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MARKETING RESEARCH

KNORR READY-TO-EAT SOUP

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OBJECTIVES ..................................................................................................................................................3

GENERAL PRESENTATION OF THE COMPANY AND ITS PRODUCTS ...............................................................4

RESEARCH METHOD .....................................................................................................................................5

ANALYSIS OF QUESTIONNAIRE’S RESULTS ...................................................................................................6

BUYING SEGMENT ........................................................................................................................................7

NON BUYING SEGMENT .............................................................................................................................11

BRAND AWARENESS ..................................................................................................................................15

BUYING MOTIVATIONS ..............................................................................................................................19

CUSTOMER SATISFACTION .........................................................................................................................20

CONCLUSION ..............................................................................................................................................21
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OBJECTIVES
This marketing research has the goal of analysing the market of Knorr’s ready-to-eat
soups.

The ready-to-eat soups market has shown in the last few years a substantial growth,
mainly due to a decrease in the amount of time available to cook. Ready soups could
be considered as a valid alternative to frozen soups, but also to homemade soups
prepared with fresh vegetables. Thanks to the ease of usage and the speed of
preparation, this particular product has achieved an increase in sales of 28% just in
Italy. The Italian market for ready soups emerges with respect to the other
European markets for its leading position in the field of frozen soups, which
represents more than 15% of total sales. The so called “ambient” category of this
product, like the one we are analysing, is still placed in a secondary position
compared to dried soups. In fact, the growth rate of the “ambient” grouping stays
low, however, the general tendency to consume ready soups remains a determinant
variable of this class of products. Even if the consumption of these products is still
marginal as compared with the whole market, some development opportunities
exist, since the major players in the sector are relatively few.

In this scenario, our aim is to observe and study the consumption of Knorr’s ready-
to-eat soup, whose brand represents one of the leaders in this range of products.
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GENERAL PRESENTATION OF THE COMPANY

AND ITS PRODUCTS

Knorr was founded in 1838 by Carl Heinrich Theodor Knorr. He began experimenting
with drying vegetables and seasoning to preserve nutrition and flavour, which led to
Knorr’s first launch of dried soups across Continental Europe in 1873. It has been
owned by the British-Dutch company Unilever since 2000 and now, with annual
sales of €3 billion, Knorr is Unilever’s biggest selling brand. Knorr is available around
the world and in 2000 its products were sold in nearly ninety countries around the
globe.
Knorr offers a large variety of products, such as dehydrated soups, meal mixes,
bouillons and bouillon cubes, condiments, flavor enhancers and ready meals (for
instance, the Italian “risotto” and other main courses).
The kind of soups we are analysing are contained in a plastic package and in a liquid
state, due to UHT (Ultra High Temperature) sterilization heat treatment. This
particular method ensures a high level of durability, limiting the product’s
nutritional modifications. The shelf life of these soups is 6 months.
Knorr provides a wide range of ready-to-eat soups, among which we can find: the
traditional recipe, mix of vegetables, beans, chickpeas and cream soup.
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RESEARCH METHOD
In order to have a clear view of the entire Italian market, we selected a quantitative
approach, by using a survey. The sampling method that we used is the simple
random sampling, where the sample is drawn at random and each individual has a
known and equal chance of being selected. Our sample involves 130 people, ranging
from 30 to 70 years old, both males and females. The chosen survey method is a
face-to-face interview in a supermarket setting, where people belonging to this
range of age were asked to answer a structured questionnaire of 10 questions. The
first question was thought to split the sample in two parts: “buying” and “non
buying” customers. Concerning the “buying” section, there were questions about
the frequency of the purchase, the type of soup bought and the relative satisfaction.
With regard to the “non buying” part, it was asked about whether they prefer
competitors’ brands and what they would change in the product. The common
topics between the two questionnaires were designed to better understand the
level of brand awareness, brand positioning and the buying motivation that
influenced the choice of customers. In order to assess the relative brand awareness
of each buyer, they were asked whether they already knew the brand Knorr or other
products of the brand not including ready-to-eat soups. Another question focused
on the way they discovered this brand and in particular the product under
discussion. It was also important to better comprehend the brand positioning in
relation to competing brands and whether customers prefer rivals’ offerings. The
last point of the survey was, instead, aimed at recognizing buying and non buying
motivations and possible improvements of the good.
With the aim of gaining a deeper customer insight, the demographics of
respondents has been addressed, by focusing on their gender, range of age, family
status, type of employement and whether or not they have children.
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ANALYSIS OF QUESTIONNAIRE’S RESULTS

