Marketing Plan

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Marketing Plan

Marketing Plan of Knorr Pasta

Marketing Management Course
January 28, 2011

Prepared By.
Farah Rizvi
Aysha Shahid
Arooj Gilani
Ilyas Ahmad Farooqi
Zulqurnain Shafiq
Umar Akram

Submitted to,
Ms. Maryam Gulshan

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Acknowledgement
We think if any of us honestly reflects on who we are, how we got here, what we think we
might do well, and so forth, we discover a debt to others that spans written history. The
work of some unknown person makes our lives easier every day. We believe it's
appropriate to acknowledge all of these unknown persons; but it is also necessary to
acknowledge those people we know have directly shaped our lives and our work.
First of all we would like to thank our teacher Ms. Maryam Gulshan for their guidance
throughout the semester.
Then we would like to thank our friend and Group Members for providing us the
information that was required for completion of this project.
1.
2.
3.
4.
5.
6.

Farah Rizvi
Aysha Shahid
Arooj Gilani
Ilyas Ahmad Farooqi
Zulqurnain Shafiq
Umar Akram

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Marketing Plan

Marketing Management Report on Knorr Pasta

Table of Contents
Introducing Knorr Pasta.................................................................................1
Term Paper on the Launch Strategy of Knorr Pasta.............................................1
Table of Contents............................................................................................2
Background....................................................................................................4
About Knorr..................................................................................................4
Passion for Flavor................................................................................................................4
Key Facts.............................................................................................................................4

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

About Pasta...................................................................................................6
The Instant Pasta Concept..............................................................................6
Target Market Analysis...................................................................................7
Target Segment Identification (Ideal Consumer Profiling)....................................7
Demographics......................................................................................................................7
Psychographics....................................................................................................................7
Consumer/Buyer Behavior...................................................................................................7

Market Potential.............................................................................................8
Symbols...............................................................................................................................8
Calculating N................................................................................................................................8
Determining Q ....................................................................................................9
Determining P......................................................................................................................9

Competitive Positioning................................................................................10
Brand Values...............................................................................................10
Positioning Statement...................................................................................10
SWOT Analysis..............................................................................................11
BCG Matrix....................................................................................................12
Financial Forecasts.......................................................................................13
During Test Marketing Period.........................................................................13
Test Market Details............................................................................................................13
Socio Economic Classification............................................................................................13
Test Market Potential.........................................................................................................13
Assumptions......................................................................................................................13
Price..................................................................................................................................13

Post Test Marketing ....................................................................................14

Revenue and Operating Profit Projections............................................................15
Basic Parameters........................................................................................................................15
Forecasted Sales (Units) .....................................................................................15
Forecasted Sales (Rs.).......................................................................................................15
Forecasted Operating Profit...............................................................................................15

Pricing Strategy............................................................................................16
Distribution & Sales Strategy........................................................................16
Background: Knorrs Brand Strategy Today..................................................18
Communication Campaign............................................................................19
Campaign Objectives........................................................................................19
Communication Message .............................................................................19
Advertising Strategy.....................................................................................20
Electronic Media .........................................................................................20
Press Media.................................................................................................20
Out of Home (OOH) Media.............................................................................20

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Marketing Plan

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

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

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

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

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Marketing Plan

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 products target market, positioning, communication, distribution,
pricing, and a broad based business model that outlines projected financials
subsequent to the launch of the said product.

About Knorr
Knorr believes in the power of the cooking woman. Cooking is more than 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
seasonings and vegetables to preserve their flavour and nutritional value. Since then
Knorr has become an international brand offering a wide range of bouillons, soups,
seasonings, and other cooking aids that is every cooking womans 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.

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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, and hollow pasta stuffed with filling, like ravioli, 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:

1. [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.

2. [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.

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Target Market Analysis

Target Segment Identification (Ideal Consumer Profiling)
After careful analysis of the market as well as consultation with the Knorr brand
team, we have identified the following market segment to be targeted as 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

SEC A1, A2 or B

Consumer
[Same]

(Middle,

Lifestyle

Upper
Middle,
Lower Upper and
Upper
Believers

Achievers

Personality

Ambitious, trendy

Extrovert, confident

Consumer/Buyer Behavior
Occasion

Buyer

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),

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Benefits Sought

Status

Good health and great taste

in
the food that can
be
prepared
quickly
and
children would readily
eat
and
thus facilitate her in
abilities.
Regular

Instant
Noodles

Great tasting alternative

to
already
available/unavailable

Regular

Instant
Noodles

Buyer
6 packs a week

3 packs a week

Loyalty

Medium

Strong

Attitude

Low Involvement, Positive,

Habitual

Habitual, Enthusiastic

Average Usage
Rate(s)

Market Potential
Symbols
1. TMSD: Total Market Segment Demand.
2. N: Number of Buyers in the Market Segment.
3. Q: Quantity purchased by an Average Buyer per Week.
4. P: Price of an Average Unit.
Where,
TMSD = N X Q X P

Calculating N

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

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 the average household size stays constant across various geographies 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 countrys population is 35%:65%3

Source: Economic Survey of Pakistan, Chapter on

Population

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~ 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.

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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
healthy choice for consumers without compromising taste, convenience and
affordability.
Knorrs 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 to create an incredible meal without having to spend hours in 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 that elevates you out of everyday life and provides you the
exciting ability to create an incredibly tasty meal without any hassles and
thus ensure your familys good health while remaining within your budget.

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SWOT Analysis
Strengths
~
~

High Brand Awareness Levels

(Recall)
Association
with
quality,
taste,

Strong brand heritage.

Expanding distribution network.

