Comparative Study of Noodles Brand in India

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  • Topic: Maggi, Instant noodles, Maggi noodles
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  • Published : March 27, 2012
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A Project Report
On

Comparative Analysis of competing brands

Subject: Product and Brand Management

College: T. N. Rao College of Management Studies

The year 2010 saw a sudden spurt in this instant noodles category with two major FMCG players, GSK and ITC venturing in. Besides, existing competitors are also trying for a rebound. Circa 1982. All it took was two minutes to woo the hungry souls. The country had just been introduced to a revolutionary product, which took over hundreds of households by their hunger pangs, offering them an instant solution. Maggi Instant Noodles had entered the kitchens of India, the first one of its kind to do so. It was not only a new brand, but also a new food product for many Indians. It's been 28 years since then, and Indian consumers have continued to be loyal to the brand.

The reason is because Maggi has not had much competition. Even though it has been nearly three decades, the brand did not face any serious competition. Instead, in all these years, Maggi has grown exponentially to become a generic brand, and has single-handedly taken the instant noodles category from being almost non-existent, to a Rs 1,200 crore one, of which it currently has, as per industry estimates, a 70 per cent share, approximately.

The only competition Maggi had until now was from the Japan-based Nissin Group's Top Ramen, and the Nepal based CG Foods' Wai-Wai Noodles. Wai-Wai, till recently, was restricted to the eastern market of West Bengal and Sikkim, where it controlled 70 per cent of the market. Its strategy was to first build-up the distribution network, which it successfully did - the brand was available on the shelves of super stores, as much as in the local Kirana stores. It was then that they started building the brand.

Top Ramen, on the other hand, was aggressive in its marketing - it even roped in Shah Rukh Khan as the brand ambassador, but failed to get its distribution network in place. The brand had entered into a distribution tie-up with Marico, the owners of Saffola and Parachute.

However, the year 2010 saw a sudden spurt in this category.

Wai-Wai is now working towards a national presence. The company, which had manufacturing units in Assam and Sikkim, recently set up a new plant in Rudrapur, in Uttaranchal, and is also looking at acquiring a FMCG company in the South/West.

Top Ramen also has moved to set up its own distribution network, besides hiring a new agency Dentsu, to give it a fresh marketing push. The brand has launched itself with a new look and a new taste.

✓ The instant noodle sector in the country is growing at around 15% to 20% annually.

✓ India consumes a little less than 90,000 tonnes of noodles every year.

Some of the major companies producing ready to make noodles in India:

✓ Nestle (Maggi)

✓ Nissin (Top Ramen)

✓ Capital Foods Ltd (Ching’s Secret)

✓ Hindustan Unilever (Knorr Soupy Noodles)

✓ ITC (Sunfeast Yippee)

✓ CG Foods (Wai Wai)

SUNFEAST YIPPEE NOODLES

✓ In September 2010, the brand launched its noodles brand extension - Sunfeast Yippee. ✓ Three years of exhaustive developmental work has gone into the creation of Sunfeast Yippee! ✓ The product has two intrinsic components - the noodle block and the masala mix. ✓ Wheat is a key ingredient of the noodle block.

✓ Indian noodles segment has now become a huge market worth Rs. 1200 crore. ✓ Maggi is the market leader with a whopping 75-80% market share (Business Standard). ✓ A huge market with one major market leader is definitely an attractive one. ✓ That is one of the reason why so many players have recently launched their brand in this segment. ✓ Sunfeast (ITC) is a worthy player to take on the might of Maggi. ITC is a company that is not averse to taking risk and has a huge cash reserve to fight a marketing war with Nestle. ✓ Sun feast Yippee noodles do...
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