Knorr

Knorr

Unilever's number one brand, Knorr is a limitless global brand with passion for food at its heart. Knorr's history dates back to 1838 when Carl Heinrich Knorr pioneered experiments in drying seasonings and vegetables to preserve their flavour and nutritional value. Knorr has grown to become a well-loved, international brand with a wide range of bouillions, soups, sauces, snacks, and complete meals to help people around the world to enjoy the taste and flavour of good food without the hard work that usually goes with it.

Knorr is Unilever’s largest brand worldwide and stands for chefmanship and recipe expertise . The core of the brand consists of innovation and partnering with the consumer in the creation of great dishes . The brand is present across soups , bouillons , cubitos , meal kits and pastas around the world.

In India the Knorr was launched by HUL very recently and hence has very limited presence. Tough internationally the Knorr brand offers a wide varieties of food products like: soups, bouillons, cubitos, meal kits and pastas; in India it is present only in soup category and is the market leader in the category with around 70% market share. The brand is still to be widely established in India and has seen limited advertisements. But HUL expects it to be a driver of growth in future. They have launched Meal Makers and Indian Soups and intend to take the brand forward to achieve in India what it has achieved globally. The ads of the brand mainly focus on the functional attributes which is evident from this tagline: ‘Naya Knorr Soup, Asli Sabzion Ka Zadoo’. In the similar lines very recently launched Knorr Meal Makers also stresses of functional attribute: ‘Ready to Cook’.In India, the brand is so far present in soups and Chinese Meal Makers. The soup market in India is small but rapidly growing, and Knorr being the category leader enjoys a 70% market share. Knorr soups comprise of a 4 serve pack and is available across the country. The range of soups comprises of four categories- Oriental, Snacky, Classic and Indian. All the soups can be prepared in a few minutes and the consumer can enhance the taste by adding vegetables or garnishing as per her choice.

There are 17 exciting flavours in soups. To name a few would be - Tomato Chatpata, Tomato Makhani, Veg Hara Bhara, Corn Mast Masala, Chicken Malai Tikka, Hot and Sour veg , Tomato twisty pasta and Masala twisty pasta.

Knorr Chinese range has meal mixes like - Chinese Manchurian, Schezuan, Sweet and Sour, Chilly and Hakka Noodles mix. These mixes are a great way to taste "Restaurant jaisa Chinese khana ghar pe"

Overall soup industry in India – 22 million litres Overall soup industry in India – 22 million litres Packaged branded soup – only 0.5 million litres Packaged branded soup – only 0.5 million litres Major players – HUL’s Knorr, Nestle’s Maggi, MTR, and GCMMF’s Major players – HUL’s Knorr, Nestle’s Maggi, MTR, and GCMMF’s Masti Masti Knorr products sold in over 87 countries & their punch line is Knorr products sold in over 87 countries & their punch line is “Good Food Matters” “Good Food Matters” With only soups in India, Knorr resulted in an 18% growth With only soups in India, Knorr resulted in an 18% growth

Knorr is No. 1 & holds a majority of market space with 55% Knorr is No. 1 & holds a majority of market space with 55% Maggi is one of the main brands of Nestle in India & Knorr’s Maggi is one of the main brands of Nestle in India & Knorr’s nearest competitor nearest competitor Maggi – first company in to launch packaged soups in India in Maggi – first company in to launch packaged soups in India in 1989 1989 Maggi’s new punch line “Taste Bhi, Health Bhi” after re-launching Maggi’s new punch line “Taste Bhi, Health Bhi” after re-launching its brand its brand

Customer Value Customer Value Knorr soups – a healthy evening snack, not only a starter Knorr soups – a healthy evening snack, not only a starter Knorr soups are low in Cholesterol & Fat with goodness of Knorr soups are low in Cholesterol & Fat with goodness of vegetables vegetables Knorr’s perceived value is more than the price of the soup Knorr’s perceived value is more than the price of the soup Maggi is more popular for its other products like Noodles, sauces, Maggi is more popular for its other products like Noodles, sauces, etc, hence already have a good perceived value etc, hence already have a good perceived value Maggi soups have been re-launched with new flavors with the focus Maggi soups have been re-launched with new flavors with the focus being “Healthy Soups”

Pricing Strategy Pr i ci n g Strategy Knorr soups range between Rs. 29 to Rs. 33 and 34 grams to 68 Knorr soups range between Rs. 29 to Rs. 33 and 34 grams to 68 grams in quantity whereas Maggi’s range being Rs. 29 to Rs. 30

grams in quantity whereas Maggi’s range being Rs. 29 to Rs. 30 for 40 g to 70 g packs for 40 g to 70 g packs Maggi introduced 1 serving packs of 12 g for Rs. 8 – a first time in Maggi introduced 1 serving packs of 12 g for Rs. 8 – a first time in India India Marginal price increase of Knorr soups in the past few years Marginal price increase of Knorr soups in the past few years Place St rategy Place St rate gy Knorr soups easily available in almost all super-markets, Knorr soups easily available in almost all super-markets, departmental stores, etc whereas Maggi soups are available departmental stores, etc whereas Maggi soups are available mostly in super-markets and very few stores mostly in super-markets and very few stores Almost no presence in the Rural Markets Almost no presence in the Rural Markets Promotion Strategy Promotion Strate gy Effective Ads of Knorr compared to Maggi’s Effective Ads of Knorr compared to Maggi’s New Indian flavors of Knorr New Indian flavors of Knorr Maggi’s new offer – 20% free in 70 g packs Maggi’s new offer – 20% free in 70 g packs

