Market Segmentation of Knorr

Carl Heinrich Theodore Knorr founded the German food and beverage brand Knorr in 1838. The creator was an expert in food drying processes, which he utilized to manufacture ready-to-eat soups, vegetables, and his renowned Knorr’s Bouillon while retaining its taste and nutrition content. Today, Knorr is one of the world’s leading food companies, and the company’s founder’s enthusiasm for fine cuisine and various flavors from around the globe lives on. This blog is about to reveal everything.

Knorr segmentation approach

But first, commercial, to better understand their approach.

According to recent data, 59% of Americans say healthy food tastes less delicious. With its Taste Combos campaign, Knorr has set out to prove them incorrect. The campaign, led by star rapper Cardi B, who not only supports flavor Combo meals but also makes them herself, tries to present Knorr as the brand that adds fast food flavor appeal to home cooking. #TasteCombos.

Knorr is trying to hammer home the Canadian debut of its “Taste Combos” with a new Toronto pop-up as part of a more significant marketing push during a “year of transformation” for the brand, according to Shagufta Hooda, its Canadian marketing lead.

The “Yummy K’s” pop-up, in the style of a takeaway restaurant, will operate from the house at 179 Crawford St. in the city’s Trinity Bellwoods neighborhood from August 10 to 13. The concept’s goal is to show that “Taste Combos” meals can compete with traditional takeaway cuisine, and it has hired restaurateur and celebrity chef Matty Matheson to deliver on that promise by designing some of its concoctions.

The pop-up is the latest installment in a more extensive campaign that began earlier this summer and includes Cardi B, a rapper and notable home cook. The campaign features Unilever’s first TV investment in recent years, as the company looked to broaden the reach of the new master brand refresh and “tap into the wide appeal of Knorr with a variety of audiences,” according to Hooda.

And now, what about the company’s target market? The Naysayers are the segment that Knorr has chosen to target.

What do we know so far about Naysayers?

Values and lifestyle:

The bulk of skeptics look at life through a practical lens. They require consistency and permanence. As a result, it gives them enough security to live in peace. For example, having a roof over their heads is one way to help with this.

This part is not very adaptable when it comes to changing. As a result, skeptics have never had to deal with technology’s rapid advancement.

To avoid misunderstanding, naysayers, for example, choose tried-and-true goods.
Critics rarely give career growth much thought. They tend to dismiss criticism from family and friends, which may come from their fears.

His part does not get things done until it is required. For example, they will not go to the doctor unless there is an emergency.

Skeptics dislike risk-taking and experimenting with their conduct. They are unconcerned with their physical appearance. As a result, they disregard current fashion trends and do not incorporate them into their ensembles.

Using the brand:

Because critics are careless with their looks, they choose clothing for comfort. It is more important than fashion. Their pragmatic approach extends to brand adoption.

According to critics, there is little differentiation between well-known brands and others. They only make purchases when required or when something goes wrong.

Naysayers do not make much money because of their trade. As a result, clients must be cautious when making purchases. This group deliberates before making a purchase.

Skeptics fiercely seek discounts and exceptional offers. They also enjoy shopping at secondhand stores. They would prefer to get various products rather than a single high-quality gift.

Other unique facts are as follows:

They spend most of their time at home with their families, cooking or watching television. They observe but do not engage in sports. This population is disinterested in cultural and artistic activities. Naysayers are familiar readers and radio listeners.

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Positioning strategy of Knorr

Knorr is a dry soup brand that competes with names such as Chings Secret and Maggi. Although Knorr now leads the sector, the brand faces severe competition from Chings Secret. However, the brand has the distinct benefit of being the first to own the category and hence has an influential position in customers’ minds. The brand’s overarching positioning comes in two dimensions. 1) flavor and 2) health, which aligns with the brand’s worldwide branding, which is also about taste and health. It also complements the brand’s central identity, which is SOUP.

Chings Secret, on the other hand, is positioned as authentic Chinese; this positioning is vital for the brand because it is also present in quick food goods such as sauce, instant Chinese mix, vinegar, sweet corn, Hakka noodles, and so on. As a result, the positioning as proper Chinese improves the brand’s core, which is instant Chinese food.

Maggi, another marginal dry soup mix industry participant, has expanded into the area to capitalize on the brand image. Maggi, on the other hand, is too “noodleish” to provide a real threat to Knorr. It does not imply that Maggi made a mistake by expanding into this area; instead, the extension serves the brand well by bringing in new money and complementing the company’s primary identity, quick food.
As a result of its relevant positioning, the brand Knorr is likely to stay the market leader in the foreseeable future…unless it deviates and goes into thoughtless expansions (there have been reports of the brand spreading into other categories in the past).

