Shan Shoop Noodles

Product: Shan Shoop Noodles

Course: Consumer Behavior

Instructor: Ms. Namrah Nadeem

Submission Date: 2nd November 2019

Group Members:

Shameel Irshad

Fatima Majid

Shaharyar Naeem

Nizam Shah

BSC 3rd Year (Accounting and Finance)

Section E

Acknowledgements

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 Shan Shoop Noodles

The authors are indebted to Ms. Numrah Nadeem for the support and guidance she provided

during the course of this research. Without her honest efforts and constructive feedback, it would

not have been possible to write this research paper. The authors also wish to acknowledge the

efforts of the Teaching Associate, Ms. Zarish Sarfaraz who made sure to keep all the researchers

updated with the necessary information.

Table of Contents

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 Shan Shoop Noodles

Acknowledgements 2

Executive Summary 4

Product Description and Background 4

Perceptual Map 7
After Repositioning 7

Repositioning Statement 8

Product Category Market Profile 8

Segments 8
Competition 9
Trends 11

Target Segment Consumer Behavior 13

Marketing Mix Recommendations 15

Product 15
Price 17
Placement 17
Promotion 18

Conclusion/Summary 18

References 26

Appendix 28

Executive Summary

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 Shan Shoop Noodles

This research paper entirely revolves around the re-launching of Shaan Shoop Noodles in the

instant noodles market. It eventually takes into consideration all the initial factors that

contributed to Shoop Noodles failure to stay in the market. It also proposes new variables like

new flavors, effective supply chain management etc which would further increase the probability

of Shaan Shoop Noodles being successful in the market. The paper also employed the use of

Primary research that involved distribution of the questionnaire in the target market to get their

overview regarding the initial knowledge of Shoop noodles they had alongiwth getting their

worthy feedback on the new commercial that has just been realeased into the market, “Hum

Andar sai Bachay haien”. We hope and expect that our hardwork would be worthy to

relaunching of Shaan Shoop Noodles in the market.

Product Description and Background

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 Shan Shoop Noodles

Sikander Sultan started the Shan spice business in 1991 in a single room. As of today over a 100

products are being exported to 65 countries with an annual turnover of 1.5 billion. Shoop noodles

itself were launched in 2012. Its main aim was to provide a new, unique and flavored variety of

instant noodles so the consumers could tantalize their taste buds and also satisfy their hunger and

cravings instantaneously. Furthermore, Shoop Noodles was made with 50% more wheat protein,

with the same packaging size of 60g as of its competitors. Initially it was launched with seven

exciting flavors which included Chicken, Masala, Spicy Lemon, BBQ, Ketchup, Thai Lemon

Chili and Bombay Biryani.

Shoop noodles symbolizes convenience, quality and health. It has positioned itself as cheap

instant noodle brand as compared to others in the market but at the same time also healthy one. It

is the only local brand which has significant involvement in the instant noodles market. Children

are the core target of the company but it’s not just mainly the children and teenagers but its target

is mainly people of all age groups. Furthermore, it has been positioned in such a way that it is not

anymore limited to being a home-snack but it also to be consumed at work places.

By repositioning this product, the team aims at the target market viewing the product in equal

terms with the leading names- Maggi(Nestle) and Knorr(Unilever)- in the market. Consumers

should be aware of health advantages that the product provides, but not only the health benefits

but also should be satisfied with the price.

There is work need to be done on the repositioning of the product. The product is less costly

compared to its competitors but the taste is not getting a positive response from the market

either. Consumers are perceiving it as a low quality product. Therefore, work on innovation and

value addition should be done so it can be established as unique brand preposition in consumers’

mind. Also that consumers should consider it one of the high quality products in the market. For

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 Shan Shoop Noodles

that Shan will have to change its lower budget allocated to product costs and advertisements to a

higher one.

There were some misjudgments made by the company while launching Shan Shoop Noodles.

The company did not allocate enough budget, there was a lack of resources allocated to its

initially launch given the fact that Knorr and Maggi had an extremely strong position in the

market and therefore penetrating it as a new entrant would have been quiet difficult. Also they

did not work on building the product image based on brand equity as Shan is already a well-

known brand. Shoop Noodles could have been a tremendous success if they had focused on the

word ‘Shan’ that came with the name.

