Yippee NoodlesProject Report Submitted to: Dr. H. Gayathri Submitted by GROUP 9 SECTION ‘C’ BANALI. KC (13136) DINESH. MR (13141) J. ADITYA (13146) SRUTHI MADADI (13151) MOHNISH MISHRA (13156) 12 5.4. 13 1 .2 Market share…………………………………………..3 1.5 Opportunities in Indian Noodle Market………………4 2.1 Maggi…………………………………………………10 3.2 STP…………………………………………... Competitor Analysis………………………………………….11 3.4.3 Sunfeast………………………………………………...1 SWOT Analysis…………………………….2 1. ITC……………………………………………………………5 2.4 Yippee Noodles……………………………………… 8 2..2.3 Trends in Noodles Industry………………………….4 1.2 Diversification timeline………………………………6 2.1 Instant noodle industry in India……………………….1.5 2. Introduction……………………………………………….10 3....2 1.11 3.4 Key players in Noodle Market………………………...9 2.7 2.Marketing Management Yippee Noodles Section C.. 12 4. Bibliography………………………………………………….4.3 1..1 4Ps……………………………………………8 2..1 History………………………………………………. Group 6 TABLE OF CONTENTS 1.1 SWOT Analysis……………………………. Recommendations…………………………………………….2 Foodles……………………………………………….10 3.3 SWOT Analysis……………………………. Maggi is going to have a tough time as ITC is known for its ‘in the eye’ kind of advertising campaigns and extensive supply channel. ITC claims to grab 10% of the market by the year 2012 for which they rely on their current network. 2 . the Indian consumer is a lot more open to the "instant food" categories and is far more demanding of more choices now than he or she ever was before. Demand for the product is driven by convenience. But Maggi’s domination is facing a tough competition in the market today due to the entrance of brands like Hindustan Unilever’s Knorr Soupy noodles. It is one of the first ready-to-eat foods launched widely in the global food industry and now it has successfully become an important part of modern lifestyle. Group 6 1. instant noodle has become a daily product in majority of the nations around the globe.1 Instant noodle industry in India Instant noodles have become one of the world’s most popular food items owing to its versatility and convenience. the market is expected to reach INR 3.300 to 1. ITC’s Sunfeast Yippee Noodles. According to estimates.500 crore by 2015 clocking a CAGR of 20%. The market is dominated by Nestlé’s brand – Maggi.000-3. Nestle is the market leader with 58. Introduction 1. Indian instant noodle market is estimated at INR 1. GlaxoSmithKline’s Foodles.3% market share in the overall category and over 80% in the pure noodles category. According to industry analysts. With widespread acceptance of the product. Nissin’s Top Ramen and Big Bazaar’s Tasty Treat. It was the first noodle brand to be introduced in India in mid 1980s. low cost and product variety.600 crore (USD 300 – USD 350 million). With ITC entering the market.Marketing Management Yippee Noodles Section C. Instant noodles market has undergone many innovations in recent years which have led to the introduction of multiple flavours of the product in the market suiting to local preferences. players are stressing on health and wellness aspects of their products. Stress on health and wellness: As on all other food categories. Addressing rural market: Noodles are primarily consumed in urban India and to expand this market companies such as Nestle have introduced small sized and low cost products to address the demand of rural market. Tasty Treat increased its variants from two to five. Traditional flavours still dominate: Masala. Capital Foods and Hindustan Unilever launching new products in the market. Maggi has launched an extensive campaign with their new product vegetable multigrain noodle. 2. Foodles is stressing on the health aspect of its products. New product launches and extensive marketing: All players new or old have been busy launching new products and marketing campaigns.2 Market Share 1. chicken and tomato are most popular flavours in the market 5. Group 6 1. The success of this effort is still to be seen.Marketing Management Yippee Noodles Section C. Maggi launched Atta noodles and multigrain noodles to woo customers while Glaxo’s Foodles also stresses on the multigrain aspect of their product 4. ITC (Sunfeast Yippee noodles). Similarly. Private label brands such as Tasty Treat by Future Group (Big Baazar retail chain) have also been launched an it is expected that many more private label brands may hit the market. Increasing competition: Competition in instant noodle category has intensified with players such as GlaxoSmithKline (Horlicks Foodles).3 Trends in Noodles Industry 1. 3. 