In May 2006, Nestle India Ltd (NIL), a major FMCG company in the country and a subsidiary of the Switzerland - based Nestle Group launched a instant noodles product called Maggi Dal Atta Noodles under the popular Maggi brand. This was the latest addition to the range of 'healthy' products NIL had been launching over the early 2000s.
- Sales are at peak
- Profits are high
- Cost per customer low
- The marketing objective is to maintain or extend the market share
- Focus on creating distinctive image, based on twin benefits of "Instant" & "Healthy"
- Launch new advertising campaign with the brand ambassador
- To boost sales, Nestle should try to reduce the price of Maggi Noodles. This can be possible by using thinner and cheaper packaging material.
Let's we know about Maggi
Product Life Cycle of
Introductory Stage
- High failure rates
- No competition
- Frequent modifications
- High production costs
- Nestle introduced the maggi brand in India with its maggi 2-minute noodles
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Introductory stage
- The product was launched keeping in mind the working women and children
- No competition
- First mover advantage
- Producer--distributor-retailer-consumer
- The initial pricing strategy was low pricing strategy to make products affordable
- Promotion - "Bass 2 mintue"
Decline Stage
Introductory
Stage
Maggi in India
Extension Strategies
Decline Stage
- Long-run drop in sales
- Large inventories of unsold items
- Elimination of all non - essential marketing expenses
Resources
Maturity Stage
Product Life Cycle
The Product
About Maggi
Video
Maggie is a Nestle brand of instant soups, ketchup, sauces, seasonings and instant noodles.The original came into existence in 1872 in Switzerland, when Julius Maggi took over his father's mill.The brand is popular in Australia, India, South Africa, Brazil, New Zealand, Malaysia, Singapore, SriLanka, Bangladesh and the Philippines.
Growth Stage
- Increasing rates of sales
- Entrance of competitors
- Development costs are recovered
- In early 1990s, 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 wasn't accepted by the consumers.
- In March 1999, NIL re-launched the old version of Maggi noodles after which the sales revived.
Maturity Stage
Growth Stage