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The Case
Winning the Purchase in Modern Trade for “Yoodles” Noodles in the
Retail Chain “Duzy Pasar” in India
DEMETER is a leader in multiple categories across channels in the country and has been one of the fastest growing Fast Moving Consumer Healthcare (FMCH) /FMCG Company in India over years. The growth rate has surpassed the 20% mark over last 3 years & the momentum is expected to continue in the next 5 years well in line with its vision.
One of the major drivers of growth for DEMETER is the entry into newer categories like the Health & Wellness categories through Sensitive Toothpaste, Nutritional Biscuits and Nutritional Noodles.
DEMETER has been dominant in its current categories of Health Foods Drinks, Analgesic Tablets, Rubs and Antacid. It is clearly no. 1 or no. 2 in all these categories. It’s driving strong product range with focus on consumer preferred, expert recommendation, penetration, consumption, visibility & activation plans.
Modern Trade (MT) is one of the most critical channels of growth for all companies and this channel has been growing with strong focus from all Indian organized retailers. India will also see the entry of major international players across the country.
Modern Trade is the fastest growing channel in the country with approx 7% of Contribution to all FMCH/FMCG companies in the country. The current growth CAGR for the channel is approx 30% over last 3 years and the prediction for the channel growth for next 5 years is pegged at around 30-35%. Contribution of this channel to the FMCH/FMCG companies is expected to be around 14-18% by 2015-16.
One of the biggest USP of the channel is “self service” format where shoppers can interact with the brands and thus visibility/activation and knowledge is a critical input for this channel to drive awareness, trials and repeats for any brand.
“Duzy Pasar” is the Biggest Retail chain in the country with around 200+ hyper stores & has an advantage of early entry into Indian retail market. It has a strong positioning amongst the consumer for both “Quality” & “Discount”. It’s one of the most competitive retail chains & focuses on sales and margin dominance in the retail scenario. They have presence across top 75-80 towns in the country and have a huge consumer base.
Background for “Healthy Noodles”:
DEMETER entered into the Noodles category with its brand “Yoodles” a year back and has seen very strong competition in the category. It’s an impulse category with consumers/shoppers ready to experiment with newer variants and products. The highly impulse category is driven by very strong visibility, consumer promotions and activation for driving sales and shares.
This is a category dominated by single player with market share in excess of 85% across the country. The no. 2 player has a market share in single digit at around 8-9%. Total category size is expected to cross Rs. 2000 crores in 2011.
The differentiated positioning of “Yoodles” is on offering consumers a “Healthier Nutritional Bowl” of Noodles with 4 grain advantage (Rice, Wheat, Ragi & Corn) and “Nutritional Health Maker with Power Vitamins”. This is the 1st Noodles positioned on the health platform in the category.
The launch has been a success for DEMETER with “Yoodles” getting to 3%+ share in the first 6 months of the launch across the country. In Modern Trade too, the shares have been in excess of 4.5% in the first year of the launch.
Two more big FMCGs have entered the category post “Yoodles” making it a highly competitive market with all players gunning for the same pie with high level of competitive inputs on Above-the-line (ATL) and Below-the-line (BTL) initiatives.
Target for “Yoodles”:
“Yoodles” aspires to be a strong no. 2 player in MT channel with more than 15% market share across the country in the “Duzy Pasar” retail chain by end of 2011.
In MT channel, currently the shares for ‘Yoodles’ across the country has varied from 5% to 12% across markets with the average all India share in the range of 7-8% over last 6 months. ATL investment has been of very good level with strategic focus on share of voice across top channels.
The task at hand:
- Understand the shopper buying in the category by store visits and shopper observations to understand the “Buying Behavior” and “Key Drivers for Purchase”.
- Prioritize the focus for DEMETER using the Pareto Principle around BTL resourcing.
- Develop a strong Below-the-line sales plan for “Yoodles” i.e. visibility, activation and consumer promotions in as much details possible with strong focus on ROI and share gain agenda.
- 4) Develop a shopper engagement program around “Yoodles” for shoppers to drive trial and awareness for the brand in the “Duzy Pasar” chain.
Appendix:
- Research Agency data for the category with Channel/State/City splits of volumes
- Internal off take data for “Yoodles” in Duzy Pasar chain
- Example of an activation and visibility plan at basic level
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