Presented By:

Shweta Gulia (M072)

Megha Bhalla (M090)

Vineet Yadav (M094)

Rahul Verma (M093)

Rishab Kalra (M076)

Jena Pandey (M080)

Aayushi Pandey (M079)

Harshita Srivastava (M087)

“Repositioning of Maggi after lead fiasco”

Introduction

• Launched in 1983 by Nestle group originated in Switzerland.

• Entirely original concept.• Brand value of Rs. 3.7 billion.• Dominating market share of more than 90% for

past 25 years.• Faced challenges in the initial years• Adopted many strategies over the years, taglines

such as ”2-minute noodles” , “taste bhi health bhi” , ”me and meri Maggi”.

Product Life Cycle

IntroPhase

MaturityPhase

Decline Phase

Time

Sales

GrowthPhase

Phase 1: Introduction Phase

• Nestle launched Maggi 2 minute noodles.• Diversification strategy• Single segment concentration

Markets

Products

M1

Housewives

M2

Working women

M3

Students

P1

Maggi noodles

NIL

NIL

Phase 2 : Growth Phase

•Period of rapid market acceptance.•Market development – repositioned itself to

target kids.•Product specialization

Markets

Products

M1Kids(5-12 years)

M2Teenagers(13-19 years)

M3Adults(20-35 years)

P1

Maggi noodles

NIL

NIL

Phase 3 : Maturity Phase

Saturated marketsExtending the product lineProduct developmentFull Coverage Specialization

Markets

Products

M1

Kids(5-12 years)

M2

Teenagers(13-19 years)

M3

Adults(20-35 years)

P1

Maggi noodles

P2

Maggi ketchup

P3

Maggi soups

Phase 4 : Decline Phase

•Competition increasesLarge inventories of unsold

itemsReduce expenditureProduct DevelopmentFull coverage Specialization

Markets

Products

M1

Kids(5-12 years)

M2

Teenagers(13-19 years)

M3

Adults(20-35 years)

P1

Maggi noodles

P2

Maggi ketchup

P3

Maggi soup

In spite of its decline in sales, Maggi regained its position by rigorous advertising efforts.

It launched its new variant “Atta noodles” keeping in mind the health issues and the lifestyle of people.

Lead Fiasco

High levels of MSG and lead detectedOn June 3rd 2015, New Delhi Govt banned sales

of Maggi for 15 days. Gradually other states also banned sales of

Maggi.Ultimately FSSAI tested variants of Maggi and

suggested unsafe for human consumption.

Relaunch Maggi products returned to the shelves in November 2015

Maggi regained 50% market share Nestle advertising campaign won back the

trust of Indian community

Market Penetration StrategyFull Market Coverage

Growth

Product development(Hot heads)So by launching different variants, helped

gained market share

• In the longer term, likely to cross 60% but unlikely to reach the level where it was before the ban