Knorr Final

Marketing Plan of Knorr Pasta Marketing Management Course April 08, 2010

Prepared By, Muhammad Tahir khan (2908) Syed Hassan Raza Taqvi Syed Mukarram Hussian Badar Jiwani

Submitted to, Sir Sanatullah

Marketing Management Report on Knorr Pasta

Table of Contents .......................................................................................................................................... 1 Introducing Knorr Pasta.......... Pasta....................... ......................... ......................... ..............................................1 .................................1

Term Paper on the Launch Strategy of Knorr Pasta........................................ Pasta........................................ ....1 Table of Contents.... Contents................. ......................... ......................... .......................... .......................... ......................... ........................2 ............2 Background................ Background.... ......................... .......................... .......................... ......................... ..................................... .................................4 ........4

About Knorr....... Knorr................... ......................... .......................... .......................... .....................................................4 ........................................4 Pa ss io n fo r Fl av Pass avor or .......... .................... .................... .................... .................... .................... .................... .................... .................... .................... ......................4 ............4 Ke y Fa ct s .......... .................... .................... .................... .................... .................... .................... .................... .................... .................... .................... ......................... ...............4 4

Product Concept & Proposition...... Proposition.................. ......................... .......................... ........................................6 ...........................6

About Pasta........ Pasta..................... .......................... .......................... ......................... ........................................... ............................... ........6 The Instant Pasta Concept..... Concept.................. .......................... ......................... ...............................................6 ...................................6 Target Market Analysis...... Analysis................... ......................... ......................... .......................... .......................................7 ..........................7

Target Segment Identification (Ideal Consumer Profiling)...................................7 De mo gr ap Demo aphi hi cs .......... .................... .................... .................... .................... .................... .................... .................... .................... .................... .................... ..................7 ........7 Psyc Ps yc ho gr ap hi cs .......... .................... .................... .................... .................... .................... .................... .................... .................... .................... ..........................7 ................7 Cons Co ns ume r/ Bu ye r B eh av avio io r ......... ................... .................... .................... .................... .................... .................... .................... ..............................7 ....................7

Market Potential........ Potential..................... .......................... ......................... ..........................................................8 ..............................................8 Symb Sy mb ol s ......... ................... .................... .................... .................... .................... .................... .................... .................... .................... .................... .................... ..................8 ........8 Calc Ca lc ul at in ing g N .......... .................... .................... .................... .................... .................... .................... .................... .................... .................... .................... ............................ ..................8 8 Determining Q ....................................................................................................9 Dete De te rm in inin in g P............................. ....................................... .................... .................... .................... .................... .................... .................... .................... ...................9 .........9

Competitive Positioning...... Positioning.................. ......................... .......................... .......................... ......................... .......................10 ...........10

Brand Values........ Values.................... ......................... .......................... .......................... ......................... ....................................10 ........................10 Positioning Statement......... Statement..................... ......................... .......................... .......................... ......................... .......................10 ...........10 SWOT Analysis....... Analysis.................... ......................... ......................... .......................... .......................... ......................... .......................11 ...........11 BCG Matrix......... Matrix...................... .......................... ......................... ......................... .......................... .......................... ...........................12 ..............12 Financial Forecasts...... Forecasts.................. ......................... .......................... .......................... ...........................................13 ..............................13

During Test Marketing Period....... Period.................... .......................... ......................... ......................... ............................13 ...............13 Te st Ma Mark rk et De Deta ta il s ......... ................... .................... .................... .................... .................... .................... .................... .................... .................... ...................13 .........13 Soci So ci o Econ om ic Cla ss if ic at io n .......... .................... .................... .................... .................... .................... .................... ................................13 ......................13 Te st Ma Mark rk et Po Pote te nt ia l ......... ................... .................... ..................... ..................... .................... .................... .................... .................... .................... ...............13 .....13 Assumptii on s .............. Assumpt ............................. .............................. .............................. .............................. .............................. ........................... ............ ...... ........... ...........1 ......1 3 Pr i ce ............. ............................ .............................. .............................. .............................. .............................. .............................. .......................... ................ ........... ...........1 .....1 3

