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Maruchan Ramen Noodles Advertising Written Proposal Table of Contents

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Maruchan Ramen Noodles Advertising Written Proposal Table of Contents Maruchan Ramen Noodles Advertising Written Proposal Table of Contents 3 Executive Summary (Overview) 3-5 Situation Analysis Product Branding Marketing Mix Consumers Advertising Background Industry Overview External Variables 5-6 Competitive Overview 6 Target Market Profile 6-7 Advertising Objectives and Strategy 7-8 Media Plan Mediums to be used Media schedule 8 Creative Executions: Boarded 2 Executive Summary Maruchan is an international noodle corporation that is well known in the United States for its ramen noodle pouches. We wanted to strengthen our brand by playing to our strengths of being an affordable meal with great taste. Within our situational analysis, we discussed how Ramen noodles are a cheap, fast meal alternative that is sold in major supermarkets nationwide despite being in the decline stage of the product life cycle. Expectations for our brand aren’t high because of the price, but that actually works in our favor because consumers are surprised with a bang for their buck. Our main competitor is national instant noodle brand, Nissin. They started in the 1958 in Japan, but expanded globally to North America in 1972 with their main product, Top Ramen. We have maintained a stranglehold on the market share in America with 66.7 percent according to the Orange County Register, while the global market share of Nissin has dropped by 2 percent in the past five years. There has always been a stereotype since Maruchan Ramen noodles came to America that they are only for college students. In fact, we will not shy away from that stereotype. Instead we will embrace it by targeting men and women ages 18-24 with a household income lower than $20,000 with equal advertising nationwide. Our advertising campaign objective is to increase the desire and intent to buy by XX % and strengthen the brand image as “the right kind of broke” in men and women ages 18-24 with an income of less than $20,000 in the next six months. In addition, our creative strategy statement is this: To convince men and women between the ages of 18-24 with an income of less than $20,000 that Maruchan Ramen Noodles is the best way to save money while still having an enjoyable meal because it is convenient and has a great taste all while maintaining an extremely low price (20 cents cheaper than the competition). Since we are gearing our product towards a younger generation, we will use the Internet and television as media vehicles. Advertising on popular websites that the 18-24 age group visits like Hulu and MTV will allow our brand of instant noodles to be effective in reaching our target audience. Overall, we believe we can reach people ages 18-24 through smart flighting of television and Internet ads. While our competition falters globally, we will strive to keep ourselves at a consistent yet low decline. We will embrace our stereotype as a cheap, quick meal for young people with a low median household income. Situation Analysis Product Consumer Background 1. Product: Maruchan Ramen Noodles • Maruchan Ramen Noodles serve to feed hungry people for a cheap price with a great taste. • Maruchan Ramen Noodles come in a variety of flavors, such as chicken, beef, pork, shrimp, and many more. • This specific product comes in a plastic packaging with dried noodles in a block inside. • Maruchan Ramen Noodles cost around $0.13- $0.30 per package, around $2.13 for a pack of 6. • Brand extensions: Low sodium ramen, Instant lunch cups, Yakisoba, and Bowl. • Maruchan Ramen Noodles are currently distributed to a variety of grocery stores, such 3 as Wal-Mart, Hy-Vee, County Market, and so on. • Maruchan Ramen Noodles are at the decline stage of the product life cycle. 2. Branding • The current brand image is a color on the outside of the packaging with the logo and a photo of the noodles. • Maruchan Ramen Noodles are often seen as an easy snack or meal to make quickly. • The current positioning of Maruchan Ramen Noodles is almost nonexistent because they don’t have much advertising happening in the United States. • The functional consideration of this brand is that it is a quick and easy way to have a meal or a snack. • The psychological consideration is that it doesn’t take much work to make Maruchan Ramen Noodles and they’re super convenient, meaning that if someone doesn’t have much time, they can have a meal/snack with a great taste that is warm in just a couple of minutes. • There isn’t much of a clear differentiation because the brand appearances are the same and neither brand has done much to really show how it is different from the other brand. • There is awareness, but not necessarily loyalty because the brand images