Koka Noodles IMC 2014 - IMC report PDF

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MKTG1266 Mar ket i ngCommuni cat i on Gr oupAs s i gnment2–I MC

- Koka Purple Wheat Noodle -

Lecturer: Justin Kang Sion Hin Class: L01

Group ID. 14 Name Koh Hui Ling, Andrea Gui Sun Li Poh Wee Khai Nguyen Thanh Tung Kay Hui Min Lim Xin Ying Tan Wan Zhuang Content

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SIM / RMIT ID 10063281 / 3420574 10063508 / 3417396 10067072 / 3404833 10076274 / 3396302 10081344 / 3447703 10082965 / 3447820 10083441 / 3451267

1. Current Situation Analysis.........................................................................................4 1.1 Background Research and Analysis................................................................4 1.1.1 Internal Analysis...............................................................................................4 1.1.2 External Analysis..........................................................................................5 1.1.3 Consumer Behavioral Analysis.....................................................................6 1.1.4 Competitive Analysis....................................................................................7 1.2 SWOT Analysis..................................................................................................11 1.3 Key Marketing Problem / Opportunity..............................................................12 2. Key Strategic Decisions...........................................................................................13 2.1 Marketing Objectives.........................................................................................13 2.2 Communication Objectives................................................................................13 2.2.1 Category Need.............................................................................................13 2.2.2 Brand Awareness.........................................................................................14 2.2.3 Brand Attitude.............................................................................................14 2.2.4 Action Intention and Brand Purchase..........................................................14 2.3 Positioning.........................................................................................................15 2.3.1 Perceptual Map...........................................................................................15 2.3.1 Framework for positioning..........................................................................16 2.4 Campaign Target Audience................................................................................16 2.5 Brand Character and Personality........................................................................19 2.6 Campaign Budget...............................................................................................19 Table X: Campaign Budget..........................................................................................21 3. Creative Strategy......................................................................................................21 4. Media Strategy.........................................................................................................25 5. Other IMC Activities / Elements..............................................................................28 5.1

Interactive Media...........................................................................................28

5.1.1 5.1.2

Website...................................................................................................28 Social Media Platforms..........................................................................29

Social medial........................................................................................................29 5.1.3 5.2

QR Code.................................................................................................30

Packaging......................................................................................................30

5.3 Point-of-purchase..........................................................................................30 6. Evaluation and Control............................................................................................31 References:...................................................................................................................32

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1. Current Situation Analysis 1.1 Background Research and Analysis 1.1.1 Internal Analysis Koka Koka is a convenience food product under the Tat Hui Food Pte Ltd, incorporated in Singapore in 1986. In terms of market share, Koka is one of the most popular instant products in the Singapore. With the established differentiated product strategy of excluding MSG and preservatives in its instant noodles, Koka has created a successful product line of instant noodles made with local flavours thus far. Firstly as part of their global expansion strategy, the products were introduced to the Chinese grocery market in US, Europe and Australia. In the following year, Tat Hui started on its second phase of expansion by venturing into mainstream European and Middle Eastern markets and saw sales volume increase ten-fold.

Advertising Koka noodles are marketed through advertising, events (Road Shows, In-store advertisement), and celebrity endorsements. Koka has been advertising mainly through media channels such as television, movie theaters, and YouTube videos. Their main target audience appears to be the general Chinese population in Singapore as they solely air their advertisements in the Mandarin language. Koka often utilize humour in their advertising and this has allowed them to build strong brand awareness and recall with the local consumers. They have also periodically used price promotions to further promote their products and encourage consumers to start trial and adoption of their brand.

Company Growth KoKa’s company, Tat Hui Food Pte Ltd has been consistently growing at an average of 10% sales in the past 5 years. However, Tat Hui’s market share in the noodles category dropped from 8.5% in 2012 to 8.2% in 2013. This is mainly because of the entry of a direct competitor Nong Shim that swiftly captured an additional 5% of the market share in the past 5 years. With the new introduction of the purple wheat noodles however, Tat Hui Food Pte Ltd aims to recapture some of the market share they have lost and further growth their presence in the Singapore instant noodle industry.