Post Test Marketing ......................... .............................................................. ...........................................................14 ......................14 Revenue and Operating Profit Projections... Projections................ ......................... ......................... ................................15 ...................15 Ba si sic c Para Pa ra me te rs ......................... ................................... .................... .................... .................... .................... .................... .................... .................... .................... ...............15 .....15 Forecasted Sales (Units) .....................................................................................15 Fo re ca st ed Sa Sale le s (R s. ) .......... .................... .................... .................... .................... .................... .................... .................... .................... ....................... .............15 15 Fo re ca st ed Op er at atin in g Pro fi t .......... .................... .................... .................... .................... .................... .................... ................................... .........................15 15

Pricing Strategy...... Strategy.................. ......................... .......................... .......................... ......................... ...................................16 .......................16 Distribution & Sales Strategy....... Strategy................... ......................... .......................... .......................... ...........................16 ..............16 Background: Knorr’s Brand Strategy Today..................................................18 Today..................................................18 Communication Campaign....... Campaign.................... ......................... ......................... ......................................... ...............................19 ...19

Campaign Objectives...... Objectives.................. ......................... .......................... .......................... ......................... ...............................19 ...................19 Communication Message ............................. ................................................................. ................................................19 ............19 Advertising Strategy...... Strategy.................. ......................... .......................... .......................... ......................... ............................20 ................20

Electronic Media .............................. ................................................................... ...........................................................20 ......................20 Press Media........... Media........................ .......................... ......................... ......................... .......................... ...................................20 ......................20 Out of Home (OOH) Media................................. Media..................................................................... .................................... .......20

Page 2 of 27

Marketing Plan on Knorr Pasta

Activation Strategy...... Strategy................... .......................... ......................... ......................... .......................... ..............................21 .................21

Out of Home (OOH) Activation ............................ ................................................................ .........................................21 .....21 School / College / University Activation..................................................................21 Mall Activation....................................................................................................22 “Planet Knorr” - Point of Purchase (POP) Activation..................................................22

Leisure Activation....... Activation................... ......................... .......................... .......................... .......................................... ............................. .23 Surprise Pasta @ Cineplex....................................................................................23 Canteen/Cafeteria Branding..................................................................................23 Branded Mobile Vans...........................................................................................23 Sales Promotions.... Promotions................. .......................... ......................... ......................... .......................... ...................................24 ......................24

Consumer Promotion..... Promotion.................. ......................... ......................... .......................... .......................... ............................24 ...............24 Instant Pasta Recipe Contest................................................................................24

Trade Promotion...... Promotion.................. ......................... .......................... .......................... ......................... .................................24 .....................24 Marketing (Communication) Budget....... Budget.................... .......................... .........................................25 ............................25


Background This report forms the launch plan for Knorr Instant Pasta in the Pakistani urban market. The launch plan has been constructed as an academic project for the course titled “Principles of Marketing.” The plan contains our views on the overall product concept and proposition, the product’s target market, positioning, communication, distribution, pric pricin ing, g, and and a broa broad d base based d busi busine ness ss mode modell that that outl outlin ines es proj projec ecte ted d fina financ ncia ials ls subsequent to the launch of the said product.

About Knorr Knor Knorrr beli believ eves es in the the powe powerr of the the cook cookin ing g woma woman. n. Cook Cookin ing g is more more than than just just transforming raw ingredients into a dish. It is the creation of flavor into food, which sparks delight into everyday meals. With the power of cooking in their hands, women create relationships and strengthen bonds. This conviction lies at the heart of Knorr's success - it is Unilever's no. 1 brand.

