Demand Analysis of Maggi

Demand Analysis Of Maggi Noodles

Submitted to-

Submitted by-

Dr. Geeta Jaglan

Naman Shrivastava-A1802011033

Faculty, Economics

Asif Unia- A1802011365

AIBS

Satyaneesh Dubey- A1802011074 Nishith Simon- A1802011020

Maggi noodle is a brand of instant noodles manufactured by Nestlé. The brand is popular in Australia, India, SouthAfrica, Brazil, Nepal, NewZealand, Brunei, Malaysia, Singapore, Sr i Lanka, Bangladesh, Pakistan, and Philippines. Maggi noodles are part of the Maggi family, a Nestlé brand of instant soups, stocks, and noodles. 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'. Whole-wheat flour based noodle variation marketed by the name "Vegetable Atta Noodles" has been introduced in India (Atta flour is used in preparing most forms of wheat based breads in India) and caters to health conscious buyers wary of the refined flour used in the regular Maggi noodles. 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 fact, "Maggi" has become a well-known brand for instant noodles in India and Malaysia. Over the years, Maggi noodles has become a popular snack food product in India.

Maggi noodles have availability even in the remotest locations of India like Kedarnath, Ladakh, Amarnath. These are places where there is no proper supply of even electricity but maggi is still available for the foody’s appetite. The “Economic Times” has applauded maggi with the following quote-

“What Xerox is to photocopier, Colgate to toothpaste, Maggi is to Noodles in India.”

Fast to Cook, Good to Eat

 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 MaggiPrice of CommodityQuantity Price

100 g

200 g

400 g

600 g

` 10

` 20

` 40

` 59

700 600 500 400 300 200 100 0

1

2

3

4

Weight

100

200

400

600

Price

10

20

40

59

Income of ConsumersIncome Group

Lower

Middle

Demand(packs/month) 3

Upper Middle 5

5

Higher 6

Pack/Month 7

6

6

5

5

5 4

3

3 Pack/Month

2 1 0

Pack/Month

Lower

Middle

Upper Middle

Higher

3

5

5

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