Hul Knorr Soupy Noodles Goa Research Essay Example

to shake up the sector by prioritizing distribution and a particular demographic (notably those aged 20-25) because product demand is outstripping supply. Despite many consumers favoring Knorr Soupy noodles, Maggi noodles still prevails in terms of taste preference. However, the research indicates that factors like availability and cost are more influential than taste in consumer's choice against Knorr Soupy noodles.

This study aims to explore consumer awareness and purchasing patterns related to Knorr soupy noodles, in addition to assessing its demand potential and market penetration. The research will aid Hindustan Unilever in comprehending the standing of the Knorr Soupy noodles within Goa's instant noodle landscape. Furthermore, it will shed light on the current state of the instant noodle sector and customer perceptions towards different instant noodle brands.

The objective of this research is to evaluate the standing of Knorr soupy noodles brand in comparison to its primary rival, Maggi Noodles. Furthermore, by acquiring insights from retailers who serve as a neutral party, the study aims to minimize prejudice and deliver a precise comprehension of customer views and product demand creation. Ultimately, this investigation provides beneficial advice and proposals for Hindustan Unilever to enhance the "Knorr Soupy Noodles" brand's performance and boost sales. The scope of this project was confined within a small region in Goa.

Mapusa, Bicholim, and Sanquelim are assumed to have similar customer profiles as other areas in Goa, such as Ponda and Valpoi. However, when conducting the research on the Knorr Soupy Noodles market in Goa, we did not consider the impact of substitute products in the instant food market, such as pasta, ready-to-eat paratha, and instant idli mixes.

The consumer profiles of management students from GIM were used for the study, but it is important to note that the consumption patterns of this group may differ from other teenage or college-going populations. Additionally, only two flavors were used for wet sampling.

The variety in the tastes of Knorr soupy noodles, such as Chinese chow and Tomato chatpata, stems from the method of large-scale manufacturing using damp sampling. This venture was performed cross-sectionally and completed within a two-month duration. Noodles are a popular food item consumed widely in India by all demographics - children, teenagers, and seniors alike. For over two decades, Maggi Noodles has maintained its standing as the leading brand in this Indian market. Notwithstanding Nestle's stronghold in the Indian noodle industry, other Fast-Moving Consumer Goods (FMCG) firms and retail outlets have begun exploring this profitable sector.

Despite the existence of multiple competitors, Maggi maintains a strong hold over the market with more than 70% dominance. During the early 1980s, Indian consumers were typically resistant to changing their dietary practices, and concepts like "ready-to-cook" meals seemed foreign. There was reluctance to try new foods, particularly when it involved feeding children. Nevertheless, despite these obstacles, Maggi was introduced in 1983 and succeeded in overcoming them. By 2010, it was estimated that the value of India's instant noodle market ranged from INR 1,300-1,600 crores (around USD 300 – USD 350 million).

The market forecast predicts a rise to INR 3,000-3,500 crore by 2015, demonstrating a compound annual growth rate (CAGR) of 20%. Nestle's Maggi Noodles has been the leading brand in the noodle industry for an extended period. However, two significant

Indian FMCG companies - Hindustan Unilever (HUL) and GlaxoSmithKline (GSK), have recently made their entries into this sector with their unique instant noodle brands. Both HUL's Knorr Soupy noodles and GSK's Foodles have managed to gain recognition alongside established brands such as Maggi Noodles and Nissin's Top Ramen.

The prominent FMCG corporation, Unilever, has astutely decided to market its noodles under the Knorr brand. This competing brand with Maggi in the soup industry saves Unilever from having to construct a new brand from scratch. The well-established and recognized reputation of Knorr soups can be leveraged for their noodles as well.

Today, Knorr from HUL and Foodles from GSK have become well-known noodle brands alongside Maggi Noodles and Nissin’s Top Ramen. The recent investments made by HUL and GSK have proven to be successful. They currently hold 5% and 2% respectively of the market share for noodles. GSK, HUL, and ITC's entry into the noodle industry will intensify the competition for Maggi, which is already facing competition from private label brands such as Tasty Treat from Future Group and Feasters from Aditya Birla Retail.

Information provided by Nielson Co. reveals a steady decline in the market supremacy of Maggi in India's urban instant noodle sector, falling from 90.7% in December '09 to 86.5% by July '10. The significance of this company for many Indians is profound due to its vast product portfolio encompassing items such as soaps, detergents, shampoos, skincare products, toothpastes, deodorants, cosmetics, tea and coffee drinks, packaged foodstuff, ice cream and water purifiers.