Passion for Flavor A passion for good food goes right back to Knorr's earliest days. The business was formed in 1838, when founder Carl Heinrich Knorr pioneered experiments in drying seasoning seasonings s and vegetables to preserve preserve their flavour flavour and nutrition nutritional al value. value. Since Since then Knorr has become an international brand offering a wide range of bouillons, soups, seasonings, and other cooking aids that is every cooking woman’s kitchen partner. Soup is at the heart of good food and good nutrition - and the heart of Knorr. Soup naturally enjoys a healthy nutritional profile, can help consumers increase their daily consumption of vegetables and will help them look good, feel good and keep fit. It is well known, for instance, that people who eat more soup tend to have: •

A lower Body Mass Index

•

Lower fat intake

•

Lower energy intake per day

•

Better cholesterol values

•

Better nutritionally balanced breakfasts, lunches and dinners Soup is a nourishing dish offering an almost primitive comfort. That is why Knorr will continue to create delicious soups, based on its long experience of producing soups of all kinds and flavors.

Key Facts Knorr is a trusted and popular brand, recognized and appreciated all around the world: •

•

It's Unilever's no. 1 brand, with annual sales of more than €3 billion. Knorr products are currently sold in more than 80 countries and it is growing fast beyond its European heartland, particularly in Latin America, Africa, the Middle East and Asia. Marketing Plan on Knorr Pasta.

Product Concept & Proposition 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. 1 Pasta is high in complex carbohydrates, which helps give 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. The carbohydrates become glucose stored in the muscles. The glucose energy is then released when needed during long, tiring exercise, like longdistance running or biking. 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, lasagna, and hollow pasta stuffed with filling, like ravioli, ravioli, manicotti, manicotti, and tortellini.

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 Pakistanis 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, we would like to introduce the concept of “Instant Pasta” in order to capitalize on this market dynamic. The concept can be described as follows: [Knorr] Instant Pasta is an alternative and faster way to make 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.


Target Market Analysis Target Segment Identification (Ideal Consumer Profiling) After careful analysis of the market as well as consultation with the Knorr brand team, team, we have have identi identifie fied d the following following market market segment segment to be target targeted ed as ideal ideal consumers for Knorr Pasta:

Demographics Buyer

Consumer

Density

Urban

[Same]

Age

30 – 35

8 – 15

Gender

Female

Male/Female

Family Size

4+

Lifecycle Stage

Married with children

Kids/Early Teens

Minimum Household Income

Rs.25,000/-

N/A

Graduate

Primary/Secondary School

Housewife/Working Woman

Students

Occupation

Psychographics Buyer Social Class

Consumer

SEC A1, A2 or B

[Same]

(Middle, Upper Middle, Lower Upper an and Upper Upper Classes) Lifestyle

Believers

Achievers

Personality

Ambitious, trendy

Extrovert, confident

Consumer/Buyer Behavior Buyer Occasion

Consumer

Mostly commonly bought during daily/weekly groceries by the house wife or the chief wage earner.

School lunch break, evening/general snacks, school night dinner (especially when the main course is not liked),


Benefits Sought

Great tasting alternative to Good health and great taste alread ady y avai availa lable ble/u /unav navai ailab lable le in the food that can be alre prepared quickly and Food in the house. conveniently which her children would readily eat and thus facilitate her in raising them to the best of her abilities.

Status

Regular Buyer

Instant

Noodles Regular Consumer

Instant

Average Usage Rate(s)

6 packs a week

3 packs a week

Loyalty

Medium

Strong

Attitude

Low Involvement, Positive, Habitual

Habitual, Enthusiastic

Noodles

Market Potential Symbols 1. TMSD: TMSD: Total Total Mark Market et Segmen Segmentt Demand Demand.. 2. N: Number Number of Buyer Buyers s in the Market Market Segment. Segment. 3. Q: Quantity Quantity purcha purchased sed by an Average Average Buyer Buyer per per Week. 4. P: Price Price of an an Aver Average age Unit. Unit. Where, TMSD = N X Q X P

Calculating N

� The total population of Pakistan is 160 million, according to unofficial estimates.

