This is perhaps the most under-penetrated compared to other FMCG categories.

The incidence of purchase is less because consumers still prefer to cook it at home and consume fresh (and therefore healthy) rather than have the canned or preserved (and therefore not-so-healthy) variety. In short, the biggest issue before packaged soup marketers is this: How does one increase the incidence of consumption and therefore purchase. One way to do that is to dislodge products like cakes and biscuits that are a popular tea-time snack for more than 90% of the Indian population. And thats exactly what Hindustan Unilevers (HULs) Knorr brand of soups, said to be the leader with a 70% share of the Rs 120-crore packaged soup market (source: IMRB household panel), is trying to do. With Bollywood actor Kajol, as the brand ambassador, the new campaign of Knorr focuses on redefining soup as the ideal snack to satiate the 7.00 pm pre-dinner hunger pang. The TVC starts with a little boy presumably speaking to his stomach, which has been begging for some snacks since the clock struck that tricksy hour. On realising that her son was talking to himself, mummy (Kajol) asks what he is up to. Our boy explains that it was not him but his stomach that is craving for something to nibble on before dinner. Mummy is adamant: If he has something then, he would probably skip dinner. Our boy wonders if he should be listening to his tummy or his mummy! In the next shot mummy moves into the kitchen and reaches for a pack of yummy Knorr soup. She says, Knorr soups with 100% real vegetables is so healthy that mummy is happy. She prepares a bowl of soup in a jiffy and her son gulps it down in no time. The ad ends with a voice over stating: At 7.00 pm, Knorr soups: Now Tummy is happy and Mummy is happy." The tag line aptly sumsup the campaign proposition: Itna healthy ki mummy bhi khush, itna tasty ki tummy bhi khush. The objective of the campaign is to position soups as part of the consumers daily food routine in an interesting and relevant way, by owning the pre-dinner slot. The companys brief to its creative agency, Lowe Lintas, Mumbai, was to focus on category building. Soup is not part of the Indian home consumption menu and the main task for us was to find a space for it in the Indian diet and make it part of everyday menu. If the child is hungry at 7.00 pm and ends up eating just about anything that comes his way, the idea of family dinner goes for a toss. If mummy refuses him his snacks the child is unhappy, if he eats junk and refuses dinner mummy is unhappy. We decided to build on this idea, says Iyer of Lowe. Sidharth Singh, category head, foods, HUL, explains the whole idea was thrashed out. The strategic thrust for Knorr in this relaunch is to find a role for soups in the daily Indian menu. The aim is to usurp the vacant spot between 5.00 pm and 8.00 pm as the perfect pre-dinner snack. In fact, soup is an ideal snack, a perfect appetiser that momentarily satiates ones hunger without ruining ones appetite for dinner. Knorr soups promise to be just that.

The television ad campaign took off from August 10, 2009, and will run till the end of February 2010. The campaign has been conceptualised by Arun Iyer of Lowe Lintas and directed by Gauri Shinde of Red Ice Production. The communication programme also includes language ads, innovative out-ofhome displays, print, sampling sessions, among others. The campaign rolls out across six cities Mumbai, Delhi, Kolkata, Bengaluru, Chennai and Pune. The core business for Knorr in the country is soups, says HULs Singh. Keeping in line with the global brand positioningthat is, every meal is an opportunitywe are positioning our soups here as a healthy snack. We have always targeted mothers who face a big problem feeding vegetables to their kids. Keeping this in mind we have positioned Knorr as a solution that makes meal time more fun as it is not only nutritious but tasty as well. The other market players in the packaged soup category are Nestles Maggi, which pioneered the organised packaged soup market in India and Capital Foods Chings brand. Nestles Maggi has been the most aggressive and has taken the lead in launching innovations like the Maggi Hot Cup in single-serve sachets, priced at an aggressive Rs 3 per sachet in a couple of variants. Interestingly, soup brands get the most aggressive with the onset of winter. From the looks of it, the battlelines are being drawn this year well ahead of schedule.

According to various estimates, soup market in India was in the range of INR 100-125 crores (USD 22 mn 27 mn) in 2010. This segment of packaged food has been relatively under penetrated in India but with urbanization and rise in organized retail, rise in income and changing lifestyles, the segment has experienced growth rates of more than 20% year on year in last 5 years. Key characteristics of Indian soup market are : 1. Dehydrated soups dominate the market. It is followed by canned soups which are way behind at second place. Market for instant and frozen soups is nil. 2. In terms of flavors, the choice of consumers has not changed significantly in last few years. The top three flavors are: Tomato (leader position) Sweet corn Vegetable In non-vegetarian flavors, chicken soup is most popular. 3. Supply mediums small retailers / mom-n-pop stores dominate the distribution of soups in India. This is primarily because organized retails is in nascent stage and have low penetration in rural and tier III and lower. It is expected that share of organized retail is expected to increase in future.

