Knorr – A helping hand (2017G11)

Knorr® believes that good food matters – it adds untold pleasure to our lives and everyday meals can be just as magical as special occasions. This conviction lies at the heart of Knorr®’s success.
A passion for good food goes back to Knorr®’s earliest days. The business was formed in 1838, when founder Carl Heinrich Knorr pioneered experiments in drying seasonings and vegetables to preserve their flavor and nutritional value. Since then, Knorr® has become an international brand offering a wide range of bouillons, soups, seasonings, sauces, soupy snacks, dressings and frozen and ready-made meals. Knorr® products owe their tastes and flavors to the culinary skills of its chefs . Knorr® embodies a truly global cuisine, which began when the globe-trotting sons of its founder began importing new ideas from overseas. The tradition stands today and Knorr®’s drive for innovation still centers around its original factory in Heilbronn, where international teams of chefs contribute to product innovation. In order to reach the young Nordic market, team from those countries are working at concepts that make the Knorr products more attractive for the younger people. The last 2 weeks we also get the chance to work with their project and we came with a proposal for a new food product for them.

Definition of the target group

In order to get a good overall understanding of the project, the work started with brainstorming of what do we understand of target group and who are our subjects for this analyse:

•Lives in Nordic countries (Denmark, Sweden, Norway)

•Responsible for buying their own food (doesn’t live at home)

•Aged between 20-30 (Based on when people move out, and when they have children)

•Prefers a product that is environmentally friendly and has no conversatives. (Based on EY Nordic Food survey)

•It is important for the user that the product is available nearby (Based on EY Nordic Food survey)(Based on EY Nordic Food survey)

•The product will be more appealing, if it uses fresh/raw ingredients (Based on EY Nordic Food survey)

•Approximately spend 58 DKK on lunch. (Based on User Interviews)

•80% thinks it is important or very important that you get full from the lunch meal (Based on User Interviews)

•100% of the subjects find the amount of nutrients in the food important or very important. (Based on User Interviews)

•Doesn’t care for Carbon footprint (Based on User Interviews)

•Cares about the looks of the packaging(Based on User Interviews)

•Cares about the materials of the packaging (Based on User Interviews)

Field work

The best way to see what are the products in the market, and what are the competitors offers in the meter of good and healthy lunches, is buy taking a walk to the shops and try to buy one. Once we saw what are possibilities, we also interviewed people that open for us another perspective on the subject and we realized that we need to get very deep in analyzing the needs of the young danish people.Next day we have made another survey buy phone contacting the youngsters from our Facebook and the people that we know. By looking in the Danish Statistics we got information regarding the age when most of the danish young people are living home so obvious they need to prepare their own food, they being our targeting group.

Research results

After one weak of research we came with the following results that will help us to come with a product that is missing in the Danish market.

As you can see in the results for the majority of the subjects the most important thing is the nutritional value of the products and this it will be our aim to come with super product that has a high nutritional value but also its wordy for an Instagram post.

After the research it had been concluded, it was obvious that our targeting group needs a innovative product that serves the need of the people, a product that is fresh and healthy. We came with 3 concept from which we will choose the one that is the most attractive and profitable for Knorr.

Concept 1: Showrooming / Food Truck

•The stand with the hot wok / hot pot / pancake / wrap
•Either integrated store in an institution or an physical store nearby an institution
•Menu: Easy to prepare
•Knorr: delivers seasoning to the meat and veggies, dressing to salad
•Staff is required
•You get a visual experience → gives value to the customer
•You see the food process → you get what you see
•A possibility for ‘showrooming’ seasoning mixes and dressings. (Jensen’s reference)
•Possibility for a buying a lunch/dinner kit
•Price: approx. from 50-70 kr.