The firm boasts a collection comprising popular household names such as Lux, Lifebuoy, Surf Excel, Rin, Wheel,

Fair ; Lovely, Pond’s, Vaseline, Lakme, Dove, Clinic Plus, Sunsilk, Pepsodent, Closeup, Axe, Brooke Bond,Bru,Knorr,Kissan,Kwality Wall’s and Pureit. It is an industry leader with a workforce exceeding 16,000 employees and an annual revenue reaching approximately Rs. 9 ,401 crores for the fiscal year of 2010 - 2011.

HUL, a Unilever subsidiary, is a prominent distributor of fast moving consumer goods globally. Unilever, with deep local footprints in more than 100 nations, reported annual revenues of roughly ˆ44 billion in 2011. Approximately 52% of HUL's shares are owned by Unilever.

The Knorr range of soups comes in a variety of delicious and enticing options. There is a flavor for every taste, including the Classic range with flavors such as Thick Tomato, Mixed Vegetable Chicken Delite, and Tomato Twisty Pasta, the Oriental range with flavors like Sweet Corn Vegetable, Sweet Corn Chicken, and Hot n Sour, and the Indian range with flavors like Tomato Makhni and Corn Mast Masala. Knorr Ready to Cook allows consumers to prepare their family's favorite dishes at home and enjoy restaurant-like taste in the comfort of their own homes.

The Knorr Soupy Noodles assortment can be found in both Indian and Chinese Ready to Cook variants. This singular product blends the pleasure of consuming noodles with the nutritious advantages that soups offer, making it a standout item in the instant noodles genre.

The product contains real vegetables and is certified as a "Healthy Choice". Its main focus is on children and its marketing efforts are primarily directed towards them. Children enjoy it and it offers mothers a delicious and healthy snack option for their kids.

Quick

or pre-prepared meals, often seen in both home and professional catering environments, have become an integral part of many people's everyday routine owing to their easy accessibility and cost-effectiveness. These products are readily available in the market satisfying a variety of taste buds. Nevertheless, even with these benefits, approximately 34% of buyers still opt for classic food options that are fresh and free from artificial additives or preservatives.

According to a survey conducted by the Associated Chambers of Commerce and Industry of India, there has been a significant change in eating patterns in metropolitan cities. The survey reveals that approximately 86% of households now opt for instant food such as canned, instant mixes, baked goods, and pasta. This shift in food preferences can be attributed to various factors such as the increase in dual income households, improvement in living standards, convenience, and the influence of Western countries.

The survey reveals that convenience foods are favored (86%) primarily by nuclear families with both working spouses, bachelors wanting to avoid hotel food, or individuals lacking time, patience, or traditional cooking skills.

According to D S Rawat, Secretary General, metropolitans are the biggest consumers of processed food. Their increasing per capita income and changing lifestyle contribute to this trend. The demand for packaged food in the Indian market has also surprisingly increased due to significant changes in people's lifestyles and consumer opinions about eating habits. Brand awareness and loyalty are important factors.

Several years back, notable corporations including GSK, HUL, ITC and Big Bazaar made their way into the marketplace with popular brands such as Horlicks and Knorr. They presented a wide variety of

offerings and tastes in line with consumer desires. Even prior to these new additions, Maggi was not considered a healthy option by Indian moms. Nonetheless, recent Nielsen statistics indicate that within less than two years since these new brands were established, there has been an estimated 15 percent decline in the market share of Maggi.

Our study provides understanding of customer tastes for quick-cooking noodles, concentrating particularly on the Knorr Soupy Noodles sector in Goa. There is a certain reluctance to experiment with new flavors among Indian consumers, and this has encouraged Maggi to maintain classic flavors like curry, tomato, masala, and chicken without much exploration into other options.

Recently, ITC, HUL and GSK have identified the growing potential of this category, which has been expanding by more than twenty percent annually for several years now. These corporations are introducing new tastes to consumers in India and pushing them to venture beyond Maggi.

HUL and GSK are leveraging their robust distribution networks and strong media presence. HUL has expanded its Knorr brand by introducing a combination of noodles and soups, which are typically perceived as nutritious. GSK, on the other hand, has launched Foodles as an extension of its Horlicks brand. Foodles is a multigrain noodle that positions itself as a healthier alternative to the popular Maida noodles found in Maggi. The brand names Horlicks, Knorr, and Sunfeast carry significant appeal due to their products' strong recognition.

