ITC Yippee

June 13, 2018 | Author: Gurleen Singh Chandok | Category: Trans Fat, Brand, Marketing Research, Competition, Business
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A market survey report On

ITC Yippee Noodles

Submitted To:

Submitted By:

Prof.Tripti Ghosh

Tanay Pandey Rakesh Balani Deepak V. Mohan Sunali Joshi Pradeep Kumar Binitaswa Malick Trisha Chaturvedi

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Letter of transmittal

April 4, 2012

Dear Sir/Madam,

We as marketing consultant firm are submitting you to the report that you requested. This report concentrates on the relevant study of the problems discovered with possible solutions from our side after conducting a research in the area of Greater Noida.We would like you to have a look  on the report. We will surely welcome your queries.

Regards XYZ market research firm

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TABLE OF CONTENTS

LIST OF GRAPHS……………………………………………………………………4, 5, 6

EXECUTIVE SUMMARY…………………………………………………………...7 BACKGROUND……………………………………………………………………...8 INDUSTRY OVERVIEW…………………………………………………………….8 ENVIRONMENTAL CONTEXT OF THE PROBLEM……………………………..9 SWOT ANALYSIS………………………………………………………...................10 PORTER FIVE FORCES MODEL: Threat of new entry……………………………………………………………………. 11 Competitive Rivalry…………………………………………………………………….. 11 Bargaining power of suppliers…………………………………………………………. 11, 12 Threat of Substitutes……………………………………………………………………1 2 PROBLEM DFINITION/RESEARCH OBJECTIVE…………………………………. 12 APPROACH TO THE PROBLEM: RESEARCH DESIGN…………………………………………………………………..1 2 SAMPLING METHOD………………………………………………………………… .13 QUESTIONNAIRE DESIGN…………………………………………………………. 13, 14 FIELD WORK …………………………………………………………………………. 15 DATA ANALYSIS …………………………………………………………………….. 15 RESULTS………………………………………………………………………………..15

LIMITATIONS…………………………………………………………………………..1 6 RECOMMENDATIONS…………………………………………………………………16

REPORT AND COST AND TIME………………………………………………………16, 17 REFERENCES……………………………………………………………………………17 3

List Of Graphs

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yes no

88

Q1.D o you like to have noodles?

Maggi 00 4 6

Knorr Soupy Noodles

10

Top Ramen Yippee 80 Tasty Treat Foodles

Q2. Which noodles brand do you prefer the most?

4

6

8

Price Nutrition Taste Pakaging Quantity

86

Offer

Q3. What is the factor that fascinates you more in that brand?

2 16 Daily Monthly Weekly 84

Q4. How often do you consume noodles in your meals?

5

0 12 Yes No NA 88

Q5.Are you aware of ITC YIPPE noodles?

Newspaper 2 other

12 8 7 71

Department al store word of  mouth tv

Q6. Which media informed you about Yippee noodles at first time?

6

Executive Summary ITC food division brand Sun feast launched its new product YIPPEE noodles to get a competitive advantage over Maggi and other noodles in the market such as Top Ramen, Foodles etc. but still the leading company may find difficulties to get over the highest market share of  Maggi i.e. 85% approx. The research firm is destined to find out the reasons behind the low market share and the influence of customer satisfaction level behind the same and other such factors that actually contributes to the success of the new product. This research would enable you to know how the market share can be increased that includes various factors such as the consumer behavior towards noodles and Yippee noodles as well including the reasons behind the low market share and the competitors’ scenario in the prevailing market situations that will include descriptive research in the process. Data collection would be preferred as primary as well as secondary for supporting the research done by us and in some other relevant areas. The location preferred is Greater Noida for the convenience and time constraint.

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Background The fight for the lucrative instant noodle market in India is getting more tangled. The latest to  join the battle, business conglomerate ITC Ltd, has decided to take its instant noodle brand, Sun feast Yippee after tasting initial success in south India. According to press report 2010, the instant noodles market in India is pegged at Rs 1,200 crore and is seeing a15-20% growth yearon-year. ITC has launched noodles under its Sun feast brand, FMCG companies like GlaxoSmithKline and HUL and private labels like Big Bazaar's Tasty Treat have also entered this segment. The instant noodle category is a low-penetration product, so there is enough room for four to five players. So the research would cover the market share of this brand as ITC is planning to give a stiff competition to Nestlé's Maggi.