Concept 2: Frozen box / Mass production

•Product: soup (asian inspired with lot of nutritions)
•Available at the supermarket
•Frozen veggies / meal you need to heat by adding hot water
•Something that has been precooked
•Only have to have access to hot water
•You have a main box made from sustainable material or a plastic foam to keep the meal warm
•The box is sealed with plastic (vacuum) or another sustainable material
•In the outer box you have the seasoning, where you only have to add water
•In the inner box you have a divided compartment where there is meat in one and veggies in the other one Knorr could either all by themselves or supply the main box to a partner
•The customer uses the box by peeling the plastic off, pour some hot water in the main box, and add the ingredients from the inner box into the hot water
•Price: approx. 30-50 kr.

Concept 3: Delivery service

•The home delivery / delivery at institution
•Requires a ‘middleman’ that cooks and prepares the lunch boxes.
•Goes from the farm to either supermarket or your place
•The box concept is the same as number 2
•The ingredients are fresh and raw
•Knorr seasoning / sauce
•The veggies and meat has to be “precooked”
•Bread should be delivered with the meal.

Concept 4: Self service station

•Store integrated into the institution
•Possibility to choose portion size
•You can choose between different ingredients
•Knorr delivers sauces, soups and seasoning
•Knorr delivers the machine / shop (Franchise)
•Institution delivers fresh meat and greens

The final product it will be a mixture of the all 4 concepts and it will come in the market as a innovative healthy product.

Final Concept:

Further more it is described what are the gaining for all the parts implicated in order to be advantages and profitable for all:

Knorr

•Knorr produce: Box, soup, sauce, seasoning etc.
•Knorr also has the agreement with the suppliers
•Knorr has a dealership with different cantinas in etc. universities
•Knorr arranges a deal with the local farmers to deliver fresh meat, ingredients etc. and Knorr will thereby deliver the rest themselves (see above)
•Knorr get a % from the sales, and they also get a % from the deal between the supplier and canteen
•Knorr buys the groceries
•The canteen has a heated “pick-up point”, where you can pick up the lunch you ordered with your app.
•The canteen prepares the food
•Knorr sustainability partnership → Knorr will etc. give 10% of the selling price to charity. (Look at Innocent Juices and their sustainability values)

Partners

•Knorr would buy in bulk, securing the partners a fixed income on a large amount of their production.
•This could introduce the ecological products to the standardized market

Customers

•The customer order the lunch online via an app, where they choose the size of the portion
•The customer can pick up their lunch at the heated ‘pick-up point’ in the canteen, using the app to pick up the meal they ordered.

The packaging

•Super sustainable
•Looks good
•If there is some waste, Knorr will give it away to charity

Before we went to Rema1000 and Føtex, we didn’t have time to make a definition of our target group. On the basis of that, we thought it was very hard to make questions for the interview and thereby also a bit challenging to interview people, because we didn’t had a concrete “goal” with the interview. We also went to Rema1000 in Hasseris at noon, where there were no young people at that time, which was also challenging.

In our group we thought that there was a lack of information regarding U-Crac. We thought that is was confusing that only some students got some of the information, while others didn’t. We didn’t knew that we were to create an account on the website. Some of the information were on a power point, while other information's were on the website and the Facebook page, which was a bit confusing.

The video was very fun to make, and we have learned much about video sketches. However, we were very focused on making one good video instead of making 3-5 rough sketches. At the lecture about “Adobe Premiere” it was very hard to keep up with the lecturer. It was hard to read all the things at the projector, and it went by super fast - very challenging for students who had never worked with the program before.

The two weeks has overall been very educational. We have had a good teamwork, and we thought it was very interesting to work in a cross-functional team. On the basis of that it is very educational to see which skills other students have and combine them to make a great teamwork with different kinds of input. It has been very educational to work in the “field” and to work with a case partner from a company. Thereby we have learned much about the business industry and how it is to work with a company.

Core Design Framework:

•Primary quality criteria: Healthy / Nutritious
•Secondary quality criteria: Availability / Distance
•Tertiary quality criteria: Feeling full
•Quandary quality criteria: Sustainability

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