TWO BRANDS

Nissin’s foundation

Nissin founder was Momofuku Ando, he had always instilled a sense of commitment and quality in Nissin products. Today, Nissin's corporate philosophy inspires this same commitment to taste, convenience, and quality. Mr. Ando began the company as part of a humble family operation back in 1948. Faced with sparse food sources after World War II, Mr. Ando realized that a quality, convenient ramen product would help to feed the masses. His goal was to create a satisfying ramen that could be eaten anywhere, anytime.

Nissin Food Products Co., Ltd., established in 1958, has about 25 production facilities in eight countries. Continuously innovating new products, it was the first company to launch instant noodles in 1958 and cup noodles in 1971. It has been the market leader in cup noodles and has served over 10 billion servings.

Indo Nissin foods have always been innovative in terms of new product development. It has launched new innovative products in India to cater to a specific user segment. In view of an increasing demand for processed foods, it plans to tap a larger share of this potential market.

Nissin in INDIA

Nissin Food entered India in 1988 through a joint venture with Brooke Bond India Ltd. (Brooke Bond later merged with HLL) to form Indo Nissin Foods Ltd. However, the agreement broke off between the two parties in 1998 and HLL pulled out its stake from the company. HLL also gave up the distribution of Indo Nissin products. The company then decided to distribute the products through Marico Industries.

Top ramen in India

The company manufactures noodles and a variety of home food. Top Ramen is the major brand of the company in India with approximately 20 percent market share in the instant noodle market. Indo Nissin uses the technology of its parent company for manufacturing its products .Production facilities are located near Delhi and in Bangalore. It is a ISO 9002

sales

It registered a 31 % healthy growth in net sales for the period 2002-2005 .

The company had net sales of US$ 8.61 million for year ending December 2005.

DISTRIBUTION AND MARKETING

In 1998, the marico entered into an agreement for distributing and marketing Indo Nissin's Top Ramen and Cup Noodles brands in India.

However, when the agreement was last renewed in 2006, the alliance was scaled down to cover only distribution. It is understood that the increased scale of business has prompted the company to end the agreement.

NISSIN’S CUP NOODLES

Indo Nissin has taken the onus of creating a new Cup Noodles market by bringing in its brand from the cold and thereby adding to the volumes of its noodles sale in the country. Being a premium product (Rs 20 for 80 gm), Indo Nissin has unleashed the brand to select markets capable of consuming and relishing the `concept' of Cup Noodles.

Indo Nissin hoped to make a comeback with a massive free sampling exercise which was launched across cities which had the potential to accept and consume the brand.

EVOLUTION

Top Ramen was initially launched as a soup style noodle, which was not received very well in India. It was re-launched in its current avatar, with modern western imagery. The brand targeted older kids who wanted to make a personal choice. "Don't be a noodle, be a smoodle" evolved as the base line for the brand. Top Ramen Curry Smoodles was launched to expand the category. A spicy and saucy product was introduced, again aimed at young adults. Hindi film star, Shahrukh Khan was endorsing the new product. The company also launched it’s animated characters such as macho man and duck (both for veg and non veg respectively)

Consumers

Compared to the market, Top Ramen has a higher skew, towards upper Socio Economic Class (SEC) consumers. The superior taste experience has helped develop a loyal consumer base for Top Ramen.

Major competitor

Brand : MaggiCompany: NestleAgency" PublicisMaggi owned by Nestle is a brand that created a category for itself in the Foods market in India. The brand which is famous for the Noodles has evolved into the umbrella brand for Nestle in the Food segment.Nestle launched its noodles in the Indian market in the early 1980's. Nestle wanted to explore the potential for such an Instant food among the Indian market. It took several years and lot of money for Nestle to establish( I would say create) its Noodles brand in India . Now it enjoys around 50% market share in this segment which is valued at around 250 crores

MAGGIE’S MARKETING

NIL aggressively promoted Maggi noodles through several schemes like distributing free samples, giving gifts on the return of empty packs, etc. MAGGIE’S advertising too played a great role in communicating the benefits of the product to target consumers. Through its ads, NIL positioned Maggi as a 'fun' food for kids which mothers could prepare easily. Taglines like 'Mummy, bhookh lagi hai' (Mom, I'm hungry), 'Bas 2-Minute,' (Only 2 minutes) and 'Fast to Cook Good to Eat' effectively communicated the product's benefits to target consumers.

CUP NOODLES

NISSIN INDIA LTD. WAS THE ONLY MAIN COMPANY MANUFACTURING CUP NOODLES THAT TOO AT A CHEAP RATE OF RS.20 . MAGGI TAPPED THIS SEGMENT TOO BY LAUNCHING ITS OWN CUPPA NOODLES IN 2008 BUT AT A RATE OF RS.25 WHICH WAS HIGHER AS COMPARED TO NISSIN’S CUP NOODLES BUT DUE TO NEW PACKAGING AND HEAVY ADVERTISMENT MAGGI’S CUPPA NOODLES SALES WERE FAR BETTER THAN NISSIN’S CUP NOODLES

What should Nissin do to increase its market share:

•Nissin should also increase its depth in product mix by launching various Types of noodles as launched by MAGGI such as aatta noodles etc.•Nissin should launch its own new products in order to compete with the rival Brand MAGGI which has various products in its noodle line . •Currently nissin has three products in its noodle line i.e top ramen ,top ramen curry,cup noodles (vegetarian and non-vegetarian) it should understand the taste of the Indian people and then launch the products accordingly

Marketing mixProduct- as mentioned before in product mix it should develop new varieties of noodles to satisfy

different taste preferences of different consumers. Packaging

As u can see above packaging of Nissan cup noodles is not at all attractive as compared to maggi cuppa mania so it should change the packaging and make it more attractive in order to grab the attention of the consumers.

Place- top remmon products are not available everywhere so the company should emphasize more on distribution and should select the best distribution channel so that consumers can have easy access to their product.

Price- top remmon is selling its cup noodles for Rs. 20 and maggi is selling its cuppa mania for Rs 25 still maggi is covering the major market so any change in prices is not going to increase there market share so preferably they should not make any change in their prices.

Promotion

Advertising

Space for video Next about advertising ,sales,etc

Advertising

Nowadays top remmon is not showing any advertisements on the television therefore only the old generation is aware about the company and their products and not the coming one so they should actively participate in advertising and create its awareness among the consumers and try to convince them to try top remmon at least once which would help the company in building its brand.

Sales promotion

Total Product Concept

The taste of the Nissan's noodles is not preferred by Indian consumers so they should make a market research on this core product and identify what is the expected product by the consumer and innovate their product according to the taste and preference of the indian consumers.