El Equipo, NITIE, MumbaiGSK StratEdge 2011 – ‘Yoodles’ BTL KA Ritom Das firstname.lastname@example.org Syed email@example.comStrategies Waheeduddin Utsav Ghosh firstname.lastname@example.orgExecutive SummaryUnderstanding the retail environment and shopper behaviour for any Fast Moving Consumer Good (FMCG) requires an indepth 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 behaviourobserved at a few major Modern Trade (MT) outlets (Food Bazaar Supermarkets). Based on observations, conclusions aredrawn regarding current and potential target segments for DEMETER’s “Yoodles”. Insights regarding the Stock KeepingUnits (SKUs) most preferred by target segments and influencers and decision makers, who are to be targeted throughpromotions 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 secondaryresearch. These are classified under 3 of the 4 ‘P’s of the marketing mix. The ‘P’ for place is not separately considered as thedistribution channel is necessarily MT and hence the place is fixed. A head for ‘Customer Engagement’ is added, as BTLactivities for engagement differ considerably from traditional BTL activities. The study then measures the effect theseactivities 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 withexisting and potential customers in the instant noodles category. Once the influence exerted by each activity has beenquantitatively measured Paretto analysis is used to determine which activities are major influencers. A list of 12 such BTLactivities 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 thefloor poster idea – which is a radical approach to advertising in MT outlets and the collectibles model – to drive sales growthare also discussed.Finally a cost benefit analysis of these strategies is performed and the results are used to calculate the Return onInvestment (ROI) for the same.ObjectivesThe five-fold objectives of our study are to:1. Understand the instant noodles market in India2. Understand shopper behaviour in this category through store visits and observations3. Build a list of BTL resources which influence customers the most in the buying process4. 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
El EquipoInsightsMethodologyOur research was conducted through store visits to the Food Bazaar, supermarkets in 3 Big Bazaar Stores (R City Ghatkopar, RMall Mulund, Milan Mall Santa Cruz). Each visit involved observation of and interviews with shoppers. Each visit took around3 to 4 hours to complete. The total sample size for our research was 115 customers.Understanding Shopper BehaviourThe first step to understand shopper behaviour was to understand the segments of shoppers. By observation we found thatshoppers 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 otheraspects 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 areas 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.
El EquipoPareto AnalysisThe above analysis identifies targetsegments, competitors, SKUs requiredand buyers to be targeted throughpromotions and advertising. Next wefind out which BTL resources oractivities 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 outletsA study on the influence these activities have on consumer buying process was done through focussed interviews andobservation of customers. The activities which are identified to have a major influence (67 %) are shown in the bar chartbelow. Note the while the Paretto diagram with cumulative effects is not shown each activity’s % influence on the buyingdecision is shown. % Influence on Buying DecisionNow the buying process for instant noodles can be represented as a 4 step AIDA model as shown below: Attention / Interest Desire Action AwarenessStrategies using the identified BTL activities will influence the consumer in the Interest and Desire phases primarily, while afew may also help in generating Attention. Ultimately these strategies built around these activities maximize chances of apurchase i.e. Action.Accordingly next we will compare a few innovative strategies on the basis of the BTL activities covered and provide a detailedBTL Sales Plan for “Yoodles” at “Duzy Pasar”.
El EquipoStrategy Proposed & RecommendationsStrategies proposed for DEMETER aresummarized in the table shown. Eachstrategy is built around key drivers ormarket stimuli which influencecustomers the most.Complete Meal Campaign –BTL Sales PlanPurpose – Drive sales by creating anassociation 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 BasketsCustomer Engagement Program – NutriVans & Eat Healthy ContestPurpose – To engage customers, generate trials and awarenessNutriVans – Vans will stop in front of Duzy Pasar stores.These vans will hand outfree 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 andthe Kid will figure on the back of the 4-Grain “Yoodles” packs.
El EquipoNutriVans & 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 childrenOther 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 AnalysisThe Cost- Benefit Analysis of the strategiesbeing proposed shows a total benefit ofRs. 52,20,000 at an incurred cost ofRs. 36,11,429 calculated over 3 monthsconsidering 100 Duzy Pasar stores. Thus theReturn on Investment stands out to be at 45%which is significant.