Both companies have quite different marketing strategies Both companies have quite different marketing strategies Knorr has better Promotional and Place Strategies Knorr has better Promotional and Place Strategies Pricing of Maggi Soups are marginally lower than that of Knorr Pricing of Maggi Soups are marginally lower than that of Knorr Maggi Soups are more Healthier than Knorr but need to increase Maggi Soups are more Healthier than Knorr but need to increase the range of flavors the range of flavors

Both the brands have huge opportunities in the Rural markets

Both the bKnorr, Unilever's food and beverages brand, is gearing up with a lot of activities for its dry soup mix offering, which it claims enjoys a 70 per cent market share in the soup segment. In an attempt to strengthen its market leader position and make a place in the daily Indian menu, it is launching a campaign across media. For the first time ever, it has launched a tagline for the brand. It has also roped in Bollywood veteran and actor, Kajol, as brand ambassador.

The new tagline – Tummy bhi khush, Mummy bhi khush – by creative agency Lowe Lintas, Mumbai, will soon be popularised through a television commercial scheduled for a launch on August 10.

Research conducted by the company revealed that mothers were not very comfortable with giving their children a 7 pm snack, which could result in loss of appetite for dinner. Talking about the positioning for the brand, Arun Iyer, group creative director, Lowe, tells afaqs! that Knorr Soups has been positioned as a healthy snack which will not affect the child's hunger for the last meal of the day.

Sidharth Singh, category head, foods, Unilever, says in a press release, "The big strategic thrust for Knorr in this re-launch is to find a role for soups in the daily Indian menu. Therefore, the aim is to leverage the vacant spot between 5-8 pm as the perfect time for a pre-dinner snack.

"Soup is ideal as a snack for its appetizing quality that momentarily satiates one's hunger pang, without ruining dinner appetite. Knorr Soups' promise of flavour filled nutrition does just that. Over the years, Knorr has become a brand synonymous with soups and this campaign aims to strengthen our connection with consumers as well as fortify our market leadership position."

The campaign, an integrated communication programme, will include multi-lingual commercials, out of home (OOH) media tactics, print advertising, experiential sampling sessions and even presence in new media.

Worldwide, Knorr has offerings in soups, bouillons, cubitos, meal kits and pastas. However, in India, it has a presence in only two segments – soup mixes and ready to cook meals.

rands have huge opportunities in the Rural markets

Some brands have their moments in the sun, thanks to seasonal advertising. While summers see cold beverage brands and soothing talcum powders frolicking their stuff, the chilly winters bring out not only blankets but 'blanket advertising' by some brands. This winter, it's the turn of Knorr Soups.

For its food brand Knorr Soups, HUL has launched a high impact outdoor campaign across cities, focusing mainly on metros with heavy winter seasons,

especially in North India.

The brand has launched a second phase of its high intensity campaign, taking up bus shelters, railway stations, Metro rail (in Delhi and Kolkata), hoardings, utilities and unipoles. The first phase of the campaign was carried out in October and November, with the second phase taking place in December.

While Lowe Lintas has worked on the creatives for Knorr Soups' '7pm' campaign; its outdoor agency, Aaren Initiative, has planned and executed it.

The creative shows ripe tomatoes with a bowl full of hot soup, where the cream in the soup is in the shape of the hands of a clock, depicting the time - 7 pm.

Vivek Lakhwara, chief executive officer, Aaren Initiative, shares, "The campaign was targeted at Indian mothers and kids, aimed at positioning soups as an ideal 7 pm snack satiating the pre-dinner hunger pangs. The out of home was supposed to be present in locations where the target consumer congregates, passes through regularly or purchases soup."

The creative idea stemmed from the dilemma of mothers related to unhealthy pre-dinner snacking. Indians are known to have very late dinners and children often get hungry in the evening, demanding unhealthy snacks to satiate this hunger. The mother is always worried that if she gives her child unhealthy snacks such as chips, the child may lose the appetite for dinner. Ideally, she would prefer to give her child something which is tasty, healthy and light. Thus, Knorr Soups has been positioned as a healthy alternative.

Lakhwara adds, "The brief given to the agency was to gain high share of voice, with an extensive awareness campaign of high reach and frequency, focusing important junctions, high congregation points such as railways and bus stops, as well residential areas."

Surabhi Shori, brand manager, Knorr Soups, says, "While a bigger chunk of ad spends for Knorr go to TV, outdoor plays an important role for us in key geographic areas such as Delhi, Mumbai, Kolkata, Lucknow and parts of Punjab, including Chandigarh and Amritsar."

After candy bar Snickers' 'Hunger bajaye char, toh snickers khol yaar' campaign, Knorr's campaign plastered across the city will not only invite people to buy the product during the chilly winters, but the '7pm' will also remind them that it is time for their evening snack.

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