Also there has been a constant change in advertisement strategies for the product. Advertising is

no longer about selling products and hopes. It has become more challenging. TV commercials

now carry a message that has to have a positive impact, a trend which is going in traction. The

ads of Shoop Noodles have failed to connect with the audience despite having catchy jingles.

The reason behind it was the theme and misjudgment of the age groups. Particularly one ad,

which was introduced by the name ‘Hum Andar se bachay hain’, could not really have an impact

on the audience as the two segments shown in the ad did not have enough age difference to let

the ad line cash in. It would have had more impact if the older generation were older by a lot

more years than was shown in the ad. Also putting senior citizens in the older category might

have had more impact.

Therefore, we can also conclude that a change in advertisements needs to be done in such a way

that the ads connect with consumers of all age groups and not just children which has been a

problem previously.

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 Shan Shoop Noodles

Perceptual Map

Current Market Situation

After Repositioning

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 Shan Shoop Noodles

Repositioning Statement

Shan Shoop Noodles is an instant noodle brand for children, college students and urban dwellers

with a busy lifestyle who are looking for a wholesome, healthy, tasty, economically convenient

and instant meal that can be had even on the go. Unlike other instant noodle brands, Shoop

noodles provides four different variants in both, 2-minute stove as well as cup noodles that are

easily available at grocery stores and small retailers across the country with the aim of becoming

the market leader in Pakistan’s instant noodle industry.

Product Category Market Profile

Segments

Shoop segments its market based on the geographic and demographic variables. To begin with

the geographic, there are two broad segments, urban and rural populations. Shoop targets the

market in town regions, especially in metropolitan cities as the majority of urban people have a

busy lifestyle such as unmarried white-collar workers and university students. Instant noodles

become their best alternative to a home cooked meal which provides them with the fastest,

healthy and cost effective way to not only fill their stomachs but also satisfy their cravings for

something fun and different to eat.

Under the demographic variable, Shoop segments the market based on age, targeting the

millennial age-range customers such as university students who live in hostels. According to Pew

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Research Center located in Washington D. C., millennials are the young adults born between

1981 and 1996 (Pew Research Center, 2018). However, there are no precise dates for when this

group starts or ends. Demographers and researchers typically use the early 1980s as the starting

birth years and the mid-1990s to early 2000s as the ending birth years. Instant noodles become

their favorite because of their convenience and instantaneousness.

On the other hand, in terms of income, there are three main segments: high, mid and low income

groups. Shoop target market includes individuals belonging to all socioeconomic classes, from

the children of individuals belonging to high income group living in hostels or in their own

apartments or houses away from home for whom these noodles are a convenient and easy to

cook meal to individuals in the low-income group as instant noodles is a cheap alternative for a

meal. In short, Shoop is targeting the customer with a busy lifestyle and millennial age-range

irrespective of the income group to which the individual belongs. The reason for targeting this

particular market segment is because according to a market research conducted by Nestle

Pakistan in 2016, 70 percent of instant noodles are being consumed by children, teenager and

young adults.

Competition

Instant noodles are not really a part of Pakistan’s traditional Cuisine but it is becoming more and

more popular in recent years. Initially, instant noodles were introduced in Pakistan as a healthy

and tasty meal alternative for children. However, the popularity is also gaining momentum

among young adults and others, especially teenagers and college students. Secondly, the lifestyle

is diversifying in Pakistan, busyness makes it more attractive to people because it only takes

minutes to prepare and yet you can have a complete meal which is very cost effective as well.

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The very first introduced instant noodles in Pakistan was Maggi, a product of Nestle that was

introduced in 1992. Maggi was more popular in early days but as soon as Knorr, a brand of

instant noodles from Unilever, was introduced in 1993, it became more popular because of its

flavors and an effective marketing strategy.   

Knorr currently holds 55% market share of instant noodles in Pakistan while Maggi stands at

35%. Shan Foods introduced Shoop noodles in the market in 2012 but it failed to gain popularity

in the market despite Shan’s reputation as a brand in Pakistan. The main driver in Shoop noodles

failure to compete with big timers like Maggi and Knorr was a lack of availability in outlets

across the country and a poor marketing strategy. However, it still managed to cover a handsome

portion of market share considering the amount of effort or the lack thereof that was put in.

