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Competitors of Maggi

Competitors of Maggi

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Published by Mridula Das

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Published by: Mridula Das on Mar 31, 2012
Copyright:Attribution Non-commercial


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Maggi has certainly been the leading brand in the noodle industry for decades .But there are other brands as well which have given close competition to Maggi in the past and in the present as well.

Top Ramen is the second largest Noodles brand in India trying hard for the past 18 years to beat Maggi Noodles. Top Ramen is a global brand from Nissin. Launched in 1991, Top Ramen has been trying all possible marketing tools to dethrone Maggi. First occasion was when the brand was launched, the brand quickly went into limelight with its famous positioning as Smoodles. But after the initial trying, people again went back to Maggi noodles. The next occasion was when Maggi changed the taste. That was an occasion where, as a brand loyalist , people dumped Maggi .For a while people consumed Top Ramen. When Maggi reversed the taste, many people again switched back. Top Ramen at that point of time was one of the heavy advertisers in the media. And since the taste was also comparable, many Maggi users may have switched to this brand. But it could not retain all the customers . One factor is the price. Top Ramen was always perceived as a premium brand compared to the affordable Maggi. The high price may have prompted many Maggi users to switch back. Another factor was the promotion. Top Ramen could not sustain the share of mind it generated during the formative years. Maggi was able to bring in lot of noise because it had become an umbrella brand and was advertising for various other products. Top Ramen had an interesting distribution strategy. For the past 10 years, the brand has been distributed by Marico. It is a case of marketing alliance where Top Ramen was utilizing the distribution strength of Marico. In 2008, the alliance was mutually called-off. Now Nissin is building its own distribution network. It is puzzling to see that a global brand with lot of support from its parent could not put up a big fight with Maggi .The major issue faced by Top Ramen was the differentiation. Top Ramen could not offer any serious differentiation to Maggi either in terms of the product or brand. Since there was no serious differentiation, Maggi was able to gain back the lost ground because it was the pioneer brand who built the category. Top Ramen also lost out when Maggi repositioned itself in the health platform.

Top Ramen did not have any worthwhile campaign in its 18 years of existence. It has been doing the right things in the market but somehow the brand is not able to manage the perception among the consumers. the brand is not giving enough reasons to change the addiction to Maggi brand. Top Ramen to many people is heavily associated with Curry Noodles and that is one of the reasons why many people did not buy the brand. Top Ramen currently holds more than 90 % share in the cup-noodles market. The segment aimed by Top-Ramen is 16-35 . Cup-Noodles is targeting adults. This brand is credited with innovating a new category of cup-noodles in Indian market. When Maggi launched its rice noodles. Even it is not giving enough reasons for kids to buy this brand. So the brand has not been remaining dormant. it is ready to eat just after adding hot water into it. When Maggi repositioned itself as a healthy food. Unlike instant noodles where the brands are targeting kids. Except for the first phase of brand promotion. Maggi has recently entered the cup-noodles market with its brand Cuppa. Top Ramen should have followed since it could have added value to the brand. curry noodles have both gravy. It is expected that the entry of new players will expand the category. Top Ramen is also credited with the launch of curry-noodles in India.Top Ramen had its share of innovations. Hence as a customer. . Top Ramen should have followed suit since the market was moving towards healthy foods.Mania. While ordinary noodles are dry. The difference between cup noodles and instant noodles is that cup-noodles need not be cooked. It is in the promotion front that Top Ramen has failed to make an impact.

.MAGGI VS YIPPEE NOODLES ITC has always taken a very aggressive approach from the day it entered the FMCG sector and has been giving a very tough fight to the already established players because of the financial muscle that it has and the wider and deeper reach that ITC has got even in the rural markets because of its tobacco business. this product category has also seen a lot of activity with the launch of many new brands like Horlick’s Foodles by Glaxo Smithkline India. which is dominated by Maggi from decades. Knorr from HUL. These players have been fighting out the competitive battles to get the most of the instant noodles market of the around Rs. This always provides it an edge even over the established players in the market as not many players in India have got such a deep and a wider reach for making the products available to customers in almost every nook and corner in India. etc. Recently. 1300 crore and which is growing continuously at around 17-20 percent growth rate. And ITC has taken the same approach for the newly launched noodles brand Sunfeast Yippee in the Indian market. All these players are giving Maggi a tough fight and are eating out into the almost 70 percent market share that Maggi has got in this market (Source – Business Standard). Ching’s secret by Capital Foods Ltd. Tasty Treat by Future Group.

which had already become a well-known name in the Indian households because of the equity that the brand had gained in the minds of the consumers. 2 – Then it used the Sunfeast brand. And ITC has also taken the same approach by focusing its noodles brand Sunfeast Yippee as a brand using the benefit positioning concept in which they tried to position the product as a better alternative to Maggi on the basis of following three differentiating criteria :- 1 . thereby using the Umbrella branding strategy. 3 – Then third thing that it focuses upon is the fact that Maggi must be had immediately after it is cooked as after sometime the taste deteriorates and you cannot have it. The contents in other options available are in rectangular shape which have to be broken which leads to short pieces of noodles. with GSK focusing on projecting the noodles as a healthy snack option and even HUL focusing on the soupy noodles as a positioning for their brands.The first point used by Yippee to position itself as a better alternative over Maggi was that it was telling the customers that they should have the choice of variety of masala with two variants in their product portfolio – Classic and Magic. whereas in Yippee noodle pack the cake is in round shape which keeps the noodles intact and long and smooth. The biggest advantages available with the Sunfeast Yippee noodles brand are as follows: 1 – The deeper penetration provided by the already well-established and penetrative distribution channel provided to ITC by its channel member in the tobacco business which provides it the most penetrative distribution network both in rural and urban India. 2 – The second point focused on the shape of the contents within the pack. 3 – The financial muscle of the ITC conglomerate to back the company to tackle all the competitive moves in an efficient manner. Thus it has tried to give itself a totally different positioning from the other competitors present in the market and it is the only competitor to Maggi which has decided to take it head on while competing with it. whereas Yippee noodles promises that they can even be had after some time. .And one interesting thing is that all the players in this product category are coming with a completely different positioning in the market. The stress was made upon the point that we want choices in each and everything in life so why not have a choice while having instant noodles.

.available at the price tag of Rs. with two variants available and many more lined up for launch in the coming months. 4 . contents (which was round cake instead of the rectangular cakes as used by other brands).Place – The distribution reach is the biggest asset that ITC has got and Yippee is also using this biggest advantage of ITC to penetrate especially into the rural market at a rapid pace. labeling.The Marketing Mix for Sunfeast Yippee Brand: 1 – Product – It is a product that is different in terms of package (red and yellow contents). Thus all in all ITC has come up with an alternative which seems to be a bit different from all the options that have tried to compete with Maggi and the only alternative that has decided to take the market leader head on through its television commercials which are making direct comparisons with Maggi thought without naming it and showing how Sunfeast Yippee Noodles is a better option than Maggi. 10 to match the competitive prices that the other competitors are offering. 2 – Price. 3 . 90 gram pack (where as the biggest competitor Maggi is offering 85 gm pack).Promotion – The company is focusing very heavily on the benefit positioning concept in their ads focusing on the benefits or the advantages it has over Maggi as a competitor.

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