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1.1.2 External Analysis Economic Despite being a relatively successful brand in the fast moving consumer market (FMCG), it is inevitable that Koka’s sales will be affected by the economic situations in the upcoming years. Market inflation would give rise to the cost of raw materials, resulting in an increase in price points for the “rather-high” price of Koka products in consumer’s minds. The increase in costs may possibly lead consumers in choosing cheaper alternatives that may or may not provide them with the same benefit. Adopting a healthy lifestyle The lifestyle habits in Singapore have slowly changed over the years; people are becoming more health conscious and is actively engaging health related event including changing their dietary. With the increase in healthy food flavor range, consumers will look more forward in purchasing the product and the satisfaction of good food and healthy life it provides. Although Koka’s market presence is there, the Purple Wheat variant has to increase its presence in the market, by boosting visibility and awareness among consumers. In addition, through brand association; generates peer influences. Technological Upgrading of machineries Koka has been constantly improving itself with more hi-tech technology that enables the company to produce more variety of food flavor, increase food quality and increase production level for a better productivity. Having to produce more packet noodles at a time also means that the cost price for one packet will be lower, thus eliminating the thought of “over-priced”. In addition, increasing efficiency couple with innovative technology improves not only the quality of the packaging and the products itself but allows Koka to increase their sales and visibility. Media technology The rapid growth of technological advancement plays a very big part in helping Koka to stay at the top of the industry. The role of the internet due to the development in technology helps greatly in consumer’s information search on the brand item as well as engaging the consumers through different media platform. Influencing consumer’s behavior and also bringing out the effectiveness of online advertising through social 4|Page

media platform. Social media could affects consumers choice of purchasing a product such as comparing the different variety of healthy noodles in the market through the main website, Blogger’s review, news, and other video available pertaining to their events, which helps increase exposure and their interest in the healthier choice. (http://www.youtube.com/watch?v=ExmJKudBh8s) 1.1.3 Consumer Behavioral Analysis In the recent years, there is an increase interest regarding the health and well-being of each individual, which leads to a change in the food consumption chain. Majority of the consumer have the perception that instant noodles is not healthy, fattening, high in cholesterol made with high preservative, and MSG that would possible lead to many health problems, if overly adequate consumption. With the presence of such negative news, post a potential threat to the consumer behaviour towards instant noodles. There are five behaviouristic groups of our product. Groups Consumer that is educated and aware of New category users our product. Consumer that only purchase Koka Brand loyals brand. Consumer that do not have a definite brand in mind and will purchase Favourable brand switchers alternative choice at different point of time. Consumer that purchase other brands Other brand switchers excluding Koka. Consumer that only purchase that one Other brand loyals brand excluding Koka Koka launched its new Koka Purple Noodles in relation to satisfy the shift in consumers’ behaviour towards healthier food category. Koka aims to attract possible potential target market and educate them the benefits of the “Purple Wheat” and how it proves a better choice as compared to the other instant noodles in the market. Advertising and promotion has been put in place in aid for the new line market maiden. Koka Purple Noodles is a great alternative for households’ members, working adult who works overtime, and for students whose parents are busy with work, not only because it is convenience, but because it is also definitely healthier as compared to takeouts. Moreover, with it light packaging, makes it a great choice for outdoor

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activities such as camping, trekking, or hiking. One contributing factors that can be taken into consideration would be the long shelf life span, that would most probably trigger, influence, and persuade the consumer’s buying decision. 1.1.4 Competitive Analysis Direct competition Features Koka

Price (5 packs) Target Consumers Distribution

Cooking Times Calories Per serving Total Fat Product Claims

Maggi

Nong Shim

Nissin

Myojo

$2.35 - $2.90

$2.10 - $2.95

$3.75

$2.30

$1.85 - $2.45

Healthconscious eaters Supermarket

General consumer

General consumer, Students Supermarket

General consumer, Students Supermarket

3 minutes

General consumer, Vegetarian Supermarket Mini market 7-11 2 minutes

5 minutes

5 minutes

191

220

4–5 minutes 240

190

220

0.6g “Love Purple, Love Me – PurpleslyMee ”

8.2g “Fast to Cook, Good to Eat”

8g “Taste NONGSHI M Feel the Happiness”

7g “Noodles on!”

4g “‘Air Dried Noodles’ that taste better”

Supermarket

Indirect competition McDonald meets the needs of different demographic consumers, who have different reasons visiting it. Other than taste, children prefer McDonald for its attractive “service-scape”. Teenagers and working adults are attracted not only by its physical environment but also the other service attributes that they provide such as the drivethrough service, 24/7 opening hours and house delivery. Gardenia holds a wide variety of assortment catering to the different demands of the potential customer needs. It is convenient, healthy, cheap, and need almost “zero” preparation and can be served alone or with other complimenting products such as tune, jam and cheese. 6|Page

Campbell Chunky soup is one of the most popular “ready-toserve” canned soup that can be purchase from the majority of the supermarkets. In conjunction with healthy-eating, Campbell soup is made from 100% natural ingredients to satisfy its healthy hungry goers. It is easy to make and comes is a deep variety as well Porter’s Five Forces Analysis Supplier  Number of supplier  Size of supplier  Switching cost  Unique products  Ability to substitute Barrier to Enter  Timer and cost of entry  Knowledge of market  Economies of scale  Cost advantage  Technology

Buyer  Number of customer  Buying volume  Price elasticity  Incentives  Brand identity  Switching cost

Substitutes  Substitute performance  Cost of switching  Buying willingness

STRATEGIC POSITION Competitive Rivalry  Number of competitors  Extension barriers  Niche, Quality  Differentiation  Industry concentration  Diversity of competitors