3 . Health and wellness theme: Health and wellness theme based packaged food is gaining popularity in India and the market of such noodles is still open as traditional player Maggi is not associated with “health” but with convenience and taste. Capital Foods Ltd. very few local players have a sizeable presence.Marketing Management Yippee Noodles Section C. Future Group (Tasty Treat) 1. Ltd. GlaxoSmithKline Consumer Healthcare (Foodles) 4. CG Foods India Pvt. Low cost products with appropriate marketing can open up this huge market 4 .(Wai Wai) 7. Hindustan Unilever (Knorr Soupy Noodles) 3. ITC (Sunfeast Yippee noodles) 6. Group 6 1. 2.4 Key Players in Indian Noodle Market The instant noodle market is dominated by MNCs. Some of the key players in the market along with their brands are: 1. Nestle (Maggi) 2. (Ching's Secret) 5.5 Opportunities in Indian Noodle Market 1. Huge Rural market: rural India where close to 60% of Indian population resides is a huge consumption market virtually un-penetrated by any player. Limited in 1974.The Company got rechristened as 'ITC Limited' after the full stops got removed with effect from September 18. in a study conducted by Brand Finance and published by the Economic Times. ITC is rated among the World's Best Big Companies. and was rechristened to India Tobacco Company in 1970 and then to I. The first six decades of the Company's existence were primarily devoted to the growth and consolidation of the Cigarettes and Leaf Tobacco businesses.1 History ITC was founded on August 24. but later it became fully independent.T. ITC has a wide range of businesses.C. Group 6 2. The company witnessed the beginnings of a corporate transformation that would usher in momentous changes during the Seventies. It is also ranked among India's Most Respected Companies by Business World and among India's Most Valuable Companies by Business Today. ITC ranks among India's `10 Most Valuable (Company) Brands'. 2001. Asia's 'Fab 50' and the World's Most Reputable Companies by Forbes magazine. Now ITC is one of India's foremost private sector companies with a market capitalisation of over US $ 34 billion and a turnover of US $ 7 billion. 5 .Marketing Management Yippee Noodles Section C. ITC 2. ITC also ranks among Asia's 50 best performing companies compiled by Business Week. 1910 as Imperial Tobacco Company of India Limited and shares ancestry with Imperial Tobacco of the United Kingdom. While ITC is an outstanding market leader in its traditional businesses of Hotels. Group 6 ITC has a diversified presence in FMCG (Fast Moving Consumer Goods). ITC Hotels . 2.Marketing Management Yippee Noodles Section C. Since then ITC's Hotels business has grown to occupy a position of leadership. In 1975. Paperboards. Personal Care and Stationery. superior brand-building capabilities and effective supply chain management. Chairman Y C Deveshwar calls this source of inspiration "a commitment beyond the market". Packaging. As one of India's most valuable and respected corporations. Now it extends to 10 states covering over 4 million farmers. Welcome Hotels. ITC's Packaging & Printing Business was set up as a backward integration for ITC's Cigarettes business. In 1990. leveraging its agri-sourcing competency. ITC spun off its information technology business into a wholly owned subsidiary. through the 'Choupal Pradarshan Khet' initiative. Chennai).2 The diversification timeline of ITC In 1925. ITC chose the Hotels business for its potential to earn high levels of foreign exchange. In 1979. In 2000. with over 100 owned and managed properties spread across India under four brands namely. ITC also entered the Lifestyle Retailing business with the Wills Sport range of international quality relaxed wear for men and women. ITC's unique and now widely acknowledged e-Choupal initiative began with soya farmers in Madhya Pradesh. Agri-Exports and Cigarettes.Luxury Collection. Paperboards & Specialty Papers. Today ITC Infotech is one of India's fastest 6 . the strategic forays into new businesses are expected to garner a significant share of these emerging high-growth markets in India. Also. it is rapidly gaining market share even in its nascent businesses of Packaged Foods & Confectionery. Packaging. ITC's diversified status originates from its corporate strategy aimed at creating multiple drivers of growth anchored on its time-tested core competencies: unmatched distribution reach. ITC set up the Agri Business Division for export of agri-commodities. In 2000. the Company entered into Hotels business with the acquisition of a hotel in Chennai which was renamed as 'ITC-Welcome group Hotel Chola (now renamed My Fortune. ITC entered the Paperboards business by promoting ITC Bhadrachalam Paperboards Limited. Fortune Hotels and Welcome Heritage. Agri-Business and Information Technology. the current chairman of ITC Limited is Mr Yogesh Chander Deveshwar. ITC is widely perceived to be dedicatedly