a comparative analysis of Sunfeast Yippee in comparison to others

In this presentation you saw that SunFeast Yippee Increases its market share in Lucknow.

1. A COMPARATIVE ANALYSIS OF SUNFEAST YIPPEE IN COMPARISON TO OTHER NOODLES BY MAZHAR HUSAIN RIZVI 13-MBAW-29 GE-9066 MBA (FINAL) 1

2. ABOUT ITC ITC was incorporated on August 24, 1910 under the name Imperial Tobacco Company of India Limited . As the Company's ownership progressively Indianised, the name of the Company was changed  from Imperial Tobacco Company of India Limited to India Tobacco Company Limited in 1970  and then to I.T.C. Limited in 1974 . In recognition of the Company's multi-business portfolio encompassing a wide range of businesses - Cigarettes & Tobacco, Hotels, Information Technology, Packaging, Paperboards & Specialty Papers, Agri-business, Foods, Lifestyle Retailing, Education & Stationery and Personal Care etc. The Company now stands rechristened 'ITC Limited '. 2

3. Y C DEVESHWAR is the chairman of ITC Sustain ITC's position as one of  India's most valuable corporations through world class performance, creating growing value for the Indian  economy and the Company’s stakeholders ITC Vision To enhance the wealth generating  capability of the enterprise in a globalizing environment, delivering superior and sustainable stakeholder value ITC Mission 3

4. ITC FOOD INDUSTRY 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. It began in August 2001 with the introduction of 'Kitchens of India'  ready-to-eat Indian gourmet dishes. In 2002, ITC entered the confectionery and staples segments with the launch of the brands  mint-o  and  Candy man  confectionery and  Aashirvaad atta (wheat flour). 4

5. Continue…. 2003 witnessed the introduction of  Sunfeast  as the Company entered the biscuits segment. ITC's entered the fast growing branded snacks category with  Bingo!  in 2007. In eight years, the Foods business has grown to a significant size with over 200 differentiated products under six distinctive brands, with an enviable distribution reach, a rapidly growing market share and a solid market standing. 5

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7. SUNFEAST YIPPEE In September 2010 , the brand launched its noodles brand extension- Sunfeast Yippee. Indian noodles segment has now become a huge market worth Rs 1300 crore (approx.) Maggi is the market leader with a whopping 70% market share A huge market with one major market leader is definitely an attractive one. That is one of the reason why so many players have recently launched their brand in this segment. Sunfeast ( ITC) is a worthy player to take on the might of Maggi. ITC is a company that is not averse to taking risk and have a huge cash reserve to fight a marketing war with Nestle. 7

8. Continue…. ITC product portfolio has been further expanded with  Sunfeast Yippee! Instant noodles. Three years of exhaustive developmental work has gone into the creation of  Sunfeast Yippee!  The product has two intrinsic components - the noodle block and the masala mix. Wheat is a key ingredient of the noodle block. The sourcing and blending expertise that has made Aashirvaad India's No 1 branded Atta has been leveraged to make a truly delightful noodle block. Sun feast Yippee noodles do not lump even 30 minutes after cooking. At present, Sunfeast Yippee is available in three lip smacking variants -Classic Masala, Chinese Masala  and Magic Masala 8

9. INDIAN NOODLE MARKET In India the instant noodles market is worth Rs . 1300 Cr. (approx.). In this Nestle’s Maggi is in top capturing 70% market share. After this ITC Sunfeast Yippee capturing 18% market share. Others brand like HUL’s Knorr Soupy noodles, GSK’s Horlicks Foodles , Indo-Nissan’s Top Ramen etc. are capturing 12% market share. 9

10. STP for SUNFEAST YIPPEE! Segment Segmented for youngsters mainly . Also segmented for school kids. Target Mainly targeted towards working individuals. Mothers as they purchase and wants healthy food for their children . Positioning The biggest problem with cooked Maggie is that it is to be eaten when freshly cooked . Get sticky becomes inedible. Yippee promises that Yippee noodles can be eaten even after some time . Maggie comes in rectangular shape and while cooking it is broken into two pieces. On the contrary Yippee comes in round shape and can easily fits into round vessel with no breaking . 10

11. MARKETING MIX Promotion Advantages over maggi as competitor. Ads mostly shown on particular channels & time. 11

12. CONSUMER BEHAVIOUR The competitive scenario in this industry is getting more intense as the customers habits are changing and they now want more options in anything and everything that they consume. The entry of these variants has provided the customers with a lot of options. It now needs to be seen how Sunfeast Yippee Noodles from ITC is able to make a dent in stronghold of Maggie and how it is able to come out on top in this battle of FMCG giants. 12

