By

Ajinkya chavan
Hemant shinde
Kunal sarvade

INTRODUCTION
Maggiis an international brand of seasonings, instant soups,
and noodles that originated in Switzerland. It was acquired
byNestlin 1947.
The company originally started inSwitzerlandin 1885,
whenJulius Maggitook over his father's mill. He quickly
became a pioneer of industrial food production, aiming to
improve the nutritional intake of worker families. Maggi was
the first to bring protein-richlegumemeals to the market,
and followed up with a ready-made soup based on legume
meals in 1886. In 1947, following several changes in
ownership and corporate structure, Maggi's holding company
merged with the Nestl company to formNestl-Alimentana
S.A., currently known in itsfrancophonehomebase as Nestl
S.A.

Noodles
Maggi instant noodles are popular
inIndiaandMalaysia. Nestle has 39% market share in
Malaysia, where "Maggi" is synonymous with instant
noodles,and 90% market share in India.In Malaysia,
fried noodles made from Maggi noodles are
calledMaggi goreng.
In June 2015, tests in India found high amounts of lead
andmonosodium glutamatein Maggi noodles.
TheFSSAIordered a national recall for all 9 variants of
Maggi Instant Noodles and Oats Masala Noodles.
In India, Maggi noodles carry a green dot, meaning they
are specifically formulated to serve vegetarians.This
special formulation is not available in other countries,
unless imported fromIndia.

Maggi Noodles safety concerns in India

In May 2015, Food Safety Regulators fromBarabanki, a district ofUttar
Pradesh, India reported that samples of Maggi 2 Minute Noodles had
unexpectedly high levels ofmonosodium glutamate, as well as up to 17
times the permissible limit of lead.On June 3, 2015, theNew
DelhiGovernment banned the sale of Maggi in New Delhi stores for 15 days
due to these findings.
On June 4, theGujaratFDA banned the noodles for 30 days after 27 out of
39 samples were detected with objectionable levels of metallic lead, among
other things.Assamhad banned sale, distribution, and storage of Maggi's
"extra delicious chicken noodles" variety for 30 days since June 4, 2015
after tests carried out at the state public health laboratory concluded that
the particular variety contained addedmonosodium glutamateand an
excessively high amount of lead.]Some of India's biggest retailers
likeFuture Group, which includesBig Bazaar,Easyday, and Nilgiris imposed
a nationwide ban on Maggi.In addition, multiple state authorities in India
found an unacceptable amount of lead, leading to bans in more than 5 other
states.
On June 4, 2015 the government ofTamil Nadubanned Maggi foods due to
an unacceptable amount of lead and other components.

 On June 5 theAndhra PradeshGovernment also banned Maggi foods.

During a press meet on June 26, 2015, the Minister for Health and
Family Welfare ofKarnataka,U. T. Khader, stated that Maggi foods
would not be banned.
On June 5, 2015, theFood Safety and Standards Authority of
India(FSSAI) ordered a recall of all nine approved variants of Maggi
instant noodles and oats masala noodles, suggesting that they were
unsafe and hazardous for human consumption.
On the same day, theFood Standards Agencyof theUnited
Kingdomlaunched an investigation into the level of lead in Maggi
noodles.On June 6, 2015, the Central Government of India banned
nationwide sale of Maggi noodles for an indefinite period.
Nepal indefinitely banned Maggi over concerns about lead levels in
the product.
Maggi noodles have been withdrawn in five African nations: Kenya,
Uganda, Tanzania, Rwanda and South Sudan by a super-market chain
after a complaint by the Consumer Federation of Kenya.

Testing controversies
Monosodium glutamate(MSG): Testing found some MSG in Maggi noodles.
The packet stated "No added MSG"; however, MSG naturally occurs in
hydrolyzed groundnut protein, onion powder and wheat flour. Maggi offered
to remove the words "No added MSG" from the package to overcome the
objection.
Lead: Maggi noodles include flavoring packets named "Tastemaker" which is
intended to dissolve in water during cooking. Maggi insisted that testing
should be done on the product as it is eaten; however, the FSSAI insisted
that the powder itself should be tested. On June 5, the FSSAI said that the
prescribed standards of 2.5 parts per million would have to apply to all
components of the product. Out of the 13 samples tested by Delhi
authorities, 10 of them had lead content exceeding this limit. The packets
that initiated the investigation from Uttar Pradesh had 17.2 ppm of lead.
Nestl also questioned the reliability of the labs used. Results from testing
outside of India (Singapore,USA) reported that that Maggi noodles were
safe. In the later Bombay High Court judgment, the court agreed that the
test results by earlier labs were unreliable.
The court mandated testing to be done at three specific laboratories (Punjab,
Hyderabad and Jaipur) where Maggi was found safe.The lead may have been
naturally occurring in plants and soilor from Indian spices, although within
acceptable limits.[

