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    INTRODUCTION

    • Maggi is an international brand of seasonings, instant soups,and noodles that originated in Switzerland !t was ac"uiredby #estl$ in %&'(

    •  )he company originally started in Switzerland in %**+,

    when ulius -aggi took over his father.s mill He "uicklybecame a pioneer of industrial food production, aiming toimprove the nutritional intake of worker families -aggi wasthe /rst to bring protein0rich legume meals to the market,and followed up with a ready0made soup based on legumemeals in %**1 !n %&'(, following several changes in

    ownership and corporate structure, -aggi.s holding companymerged with the #estl$ company to form #estl$0AlimentanaSA, currently known in its francophone homebase as #estl$SA

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    Noodles• -aggi instant noodles are popular

    in !ndia and -alaysia #estle has 2&3 market share in-alaysia, where 4-aggi4 is synonymous with instantnoodles, and &53 market share in !ndia !n -alaysia,fried noodles made from -aggi noodles are

    called -aggi goreng• !n une 65%+, tests in !ndia found high amounts of lead

    and monosodium glutamate in -aggi noodles )he 7SSA! ordered a national recall for all & variants of-aggi !nstant #oodles and 8ats -asala #oodles

    • !n !ndia, -aggi noodles carry a green dot, meaning theyare speci/cally formulated to serve vegetarians )hisspecial formulation is not available in other countries,unless imported from !ndia

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    -aggi #oodles safety concerns in !ndia

    • !n -ay 65%+, 7ood Safety 9egulators from :arabanki, a district of ;ttar

    elhi ?overnment banned the sale of -aggi in #ew >elhi stores for %+ daysdue to these /ndings

    •  8n une ', the ?ujarat 7>A banned the noodles for 25 days after 6( out of

    2& samples were detected with objectionable levels of metallic lead, amongother things Assam had banned sale, distribution, and storage of -aggi.s4e=tra delicious chicken noodles4 variety for 25 days since une ', 65%+after tests carried out at the state public health laboratory concluded thatthe particular variety contained added monosodium glutamate and ane=cessively high amount of lead@ Some of !ndia.s biggest retailerslike 7uture ?roup, which includes :ig :azaar, asyday, and #ilgiris imposed

    a nationwide ban on -aggi!n addition, multiple state authorities in !ndiafound an unacceptable amount of lead, leading to bans in more than + otherstates

    • 8n une ', 65%+ the government of )amil #adu banned -aggi foods due toan unacceptable amount of lead and other components

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    • 8n une + the Andhra uring a press meet on une 61, 65%+, the -inister for Health and

    7amily Belfare of Karnataka, ; ) Khader, stated that -aggi foodswould not be banned

    • 8n une +, 65%+, the 7ood Safety and Standards Authority of!ndia C7SSA!D ordered a recall of all nine approved variants of -aggiinstant noodles and oats masala noodles, suggesting that they wereunsafe and hazardous for human consumption 

    • 8n the same day, the 7ood Standards Agency of the ;nitedKingdom launched an investigation into the level of lead in -agginoodles 8n une 1, 65%+, the Eentral ?overnment of !ndia bannednationwide sale of -aggi noodles for an inde/nite period

    • #epal inde/nitely banned -aggi over concerns about lead levels inthe product 

    • -aggi noodles have been withdrawn in /ve African nationsF Kenya,;ganda, )anzania, 9wanda and South Sudan by a super0market chainafter a complaint by the Eonsumer 7ederation of Kenya

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     )esting controversies• Monosodium glutamate C-S?DF )esting found some -S? in -aggi noodles )he packet stated 4#o added -S?4G however, -S? naturally occurs inhydrolyzed groundnut protein, onion powder and wheat our -aggi oIeredto remove the words 4#o added -S?4 from the package to overcome theobjection

    • LeadF -aggi noodles include avoring packets named 4)astemaker4 which isintended to dissolve in water during cooking -aggi insisted that testingshould be done on the product as it is eatenG however, the 7SSA! insisted

    that the powder itself should be tested 8n une +, the 7SSA! said that theprescribed standards of 6+ parts per million would have to apply to allcomponents of the product 8ut of the %2 samples tested by >elhiauthorities, %5 of them had lead content e=ceeding this limit )he packetsthat initiated the investigation from ;ttar