Nestle has responded to the situation by introducing its Multigrain noodles and new flavours such as curry and capsicum. Additionally, a new campaign has been launched to enhance brand loyalty and strengthen the emotional

bond with consumers. The working class particularly appreciates instant noodles as a time-saving, energy-saving, and cost-effective option.

Numerous foods have been crafted to eliminate the need for lengthy traditional preparation methods like grinding, cooking, or fermenting for extended periods. This innovation was designed to speed up the process. Producers even created instant meals that catered to consumers' preferences. Nowadays, it is widely recognized that 92% of nuclear families perceive a decrease in their free time after having children. Consequently, they spend less time preparing meals and increasingly depend on takeout, food deliveries and partially prepared dishes to nourish their family during mealtimes.

Approximately 2% of single men prefer ready-made meals because they are budget-friendly and time-saving, fitting well with their fast-paced lifestyles due to the ease of preparation and consumption. The word "instant" usually denotes food that is easy-to-prepare, quick, affordable, clean, and devoid of harmful bacteria. Such food is deemed beneficial for the daily diet of solitary males. Additionally, around 67% of working women state that this trend has swayed their food choices towards dishes that are simple and easy to digest.

Modern individuals' requirements are fully met by the food items available. In a survey, precisely two percent of respondents highlighted another advantage of instant meals - their minimal storage space requirement, effortless preparation method, and huge potential for business growth owing to the booming sector. Rawat's research confirms a continual rise in the demand for processed foods with an average yearly growth rate of 7.6% from 2008 until 2010 and it is projected to consistently increase at an approximate rate of 8.6% up until 2012.

Research conducted in

the Goa Knorr Soupy Noodles market reveals that approximately 85% of parents with kids under five years old serve these quick-to-make meals at least 7-10 times per month. The main factor behind this is rising work pressure and escalating difficulties in managing other household tasks. A majority of parents expressed their desire to find ways to simplify and save time in their daily routines.

Our team has conducted an exhaustive investigation into the challenges and potential in a diverse category, taking into account gender, age, and location demographics. Non-probability sampling techniques were employed for data collection; specifically quota and convenience sampling methods. In the initial stage of our study, we evaluated Soupy noodles' brand awareness by surveying 180 individuals hailing from various regions including Sanquelim, Bicholim, and Mapusa. The respondents were categorized into five different age groups (Below 20, 20-25, 25-30, 30-35,and above 35) as well as segmented according to their gender.

In the second phase of our exploratory research, we interviewed 40 retailers from Sanquelim and Bicholim. These retailers owned stores ranging in size from 200sq. ft to 1000sq. ft. In the third phase of our research, we included a sample of 138 management students from Goa Institute of Management.

Students were given the option to fill out a Google doc at their convenience to prevent long queues when collecting data. The table below provides an overview of the data collection method. The goal was to determine the level of awareness for Knorr Soupy Noodles. Our initial question, "Have you tasted Maggi Noodles," aimed to identify our target segment, which was assumed to be anyone who has tried Maggi Noodles in this exploratory

research.

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The gathered data is of qualitative nature and not analyzed by SPSS but rather, tools from MS Office such as Excel are utilized for efficient data illustration. The survey incorporates Likert's scale and rank order scale to facilitate comparative analysis. Excel simplifies the process of computations. Issues like overlapping queries and double counting have been taken into account in reaching a practical and beneficial conclusion. Essential elements of this study include pie charts and histograms, which assist in forming conclusions.

Inferences have been made depending on factors like sex, age, geographical location, and personal likes. The data chart showing the quantity and regularity of individuals indicates a pattern. An investigation carried out in Goa regarding the Knorr Soupy Noodles market shows that customers are very knowledgeable about this product. The primary demographic comprises individuals under 20 years old and those between 20-25 years; they exhibit an impressive knowledge level of 78%. However, this knowledge tends to decline as people get older. Because teenagers eat noodles more often compared to other age groups, they make up our chief target market.

In terms of age distribution, the under-20 group has a high consciousness level of 78%, while those in the 20-25-year-old bracket have a similar rate at 76%. However, for individuals aged between 25 and 30 years old, this figure drops to 57% and then rises again to 66% for those within the age range of 30 to 35. It's significant to note that there is a sizable portion of respondents below the age of 25 highlighting their considerable level of

awareness. With a higher consumption rate of noodles, teenagers are identified as the primary market target.

As stated earlier, a significant part of the population is below 25 years of age with a buying conversion rate standing at 33% (moderate). A study into the relationship between awareness and purchase conversion might offer useful understandings into how effective marketing campaigns are and the product's market appeal.