3

� The average household size is 5 in the target market segment identified above.2

� Hence, there are a maximum of 32 million households in Pakistan, (assuming that that the average average househ household old size size stays stays consta constant nt across across various various geograp geographie hies s in the country.) � According to human development index (HDI) statistics provided by UN, 15% of Pakistani population is below the poverty line i.e. in absolute poverty. � Hence, (100% - 15%) x 32 million yields 27.2 million households across Pakistan � The urban and rural split in the country’s population is 35%:65%3

Source: Economic Survey of Pakistan, Chapter on

3

Population


~

Hence, 35% x 27.2 million yields 9.52 million urban households or 9.52 million

urban housewives

Determining Q Based upon the buyer and consumer behavior mentioned above, the average units bought per week per buyer is 6.

Determining P Knorr Pasta would be sold at the price at Rs.15/- per unit. The total market segment demand per week i.e. market potential per week is as follows:

TSMD =

NxQxP

=

9.52 x 6 x 15

=

Rs.856.8 million

Note: According to estimates received from Unilever, Knorr Noodles currently has 30% share of this potential market.


Competitive Positioning At Knorr, we want people to enjoy good food, any day, any time. This is why we would like to functionally describe Knorr Instant Pasta as follows: “Knorr Instant Pasta is a ready to make, healthy and tasty meal specifically developed for children and teenagers. It is quick and convenient to prepare and comes in a variety of flavors.”

Brand Values We intend to communicate what Knorr Instant Pasta should mean to our profiled ideal buyers (i.e. housewives within the targeted market segment) and consumers. It is much more than merely an instant meal. It is a passport to world cuisine, adding new ideas and new twists to old favorites. The challenge is to make our products the heal health thy y choi choice ce for for cons consum umer ers s with withou outt comp compro romi misi sing ng tast taste, e, conv conven enie ienc nce e and and affordability. Knorr’s value statement is as follows: “Great food is exhilarating. It elevates us out of the everyday. No matter what your background or cooking skills, we believe that everyone should be able able to crea create te an incr incred edib ible le meal meal with withou outt havi having ng to spen spend d ho hour urs s in the the kitchen. That's why we've taken some of the world's greatest pastas and put them right in your home - inspired by different recipes that stimulate the senses.”

Knorr believes that good food matters. It adds untold pleasure to our lives. And everyday meals can be just as magical as special occasions. Food is not just fuel, it really is the glue of life.

Positioning Statement Based upon the above, Knorr Instant Pasta will be positioned in our target market as follows: “A food solution solution that elevates you out of everyday life and provides provides you the exciting ability to create an incredibly tasty meal without any hassles and thus ensure your family’s good health while remaining within your budget.”


SWOT Analysis Strengths

Weaknesses

~

High Brand Awareness Levels (Recall)

~

Association

~

~ ~

~

~

Low Brand Salience Levels (Consumers are not really aware of the brand’s benefits, despite reasonably high recall)

Strong brand heritage.

~

Limited Distribution

Expanding distribution network.

~

with

quality,

taste,

Wider variety of taste offered to the consumers. Health consciousness on the rise in consumers. Opportunities

~

~

~

(Net) disposable income has increased over the past few years, thus increasing the consumers’ purchasing power. Awar Awaren enes ess s of heal health thy, y, hygi hygien enic ic and and conveniently packaged food is on the rise. Consumer exposure to foreign Products has also increased.

Offering suitable for ur urban only

markets

Threats ~

~

Infl Influx ux of othe otherr fore foreig ign n bra brand nds s in the the same category can give rise to sterner competition Frozen foods can curtail the sales.