nation-oriented. Hotels. With its headquarters located in Kolkata. In 2000. Overtime. ITC Infotech India Limited. create tourism infrastructure and generate large scale direct and indirect employment. the agri services vertical has been focusing on improving productivity of crops while deepening relationship with the farming community. Branded Apparel. ITC's foray into the Foods business is an outstanding example of successfully blending multiple internal competencies to create a new driver of business growth. ITC now markets popular safety matches brands like iKno. Armenteros. providing outsourced IT solutions and services to leading global customers across key focus verticals . In 2001. Media & Entertainment. ITC entered the confectionery and staples segments with the launch of the brands mint-o and Candyman confectionery and Aashirvaad atta (wheat flour). In 2002. ITC forayed into the Biscuits market with the Sunfeast range of Glucose.Marketing Management Yippee Noodles Section C. ITC also initiated a foray into the popular segment with its men's wear brand. High quality married with exciting innovations has helped drive this category. Engineering Services. In 2010.3 Sunfeast In July 2003. Mangaldeep and Aim. In 2003. John Players. Hospitality. Dark Fantasy Choco Fills has wowed the Indian consumer with its innovative centre-filled format and highquality packaging. In 2003. In 2005. In 2010. In addition. 2. contentment. the launch of the Dream Cream range of biscuits in two exciting and innovative dual cream formats further reinforces ITCs commitment to continuously delight the consumer. Sunfeast Biscuits straddle all segments of the market led by Dark Fantasy at the premium end. Retail. the Classmate range of notebooks was launched. ITC entered the fast growing branded snacks category with Bingo. In 2002. It began with the introduction of 'Kitchens of India' ready-to-eat Indian gourmet dishes. satisfaction and pleasure. Consumer Packaged Goods (CPG). Armenteros cigars are available exclusively at tobacco selling outlets in select hotels. ITC entered the Personal Care Business. Sunfeast has well-established presence in almost all categories of biscuits and is also a key player in the pasta and instant noodles segments. In a span of 9 years. Manufacturing. In 2002. In seven years. Group 6 growing global IT and IT-enabled services companies and has established itself as a key player in offshore outsourcing. Life Sciences and Transportation & Logistics. Marie and Cream Biscuits. 'Fiama Di Wills'. fine dining restaurants and exclusive clubs. the Personal Care portfolio has grown under 'Essenza Di Wills'. in the Indian market. Sunfeast's brand essence connotes happiness. In 2007. ITC's philosophy of contributing to enhancing the competitiveness of the entire value chain found yet another expression in the Safety Matches initiative. ITC launched its hand rolled cigar. Travel. Sunfeast was introduced in the market as the Company entered the biscuits segment. 7 . 'Vivel' and 'Superia' brands which have received encouraging consumer response and are also being progressively extended nationally.Banking Financial Services & Insurance (BFSI). ITC launched Sunfeast Yippee! to enter the Indian instant noodles market. Price.₹ 10 for 85 gram pack and ₹ 40 for 320 gram pack to match the competitor's price. orange and brown colours on covers Contents .Using combination of red.ITC has a very strong distribution network for their cigarette brands and they are using this network for Sunfeast biscuits also. Group 6 2. They collect the expired goods four times a year and destroy them. The company says the brand is now available in nearly 1.Marketing Management Yippee Noodles Section C. 2. the advertisements released by Yippee has the common tagline “Its better no?” Some of the popular ones focus on the benefits of Yippee over Maggi such as: The Punishment ad: in which the roundness of the noodles is emphasized The Cricket ad: The non-lumpy characteristic is highlighted The Salon ad: where the choices of Masala is brought forth The Genie ad: incorporates all the USPs of Yippee.1 4P’s Product – It is a product that is different in terms of • • • Packaging . Till date.4.Which is round cake instead of the rectangular cakes as used by other brands Variants – classic masala. yellow. The benefits received by the retailers depend upon their sales volume and also the location of their shops. They keep their goods on constant move from low sales area to high sales area. 8 .8 million outlets. Three years of exhaustive developmental work has gone into the creation of Sunfeast Yippee! They banked on the wide expanded distribution network of ITC and used the Umbrella branding strategy and they also utilized the brand name of ITC. magic masala and Chinese masala. Place . Promotion – The company is focusing very heavily on the benefit positioning concept in their ads focusing on the benefits or the advantages it has over Maggi as a competitor.4 Yippee Noodles In the year 2010 ITC expanded its portfolio by entering into instant noodles category by introducing Sunfeast Yippee! Instant Noodles. first time users (regular) Usage status: Heavy users (urban).Marketing Management Yippee Noodles Section C.2 STP Segmentation: Demographic: Urban. Positioning: Benefit Positioning Concept. Semi-urban. 