Maggi

Product : Maggi 2-minutes NoodlesProduct : Maggi 2-minutes Noodles

AASHISH SINGHABHISHEKH PANJAAKASH SHUKLAAKASH PATILASHISH HIRAWAT

Introduction Introduction

Maggi- International brand of Instant soups, ketchups, sauces, instant noodles, etc.

Owned by -Nestle

Nestle launched Maggi for the first time in India in the year 1982.

Now it enjoys around 90% market share in this segment.

World Market Share

Maggi 94%

Top Ramen 4%

Other Local 2%

Maggi 94% Top Ramen 4% Other Local 2%

PRODUCT LIFE CYCLE

Source:

PLC – Maggi- 2mins noodles

a : Introduction

a-b : Growth

b-c : Reduction In Sales

c : Re-Launch

c-d : Market Re-Capture

d : Introduction to new Variants

Introduction stage of Maggi Noodles:(1982)

Introduced in India in the year- 1982

First-mover in the instant noodles category

Growth stage of Maggi Noodles: (1983-1997)

It enjoyed around 50% market share valued at 250cr in this segment

Maturity stage of Maggi Noodles: ( through out 1990’s)

During 1990’s the market became saturated.

Maggi faced tough competition from Top Ramen and Hakka Noodles.

Decline stage of Maggi Noodles: (1997)

NIL changed the formulation of Maggi noodles in 1997.

However, this proved to be a mistake.

New product launched failed in the market, eg. Dal Atta

Noodles of Sambur flavor.

Relaunch stage of Maggi Noodles: (1999)

In 1999 company again changed the formation of its products.

Company came up with various interesting advertisements.

BCG Matix

According to this matrix, business could be classified as high or

low according to their industry growth rate and relative market

share.

1982 1983-97 and 2000-till date

1997 1999

Suggestive Promotional Strategies1. 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.

References

https://cb.hbsp.harvard.edu/cbmp/product/IMD601-PDF-ENG -Bala Chakravarthy, Harvard Business Publishing

http://www.worldfoodhistory.com/2014/03/history-of-maggi-brand-of-nestle.html

http://articles.economictimes.indiatimes.com/2012-11-28/news/35408963_1_instant-noodles-upy-noodles-maggi-noodles -Preethi Chamikutty

Thank you