Knorr noodles have become the number one choice among kids in Pakistan over the years. On

the other hand, Maggi noodles are more popular in markets other than Pakistan including India,

Bangladesh, Singapore, Australia, Malaysia, United Kingdom, and New Zealand. In India,

Maggi Noodles once held 90% market share which gradually decreased to 63% before the

nationwide ban was imposed on it due to health hazards by Food Safety and Standards Authority

of India.  But according to Fortune’s report published in 2016, the Nestle India debacle was due

to a conspiracy against Nestle which cost it almost half a billion. Such cases have not been seen

in Pakistan. Nestlé’s market share has, however, still declined as a result of the increasingly

deteriorating quality of the noodles and their comparison with what Knorr has to offer, resulting

in Maggi constantly losing on customers. This provides a great opportunity to Shan Shoop

noodles to enter in the market particularly at a time when Knorr and Maggi are only offering two

flavors each: Chicken and Masala/Chatpatta. In a situation where the barriers to entry have been

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greatly lowered, there is a lot of potential for Shan Shoop Noodles to capture a larger chunk of

market share than what it is currently catering to by developing an effective marketing mix.

Trends

The instant noodle market in Pakistan finally entered the high growth stage after remaining in the

introduction stage for almost 15-20 years. Since foraying into local market about a couple of

decades back, generally speaking, instant noodles manufacturers in Pakistan are still facing the

challenge of a lack of broader acceptance. However, it seems that instant noodles market has

finally entered into the product growth stage after passing through introduction phase. Faisal

Nadeem, an official at Nestlé Kabirwala, describes the dynamics of Pakistan instant noodles

market saying that the general acceptance of instant noodles among people is set to expand in the

days to come.

“Looking at the data on how the noodles category has evolved in many of the countries in South,

Asia it is observed that the market grows steadily for a couple of decades and then exponential

growth takes place,” Nadeem observed. “This is reflective of the fact that tastes develop

gradually and noodles start becoming part of the food repertoire in the country,” he said adding,

“Pakistan is now in the phase where the noodles category is expected to go through a period of

high growth.   The market for instant noodles has been growing at an average rate of 15 percent

per annum in the last three or so years. It is expected that this trend will gain momentum in years

to come.”

Presently, the estimated annual market size of instant noodles market is Rs. 6 billion based on

market capital. On a specific question about market share of Nestle Pakistan, especially if it is

compared with Indian market, Faisal Nadeem said, in India, Maggi has existed for over 35 years,

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10 years more than the time it has existed in Pakistan. The major growth spurt in instant noodle

consumption in India took place in the last 10 years.

“Also, I believe the difference can also be put down to the difference in eating habits. In India,

noodles are eaten as a meal while, in Pakistan noodles are more of a light meal in between lunch

and dinner because people in Pakistan normally don’t consider anything that is not meat, roti and

rice to be ‘proper food’.”

Research shows that more than 80 per cent of noodles consumption takes place between 4 pm

and 8 pm. This is reflective of the fact that Pakistan’s population, in general, categorizes instant

noodles as a ‘light meal’ that serves as a shortcut for briefly satisfying the tummy’s emptiness

rather than just a snack or an appetizer on one side or even a full meal on the other end of the

spectrum.

Keeping in view growing focus of people on health related issues, question about nutritional

value of noodles does exist. However, instant noodles in the Pakistani market are manufactured

by companies like Nestle and Unilever that pride themselves on being the world’s top nutrition,

health and wellness companies. The use of brand equity plays a very important role in portraying

instant noodles as a healthy meal alternative and therefore, consumers do not think much of it.

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Target Segment Consumer Behavior

The element of consumer behavior in the chosen target segment is such that people perceive

different products differently. When we talk about individual behaviors of one mass target

segment of consumers, we can see how each consumer has a different perception of whichever

product they are consuming. In the case of ‘Noodles’, we have noticed a pattern of diversity in

how people like them (with respect to consumption). Some people like it cooked with a lot of

water and some often experiment by adding spices of their own. In this respect, we can easily

judge how the use of sensory threshold has an impact on the way you consume a certain product.