Industry Overview The Indian FMCG sector is the fourth largest sector in the economy with an estimated size of  Rs.1, 300 billion. The sector has shown an average annual growth of about 11% per annum over the last decade. Products which have a swift turnover and relatively low cost are known as Fast Moving Consumer Goods (FMCG) FMCG market is highly fragmented and a considerable part of the market comprises of unorganized players selling unbranded and unpackaged products. Examples of FMCG commonly include a wide range of repeatedly purchased consumer products such as toiletries, soap, cosmetics, oral care products, shaving products and detergents, as well as other non-durables such as glassware, bulbs, batteries, paper products, and plastic goods. Penetration level and per capita consumption in many product categories is very low India has 17% of the world's population and that half of these people are below the age of 25. With a median age of 25 years, increasing numbers are joining the Indian workforce. India's share in world consumer spending is set to enlarge from 1.9% in 2005 to 3.1% in 2020. Income in the hands of younger consumers with a higher propensity to spend is providing optimism to the economy while opening up new categories in the FMCG space. Key growth drivers to the Industry are as follows:  Robust growth in India’s GDP 

Growing urbanization



Evolving consumer life style



Increased income in rural areas



Spending Pattern

 

Changing Mind Set of Consumer Growth in retail industry

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Environmental context of the problem To understand the marketing research problem, it is essential for us to look into the factors that have an impact on the definition of the problem. These factors are the environment in which marketing research problem lies. Now we will discuss various factors related to environmental context of the problem. Past information and forecast: India has 17% of the world's population and that half of these

people are below the age of 25. With a median age of 25 years, increasing numbers are joining the Indian workforce. As we know that target population is young people and children from upper and middle class, there lies an opportunity .India's share in world consumer spending is set to enlarge from 1.9% in 2005 to 3.1% in 2020. Year on year growth of more than 10% has been forecasted for this industry. Objectives: The goal of an organization is to conduct successful marketing research. In this case,

goals of the organization is to know about the opportunity lies for the Yippee brand in the market and constraints which may arise in the growth of this brand. As a decision maker of this report, my objective is to know about the buying habits, attitude, and perception of consumer while purchasing our product. Buyer behavior: Being a central component, it provides valuable insights into the problem.

Buyers are price and quantity sensitive in this case as the competition is increasing in this industry. Maggi was compelled to increase the quantity of the product in line with Yippee. Gradually noodles are used in rural market also. Young consumers, Dinks, and professional prefer noodles over other product due to scarcity of time. Legal environment: Indian regulation under the Food Safety and Standards of India requires

food manufacturers using partially hydrogenated vegetable oil to declare the presence of transfats. But the packages of Maggi and Foodles are oddly silent on trans-fat. Nestlé’s reason is that though Maggi does not contain Tran’s fats, it is not mentioned in the packet “because it is not a legal requirement”. There is not any tough legal requirement in this industry to undertake. Economic environment: The median age is 25 years and average per capita income has crossed

$1000 mark in nominal terms for an Indian. General economic condition in the economy is very healthy. High economic growth is paving the way for more economic reforms which may be beneficial to companies. Disposable income and saving of the people are increasing. Marketing and technological skills: ITC is one of the leading brands in the country. So

necessary marketing and technological skills exists in company to undertake future operation and to give a stiff competition to their competitors. Taking about this in another context, India is one of the maximum internet using countries and it is increasing at a high pace which make the research work simpler to some extent as the means of collecting the responses increases. In this work we will use online data collection method too, which will increase the reliability of the research.

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SWOT ANALYSIS

SWOT Analysis  

Strength

Attractive packaging of the product Low Operation Cost  Good product distribution and availability  3.Lots of flavors and varieties available

Weakness

 

Media generated news about health issues Brand loyalty of Maggi is tremendous

 

Opportunity

Untapped rural markets Rising Income Level  High Spending in Consumer Goods  Dual Income No Kids, single professionals  Newer tastes 

Price wars with other noodle brands  Slowdown in rural demand Threats

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Porter Five Force Model:

Threat of new entry : 

As the market is growing at 15-20 percent annually, new entrants may consider it a profitable venture



As branded players are priced similarly, new players might penetrate by adopting a lower price or by offering more attractive offer at the same price



New players with a distinct USP and marketing strategy may find it easier to enter the market

Competitive Rivalry: 

 

High Competition – Branded Players involved in competition to increase market share, entice new consumers, find new markets Low Quality differences among branded players. Quality difference between branded and unbranded offerings is offset by low price offered by unbranded players



Cost of switching is low as all players have a similar pricing strategy



Brand Loyalty is high for branded players

Bargaining power of suppliers: 

Suppliers provide raw materials such as Atta, mixture of water and flour, spices and other ingredients. Their ability to raise input costs is high.

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 

Higher cost of input commodities leads to lower margins, making the market unattractive for distributors and retailers Shortage of any input material may also affect production and thus impact distribution. Established players like Maggi and others already have a well-established network of  suppliers.

