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Name: Shital Gosavi Roll no: 09 Sub: Economic (demand analysis) Assignment: 01

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.

1. Introduction 2. History of maggi 3. Demand analysis 4. Conclusion 5. Suggestion 6. bibliography

Maggi noodles is a brand of instant noodles manufactured by Nestl. 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 Nestl 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 Nestl 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 Nestl 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".

INDIA: Nestl India Ltd. (NIL), the Indian subsidiary of the global FMCG major, Nestl 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 Nestl Group had been taking measures to transform itself into a health and wellness' company. Since the early 2000s, the Nestl 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.


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. 2. 3. 4. 5. 6. Teekha masala Tomoto chatpat Imli khata mitha Tomato ketchup Hot and sweet Tomato pudina 7. Ginger, Garlic & Coriander 8. Maggi Oriental Chilli Garlic 9. Ginger, Garlic & Coriander 10. Maggi Pichko 11. Tomato 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 DemandDemand for a commodity increases when its price decreases and falls when its prices rises while the other things remaining constant.

Factors affecting Demand of MaggiPrice of CommodityQuantity Price 100 g ` 10 200 g ` 20 400 g ` 40 600 g ` 59

Income of ConsumersIncome Lower Group Demand(pac 3 ks/month) Middle 5 Upper Middle 5 Higher 6

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 ElasticityIf 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 GoodsMaggiQuantity Price

100 g ` 10

200 g ` 20

400 g ` 40

600 g ` 59

Top RamenQuantity 170 g Price ` 18

280 g ` 35

480 g ` 50

800 g ` 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 ElasticityMaggi 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 ElasticityIf 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 dont 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. Its 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.

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.

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 companys 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:- Nestl Indias objective is to manufacture and market the companys 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. Maggis 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.

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 4Ps of Marketing Magazine Marketing Today Magazine