The World of Nestle Maggi

Demand Forecasting

-Megha Gupta, A069

Law of DemandAccording to Alfred Marshal, the Law of

Demand states that-Other things being equal, the demand for a commodity varies inversely with its price.

Demand Forecasting

A Demand Forecast is the prediction of what will happen to the company’s existing product sales.

Proactive process of determining what products are needed where, when, and in what quantities.

Foundation of a company’s entire logistics process.It is thus, the activity of estimating the quantity of a

product or service that consumers will purchase.

Know your product

Nestle is a Swiss Company founded in 1866 by Henri Nestle. It markets its product in 130 countries across the world. It was launched in the year 1983 in India

It is the market leader in Instant Noodles and currently enjoys a market share of about 70%.

Maggi Noodles in India was initially targeted at working women, but eventually repositioned itself to target kids.

Factors determining demand of Maggi

Price IncomeConsumer’s taste and preferenceCompetitionPrice of Complementary goodsPopulation and age groupAdvertisementCelebrations and occasionsBrand Image

Maggi’s Demand Forecast

Advantages Disadvantages

1) The data helps Maggi to reduce wastage and produce the flavors that are excessively demanded.

2) The data is reliable if collected properly.

3) The forecast helps Maggi to produce efficiently.

1) Maggi needs to have a lot of past data for accurate prediction of demand.

2) If the determinants of demand are not stable, then there can be problems in forecasting.

3) The data may be biased or representative.

Advertisements© ‘Fast to cook, good to eat’.

© ‘Mummy, bhook lagi hai…Bas do minute’.© ‘Badi Gazab Ki Bhook Lagi, Maggi Chahiye Mujhe Abhi’.

© ‘Taste Bhi, Health Bhi Khushiyan bhi’.

© ‘Just add garam paani … Carry on jaani’.

© ‘ Me and meri Maggi story’.

ConclusionMaggi has managed to remain unbeaten in

the last 30 years because it has always catered to the taste buds of the people.

The Law: Lower the price, higher the demand works in favor of Maggi completely.

Maggi should always redress the consumer’s complaints and demands regularly.

As its rival Sunfeast Yippee has launched new ‘Chinese Masala’ noodles, Maggi needs to keep on coming with great marketing strategies to maintain its position.

Thank you.