The Product Brand Line Of Maggi Marketing Essay

Part 1


In 1863, Maggi was founded by Julius Michael Johannes Maggi in Switzerland. Julius Maggi developed a flavours formula to bring added taste to foods. This signified the establishment of the Maggi brand and its own products that is convenient products.

In 1882, due to his famous for nutrition-oriented approach, your physician called Dr. Fridolin Schuler and the Swiss Administration fulfilled up with Julius Maggi and advised him about the problem of the labouring classes who have been experiencing malnutrition. From then on, he was asked to seek for a solution in order to increase the nutritional beliefs of meals. Therefore, he created the necessary protein based vegetable food products, that have been two instant pea soups and an instantaneous bean soup. These two products were quick to be prepared, easy to be digested and sold in a minimal price. The products were successfully overcame the problem of woman who have been lack of time in preparing foods as increasingly more woman were working outdoors. By the convert of the century, the Maggi company also produced other styles of products such as bouillon cubes, sauces and flavorings.

In 1947, Alimentana S. A. , the manufacturer of Maggi seasonings and soups merged with Nestle to form Nestle-Alimentana S. A. Today, MAGGI has been offering high quality, convenient, impressive, and wholesome products. MAGGI products help us to get ready nutritious and scrumptious meals. Its bouillons, soups, seasonings and sauces are of help while preparing and add flavour into our food.

The product brand type of MAGGI

Culinary products is the product brand range of MAGGI. Now, in the entire year of 2013, the merchandise made by MAGGI fundamentally can be classified into four different organizations which can be noodles, MAGGI flavour world, sauces and light dishes. Among each one of these products, different types of flavours were provided so the consumers have a variety of choices and select what they need predicated on personal needs and favourites.

The stand below confirmed all the merchandise produced by MAGGI:




1. MAGGI Hot Bowl Instant Noodle

2. MAGGI Hot Glass Instant Noodle

3. MAGGI 2-Minutes Noodles

4. MAGGI Mi-Goreng

MAGGI flavour world

1. MAGGI Stock Cubes


3. MAGGI Liquid Stocks



1. MAGGI Oyster Sauce

2. MAGGI Seasoning

3. MAGGI Red Sauce

Light meals

1. MAGGI Soup

2. MAGGI Porridge

The MAGGI 2-Minutes Noodles Curry

MAGGI 2-Minutes Noodles was initially created in India by Nestle India Small in 1982 and become a market leader in selling instant noodles. Therefore, it becomes a well-known instant noodles brand among all the consumers and many people call noodles as "Maggi".

MAGGI 2-Minutes Noodles Curry is one of flavour in the series of MAGGI 2-Minutes Noodles. It really is bought from a load up of five. The portions size of every small load up is 79grams for one serving. The noodle is made up of 48. 6 grams of carbohydrate per portion that provides the power that people need. It is a convenient product that can be easily within any market. The package of the product was modified every once in awhile. The latest product packaging bears the new 'Necessary protein dari Gandum' seal as each load up MAGGI 2-Minute Noodles will serve as way to obtain protein from wheat.

MAGGI 2-Minutes Noodles Curry - Second-rate Product

Inferior products will be the products for which there is a direct relationship between changes in income and its demand curve.

Based on our understanding, we categorized MAGGI 2-Minutes Noodles Curry is really as a substandard product because the purchasing rate of the consumer is basically based on the income of the consumers. When the income of consumers goes up, the demand will be reduced and the quantity of buying the product will become less as they'll choose to buy a more value established product that deliver top quality. Conversely, the demand of consumers will increase when there's a semester in their income.

Complement and alternative goods for MAGGI 2-Minutes Noodles Curry

Complementary goods are the goods that jointly consumed with MAGGI 2-Minutes Noodles Curry. The supplement goods are as follow:



fish balls

crab meats





bell peppers


Whereas, alternative goods are the goods that competes with MAGGI 2-Minutes Noodles Curry for consumer purchases. The alternative goods are as follow:

Sajimee mee curry flavoured instant noodles

Ibumie Mi curry flavoured instant noodles

Adabi curry flavored instant noodles

Mamee curry flavoured instant noodles

Cintan curry flavoured instant noodles

Tesco choice curry flavoured instant noodles

Market composition of MAGGI 2-Minutes Noodles Curry - Monopolistic Competition

Part 2

Comparison of the price of MAGGI 2-Minutes Noodles Curry with _________________

Based on the study within Tesco, Kampar, Perak, MAGGI 2-Minutes Noodles Curry are sold at the price tag on RM4. 39.

Part 3

Advantages and down sides for MAGGI company of being monopolistic competition firm


Easy Admittance and Exit

Monopolistic competition is an easy entry and exit market because this market face low obstacles to entry Unlike a monopoly market, MAGGI easily came into into a monopolistic competition market and begin the business enterprise because the products produced are not sole control of any other company. Therefore, MAGGI can draw in the consumes to buy its products so long as they can meet the consumers' needs. Besides that, while getting into the forex market, MAGGI will not face much problem on federal government franchises and licenses as well as the patents and copyright as the company will not be restricted to enter into this market.

