Companies that have stuck their forks into the Rs 1,200-crore instant noodles market are now under pressure to raise prices due to rising input costs. But since nobody wants to abandon the Rs 10 price point, some are reducing grammage.

Nestle recently reduced the grammage of Maggi instant noodles (masala) from 90 grams to 85 grams. Company spokesperson Himanshu Manglik said noodle packs come in the 60-90 gm range, all for virtually the same price. “Despite the marginal reduction in grammage, Maggi ensures balance of high quality and nutrition,” he said. Maggi is the market leader with a share of about 80%.
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The consumers resent price rise but they hardly notice some weight loss in pkts. Thus the strategy to reduce pkt weight.

G. K. Ajmani Tax consultant
http://gkajmani-mystraythoughts.blogspot.com/

It is a nice idea to reduce quantity rather than increasing the price.

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