The first question is intended to distinguish those who buy the product with a
certain frequency and those who do not.
Among 130 respondents, 78.5% affirms not to regulary buy Knorr’s ready-to-eat
soup, whereas only 21.5% results to be an habitual buyer of the product.
In order to better understand the habits and motivations of their consumption
behavior, the outcomes of each segment are going to be analysed in the next
section.

Acquista regolarmente il prodotto zuppa Knorr?

22%
Si
No
78%

BUYING SEGMENT

The first question of the buying segment regards the frequency of the purchase.
The final results show that the majority of consumers (39.3%) buys the product
when they need it. Among the remaining part, 35.7% states to buy it on a monthly
basis and 25% on a weekly basis.

Con quale frequenza acquista questo prodotto?

Settimanalmente
25%
39%
Mensilmente
Ogni 6 mesi
36%
All’occorrenza
0%
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The next question concerns the type of soup bought within the vast variety of
options offered by Knorr. The outcomes indicate that the most preferred kind of
ready-to-eat soup is the zucchini or pumpkin cream soup (39.3%), followed by the
traditional recipe (21.4%) and the vegetable mix (17.9%). The least aquired ones are
recipes with beans, chickpeas and barley.

Quale tipologia di zuppa Knorr acquista?

3% Zuppa da riscaldare tradizionale

Ortolana
21%
Fagioli
39%
18% Amabile con spinacino, orzo e fagioli
verdi
8% 11% Vellutata(di zucchine, zucca...)

The third question is about the main reason that pushes consumers to buy the
Knorr’s ready-to-eat soup. The survey reveals that saving time is the principal
motivation that encourages people to purchase the product (71.4%). Another
reason that influences the choice is the taste of the soup (14.3%) and limited
cooking skills.

Quale è il motivo principale per cui compra la zuppa Knorr?

4%

15% Risparmiare tempo

Limitate capacita culinarie
10%
Gusto
71%
Altro
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The fourth question is shaped to assess the positioning of the brand in consumers’
mind, showing that buyers decide to purchase this product rather than competitors’
ones mainly for the taste (53.6%), healthy ingredients (21.4%), the variety of options
(14.3%) and the price (10.7%).

Perché sceglie la zuppa Knorr rispetto ad altre marche presenti nel

mercato?
14% 11%
Prezzo
Gusto
21%
54% Ingredienti salutari
Varietà delle opzioni

The next question focuses on the way in which consumers became aware of Knorr’s
soup and, as a consequence, the efficiency of advertising. The majority of
respondents declares that they have been familiar with this product since ever
(57.1%), while the remainings are divided into those that came to know the product
thanks to word-of-mouth (21.4%) and advertising campaigns (21.4%). Nobody
discovered the brand through Internet advertising.

Com’è venuto a conoscenza della zuppa Knorr?

0%
Ne sono a conoscenza da sempre
21%
Passaparola

22% 57% Campagna pubblicitaria

Internet

An interesting result is that 96,4% of interviewed affirms to know other products of

the brand Knorr, whereas just 3.6% is not aware of the brand.
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Conosce altri prodotti della marca Knorr?

4%

Si
96% No

The following question shows that the other most acquired products of the brand
are bouillons, bouillon cubes, condiments and flavor enhancers (70,4%), followed by
ready meals, ready main courses, soups and mashed potatoes.

Se la conosce, quale prodotto acquista della marca Knorr?

11%
Brodi e insaporitori(cuore di brodo,
8% brodo granulare)

10% Primi piatti(pronti da cuocere)

71%
Zuppe

When asked how much satisfied they are on a scale from 1 to 5, 42.9% says to be
nearly completely satisfied with the purchased product.
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The last question is about possibile suggested improvements of the product by

costumers. The majority would prefer to enhance the quality of ingredients, making
them more healthy and/or organic (37%), 29.6% would instead develop a larger
variety of products and 22.2% would change the price. Just a little percentage would
ameliorate the taste of the soup, which seems to be appreciated by consumers.

