Nissin Noodles: Brand Development and Marketing Plan for Australia

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This report details a brand development and marketing plan for Nissin Noodles' launch in the Australian market. It begins by establishing assumptions about market stability, economic conditions, and budget availability. The report then frames the market position and strategy, identifying the target market (Australians aged 15-45, particularly those with Asian heritage) and analyzing competitors. Key elements include defining Points of Parity (POPs) and Points of Difference (PODs) to highlight Nissin's competitive advantages, such as its wide range of flavors, quality noodles, competitive pricing, attractive packaging, and the popularity of instant noodles. The plan also addresses brand awareness and promotion strategies, along with a communication strategy tailored for the Australian market. It concludes by emphasizing the impact of brand equity and providing a timeline for implementing the proposed strategies.
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Running head: BRAND DEVELOPMENT AND MARKETING
Brand development and Marketing
Student’s Name
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2BRAND DEVELOPMENT AND MARKETING
Table of Contents
1. Introduction............................................................................................................................3
2. Assumptions..........................................................................................................................3
3. Market position and Market Strategy framing.......................................................................4
3.1 Target Market and competitive Strategy formation.........................................................4
3.2 Analysis of the competitors and competitive advantage..................................................6
3.3 POPs and PODs................................................................................................................7
3.3.1 POPs...........................................................................................................................7
3.3.2 PODs..........................................................................................................................8
4. Brand awareness and Brand Promotion.................................................................................9
5. Market association...............................................................................................................10
6. Communication strategy for Nissin Noodles in Australia...................................................11
7. Impact of Brand Equity........................................................................................................12
8. Conclusion............................................................................................................................12
Reference List..........................................................................................................................14
Appendix1: Timetable for product entry planning...................................................................17
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3BRAND DEVELOPMENT AND MARKETING
1. Introduction
The report establishes the product launching plan of Nissin foods who are going to launch
their instant noodles in the Australian market. After successful market acquisition in Southern
Asia, the founder of instant noodles, Nissin is all set to enter the Australian market. This
report makes a demographical analysis to highlight the feasibility of the product in the
market. The POPs and the PODs are also highlighted. Besides the market competition of
Nissin in Australia have also been discussed. Nevertheless, the absence of major competitors
would help the company. The media promotion and the customer communication strategies
of Nissin for endorsing the product and how they are going to be implemented in the 12
months have also been highlighted. Lastly, a detailed timeframe highlighting the
implementation plan of the discussed strategies have also been prepared in the context of the
Australian market.
2. Assumptions
This report regarding the product launch in the Australian market by Japanese food
makers Nissin would be contextualised provided the following conditions hold true for the
upcoming 12 months from the date of the product launch:
i) The market of processed and packaged foods would remain stable with few or no
new entrant of foreign origin sharing the target customer base in Australia
(Madanoglu and Castrogiovanni, 2017).
ii) The economy of Australia and conclusively the purchasing power of the
Australian target customer base would not fluctuate in the upcoming 12 months
iii) The company would not redefine or limit the budget for promoting the product in
the Australian customer market and the available budget remains sufficient in
order to endorse the
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4BRAND DEVELOPMENT AND MARKETING
iv) The company have carried out an extensive market survey in order to apprehend
the demand of the food product prior to the launch of the product in the Australian
market
3. Market position and Market Strategy framing
The market positioning strategy is very important parameter for understanding the
values as well as the preferences of the customers.
3.1 Target Market and competitive Strategy formation
For five decades after the launch of the instant noodles in global market, the product
has now reached a position to enjoy heavy customer’s demand in the Australian market. As
per O'Connor (2017), this has enticed the producers of instant noodles in the three countries
of Japan, China and Indonesia to start exporting their products in the markets of Asia.
According to the data provided by the Japan centred World Association for Instant Noodles,
the developing countries of Asia, Oceania and Latin America are gradually becoming
prospective markets for the instant noodles companies. After accomplishing a sales value of
101.4 million units in the combined market of the Indian subcontinent, the Nissin Company
of Japan is attempting to expand the sales of their product to the Australia with the product
“Nissin Noodles”
The company also have accomplished a sales venture in New Zealand, a market that
have demographic similarities with the Australian market. The company accomplished a sales
of 5.1 million units in New Zealand in 2017. In fact, Nepal and Jamasb (2015), opines that
the brand Nissin have an unique brand awareness in the Australian market as Momofuku
Ando who founded the innovative instant pre dried noodles and Nissin Noodles was the first
brand to launch its products physically in Australia. Besides, the market value of Noodles as
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5BRAND DEVELOPMENT AND MARKETING
a major consumable have also gained prominence in Australia over time. The market value of
ready-made and instant noodles sales in Australia have stably increased over the last five
years also.
