Yippee Noodles(1)

7/30/2019 Yippee Noodles(1)

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Yippee Noodles

Project Report

Submitted to:

Dr. H. Gayathri

Submitted by

GROUP 9

BANALI. KC (13136)

DINESH. MR (13141)

ADITYA. J (131)

SRUTHI MADADI (13151)

MOHNISH MISHRA (13156)


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TABLE OF CONTENTS

1.1 Introduction..1.12Instant noodle industry in India1.13Market share.2.1 ITC

2.1.1 History.

2.1.2 Diversification timeline

2.2 Sunfeast

2.3 Yippee Noodles

2.4 4Ps.

2.5 STP.

3.1 Competitor Analysis

3.1.1 Maggi

3.1.2 Foodles.

3.1.3 SWOT..

4.1 Recommendations

Bibliography


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1.1 Introduction

1.1.2. Instant noodle industry in India

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

product 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 wasthe 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 itsin 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.

1.1.3 Market share of the various brands in 2013


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2.1ITC

2.1.1 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 the

beginnings 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 amongIndia's `10 Most Valuable (Company) Brands', in a study conducted by Brand Finance and

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3.1

1.8 4.3 3.2 2.6

Maggi

Top Ramen

Tasty Treat

Yippie

Foodles

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

companies compiled by Business Week.

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".

2.1.2 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 MyFortune, 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 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and British jointventure.

In 1990, ITC acquired Tribeni Tissues Limited, a Specialty paper manufacturingcompany and a major supplier of tissue paper to the cigarette industry. The merged

entity was named the Tribeni Tissues Division (TTD).

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.


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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

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

Transportation & 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, Bhadrachalam Paperboards amalgamated with the Company and became aDivision of the Company, Bhadrachalam Paperboards Division. Later that year, this

division merged with the Company's Tribeni Tissues Division to form the

Paperboards & Specialty Papers Division.

In 2002, Surya Tobacco became a subsidiary of ITC Limited and its name waschanged to Surya Nepal Private Limited (Surya Nepal).

In 2002, TTD was merged with the Bhadrachalam Paperboards Division to form thePaperboards & Specialty Papers Division.

In 2002, ITC launched line of premium range of notebooks under brand Paperkraft. In 2002, The Wills Lifestyle chain of exclusive stores later expanded its range to

include Wills Classic formal wear.

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 2003, ITC marked the manifestation of its partnership with the cottage sector as itforayed into the marketing of Agarbattis (incense sticks) in 2003. Mangaldeep is a

highly established national brand and is available across a range of fragrances like

Rose, Jasmine, Bouquet, Sandalwood, Madhur, Sambrani and Nagchampa.

In 2004, ITC acquired the paperboard manufacturing facility of BILT IndustrialPackaging Co. Ltd (BIPCO), near Coimbatore, Tamil Nadu.

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'


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brands which have received encouraging consumer response and are also being

progressively extended nationally.

In 2006, Wills Lifestyle became title partner of the country's most premier fashionevent - Wills Lifestyle India Fashion Week - that has gained recognition from buyers

and retailers as the single largest B-2-B platform for the Fashion Design industry. In 2007, ITC entered the fast growing branded snacks category with Bingo. In 2008, ITC positioned the business as the Education and Stationery Products

Business and launched India's first environment friendly premium business paper

under the 'Paperkraft' Brand.

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.

2.2 Sunfeast

In July 2003, ITC forayed into Biscuit market with the introduction of Sunfeast.

Sunfeast's brand essence connotes happiness, contentment, satisfaction and pleasure

In a span of 10 years, Sunfeast has well-established presence in almost all categories

of biscuits and is also a key player in the pasta and instant noodles segments.

2.3 Yippee Noodles

In the year 2010 ITC entered into instant noodles market with the brand name of

Yippee Noodles

2.4 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.

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 destroy


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them. 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.

FMCG companies maintain intense distribution network. Companies spend a large

portion of their budget on maintaining distribution networks

2.5 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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3.1 Competitor Analysis

3.1.1 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.

3.1.2 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 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). The competition in the market is fierce as there are atleast two

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

3.1.3 SWOT Analysis

SWOT Analysis

Strength

Attractive packaging of the product Good product distribution and availability Lots of flavors and varieties available

Weakness Low product visibility

Opportunity Untapped rural markets Newer tastes

Threats

Monopoly of Maggi Local players


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4.1 Recommendations

Quality improvement and image advertising as compared to market leader The company can look at diversifying into the chocolates and candies segment as the

name sunfeast resonates well with the kids.

The premium and super premium segments according to industry experts are believedto 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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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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Yippee Noodles(1)