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 PRODUCT HISTORY  

•  The company originally started in Switzerland in 1885, when Julius Maggi took over his ather!s mill"

• Maggi was the #rst to $ring protein%rich legume meals to themarket, and ollowed up with a ready%made soup $ased onlegume meals in 188&

• 'n 1()*, Maggi!s holding company merged with the +estlcompany.

•

+estle is a Swiss company, ounded in 18&& $y -enri +estle"• +estle market its products in 1./ countries across the world"

• Maggi has $een +estl!s 0agship culinary $rand not only in'ndia, $ut glo$ally as well"

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LAW OF DEMAND

2emand or a commodity increases whenits price decreases and alls when its pricesrises other things remaining constant"3

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4oncepts Elasticity 2emand

Two 6aria$les are considered whilemeasuring the elasticity o demand 7% 2emand

2eterminants 2emand 

Elasticity 2emand percentage changein 9uantity demanded  percentage change indeterminant o demand

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Types Elasticity 2emand

Demand

PriceElasticity

Cross PriceElasticity

Income

Elasticity

AdvertisementElasticity

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:rice Elasticity 2emand

The price elasticity o 2emand may $ede#ned as the ratio o the relative changein demand and price varia$les"

 

e = percentage;proportional change in9uantity demanded  percentage;proportional

change in price

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Types :rice Elasticity

PriceElasticity

PerfectlyElasti

c Perfectly

Inelastic

Relati

velyElasticRelati

velyInelast

ic

Unit

aryElastic

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:erectly Elastic

4onsumers haveinde#nitedemand at a

particular priceand none at allat an evenslightly higherthan this givenprice, demand is:E<=E4T>?

E>@ST'4

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:erectly 'nelastic

Ahen the demandor a commodityshows no responseto a change inprice; whateverchange in price,the demand

remains same, it iscalled :E<=E4T>?E>@ST'4

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<elatively Elastic

Ahen the

proportion ochange in the9uantity

demanded isgreater than thato price, the

demand is said to$e <E>@T'6E>?E>@ST'4

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<elatively 'nelastic

Ahen the

proportion ochange in the9uantity demanded

is less than that oprice the demandis considered to $e

<E>@T'6E>?'+E>@ST'4

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Dnitary Elastic

Ahen theproportion ochange indemand is

eactly the sameas the change inprice, the

demand is said to$e D+'T@<?E>@ST'4

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Measurement :rice Elasticity

MeasurementOf PriceElasticity

Percentage/Proortionate

Met!od

"eometric/Point

Met!odArc Met!od

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:oint;Feometric Method

 This methodattempts tomeasure the

priceelasticity odemand at aparticularpoint on

demand

:oint Elasticity >ower segment o demandcurve $elow the point  Dpper segment o demandcurve $elow the point

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@rc Elasticity 2emand

@rc Elasticityo 2emandmeasures the

elasticity atthe mid point$etween twopoints on acurve

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'ncome Elasticity 2emand

The income elasticity is de#ned as a ratiopercentage or proportional change in the9uantity demanded to the percentage or

proportional change in income"

  'ncome Elasticity percentage changein 9uantity demanded  percentage

change in income

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4ross Elasticity 2emand

The cross elasticity o demand reers to thedegree o responsiveness o demand or acommodity to a given change in the price

o some related commodity"

4ross Elasticity 2emand

:roportionate;percentage change indemand or

:roportionate;percentage change in price

o y

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=actors 'n0uencing Elasticity 2emand• +ature o commodity•

@vaila$ility o su$stitutes• +um$er o uses• 4onsumers income• -eight o price and range o price change

• :roportion o ependiture• 2ura$ility o the commodity• -a$it• 4omplementary goods•  Time• <ecurrence o demand• :ossi$ility o postponement

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 Advertisement elasticity

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@pplication 'ncome Elasticity

>ong term $usiness planning

Market strategy

-ousing development strategies

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 Thank you