2013 2014 2015 2016 2017 2018
0
2000
4000
6000
8000
10000
12000
14000
5100
5900
7000
8200
9200
11858
Mark et Value in m illions
Market Value in millions Linear (Market Value in millions)
Graph 1: Increase in market value of instant noodles as prepared food
(Source: Price, 2016)
In fact, according to the statistics provided by Zheng and Lin-na (2015), the internal
noodles brands have not grown in popularity compared to the noodles sold by the Chinese
and Japanese noodles shops in Australia. Moreover, the launch of the Sapporo Ichiban
noodles of Japan in Australia and Papua New Guinea have been proven to be immensely
successful. The gross earning of the company have been AUD 8.5 million in the financial
year 2016-2017.
The working community of Australia have largely accepted Asian street foods and the
popularity of such foods like noodles, momo, and curry and so on have been rising. However,
the popularity of instant noodles have surpassed others in terms of popularity with the
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6BRAND DEVELOPMENT AND MARKETING
working class of Australia (Yang, 2018). The primary reason for that is that instant noodles
are easy to make and the preparation is hassle free. The taste has an admixture of the typical
Asian seasonings. In this context, it requires mention that Nissin Noodles has planned to
release 8 different flavours in the Australian market.
The Australian community pertaining to the age group of 15 to 45 are shown most
interest towards consuming noodles on a daily basis. It is ideal for mitigating hunger and
serves as snacks as well as main course also. The nutritive value of noodles are also high with
the major component being whole wheat flour. The company has an initial plan to launch 3
best and most popular flavours in the Australian market, based on the market survey data and
the experience from the business operations in the New Zealand market in 2016-2017
financial year (Zhao and Priporas, 2017). Later based on the acceptance of the product the
rest of the five products would be launched. The most potential demographic group (age
group 15 to 45) which have the maximum power and capacity have shown interest towards
the product (Surdu, Mellahi & Glaister, 2018). This is why, Nissin have shown interest in
launching the product in Australia. Again, according to the data provided by Nelson et al.
(2018), there is large part of the Australian community comprising of people who are
Chinese, Japanese, Indonesian, Malaysian, Indian, and pertaining to other Asian ethic groups.
Noodles as a Fast food is already highly popular among them. As an outcome, the company
expects that the sales would automatically be high in Australia.
3.2 Analysis of the competitors and competitive advantage
The market competition of same product category and same origination is less at the
moment. However, market trends shows that in the near future many indigenous products
brands of instant noodles might crop up in the Australian market. The current indigenous
brands that exist in the market of Australia do not have more than a market acquisition rate of
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7BRAND DEVELOPMENT AND MARKETING
more than 35 to 40%. The main reasons for this, according to Fofana and Jaffry (2015), are
the seasonings that accompany the noodles are not great in taste. Often the quality and
texture of the noodles are not able to satisfy the customers.
In fact, the Australian target customers actually tends to favour the taste of the
noodles served at the Chines and Japanese noodles shops. They expect a similar taste in
instant noodles also. However, after the launch of Koka brand of instant noodles in Australia,
the brand had gathered a considerable figure of customers in the country. Nevertheless, Schu
and Morschett, (2017), opines that the start-up budget of the company being low and the sales
distribution channels in Australia being very difficult owing to the topographic disorientation,
the sales channels could not operate productively and the operational costs of the company
exceeded. As an outcome, the per-unit price increased and gradually the customer market
who supposed the increased pricing to be unjustified started condemning the product.
3.3 POPs and PODs
3.3.1 POPs
The points of parity that the customer might enjoy regarding Nissin noodles are
aplenty. The brand have the liability to meet their projected POPs in order to achieve the
Point of Sales in the Australian market. Therefore, Hohenthal, Johanson and Johanson
(2015), opines that having competitive POPs in contrast to the other companies of Instant
noodles can have a high value of POD also. Particularly when the company is attempting to
launch a new brand in the market, keeping cutting edge, pre-defined and client oriented POPs
helps in substantial market promotions and easier occupancy of the customer market in the
target demographic group. The launch brochure of Nissin noodles reflect the following POPs
majorly:
POPs
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Variation in flavour: The Nissin company is going to
release the products in 8 different flavours which would
represent the typical Asian tastes.
Quality of noodles: the noodles re being manufactured by
authentic chef of Japan who are traditional noodles makers.
The noodles have a blended flavour of salt and oil which
adds to the richness of taste
Competitive product prices: The product price is
competitive. The price is lower than the other similar
packaged products that pertains to foreign Asian brands
Attractive packaging: the packaging reflects the
authenticity of the product being Japanese with Japanese
captions and English subtitles printed on the packets.
Popularity of instant noodles: Instant noodles as anew
market product have gained high level of popularity in
Australia.