Financial Forecasts Detailed financial forecasts are enclosed in the attached annexure. These forecast have been made based upon the information provided below

During Test Marketing Period Test Market Details Test Market

Karachi

Activity Duration

6 Months

Total Test Market Population

16,000,000

Average House Hold Size

5

Total House Holds

3,200,000

Socio Economic Classification SEC

%age age of of Pop Popu ulati latio on

A1

2%

A2

3%

B

15%

C

20%

D

35%

E

25%

Test Market Potential ~ Potential (Targeted) House Holds: 640,000 Assumptions Trial Purchase Rate

20%

Repeat Purchase Rate

50%

Repeat Purchase Frequency

Weekly

Price Price per Package (PKR)

15.00


Post Test Marketing Once the test marketing marketing stage is over, the average monthly volume volume for Karachi Karachi will b e t a ke ke n a s b en en ch ch ma ma rk rk a nd nd t he he f ol ol l ow ow in in g v ol ol um um e s pl pl i t i s e xp xp ec ec te te d a c ro ro ss ss t he he country. City

Ka ra c hi

Vo l um e %a ge

5 0%

Lahore Islamabad

30 %

Fa isa la bad Others

20 %


Revenue and Operating Profit Projections Basic Parameters 981,333

Avg. Monthly Vol. (Units) Annual Sales Increase

10%

Operating Profit

40%

Forecasted Sales (Units) Period

Karachi

Test Marketing

5,888,000

Lahore & Islamabad

-

Faisalabad & Others

Total

-

Year 1 Post Test Marketing

5,888,000

3,532,800

2,355,2 00


12,953,600

3,886,080

2,590,7 20

19,430,400

14,248,960

4,274,688

2,849,7 92

21,373,440

Karachi

Lahore & Islamabad

Faisalabad & Others

-

-


17,664,000

Forecasted Sales (Rs.) Period

Year 1 Year 2 Year 3

Test Marketing

70,656,000

Post Test Marketing

70,656,000 42,393,600

28,262,400

211,968,001

Post Te Test Ma Marketing

155,443,20 0 46,632,960

31,088,640

233,164,801

Post Te Test Ma Marketing

170,987,52 0 51,296,256

34,197,504

256,481,281

Forecasted Operating Profit Peri Pe riod od

Total

Oper Op erat atin ing g Pro Profi fitt (Rs (Rs.) .)

Year 1

84,787,200/-

Year 2

93,265,920/-

Year 3

102,592,512/-


Pricing Strategy Knorr Instant Pasta will be priced along the corporate policy of having sustainable and premium profit margins. The average operating margin for all Knorr products sold in Pakistan is 40%. Knorr Instant Pasta will be sold in a single serving pack. Assuming that the Overall Cost of 1 Pack Sold is Rs.10/- we would price Knorr Instant Pasta at Rs.15/- + GST per pack. Customers usually have a reference price in their mind for a particular product and therefore they might compare the price of knorr instant pasta with the price of knorr noodles. Therefore we have priced it for Rs.15 as in knorr instant pasta we have kept a pasta sauce rather than a powder which makes it different from the knorr noodles and also the cost production increases.

Distribution & Sales Strategy Knorr Instant Pasta will be distributed in the market using standard distribution mechanics for all existing Knorr products. Distribution is carried out as follows: 1. The exclusiv exclusive e distributor distributor for for Knorr Knorr buys from from Unilever Unilever and sells sells it to various various whole whole sellers in the target market cities. Since these are high volume sales, per unit margins are relatively low. 2. These These whole sellers sellers then then sell to retailers retailers at a higher higher margin margin but lower lower volumes. volumes. 3. Retail Retailers ers then then sell sell to consum consumers ers.. Along with the abovementioned, the Sales Force for Knorr is structured to facilitate the entire process. The structure is as follows: Position Territory Sales Officer

Role ~

Revenue Target Driven

~

Responsible for a location/area within the targeted city

~

Liaison with retailers

~

Ensuring product placement, availability and merchandizing at POP/POS Liaison between the retailer and whole seller/distributor

~

Area Sale Manager

~

Responsible for a cluster of territories

~

Managing various territories

~

Personnel Management

~

Conflict Management & Problem Resolution


Regional Sales Manager

~

National Sales Manager

~

Responsible for a collection of areas usually comprising of more than one city. Responsible for the sales within the entire country for the brand.