Cosa migliorebbe del prodotto?

Prezzo
30% 22%
Gusto
11% Qualità
37%
Porzioni

As regards the demographic aspects of the buying segment, the plurality of

respondents are married women, between 40-49 years old, with children and
employed.

Quale categoria rappresenta meglio la sua eta?

0%
30-39
25% 32% 40-49
50-59
43%
60-69

NON BUYING SEGMENT

The first question of the non buying segment is intended to assess if interviewed
have ever bought the product, with a result showing that 76.5% has never
purchased a Knorr’s ready-to-eat soup, whereas 23.5% has purchased it at least
once.
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Nonostante non acquisti il prodotto regolarmente, l’ha mai

acquistato?
24%

Si
76%
No

The second question is about the main reason for which consumers refuse to buy
the product, suggesting that 70.6% prefers homemade soup or admits to never use
this product (15.7%). The residual part declares that ready-to-eat soup is not a food
of their liking or that they purchase the same type of product but from different
brands.

Per quale motivo sceglie di non acquistare il prodotto?

6%
8%
Preferisco la zuppa fatta in casa
Non ne faccio mai uso
16%
70% Non è un alimento di mio gradimento
Acquisto il prodotto di altre marche

The third question is shaped to understand which are the major competitors of the
brand Knorr relative to this specific product. The percentages suggest that few
people buy the same type of product from different brands (15.5%) and among the
most popular choices, in order, there are: first of all Conad, then Dimmidisì and
finally other minor supermarkets’ brands.

Se acquista il prodotto di altre marche, quale sceglie?

3% 4%
8%
Nessuno
Conad
Dimmidisì
85%
Altri
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The following question is focused on the strenghts of competing products that

encourage buyers to purchase other brands. Even though a small percentage of
consumers admits buying different brands, the majority of them makes this decision
because of, in order: perceived better quality ingredients, preferred taste and
habitual choice. Results show that the difference in price is not particularly relevant.

Per quale motivo preferisce quest'altra marca?

9% 30-39
23%
40-49
40% 50-59
28%
60-69

Since a great amount of individuals stated that they prefer homemade soup, the
main motivations of this personal selection were further analysed. 49% of
respondents considers it a more healthy option, 29% is inclined towards “done at
the moment” meals, and the rest is divided between tradition based decisions and
distrust with regards to industrial products.

Per quale ragione decide di preparare la zuppa in casa?

7%
Lo ritengo più salutare

15% Preferisco un prodotto fatto al momento

49%

29% Tradizione

Diffidenza verso un prodotto industriale

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Despite the fact that there are just few people acquiring the product in question, the
great majority of them (94.1%) affirms to know Knorr’s brand, demonstrating a high
level of brand awareness.

Conosce la marca Knorr?

6%

Si
94% No

In particular, the most popular products of this brand are bouillons, bouillon cubes,
condiments and flavor enhancers (54.5%), followed by a small percentage of
consumers that purchases mashed potatoes and ready meals. Moreover, 38.4%
does not buy any other products.

Se lo conosce, quale prodotto acquista della marca Knorr?

4% 3%
Brodi e insaporitori
Nessuno
38% 55% Pure
Apri e gusta

The two following questions, are closely related because they are meant to analyse
advertising campaigns of Knorr. 90.2% has seen at least once an ad,

Ha mai visto campagne pubblicitarie della marca Knorr?

9%

Si
No
91%
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and among these customers, 87.4% affirms to have noticed it on tv, and the
remainings on supermarket flyers. Just a little part of them recognized Knorr’s ad on
the Internet.

Se si, dove le ha viste?

11% 2%
Televisione
Volantini pubblicitari
87%
Internet

The last question is about possible improvements of the product that would
convince purchasers to buy Knorr’s ready-to-eat soup. The vast majority of
interviewed pays particular attention to the quality and healthy factors of
ingredients (69.4%), then a smaller slice values price as a key aspect that could lead
to ameliorations of the product. Another portion would appreciate more a larger
variety of options or the taste of the product.