Key

market

players:

Indian soup market is dominated by a few players. The market is consolidated and top three players account for more than 90% of the market by value and volume. The key players are: 1. Hindustan Uniliver The company sell soups under Knorr brand and have the largest market share. 2. Nestle India Nestle is another prominent player in the market with its brand name Maggi 3. Capital Foods Ltd. Relatively small and new player (launched in 2008) as compared to top two the company has been gaining market share in last few years. It sells its products under Chings Secret brand name Major soups brands: 1. 2. 3. 4. 5. 6. Knorr (Hindustan Uniliver) Maggi (Nestle) Chings secret (Capital Foods) Sil (Scandin Food) Bambino (Bambino Agro) Campbells (Weikfield Products)

Soup Market in India: Opportunities Indian market presents significant opportunities for soups primarily driven by increasing urbanization, rising income and heavy marketing by the players to make soups part of Indian diet. The penetration is significantly low as compared to western countries. The rise of new players such as Capital Foods indicate that as the market increases, there will be scope for new players with innovative products and correct pricing will be able to gain market share. Introducing healthy soups is one such innovation which is gaining market traction.

Indian noodle market (instant noodles) is estimated at INR 1,300 to 1,600 crores (USD 300 USD 350 mn) in 2010. According to estimates, the market is expected to reach INR 3,000-3,500 crore by 2015 clocking a CAGR of 20%. The market is dominated by instant noodles and Nestles brand Maggi (which was first noodle brand to be introduced in India in mid 1980s). Nestle has virtually dominated the Indian noodle market till now but lately many large FMCG players and retail chains have launched their products in this lucrative space. Urbanization, rising income levels, working couples, interstate migration and changing lifestyle of young India are key drivers for the noodles market. The product was positioned as meal which is filling and can be prepared in just a few minutes, thus offering both convenience and time saving. Trends in Indian noodle market 1. Increasing competition: Competition in instant noodle category has intensified with players such as GlaxoSmithKline (Horlicks Foodles), ITC (Sunfeast Yippee noodles), Capital Foods and Hindustan Unilever launching new products in the market.Private label brands such as Tasty Treat

2.

3.

4. 5.

by Future Group (Big Baazar retail chain) have also been launched an it is expected that many more private label brands may hit the market. New product launches and extensive marketing: All players new or old have been busy launching new products and marketing campaigns. Maggi has launched an extensive campaign with their new productvegetable multigrain noodle. Tasty Treat increased its variants from two to five. Similarly, Foodles is stressing on the health aspect of its products. Stress on health and wellness: As on all other food categories, players are stressing on health and wellness aspects of their products. Maggi launched Atta noodles and multigrain noodles to woo customers while Glaxos Foodles also stresses on the multigrain aspect of their product Traditional flavors still dominate: Masala, chicken and tomato are most popular flavors in the market Addressing rural market: Noodles are primarily consumed in urban India and to expand this market companies such as Nestle have introduced small sized and low cost products to address the demand of rural market. The success of this effort is still to be seen.

Key players in Indian noodle market The instant noodle market is dominated by MNCs, very few local players have a sizeable presence. Some of the key players in the market along with their brands are: 1. 2. 3. 4. 5. 6. 7. Nestle (Maggi) Hindustan Unilever (Knorr Soupy Noodles) GlaxoSmithKline Consumer Healthcare (Foodles) Capital Foods Ltd. (Ching's Secret) ITC (Sunfeast Yippee noodles) CG Foods India Pvt. Ltd.(wai wai) Future Group (tasty Treat)

Opportunities in Indian noodle market 1. Health and wellness theme: Health and wellness theme based packaged food is gaining popularity in India and the market of such noodles is still open as traditional player Maggi is not associated with health but with convenience and taste. 2. Huge Rural market: rural India where close to 60% of Indian population resides is a huge consumption market virtually un-penetrated by any player. Low cost products with appropriate marketing can open up this huge market

3. Research Article: Soup Market in India : Facts, Trends and Opportunities

According to various estimates, soup market in India was in the range of INR 100-125 crores (USD 22 mn 27 mn) in 2010. This segment of packaged food has been relatively under penetrated in India but with urbanization and rise in organized retail, rise in income and changing lifestyles, the segment has experienced growth rates of more than 20% year on year in last 5 years. Key characteristics of Indian soup market are : 1. Dehydrated soups dominate the market. It is followed by canned soups which are way behind at second place. Market for instant and frozen soups is nil. 2. In terms of flavors, the choice of consumers has not changed significantly in last few years. The top three flavors are: Tomato (leader position) Sweet corn Vegetable In non-vegetarian flavors, chicken soup is most popular. 3. Supply mediums small retailers / mom-n-pop stores dominate the distribution of soups in India. This is primarily because organized retails is in nascent stage and have low penetration in rural and tier III and lower. It is expected that share of organized retail is expected to increase in future.

Key market players: Indian soup market is dominated by a few players. The market is consolidated and top three players account for more than 90% of the market by value and volume. The key players are: 1. Hindustan Uniliver The company sell soups under Knorr brand and have the largest market share. 2. Nestle India Nestle is another prominent player in the market with its brand name Maggi 3. Capital Foods Ltd. Relatively small and new player (launched in 2008) as compared to top two the company has been gaining market share in last few years. It sells its products under Chings Secret brand name Major soups brands: 1. 2. 3. 4. 5. 6. Knorr (Hindustan Uniliver) Maggi (Nestle) Chings secret (Capital Foods) Sil (Scandin Food) Bambino (Bambino Agro) Campbells (Weikfield Products)

Soup Market in India: Opportunities Indian market presents significant opportunities for soups primarily driven by increasing urbanization,

rising income and heavy marketing by the players to make soups part of Indian diet. The penetration is significantly low as compared to western countries. The rise of new players such as Capital Foods indicate that as the market increases, there will be scope for new players with innovative products and correct pricing will be able to gain market share. Introducing healthy soups is one such innovation which is gaining market traction.