Name: Shital Gosavi

Roll no: 09

Sub: Economic (demand analysis)

Assignment: 01

Acknowledgement
We heartily thank our Project in-charge, Prof. Rajni Mathur, Faculty, whose
encouragement, guidance and support from the initial to the final level enabled us
to develop an understanding of the subject. We are grateful for professor
contribution towards the execution of our project.

Lastly, we offer our regards and blessings to all of those who supported us in any
respect during the completion of the Research.
 Index

1. Introduction

2. History of maggi

3. Demand analysis

4. Conclusion

5. Suggestion

6. bibliography

Introduction
Maggi noodles is a brand of instant noodles manufactured by Nestlé. In several
countries, it is also known as "maggi mee" (mee is Indonesian/Malay/Hokkien for
noodles).Maggi noodles are part of the Maggi family, a Nestlé brand of instant
soups, stocks, and noodles. In Malaysia, there are fried noodles made from maggi
noodles known as Maggi goring. Maggi noodles recently introduced a new variety
of its noodles, to cater for the health conscious like 'No MSG', 'Less Salt', and
'No Trans fat'.

This move helps the brand in India as suburban mothers, who feed the noodles to
children as an afterschool snack, are the primary customers of the brand. Recently,
a line of rice noodles and whole wheat with pulses, carrots, beans, and onions has
also been introduced in India.

In mid-2008, New Zealand supermarkets introduced replacement formulations for

its Beef, Oriental, and Curry flavors’. A new feature is an extra sachet containing
dehydrated vegetables. Maggi claims the new range contains 88% less total fat and
86% less saturated fat than the average of top-three (unnamed) 2-minute-noodle
competitors. The new Maggi range also has considerably lower fat than its own
previous formulation. However, the salt content has been increased by 31 percent.

 Flavors

Maggi Noodles are available in a large assortment of different flavors and vary
from country to country.

Maggi noodles also produces instant noodles known as "Hot Bowl" noodles named
"Cuppa Mania" in India. In Some countries, new flavors were made on the 25th
Anniversary.

 Health claims controversy

Nestlé have faced criticism over their advertising of the Maggi brand, adhering to
marketing regulations in developed countries, but making misleading claims in
developing countries where regulation permits it. For example, in October 2008
Nestlé mistakenly aired an advert meant for Bangladeshi TV on British TV. The
advert made false claims that the noodles would "help to build strong muscles,
bone and hair".

HISTORY OF MAGGI
INDIA:
Nestlé India Ltd. (NIL), the Indian subsidiary of the global FMCG major, Nestlé
SA, introduced the Maggi brand in India in 1982, with its launch of Maggi 2
Minute Noodles, an instant noodles product. With the launch of Maggi noodles,
NIL created an entirely new food category – instant noodles - in the Indian
packaged food market. Because of its first-mover advantage, NIL successfully
managed to retain its leadership in the instant noodles category even until the early
2000s.

During the 1990s, the sales of Maggi noodles declined, and this was attributed
partly to the growing popularity of Top Ramen, another instant noodles product. In
order to improve sales and attract more consumers, NIL changed the formulation
of Maggi noodles in 1997. However, this proved to be a mistake, as consumers did
not like the taste of the new noodles. In March 1999, NIL reintroduced the old
formulation of the

In July 2001, Maggi replaced Nescafe (NIL's coffee products brand) as the
company' score brand. Nescafe had been NIL's core brand since 1998.Commenting
on the shift, Carlo Donati (Donati), chairman and managing director, NIL, said,
"The focused approach on Nescafe, which was the company's flagship brand
over the last few years, has yielded rich dividends and we plan to replicate the
same in case of Maggi as well."In the early 2000s, the Nestlé Group had been
taking measures to transform itself into a’ health and wellness' company.

Since the early 2000s, the Nestlé Group had been introducing 'health and wellness
products all over the world. In India, NIL introduced new 'healthier' weaning and
milk products in 2004.In March 2005, the Maggi brand too took to the health route
with the launch of Vegetable Atta Noodles. NIL made use of the group's extensive
research and development facilities in developing this new 'healthy' product.

Product Port Folio of the Brand:

MAGGI” The product mix of Maggi is divided into various categories defined
below. The company has launched various products under each category as
mentioned below.

1. Noodles
 Maggi 2-Minute Noodle ( Masala , Chicken, Curry and Tomato)
 Maggi Dal Atta Noodles ( Sambhar taste)
 Vegetable Atta Maggi Noodles
 Maggi Rice Noodles (Lemon Masala, Chilly Chow and Shahi Pulao)
  Maggi Cuppa mania (Masala yo, Chilli chow yo)

2. Sauces

1. Teekha masala 7. Ginger, Garlic & Coriander

2. Tomoto chatpat 8. Maggi Oriental Chilli Garlic
3. Imli khata mitha 9. Ginger, Garlic & Coriander
4. Tomato ketchup 10. Maggi Pichko
5. Hot and sweet 11. Tomato
6. Tomato pudina 12. Imli

4. Soups Healthy

Chef Style

- Cream Mushroom

- Sweet Sour Tomato Noodles

- Tangy Tomato Vegetables

Home Style

- Creamy Chicken

- Mixed Vegetable

- Rich Tomato

Demand analysis
Law of Demand-
“Demand for a commodity increases when its price decreases and falls when its
prices rises while the other things remaining constant.”

