The economy is increasing day by day, as consumers we play a vital role in working of the economy of the country. All of the marketing decision marketing decision is depend on us as consumers. This decision made by consumers our consumption effects the demand and supply of commodity. Maggi two minutes noodles is leading a brand and over the years Maggi has positioned itself as fast to cook, good to eat. Maggi noodles are a brand which is manufactured by nestle launched in year 1983 in India.
And it initially target to working womens and consumers of all the age groups.
Maldives has emerged as a large consumer of Maggi noodles.
Since the tourism boom of the Maldives in 1970s resorts here have been facing with the difficulties of Getting the products which is needed to their guests expectations, in there BestBuy came as to bring light to their darkness. They serve all of the resorts to the country and nowadays to shops and restaurants also.
BestBuy have acquired agencies and distributorships in Maldives for a number of top world brands of foods and paint items also fast foods. BestBuy Maldives became separate company in 2006. Principle shareholder is Mr. Ismail Hilmy who is known as a managing director of the company.
So the adjustment of to the changing of the wider area and different consumer eating habits has made growing to accept the 2 minutes noodles. In Maldives around 80% of population eats Maggi every day in all the age groups.
Demand and supply is the most fundamental concepts of economics. And its a back of market economy. Demand refers to the quantity of goods that customer desired to buy in a certain quantity over a given period of time. The relationship between price and quantity is known as demand relationship.
1. Desire to purchase
2. Purchasing power
Law of demand states when there is an increase in prices the quantity demand will decreases and when the price go down the quantity demand will increase.
FACTORS EFFECTING DEMAND AND HOW THE DEMAND IS CHANGING DUE TO FACTORSINCOME: the demand for goods also depends on the income of the people. The greater their income will increase the demand for the product also increases.in illustration plan it shows result for the rise of the salary of the population will increase the demand and the whole demand cure shift to upward and vice versa. The reason for this is because higher income people will effort to buy more noodles also they can go to a fancy restaurants and they can fulfill their needs. On the other hand consumers with low income usually dont eat fast foods they would rather go to the stuffs which is available in home like rice, floor, curry therefore the demand curve will shift to left.
CHANGES IN PRICE OF RELATED GOODS: demand for product can also affect by the changing the price of related goods such as complementary and substitute goods. A substitute goods are a good or service that can be used in a place of other goods. A lower price of substitute decreases the price of other product. Other goods are complements meaning that goods can be used together to get the satisfaction of the other product.eg: Maggi and ketchup, Harris.
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Maggi has sustained its position in the market because the Maggi product has more quantity as compared with substitute goods. And also its shows that the rise in price of noodles will have large effect of decreasing in demand as it have a large number of substitute goods.
MARKET SIZE: if population of the country increases or if there is a rise in number of people in certain age group then the demand for noodles wills increases for sure. Simply the higher number of buyers leads to increases in demand. In case of Maggi in all the age groups there is no offence for Maggi noodles, everyone can eat so that demand for the product will increases day by day vice versa.
PRICE EXPECTATIONS: at the point when there is a price change for a chance if the people expect to increase the price of the good increase shortly, then they are more likely to buy it really fast which leads to increase the demand for the product.to fulfill BestBuys customers expectations there will be some customers which needs to buy bulk quantities, therefore if the price of noodles decreases for one packet also then the customers will minimize their purchasing rate and wait to fall the price gets lower.
TASTES AND PREFERENCES: An important factor which determines the demand for a good is the tastes and preferences of the consumers for it good for which consumers tastes and preferences are greater, its demand would be large and its demand curve will therefore lie at a higher level. Peoples tastes and preferences for various goods often change and as a result there is change in demand for them. In case of noodles if there is a hard core customer who prefer the Maggi noodles even the price of the noodles increases, the demand will remains the same. But if the customer has no special choice of the product then the price increases and demand for the product will go down. When the goods and service comes into the fashion the demand curve will shift to right side and when the fashion goes and when there is a new product then the again the curve will shift to left.
EFFECTIVE ADVERTISEMENTS: demand of the product is also affected by the advertisments.effective advertisements are helpful in many ways such as: catching the attention of the buys consumers, informing about the availability of the product, perusing them to buy the product, how easy the product is to use. Most of the consumers are highly attached by the effective advertisements. Also if the advertisement is endorsed by their favorite celebrity. This result the increases in demand.in Maggi they usually targeting on working womens, kids and students those who are going for abroad to study. So its demand will increase.
CHALLENGES TO OVERCOME FROM ABOVE, MENTIONED ISSUESTASTE AND PREFERENCES: Maggi is a market leader in noodles category with highly brand loyalty. Below are the competitors of Maggi noodles top ramen, foodless and mami.maggi offers lots of flavors and varieties, apart from that it gives a tasty and healthy snacks which can be prepared in two minutes. Due to the controversy in 2015 Maldives FDA has been receiving reports from countries saying that Maggi noodles have high levels of Lead and Monosodium Glutamate. After the officials said that the product is unsafe. Nestle ha stated that the product is safe. But unfortunately due to confusion in the market there was less therefore they have to resort again everything.
INCOME: according to market analysis in Maldives income is categorized into three different parts which is high income earners, middle income earners and low income earners. Therefore Maggi is introducing premium product in that they will add high value of nutrients and more vitamins will be added so that people old aged people can also eat To make the product affordable they had to tone down their prices but the volumes the product generates has helped the company in maintaining a healthy profit. middle and low income class customers, Maggi offers different sizes of packets at various prices so that the customer can buy as per budget.
CHANGE IN THE PRICE OF RELATED GOODS: in this determinant Maggi will focus to advertise their product more .nowadays Maggi has lots of competitions and because of that they Maggi is going to do market survey to know about the customers expectation in that they will check the price of the related goods and the features of the product and by analyzing that they will introduce new product so that the demand for the product will go up.
MARKET SIZE : due to large number of market size Maggi has decentralized process of distribution to face their competitirs.the company offers the clear distribution f margin of 6%.in this scheme the distributor makes an advanced payment and suppliers sell the product to the retailor on credit.
EFFECTIVE ADVERTISEMENTS: However population is increasing day by day to attract kids and womens best buy can put a stall in kudakudhinge bageechaa and can offer toys utensils can offer as gifts to boost the demand. Because of the negative word of mouth the brand of Maggi went down to attract more customer Maggi can go for brand extension. Also to compete with the competitors they tie up more restaurants.
CONCLUSIONThe research shows that the consumers buying behavior is a biggest factor in the demand and supply of any product. Also the brand name of Maggi has gained its profit for overs in Maldives.in customer view they always wants to buy a product which includes ingredients which are good for health. However demand for Maggi went down due to the false new in the market therefore they are still making every effort to win the customer trust and soon they regain their position in the market.