Can soups be a healthy snack in Bangladesh??

Can soups be a healthy snack in Bangladesh?
With the winter season coming up Brand Managers at Unilever want to further strengthen Knorr in Bangladesh. But the most important question that remains for them is how they make top end unhealthy evening snackers consume soup instead of the shingara, samosas and burgers of the world. It has been 9 months since Unilever launched Knorr Soups and entered into the savory category. Given the size of the soup industry in Bangladesh, Unilever has placed a lot of emphasis on Chicken Mushroom and Chicken Ginger and the vegetarian variant Tomato. Each pack contains enough soup to serve two people. Knorr was launched with the most important proposition – the

establishing the Knorr brand in the minds of consumers and pave a way for the entry of other product extensions in the future. Soup was launched at a time when a market, although small, was growing consumers at a were rapid pace, where the

experience of real ingredients in its soups. Knorr soups contain real bits of chicken and vegetables that could be both visibly seen as well as tasted during

experiencing

goodness of soup at their homes and including it as a part of a more regular diet. The market was predominantly run by Nestlé’s Maggi brand which owned almost the complete market. Knorr was launched after extensive

market research into the soup habits of Bangladeshi consumers. A qualitative research was also done on different variants brought in from India and among them those that scored highest on consumer taste buds were launched. The four variants that were launched included Sweet Corn with Chicken,

Knorr was launched with the most important proposition – the experience of real ingredients in its soups.

consumption and that is that

something

was focused on throughout forms all of

communication. The concept behind launching it as an evening snack

was the lack of a healthy branded evening snack for the top end market. People generally enjoy oily or unhealthy snacks during this time and often it leads to children not wanting to eat dinner later on. The evening time is also is a

culturally important time, as this is the time when the whole family gets

were given an opportunity to consume Knorr soup. This provided a direct engagement consumers. After 9 months Knorr has done well to enter the market and establish itself. Consumers have understood the superior offering that is Knorr in terms of packaging and visibility. Although the price of Knorr during launch was at opportunity with

together to spend time at the end of the day over a snack. Knorr was positioned as the 7pm snack for homes

communicated as the “Knorr happy hour” and communicated to mothers who were exceedingly concerned about their family’s everyday consumption of unhealthy fried snacks. Knorr was launched plan with a to 360°

premium to competition at Tk.35 where Maggi was at Tk.30, it is now at par after competition has increased price. However, the rate of increase in the level of penetration has not been

communication

aggressively enter the market. Teasers were designed focusing on the 7pm time for TV and Radio channels were branded “Knorr Happy Hour” for the 7pm8pm time slot. The Kajol thematic TV commercial was also run which was able to capture the attention of the core target group. Key visuals were used in

Consumers have understood the superior offering that is Knorr in terms of packaging and visibility

what the brand managers expected. Soup was launched in the middle of the peak season (winter) and before the brand could gain the

extensive

familiarity,

print media as well as for billboards. Shops were decorated with danglers, buntings and the Knorr soup hanger, displaying all four variants in pockets. In super markets (modern trade) the soup rack was entirely decorated with Knorr branding and Knorr was placed in a visually attractive position. But the most successful part of the launch was the wet sampling campaign where people in different busy locations including

season had ended. Now with the season coming up and the brand being more established, brand managers are looking for a strategy to drive Knorr and become the brand name for soups in Bangladesh.

Introduction to Unilever in Bangladesh Unilever started its onshore operations in Bangladesh in 1964 when its soap factory was set up at Chittagong. Lever Brothers Bangladesh Ltd (LBBL) was

markets, schools and shopping malls

formed in 1973 with a 39.25% share held by the government. In the 1990s, the

which are a clear guide to corporate behavior. It is widely understood in society that UBL is uncompromising in its approach and conducts business with the highest level of ethical standards and sound principles of corporate

Company diversified its base of personal and laundry soaps and shampoo and now has a strong range of 17 brands. In December 2004, the Company changed its name to Unilever Bangladesh Ltd (UBL) as part of an alignment with the parent group – the Unilever group of Companies. Unilever Bangladesh is

governance. With 10 successive years of double digit growth, the Company has proved that businesses in Bangladesh can successfully grow with ethical practices. UBL has delivered sustained growth for the last 10 years. It has been one of the fastest growing businesses for the Unilever group in Asia and has developed leading edge activation, customer management and general management practices that are being showcased and emulated by other Unilever Companies. At the heart of the Company lies a strong consumer and market focus. endeavor to meet In its constant fast changing

market leader in 7 of the 9 categories it operates in. Key brands include, home and personal care (HPC): Lifebuoy, Lux, Wheel, Vim, Rin, Pepsodent, Clear, Fair and Lovely, Close Up, Surf Excel, Sunsilk, Dove, Ponds, Axe, Rexona and Vaseline. Unilever has also focused on

strengthening the foods category with Taaza, Knorr and Pureit brands. HPC still makes up 95% of Unilever’s business, but the growth in the foods category is resulting making in increasing contribution more

Unilever’s

portfolio

diversified.

Unilever

Bangladesh

consumer needs, Unilever Bangladesh has pioneered the launch of several categories, products and formats in the country, such as face wash, deodorants, dishwash bars, sachets etc.

manufactures and markets all these fast moving consumer goods for the

Consumers in Bangladesh.

