Yippee Noodles Final

7/30/2019 Yippee Noodles Final

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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)


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Marketing Management Yippee Noodles Section C, Group 6

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TABLE OF CONTENTS

1. Introduction.21.1Instant noodle industry in India.21.2 Market share..3

1.3 Trends in Noodles Industry...3

1.4 Key players in Noodle Market..4

1.5 Opportunities in Indian Noodle Market4

2. ITC5

2.1 History..5

2.2 Diversification timeline6

2.3 Sunfeast.7

2.4 Yippee Noodles 8

2.4.1 4Ps8

2.4.2 STP...9

2.4.3 SWOT Analysis...10

3. Competitor Analysis..10

3.1 Maggi10

3.1.1 SWOT Analysis...11

3.2 Foodles..11

3.2.1 SWOT Analysis.. 12

4. Recommendations.12

5. Bibliography. 13


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1. Introduction

1.1 Instant noodle industry in India

Instant noodles have become one of the worlds most popular food items owing to its

versatility and convenience. 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. 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. With widespread acceptance of the product, instant noodle has become a dailyproduct in majority of the nations around the globe. Demand for the product is driven by

convenience, low cost and product variety.

Indian instant noodle market is estimated at INR 1,300 to 1,600 crore (USD 300USD 350

million). According to estimates, the market is expected to reach INR 3,000-3,500 crore by

2015 clocking a CAGR of 20%. The market is dominated by Nestls brandMaggi. It was

the first noodle brand to be introduced in India in mid 1980s. Nestle is the market leader with

58.3% market share in the overall category and over 80% in the pure noodles category. But

Maggis domination is facing a tough competition in the market today due to the entrance of

brands like Hindustan Unilevers Knorr Soupy noodles, GlaxoSmithKlines Foodles, ITCs

Sunfeast Yippee Noodles, Nissins Top Ramen and Big Bazaars Tasty Treat.

According to industry analysts, 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.

With ITC entering the market, 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.


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1.2 Market Share

1.3 Trends in Noodles Industry

1. Increasing competition: Competition in instant noodle category has intensified withplayers such as GlaxoSmithKline (Horlicks Foodles), ITC (Sunfeast Yippee noodles),Capital Foods and Hindustan Unilever launching new products in the market. Privatelabel 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 themarket.

2. New product launches and extensive marketing: All players new or old have beenbusy launching new products and marketing campaigns. Maggi has launched anextensive campaign with their new product vegetable multigrain noodle. Tasty Treatincreased its variants from two to five. Similarly, Foodles is stressing on the healthaspect of its products.

3.

Stress on health and wellness: As on all other food categories, players are stressing onhealth and wellness aspects of their products. Maggi launched Atta noodles andmultigrain noodles to woo customers while Glaxos Foodles also stresses on the

multigrain aspect of their product4. Traditional flavours still dominate: Masala, chicken and tomato are most popular

flavours in the market5. Addressing rural market: Noodles are primarily consumed in urban India and to

expand this market companies such as Nestle have introduced small sized and lowcost products to address the demand of rural market. The success of this effort is stillto be seen.


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1.4 Key Players in Indian Noodle Market

The instant noodle market is dominated by MNCs, very few local players have a sizeable

presence. Some of the key players in the market along with their brands are:

1. Nestle (Maggi)2. Hindustan Unilever (Knorr Soupy Noodles)3. GlaxoSmithKline Consumer Healthcare (Foodles)4. Capital Foods Ltd. (Ching's Secret)5. ITC (Sunfeast Yippee noodles)6. CG Foods India Pvt. Ltd.(Wai Wai)7. Future Group (Tasty Treat)

1.5 Opportunities in Indian Noodle Market

1. Health and wellness theme: Health and wellness theme based packaged food isgaining 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.

2. Huge Rural market: rural India where close to 60% of Indian population resides is ahuge consumption market virtually un-penetrated by any player. Low cost productswith appropriate marketing can open up this huge market


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2.ITC

2.1 History

ITC was founded on August 24, 1910 asImperial Tobacco Company of India Limitedand

shares ancestry withImperial Tobaccoof the United Kingdom, but later it became fully

independent, and was rechristened to India Tobacco Company in 1970 and then to I.T.C.

Limited in 1974.The Company got rechristened as 'ITC Limited' after the full stops got

removed with effect from September 18, 2001. ITC has a wide range of businesses.