Price takes

MAGGI gets the authority to set the price for its products in order to increase its revenue. For example, MAGGI can raise the value when they improve the quality of products to the consumers. The business also can improve the selling price when the insight price becomes higher so that they will still earn a continuous revenue but not facing a damage. Unlike in the perfect competition market, the consumers might still choose to buy its products even though the price has been increased as long as the products can gratify the consumers.

Differentiated products will draw in buyers to stay loyal

The differentiated products of MAGGI will draw in more buyers and maintain the existing consumers to stay loyal because the products have the unique features compare to others. Normally, the consumers will not easily switch to some other brand when they are seduced by its special characteristic of the merchandise. This will cause a constant revenue because the consumers might take in the products constantly for an extended time period if they do not find any replacement that is better than the current consuming products.


Many competitors

Since monopolistic competition market is straightforward to entry and exit, many companies might enter into this market and so MAGGI has to face many challengers. For example, the competitors for MAGGI are Sajimee, Ibumie, Adabi, Mamee, Cintan and Tesco. The consumers will certainly switch to buy the same kind of products from another brands if indeed they think it is worthwhile to buy it from other brands alternatively than from MAGGI. Therefore, MAGGI has to consistently observe the strategies of its rivals so that MAGGI can make suited action to handle the competitor and make its customers to stay loyal.

Higher cost and expenses

Since MAGGI face a huge numbers of competitors, it is compulsory for a monopolistic competitor to take suitable strategies to appeal to more buyers. A great way is via advertising its products. We can notice that MAGGI advertise its products through tv set and do many different types of campaign such as buy one get one free, give food assessment to the customers, give discounts and organise a contest for the consumers and give out another thing as prizes. All these advertisement and campaign required a great deal of cost and bills.

Need to produce differentiated products

In order to compete with other close substitutes, MAGGI has to come up with differentiated products, which is the merchandise which may have real or apparent dissimilarities with other substitutes. MAGGI must be creative and innovative enough to make their product more distinctive and differentiate their products from other competitors in order to entice more potential buyers and also maintain steadily its current consumers. MAGGI also offers to do certain research and improve its products from time to time to make its products more unique no subject is on the product quality, price or product packaging.

Earn zero-economic income in long-run

Unlike a monopolist, MAGGI won't earn an economical profit but earn a zero-economic in long-run. In long-run, more and more firms will enter into this market framework and the some of the existing market talk about of MAGGI might be studied away by those new organizations. This shows the decrease in the consumers' demand. Therefore MAGGI will do more advertising to capture the market show. This will brings about the increase of the long-run average cost. The loss of demand and increase of long-run average cost will continues in long-run until MAGGI makes a zero economic-profit.

Advantages and cons for a person of buying something under monopolistic competition market


More innovative product

In the monopolistic competition market, there are numerous competitors and purchasers. In order to attract a huge size of customers, the business must produce more impressive product continuously so that they can compete with other rivals and survive on the market place. MAGGI as monopolistic competition firm will choose to create more different flavour of instant noodle rather than just produce one type of noodle since it needs to fight against massive of competition forces. Therefore a customer can enjoy having different types of MAGGI products and also have more choices.

Comparable prices

There are extensive retailers in the monopolistic competition market. The clients can compare the costs of the same kind of product among different producers in order that they could choose to choose the products that offered within an affordable price. For instance, consumers can choose either to buy MAGGI instant noodles or other brands of instant noodles like Mamee and Mi Sedaap.

Convenience for clients to know the facts of the product

Sellers in the monopolistic competition have a tendency to create more adverts to deliver the information about their products to the general public and also create a more robust position in consumers' brain. Usually the detailed information about the MAGGI products such as the new flavour, price, and places that are available to buy the products. The info given will provide convenience for consumers in the process of choosing and purchasing the merchandise.


The price of products may not matched with the grade of products

The sellers in monopolistic competition market are free to set the price tag on products. Owner might set a higher price to earn much more revenue however they do not produce the merchandise with higher quality. Therefore the consumers are forced to choose the products expensively. For instance, if MAGGI might produce the same instant noodles however they improve the price to a higher level. Therefore, the consumers have to buy it at a pricey price nevertheless they still benefit from the same quality of instant noodles.

Negative impact of advertising

In monopolistic competition, the sellers spend big money in advertising their products. It really is a benefit for the consumers to learn more about the product but it also has negative effect on customer supremacy. Customers are going to be manipulated by the advert and about what they want. For example, customers become enticed over the perception of differentiation, they believe that information in the advertisements and buy the product without compare the price or quality.

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