Indo Nissin Food Ltd

Agenda

Industry Background

Company Profile

MDS Analysis

Conjoint Analysis

Managerial Implications

Industry Background

Rs.1300 crore industry

Impressive growth of 15% annually

Major Players in the market• Nestle India Ltd.• Indo Nissin Foods Ltd.• Capital Foods Ltd.• CG Foods India Pvt. Ltd.

Instant Noodles Market in India

59

9.6

8.2 6.2

4.3 Nestlé India Ltd.

Bambino Agro Industries ltd

Indo Nissin Foods ltd.

Capital foods ltd

CG Foods India Pvt Ltd

Market Share of Prominent Players

GlaxoSmithKline’s (GSK) Horlicks Foodles

Hindustan Unilever’s (HUL) Knorr Soupy noodles

Big Bazaar’s Tasty Treat

Many local brands

New Entrants into the Market

Increasing urbanization Rising demand for convenient food Pouch instant noodles were the fastest growing category

during 2009 ITC is speculated to launch its own instant noodles under the

Sunfeast brand. Manufacturers are now targeting the adult consumers Health and wellness wave in the market Increasing their reach in the rural markets

Market Trends

Indo Nissin Foods Ltd.

Principal Subsidiary of Nissin Food Products Company Ltd, world's leading producer of instant ramen noodles.

Incorporated in 1988

Company Profile

TOP RAMEN

TOP RAMEN CURRY SMOODLES

CUP NOODLES

MUG SMOODLES

Products Offered

1991 : It’s not noodles its smoodles

2002: Shifted positioning from ‘smoother noodle’ to ‘healthier noodle’

2003 : hot, fast and easy

2008 : little strands of happiness

Positioning Strategies

For Top Ramen smoodles and Top ramen curry smoodles :

Children (when they started off)

For Cup noodles and mug smoodles : Adults in the age group of 16-35 yrs who are on

go.

Target Segments

STAR

TOP RAMEN SMOODLES

QUESTION MARK

MUG SMOODLES

TOP RAMEN CURRY

SMOODLES

CASH COW

CUP NOODLES

DOG

BCG Matrix

SECONDARY DATA ANALYSIS

BRAINSTORMING

FOCUS GROUP

MULTI DIMENSIONAL SCALING

CONJOINT ANALYSIS

Methodology

Brainstorming & Focus Group Discussion

Attribute selection:

Final Attributes and Levels selected

Attribute

Levels

Flavor Make Package

Spicy Tarka Atta Packet

Tangy Tomato

Rice CUP

Cheese Onion

Maida Microwave

MDS Output and Analysis

Multi Dimensional Scaling

Multidimensional scaling is to find a representation of the objects in a low-dimensional space.

Used in information visualization for exploring similarities or dissimilarities in data.

Starts with a matrix of item–item similarities

Finally, assigns a location to each item in N-dimensional space

MDS study

Objective of the study: To spot objects in Instant Noodles industry. Establish position of all players in the Instant Noodles market. To identify areas that Top Ramen can tap to increase its market share.

Methodology used:

Identified 13 attributes for the study (using brain storming & Focus Group Discussion) Questionnaire to establish similarities among the attributes Sample size:30

MDS Output

Observations

Respondents Associated Top Ramen instant Noodles with Masala, Hot garlic flavor.

Strong association of Top Ramen with Tomato flavor.

Strong association of Maggi with Atta make, Maida make and Masala flavor.

Associated Top Ramen more with Cup Noodles than Pouch Packets.

Association of all brands weak with Rice make and nutrition.

Inferences

Top Ramen to focus more in Health and nutrition category.

It may also venture into noodles that are ‘Rice make’ since no player is distinctly established herein.

Tap the Atta make segment particularly in Health category.

Can bring more variations in tomato flavor for stronger association.

Conjoint Analysis

Study Design •19 card•12 card

Sample Selection •80 Respondents

Data Collection •Arranging Cards as per preference•Students & Research Scholars

Study Results •Data Validation & Further Analysis

Data Validation

Initial Correlation less than 0.5

11 respondents violation more than 66.66% and maximum of it violating 100%

Violation removal

Respondent set decreased to 69

Average Correlation increased to 0.7

Average percentage of pairs violated went down to 17.4%.

Distribution of Violations

Score Percent

0-5 73.9%

6-10 15.9%

11-15 2.9%

16-20 4.3%

21-25 2.9%

26-30 0.0%

Distribution of Violation

N = 69    

Flavor 36.48%

Tangy Tomato Cheese Onion Spicy Tarka

-6.109 -0.047 6.156

<18.650> <18.099> <20.187>

   

Make 37.59%

Rice Atta Maida

-6.59 6.049 0.541

<13.230> <13.856> <16.938>

   

Package 25.92%

Microwave noodle Cup Noodle Packet Noodle

-5.114 1.514 3.6

<14.599> <14.198> <14.777>

Attribute Importance & Utility Functions Performance

Rice Maida Atta

-8

-6

-4

-2

0

2

4

6

8

-6.59

0.541

6.049

Importance = 37.59%Make

Make

Gro

up

Uti

lity

Make : Analysis

Tangy Tomato

Cheese Onion Spicy Tarka

-8

-6

-4

-2

0

2

4

6

8

-6.109

-0.47

6.15599999999999

Importance = 36.48%

Flavor

Flavor

Gro

up

Uti

lity

Flavor : Analysis

Microwave Noodle

Cup Noodle Packet Noodle

-6

-4

-2

0

2

4

6

-5.11399999999999

1.514

3.6

Importance = 25.92%

Package

Package

Gro

up

Uti

lity

Packaging : Analysis

1 2 3 4 5 6 7 8 9 10 11 12 13 140

2000000

4000000

6000000

8000000

10000000

12000000

14000000

16000000

18000000

Segments

No. of Segments

Dis

tance

Segmentation : No. of Segments

Benefit Segments

 

