Comsats University Islamabad, Lahore Campus

Assignment #______

Course: ______________________________
Submitted to: _________________________
Submitted by: _________________________
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 Marketing Mix (4p) of Knorr
 Product
 Price
 Place
 Promotion

Introduction to the Company Knorr

A German food and beverage brand Knorr, was established in 1838 by Carl Heinrich Theodore Knorr. The
founder was an expert in food drying techniques and used them to make ready to eat soups, vegetables.
Knorr was acquired in 2000 by the FMCG giant Unilever, and has been operating as a subsidiary brand
under Unilever umbrella since then internationally, except Japan. In Japan it has a licensing agreement
with Ajinomoto, a food and chemical corporation. Today Knorr is one of the world’s largest food brands
and is still keeping alive its founder’s passion for good food and different tastes from all around the
world. They are known to source 100% of their raw materials sustainably. Knorr also aim to teach
cooking nutritiously to more than 1 billion by 2020 to improve their health and well-being

Product:
Knorr is a leading packaged food & beverage brand based out of Germany. Knorr offers a huge variety of
products in its marketing mix in the ready to cook and frozen food segment, the major categories being-
soups, noodles and other ready-to-cook frozen products like rolls fillings, broth cubes etc. Knorr soups
are made of 100% natural vegetables with no added preservatives and available in 18 different flavours
which are further divided into 2 categories- classic flavours and international flavours. Classic flavours
include Thick Tomato, Hot & Sour Vegetable, Sweet Corn Vegetable, Mixed Vegetable, Sweet Corn
Chicken and Chicken Delite, while international flavours consist of Thai Vegetable, Italian Mushroom,
Shanghai Hot & Sour Chicken, Hong Kong Manchow Noodle and Mexican Tomato Corn. All these soups
are also available in cup-a-soup packaging. In noodles category, the varieties offered by Knorr include
Schezwan noodles, Hot and Spicy noodles and Soupy noodles which is a mix of soup and noodles. Apart
from this, Knorr also tries to come up with localised taste as a part of its product strategy. For example,
it has ventured into spices segment with its Knorr Masala offerings. Knorr has also launched ready-to-
cook local cuisines like Dal Makhni, Punjabi Chicken Curry etc.

Price:
Knorr’s products are priced a little bit lower than the competitors as it follows a penetration pricing
strategy. The company has huge competition with existing food brands such as the Nestle owned Maggi
especially in Asian markets like India, Pakistan, Malaysia and Indonesia where it holds more than 50% of
market share. Many local players such as Maggi, Patanjali, Yippie etc also undercut Knorr’s already
secondary market share in these countries. These considerations keep Knorr to keep its price lower and
provide a differentiating factor to the customers by providing value for money products. The Knorr
instant noodles come in 66-70 gm packs of Rs.22-26 in Pakistan. Soups in 43-50 gm of Rs.85. Knorr cubes
for Rs.25 each pack. As compared to the competitors in the country, Knorr’s prices are comparable and
even lesser in some categories.

Place:
Knorr is sold in over 78 countries around the world. It uses the existing channel of Unilever in each
country for distribution and delivery as it is a sub brand under the FMCG giant’s umbrella. Knorr
products are available in almost all retail stores- both organised and unorganised. Knorr’s strategy
involves being present at all possible sale points. It is present in almost all the urban outlets. It is also
present on the online grocery stores, like Gomart.pk and daraz.pk, which sells all the products
manufactured under the Knorr brand. Knorr as a brand is very active on social media as well with more
than 21 million likes on its Facebook page. It even has localised versions of the page for on the basis of
countries it is present in.

Promotion:
Knorr follows aggressive marketing and promotion strategy in its marketing mix for its products. Most of
its advertisements are still via the television commercial channel. Each new product launch is followed
by heavily promoted ad campaigns on TV and local newspapers. It also does celebrity endorsements for
its products, be it the famous Indian movie actress Kajol in India. Most of its advertisements are focused
on the bonds between a mother and her child. For promoting its Knorr Masala product line or other
ready to cook products, it uses famous chefs to endorse them and increase credibility factor. Knorr also
involves in point of sale promotions with attractive store layouts for its products and separate shelves in
super markets. The point of purchase promotions helps it to get involved directly with the buyers at
touch points and is a big motivator for sales. In recent years Knorr has also been very active on social
media with live pages, launching new products through Facebook and YouTube videos and creating a lot
of buzz via its #LoveAtFirstTaste campaign. Hence this completes the Knorr marketing mix.