Background: Knorr’s Brand Strategy Today •

•

Relatively efficient Use of ATL Media: •

Electronic (min 45 sec TVC to break into the clutter)

•

Radio

•

Ads in selected magazines and

•

Occasionally in Newspaper

Merchandizing activities through: •

•

•

Product placement at Eye Level Strategically designed POS material with particular emphasis on in store branding material particularly buntings

Store Converter Activity:

Trial are generated by placing branded Kiosk at outside the selected superstores and shopping malls

•

•

Trade Activities:

Ensure that Competitive margins are offered to trade in order to retain their interest in the brand

•

•

Also to maintain maximum trade barriers for new rivals

Marketing Plan on knorr Pasta

Communication Campaign Campaign Objectives Crea Create te a stro strong ng bran brand d asso associ ciat atio ion n by me mean ans s of an em emot otio iona nall them theme e in communication highlighting the important role the brand plays in terms of care and health of the family. •

Own a unique position in consumers’ mind through elaborating the functionality of the product and try establishing the position as in the positioning statement.

•

•

Leverage on the brand’s heritage (“Its from Knorr – it’s healthy and gives you

happiness because its Premium and unique”)

Use best practices and techniques for developing greater brand awareness, interest, and trial generation.

•

•

Maintain consistency in visual presentation to establish strong brand recognition.

Communication Message See: Positioning Statement


Advertising Strategy At the launch phase, emphasis should be placed on BTL marketing activities that will be supported by ATL at the follow-up stage.

Electronic Media � A slice of life TVC for 45 seconds will 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

Press Media � The electronic media will be adapted visually � The headline will come from the creative idea used for the TVC � The body copy will be formed using the positioning statement and adapting it to the creative idea � The Knorr tagline will be retained as is.

Out of Home (OOH) Media � Billboards � POP/POS Material


Activation Strategy Out of Home (OOH) Activation School / College / University Activation Various leading educational institutions i.e. schools, colleges and universities in major cities will be activated for infusing product awareness as well as generating trial. Prod Produc uctt awar awaren enes ess s will will be give given n via via a bran brande ded d kios kiosk/ k/st stal alll plac placed ed insi inside de the the cafete cafeteria ria/n /near ear the tuck tuck shop. shop. The The kiosk kiosk attend attendant ant will will be respon responsib sible le to educat educate e potential customers as well as generating interest and desire while inducing trial. A non exhaustive list of educational e ducational institutions where the activation will be conducted is as follows: Karachi

~ ~

Beacon House School System

~

The City School

~

Foundation Public School

~

Aga Khan Higher Secondary School

~

DA Degree College

~

Baharia College

~

Institute of Business Management

~

Institute of Business Administration

~

FAST NU Baharia University

~ ~

~

Lahore

SZABIST Iqra University

~

Top 3 Secondary Schools

~

Aitchison College

~

Lahore University of Management Science (LUMS)

~

Lahore School of Economics (LSE) National College of Arts (NCA)

~

Islamabad

Karachi Grammar School

~

Top 3 Secondary Schools

~

Top 3 Colleges Top 3 Universities

~


Mall Activation 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. This activity will be conducted at the following venues: Karachi

~ ~

Forum

~

Millennium Mall Dolmen Mall

~

Lahore

Islamabad

Park Towers

~

Pace

~

HKB

~

~

Fortress Stadium M. M. Alam Road

~

Jinnah Market

“Planet Knorr” - Point of Purchase (POP) Activation POPs of super stores and super markets will be activated using Knorr.” The details are as follows:

an idea called “Planet

A particular segment of the Super Store will be dedicated as would have:

Planet Knorr, which

� A branded wall to give it a creatively distinct look from its surroundings � A store converter – an educated and pleasant female promoter that will pitch to every (potential) consumer that ventures to that particular area. She will inform them about about the produc product, t, induce induce tastin tasting, g, and persua persuade de for trial trial purcha purchase se by attrac attractiv tive e introductory/ discount/special price offering.

� Electronic Screens in Super stores that run the TVC for Knorr Instant Pasta. � Floor graphics/Direction stickers at super stores / supermarkets directing to planet Knorr for an attractive offerings.

