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

Sunfeast

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

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/

Thank you!