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Maggi noodle is a brand of instant noodles manufactured by Nestl. The brand is popular in Australia, India, SouthAfrica, Brazil, Nepal, NewZealand, Brunei, Malaysia, Singapore, Sri Lanka, Bangladesh, Pakistan, and Philippines. Maggi noodles are part of the Maggi family, a Nestl 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. The Economic Times has applauded maggi with the following quote-

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

Demand side factors

Price of commodity

Income of the consumer. Prices of related goods.



Price of CommodityCeteris parabus i.e, other things being equal, the demand of Maggi is inversely related to its price. It implies that a rise in its price will bring about a fall in its purchase.This happens because of income and substitution effects. If the price of maggi doubled, my consumption would drop pretty
drastically, because i dont really think Maggi is worth Rs. 20.

Quantity Price

50g 5

100g 10

200g 20

400g 40

600g 59

Income of Consumers

Income of Consumers Lower Middle Upper Higher Middle 5 5 6 Demand(packs/month) 3

9 8 7 6

Lo Mid Upp Hig wer dle er her Mid dle

Series 1

5 4 3 2 1 0

Series 2 Series 3


As seen from the graph above 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.


The change in the prices of the substitute goods also effects the demand of maggi. If the price of the substitute goods would decrease, the demand of maggi will fall and if price of other substitute goods increases the demand of maggi will increase.There are many substitutes to maggi like Sunfeast Yippe, Horlicks Foodles,Top Ramen etc.


When commodities are complements, a fall in the price of one(other things being equal) will cause the demand of one of other to rise. In case of maggi, the fall in price of its complements would result in rise in demand of maggi. COMPLEMENTARY PRODUCTS KETCHUPS: MAGGI,KISSAN,HEINZ VEETABLES OIL

Taste and Preferences

The demand of commodity also depends upon tastes and preferences of consumers and changes in them over a period of time. The factors affecting tastes and preferences are following Economy Pack (Super Saver/Money Saver/Family Pack) Change in Traditional Food Habits Loved by Kids Youth-Quick and Odd time Snack Office People-Convenience These factors make maggi a popular fast food snack that has ruled heart of millions for years together.

How the demand behaves

Law Of DemandDemand for a commodity increases when its price decreases and falls when its prices rises while the other things remaining constant.

When price of maggi is Rs 10 ,a consumer purchases 5 packets of maggi.When the price falls to Rs 8, he will purchase 8 units of maggi.Similarly, when price further falls,quantity demanded by him goes on increasing till the price is Rs 1.

Consumer behaviour
Consumer prefers maggi because it is Easy to cook & tasty.Also children like to eat maggi, so that increases
the demand of maggi.Also it provides variety to the consumers. It is nutritious as a mix all vegetables. Health concerned people try to avoid Maggi noodles even though find it tasty. Awareness about new variants in maggi is high it is almost 95% but only 30% have actually tried the new ones rest are either brand loyal to masala maggi or perceive no other flavor can be comparative to masala flavor. USP- Easy to cook & tasty Variety Masses product Weakness Perceived as made up of Maida not good for health and calories