Quale miglioramento del prodotto zuppa Knorr la convincerebbe

ad acquistarlo?
7% 4%
Qualità/ingredienti più salutari/biologici
20% Prezzo
69% Porzioni
Gusto

With regard to the demographic aspects of the non buying segment, the plurality of
respondents are married women, between 50-59 years old, with children and a
stable job.

Quale categoria rappresenta meglio la sua età?

9% 30-39
23%
40-49
40% 50-59
28%
60-69
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BRAND AWARENESS

Brand awareness is the level of consumer consciousness of a company and it

measures a potential customer’s ability to recognize a brand image. An important
aspect is also associating the brand with a certain product or service and
distinguishing it from those of competitors. Creating brand awareness is a key step
in promoting a new product or reviving an older brand to retain customers and/or
acquire new ones.
Since buyers are often obliged to make a decision in few seconds and among
different possibilities while grocery shopping, they are more likely to purchase a
known brand product rather than an unfamiliar one. For this reason, products and
services that maintain a high level of brand awareness will probably generate more
sales. This higher rate of brand awareness for leading brands in a product category
can serve as an economic advantage that prevents competitors from gaining
additional market share.
The concept of brand awareness regarding Knorr has been analysed by paying
attention to the difference between those who regularly buy the product and those
who don’t, so the distinction between buying and non buying sectors.
When referring to the former group, it is important to realise that Knorr’s brand has
been in the Italian market for a long time; becoming part of families’ traditions
either because they have always been used to consume its products or because they
have always seen its offerings in supermarkets’ shelves. For this reason, it’s not
surprising the fact that the majority of respondents (57.1%) declares that they have
been familiar with this product since ever. The historical notority of the brand
justifies 21.4% of interviewed who stated to have become aware of Knorr’s products
through word-of-mouth. The remaining part shows that the brand is also deeply
rooted in italian television, since 21.4% reported to have noticed its offerings thanks
to advertising campaigns. Always referring to the buying segment, the vast majority
(96.4%) of habitual customers doesn’t know the brand just through the ready to eat
soups but also due to several different Knorr’s products. From the results, it’s clear
that some of the most known and purchased products are bouillons, bouillon cubes,
condiments and flavor enhancers (70,4%), followed by ready meals, ready main
courses, soups and mashed potatoes.
Concering the latter group, that of the non buying segment, it’s interesting to notice
that even the majority of individuals (94.1%) who does not purchase the ready-to-
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eat soups, knows the Knorr’s brand, demonstrating a good level of brand awareness.
One common element that links the two segments is the fact that the most popular
and acquired Knorr’s product is the bouillon (54.5%), making it one of the clearest
association with the brand Knorr in consumers’ mind. The analysis of the non buying
segment has remarked the effectiveness of Knorr’s advertising showing that even
the majority of non purchasing part of the market (90.2%) has seen at least once an
advertisement of this brand. In particular, by going in depth in this topic, it has
emerged that television remains the most important communication channel for
Knorr (87.4%), followed by supermarkets’ flyers, online ads and other irrelevant
alternatives.
An important aspect that is related to brand awareness is advertising. As shown by
the results, Knorr’s brand is already well known both by buying and non buying
individuals. In order to increment the sales of the ready-to-eat soup, that currently
is not one of the leading products of Knorr, it would be important to focus on a
more effective promotion strategy, for instance by developing alternative
communication tools. Considering the growing diffusion of digital platforms, one
possible improvement could be placing a greater amount of online advertisement or
using different forms of direct marketing such as direct mails and online catalogs.
By using these suggestions, the company could try to enhance the level of
awareness of ready-to-eat soups, since the brand Knorr is already popular among all
consumers.

