Competitive Analysis Of Yippee Noodles

Presented By: Dipesh Vageriya Roll No.: 1649 FMS-IRM, Jaipur

Formerly known as Imperial Tobacco Company of India Limited (ITC).

ITC stands for Indian Tobacco Company of India Limited.

One of the 8 Indian Companies to feature in ‘Forbes A-list’ for 2004

Only Indian FMCG Company to feature in Forbes 2000 List

One of the foremost in the private sector in terms of : Sustained value creation (BT-Stern Stewart survey) Operating profits Cash Profits

– To fund its cash guzzling FMCG start-up, the company is still dependent

upon its tobacco revenues. Cigarettes account for 47 % of the company's

turnover, and that in itself is responsible for 80% of its profits

ITC One of India’s most valuable and admired companies

ITC Business Portfolio

,

Paper & PackagingHotels Agri Business Information

Technology

Cigarettes Personal CareFoods Lifestyle Retailing

Education & Stationery Matches Incense Sticks

• Maggi Nestle

• Foodles Horlicks

• Knorr Soupy Noodles HUL

• Top Ramen Indo-Nissin

Major Player In India

Maggi75%

Yippee15%

Other10%

Sales

Market Share

Primary• To study distribution practices of the ITC & Contrast with

nestle and other companies• To identify factors influencing retailers brand choice.• To examine comparative service quality across retailer base.• To provide necessary policy implications to augment brand

image of Yippee after research is carried out.

Secondary• To ensure availability and visibility of ITC’s Noodles at

Retail outlets.• To offer suggestions for increasing market-share of ITC in

Noodles Industry

Objective of the Research

RESEARCH METHODOLOGYResearch Design

Exploratory

Area of Sampling

Jaipur

Sampling Technique

Convenient Sampling

Sample Size453

Tools & Technique

Bar Graphs

Pie Charts

Percentages & Average

Research Instruments

Questionnaire

Personal Interview

Data Source

•Primary•Secondary

• Non response: Out of the total respondent surveyed some of them were not

cooperative due to which accurate prediction was not possible

• Biased Response:

The responses given by the respondent are assumed to be true however chance of getting false and biased information can’t be look fully.

• Confined Study:

The study was confined to the Jaipur city only.

LIMITATION OF THE STUDY

ANALYSIS AND INTERPRETATIONS

SALESMEN’S VISIT TO THE MARKET

ITC

Nestle

HUL

0 50 100 150 200 250 300 350 400 450 500

453

338

380

DS Visit

DS Visit in a week

Once a Week

Twice a Week

Thrice a Week

More

0 50 100 150 200 250 300 350 400 450 500

453

0

0

0

287

51

0

0

302

50

20

0

HULNestleITC

Availability of Product

ITC

Nestle

HUL

0 50 100 150 200 250 300 350 400 450 500

250

453

170

Availability Of Product

Availability Of Product

Preferred company

ITC20%

NESTLE75%

HUL5%

Prefered Company

Total outlets ITC NESTLE HUL

453 90 340 23

FACTORS AFFECTING PREFERENCE AMONG RETAILERS

Consumer Demand

17%

Schemes33%

Price Differentiation6%

Good Services

44%

TOTAL OUTLETS

FAVORONG ITC

Consumer

Demand

Schemes Price

Differentiation

Good Services

90 15 30 5 40

TOTAL OUTLETS

FAVORONG NESTLE

Consumer

Demand

Schemes Price Differentiation Good Services

340 320 20 0 0

Consumer Demand

93%

Schemes7%

Nestle

ITC Nestle HUL

Total Yes No Total yes no Total Yes No

453 350 103 338 290 48 380 300 80

Grievance handling by DS

Yes77%

No23%

ITC

Yes85%

No15%

Nestle

Yes79%

No21%

HUL

Continue……

Time Gap between order captured and delivery

Same day 1 Day 2 Day 3 Day More0

50

100

150

200

250

0

120

220

6350

0

200

60 5028

0

100

180

6040

ITCNestleHUL

ITC Nestle HULSame day 0 0 01 Day 120 200 1002 Day 220 60 1803 Day 63 50 60More 50 28 40

One Time Full Delivery

ITC Nestle HUL0

50

100

150

200

250

300

210 200

250243

138 130YESNO

Payment Term

ITC Nestle HUL

Only Cash 159 250 200

Only Credit 172 30 120

Cash + Credit 122 58 60

Only Cash35%

Only Credit38%

Cash+Credit27%

Payment Term Of ITC

Only Cash73%

Only Credit9%

Cash+Credit18%

Payment Term Of Nestle

Only Cash52%Only

Credit32%

Cash+Credit16%

Payment Term Of HUL

Continue……

Credit Period

One week Two week Three week More

ITC 170 80 44 0

Nestle 50 30 8 0

Hul 110 50 20 0

One week58%

Two week27%

Three week15%

Credit period of ITC

One week56%

Two week34%

Three week10%

Credit period of Nestle Continue……

One week61%

Two week28%

Three week11%

Credit period of HUL

D&D(Damage and Destroy) satisfaction

Yes No

ITC 295 158

Nestle 250 88

HUL 250 130

Yes65%

No35%

ITC

Yes74%

No26%

NESTLE

Yes

65%

No

35%

HUL

Continue……

Managing Stock Out

Contact Ds30%

Contact WD directly

20%

Other50%

Managing Stock Out

Total Outlets Contact Ds Contact WD directly Other

453 135 90 225

FINDINGS

FOOd

Credit System

Margin

Distribution Network

Stock out

Wastage

Promotion

• During the project, it was found most of the retailers were complaining against the supply of the expired stock by ITC WD’s.

• In the area I visited the market share of Nestle is four times more than ITC.

• As far as the retailers‘ preference towards the brand is concerned, they clearly favor Nestle, solely on the basis of consumer demand.

• Nestle also gives its retailer 1-2% cash discount regularly.

Continue……

• ITC can launch other flavors of Yippee.

• Door to Door sampling to make the people aware.

• Focus more on advertisement as some consumers are not aware of the product.

• Opt for a differentiation strategy because even if people buy yippee, they demand it as “maggi dena”.

• Improve the taste of classic flavor

• Change its packaging style as its similar to Maggi.

• Retailer should be provided some attractive schemes.

Suggestions And Policy Implications

• Retailer should be provided with a helpline no. so that they can solve their problem.

• Cash discount should be given to the retailer to encourage prompt cash payment.

• ITC can use the canopy system to prepare the Yippee at counters and invite the people to taste it at malls.

• Improvement needed in regular supply.

• POP and display activities should be on regular basis.

• There should be a training for salesman because salesman also sale the Yippee with name Maggi.

• Schools can also be targeted for making awareness among the kids because they are the major consumer.

Continue……

SWOT ANALYSIS

Strength

• Wide expanded distribution network.

• Sales and distribution activity is done in a timely manner.

• Well established Image of ITC.

• Regular supervision of market.

• Direct dealing with retailer.

Weakness

• Promotion strategy of yippee.

• Brand image of yippee.

• Less flavor availability.

• Packaging is not effective

•Non availability of family pack.

Opportunity

• Still the rural market is untapped.

• Scope for target oriented sale offer for retailer.

• ITC can increase the packet size.

Threat

• Pre-Established Strong Brand Image of Maggi.

• Additional discount and schemes offered by other companies.

Continue……