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.
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:
The market positioning strategy is very important parameter for understanding the values as well as the preferences of the customers.
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 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.
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 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.
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 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.
POPs and PODs
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:
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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. |
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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 |
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Competitive product prices: The product price is competitive. The price is lower than the other similar packaged products that pertains to foreign Asian brands |
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Attractive packaging: the packaging reflects the authenticity of the product being Japanese with Japanese captions and English subtitles printed on the packets. |
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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)
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 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.
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PODs of the Nissin brand in Australia |
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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. |
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The successful market launch in neighbouring countries: the brand have successfully launched in New Zealand and that is a competitive advantage for the brand |
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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)
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 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).
Selection as well as justification of the brand elements
Brand name
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).
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)
URL
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.
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.
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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Quality |
Safe, nutritious and tasty |
|
Focus |
On variation of taste and the preferences of the Australian customers. |
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Heritage |
Founder of the Instant noodles |
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Edge |
Only Japanese brand to make a market entry with instant noodles in the Australian market. |
|
Uniqueness |
Comes in 8 different flavours which is not available for the other brands. |
Table 3: Table representing the 5 core market competencies of Nissin Noodles
(Source: Nissin.com, 2018)
As the target customer base of Nissin in Australia have showed a growing propensity towards Asian food and particularly noodles, the primary communication strategy that is to be adapted by the company is the exchange of messages that creates value. That is why, Nickson, & Baum (2017), opines that they have contracted celebrity chef of Australia in order to convey the values the company wants to promote, regarding the endorsement of the noodles. The celebrity chef would be conforming the richness of authentic Asian taste that the products have and express enthusiasm regarding the availability of the product in Australia. This is the first phase of customer communication that would be executed in the first five months. In the latter part, the company plans to create an effective media mix. The company would execute online brand endorsement through social media and paid websites. This is a media that is used by most customers of the age group that comprises of the potential section of the target customers’ group. The company in the last 3 months would adapt to the strategy of enforcing word of mouth publicity by distributing free samples of Nissin noodles and having people to taste Nissin noodles in big shopping complexes. Besides, the print media would also be used where by large articles of the product would be released citing the celebrity chefs posing with cup of Nissin noodles in hand (Abc.net.au, 2013).
Brand equity gives a retail brand a large headway in the rat race for occupying the target market. Many Asian food brands are trying to enter the Australian market with innovative Asian foods that are easy to make and are tasty. However Nissin is endorsing noodles, a product that is being popular in almost the entire world in new way. The price is competitive also (Statista.com, 2018). The preparation is hassle free and Nissin is one of the most trusted brands in Asia. The company used the Brand Relationship quality model for testing the brand awareness and likeability of people towards the brand. In order to do so the company collected customer feedback from shopping malls whenever anyone stated the Nissin noodles from their free samples counter. It was evident that 75% of the Australian regular shoppers of processed food favoured noodles as the ingredients of the product are fresh as well as tasty (Schroeder, 2016).
Conclusion
Analysing the market positioning and the nature of the consumer market for Nissin noodles in Australia, it can be concluded that the brand endorsement would be achieved commendably and the product promotions would create value and brand equity among the customers of instant noodles in Australia. Some major advantages like having 8 different variations of the product and having a clean image in the Asian market would give the company a competitive edge. The successful product launch and the excitement over Asian food can conclusively make the Nissin noodles a successful product launch in the Australian market.
Reference List
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Statista.com, (2018). Operating income of Nissin Foods Holdings Co., Ltd. from 2012 to 2017 (in billion Japanese yen). Retrieved on 11 August 2018. Retrieved from: https://www.statista.com/statistics/785872/nissin-operating-income/
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