Wider variety of taste offered to the

consumers.

Weaknesses

~
~

Health consciousness on the rise in

consumers.
Opportunities

Low
Brand
Salience
Levels
(Consumers are not really aware of
the
brands
benefits,
despit
reasonably high
recall)
Limited
Distribution
Offering
for urban marke
ts
only

Threats

(Net)
disposable
income
increased over the past few years,
thus
increasing
the
consumers
purchasing power.

Influx of other foreign

same category can
sterner competition

Frozen foods can curtail the sales.

Awareness of healthy,
hygienic
and
conveniently packaged food is on the
rise.
Consumer
exposure
to
foreign
Products has also increased.

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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

Total House Holds

3,200,000

Socio Economic Classification

SEC

%age of Population

A1

2%

A2

3%

15%

20%

35%

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

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Post Test Marketing

Once the test marketing stage is over, the average monthly volume for Karachi will
be taken as benchmark and the following volume split is expected across the country.
City
Karachi
Lahore
Islamabad
Fa isa la
bad
Others

Volume %age
50%
30%

20%

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Revenue and Operating Profit Projections

Basic Parameters
Avg. Monthly Vol. (Units)

981,333

Annual Sales Increase

10%

Operating Profit

40%

Forecasted Sales (Units)

Period

Karachi

Lahore &
Islamabad

Faisalabad &
Others

Test Marketing

5,888,000

Year
1

Post Test Marketing

5,888,000

3,532,800

2,355,2
00

Year
2

Post Test Marketing

12,953,60
0

3,886,080

2,590,7
20

Year
3

Post Test Marketing

14,248,96
0

4,274,688

2,849,7
92

Total

17,664,00
0
19,430,40
0
21,373,44
0

Forecasted Sales (Rs.)

Karachi

Lahore &
Islamabad

Faisalabad &
Others

70,656,000

Period
Test Marketing

Total

Year 1

Post Test Marketing

70,656,000

42,393,600

211,968,001

Year 2

Post Test Marketing

155,443,20
0

28,262,40
0

46,632,960

233,164,801

Year 3

Post Test Marketing

170,987,52
0

31,088,64
0

51,296,256

34,197,50
4

256,481,281

Forecasted Operating Profit

Period

Operating Profit (Rs.)

Year 1

84,787,200/-

Year 2

93,265,920/-

Year 3

102,592,512/-

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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 exclusive distributor for Knorr buys from Unilever and sells it to various whole
sellers in the target market cities. Since these are high volume sales, per unit
margins are relatively low.
2. These whole sellers then sell to retailers at a higher margin but lower volumes.
3. Retailers then sell to consumers.
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

Area Sale Manager

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

Responsible for a cluster of territories

Managing various territories

Personnel Management

Conflict Management & Problem Resolution

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Marketing Plan

Regional Sales Manager

Responsible for a collection of areas usually

comprising of more than one city.

National Sales Manager

Responsible for the sales within the entire country

for the brand.

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Background: Knorrs 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

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Communication Campaign
Campaign Objectives

Create a strong brand association by means of an emotional theme 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 brands heritage (Its from Knorr its 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

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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

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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.
Product awareness will be given via a branded kiosk/stall placed inside the
cafeteria/near the tuck shop. The kiosk attendant will be responsible to educate
potential customers as well as generating interest and desire while inducing trial.
A non exhaustive list of educational institutions where the activation will be conducted
is as follows:
Karachi

Lahore

Islamabad

Karachi Grammar School

~

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

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)

Top 3 Secondary Schools

Top 3 Colleges

Top 3 Universities

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Marketing Plan
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 products
offering will be enhanced through various competitions, games and prizes.
This activity will be conducted at the following venues:
Karachi

Lahore

Islamabad

Park Towers
~

Forum

Millennium Mall

Dolmen Mall

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 the product, induce tasting, and persuade for trial purchase by
attractive 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.

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Leisure Activation
Surprise Pasta @ Cineplex
Potential consumers visiting Universe Cineplex, Karachi will be tapped using the
branded kiosk approach. However, the difference here is that there 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 shows interval
and the winners will receive a free serving of Knorr Instant Pasta.

Canteen/Cafeteria Branding
Cafeterias/canteens and tuck shops of selected schools/colleges/universities will be
activated via branding using the communication campaigns visual adaptations.
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.

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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 consumers 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 customers 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--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,

Price ceiling:

2
%
3
%
4
%

30 days
25 days
20 days

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Marketing (Communication) Budget

The launch year marketing budget is as follows:

Knorr Instant Pasta

Launch Budget - Marketin g Communications
105,984,0
Ceiling

00
Advertising
Television

Production Cost

Media

10,000,00
40,000,00

Subtotal

50,000,00

Radio
Production Cost

Media

200,00
2,000,00

Subtotal

Production Cost

0
Newspaper
s
0
0

Average Tariff

2,200,00

15,00
350,00
7,000,00

Media
Subtotal

7,365,00

Magazines
0

Production Cost

Average Tariff

Media

15,00
75,00
750,00

Subtotal

840,00

Out of Home
Billboards

Merchandizing

Subtotal

20,000,00
10,000,00
0

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30,000,00

Marketing Plan

sales promotion
trade promotion
14719995
255146.58

Retailers
disc 2%
Subtotal
If
disc 4%
Subtotal

14464848.2
588799.8
14131195.2

Activation
school/college/university
sales
47250
cost of cups and spoons
28350
amount given to each institution for putting up a
14175
stall
Subtotal
mall activation
303750
sales
182250
cost of cups and spoons
50000
cost of putting up a stall
Subtotal

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61425

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.

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