 

Cluster 1

(We want

Nutrition but

should be tasty)

Cluster 2

(We want

nutritional

noodles)

Cluster 3

(We want good

taste and

convenience)

Size of

cluster (%)

  36.23% 34.78% 28.99%

Factors

  Relative importance (%)

Flavor

  29.8 21.64 45.23

Make

  47.85 57.08 15.52

Package

  22.35 21.28 39.25

  MAGGI CHINGS TOP RAMEN

Flavor Spicy Tarka Tangy Tomato Spicy Tarka

Make Maida Maida Atta

Package Packet Noodle Packet Noodle Packet Noodle

Market Share 24.64% 26.09% 49.28%

Simulation : Case 1 (Real Market Bases)

  Maggi CHINGS TOP RAMEN

Flavor Tangy Tomato Tangy Tomato Tangy Tomato

Make Maida Maida Atta

Package Cup Noodles Cup Noodles Cup Noodles

Market Share 19.81% 19.81% 60.19%

Simulation : Case 2 (Cup Noodles Segment)

Profile 1

  Maggi CHINGS TOP RAMEN

Flavor Tangy Tomato Tangy Tomato Cheese Onion

Make Maida Maida Maida

Package Cup Noodles Cup Noodles Cup Noodles

Market Share 19.51% 19.51% 60.87%

Profile 2

Simulation : Case 2 (Cup Noodles Segment)

  Maggi CHINGS TOP RAMEN

Flavor Spicy Tarka Spicy Tarka Spicy Tarka

Make Maida Maida Atta

Package Cup Noodles Cup Noodles Cup Noodles

Market Share 19.81% 19.81% 60.39%

Profile 3

Simulation : Case 2 (Cup Noodles Segment)

  Maggi CHINGS TOP RAMEN

Flavor Spicy Tarka Spicy Tarka

Tangy

Tomato

Make Maida Maida Maida

Package Cup Noodles Cup Noodles Cup Noodles

Market Share 31.8% 31.8% 36.23%

Simulation : Case 2 (Cup Noodles Segment)

Profile 4

  Maggi CHINGS TOP RAMEN

Flavor Spicy Tarka Spicy Tarka Spicy Tarka

Make Maida Maida Rice

Package Cup Noodles Cup Noodles Cup Noodles

Market Share 48.79% 34.3% 16.91%

Simulation : Case 2 (Cup Noodles Segment)

Profile 5

  Maggi CHINGS TOP RAMEN

FlavorTangy Tomato Tangy Tomato

Tangy Tomato

Make Maida Maida Atta

PackagePacket Noodles Packet Noodles

Packet Noodles

Market Share 19.81% 19.81% 60.39%

Simulation : Case 3 (Packet Noodles Segment)

Profile 1

  Maggi CHINGS TOP RAMEN

Flavor Tangy TomatoTangy Tomato Tangy Tomato

Make Maida Maida Rice

PackagePacket Noodles Packet Noodles

Packet Noodles

Market Share 31.16% 31.16% 37.68%

Profile 2

Simulation : Case 3 (Packet Noodles Segment)

  Maggi CHINGS TOP RAMEN

Flavor Spicy Tarka

Spicy Tarka Spicy Tarka

Make Maida Maida Rice

Package

Packet Noodles Packet Noodles

Packet Noodles

Market Share 31.16% 31.16% 37.68%

Profile 3

Simulation : Case 3 (Packet Noodles Segment)

  Maggi CHINGS TOP RAMEN

Flavor Spicy Tarka

Spicy Tarka Spicy Tarka

Make Maida Maida Atta

Package

Packet Noodles Packet Noodles

Packet Noodles

Market Share 19.81% 19.81% 60.39%

Profile 4

Simulation : Case 3 (Packet Noodles Segment)

  Maggi CHINGS TOP RAMEN

Flavor Spicy Tarka Spicy Tarka Cheese Onion

Make Maida Maida Maida

Package Packet Noodles Packet Noodles Packet Noodles

Market Share 30.68% 30.68% 38.65%

Profile 5

Simulation : Case 3 (Packet Noodles Segment)

  Maggi CHINGS TOP RAMEN

Flavor Spicy Tarka Spicy Tarka Spicy Tarka

Make Maida Maida Maida

Package

Packet Noodles Packet Noodles Microwave

Noodles

Market Share 29.23% 29.23% 41.55%

Simulation : Case 3 (Microwave Segment)

Profile 1

  Maggi CHINGS TOP RAMEN

Flavor Spicy Tarka

Spicy Tarka Spicy Tarka

Make Maida Maida Maida

Package

Cup Noodles Cup Noodles Microwave

Noodles

Market Share 28.99% 28.99% 42.03%

Simulation : Case 3 (Microwave Segment)

Profile 2

Flavor Make Package

Tangy Tomato Atta CUP

Cheese Onion Maida CUP

Spicy Tarka Atta Cup

SUGGESTIONS : For Cup Packaging

Flavor Make Package

Tangy Tomato Atta Packet Noodle

Spicy Tarka Atta Packet Noodle

SUGGESTIONS : For Packet Noodles

Flavor Make Package Against

Spicy Tarka Maida Microwave Noodle Cup-Noodles

Spicy Tarka Maida Microwave Noodle Packet Noodles

SUGGESTIONS : For Microwave Noodles

Thank You