Threat of Substitutes:  

Indian Snack Segment is high-volume Almost similar price of competitors product

Problem Definition/ Research Objective

1. To know about the awareness, frequency, perception and preference of  consumers for noodles 2. To know about the factors that entertain customers in noodles brands. 3. To know about the suitable advertising media for the product. 4. To know about the satisfaction level regarding price and packaging of the product. 5. To know about the competitors in the market

Approach to Problem Research Design The research will make use of both Exploratory methods for the analysis. We are going for this, to find out the reason for liking of competitor product, to check whether there is need to change the packaging of the product, brand awareness about the product and the attributes prefer by the customer during buying a pack of noodle. For this research we are underdoing Mall Interview, Personal Interview and Internet and Mails.

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Sampling Method

After analyzing the target population which are in this case, children of middle class family and single professional and fast food lovers then we design sampling frame consisting following demographics: members of age group of 15-30, of middle class family. Out of which 50% are children’s of age group 15-20, 30% are single professional and 20% housewives. In the surveys

we prefer 45% of male and 55% of female population. Which will be follows by Sampling Technique of Non-Probabilistic method of Judgmental and Quota Sampling? Analysis will be perform on the basis of income, sex and age, awareness, brand preference and buying decision of  the consumer on the sample size of 250.

Questionnaire Design Name: Occupation: Contact: Q1.D o you like to have noodles? Yes

No

Q2. Which noodles brand do you prefer the most? a. Maggi b. Top Ramen c. Knorr soupy noodles d. Tasty Treat e. Foodles Q3. What is the factor that fascinates you more in that brand? a. Taste b. Price c. Nutrition d. Packaging e. Quantity f. Offers Q3. How often do you consume noodles in your meals? a. Daily b. Weekly c. Monthly Q4.Are you aware of ITC YIPPE noodles? Yes

No

Q5. How often do you consume YIPPE noodles in your meals? a. Daily b. Weekly c. Monthly

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Q6. Are you satisfied with the price of Yippee noodles? Yes

No

Q7.Are you satisfied with the packaging of Yippee noodles? Yes

No

Q8. Are you satisfied with the advertisement of Yippee noodles? Yes

No

Q9. Which media informed you about Yippee noodles at first time? a. Newspaper b. T.V. c. Word of mouth

d. Departmental store

Q10. Which media fascinates you more for advertising a product like noodle? a. print b. digital Q11.we will appreciate your suggestions (if any).............................

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Field Work

The insights obtained from the respondents will help in decision making and help company in improving their product, if required. To collect the data, different members of the group will go to hangout areas of Greater Noida in order to take insights from the consumers. The group member will go either individual or in group of two in different markets of Greater Noida to collect the data.

Data Analysis

 



  



12% of the respondents don’t like the Yippee noodles whereas 88% of them like it.

80% of the respondents prefer Maggi over other noodle brands out of which 10% prefer Yippee. The survey predicts that most fascinating factor in the noodle segment is taste over price and nutrition. Most of them consume noodles on a monthly basis. 88% of them are aware of ITC Yippee noodles. Approximately 80% of them are satisfied with the price packaging and advertisement of  the product. T.V. proved to be the most effective channel of advertisement for a product like noodles.

Results 



 



We were able to know about the perception, attitude, preferences and frequency of  purchase from consumers. The research made enabled us to study the competitor’s product preferences over Yippee noodles. We also studied about the suitability of best advertising media for noodles. The research justified the factors that fascinate consumers in their favourite noodle brands. The research enabled us to know whether the consumers are satisfied with the price and packaging of the Yippee noodles or not.

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Limitations



 



Due to less time the researchers were unable to cover large set of respondents which might have provided us with more concrete results. Researchers found the respondents hesitant to fill the questionnaires. Researchers felt that most of the researchers out of preoccup ancy didn’t show interest in responding. The research was not funded by any organisation that restricted us to Greater Noida only.

Conclusion and Recommendation  

  



Company should go for other taste variants as consumers prefer change in tastes. New packaging and introduction of tagline may prove to be beneficial to the future growth of the product. Company should go for new lucrative offers as it tempts the consumers. New distribution channels may be practiced for different markets such as rural and urban. As the survey says company should also focus on introducing more quantity in lesser price. Promotion of the new entrant should also be taken care of in order to position it well.

Reporting Following the quantitative section of the research, an interim presentation report will be submitted. This will be followed by a meeting with firm to discuss the next stage of the research. An outline PowerPoint presentation will be created. Once this has been approved, there will be a formal presentation of all information collected by research, along with conclusions drawn. Copies of report summarizing the findings of all phases of the research will then be distributed to 16

other people in charge. Transcripts of the interviews, Survey forms, Records of the telephonic interviews and online surveys will be provided to the client.

Cost and Time Estimated Cost Travelling Printing Xerox Food Total Cost

Amount XXX XXX XXX XXX XXXX

The approx. time taken for the research was 2 weeks.

References

www.itcportal.com www.imf.org Kotler, Philips, Marketing Management

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