However, its proved to be a mistake, as consumer did not like taste of new product. In march 1999, NIL reintroduced the old formulation of the noodles, after which the sales revived. Over the year nil also introduced several other products like soups, and cooking aids under the Maggi.

Maturity Stage       

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Declining sales growth Saturated markets Extending product line Stylistic Product changes Heavy promotion to dealers and consumers. Price and profits fall In 2003, Hindustan lever Ltd was all set to take on Nestlé's bestselling Maggi 2-min noodles by launching a new category of liquid snacks under its food brand, knorr Annapurna. The new product, called knorr annapurna soupy snacks, was priced aggressively at Rs.5 and had four variants: Two chicken option & Two vegetarian. Like Maggi, soupy snacks will be an in-between- meals snacks and will be targeted at all age groups, particularly office-goers.

Decline

stage if no product  Innovation brought 

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Long run drop is sales

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Large inventories of unsold items

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Elimination of all non-essential Marketing expenses.

S W OT ANALYSIS  Strengths, W eaknesses, Opportunities and Threats.  SWOT  stands

for strengths, weaknesses, opportunities, and

threats. 

SWOT analysis is a tool for auditing an organization and its environment.

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It is the first stage of planning and helps marketers to focus on key issues.

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Strengths and weaknesses are internal factors.

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Opportunities and threats are external factors.

 Strengths: attributes

of the person or company that are helpful to achieving the objective.

 Weaknesses: attributes

of the person or company that are harmful to achieving the objective.

 Opportunities: external conditions that are

helpful to

achieving the objective.  Threats: external conditions which could do damage

to the business's performance.

S W OT of Nestle ³Maggi´  Strength

W eakness

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Market leader 

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Heavily dependent on One flavour 

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Brand loyalty

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Minor distribution problems

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Distribution channel

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Health related issues

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Advertising strategy

Opportunities

Threats

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Unexploited rural markets

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Competitors

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Increasing number of  working youth

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Competitive pricing (Top Ramen)

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Affinity of Indians to Chinese food

BC G  Matrix  

BCG Matrix, is a matrix developed by a group known as Boston Consulting Group in USA.

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The BCG matrix method is based on the product life cycle theory that can be used to determine what priorities should be given in the product portfolio of a business unit.

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To ensure long-term value creation, a company should have a portfolio of  products that contains both high-growth products in need of cash inputs and low-growth products that generate a lot of cash.

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It has 2 dimensions: market share and market growth.

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In 1960, Bruce Henderson the president of the Boston consulting group Places the BCG matrix product according to market share & market growth rate in the 4 celled matrix.

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The market standing of the company can be analysed in four different classess.

F our

Celled Matrix Are:Are:-

BC G  Matrix 

STARS STARS 

QUESTION  QUESTION  MARKS 

CAS H  COW S 

DOG S 

Stars  High growth, high market share

 Have best profit

 Use

and generate large amounts of cash.

 To maintain the market share product requires capital over 

and above there cash flow.

Cash cows  Low

growth, high market share.

 Profits

and cash generation is high , and because of the low growth, investments needed is low.

Dogs  Low

growth, low market share.

 Very

low competitive position and profit.

 Deliver

cash, otherwise liquidate.

Question marks 

High growth, low market share.

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Have the worst cash characteristics of all, because high demands and low returns due to low market share.

BC G  matrix of ³MA of ³MAGG I´  

Product: Maggi Noodles

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Position: Cash Cow

(1) Maggi Noodles, which has found more households of consumption in India that any other country in the world and has become the first preference of Indian children in terms of instant food, is only a cash cow and not a star. (2)Maggi Noodles has a significantly high market share in the Noodles market in India, the market growth rate of Noodle consumption is not very high. (3) Though the number of repeat purchasers is high in case of Maggi, the rate of increase among the new purchasers is not too high.

Now ³Maggi´ enjoys around 94% Market share in this segment. MAGGI(94%)

TOP RAMEN(4%)

4% 2%

94%

OTHERS(2%)

Current Scenario of ³Maggi´  of ³Maggi´   Leading Brand 

in India as well as

W orld.

Current S ales: Approx. ± 90000 boxes ± Rs. 4,79,49,000 in Mumbai ± 10,00,000 boxes ± 55 cr. in India

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Reasonable competitive pricing.

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Creative interaction blogs for customers: www.maggi-club.in

 F ocus

mainly on Health Benefits.

³Maggi´ turns ³Maggi´ turns 25, Nestle to unveil  new campaign 

Nestle India is set to roll out a new marketing drive to mark the 25th anniversary of its instant noodles brand, Maggi Called ÄMe & MeriMaggi , the campaign is supposed to celebrate the consumers bond with brand Maggi. 

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The company plans ³360 degree activation´ across television, print and the internet, beside on-ground activities.

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Nestle has launched an interactive website for the consumers, www.meandmeri.in

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In 2008, two brand extensions were made ²Maggi Bhuna Masala and Maggi Cuppa Mania Instant Noodles.

Conclusion 

Plc analysis is very important tools in the hand of marketer.

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Better understanding is in managing profitable product and eliminating unprofitable one.

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As product moves from one stage to another stage in plc, marketer should evaluate and adjust this strategies for  promoting, pricing and distribution of product.

Acknowledgement  We like to thanks Our Mam Ms. Mansi Gaur for  helping us and giving us a valuable suggestment and input throughout the project and we also like to thanks the student for showing their atmost patience.

Bibliography  www.Maggi-club.in  www.Wikipedia.com  www.Google.com  www.Nestle.com  www.Meandmeri.com  www.Scribd.com  www.Managementparadise.com  Principle of management:- Philip kotler