 Factors affecting Demand of Maggi-

Price of Commodity-

Quantity 100 g 200 g 400 g 600 g

Price ` 10 ` 20 ` 40 ` 59

Income of Consumers-

Income Lower Middle Upper Higher

Group Middle
Demand(pac 3 5 5 6
ks/month)
As seen from the above graph the maggi demand goes up as the income level goes
up. The middle and the Upper middle have the same level of consumption.
Income Elasticity-
If the income rises by 20% then the demand will rise by 10% the curve is
positively sloped means that elasticity of Income is >0 and <1.

Price of Related Goods-

Maggi-
Quantity 100 g 200 g 400 g 600 g
Price ` 10 ` 20 ` 40 ` 59

Top Ramen-
Quantity 170 g 280 g 480 g 800 g
Price ` 18 ` 35 ` 50 ` 75
The graph here shows that price and quantity of Maggi were in much better range
than Top Ramen and thus the demand of maggi sustained in the market.

Price Elasticity-
Maggi is a brand loyal product. Even if the price is increased the customers are still
ready to purchase maggi. Thus the elasticity is positive.

Cross Elasticity-
If there is an increase in the price of Top Ramen or Knorr by 20% to 25% then the
demand for maggi will increase by 8%.

 Short run and Long run impact in the elasticity of the demand

In the Short run period of time, the demand for the Maggi is less elastic because if
the price of maggi suddenly increases Rs.10 to Rs.15, than the demand of the
product will also decrease but in the long run the demand may not be much
affected.

There are some criteria that also affects and they are like:
· Our product should be in the monopolistic competitive market product.
· No change in the taste and quality.

In the Long run period of time, the demand for the maggi is more elastic because if
the price of the maggi in the 2007 was Rs.10 and in 2010 it is Rs.15 and, the
quantity and the quality remaining the same and the if other products don’t change
any of the things like price, quality and quantity than it will greatly affect the
demand of the maggi and it will started decreasing day by day.

ANALYSIS

Maggi is having the best channel, as the product is easily available at almost each&
every store. Next comes the top ramen which is also established in the market from
long time but brands like Knorr, Sunfeast, Horlicks is not available at stores& if it
is available its not been sold. Pricing has been a very important factor when it
comes to the sales of Maggi products and retailers emphasize on the fact that
customers want a good price as there are competitors coming in the market.
Television is the medium from which people are aware and enlightened about the
brand. It‘s also been observed that Maggi has the best mind-share among all the
brands that were researched in the project. Also, apart from it being a ready-to-eat
product with fun, Maggi as a brand is perceived as a family product amongst the
other brand which was researched.
 Conclusion
Maggi has achieved a great position in market and this position has little affect of
its competitors ( Top Ramen, Wai Wai, etc.)

Law of Demand “Lower the price higher the quantity demanded and vice versa”
does not totally work in the case of maggi. People are ready to purchase a bit
costlier maggi but they want the taste maggi has set in their minds.

Maggi for last 25 years had managed to remain unbeaten in the market because it
has always given more preference to the taste of people.

The company continuously focuses its efforts to better understand the changing
lifestyles of modern India and anticipate consumer needs in order to provide
convenience, taste, nutrition and wellness through its product.

Suggestion
After the conducted study following recommendations could be sited for Maggi
Brand. To gain maximum leverage in terms of profit the company should pay
emphasis on segments with age groups 25-35 and above. Advertising is the key to
success. Targeting these segments will not only enhance the company‘s profit
margins but also it will leverage the brand image of Maggi. The company should
advertise its products by depicting attributes related to Health like Nutrition values,
% of Vitamins, Proteins etc. This would help in customers perceiving the product
as Healthy

FUTURE PLANS:- Nestlé India‘s objective is to manufacture and market the

company‘s products in such a way so as to create value that can be sustained over
the long term for consumers, shareholders, employees and business partners.
Maggi‘s aims to create value for consumers that can be sustained over the long
term by offering a wide variety of high quality, safe food products at affordable
prices. The company continuously focuses its efforts to better understand the
changing lifestyles of modern India and anticipate consumer needs in order to
provide convenience, taste, nutrition and wellness through its product.

Bibliography
 www.nestle.in
 www.maggi-club.in
 www.indianjournalofmarketing.com
 www.careerdynamo.com/marketing_journals.html
 www.wikipedia.com

 Newspapers and Magazines:-

Economic Times – ―Brand Equity Supplement
4P‘s of Marketing Magazine Marketing Today Magazine