pgp30132 sunfeast yippienoodles
TRANSCRIPT
Overview of Brand ExtensionYippee Noodles
Submitted By
Deepali Jaiswal
PGP30132
Section A
Date: 09/07/2015
ITC
ITC was incorporated in 1910 as a tobacco firm
Later ITC expanded into various segments:
Hotels
Information Technology
Paperboard
Stationery
Foods
Lifestyle apparel
Safety Matches and Agarbattis
Packaging and Printing
ITC launched Yippee Noodles in 2010 in India under its noodles brand Sunfeast Yippee
Sunfeast
Sunfeast company was introduced in 2003 when ITC entered into
biscuit segment
Sunfeast made its first brand extension in 2005 by creating pasta
category in India and launched Sunfeast Pasta treat
In 2010, the brand entered into noodles category and launched
Yippee noodles
Category: Instant Noodles
India has instant noodles market
of Rs 5300 crore
Instant noodles in India has seen a
growth of 19% this year
Growth is supported by rural
penetration
There is an increase of 8% in
average annual price
Forecast: Expected value CAGR
9%
Instant Noodles: Market Size
2010 2011 2012 2013 2014 20150
1000
2000
3000
4000
5000
6000
1927
2496
3102
3780
4436
5280
Market Sales in India
Market Size (Rs Cr)
29.4%
24.3%
21.9%
17.4%
19%
Value of noodles in India has seen a growth in the past few years
Product: Yippee Noodles
Sunfeast Yippee noodles has
strengthened ITC’s footing in
instant noodles
ITC used strong distribution
channel to reach out to its target
segment: mother, and children
ITC has used an umbrella brand
strategy to make space for the
brand
Growth of Yippee Noodles
2011 2012 2013 2014 20150%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
6%
10%
14%
15%
18%
Market Share in India
Market Share
Yippee noodles has seen an increasing market share since the year of its launch
Segmentation
Segmented for kids, and youngsters
Demographics:
Targets urban, and rural areas too
Majorly for working women
Behavioral:
Light, medium, and heavy users
First time, and regular users
Targeting
Kids, and Youngsters: as they love tasty food
Working people: as they don’t have much time for cooking
Women – working, and mothers: as they want to feed their children
with healthy food
Positioning
Yippee’s positioning was done on central idea of focusing on its
benefits over competitors:
Availability of variants in noodles
Available in round shape which easily fits in round bowl after being cooked
Does not form lumps even after 30 minutes
Marketing Mix – 4Ps
ProductProduct
• Packaging: Flashy colors on packet – combination of orange,
red, yellow, and brown
• Variants: Magic masala, Classic masala, and Chinese masala
• Product is also available in round blocks which was new in this
segment
• SKUs: 80 grams., 320 grams. packets
Marketing Mix – 4Ps
PricePrice
• Prices are kept so as to match competitors price
• 85 grams pack – Rs. 10; 320 grams pack – Rs. 40
• In the initial phase Sunfeast also launched trial packs for Rs. 5
Marketing Mix – 4Ps
PlacePlace
• Distributed by wholesalers to retailers, and malls
• Widely present in Urban market
• ITC has extensively used its distribution channel in order to
mark Yippee’s presence in rural areas too
Marketing Mix – 4Ps
PromotionPromotion
• Showcases benefits over its competitor product maggi
• Stress over health and wellness
• Channels: TV, print media, competition at B-schools, & social
media
• Gave heavy discounts in the initial stage (upto 78% off)
Competitor Analysis:Market Share
India has instant noodles market of Rs 5300 crore
In India Maggi held the strongest market share: 65%
Yippee noodles followed Maggi with holding a share of 18%
Maggi being off shelves now Yippee has started gaining market share at a fast pace
Other competitors of Yippee noodles are: Knorr Soupy Noodles, Horlicks Foodles, Top Ramen etc.
Maggi; 65%
Yippee; 18%
Others; 17%
India: Market Share
Points of Parity
Prices are kept so as to match that of competitors
Instant noodles: cooked instantly
Similar SKUs
Points of Difference
Unlike other noodles wheat is the key ingredient of Yippee noodles
Yippee noodles is non-sticky which can be cooked and preserved even
for 30 mins. unlike other noodles which forms lumps after sometime
Yippee noodles are available in round shape too unlike other noodles
which are available in rectangular shape only
Stress on health and wellness
References
GMID database
http://archive.financialexpress.com/news/itc-s-premium-gallery/1298206
http://marketingpractice.blogspot.in/2010/12/brand-update-sunfeast-enters-noodles.html
http://www.hindustantimes.com/business-news/hul-goes-for-second-try-in-noodle-war-with-nestle-itc/article1-933760.aspx
http://instantnoodles.org/noodles/expanding-market.html
https://strategicmoves.wordpress.com/2010/12/20/sunfeast-yippee-noodles-targeting-maggie-with-benefit-positioning/