Retailers assert that they possess crucial understanding of customer inquiries and their buying choices. One of them indicated that Soupy noodles could have outperformed Maggi if there was sufficient stock. Another retailer shared that they refrain from recommending a product to customers due to the lack of rewards for showcasing it. Furthermore, a bakery owner disclosed how students frequently desire a certain product after viewing its advertisement on television, however, they are compelled to select an alternative due to insufficient supply.

According to the random conversations with retailers, the Knorr Soupy noodles had a high demand during a specific marketing phase when it was advertised through mass media. The retailers also mentioned that there was a shortage of supply, resulting in consumers choosing alternative brands due to the product's unavailability.

The demand for Soupy noodles is dependent on various factors such as price, income, price of substitute goods, choice, and preference. Each determinant of demand has a unique role and cannot be studied in isolation. The demand potential for Soupy noodles is equivalent to that of Maggi.

Maggi has been the dominant player in the noodles market, with Soupy noodles being its main competition. There are various factors that influence consumers' choices between these two

brands. One such factor is the pricing, as Soupy noodles are more expensive compared to Maggi. This could potentially impact the demand for Soupy noodles, especially in a market where price elasticity exists. Customers may prefer Maggi, a well-established brand, which is available at a lower price. However, Soupy noodles differentiate themselves by offering a unique concept of combining both noodles and soup in one product. This message has been effectively communicated, and customers are aware of this innovative feature.

However, the purchase conversion rate is not impressive. This could be due to brand loyalty towards Maggi and the larger variety of Maggi options. While soupy noodles have the potential to acquire and influence brand loyalty, it is hindered by the high recall, retention, and repurchase intention of Maggi. HUL, known for its distribution and supply, faces complaints from retailers about erratic distributors who fail to provide sufficient stock of soupy noodles, impacting availability.

In many cases, the main concern is not margins as vendors often hesitate to pay a minimal amount for high-quality shelf space. This can result in potential loss of customers due to lack of proper visibility. To understand consumer's views on the brand, responding to 35 questions was essential. The findings from this are elaborated in the sections that follow.

The research unveils that a considerable proportion of students (63%) dine out 1-2 times per week, in contrast to a minor fraction (6%) who do it once monthly. It underscores the common culinary practices of students, suggesting that majority partake in meals outside their residences at least on two occasions weekly. This demographic represents a lucrative market and

should be targeted by fast food businesses. Additionally, it reveals instant noodles have a crucial role in student's nutrition primarily due to limited time and inconsistent eating patterns.

A significant number of college students, due to their packed schedules, struggle to find time for regular meals. This situation has caused an increased demand for pre-prepared food items. Research indicates that 48% out of every 100 students eat instant noodles at least once or twice a week. Moreover, out of all the students who prefer eating outside the cafeteria (which is around 80% based on previous data), approximately 61% consume instant noodles with this frequency. Interestingly, about 22% of these off-campus dining enthusiasts have instant noodles every fortnight.

The high demand for instant noodles among students creates a great opportunity for instant food companies. According to the data, there is no notable discrepancy (63% and 58%) in the consumption patterns of instant noodles between males and females. A study conducted on the Knorr Soupy Noodles Market in Goa reveals that a significant proportion of daily noodle consumers (19%) are from West India (Mumbai, Goa, Rajasthan, and Gujarat). Additionally, students from North India and West India have the highest overall frequency of consuming instant noodles (80% combined).

The study showed that Horlicks Foodles, which has the second highest market share among instant noodles according to AC Nielsen, ranks at the lowest. It was found that only 2 out of every 100 people dislike soupy noodles. When students from GIM were sampled, the majority (56%) found Knorr soupy noodles to be favorable, while 33% found the taste to be acceptable, which could potentially make them

switch brands.

Only 1% of the sampled population was surprised by the taste. This could be why brand loyalty is low and why early adopters are high but followers are not increasing as expected by the company.

The taste of Knorr soupy noodles is neither impressive nor dissatisfying to consumers, as shown in the charts below. Among the consumers who would recommend the product to others, 1% would buy more if the taste improved. They also expressed a preference for increased promotional activity and availability.

Both Knorr Soupy noodles (30%) and Maggi Atta noodles (31%) have similar taste preferences. Knorr Soupy noodles are comparable in preference to Maggi Atta noodles due to their health concept promotion. However, Maggi Noodles (39%) is the top choice in terms of taste.