Knorr-Bremse’s global brand strategy evolved from its development: Knorr-Bremse began its external expansion in 1985, when it acquired several well-known enterprises, including IFE, New York Air Brake, and Kiepe Electric. At the time, it was the proper option for these enterprises to keep their current trademarks and logos, both in terms of their reputation and from the perspective of their customers. With the Knorr-Bremse umbrella brand’s expanding worldwide market anchoring and international image as the market leader, it is natural to connect the historically evolved brand landscape more closely with Knorr-Bremse.

Knorr’s Marketing Mix

Product:

Knorr is a primary German packaged food and beverage brand. Knorr’s marketing mix includes a wide range of items in the ready-to-cook and frozen food segments, with the primary categories being soups, noodles, and various ready-to-cook frozen products such as roll-fillings broth cubes. Knorr soups comprise 100% natural veggies with no additional preservatives and come in 18 flavors classified into two categories: traditional and foreign. Thick Tomato, Hot and Sour Vegetable, Sweet Corn Vegetable, Mixed Vegetable, Sweet Corn Chicken, and Chicken Delite are classic flavors. At the same time, exotic flavors include Thai Vegetables, Italian Mushrooms, Shanghai Hot and sour Chicken, Hong Kong Manchow Noodles, and Mexican Tomato Corn.

All of these soups are also available in cup-a-soup form. Knorr’s noodles include Schezwan noodles, Hot and Spicy noodles, and Soupy noodles, a combination of soup and noodles. Aside from that, Knorr seeks to develop localized flavors as part of its product strategy. In India, for example, it has entered the spice market with its Knorr Masala products. Sambhar Masala, Chicken Masala, Chana Masala, Pav Bhaji Masala, and Biryani Masala are among the eight masalas introduced by the firm. Knorr has also introduced ready-to-cook local foods such as Dal Makhni, Punjabi Chicken Curry, and Tawa Chatpata, as well as wrap and roll fillings such as Chinese Chow and Chicken Masaledar.

Price:

Knorr’s goods are priced somewhat lower than competitors due to the company’s penetration pricing strategy. The firm faces stiff competition from established food brands such as Nestle’s Maggi, particularly in Asian regions such as India, Pakistan, Malaysia, and Indonesia, where it controls more than 50% of the market.
Many local companies, including Maggi, Patanjali, Yippie, and others, compete with Knorr’s already secondary market share in these nations. These factors enable Knorr to keep its prices low and create a differentiating feature for customers by offering value-for-money products. In India, you can buy Knorr instant noodles in 70-gram boxes for Rs.15. It charges Rs.50 per pack for the ready-to-cook category.

Place:

Knorr is prevalent in over 78 countries worldwide. As a subbrand under the FMCG giant’s umbrella, it utilizes Unilever’s current distribution and delivery channels in each nation. Knorr is a Hindustan Unilever subsidiary in India, with a network of 4000 redistribution stockists reaching about 6.3 million retail shops. Knorr goods may be found in practically every retail store, both organized and unorganized. Knorr’s approach is being present at all conceivable places of sale. It is available in almost all metropolitan retailers and serves over 250 million rural users. It is also available in online grocery stores, such as Big Basket in India, which sells all items created under the Knorr brand. Knorr is also quite active on social media, having over 21 million likes on its Facebook page. It also includes localized versions of the page for each country where it is available.

Promotion:

Knorr employs a bold marketing and promotion approach in its marketing mix for its products. Each new product introduction comes with strongly promoted advertising campaigns on television and in local publications. It also uses celebrities to promote its products, such as the well-known Indian film actress Kajol in India and Omotola Jalade Ekeinde in Africa. Most of those advertisements center on the relationship between a mother and her kid, which utilizes prominent chefs to support its Knorr Masala product line or other ready-to-cook items to boost its reputation. Knorr also participates in point-of-sale marketing, such as appealing shop layouts and unique shelves in supermarkets for its goods. The point-of-purchase promotions allow it to interact directly with buyers at crucial touchpoints, which is a significant incentive for sales. Knorr has also been highly active on social media in recent years, with live pages, releasing new products via Facebook and YouTube videos, and creating much buzz with its #LoveAtFirstTaste campaign.

The “Market Segmentation of Knorr” blog has come to an end. We examined its segmentation, positioning, and marketing mix to uncover how it maintains its performance. This and more blogs like this you can find on our main page. We update our feed regularly with new blog content.