u b t o S u b y J a g S h r A 1 8 y , A s i A 1 8 A I S a h A 1 7 4 Maggi noodle is a brand of

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instant noodlesmanufactured by Nestl. T h e b r a n d i s p o p u l a r inAustralia,India, SouthAfrica,Brazil, Nepal, NewZealand,Brunei,Malaysia,Singapore,Sr i Lanka,Bangladesh,Pakistan, andPhilippines. Maggi noodles are part of the Maggifamily, a Nestl brand of instant soups, stocks, and noodles.M a g g i n o o d l e s r e c e n t l y i n t r o d u c e d a n e w v a r i e t y o f i t s n o o d l e s , t o c a t e r f o r t h e h e a l t h conscious like 'No MSG', ' L e s s S a l t ' , a n d ' N o 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 healthconscious buyers wary of the refined flour used in the regular Maggi noodles. This moveh e l p s t h e b r a n d i n I n d i a a s s u b u r b a n m o t h e r s , w h o f e e d t h e n o o d l e s t o c h i l d r e n as ana f t e r s c h o o l s n a c k , a r e t h e p r i m a r y c u s t o m e r s o f t h e b r a n d . R e c e n t l y , a line of rice noodlesandwhole wheatwith pulses, carrots, beans, and onions has also been introduced inIndia.In fact, "Maggi" has become a well -kno wn brand for instant noodles in India and Malaysia. Over the years, Maggi noodles has become a popular snack food product in India.M a g g i n o o d l e s h a v e a v a i l a b i l i t y e v e n i n t h e r e m o t e s t l o c a t i o n s o f I n d i a l i k e K e d a r n a t h , Ladakh, Amarnath. These are places where there is no proper supply of even electricity but maggi is still available for the foodys appetite. The Economic Times has applauded maggiwith the following quoteWhat Xerox is to photocopier, Colgate to toothpaste , Maggi is to Noodles in India.

Fast to Cook, Good to Eat 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 MaggiPriceofCommodityQ u a y 1 0 g 2 0 g 4 0 g 6 0 ` 1 0 2 0 4 0 5 9

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nonr I eoe oCcfss muI m n c o m e G r o u p L o w e r M i d d l e U p p e r MiddleHigher Demand(pack s/month)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. IncomeElasticityIf the income rises by 20% then the demand will rise by 10% the curve is positively slopedmeans that elasticity of Income is >0 and <1. Demand Graph of Income Elasticity Price of Related Goods M a g i Q u a n t i t y 1 0 0 g 2 0 0 g 4 0 0 g 6 0 0 g

Price ` 1 0 ` 2 0 ` 4 0 ` 5 9 T pRmno ae Q u a n t i t y 1 7 0 g 2 8 0 g 4 8 0 g 8 0 0 g Price ` 1 8 ` 3 5 ` 5 0 ` 7 5 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. PriceElasticityMaggi 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 demandfor maggi will increase by 8%. Cross Elasticity for Complementary Goods: If the price of the Maggi Ketchup, Maggi Tastemaker and other complementary goods like plastic packaging materials will increase constantly than the cost of the production will increase and by this the price of the relevant product will also increase but the demand of thedairy milk will remain constant because of it is a normal good. 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 priceo f m a g g i s u d d e n l y i n c r e a s e s R s . 1 0 t o R s . 1 5 , t h a n t h e d e m a n d o f t h e p r o d u c t w i l l a l s o 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 priceof 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, qualityand quantity than it will greatly affect the demand of the maggi and it will started decreasingday by day. Assumptions: I. There are possibilities of change in technology & chances of Product innovation in the long run. II. There are possibilities of increasing good quality chocolate manufacturing units. Taste and Preferences Economy Pack (Super Saver/Money Saver/Family Pack) Change in Traditional Food Habits Loved by Kids Youth-Quick and Odd time Snack Office People-ConvenienceThese factors make maggi a popular fast food snack that has ruled heart of millions for yearstogether. Sales Data-MaggiMonth of Sale Number of Cartons Sold J a n u a r y 1 5 F e b r u a r y 1 2 M a r c h 1 6 A p r i l 1 4 M a y 1 5 Top RamenM o n t h o f S a l e N u m b e r o f C a r t o n s S o l d J a n u a r y 1 0 F e b r u a r y 8

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