brand management sunfeast yippee himanshu pgp30022 version 2
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Brand Extension Analysis
Himanshu, PGP30022, Sec A
• ITC first introduced 'Kitchens of India' in to enter in the food market
• IT Centred the confectionery and staples segments with the launch of the brands mint-o and Candyman confectionery and Aashirvaad Atta(wheat flour)
• Witnessed the introduction of Sunfeast as the Company entered the biscuits segment
• Entered the branded snacks category with Bingo!
• launched noodles brand Sunfeast Yippee in the Indian market
Company – ITC Ltd.
2002
2003
2007
2010
2001
Major ITC Brands
Sunfeast – Brand Extention
Sunfeast Biscuits
Sunfeast Yippee Noodle!
Sunfeast, the challenger biscuit brand, launched in 2003, within a span of 7 years, has made presence felt in categories like biscuits, pasta and now in noodles
In September 2010 , the brand launched its noodles brand extension- Sunfeast Yippee.
Sunfeast made its first brand extension in 2005 when it launched Sunfeast Pasta Treat and created the pasta category in the Indian market
Sunfeast Yippee! Noodles
Sunfeast Yippee brand gained 3% in value share in 2014 by :1) leveraging strong distribution channel 2) targeting both mothers and children
ITC using an umbrella brand strategy to make space for the Yippee brand in the instant noodle category.
Yippee’s Chinese Masala launched in 2014 and heavily promoted in TV commercials targeting kids has good acceptance in the market space.
Sunfeast Yippee noodles’ television ad in 2014 positions ‘The Better Noodle’ which is: • long, • non-sticky• tasty
Yippee positioned well against the category leader and promoted as ‘does not form lumps even 30 minutes after cooking’.
Indian Noodles Market at a glance
Value growth of 19% in 2014 takes noodles
sales to INR 53 billion
Pouch instant noodles register the highest
current value growth of 21% in 2014
Rural penetration with small pack size variants are supporting growth
in 2014
Average unit price increases by 8% in
current terms in 2014
Nestlé India Ltd continues to lead with a 63% value share in
2014
Noodles is expected to see a 9% value CAGR at
constant 2014 prices over the forecast
period
Indian Noodle Market
2010 2011 2012 2013 20140.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
34.10%
29.71%
24.42%21.95%
20.58%
INR million 2009 2010 2011 2012 2013 2014
Chilled Noodles - - - - - -
Frozen Noodles - - - - - -
Instant Noodles 14,401
19,274
24,962
31,028
37,810
45,562
- Cups/Bowl Instant Noodles
207
240
274
312
353
396
- Pouch Instant Noodles 14,194
19,034
24,688
30,716
37,457
45,166
Plain Noodles 4,369
4,850
5,344
5,904
6,502
7,228
Snack Noodles - - - - - -
Noodles 18,770
24,124
30,306
36,932
44,312
52,789
Sales of Noodles by Category: Value 2009-2014
Sunfeast Category
MARKET GROWTH RATE - POUCH INSTANT NOODLES
Instant Noodle Product
Category grew by 218% in last 5 Years!
Market Growth rate has been declining over the
years. From 34% in 2010, it came down to 20.6% in
2014
Indian Noodle Market
Nestle with its Maggi Brand, continues to be the LARGEST PLAYER in the product category
followed by ITC!
Sunfeast’s market share has grown from 0.71% in 2010 to 10.81% in
2014
63%11%
5%
3%
2%
1%
1%
1%
13%
Major Players 2014
Nestlé India Ltd
ITC Ltd
Bambino Agro Industries Ltd
Indo Nissin Foods Ltd
Capital Foods Ltd
MTR Foods Ltd
CG Foods India Pvt Ltd
Hindustan Unilever Ltd
Others
Year Yippee’s Market Share
2014 10.81%
2013 8.31%
2012 5.30%
2011 3.40%
2010 0.71%
Segmentation-Targeting-Positioning- Yippee Noodles
Demographic Segmentation Target Group
Young people and children from upper and middle class
People looking for a healthy snack when hungry
Positioning
A. Sunfeast Yippee noodles’ television ad in 2014 positions ‘The Better Noodle’ which is: • long, non-sticky and tasty
B. Shape of the contents within the Yippee noodle pack is in round shape which keeps the noodles intact and long and smooth
C. Yippee noodles can be had even after hours of cooking it whereas Maggi must be had immediately as the taste deteriorates after sometime. Promoted as ‘does not form lumps even 30 minutes after cooking’.
Marketing MixProduct
PromotionPlace
Price• Products – Classic and magic
Masala• Packaging – package with red and
yellow contents• Contents - Round cake instead of
the rectangular cakes as used by other brands
• Labeling - 90 gram pack with two variants available &more lined up for launch in the coming months
• ITC’s biggest Distribution reach has brought of greater advantage to Yippee
• Penetration into rural areas at a rapid pace
• Company heavily emphasizing on Benefit Positioning Concept
• Deal with Paytm for Cash back
• All ads show how Yippee is different and better from Maggi
• Advertising also done to increase product recall
Magic/Classic Masala Price (Rs)
Large 85g / Mini 42.5 g 10 / 5
Family pack 40
• Available at price tag of Rs10 to match competitive prices of Maggi
Competitive Frame of Reference
POPs PODs
• Similar Pricing• Instant ready to eat noodles
category• Available in different sizes • Targeted mainly at kids• Similar packaging
• Round shape of packaged noodle content instead of rectangular that keeps the noodles intact and long and smooth
• Yippee noodles don’t lose the original taste even after hours of cooking unlike Maggi whose taste deteriorates after sometime
SWOT Analysis
Strength• Good advertising and visibility• Good product distribution and availability• Lots of flavors and varieties available
Weakness• Media generated news about health issues• Brand loyalty of Maggi is tremendous
Opportunity• Ban on Maggi• Untapped rural markets keeping in mind ITC’s Distribution strength• DINKS, single professionals; more flavors/variants
Threat • Price wars with other noodle brands esp. biggies like Maggi
References
• http://www.itcportal.com/• http://
www.itcportal.com/about-itc/shareholder-value/annual-reports/itc-annual-report-2014/pdf/report-accounts-2014.pdf
• http://www.sunfeastyippee.com/• http://www.euromonitor.com/india• GMID Database• http://timesofindia.indiatimes.com/• https://www.aaramshop.com/product-detail/sunfeast-yippee-noodles-magic-masala• http://www.mouthshut.com/product-reviews/Sunfeast-Yippee-Noodles-reviews-925616217• http://basicmarketingfundas4u.blogspot.in/2011/07/sunfeast-yippe-foray-of-itc-into.html• https://www.scribd.com/doc/119187165/Yippee-as-a-Substitute-for-Maggi• http://marketingpractice.blogspot.in/2010/12/brand-update-sunfeast-enters-noodles.html
Thank you!