The first six decades of the Company's existence were primarily devoted to the growth and

consolidation of the Cigarettes and Leaf Tobacco businesses. The company witnessed thebeginnings of a corporate transformation that would usher in momentous changes during the

Seventies. 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. ITC is rated among the

World's Best Big Companies, Asia's 'Fab 50' and the World's Most Reputable Companies by

Forbes magazine. 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', in a study conducted by Brand Finance and

published by the Economic Times. ITC also ranks among Asia's 50 best performing

companies compiled by Business Week.
http://en.wikipedia.org/wiki/Imperial_Tobaccohttp://en.wikipedia.org/wiki/Imperial_Tobaccohttp://en.wikipedia.org/wiki/Imperial_Tobaccohttp://itcportal.com/about-itc/itc-profile/images/itc-profile-ad.jpghttp://itcportal.com/about-itc/itc-profile/images/itc-profile-ad.jpghttp://itcportal.com/about-itc/itc-profile/images/itc-profile-ad.jpghttp://itcportal.com/about-itc/itc-profile/images/itc-profile-ad.jpghttp://en.wikipedia.org/wiki/Imperial_Tobacco


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ITC has a diversified presence in FMCG (Fast Moving Consumer Goods), Hotels,

Paperboards & Specialty Papers, Packaging, Agri-Business and Information Technology.

While ITC is an outstanding market leader in its traditional businesses of Hotels,

Paperboards, Packaging, Agri-Exports and Cigarettes, it is rapidly gaining market share even

in its nascent businesses of Packaged Foods & Confectionery, Branded Apparel, Personal

Care and Stationery. With its headquarters located in Kolkata, the current chairman of ITC

Limited is Mr Yogesh Chander Deveshwar.

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, superior brand-building capabilities and effective supply chain management. Overtime,

the strategic forays into new businesses are expected to garner a significant share of these

emerging high-growth markets in India. As one of India's most valuable and respected

corporations, ITC is widely perceived to be dedicatedly nation-oriented. Chairman Y C

Deveshwar calls this source of inspiration "a commitment beyond the market".

2.2 The diversification timeline of ITC

In 1925, ITC's Packaging & Printing Business was set up as a backward integrationfor ITC's Cigarettes business.

In 1975, the Company entered into Hotels business with the acquisition of a hotel inChennai which was renamed as 'ITC-Welcome group Hotel Chola (now renamed My

Fortune, Chennai). ITC chose the Hotels business for its potential to earn high levels

of foreign exchange, create tourism infrastructure and generate large scale direct and

indirect employment. Since then ITC's Hotels business has grown to occupy a

position of leadership, with over 100 owned and managed properties spread across

India under four brands namely, ITC Hotels - Luxury Collection, Welcome Hotels,

Fortune Hotels and Welcome Heritage.

In 1979, ITC entered the Paperboards business by promoting ITC BhadrachalamPaperboards Limited.

In 1990, leveraging its agri-sourcing competency, ITC set up the Agri BusinessDivision for export of agri-commodities.

In 2000, ITC's unique and now widely acknowledged e-Choupal initiative began withsoya farmers in Madhya Pradesh. Now it extends to 10 states covering over 4 million

farmers. Also, through the 'Choupal Pradarshan Khet' initiative, the agri services

vertical has been focusing on improving productivity of crops while deepening

relationship with the farming community.

In 2000, ITC also entered the Lifestyle Retailing business with the Wills Sport rangeof international quality relaxed wear for men and women.

In 2000, ITC spun off its information technology business into a wholly ownedsubsidiary, ITC Infotech India Limited. Today ITC Infotech is one of India's fastest


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growing global IT and IT-enabled services companies and has established itself as a

key player in offshore outsourcing, providing outsourced IT solutions and services to

leading global customers across key focus verticals - Banking Financial Services &

Insurance (BFSI), Consumer Packaged Goods (CPG), Retail, Manufacturing,

Engineering Services, Media & Entertainment, Travel, Hospitality, Life Sciences andTransportation & Logistics.

In 2001, ITC's foray into the Foods business is an outstanding example ofsuccessfully blending multiple internal competencies to create a new driver of

business growth. It began with the introduction of 'Kitchens of India' ready-to-eat

Indian gourmet dishes.

In 2002, ITC also initiated a foray into the popular segment with its men's wear brand,John Players.

In 2002, ITC entered the confectionery and staples segments with the launch of thebrands mint-o and Candyman confectionery and Aashirvaad atta (wheat flour).

In 2002, ITC's philosophy of contributing to enhancing the competitiveness of theentire value chain found yet another expression in the Safety Matches initiative. ITC

now markets popular safety matches brands like iKno, Mangaldeep and Aim.

In 2003, the Classmate range of notebooks was launched. In 2003, Sunfeast was introduced in the market as the Company entered the biscuits

segment.

In 2005, ITC entered the Personal Care Business. In seven years, the Personal Careportfolio has grown under 'Essenza Di Wills', 'Fiama Di Wills', 'Vivel' and 'Superia'

brands which have received encouraging consumer response and are also being

progressively extended nationally.

In 2007, ITC entered the fast growing branded snacks category with Bingo. In 2010, ITC launched Sunfeast Yippee! to enter the Indian instant noodles market. In 2010, ITC launched its hand rolled cigar, Armenteros, in the Indian market.

Armenteros cigars are available exclusively at tobacco selling outlets in select hotels,

fine dining restaurants and exclusive clubs.

