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

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

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

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

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

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

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

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

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

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

V Maggi is also facing competition with the chowmin.


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

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

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

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

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

V Improved product quality


V Product Sales pass through
distinct Stages. V Saving through the reuse of
original data
V Profit rise and fall at different
stages.

V Product requires different


strategeies.
 
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V Product class has the longest life cycle (e.g., gas powered
cars)
V Product form tends to have the standard PLC shape (e.g., dial
telephone)
V Orand can change quickly because of changing competitive
attacks and responses (e.g.,Tide,Cheer)
V `tyle is a basic and distinctive mode of expression (e.g., formal
clothing, Danish modern furniture)
V ÿashion is a popular style in a given field (e.g. business
casual)
V ÿad is a fashion that enters quickly, is adopted quickly, and
declines fast (e.g., pet rocks)
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V Hard to identify which stage of the PLC the product is in.
V Hard to pinpoint when the product moves to the next stage.
V Hard to identify factors that affect product¶s movement
through stages.
V Hard to forecast sales level, length of each stage, and shape of
PLC.
V Strategy is both a cause and result of the PLC
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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
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V Successful life-cycle management requires predicting the
shape of the curve and then successfully adapting strategies at
each stage
V When to consider entering the market
V How to manage to capitalize on growth
V It is possible to develop strategies that will extend the maturity
stage; modify the product, devise new uses, or design new
appeals
V Greatest challenge comes at the decline
 
 
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A concept that provides a way to trace the
stages of a product¶s acceptance, from its
introduction (birth) to its decline (death).
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V High failure rates
V No competition
V Frequent product modification
V Limited distribution
V High marketing and production costs
V Promotion focuses on awareness and information
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VIncreasing rate of sales
VEntrance of competitors
VInitial healthy profit
VPrice normally falls
VDevelopment cost are recovered
VDuring the 1990s the sale of Maggi noodles declined due to, growing popularity
of top ramen, another instant noodles product
VIn order to improve sales, Nil change the formulation of Maggi noodles in 1997.
VHowever, its proved to be a mistake, as consumer did not like taste of new
product.
VIn 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.
 
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V Declining sales growth
V Saturated markets
V Extending product line
V Stylistic Product changes
V Heavy promotion to dealers and consumers.
V Price and profits fall
V In 2003, Hindustan lever Ltd was all set to take on Nestlé's best-
selling Maggi 2-min noodles by launching a new category of liquid
snacks under its food brand, knorr Annapurna.
V The new product, called knorr annapurna soupy snacks, was priced
aggressively at Rs.5 and had four variants: Two chicken option &
Two vegetarian.
V Like Maggi, soupy snacks will be an in-between- meals snacks and
will be targeted at all age groups, particularly office-goers.
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V Long run drop is sales
V Large inventories of unsold items
V Elimination of all non-essential Marketing expenses.
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V `  stands for strengths, weaknesses, opportunities, and
threats.

V SWOT analysis is a tool for auditing an organization and its


environment.

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


issues.

V Strengths and weaknesses are internal factors.

V Opportunities and threats are external factors.


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

V %   ( attributes of the person or company that


are harmful to achieving the objective.

V    ( external conditions that are helpful to


achieving the objective.

V
 ( external conditions which could do damage
to the business's performance.
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V Market leader V Heavily dependent on One flavour
V Brand loyalty V Minor distribution problems
V Distribution channel V Health related issues
V Advertising strategy
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V Unexploited rural markets V Competitors
V Increasing number of V Competitive pricing (Top
working youth Ramen)
V Affinity of Indians to
Chinese food
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V BCG Matrix, is a matrix developed by a group known as Boston
Consulting Group in USA.
V 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.
V 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.
V It has 2 dimensions: market share and market growth.
V 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.
V The market standing of the company can be analysed in four different
classess.
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V High growth, high market share

V Have best profit

V Use and generate large amounts of cash.

V To maintain the market share product requires capital over


and above there cash flow.
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V Low growth, high market share.

V Profits and cash generation is high , and


because of the low growth, investments needed
is low.
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V Low growth, low market share.

V Very low competitive position and profit.

V Deliver cash, otherwise liquidate.


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V High growth, low market share.

V Have the worst cash characteristics of all, because high demands


and low returns due to low market share.
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V  (Maggi Noodles

V   (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.
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V Ôeading Orand in India as well as orld.
V Current `ales: Approx.
± 90000 boxes
± Rs. 4,79,49,000 in Mumbai
± 10,00,000 boxes ± 55 cr. in India
V Reasonable competitive pricing.
V Creative interaction blogs for customers:
www.maggi-club.in
V ÿocus mainly on Health Oenefits.
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V 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.

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

V Nestle has launched an interactive website for the consumers,


www.meandmeri.in

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

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

V Better understanding is in managing profitable product and


eliminating unprofitable one.

V 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.
 # 

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.

$
# *
V www.Maggi-club.in
V www.Wikipedia.com
V www.Google.com
V www.Nestle.com
V www.Meandmeri.com
V www.Scribd.com
V www.Managementparadise.com
V Principle of management:- Philip kotler
   .