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    :A# !# !#>!A

    •  )he :ombay High Eourt allowed the e=port of -aggi whilethe ban in !ndia remained

    • 7!9s against :ollywood -aggi :rand Ambassadors Amitabh:achchan, -adhuri >i=it,

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    • !n August, tests performed by the ;S health regulator 7>A

    showed no dangerous lead levels in the products8n %2August 65%+, the nationwide ban was struck down by the:ombay high court )he court stated that proper procedurewas not followed in issuing the ban and called into "uestionthe test results, as the samples were not tested atauthorized laboratories accredited to the #ationalAccreditation :oard for )esting and Ealibration MaboratoriesC#A:MD

    • -aggi came back to the shelves in !ndia in #ovember65%+ #estle has also been running a campaign to win backtrust of members of the !ndian community#estle in !ndiaresumed production of -aggi in all /ve plants,that is#anjangud CKarnatakaD, -oga C

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    Price Elasticity• -aggi is a brand loyal product ven if the price is increased the customers

    are still ready to purchase maggi )hus the elasticity is positive

    • Short run and Mong run impact in the elasticity of the demand

    Short run imact in the elasticity o! demand

    • !n the short run period of time, the demand for the -aggie is less elasticbecause id the price od -aggie suddenly increases by 9s%5 to 9s%+ thanthe demand of the product will also decrease but in the long run thedemand may not be much aIected

    •  )here are some criteria that also aIects

    • 8ur product should be in the monopolistic competition market position

    • #o change in the taste and "uality

    long run imact in the elasticity o! demand

    • !n the Mong run period of time, the demand for the maggi is more elasticbecause if the price

    of the maggi in the 655( was 9s%5 and in 65%5 it is 9s%+ and, the"uantity and the "uality

      remaining the same and if other products donNt change any of the thingslike price, "uality

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    Cross elasticity"

    • there is an increase in the price of )op ramen and knorr by 653 to6+ 3 then the demand for -aggie will increase by *3

    Cross elasticity !or comlementary goods"

    ?oodsF

    • !f the price of the -aggi Ketchup, -aggi )astemaker and othercomplementary goods

    plastic packaging materials will increase constantly than the costof the production will increase and by this the price of the relevantproduct will also increase but the demand of the

    • dairy milk will remain constant because of it is a normal

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    DemandPrice related o! goods

    • Maggie

    • To Ramen

    • !t shows that price and "uantity of -aggi were in much better range than )op

    9amen and thus the demand of maggi sustained in the market

     

    $T% &''g (''g )''g *''g

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    SAM 87 -A??! A#> )8< 98-#

    Maggi-

    -onth of Sale #umber of Eartons Sold•  anuary %+

    • 7ebruary %6

    • -arch %1

    • April %'

    • -ay %+

    To Ramen-

    • -onth of Sale #umber of Eartons Sold

     anuary %5• 7ebruary *

    • -arch &

    • April 1

    • -ay %6

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    Brands in trou.le

    !t has seen a 623 decrease in globalsales in the /rst "uarter of 65%+Sales fell dramatically in Asia C*23decreaseD after reports of e=pired

    meat in Ehina and other "ualityrelated problems in apan

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    Relaunch

    • >evilal ?ayeri, -anager of 9oman supermarket on Oari 9oad inPersova, said he noticed a palpable e=citement among thecustomers when they spotted -aggi back on the shelves QBehave already sold %+ to 65 packets )he word will spread to theentire area now,R he said

    • ?ayeri added that he had been receiving "ueries from regularcustomers fre"uently about the anticipated relaunch date of-aggi QBhile we did manage to sell other brands when -aggiwas banned, our sales dropped signi/cantly,R he said At hisstore, the ma=imum packets were purchased by kids on -ondayAt Society Stores, Mokhandwala, three cartons of -aggi noodleswere ordered C6** packetsD :y *55 pm, less than a dozen wereleft QBe realised that people have been tracking the launchdate of -aggi veryone who visited the store purchased apacket today,R said -anan ?ade, who sits at the counter

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    Conclusion

    -aggie has achieved a great position in marketand this position has little aIect of its competitors

    C )op 9amen, wai wai, etcD

     

    Maw of demand Q Mower the price higher the"uantity demanded vice versaR does not totallywork in the case of -aggie

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