BRAND POSITIONING

Brand positioning can be defined as the space a company occupies in the mind of a
customer and how it differentiates itself from competitors. Moreover it helps
customers instantly recognize and connect with a company. The objective of
positioning is to link the product to the benefits that customers seek and ensuring
that, when they think about the satisfaction of these needs, the brand is one of the
quickest associations in one’s mind. One of the most important factors of success is
how well and how many people know your brand. In fact, no company is able to
truly thrive in the markeplace without an established brand position.
Even in the concept of brand positioning, the differences between buying and non
buying segment are important to analyse their influences on this topic.
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When referring to the habitual consumers, it has been analysed the features of the
product that lead customers to choose Knorr’s ready-to-eat soups instead of those
of competitors. The strenghts that assure Knorr a top position in consumers’ mind as
regarding the product that has been studied are: the taste, that characterises the
preference of 53.6% of interviewed, followed by the perception of ingredients to be
healthy (21.4%) and in an equal proportion the variety of options and the price. So,
as the survey has shown, taste is the feature that provides a positioning advantage
in a competitive perspective.
As regards the non buying segment, it is clear that few individuals purchase the
ready-to-eat soup from other brands because the majority doesn’t consume this
product at all. However, this limited fraction of the whole market prefers other
competitors’ soups due to perceived higher quality ingredients, a choice of routine
or the taste. The major competitors for Knorr’s ready-to-eat soup, which occupy in
this case the non buyers’ top place in their minds are: first of all Conad, then
Dimmidisì and finally other minor supermarkets’ brands.
To sum up, Knorr’s brand appears to have a good level of positioning, whereas the
specific product that has been analysed is not as well positioned as its brand. In
order to improve this product’s position in consumers’ mind the company could take
some actions to reinforce the soup’s differentiating qualities and make sure the
prospects understand what makes it unique throughout the sales process. For
instance, since respondents seem to prefer competitors’ product for the quality of
ingredients, the brand should try to focus on this feature in order to improve the
image that people have about ready-to-eat soup.
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BUYING MOTIVATIONS

Buying motives are those influences or considerations which provide the impulse to
buy, induce action or determine choice in the purchase of goods and services.
Understanding the buying motivation of consumers is essential for a company to
target the customer better. A key issue related to the proper recognition of those
motives that cause consumers to select one particular product is related to the
distinction between needs and wants. Marketers should satisfy both buyers’ needs
and wants, which are relevant because they push customers to acquire a particular
product in order to respond to those needs. Buying reasons that guide the purchase
of a particular item can be classified by one of the best-known theories of
motivation, called Maslow’s Hierarchy Of Needs.
As done in the previous sections, there is a distiction between those motivations
that induce individuals to purchase Knorr’s ready-to-eat soups or avoid the
purchase. As regards the product’s loyal customers, they were asked which was the
main driving force that led them to buy the good. As shown by the questionnaire’s
results, 71.4% of respondents seems to be influenced by a mere practical reason,
which is that of saving time. The remaining part is divided between those who value
taste and those who have limited cooking abilities. Considering the sum of all
evidences, it is clear that the core motives related to the purchase of ready to-eat-
soups are tied to functional needs, as, for instance, preparing dinner in a rush after a
working day. On the other hand, taste acquires a secondary position as compared to
the reasons described above.
As there are important factors that influence the purchase decision for the buying
segment, it is also fundamental to analyze the inhibitors that prevent individuals
from selecting the product. Talking about the non buying segment, the results seem
to indicate that interviewed prefer home-made soups instead of ready-to-eat soups
(70.6%), followed by the ones that don’t use it at all in their everyday diet or simply
do not appreciate this type of meal.
Since effective marketing can shape a person’s wants and influence what he or she
buys, it would be important for the brand to try to reduce buying inhibitors, by
focusing their advertising campaigns on delivering an improved image of the
product as it was an home-made type of soup.
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CUSTOMER SATISFACTION

