1. El Equipo, NITIE, Mumbai
GSK StratEdge 2011 – ‘Yoodles’ BTL
KA Ritom Das das.ritom@gmail.com
Syed sarfarfais@gmail.com
Strategies Waheeduddin
Utsav Ghosh ghoshutsav08@gmail.com
Executive Summary
Understanding the retail environment and shopper behaviour for any Fast Moving Consumer Good (FMCG) requires an in
depth study beginning with observing the buying process in action.
The instant noodle market is no exception to this rule. Accordingly this study starts with trends and shopper behaviour
observed at a few major Modern Trade (MT) outlets (Food Bazaar Supermarkets). Based on observations, conclusions are
drawn regarding current and potential target segments for DEMETER’s “Yoodles”. Insights regarding the Stock Keeping
Units (SKUs) most preferred by target segments and influencers and decision makers, who are to be targeted through
promotions for maximizing sales are also provided.
Next a list of Below the Line (BTL) activities and key drivers of sales at MT outlets is developed through secondary
research. These are classified under 3 of the 4 ‘P’s of the marketing mix. The ‘P’ for place is not separately considered as the
distribution channel is necessarily MT and hence the place is fixed. A head for ‘Customer Engagement’ is added, as BTL
activities for engagement differ considerably from traditional BTL activities. The study then measures the effect these
activities have on the customer buying process. The customer buying process is modelled by the AIDA – Awareness,
Interest, Desire and Action model. The effect of the BTL activities is measured by observation and focus interviews with
existing and potential customers in the instant noodles category. Once the influence exerted by each activity has been
quantitatively measured Paretto analysis is used to determine which activities are major influencers. A list of 12 such BTL
activities is prepared.
After identifying the key drivers, the study formulated 2 innovative strategies around these BTL activities.
The first of these is a complete BTL sales plan – the “Complete Meal” campaign which seeks to make “Yoodles”
synonymous with healthy eating for shoppers
Next is a customer engagement model – “NutriVans & Eat Healthy Contest” which drives trials and awareness while
simultaneously getting customers involved with the idea that eating “Foodles” is eating healthy.
Each of these is described in detail together with associated BTL activities and key drivers. A few more strategies like the
floor poster idea – which is a radical approach to advertising in MT outlets and the collectibles model – to drive sales growth
are also discussed.
Finally a cost benefit analysis of these strategies is performed and the results are used to calculate the Return on
Investment (ROI) for the same.
Objectives
The five-fold objectives of our study are to:
1. Understand the instant noodles market in India
2. Understand shopper behaviour in this category through store visits and observations
3. Build a list of BTL resources which influence customers the most in the buying process
4. Use the above list to create a BTL sales plan and a customer engagement program for DEMETER’s “Yoodles”
5. Provide a reliable cost, benefit analysis and return on investment figure for the proposed strategies and a return
2. El Equipo
Insights
Methodology
Our research was conducted through store visits to the Food Bazaar, supermarkets in 3 Big Bazaar Stores (R City Ghatkopar, R
Mall Mulund, Milan Mall Santa Cruz). Each visit involved observation of and interviews with shoppers. Each visit took around
3 to 4 hours to complete. The total sample size for our research was 115 customers.
Understanding Shopper Behaviour
The first step to understand shopper behaviour was to understand the segments of shoppers. By observation we found that
shoppers of instant noodles can be divided into 5 segments on the basis of demographics:
Next we looked at popular Stock Keeping Units (SKUs) and popular flavours bought by each segment. We also looked at other
aspects like who do people normally shop with and awareness levels of various segments.
The dark colours in a cell show that a high % of the corresponding segment is involved. The main insights of the analysis are
as follows:
Target Segments for “Yoodles” - Here we look at customer preferences in terms of brands and varieties. Primary target
segments are medium income families with children and high income families. Single salaried shoppers have also shown
interest in multi grain noodles and are a possible target segment for “Yoodles”.
Must have SKUs - Any instant noodle marketer must have the 1, 4 and 6 pack SKUs in stock at stores. For “Yoodles” 1 and
4 packs should never have stock outs. 6 pack if not present should be introduced.
Promotions - Children are influencers for medium income families during shopping. “Yoodles” can introduce promotions
specifically targeting children to maximize sales. Mothers and single shoppers should also be targeted.
Competitor Analysis
Maggi, due to its superior brand recall is a major
competitor. “Yoodles” competes with Maggi for
every purchase of a 4 pack. However Maggi’s multi
grain variety is not very popular at present.
HUL’s Knorr Soupy Noodles, due to its association
with soups and therefore healthy eating is a big
competitor. “Yoodles” needs to build stronger
brand associations with health to leverage health as
a differentiating factor.
3. El Equipo
Pareto Analysis
The above analysis identifies target
segments, competitors, SKUs required
and buyers to be targeted through
promotions and advertising. Next we
find out which BTL resources or
activities influence customers the most.