BAN IN INDIA
The Bombay High Court allowed the export of Maggi while
the ban in India remained.
FIRs against Bollywood Maggi Brand Ambassadors Amitabh
Bachchan, Madhuri Dixit, & Preity Zinta were lodged by
Sudhir Kumar Ojha, a lawyer, at Muzaffarpur district court,
asking the authorities to arrest them if required. He
complained that he fell sick after eating Maggi which he had
purchased from a shop at Lenin Chowk on May 30.
Maggi has always insisted that their noodles are safe.Maggi
recalled stock worth nearly Rs 320crorefrom the shelves
and paid 20 crores to a cement factory to burn the product.
In addition, Corporate Affairs Ministry imposed a Rs 640
crore fine on Nestle India for the presence of MSG and lead
beyond the permissible limit

 In August, tests performed by the US health regulator FDA

showed no dangerous lead levels in the products.On 13
August 2015, the nationwide ban was struck down by the
Bombay high court. The court stated that proper procedure
was not followed in issuing the ban and called into question
the test results, as the samples were not tested at
authorized laboratories accredited to the National
Accreditation Board for Testing and Calibration Laboratories
(NABL).
Maggi came back to the shelves in India in November
2015.Nestlehas also been running a campaign to win back
trust of members of the Indian community.Nestle in India
resumed production of Maggi in all five plants,that is
Nanjangud (Karnataka), Moga (Punjab) Bicholim (Goa) and
Tahliwal and Pantnagar in Himachal Pradesh, on 30
November 2015.

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

Short run impact in the elasticity of demand

In the short run period of time, the demand for the Maggie is less elastic
because id the price od Maggie suddenly increases by 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
Our product should be in the monopolistic competition market position.
No change in the taste and quality.

long run impact in the elasticity of demand

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 if other products dont change any of the things
like price, quality

Cross elasticity:
there is an increase in the price of Top ramen and knorr by 20% to
25 % then the demand for Maggie will increase by 8%.
Cross elasticity for complementary goods:
Goods:
If the price of the Maggi Ketchup, Maggi Tastemaker and other
complementary goods
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 the
dairy milk will remain constant because of it is a normal

Demand
Price related of goods
Maggie
QTY

100g

200g

400g

600g

Price

10

20

40

59

Top Ramen
QTY

170g

280g

480g

800g

Price

18

35

50

75

It 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

SALE OF MAGGI AND TOP ROMEN

Maggi Month of Sale Number of Cartons Sold
January 15
February 12
March 16
April 14
May 15
Top Ramen Month of Sale Number of Cartons Sold
January 10
February 8
March
9
April
6
May 12

Brands in trouble
It has seen a 2.3% decrease in global
sales in the first quarter of 2015.
Sales fell dramatically in Asia (8.3%
decrease) after reports of expired
meat in China and other quality
related problems in Japan.

Relaunch
Devilal Gayeri, Manager of Roman supermarket on Yari Road in
Versova, said he noticed a palpable excitement among the
customers when they spotted Maggi back on the shelves. We
have already sold 15 to 20 packets. The word will spread to the
entire area now, he said.
Gayeri added that he had been receiving queries from regular
customers frequently about the anticipated relaunch date of
Maggi. While we did manage to sell other brands when Maggi
was banned, our sales dropped significantly, he said. At his
store, the maximum packets were purchased by kids on Monday.
At Society Stores, Lokhandwala, three cartons of Maggi noodles
were ordered (288 packets). By 8.00 pm, less than a dozen were
left. We realised that people have been tracking the launch
date of Maggi. Everyone who visited the store purchased a
packet today, said Manan Gade, who sits at the counter.

Conclusion
Maggie 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 vice versa does not totally
work in the case of Maggie. People are ready to
purchase a bit costlier Maggie but they want the
taste Maggie has set in the minds.
Maggie for last 25 years had managed to remain
unbeaten In the market because it has always
given more preference of the taste of people.