- ITC first launched food brands like Kitchens of India and staples brands like Aashirvaad Atta in the early 2000s. - It later launched Sunfeast biscuits in 2003 and entered the branded snacks category with Bingo! in 2007. - In 2010, Sunfeast extended into the noodles category by launching Sunfeast Yippee noodles. Within a few years, Yippee gained market share by leveraging ITC's distribution network and targeting both mothers and children.

1. Brand Extension
Analysis
Himanshu, PGP30022, Sec A

2. • ITC first introduced 'Kitchens of India' in to enter in the food market
• IT Centred the confectionery and staples segments with the launch of the
brands mint-o and Candyman confectionery and Aashirvaad Atta(wheat flour)
• Witnessed the introduction of Sunfeast as the Company entered the biscuits segment
• Entered the branded snacks category with Bingo!
• launched noodles brand Sunfeast Yippee in the Indian market
Company – ITC Ltd.
2002
2003
2007
2010
2001

3. Major ITC Brands

4. Sunfeast – Brand Extention
Sunfeast
Biscuits
Sunfeast
Yippee Noodle!
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
In September 2010 , the
brand launched its noodles
brand extension- Sunfeast
Yippee.
Sunfeast made its first brand
extension in 2005 when it
launched Sunfeast Pasta Treat
and created the pasta
category in the Indian market

5. 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.
Yippee’s 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’.

6. Indian Noodles Market at a glance
Value growth of 19% in
2014 takes noodles
sales to INR 53 billion
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
Average unit price
increases by 8% in
current terms in 2014
Nestlé 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

7. Indian Noodle Market
34.10%
29.71%
24.42%
21.95%
20.58%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
2010 2011 2012 2013 2014
INR million 2009 2010 2011 2012 2013 2014
Chilled Noodles - - - - - -
Frozen Noodles - - - - - -
Instant Noodles
14,401 19,274 24,962 31,028 37,810 45,562
- Cups/Bowl Instant
Noodles 207 240 274 312 353 396
- Pouch Instant Noodles
14,194 19,034 24,688 30,716 37,457 45,166
Plain Noodles
4,369 4,850 5,344 5,904 6,502 7,228
Snack Noodles - - - - - -
Noodles
18,770 24,124 30,306 36,932 44,312 52,789
Sales of Noodles by Category: Value 2009-2014
Sunfeast
Category
MARKET GROWTH RATE - POUCH INSTANT NOODLES
Instant Noodle Product
Category grew by 218%
in last 5 Years!
Market Growth rate has
been declining over the
years. From 34% in 2010, it
came down to 20.6% in
2014

8. Indian Noodle Market
Nestle with its Maggi
Brand, continues to be
the LARGEST PLAYER
in the product category
followed by ITC!
Sunfeast’s market share
has grown from 0.71%
in 2010 to 10.81% in
2014
63%11%
5%
3%
2%
1%
1%
1%
13%
Major Players 2014
Nestlé India Ltd
ITC Ltd
Bambino Agro Industries Ltd
Indo Nissin Foods Ltd
Capital Foods Ltd
MTR Foods Ltd
CG Foods India Pvt Ltd
Hindustan Unilever Ltd
Others
Year Yippee’s Market Share
2014 10.81%
2013 8.31%
2012 5.30%
2011 3.40%
2010 0.71%

9. Segmentation-Targeting-Positioning- Yippee Noodles

10. Demographic Segmentation Target Group
Young people and
children from upper and
middle class
People looking for a
healthy snack when
hungry

11. 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’.

12. Marketing MixProduct
PromotionPlace
Price
• 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
• ITC’s biggest Distribution reach
has brought of greater
advantage to Yippee
• Penetration into rural areas at a
rapid pace
• Company heavily emphasizing on
Benefit Positioning Concept
• Deal with Paytm for Cash back
• All ads show how Yippee is
different and better from Maggi
• Advertising also done to increase
product recall
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

13. Competitive Frame of Reference
POPs PODs
• Similar Pricing
• Instant ready to eat noodles
category
• Available in different sizes
• Targeted mainly at kids
• Similar packaging
• Round shape of packaged noodle
content instead of rectangular
that keeps the noodles intact and
long and smooth
• Yippee noodles don’t lose the
original taste even after hours of
cooking unlike Maggi whose taste
deteriorates after sometime

14. SWOT Analysis
Strength
• Good advertising and visibility
• Good product distribution and availability
• Lots of flavors and varieties available
Weakness
• Media generated news about health issues
• Brand loyalty of Maggi is tremendous
Opportunity
• Ban on Maggi
• Untapped rural markets keeping in mind ITC’s Distribution strength
• DINKS, single professionals; more flavors/variants
Threat • Price wars with other noodle brands esp. biggies like Maggi

15. References
• http://www.itcportal.com/
• http://www.itcportal.com/about-itc/shareholder-value/annual-reports/itc-annual-report-
2014/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-925616217
• 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-enters-noodles.html

16. Thank you!