The cluster you create to put similar types of consumers involves the element of emotional,

physical and behavioral responses and the way you want them to be posed. Referring back to the

explanation of segments and the relevant target markets earlier in this report, the focus is on both

demographical and geographical elements of Shaan Shoop Noodles which are consumed all over

Pakistan just because of the way they have been positioned. The instant judgment of a product

being up to the mark after knowing about the company that produces it is an example of

‘perceiving’ something based on reputation and brand image. This instant judgment is present in

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the subconscious segment of the human brain which helps you throughout the time you perceive

a certain product. The human brain reacts to certain vivid memories and improves overall

cognitive decision making. This ability then leads to large scale consumption of your favorite

product that is Shan Shoop Noodles. Certain age groups from the cluster of this segment in

Pakistan show variety. Talking about different income groups in Pakistan, the affordability of the

product is directly proportional to the revenue it generates or in simpler terms, consumption. The

smaller packet is of Rs. 20 and the bigger packet is of RS. 30. This price range attracts the

consumer since the perceived risk of monetary issue is comparatively low in reference to other

brands of noodles. The essence of purchasing something and being satisfied to an extent that the

consumer repurchases is all present in Shan Shoop noodles and this trait makes it an everyday

compulsory product in all over Pakistan.

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Marketing Mix Recommendations

The professional way to launch a product is to prepare an effective marketing strategy. The

variables upon which the marketing strategy is dependent upon are product, price, placement and

promotion. Shoop Noodles initially were not able to create a place in the market because of a

poor marketing strategy. On the subject of repositioning of Shoop noodles in the market the

following marketing strategy mix has been devised.

1. Product

Shan Shoop Noodles were launched by Shan back in 2012. The initial flavors being offered were

Chicken, Masala, Spicy Lemon, BBQ, Bombay Biryani, Thai Lemon Chili and Ketchup.

Initially, Shoop Noodles drastically failed to attract any customers or to make a mark in

the market despite offering such a wide range of flavors. It now plans on repositioning

itself in the market by relaunching with just 4 flavors: Chicken, Masala, Lemon Chilli

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and Tikka. This is a smart number to go with because it is more than what the

competitors are offering but still not big enough to result in cannibalization.

Since Shoop Noodles target market is going to be children, college students and busy urban

dwellers, Shan Shoop noodle’s is going to re-enter the market with two different product

lines in terms of packaging, 2-minute stove noodles and 2-minute cup noodles. Cup

Noodles were initially introduced in Pakistan by Kolson in three different flavors, Shan

intends to leave a mark in the market by introducing a separate product line of Cup

Noodles with new and better flavors (all four: Chicken, Masala, Lemon Chili and Tikka)

as compared to Kolson. In addition to this, the packaging initially being used by Shoop

noodles was of low quality. This gave off an impression of it being a low quality product

as a consequence of Shan compromising on its quality just for the sake of money. As a

result, consumers would occasionally drop it out of their consideration set when they

would be thinking of making a purchase. Hence there forth Shoop has decided to employ

the use of high quality packaging material and also decided to redesign its packets, for the

purpose of giving off an impression of a high quality brand. Shan Shoop noodles initially

used to provide flavors in liquid form, having received negative feedback from its initial

customers. Shan has decided to discontinue them and provide flavors in a powder form

from now onwards. The 2-minute noodles packets would be reusable having a zipper on

the top making the packets to be used for collecting coins or other small items, promoting

the sense of avoiding unnecessary spending of money and instead saving it in these small

packets. The packets would be redesigned; color scheme would be made more modern to

give of an impression of high quality.

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2. Price

Knorr and Maggi have a significant share in the instant noodle market and a strong consumer

base. For this specific reason Shoop intends to re-enter the market with its new flavors

priced the same as its competitors have priced their products. Consumers when coming

across a high end product with new flavors and that too at the same price as compared to

its competitors, would be more inclined to purchase Shoop noodles.

Secondly Shoop Noodles would also focus on providing discounts to its customers. To develop

brand loyalty for its products Shoop Noodles would focus on providing its regular

customers with brand loyalty card. Customers who get this card would get to try new

flavors that are to be launched in the market beforehand. Also this card would be used to

get discounts on regular purchases of Shoop products.