� Attractive POP to be placed at strategic locations of all the major outlets. These would include lamas, shelf talkers and wobblers.

Page 20 of 27


Leisure Activation Surprise Pasta @ Cineplex Potent Potential ial consum consumers ers visiti visiting ng Univer Universe se Cinepl Cineplex, ex, Karach Karachii will will be tapped tapped using using the bran brande ded d kios kiosk k appr approac oach. h. Howe Howeve ver, r, the the diff differ eren ence ce here here is that that ther there e will will be no sampling. However, Knorr Instant Pasta will be served in a pre-cooked form on a per serving basis. Furthermore, an unannounced lucky draw will be conducted at every show’s interval and the winners will receive a free serving of Knorr Instant Pasta.

Canteen/Cafeteria Branding Cafeterias/ Cafeterias/cante canteens ens and tuck shops shops of selected selected schools/ schools/colle colleges/u ges/univers niversities ities will be activa activated ted via brandi branding ng using using the commun communica icatio tion n campai campaign’ gn’s s visual visual adapta adaptatio tions ns.. Furthermore, since Knorr Instant Pasta will be served at these venues at subsidized prices, it is likely to generate greater trial and repeat purchase.

Branded Mobile Vans During the test market stage, branded Vans will be deployed in targeted areas near offices (e.g. II Chundrigar Road, Shahrah-e-Faisal, etc) during lunch hours, near parks (e.g. Nisar Shaheed Park, Hill Park, Sea view, Race Course Park etc) during peak hours, to serve Knorr Pasta at introductory prices.

*


Sales Promotions Consumer Promotion Instant Pasta Recipe Contest Post launch, a press and radio driven consumer promotion will be designed to invite consumers to share their own innovations and customizations to Knorr Instant Pasta Recipes. Consumers will be asked to share their recipe for a variation of Knorr Instant Pasta. The recipe will be sent along with 2 used packages of Knorr Instant Pasta and a copy of the consumer’s CNIC. The first prize would be Rs.100,000/- along with recognition in the form of the recipe being printed on the packaging along with the customer’s photo (if they so desire).

Trade Promotion Retailers will be provided a lot of branding and merchandizing material including customized dispensers. Also, tiered trade discounts will be given to retailers to increase their off take vis-à-vis Knorr Instant Pasta. The trade terms will not simply be 2 N net 30. However, a special trade discount structure during the launch period will comprise of: X N net Y

Where, X

Price ceiling:

Y

2%

30 days

3%

25 days

4%

20 days


Marketing (Communication) Budget The launch year marketing budget is as follows:

Knorr Instant Pasta Launch Bud et - Marketin g Communications g

105,984,0 00

Ceiling

Advertising Television 10,000,00 Production Cost

0

Media

0

40,000,00 50,000,00 0

Subtotal Radio 200,00 Production Cost

0

Media

0

2,000,00 2,200,00 0

Subtotal Newspaper 15,00 0

Production Cost

350,00 0

Average Tariff

7,000,00 0

Media

7,365,00 0

Subtotal Magazines 15,00 Production Cost Average Tariff Media

0 75,00 0 750,00 0 840,00 0

Subtotal Out of Home

20,000,00 Billboards

0 10,000,00

Merchandizing Subtotal

0 30,000,00 0


Retailers sales dis disc of cost 2% cupspromotion and spoons trade Subtotal amount given to each institution 14719995 stall If 255146.58 Subtotal disc 4% Subtotal sales 588799.8 cost of cups and spoons cost of putting up a stall Activation Subtotal school/college/university 47250 28350 for putting up a 14175

14464848.2

14131195.2

61425 mall activation 303750 182250 50000 536000


Conclusion This report outlines the marketing plan for Knorr. With existing demand for Knorr products presently met by minor competition in the form of independent Pasta, this report puts forward the viability of launching the Knorr range of products in various flavors. Taking into account the absence of any existing brands in the market this report presents growth potential and profitably in serving this untapped market.

7

Knorr Final

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