Maggi Product Life Cycle & BCG Matrix
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Maggi 2-minute noodles has enjoyed market dominance in India since being introduced in 1982 by Nestle. It currently holds around 90% market share. Maggi went through the typical product lifecycle stages of introduction, growth, maturity, and decline when Nestle changed the formulation in 1997. However, in 1999 Maggi was relaunched and recaptured the market through new advertisements and focusing on its benefits of being instant and healthy. The document suggests promotional strategies for Maggi like test marketing new products, strengthening rural distribution, and launching new ad campaigns with a brand ambassador.
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Maggi Product Life Cycle & BCG Matrix
- 1. Maggi Product : Maggi 2-minutes NoodlesProduct : Maggi 2-minutes Noodles AASHISH SINGH ABHISHEKH PANJA AKASH SHUKLA AKASH PATIL ASHISH HIRAWAT
- 2. IntroductionIntroduction 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.
- 3. World Market Share Maggi 94% Top Ramen 4% Other Local 2% Maggi 94% Top Ramen 4% Other Local 2%
- 5. 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
- 6. 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 1990s) During 1990s the market became saturated. Maggi faced tough competition from Top Ramen and Hakka Noodles.
- 7. 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.
- 8. BCG Matix According to this matrix, business could be classified as high or low according to their industry growth rate and relative market share.
- 10. 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.
- 11. References https://cb.hbsp.harvard.edu/cbmp/product/IM D601-PDF-ENG -Bala Chakravarthy, Harvard Business Publishing http://www.worldfoodhistory.com/2014/03/hi story-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
- 12. Thank you