3. Placement

Placement was the main issue that prevented Shan Shoop Noodles to stay and grow in the market

initially. Its supply chain was not effective enough. The manufacturing facility of the

product could not keep up with the production in amounts that would have been enough

to compete in the market with Knorr and Maggi. As a result, Shoop noodles faced

outages at various stores. Now Shan Shoop Noodles has decided to devise an effective

supply chain system which would focus on maintaining the production level and ensure

that the products never face outage at any of the stores. Secondly the product would be

placed along with its competitors on the main/front shelves. It will also open up a

department in each of the province whose sole function would be to ensure its delivery in

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every target store, making sure that a steady supply is maintained across every major and

a large number of small stores across the country.

4. Promotion

For the purpose of promotion of its product Shan Shoop Noodles would employ the use of Push

and Pull strategy which focuses on first creating hype about the product in the market to

attract consumers and then later onwards supplying your product to the market. For this

purpose, Shan Shoop Noodles would employ the use of TV ads and billboards. It will

also send out early samples in the form of PR packages to different bloggers and food

vloggers to get them to give their reviews about the product and tell their followers

regarding Shoop’s different variants. It will also employ the use of opening up small

stalls in major malls and grocery stores, making people try out any of the variant of

Shoop’s instant noodles for free. Print and Social media advertisements will also be used.

Regular TV commercials will be aired in between evening and night time, as the target

market, which constitutes of children, teenagers and/or students and working class of

young adolescents are found to be using these mediums excessively at this time period.

Shan Shoop noodles would also use the medium of emails. It will regularly email its customers

who have signed up for the newsletters, making them aware of the new products in

development, discounts or any event concerning the product coming up. It will also

employ major celebrities as its brand ambassador and also sponsor different sports

events, which are an attraction for students and teenagers alike.

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Conclusion/Summary

1. Demographics

Under the demographic variable, Shoop segments the market based on age, targeting the

millennial age-range customers such as university students who lives in hostels. The responses

showed that majority of the consumers purchasing Shoop noodles were in fact millennials

(72.5% of 20-25) which are either living away from home or are in need of quick meals in their

busy life. The responses confirmed that Shoop in fact is targeting the right age group for their

product since younger customers are more likely to purchase instant noodles as compared to

older customers.

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2. Competition

The respondents were asked to choose their favorite brand of noodles in Pakistan and 65% chose

Knorr and 27.5% chose Maggi which reflects exactly the market share of Knorr (55%) and

Maggi (35%) in Pakistan. Only 2% of the respondents chose Shoop as their favorite brand which

showed that competition in the market is one of the main reasons why Shoop has yet to find

success. Shoop has covered 11% of the market share in Pakistan but it can gain more success and

popularity if it uses competitive advantage by introducing new and exciting flavors which Maggi

and Knorr have not done yet.

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3. Trend

Instant noodles in Pakistan have been in the introduction stage for quite a few years now and

have only recently entered the growth stage. The responses show that only 2% consume instant

noodles daily which proves that the instant noodles market is still expanding. 47.5 % are

consuming it monthly and 32.5% are consuming it weekly which proves that the instant noodle

market is still growing and it still isn’t considered as a daily meal for consumers.

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4. Product Flavors

Originally Shan Shoop Noodles offered seven different flavors which included Chicken, Masala,

Spicy Lemon, BBQ, Thai Lemon Chili, Bombay Biryani and Ketchup but none of these flavors

stood out in the market and failed to bring much revenue. The survey showed that 60% of the

respondents didn’t even know that Shan Shoop offered seven different flavors and 27.5% were

surprised to find out that they did. This shows that Shan Shoop Noodles failed to launch its

different flavors in the market. In order to change that Shan Shop Noodles is going to change its

flavor names to bring more appeal to them and are going to introduce one new flavor.

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5. Packaging

When asked if consumers would prefer a noodle cup instead of the traditional noodles 42.5%

agreed that they would buy that instead. 12.5% were not sure and 7.5% were uncertain if they

would prefer that option. Shan Shoop is planning to introduce a cup of noodles with eight

different flavor packs to cater to students and people on the go so that they expand their

market.