Customer satisfaction is defined as a measurement that determines how happy

customers are with a company’s products, services, and capabilities. Organizations
shouldn’t take for granted knowing what the customer wants. Instead, it is
important to understand what he or she particularly values about the product, using
tools such as customer surveys, focus groups, or marketing research to gain detailed
insights of customers wants and better tailor their services or products to meet or
exceed customer expectations.
The relative satisfaction measured among habitual users shows that the majority of
them is almost fully satisfied with Knorr’s ready-to-eat soups; in fact, in a 1 to 5
scale, the greatest amount of respondents placed their preference between 3 and 5.
Even though customers seem to be sufficiently happy with the product, it has been
analysed what could be the possible improvements that could attract new
customers or encourage usual customers to buy more. By looking at the results, it is
clear that there is an increasing interest from customers as regards health concerns,
in fact 71% of respondents ask for more organic and natural ingredients. On the
contrary, price, portions and taste seem to convince customers and have a less
relevant role in the improvement of the product.
Although the plurality of interviewed does not purchase ready-to-eat soups, it is
essential to understand what possible improvements of the product could persuade
them to acquire it in the future. The results have proved to be similar to those found
among the buying segment, giving particular importance to the quality of
ingredients and health perceptions (37%), followed by the perceived necessity of a
greater variety of options (30%). Like in the previous case, price and taste are less
valued by individuals as incentives to become habitual purchasers of the product.
In conclusion, in order to appeal to a greater segment of the market for ready-to-eat
soups, Knorr’s brand should try to reinforce the healthy perception of its product,
for instance by developing advertising campaigns focused on this topic.
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CONCLUSION

The aim of this market research was to analyse the market and the consumption of
Knorr’s ready-to-eat soups, in view of the increasing diffusion of ready meals that is
affecting consumers’ behavior. In order to study more in depth this trend, the issues
of brand awareness, brand positioning, buying motivations and customer’s
satisfaction have been furtherly examined.
Nowadays, ready-to-eat soups have to compete with the mentality that is still
strictly tied to the italian tradition of preparing homemade soups and with the fierce
competition given by frozen soups.
Even though the size of the sample (130 individuals) is not sufficiently large to
achieve a valid and relevant representation of the market, by investigating an
heterogeneous sample of people within a range of 30-70 years old, the results have
shown that the italian consumer is still displaying a certain level of distrust towards
this type of products. The most receptive target that actually purchases the good is
represented mostly by a category of middle-aged married women, in particular
between 40-49 years old, the majority of them with a family and children and a
stable employement. These informations have highlighted the fact that the buying
segment is primarily composed by relatively young individuals (the second major
proportion of buyers belongs to the 30-39 age range) who, due to their busy work
shedule, are in a rush and have limited time to properly prepare meals for their
families/children and themselves. As a consequence, this category of people prefers
to buy and consume ready-to-eat soups. On the contrary, concerning the non buying
segment towards which the company should try to address its marketing efforts, it
has been noticed that the majority of them are among those aged between 50-59,
and in minor percentage 60-69. One possible explanation to this situation could be
the fact that these individuals are still strongly tied to homemade cooking traditions,
which makes them more reluctant towards industrial ready-to-eat meals.
The reasons that push the buying segment to purchase this kind of product could be
particularly related to the limited amount of time available to modern households,
rapidity of usage, ease of conservation and availability. In fact, consumers nowadays
are increasingly influenced by two raising trends: the need to prepare meals in the
least possible time and the inclination towards healthier and sutainable ingredients.
Precisely because consumers are even more committed to healthy products, as
demonstrated by the survey’s results, 78% of respondent is distrustful regarding
ready-to-eat soups and decides to avoid the purchase. As a matter of fact, in these
days consumers are more discerning and no longer willing to accept trade-offs: the
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right price for the right quality. The market for ready-to-eat soups is still of minor
relevance compared to substitutes such as frozen soups, since the latter type is
often perceived as a more healthy option, which mantains nutritional properties
thanks to the deep-freezing of ingredients.
Some possible suggestions to make ready-to-eat soups more appealing to new
clients could be developing advertising campaigns focused on the improvement of
healthy perceptions. The objective of the effective communication must be that of
explaining to the customer that ready-to-eat soups can guarantee all the nutritional
values of the product, the safety of its ingredients and production process.
In conclusion, ready-to-eat soups satisfy the need of customers of saving time while
cooking, an aspect that could lead to an increasing growth rate within this product
class. However, since this particular type of product seems not to convince
completely the target market, it would be important for Knorr to improve the image
of the product by making its perception more similar to those of homemade soups,
in order to appeal to a greater number of prospective buyers.

Made by: Denise Bertollo (873060), Eridon Celami (873548), Valentina Menga
(873513), Anna Nichele (873147).