2.3 Sunfeast

In July 2003, ITC forayed into the Biscuits market with the Sunfeast range of Glucose,Marie and Cream Biscuits. Sunfeast's brand essence connotes happiness, contentment,satisfaction and pleasure. In a span of 9 years, Sunfeast has well-established presence in almostall categories of biscuits and is also a key player in the pasta and instant noodles segments.

Sunfeast Biscuits straddle all segments of the market led by Dark Fantasy at the premium end.High quality married with exciting innovations has helped drive this category. Dark FantasyChoco Fills has wowed the Indian consumer with its innovative centre-filled format and high-quality packaging.

In addition, the launch of the Dream Cream range of biscuits in two exciting and innovativedual cream formats further reinforces ITCs commitment to continuously delight the consumer.


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2.4 Yippee Noodles

In the year 2010 ITC expanded its portfolio by entering into instant noodles category

by introducing Sunfeast Yippee! Instant Noodles. Three years of exhaustivedevelopmental 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.

2.4.1 4Ps

ProductIt is a product that is different in terms of

Packaging - Using combination of red, yellow, orange and brown colours on covers Contents - Which is round cake instead of the rectangular cakes as used by other

brands

Variantsclassic masala, magic masala and Chinese masala.Price- 10 for 85 gram pack and 40 for 320 gram pack to match the competitor's price.

PromotionThe 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.

Till date, 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.

Place - ITC has a very strong distribution network for their cigarette brands and they are

using this network for Sunfeast biscuits also. They keep their goods on constant move from

low sales area to high sales area. Theycollect the expired goods four times a year and destroythem. The benefits received by the retailers depend upon their sales volume and also the

location of theirshops. The company says the brand is now available in nearly 1.8 million

outlets.


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2.4.2 STP

Segmentation:

Demographic: Urban, Semi-urban, rural areas Behavioural: Regular users (urban), first time users (regular) Usage status: Heavy users (urban), light (rural), medium (semi-urban)

Targeting: Children from upper and middle class.

Positioning: Benefit Positioning Concept.


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2.4.3 SWOT Analysis

Strengths:

1. Wide distribution network.2. Well established image of ITC.3. Attractive packing.4. Use of umbrella branding.

Weakness:

1. Low product visibility.Opportunities:

1. Rural noodle market is growing twice the rate of urban market.2. Market is expected to reach 3000-3500 crore by 2015.

Threats:

1. Maggis strong market presence.2. Competition from other private players.3. Local Players.

3. Competitor Analysis

3.1 Maggi

Nestle India Ltd (NIL) the Indian subsidiary of global FMCG player introduced Maggi brand

in year 1982. NIL created entirely new food category-instant noodles. Being the first mover

NIL could retain its market leader position till date. Maggi occupies nearly 80% of noodles

market share in India.

Maggi is the market leader and has a strong brand loyalty among its consumers. Its

distribution channel is also wide and it has developed many innovative flavors for the Indian

taste buds. It has an effective advertising strategy as well.

Entrance of competitors like Yippee, Foodles and local players pose a challenge to Maggi

however they see opportunities in the rural market which is yet to be tapped into.


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3.1.1 SWOT AnalysisStrengths:

Market Leader Brand Loyalty Distribution Channel Innovative flavors for Indian taste buds Advertising strategy

Weakness:

Maggis new innovative products has all failed

Opportunities:

Rural noodle market is growing twice the rate of urban market. Market is expected to reach 3000-3500 crore by 2015.

Threats:

Competition from other private players. Local Players.

3.2 Foodles:

Fast moving consumer goods (FMCG) company GlaxoSmithkline Consumer Healthcare

announced its entry into the instant noodles segment. It launched the product under the

popular Horlicksbrand, named FoodlesIt 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). The competition in the market is fierce as there are atleast two

national players in Maggi and Yippee and regional players coming up.

Foodles comes from a background of healthcare and they have innovative packaging. They

have followed Umbrella branding strategy. 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.


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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.

3.2.1 SWOT AnalysisStrengths:

Getting the advantage of having healthcare background. Innovative packaging Umbrella Branding

Weakness:

High Price.

Opportunities:

Rural noodle market is growing twice the rate of urban market. Market is expected to reach 3000-3500 crore by 2015.

Threats:

Competition from other private players. Local Players.

4.Recommendations

Quality improvement and image advertising as compared to market leader. The premium and super premium segments according to industry experts are believed

to be growing at around 30% annually. So sunfeast can come up with new varieties in

premium segment.

Sunfeast should provide better benefits to wholesalers and retailers as Nestle isproviding higher margin to retailers to compete with.


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5. BIBLIOGRAPHY:

Kotler, P., Koshy, A., Jha, A., Keller, J. (1974).Marketing Management,New DelhiPress: Pearson

Boerstein, D. (1992).Food Processing Whitebook, New York: Random House. Sengupta, Subroto (1999). Brand Positioning: Strategies for Competitive Advantage,

New Delhi, Tata McGraw-Hill

http://en.wikipedia.org/wiki/Instant_noodles

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