ITC Ltd.s Sunfeast Yippee is making a move to regain its market share by reentering the Rs 10 price range taking inspiration from Nestle. The instant noodles market, which is valued at Rs 40,000 crore has been predominantly controlled by Nestles Maggi with a 55% share. As the player, with a 25% market share ITC aims to bolster its position especially in smaller towns and villages.
ITC has come up with a countermove by introducing a version of their noodles called YiPPee! Wow Masala Noodles, which is priced at Rs 10 for a 50-gm packet. This competitive pricing strategy is a response, to the changing market dynamics and the increasing competition, from local players who have been gradually eating into the market shares of major companies.
Suresh Chand, Vice President and Head of Marketing for Snacks, Noodles and Pasta at ITC Foods highlighted the success of their variant Magic Masala. However, with the launch of YiPPee! Wow Masala, their goal is to cater to consumer demands by providing an delicious flavor in the instant noodles category.
The choice to enter the Rs 10 price range is, in line, with a trend seen in the packaged goods industry as this particular price point tends to attract consumers. ITCs decision comes after Nestle introduced a Rs 10 version of Maggi noodles highlighting the nature of the market and the need to cater to budget conscious customers.
In the midst of these developments’ major players, like Knorr from Hindustan Unilever Ltd., Nissin Foods and Wai Wai brand from CG Corp Global are showing increasing interest in the instant noodles segment. Even Patanjali Ayurved Ltd. Has joined the market with its atta noodles contributing to the changing landscape.
As companies adjust their pricing strategies to deal with the rising costs of materials the competition for consumer attention and loyalty in the instant noodles market continues to grow fiercer. The success of ITCs product YiPPee! Wow Masala Noodles, will depend on its ability to cater to the preferences of consumers and establish a position, in this highly competitive industry.