Values,

Ethics

and

Sustainable

Performance Unilever Bangladesh conducts its

Organization Structure Unilever Bangladesh’s governing body is the Board which Directors The day of comprises all to its day

business in Bangladesh according to the Unilever Code of Business Principles,

representative shareholders.

management of the Company is with the Company’s Leadership Team comprising the Chairman & Managing Director and the functional Directors. There are 5 functional Directors who, in addition to holding joint responsibility for the

topping €3 billion, Knorr is one of Unilever's biggest-selling brands. Knorr believes in the mission “Help unlock the power of family meal times”. It produces a range of products that provide meals which are tasty and nutritious. Its current range include soups, noodles, bouillons, seasonings, meal makers, sauces, sides and ready to make meals. Knorr also believes in doing business sustainably, by reducing impact on the environment and focuses on providing exciting products which are environmentally friendly.

running of the business, also head their respective functions. The Company has management strength of 200+ across different levels and another 600+ are employed (NMS). as non-management operations staff in

Unilever

Bangladesh provide employment to over 10,000 people directly and through its dedicated suppliers, distributors and

service providers.

Moving ahead Bangladesh is considered one of the next

Knorr – The brand Knorr brand was founded in 1838 by Carl Heinrich Theodor Knorr and has its roots in Heilbronn, Germany. Knorr along with other brands was acquired by Unilever in the year 2000, when the company acquired Best Foods. With annual sales

11 countries that hold immense potential by Unilever standards, clocking

consistent GDP growth of 5-6% over the past 5 years and with a huge population base of 160 million, it makes it an attractive market for FMCG players like Unilever. Unilever has a strong growth vision going ahead, and diversifying into new product categories as a part of its growth strategy. Internationally, the

In developing & emerging markets like Bangladesh, foods are seen to be the way forward to deliver growth and tap into a highly potential market

food category plays a very important role in the Unilever business portfolio. In many countries, Foods provide a higher contribution to business comparison to HPC. In developing & emerging markets like Bangladesh, foods are seen to be the

way forward to deliver growth and tap into a highly potential market. Knorr is one of the brands that Unilever Bangladesh wants to use to strengthen its footprint in the foods industry in Bangladesh. Unilever Bangladesh

outlets that sold Maggi soup. Going forward the sales team plan to continue providing Knorr soup to match those outlets where Maggi soup is currently available, but care has to be taken since with food items, the expiry sensitivity is always an issue when placing in shops.

believes that as the food category grows it will deliver the growth required to achieve the organization’s ambition. The success of Knorr Soup in Bangladesh, therefore, is directly linked to the success of the category and the brand.

The challenge with consumers Soup in Bangladesh has always been seen as a healthy meal for kids, elderly people and something nutritious for people who are ill. People here enjoy

The Market Unilever Bangladesh prides itself on its strength in trade and distribution.

adding different items to the soups that they make and in almost all cases will add basic spices and sauces. Market data available suggests that people are

Unilever products reach even the most difficult to reach

moving away from homemade soup consumption opting for and are now soup

communities. Knorr soup however keeping was the launched urban

population in mind. It was launched in 15 metros

focusing on general and neighborhood stores and in

Soup is still an alien snack in Bangladesh and not always thought of as an evening snack

packaged

made with preferred additions. However, the occasion of

having soup has still to change considerably. Soup is still an alien snack in Bangladesh and not always thought of as an

some cases wet market grocers. In modern trade Knorr has become the market leader holding a considerable position over Maggi, however as in all other channels, Maggi Thai variant

evening snack. The brand managers at Unilever know that if soup is taken as a healthy evening snack alternative to unhealthy fried snacks it would both drive penetration and provide larger volumes to sell, and therefore making Knorr the preferred snack in Bangladeshi

remains the highest selling soup as a whole. Benchmarking for availability was done by comparing the number of

homes. The objective therefore remains, not to just gain consumers from Maggi, but more importantly to develop the market for soup consumers and convert unhealthy snackers to consume soup. With the winter season coming up, the brand managers feel that now is the time that action has to be taken and

figure out what must be done to further strengthen Knorr in Bangladesh. But most importantly, brand managers are left to answer the question: how do they make top end unhealthy evening

snackers consume soup instead of the shingara, samosas and burgers of the world.

Instructions: The Challenge: You are team of consultants who will present to the brands and sales team for Knorr and suggest how they will solve the problem taking into consideration all the information provided in the case Be Creative and Think of something Unilever has not done before!

Structure You will present your marketing plan for Knorr in the form of a presentation. Your plan should clearly state the following: Market Development: Your recommendations on developing the soup market in Bangladesh and convert unhealthy snackers from fried snacks to Knorr soup Promotion: Your suggestions on possible communication media to be used and innovative design on ATL and BTL program in order to develop the market. Distribution: Innovative distribution model in order to reach a larger target group while keeping in mind the sensitive nature of a food product.

Further Instructions: 1. The solution has to be exhibited in the form of a presentation. (There are no limitations to slides). 2. Each teams will have 48 hours to solve the case, post which the Presentation has to be emailed to Tanvira Choudhury at the address of tanvira.choudhury@unilever.com 3. You may make any demonstrative material as a part of the final round presentation. You need not submit it with your presentation; you can bring them to the final round. 4. During the final round, each team will have exactly 15 minutes to present their case and then an additional Q/A session for 5 minutes. One or all members may present the case during the final round. Final Round The final round will be held on the 2nd of October 2011 at the La vita Hall at the Lakeshore Hotel in Dhaka starting at 3:00 pm. (Address given below) For Queries Please contact Tanvira Choudhury / Arifa Sultana if you have any queries or questions regarding the case. (Tel: 9888452)

Address Lake Shore Hotel
Road # 41, House # 46, Gulshan 2, Dhaka, 1212 Bangladesh. Phone : (880-2) 885-9991, 886-1787