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The packaging initially being used by Shoop noodles was of low quality. This gave off an

impression that the noodles weren’t as good because the packaging of a product is what most

consumers judge at first sight. 30% of the respondents didn’t like the packaging and 22.5%

didn’t even remember it which means the packaging wasn’t memorable as it should be. 20% of

the respondents weren’t sure if they liked the packaging. In order to fix this Shan intends to

employ the use of high-quality packaging with a better color scheme which would also be

reusable.

6. Placement

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Placement was the main issue that prevented Shan Shoop Noodles to stay and grow in the market

initially since its supply chain was not effective enough. Only 42.5% respondents were aware

that Shan Shoop noodles were being sold at grocery stores. 17.5 % weren’t sure at all and 12.5

didn’t even remember if they were being sold at grocery stores or not and 27.5% were certain

that they could not find this product at the grocery store.

7. Advertisement

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Shan Shoop Noodles introduced its product through a T.V. commercial “Hum Andar Se Bachay

Hain” which 50% of the respondents have seen and 37.5% have not seen, the rest are either

uncertain or don’t remember watching it at all.

When asked if they liked the Advertisement 27.5% agreed that it can be improved and 7.5 %

hated it. Only 20% of the respondents agreed that they loved the Ad and the rest of the 45%

didn’t have an opinion about it. This proved that Shan Shoop needs to improve its promotion and

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they intend to do that through employing a push and pull strategy, introducing PR packages and

launching new T.V. commercials.

References

Ali, L. (2018). Campaign Watch-A Review of Latest Advertising Campaigns. Aurora. Dawn

News.

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Ashfaque, U. (2019). Shoop Noodles Facebook Statistics. Social Bakers Inc.

Hasan, M. (2018). Instant Noodles Market Finally Enters into High Growth Period. The News

International.

Saleem, S. (2018). Why Shoop Noodles Failed. Express Tribune.

Waheed, S, Waheed, A. and Majeed A. (2017). E-Commerce as an Entry Mode in Chinese

Market; An Analysis of Global Marketing Strategy of Shan foods, Pakistan. International

Journal of 360 Management Review.

Zeb, Y. (2019). Knorr Noodles beats Maggi with 55% Market Share. Research Snippers News.

Appendix
Questionnaire
1. Age
a. 15-20
b. 20-25
c. 25-30

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d. 30-40

2. Do you believe that Shan is a reputable brand in Pakistan?

a. Yes
b. No
c. Maybe
d. Not sure

3. How often do you eat instant noodles?

a. Daily
b. Weekly
c. Monthly
d. Once in 6 months

4. What is your favorite brand of Instant noodles in Pakistan?

a. Knorr
b. Shan Shoop
c. Maggi
d. Kolson

5. What is your go-to flavor?

a. Others: _____________
b. Chicken
c. Spicy Lemon
d. Masala/Chapatta

6. Have you ever tried Shan Shoop Noodles?

a. Yes
b. No
c. Maybe
d. Can’t Recall

7. If yes, then do you think they are as good as Knorr or Maggi instant noodles?
a. They are the same
b. They are better
c. No, they’re not as good
d. I have not tried them

8. If you think they’re not as good, please specify why?

(subjective question)

9. Do you believe that Shoop noodles will do better in the market if the name was
changed?
a. Yes, definitely
b. No, I like the name

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c. Maybe
d. Not Sure

10. Did you know that Shoop noodles initially offered 7 different variants/flavors?
a. Yes
b. No
c. Really? They did?
d. Maybe

11. Have you watched Shoop noodles’ ‘Hum Ander Se Bachhay Hain’?
a. Yes
b. No
c. I don’t recall
d. Maybe

12. If yes, did you like it?

a. I love it
b. It was okay, can be improved
c. I hate it
d. I have no opinion on it

13. When you go for grocery shopping, do you find Shoop Noodles with Knorr and
Maggi on the shelves?
a. Yes
b. No
c. I don’t recall
d. Maybe

14. Do you like Shoop noodles’ packaging?

a. Yes
b. No
c. Maybe
d. I don’t really remember the packaging

15. Would you prefer an instant noodle cup over the traditional 2-minute noodles that
are to be cooked on the stove?
a. Yes
b. No
c. Not sure
d. Maybe

16. Would you consider this brand of noodles “an everyday option”?
a. Yes
b. No
c. Maybe
d. I don’t know

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