4th Oct, 2007 Tolani Institute of Management

studies
Timeline of
Maggi Noodles
 INTRODUCTION TO PLC…
• The course of a products sales and profits over its
lifetime is called the Product Life Cycle..

• Product life cycle is a concept that provides a way to

trace the stages of a product’s acceptance , from its
introduction (birth) to its decline..
 STAGES IN PLC…

• Introduction Stage..

• Growth Stage..

• Maturity Stage..

• Decline Stage..
PLC OF MAGGI

TIME
 Introduction Stage..

• Sales growth tends to be slow at this stage.

• Cost per customer is high.

• Negative profits.

• Competitors are few.

The marketing objective is to create product awareness.

 INTRODUCTORY STAGE OF MAGGI

• First-mover advantage in instant noodles

• Targeted working Women; failed
• Targeted Children & their mothers;
– Convenience & Fun product
• Yellow Packaging, Added Vegetable-Health Factor,
Nestle brand-Hygiene factor
• Sponsored ‘Hum Log’- Soap opera; 5 minute break.
• No Competitors
 INTRODUCTION CONT…

• PRICING
The initial pricing strategy was low pricing strategy to
make product affordable.

• PROMOTION
Promotion focuses on awareness and information
Promoted with the tag line
“ BAS 2 MINUTE.” “You and Maggi make tastier meals”
Promotion done by
- Giving gifts on empty packets.
 Growth Stage…

• Rapidly rising sales.

• Rising profits.

• Unit manufacturing cost declines.

• The marketing objective is to maximize market

share.
 MAGGI GROWTH STAGE…
• Year:1997 Top Ramen Entered into the market

• 1997-1999 : Changed taste formulation - failed. But

1999, reintroduced ‘Fast to cook, Good to eat’
• Year 2000 Onwards- Sales increased.

• Year 2004: Small Pack of Maggi (Preity Zinta

endorsed) priced: Rs.5/pack.
• 50% market share.
 Growth Stage … Contd
• Year 2005: PROMOTION- “Health bhi, Taste bhi”
• Offering freebies like collectible foreign stamps, other freebies with maggi
packs.

Advertising strategies:
• Focusing on kids & mothers.

• New product innovation, Added the health factor

-Veg. Atta Noodles
-Dal Atta Noodles
-Cuppa Mania

• Availability in different packages:

-50 gms
-100 gms
-200 gms
-Family packs(400 gms)
 Maturity Stage…

• Sales are at peak.

• Profits are high.

• Cost per customer low.

• The marketing objective is to maintain or

extend the market share.
 MAGGI MATURITY STAGE
• Year 2009-2010: Entry of ITC, Sunfest brand.

• 90.7% market share to 86.5%

• Slow Down In Sales.

• Fall in market share, new entrants.

• PROMOTION:
– Taste bhi Health bhi

– Me and Meri Maggi (2012)

 MATURITY CONT…

PRODUCT
- Maggi introduced wide variety of products like Dal atta
noodles, Chicken maggi, Maggi cuppa mania.

PRICE
- Maggi still comes in very affordable prices starting from Rs.
5, they reduced the quantity instead of increasing price.
 Decline Stage…

• Sales started declining

• Profits are at decline

• Cost per customer still at low

• The marketing objective is to reduce the

expenditure
 MAGGI DECLINE STAGE…
• New product launched but failed.
– Dal Atta noodles of sambar flavour.
• Many Competitors entered into the market.
• Market share declined. (Still remains dominant in
instant noodles category)
• Formulation Changed
 CURRENT SCENARIO OF MAGGI
• Leading Brand in India as well as World.
• 2013- 60% market share (Source: Euromonitor International)
• It has also established itself as a part of households’ monthly
grocery purchases and become acceptable as a quick meal
option.
• The brand enjoys a high level of loyalty as Maggi was the
first instant noodle brand to be introduced in India.
• Launch of new : Maggi Dumdar Noodles, Maggi Bhuna
Noodles, Maggi Curry Noodles.
• Amitabh Bacchhan brand ambassador; “Do minute mein
khushiyan”
MARKET RESEARCH
Cont…