Introducing the Knorr Brand in Cuba

INTRODUCING KNORR IN CUBA4

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Part 1: Company,Brand &amp Competitive Summary

Knorr is a food and beverage company owned bythe multinational, Unilever (Knorr, 2015). The company started out in1873 through experimenting by drying vegetables to preserve them andadd flavor. The company’s breakthrough came in 1912 when itintroduced the Bouillon cube. The cube was a type of meal that didnot require the consumers to start preparing a meal from scratch. Itfast gained popularity, especially among people who were too busy toprepare a decent meal.

The brand’s expansion in the internationalmarket began in the 1950s. By 1957, Knorr had its presence in eightcountries. As of 2000, Knorr had established itself in 90 countries.The primary secret behind this magnificent success was the brand’skeen interest on local flavors (Knorr, 2015). Knorr’s products arepurely based on the foods that people in a certain region are fondof. The flavor of the noodles found in one continent is quitedifferent from those of the other continents.

Knorr specializes in a wide array of productsrelated to flavors and food. They include soups, spices, easy to cookfoods such as noodles, sauces, recipe mixes, gravies, Bouillon andLatin flavors. The main colors in the packages of Knorr products aregreen, red and yellow. The products come in attractive packagesbearing a clearly visible ‘Knorr’ logo on the top left corner. Aphoto of a delicious- looking meal features in almost all the productpackages.

The company’s main promotional tools are themedia, internet, direct marketing and free samples. Knorr TV is alsoa favorite among cooking lovers. The price of Knorr products variesaccording to the product and the country of purchase (Knorr, 2015).However, the company positions itself so that its goods areaffordable to many people in both developed and developing countries.

According to Landov (2008), Unilever’s shareprice slumped in 2004 after and it announced a likely loss at the endof the financial year. The company was depending on Knorr and otherbrands to revive its dwindling fortunes. Afterwards, the managementfound out that the problem did not lay in its brands since most ofthem had strong roots in the African continent where the sales weredoing just fine. The directors realized the problem was as a resultof the recession that hit the world, especially America and Europe.

The company did a shakeup of its staff andintensified the marketing campaign in America and Europe. Recentresearch shows that the world is growing weary of processed foods andspices such as those produced by Knorr Brand. A research on Knorrnoodles found out that the food had high sodium and fat content andsignificantly low levels of fiber (Babbel, 2012). These researchfindings contradict the claims that Knorr products are healthy. Thereare also concerns regarding the safety of spices produced by Knorrbrand. There is speculation that they could be carcinogenic.

The sales of Knorr products are high in itshome country- Germany. However, in other parts of the world, thebrand faces stiff competition. Competition varies from one country toanother. Competition is also dependent on the type of product. Forinstance, In India, Knorr soup faces strong competition from MaggiSoup. In other countries like Kenya, Knorr spices face competitionfrom a local company called Bidco that produces a spice known asRoyco. In general, Knorr is better positioned against its competitorsbecause it produces a wide range of products to compensate foreffects of competition and poor sales in some of its products.

References

Babbel,. G. (2012). Highin sodium and low on fibre, Instant noodles aren`t as healthy as theads tell you. Daily Mail, Retrievedfrom,&lthttp://www.dailymail.co.uk/indiahome/indianews/article-2223259/High-sodium-low-fibre-Instant-noodles-arent-healthy-ads-tell-you.html&gt15 November, 2015

Knorr.com (2015). Knorrproducts. Retrieved from&lthttp://www.knorr.com/product&gt 15 November, 2015

Landov,. P. (2008). Unileverand emerging markets. The Economist,Retrieved from, &lthttp://www.economist.com/node/10601552&gt 15November, 2015