Product and Brand Management Project

Identifying the gap and introducing a new

product for HUL’s Knorr in India

Submitted To:

Ms. Sunetra Saha

Submitted By:

Neeraj Naman

A-37

A0101911121

PBM -02

Amity Business School, Noida

1. Introduction to Knorr

Knorr was founded by Carl Heinrich Theodor Knorr in the year 1838. Products

previously sold under the Lipton brand have also been absorbed into the Knorr product line.

Knorr is owned by Unilever since 2000, when Unilever acquired Best Foods. With annual

sales topping 3 billion Euros, Knorr is Unilever's biggest-selling brand.

Knorr products forayed into the Indian market under Hindustan Unilever Limited. It would

not be wrong to say that the category of instant soups was launched in India by Knorr only.

The Knorr range of soups is available in a

number of tasty & exciting varieties. There

is a flavour to literally suit every taste

palate; the Classic range of soups with

flavours like Thick Tomato, Mixed

Vegetable & Chicken Delite, and the

Chinese range with flavours like Sweet

Corn Vegetable, Sweet Corn Chicken &

Hot n Sour & the Instant Soups range with

flavours like Tomato, Mast Masala &

Mixed Vegetable.

Then Knorr launched its range of Ready to cook meals in India. Knorr Ready to Cook

helps the consumer make her family's favorite dishes at home & helps her get restaurant like

taste at home itself. It comes in the Indian Ready to Cook range & Chinese Ready to Cook

range with dishes like Chinese Chilli, Chinese Manchurian, Chinese Shezuan, Paneer Butter

Masala, Dal Makhani, Punjabi Chana Masala and Hyderabadi Biryani.

The latest product line to be added into the product portfolio of Knorr in India is that

of instant Soupy Noodles. Knorr Soupy Noodles, for the first time in India brought together

the fun of noodles with the health & goodness of soups. It is loved by the kids & provides

mothers a tasty and healthy afternoon/evening snacking option for their children. It comes

with 100% real vegetables & carries the ‘Healthy Choice' Stamp. It is currently available in

four variants: Mast Masala, Tomato Chatpata, Chinese Chow & Yummy Chicken.

Knorr as a brand has always set out to empower homemakers & enable them to make

healthy, wholesome & delicious food options. All Knorr products are healthy, completely

preservative free & low on sodium & cholesterol content.

2. Identifying the gap

The instant pasta market is booming like never before. Presently it is like the instant

noodles market was 10-12 years back- low number of companies offering the product in the

market, high likeability for the product, high returns and double digit growth in the sales of

the companies offering the product as more number of customers are willing to add new

products in the portfolio of afternoon/evening snacks they make at home.

Knorr has already associated itself with healthy and delicious alternatives of

afternoon/evening snacks by offering instant soupy noodles, instant cup-a-soup, instant soups

in various flavors and also instant, ready to eat meals like Paneer butter Masala, Chana

Masala etc, so launching a healthy alternative to afternoon/evening snacking seems to be the

perfect product. That is why launching a product line for healthy and delicious Pasta was

chosen.

3. Product Concept & Proposition

3.1 About Pasta

A 1/2 cup serving of cooked pasta (spaghetti) contains a mere 99 calories, less than

half a gram of fat, and less than 5 milligrams of sodium.

Pasta is high in complex carbohydrates, which helps in giving us energy. Instead of a quick

burst of energy, complex carbohydrates provide a "time release" of energy. Athletes who take

advantage of "carbo-loading" eat complex carbohydrates to save up the energy in their body.

Pasta comes in many different shapes and sizes. There are simple string-shaped pasta

like spaghetti and vermicelli, ribbon-shaped ones like fettuccine and linguine, short tubes like

elbow macaroni and penne, decorative fancy shapes like farfalle and rotelle, large sheets like

lasagna, and hollow pasta stuffed with filling, like ravioli, manicotti, and tortellini.

3.2 The Instant Pasta Concept

Today's consumer has redefined traditional eating. This "on-the-go" generation has created a

demand for nutritional pasta that is quick to prepare and portable. In recent years, research

indicates that young urban Indians have continued to find lesser and lesser time to actually

“cook” the food they eat, while its demand for tasty and healthy food that can be

conveniently prepared at home continues to grow.

Therefore, the company should introduce the concept of “Instant Pasta” in order to capitalize

itself in this dynamic market.

The concept that should be used is as follows:

Knorr instant pasta would be available in three sizes:

1. Single serving pack (80 gms)

2. Double Pack (160 gms)

3. Party pack (320 gms)

Knorr instant pasta would be available in six different flavors:

a) Magic Masala

b) Cheesy Cream n Onion

c) Tangy tomato

d) Spicy Italiano

e) Yummy Chicken

f) Red Hot Chilli Pepper

[Knorr] Instant Pasta is a healthier, tastier and faster alternative to making a great tasting pasta in half the time taken to make it using traditional recipes.

[Knorr] Instant Pasta comes in a variety of flavors, shapes and packaging. It is very simple to make and the preparation time is very low.

4. Consumer Profiling (Target Segmentation)

The company should basically target two types of consumers:

a) Kids and teens 8-15 years of age and,

b) College students and young professionals 18- 25 years

For the first class of consumers; buyer can be the mother or the chief wage earner while for

second class of consumers; consumer can be the buyer himself/herself.

