Australia
India
Malaysia
New Zealand
Singapore
South Africa.
ISSUES
Different phases product life cycle of
maggi
Why atta noodle was a failure?
Strategies taken to establish new product
category
What measures NIL should take to sustain
the image of a popular brand image.
Stage at which maggi is in the product life
cycle.
GRAPHICAL REPRESENTATION
OF A TYPICAL LIFE CYCLE
Maturity
Stage
Dollars
Introductory Growth
Stage
Stage
Decline
Stage Product
Category
Sales
Product
Category
Profits
Time
Introductory Stage
Full-Scale
Full-Scale Launch
Launch
High failure rates
of
No competition
of New
New Products
Products
Frequent product modification
Limited distribution
High marketing and production costs
Promotion focuses on awareness and information
Nestl India Ltd. (NIL), the Indian subsidiary of the global FMCG
major, Nestl SA, introduced the Maggi brand in India in 1982,
with its launch of Maggi 2 Minute Noodles, an instant noodles
product
With the launch of Maggi noodles, NIL created an entirely new
food category - instant noodles - in the Indian packaged food
market. Because of its first-mover advantage, NIL successfully
managed to retain its leadership in the instant noodles
category
STPD Analysis
Segmentation
Targeting
Positioning
Differentiation
Age
Kids
Fast to cook
good to eat
Taste
Eating Habits
Youth
2-minute
noodles
Flavours
Lifestyle of
urban
families
Office goers
Taste bhi
health bhi
Packaging
Working
Women
Health
conscious
people
Market Penetration
Strategies
Promotional campaigns in school.
Advertising strategies: - focusing
on kids.
New product innovation according
to the need of consumers:
Veg. Atta
Noodles.
Dal Atta Noodles.
Cuppa Mania.
Availability in different packages:
50 gms.
100 gms.
200 gms.
family packs (400gms.).
Conducting regular market research
Growth Stage
Offered
Offered in
in more
more
sizes,
sizes,
flavors,
flavors, options
options
Maturity Stage
STPD Analysis
Segmentation to
Differentiation:
Classic Noodles
5 10 yrs.
Veg. Atta Noodles
Health Conscious.
Rice Mania
Teenage
Cuppa Mania Office
goers, Working
women.
Large inventories of
unsold items
Rate
Rate of
of decline
decline depends
depends on
on
change
change in
in tastes
tastes or
or
adoption
adoption of
of substitute
substitute products
products
Change product
CATEGORIES OF NEW
PRODUCT/REVISING THE
PRODUCT
New-To-The-World
New-To-The-World
Six
Six
Categories
Categories
of
of
New
New
Products
Products
New
New Product
Product Lines
Lines
Product
Product Line
Line Additions
Additions
Improvements/Revision
Improvements/Revision
ss
Repositioned
Repositioned Products
Products
Lower-Priced
Lower-Priced Products
Products
Based on consumer
needs and evolving trends
for more whole grain based
products.
FAILURE CAUSES
1. Indian psycheThe basic problem the brand faced
is the Indian Psyche. Indian Palate is
not too adventurous in terms of
trying new tastes. So a new product
with a new taste that too from a
different culture will have difficulty
in appealing to Indian market.
5. Lack of essential
nutrientsThe new maggi atta
noodles as can be seen
from the fig. lacked
essential vitamins A,
C,also the fat content was
more then carbohydrates
6. Targeted health conscious
peoplebut atta
noodle didnt appealed
thembecause of other
Substitute supplements in
the market
Suggestive Promotional
Strategies
1. They should conduct
test marketing before launching
new product.
2. Focus on creating distinctive image, based on twin
benefits of INSTANT and HEALTHY.
3. Conduct promotional campaigns at schools in small
towns with population more than 10,000.
4. Strengthen the distribution channel of the rural areas
within 100 KM of all the metros.
5. Launch new advertisement campaign (T.V., Radio and
print media commercials) with the brand ambassador.
6. Conduct Market Research to find out the market
penetration of the product in the rural areas covered.
Thank you
Product Attributes
Branding
Labeling
Packaging
Support services
Maturity
Stage
During
the
maturity stage, the product is
established and the aim for the
manufacturer is now to maintain the
market share they have built up. This
is probably the most competitive
time
for
most
products
and
businesses need to invest wisely in
any marketing they undertake.
Introduction-3D TVs
Growth-Blue ray discs/DVR
Maturity -DVD
Decline -Video cassette