The company’s principal activities are to manufacture & distribute food products . Food products include milk & nutrition, beverages, coffee, blends, tea, cream, chocolate, cereals & cooking aids. The company’s plants are located at Moga, Samalkha, Nanjangud, Choladi, Ponda, Bicholim & Pantnagar . The products of the Company are exported to Russia, Nepal and Bhutan .
MAGGI offers a wide range of specialty Indian Sauces which are relished for their unique taste. Available in the following delightful variants: Tomato Ketchup, Tomato Sauce, Tomato Chilli, Masala Chilli, Chilli Garlic, Tamarina, Tomato Chatpat, Tomato Pudina and the all-time-favourite MAGGI Hot & Sweet Sauce.
Maggi was the upstad newcorner who came in with a loud aggressive national burst. It did not come in with one, but with a range of sauces in order to increase market share and axpand the market by offering more usage occasions, bring consumers with different needs into the Maggi Sauces fold and weaning away users of different brands to Maggi. From a market share of 14% in 1985, Maggi Sauces now enjoys a share of about 50% of the market.
The success of Maggi can be most importantly attributed to year-round media activity, and the humorous "it's different" campaign on Maggi Hot and Sweet sauce - this campaign had such an impact that it literally promoted the entire range of Maggi Sauces.
There has always been a presence of good additives in the Indian household. The traditional Indian main meal has chutneys and pickles as additives while the quasimeals, where snacks or ready to eat food is consumed, use sauce as an additive. Prior to Maggi Sauces launch in 1985 the scenario of the branded and unbranded sauces market was such that the Tomato ketchup was most popular in the market with 80% market leaving the remaining 20% for others.
Sauce is a product that cuts across all age groups and regions and therefore broadly the target group was All Adults with Rs. 2500/-+ MHI, in Class I+ towns.
Who buys the Product, How and When ?
Sauces follow two purchase patterns, In regular sauce households, it is purchased at the beginning of every purchase cycle when monthly non-durable items are bought. The second group is of those households where sauce has an occasional use, it is usually an impulse puchase, from the local retailers and the main purchaser is the housewife with key influencers being children.
The users can be further subdivided between Tomato Ketchup and specialty sauces such as Hot and Sweet. Tomato Ketchup is for all members of the family (MHI : Rs. 2500+) with the larger part of the consumption coming from children. The purchaser is however the housewife. Hot and Sweet is targeted at the young adult, modern, with MHI : Rs. 2500+. The purchaser could be the housewife or the male/female 'adult'.
Users attitude to category/brand
Tomato Ketchup is generally seen as fun to eat, adds flavor to all kinds of food, and is convenient to use. Users show low involvement, low brand loyalty, are very sensitive to price, appreciate 'premium' quality of Maggi, but are unwilling to pay very large price premium. On the other hand for Hot and Sweet, the frequency of consumption is lower with high band loyalty, greater involvement, less price sensitivity and the user appreciates the unique taste and fun image of Maggi Hot and Sweet.
cost accounting is that part of management accounting which establishes budget and actual cost of operations, processes, departments or product and the analysis of variances, profitability or social use of funds.
Job Costing - This is done, as the name suggests, on job works which may differ from case to case basis. By giving different job numbers and debiting the costs on the jobs, cost of each job work can be ascertained.
Contract or Terminal Costing - This is done for large contracts. Such businesses need not maintain costs separately as financial accounting will indicate the costs and expenses. In such contracting firms, the cost sheets are maintained for individual contracts. In the absence of expense budgets, inefficiencies are often hidden in such cost sheets.
Process Costing - This is useful when a product passes through various processes, yielding different by products of commercial value. This is useful in industries like refineries.
Standard Costing: Standard costing means assigning the expected, budgeted costs to the goods manufactured, the goods in inventory, and the goods sold. In other words, the amounts assigned are the costs that should occur when manufacturing products.
Marginal Costing: It is a costing technique where only variable cost or direct cost will be charged to the cost unit produced. Marginal costing also shows the effect on profit of changes in volume/type of output by differentiating between fixed and variable costs.
Activity Based Costing :Activity based costing (ABC) assigns manufacturing overhead costs to products in a more logical manner than the traditional approach of simply allocating costs on the basis of machine hours. Activity based costing first assigns costs to the activities that are the real cause of the overhead. It then assigns the cost of those activities only to the products that are actually demanding the activities.
Rs (In Thousands) Rs (In Thousands) PARTICULARS 1239442 Power & fuel Add: FACTORY OVERHEAD 19150358 PRIME COST Direct expense 2454121 Direct labour 2784775 Packing material consumed 13911462 (1240513) Less: Closing stock 14391229 Add: Purchase 760746 Opening stock Direct Raw materials: DIRECT COST
21794067 Works cost 2643709 968600 Other expenses 27114 Depreciation 112682 Consumption of store & spare parts 173762 Workers training expenses 42338 General 30507 Building 49264 Plant & machinery Maintenance & repairs:
966605 348579 Employees Welfare 22344 Insurance 173762 Rate and Taxes 181615 Rent 153645 Staff Welfare Expenses 86660 Contribution to PF and other funds ADMINISTRATIVE EXPENSES 21754546 (39521) 424279 Less: Closing Stock (WIP) 384758 Opening Stock (WIP)
36471832 Total Sales 10990836 Profit 25480996 TOTAL COSTS 3330427 1722059 Advertisement 1608368 Freight Transportation and distribution SELLING AND DISTRIBUTION 22150569 COST OF GOODS SOLD (570582) 1977141 Less: Closing Stock (FG) 1406559 Opening Stock (FG) 22721151 COST OF PRODUCTION