Demographics

BUYER CONSUMER

Density Urban Urban

Age 30-35 8-15, 18-25

Gender Male/Female Male/Female

Lifecycle stage Married with children Kids, early teens, young

students & professionals

Minimum household income Rs 30,000 and above Rs 30,000 and above

Occupation Housewife/working woman Students, professionals

Social Class Middle, Upper middle &

High

Middle, Upper middle &

High

Benefits sought

Good health & great taste

for her kids to provide a

balanced diet

Faster and Tastier

alternative for

afternoon/evening snack

Current Status Regular instant noodles &

pasta buyers

Regular instant noodles &

pasta consumers

Average Usage Rate 5-6 packs a week 5-6 packs a week

Loyalty Medium Strong

Attitude Low involvement, habitual Habitual, enthusiastic

5. Competitive Positioning

Knorr Instant Pasta should be positioned as a ready to make, healthy and tasty

afternoon/evening snack specifically developed for children and teenagers. It is quick

and convenient to prepare and comes in a variety of flavors.

Brand Values

Knorr Instant Pasta should be positioned not merely as an instant snack but as a world cuisine

that can replace the old and monotonous snacking options already available, with the wide

range of flavors it provides. The challenge would be to make Knorr instant pasta the healthy

choice for consumers without compromising taste, convenience and affordability.

Knorr believes that good food matters. It adds untold pleasure to our lives. And everyday

meals can be just as magical as special occasions.

Keeping in mind the positioning of Knorr Instant Pasta, Tagline chosen would be: “Ab bane

har evening Healthy” or “Healthy Pasta, Tasty Pasta, Knorr Instant Pasta”

6. Pricing Strategy

As already discussed, there would be three kinds of packs available:

1. Single serving pack (80gms)

2. Double pack (160gms)

3. Party pack (320 gms)

Pricing would be done along the lines of corporate policy, such that all kinds of costs per

pack can be recovered and also sustainable and premium profit margins can be earned.

Pricing would be done keeping in mind the prices of the products offered by the competitors.

So assuming that the production cost for an 80gms pack is Rs. 10/-, the company should price

the single serving pack of Knorr instant Pasta at Rs.15/- (Nestle and ITC have also priced

their pasta products along the same lines only).

So, prices of different packs could be (keeping in mind that the bigger the pack, higher the

margin for retailer):

1. Single serving pack (80gms) - Rs.15/-

2. Double pack (160gms) – Rs. 30/-

3. Party pack (320 gms) – Rs. 45/-

7. Distribution & Sales Strategy

Knorr Instant Pasta will be distributed in the market using standard distribution mechanics for

all existing Knorr products.

Distribution would be carried out as follows:

1. The exclusive distributor for Knorr would buy from Unilever and sell it to various

whole sellers in the target market cities. Since Sales volume would be high, the profit

margin per pack would be relatively low.

2. These whole sellers would then sell to retailers at a higher margin but lower volumes.

3. Retailers will then sell to consumers.

Also, different attractive schemes would be provided to the retailers so that they would

prefer to sell your product instead of competitors’ product.

8. Advertising Strategy

a. Electronic Media

A slice of life TVC for 45 seconds would be developed to thematically portray the

positioning statement in a creative and engaging manner.

Subsequently, shorter adaptations of the TVC will be developed.

The TVC will also be adapted into a radio commercial.

Radio will also be used to deliver branded content via content sponsorships

b. Press Media

The electronic media would be adapted visually

The headline would come from the creative idea used for the TVC

The body of the ad would be formed using the positioning statement and adapting it to

the creative idea

The new tagline for Knorr Instant Pasta would be used

c. Out of Home (OOH) Media

Billboards

Point of Sale visibility

9. Promotion Strategy

Pre launch promotions

Awareness about the product among kids/students would be done by placing a

kiosk/stall in or around the cafeteria in different schools and colleges where free trials

would also be available.

The activation of educational institutions will be replicated at various shopping malls

across the city. Along with awareness and trial objectives, interest in the product’s

offering will be enhanced through various competitions, games and prizes.

Point of purchase promotion in various super markets and stores would be done

wherein a specific area of the store would be dedicated to Knorr and would be names

as “The World of Knorr” where in different aids for promotion like a branded wall,

a store convertor, stickers, floor graphics and electronic screens would be used

Post launch promotions

Instant pasta recipe contest: Consumers would be asked to send in recipes which

they like. The best entry would win attractive prizes from Knorr.

This would help in increasing consumer’s affiliation with the product.

Also a web site can be developed which would hold various events and contests for

the visitors and also help in increasing the awareness of the product among the

consumers.

10. SWOT Analysis

•high brand recall

•strong brand heritage

•wide variety of flavors offered to consumers

•Health consciousness on the rise

Strengths

•Consumers not aware about the benefits

•limited distribution

•product suitable for urban areas only

•indians may not be able to adapt to the taste

Weaknesses

•Disposable income is on a rise, so consumers can spend more

•awareness of healthy and hygenic food is increasing

•consumers exposure to imported food products is increasing with the likes of spencers', wal-mart on the rise

Oppurtunities

•influx of other foreign brands may give rise to stronger competition

• frozen foods can pose a threat to the product Threats