9 . rural areas Behavioural: Regular users (urban). light (rural).4. Group 6 2. medium (semi-urban) Targeting: Children from upper and middle class. 2. Local Players. 4. Use of umbrella branding. Group 6 2. Weakness: 1. Maggi’s strong market presence. Low product visibility. Entrance of competitors like Yippee. Wide distribution network. Rural noodle market is growing twice the rate of urban market. 2. 10 .Marketing Management Yippee Noodles Section C. Opportunities: 1.1 Maggi Nestle India Ltd (NIL) the Indian subsidiary of global FMCG player introduced Maggi brand in year 1982. Threats: 1. Attractive packing. Foodles and local players pose a challenge to Maggi however they see opportunities in the rural market which is yet to be tapped into.4. Maggi occupies nearly 80% of noodles market share in India. Market is expected to reach 3000-3500 crore by 2015. Well established image of ITC. Competition from other private players.3 SWOT Analysis Strengths: 1. Competitor Analysis 3. Its distribution channel is also wide and it has developed many innovative flavors for the Indian taste buds. 3. 2. Maggi is the market leader and has a strong brand loyalty among its consumers. Being the first mover NIL could retain its market leader position till date. 3. NIL created entirely new food category-instant noodles. It has an effective advertising strategy as well. 3. 1.1 SWOT Analysis Strengths: Weakness: Maggi’s new innovative products has all failed Market Leader Brand Loyalty Distribution Channel Innovative flavors for Indian taste buds Advertising strategy Opportunities: Threats: Competition from other private players. It launched the product under the popular Horlicks brand. 11 . named ‘Foodles’ It was launched in South India in 2009 and later spread out to Eastern parts of the country in 2011. They occupy a market share of 4% and they positioned the brand by focusing on health (the more nourishing noodles). 3. The competition in the market is fierce as there are atleast two national players in Maggi and Yippee and regional players coming up.2 Foodles: Fast moving consumer goods (FMCG) company GlaxoSmithkline Consumer Healthcare announced its entry into the instant noodles segment.Marketing Management Yippee Noodles Section C. Market is expected to reach 3000-3500 crore by 2015. Foodles comes from a background of healthcare and they have innovative packaging. Rural noodle market is growing twice the rate of urban market. Group 6 3. They have followed Umbrella branding strategy. Local Players. They lack experience however and need to gain traction in Northern India as it was launched in South India first and then branched out to the Eastern regions of the country. 3. Recommendations Quality improvement and image advertising as compared to market leader. Local Players. The premium and super premium segments according to industry experts are believed to be growing at around 30% annually. 12 . Sunfeast should provide better benefits to wholesalers and retailers as Nestle is providing higher margin to retailers to compete with. So sunfeast can come up with new varieties in premium segment.Marketing Management Yippee Noodles Section C. Opportunities: Rural noodle market is growing twice the rate of urban market. Market is expected to reach 3000-3500 crore by 2015. Group 6 Its major competitors include the market leader Maggi and upcoming brands like Yippee while local brands like Wai Wai can also cause a problem. They can use the opportunities in the rural market which is yet to be tapped into.2. 4.1 SWOT Analysis Strengths: Weakness: High Price. Getting the advantage of having healthcare background. Innovative packaging Umbrella Branding Threats: Competition from other private players. A.. J..Marketing Management Yippee Noodles Section C. Group 6 5. (1974). P. Sengupta.org/wiki/Instant_noodles 13 . New Delhi Press: Pearson Boerstein.wikipedia. BIBLIOGRAPHY: Kotler. Keller. Food Processing Whitebook. Tata McGraw-Hill http://en. A. Koshy. Jha. New Delhi. New York: Random House. Subroto (1999). D. Marketing Management. Brand Positioning: Strategies for Competitive Advantage. (1992)..