13. SWOT ANALYSIS 13

14. OBJECTIVE OF THE STUDY To study distribution practices of the ITC’s YIPPEE & Contrast with Nestle’s Maggi and other companies To identify factors influencing retailers brand choice. To examine comparative service quality across retailer base. To ensure availability and visibility of ITC’s Noodles at Retail outlets. To offer suggestions for increasing market-share of ITC in Noodles Industry 14

15. RESEARCH METHODOLOGY Research Design: Descriptive Research Source of Data: Primary Data Method of Data Collection: S tructured Q uestionnaire & Personal I nterview conducted with retailers. Sample Area: retail outlets of Lucknow [ Gomti Nagar, Indra Nagar, Kapporthala , Nerala Nagar, Nishantganj, Vikas Nagar and Aliganj] Sample Size: 200 retail outlets . Sampling Technique: Convenience Sampling 15

16. Which Noodles company do you stock? It is found that out of sample study 118 retailers stock Maggi , 42 Yippee, 28 Knorr and 12 stock Foodles. 16

17. Which is your most favored company? It is found that 112 retailers favored company product is Nestle Maggi, 46 retailers favored brand is Yippee, 32 retailers favoring Knorr and 10 retailers favoring Foodles. 17

18. How often does the DS visits you in a week? It is found that Sunfeast Yippee’s DS visits retailers thrice in a week meanwhile Maggi and Knorr’s DS visits twice and Foodles’s DS visits once in a week. 18

19. Is the DS knowledgeable? And able to answer all your query. It is found that ITC’s DS more Knowledgeable in comparison to other companies’ DS. 19

20. Does DS Redress your grievances satisfactorily? It is found that ITC’s DS are more capable of redressing retailers grievance in comparison to others. 20

21. How is the order delivered to you ? It is found that in delivering order ITC used 89% its delivery van and rest of delivery is done by hawkers, meanwhile in Nestle 90% delivery is done by delivery van and rest by hawkers , in HUL and GSK 88% and 30% respectively. 21

22. Are your order always received on time? It is found that nestle deliver order 88% on time, ITC deliver 85%, HUL deliver 83% and GSK deliver 78% on time. 22

23. What are the payment terms? It is found that Nestle sold its Product 80% in credit, 10% in cash and 10% in both. ITC sold 78% in credit, 14% in cash and 8% in both. HUL sold 70% in credit, 20% in cash and 10% both. GSK sold 71% in credit , 9% in cash and 10% in both. 23

24. How long does your stock last? The stock of both Nestle Maggi and ITC Yippee last for a week at most of the retail stores where as HUL and GSK last for 2 weeks 24

25. Do the companies do any stock replacement? It is found that in terms of D&D (Damage and Destroy) Nestle replaced 66%, ITC replaced 65% , GSK replaced 44% and HUL replaced 38%. 25

26. FINDINGS During the project, it was found most of the retailers were complaining against the supply of the expired stock by ITC WD’s . In the area I visited the market share of nestle is four times more than ITC . During the survey it was found that as compared to the Payment Term of ITC and Nestle are more efficient in terms of Cash Discount. However the salesman of ITC is knowledgeable in comparison to others companies, according to the response of the retailers. 26

27. SUGGESTIONS ITC can put some small toys into Yippee to attract children . ITC should distribute free cooked Yippee noodles it will give correct feedback from market . ITC can launch other flavours of Yippee . Focus more on advertisement as some consumers are not aware of the product. Opt for a differentiation strategy because even if people buy yippee, they demand it as “Maggi dena ”. Change its packaging style as it’s similar to Maggi . Schools can also be targeted for making awareness among the kids because they are the major consumer. 27

28. LIMITATION OF THE STUDY Non response : Out of the total respondent surveyed some of them were not cooperative due to which accurate prediction was not possible Confined Study : The study was confined to the Lucknow city only . Biased Response : The responses given by the respondent are assumed to be true however chance of getting false and biased information can’t be look fully. 28

29. CONCLUSION Lot to be done for Yippee. The biggest advantage for Maggie is its taste and first mover advantage in the instant noodle market. Become generic and mere advertising is not going to do any harm to Maggie . Key to success for Yippee will be the taste and targeted promotional activities and good distribution channel with ITC’s reach . Top Roman and Foodles failed. Maggie with 80% market share is being targeted by ITC’s Yippee noodles with a slight different and a well thought out strategy and with a huge cash reserve to fight a marketing war with Nestle . Noodle brands mainly target children only. India is vastly consumed by Young population also, then why not target this group and segment the market. ”Divide and Conquer”. 29

30. T H A N K Y O U !!! 30