Key Drivers for Purchases
Based on our secondary research we have identified 22 BTL activities for MT outlets (shown in the figure above)
These have been grouped under 4 heads – Product related, Price related, Promotion Related and Engagement Programs
The last P of the marketing mix i.e. place is fixed as the distribution channel is only modern trade outlets
A study on the influence these activities have on consumer buying process was done through focussed interviews and
observation of customers. The activities which are identified to have a major influence (67 %) are shown in the bar chart
below. Note the while the Paretto diagram with cumulative effects is not shown each activity’s % influence on the buying
decision is shown.
% Influence on Buying Decision
Now the buying process for instant noodles can be represented as a 4 step AIDA model as shown below:
Attention /
Interest Desire Action
Awareness
Strategies using the identified BTL activities will influence the consumer in the Interest and Desire phases primarily, while a
few may also help in generating Attention. Ultimately these strategies built around these activities maximize chances of a
purchase i.e. Action.
Accordingly next we will compare a few innovative strategies on the basis of the BTL activities covered and provide a detailed
BTL Sales Plan for “Yoodles” at “Duzy Pasar”.
4. El Equipo
Strategy Proposed & Recommendations
Strategies proposed for DEMETER are
summarized in the table shown. Each
strategy is built around key drivers or
market stimuli which influence
customers the most.
Complete Meal Campaign –
BTL Sales Plan
Purpose – Drive sales by creating an
association of health with “Yoodles”
Visibility and Activation
Dr. Health - Usage of a Doctor’s image on posters with “Yoodles” packs
Shelf Storage Cartons - For holding “Yoodles” packs on Gondolas. Cartons will have
the Doctor’s image on the front. This will differentiate the “Yoodles” rack from the
competition.
Health Baskets - “Yoodles” packets will also be kept in 3 X 3 X 3 baskets near billing
counters. These baskets will have the doctor’s image on a cut-out behind them. We
propose 2-3 baskets per store
Health Facts – Small health tips to be put on the back of the HealthMaker sachet
provided with “Yoodles”
Promotions
Healthy Combo - Combo packs of “Yoodles” with an established health drink like
“Horlicks” exclusive to “Duzy Pasar” stores. Combos are created at the store itself.
Key Drivers for Customers
Differentiating Product Characteristic – Health
Advertisements near Product racks and Unique Packaging – While “Yoodles” may be stocked alongside competitors,
shelf storage cartons will help it get noticed more often.
Advertisements and product placement near billing counters – Generate more sales through impulse buys from Health
Baskets
Customer Engagement Program – NutriVans & Eat Healthy Contest
Purpose – To engage customers, generate trials and awareness
NutriVans – Vans will stop in front of Duzy Pasar stores.These vans will hand out
free product samples to interested customers.
Eat Healthy Contest – Mothers can submit tasty and healthy recipes for cooking
“Yoodles” at these vans. The best recipe along with the names of the Mother and
the Kid will figure on the back of the 4-Grain “Yoodles” packs.
5. El Equipo
NutriVans & Eat Healthy Contest – Key Drivers for Customers
Product sampling – To generate trials
Product demonstrations near stores – For higher visibility near point of purchase
Competition around Product Characteristics – While not a top driver across categories this is a top driver for medium
income families with and without children
Other than these two primary strategies a few other strategies suggested for DEMETER are as follows:
Floor Posters
What is it? – Advertisement stickers of “Yoodles” to be stuck on the floor in MT
outlets.
Why use it? – Customers rarely look up at ceiling hung banners during shopping and
with the increasing proliferation of BTL advertising rarely registers these ads.
Looking down at the floor is common while putting selected products into the
trolley and sometimes while wheeling the trolley. The floor has a high visibility rate.
Where? – Research shows instant noodles purchasers also purchase vegetables, soft
drinks etc. The best place to put floor ads for “Yoodles” would be the beginning of
the instant noodles aisle and in front of the racks of above mentioned products.
Collectibles of Famous Animation Characters
Giving cardboard models free within packs of “Yoodles” assures sales due to the
children desiring the same. E.g. Models of Kung Fu Panda movie characters
The model once taken home or to school by the child will then act as an interest
generating tool for other children.
If the model is part of a series it will also drive more sales from the same customer
so that the child can collect all the collectibles.
Targeting to Salaried Single Shoppers
A healthy eating app can be launched for touch enabled smart devices. This would
involve the player making a healthy bowl of “Yoodles” by chopping and dicing
ingredients
A health noodles page can be launched on Facebook promoting lively discussion on
recipes and varieties of all noodles. DEMETER should not intervene in this discussion
rather it should be driven by consumers after introducing relevant topics.
ROI Analysis
The Cost- Benefit Analysis of the strategies
being proposed shows a total benefit of
Rs. 52,20,000 at an incurred cost of
Rs. 36,11,429 calculated over 3 months
considering 100 Duzy Pasar stores. Thus the
Return on Investment stands out to be at 45%
which is significant.