Table 1: The projected POPs of Nissin instant noodles in Australia
(Source: Nissin.com, 2018)
3.3.2 PODs
Points of Difference are the major attributes that customers share with the brand to
their advantage. These attributes are most likely to be founded upon the brand and not any
market competitive in the target market where the product is to be launched. As opined by
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9BRAND DEVELOPMENT AND MARKETING
Ducan et al. (2015), the PODs that Nissin brand shares with the customers make the brand
unique in the market of Instant noodles in Australian and influences the customers to make
the brand an automatic choice. This is not a luxury product brand. However the company is a
foreign brand in to the small retail food market and endorsing a new product line. This is why
the PODs that the brand have in the Australian market are very crucial in the context of
giving it a high place in the Australian market.
PODs of the Nissin brand in Australia
Founder of instant noodles: the owner of the brand Nissin food
had also been the founder of instant noodles. Hence this is a
great marketing scope for the brand also.
The successful market launch in neighbouring countries: the
brand have successfully launched in New Zealand and that is a
competitive advantage for the brand
Successful presence in Asia: being an Asian brand the
customers have the assurance that the taste of the products
would have the authentic touch of the Asian seasonings.
Table 2: PODs of the Nissin brand in Australian market prior to the product launch
(Source: Nissin.com, (2018)
4. Brand awareness and Brand Promotion
The brand awareness is an integral part of the market positioning of the product in the
market. Recently, various adverse reports have been published regarding instant noodles and
its contents. A survey of the recent market products of the frontline noodles brands in the
Asian market have confirmed the presence of Monosodium Glutamate more than the
permissible limit. Hence few regulatory bodies of Asian countries had drawn a temporary
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10BRAND DEVELOPMENT AND MARKETING
seizure on the sales of the products. However, Nissin have never been in the list (Abc.net.au,
2013). This is a positive factor that the company have been using in their market promotions
over TV, internet, social media and print media. The company had accomplished brand
promotions through a popular celebrity chef of Australia who is seen endorsing the product
and complimenting the authentic Asian flavours. In newspapers like Sydney Morning Herald
and The Australian, the company have provided detailed illustration of the specific by POPs
of the company’s instant noodles. According to the information provided by Dew et al.
(2018), in Australian supermarkets like JUSCO and Woolworths, the company have started
campaigns which allows the customers to taste the products and if they like the taste and
provide good reviews they are allowed to take free packets of Nissin noodles along with
them.
The company have made use of the three stage theory of branding. Illustrative
packaging and celebrity endorsements have accomplished the designing phase of branding.
The company makes value proposition by means of endorsing the product as a product that is
a quick snack that can be made anywhere anytime with addition of hot water only. The last
stage of the model is positioning in the market. The company wants to achieve a market
position as an authentic Japanese brand professing in a truly Asian food which none but the
authentic company can make at its best (Nissin.com, 2016). Nevertheless, there are no major
Japanese brands of instant noodles in the market. This is why the market positioning that the
company would achieve in the coming 12 months would give them a standard position in the
Australian market (refer to appendix 1).
4.1 Selection as well as justification of the brand elements
1. Brand name
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The decision regarding the brand name is crucial. Customers associate the brand name
with products. In case of apparel brands, the UK customers prefer brand names that are short
and appealing. The name Next PLC have a futuristic appeal and hence audiences seem to like
the brand name (Netxplc.co.uk. 2018).
2. Logo
Logos of the apparel brands are nowadays flaunted by the companies and the
customers have also accepted them as style statements and they also love to flaunt brand
logos of the popular apparel brands. The white imprint against black background reflects
boldness and personality of the wearer.
Figure 1: Logo of Next PLC
(Source: Netxplc.co.uk. 2018)
3. URL
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12BRAND DEVELOPMENT AND MARKETING
The URL of the company operates under the UK regulation and gives sit the
authenticity of being a UK based brand. Since no online sales link is associated with the
parent website of the company other than a catalogue of the popular models of the products,
this should not create any problem for the customers.
4. Packaging
The packaging reflects the premium quality of the products in its wrap of bold and
solid colours and the simple interface reprints that the product are affordable by the middle
class.
5. Market association
5.1 Brand Image
The basic market associations are attributes as well as benefits. The brand attributes of
the company are the uniqueness of the taste of the seasonings and the availability of 8
different flavours. This would help the product to gather a variety in the customer base. Other
than that the ease of preparing this tasty food which requires addition of hot water only, is a
quirk in the pot. The other features include a clean brand image that would entice the
customers to choose the products of Nissin without hesitation. The spaghetti style Ramen
noodles of this brand is also a positive factor that would provide the Australians a fusion of
Italian and Asian flavours.
Another aspect of market association is providing benefits that are faced towards the
customers. The product is particularly favourable for children who want tasty food for
snacks, and side by side the food is healthy also as it have ample nutritive qualities. A list of
5 primary advantages of the product is listed hereby.
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