Current brand item evaluation Product With the intense competition in the market, Koka have to differentiate itself in order to stand out among its competitors by enhancing its brand packaging, quality, width and depth assortments, and to satisfy consumer needs. Koka new “Purple Wheat” aims to satisfy the shift in consumers’ behavior caused by the social factor. Although Koka has been in the market for a relatively long time, they are usually not the first brand that comes into the consumers ‘mind. However, the award winning of its latest creation “Purple Wheat” helped Koka greatly in gaining more recognition and makes awareness of its healthier choice product line existence which also indirectly promotes the brands to the public. 7|Page

Koka fashion their product with new flavor and packaging structure to attract new customers while retaining the old ones with new variety. The unique color of the “Purple Wheat” which is not commonly seen has becomes Koka’s brand image and creates a strong brand awareness (Brand Recall) for its consumers. Koka’s new “Purple Wheat” aims to target new audience, a specific group of consumers that shows great interest in healthier food category. And this is the most prominent compelling benefits offered by Koka that stands out from its competitors. The Healthier choice pyramid is a proof to which Koka can deliver the benefits that they promised.

Price Koka takes a few factors into account while coming out with a pricing for its product, as price is after all the one, which create sales revenue. Some of the factors include the fixed and variable cost, market competition, the targeted group and their willingness to pay.

Although the pricing of Koka’s noodle is relatively high, it is still considered acceptable and within an affordable range because Koka utilize hi-technologies machines for its noodles. Furthermore, these hi-technologies machines are being used not just solely for the noodle production itself, it includes other attributes such as the quality of noodles and condiments made, the packaging which aids in prolonging the shelf life and the level of production.

Promotion Consumer-oriented promotion such as samples and contest has been put in place to tie the products to the consumers, with a special reason to purchase the newly promoted brand on trial or repeat basis. Advertising is one of the many tools used to increase visibility of product in the market, staying relevant in consumer’s mind and reinforcing positive consumer perceptions of the brand. Koka did TV advertisement as part of it promotion move to generate wider target market range. Although promotion would be able to stimulate sales force enthusiasms for a new product, hold current user by loading consumer and boost shot term sales. It does not give consumers any compelling long-term reason for return purchase. 8|Page

Distribution Koka’s product is available at all supermarkets, convenient stores and petrol stations around Singapore. There is also distribution exported to other countries such as the Middle East, Asia, and the United States and it will continue to strive for a greater height in becoming one of the strong global brands. 1.2 SWOT Analysis Weakness Strength  Low level of advertisement and  Brand identify as noodles for health conscious promotional activities target market  Low brand loyalty  Purple Wheat Noodles that has won the  Overpriced compared to other Singapore Institute of Food Science and brands in the market Technology (SIFST) 2009 Food Product Innovation Award.  An international brand available in over 40 countries such as Europe, North America, Middle East, and Asia.  Wider range in terms of flavour available Opportunities  Growing package and canned food market  Diversification  Large domestic markets  Export markets

Threats  High competition  Price wars with established brands  Low barriers to enter in the business  Low media

1.3 Key Marketing Problem / Opportunity Identification of Marketing Problem or Opportunity Lack of product knowledge Koka aims to educate their consumers on the product knowledge through marketing campaigns. Due to negative reports that instant noodles are unhealthy and deem harmful to one’s health, leaving non-user, current-user and potential-user leaving the market resulting in lost of new potential customers and revenues. Having more educational advertisement and posters, are essential in addressing these concerns to assure consumers that Koka products are the healthier version of instant noodles. In hope to build higher brand equity among consumers by showing them that Koka cares for their well-being too. Sustaining Marketing Leader status and staying relevant Being a relatively successful brand in the instant noodles market, Koka needs to continue to sustain itself, while enhancing its brand equity in order to increase its brand loyalty, so to differentiate their brand effectively from competitive offerings and 9|Page

insulate themselves from future price competition. This can be done so through road shows and increased sampling activations among consumers.

2. Key Strategic Decisions 2.1 Marketing Objectives The marketing objectives for the new purple wheat product line aims to communicate and reshape consumers' attitudes and perceptions towards instant noodles as a nutritious and delicious meal alternative. Koka aims to increase sale profits and point of purchase shelves in various supermarkets by 30%, market share of 8.25% to 11.25% in the next 12 month and increase in revenues to 10million by the end of fiscal year. To ensure the objectives are achievable and realistic, factors such as a growing trend in preference towards healthy meal alternatives, a celebrity endorsement and high exposure rates of the selected communication media supports the forecasted improvements in sales. All objectives are set within a 12 month timeframe. 2.2 Communication Objectives Koka’s main communication objective is to educate consumers on the fact that instant noodles can be a healthy yet delicious meal alternative, in the form of Koka’s purple wheat based noodles. With that, they aim to attain a 70% exposure rate within a time frame of six months. Differentiation strategy of being t...