and packaging are so similar that people aren’t able to tell a clear difference between them. 3. Marketing Mix • Maruchan Ramen Noodles haven’t been promoted in recent years except on social media, posting during “national” days that have to do with convenience or related to Asian culture, such as “National Ninja Day” and “National Microwave Day.” • The only media choice currently being made by the company is using social media, specifically Facebook, although there is not a large following. • The advertising attempts in the past have not necessarily been successful because everything has been so similar to our competitor, therefore not separating us from them and creating the differentiation and relatability that our product needs. 4. Consumers • Our product is currently mostly bought by people between the ages of 35 and 44 (25% over the average) and by more women than men (6% over the average). • We would like to look to target more men and women in the 18 to 24 age range. • Our consumers actually aren’t very different, except we are more ahead in all age groups except for 55 to 64 and above 65. Our competitor Nissin also gets 1% more males than we do, however, we get 1% more women. • Consumers don’t do much research on the brand of ramen noodles before purchasing, because again, there is very little brand differentiation. • The product is used by anyone in a household (hitting all age groups and both genders). • Buying Maruchan Ramen can be an individual or a group decision. • There is not a big risk in negative purchase outcomes because the price is so low, therefore expectations are not high. • The time it takes to both make and consume Maruchan Ramen Noodles is minimal. • The brand’s target market is currently mostly disorganized and unclear, however, the social media advertisements suggest a younger market, namely children and young teens, which parents would buy for them. 4 5. Advertiser (Client) background • The current firm is not effective because their only attempt at marketing is on social media and it’s not very successful at all, especially at creating a differentiation between brands. • Maruchan is currently declining in profitability. At the end of FY 2015, the Toyo Suisan Group (which owns Maruchan Ramen Noodles) reported that net sales were up 2.4% and operating income was down 18%. The ordinary income was 17.4% down from the previous year and the net income was down 25.6% from the previous year. • The Maruchan Ramen Noodles in the United States were up 14.1% in segment sales but down 7.4% in segment profit. • If we work quickly, an effective advertising campaign could be affordable and help differentiate the brand from the others in the category in order to bring more profit back to the company. Industry Overview • The current size of the instant noodle industry is FIND THIS INFO. • In 2012, we sold 100 billion units, according to the Huffington Post. • Our current market share is 66%, according to the Orange County Register; however, it is going down. • The current trend in the market is creating healthier options. We also offer this option with our new reduced sodium instant noodles so they do not represent problems or opportunities to our firm. External Variables • The economy is an external variable that is very relevant to Maruchan Ramen Noodles. As VP of Marketing Rick Kester told Ad Age, as the economy goes down, instant noodle sales go up. Since the economy is not at its best, we expect this to work in our favor as people look to save money. Competitive Overview There are numerous alternative snack options to our Ramen noodle dish, and even other Ramen noodle options as well. Our top direct competitor is Nissin Foods, a Japanese company known for instant noodles. While more popular in Japan, they are still the original player in the instant noodle market. Our brand uses the same “de-fry-dating” method developed by Momofuku Ando of Nissin in 1958. Nissin is clearly our top competitor, but we are still the go-to option in the United States. In 1972, Nissin introduced Top Ramen in the Americas as their first test with markets overseas. Today, they sell a variety of options similar to ours, namely their Top Ramen and Cup Noodles. Their advertisements are hardly seen in the United States, but one of their commercials recently made headlines. This spot featured a Japanese schoolgirl going through obstacles to obtain their new Chicken Ramen. It was so unusual that is caught the eye of marketers across the globe. Nissin was even having publicity issues abroad recently. Our direct competitors were the center of a controversy last year due to lead levels in their Top Ramen noodles in India. According to the Hindu Business Line, Indo-Nissin Foods went to the newspapers for redemption and assured “Japanese quality” in all of their products moving forward.
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