Brand Extension

Analysis

Himanshu, PGP30022,

Company ITC Ltd.

200
1

ITC first introduced 'Kitchens of India' in to enter in the food

market

200
2

IT Centred the confectionery and staples segments with the

launch of the brandsmint-o andCandymanconfectionery
andAashirvaad Atta(wheat flour)

200
3

Witnessed the introduction of Sunfeast as the Company

entered the biscuits segment

200
7

Entered the branded snacks category withBingo!

201
0

launched noodles brand Sunfeast Yippee in the Indian market

Major ITC Brands

Sunfeast Brand Extention

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

Sunfeast made its

first brand extension
in 2005 when it
launched Sunfeast
Pasta Treat and
created the pasta
category in the Indian
market
In September 2010 ,
the brand launched
its noodles brand
extension- Sunfeast
Yippee.

Sunfeast
Biscuits
Sunfeast
Yippee
Noodle!

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.

Yippees 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
Average unit
price increases
by 8% in current
terms in 2014

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

Nestl 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

INR million

2009 2010 2011 2012 2013 2014

Chilled Noodles

Frozen Noodles

Instant Noodles
- Cups/Bowl Instant
Noodles
- Pouch Instant
Noodles
Plain Noodles
Snack Noodles

Noodles

40.00%
34.10%
35.00%
30.00%

14,401

19,274

24,962

31,028

37,810

45,562

207

240

274

312

353

396

14,194

19,034

24,688

30,716

37,457

45,166

4,369

4,850

5,344

5,904

6,502

7,228

18,77 24,12 30,30 36,93 44,31 52,78

0
4
6
2
2
9

Sales of Noodles by Category: Value 2009-2014

Instant Noodle
Product Category

218% in

grew by
last 5 Years!

29.71%
24.42%

25.00%

21.95%

20.58%

20.00%

Sunfeast
Category

15.00%
10.00%
5.00%
0.00%
2010

2011

2012

2013

MAR KET GROWTH RATE- POUCH INSTANT NOODLES

Market Growth rate

has been declining
over the years.
From 34% in 2010,
it came down to
20.6% in 2014

2014

Indian Noodle Market

Major Players 2014

Year

YippeesMarket
Share

2014

10.81%

2013

8.31%

2012

5.30%

2011

3.40%

2010

0.71%

Nestl India Ltd

ITC Ltd

1%

Bambino Agro Industries

Ltd

13%
1%
1%
2%

Indo Nissin Foods Ltd

Capital Foods Ltd

3%

MTR Foods Ltd

5%
11%

63%

CG Foods India Pvt Ltd

Hindustan Unilever Ltd
Others

Nestle with its

Maggi Brand,
continues to be
the LARGEST
PLAYER in the
product category

Sunfeasts market
share has grown
from 0.71% in
2010 to 10.81%
in 2014

Segmentation-Targeting-PositioningYippee Noodles

Demographic Segmentation

People looking for a

healthy snack
when hungry

Target Group

Young people and

children from upper
and middle class

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.

Product
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
Place
ITCs biggest Distribution
reach has brought of
greater
advantage
to
Yippee
Penetration
into
rural
areas at a rapid pace

Marketing
Mix

Price
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
Promoti
Company
onheavily
emphasizing on Benefit
Positioning Concept
Deal with Paytm for Cash
back
All ads show how Yippee is
different and better from
Maggi

Competitive Frame of Reference

POPs
Similar Pricing
Instant ready to eat
noodles category
Available in different sizes
Targeted mainly at kids
Similar packaging

POD
s

Round shape of packaged

noodle content instead of
rectangular that keeps the
noodles intact and long
and smooth
Yippee noodles dont lose
the original taste even
after hours of cooking
unlike Maggi whose taste
deteriorates after

SWOT Analysis
Strength

Weakness

Opportunity

Threat

Good advertising and visibility

Good product distribution and availability
Lots of flavors and varieties available
Media generated news about health issues
Brand loyalty of Maggi is tremendous
Ban on Maggi
Untapped rural markets keeping in mind ITCs
Distribution strength
DINKS, single professionals; more
flavors/variants
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-20
14/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-925
616217
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-entersnoodles.html

Thank you!