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To promote marketing strategies that prevent Nissin
Foods from getting involved in price wars, management
will emphasize four activities under the Frequent
Shoppers Program. The first is mobile marketing, whereby
consumers use their mobile phones to access product
news. The second is a way to encourage consumers to
try more Nissin-brand products by presenting coupons to
consumers at the cash register when the cashier scans
through Nissin-brand products. The third is passive tactic
utilizing a point card system that gives consumers points
for the Nissin-brand products they purchase. The fourth
is in-store merchandising, which targets repeat customers
and highlights specific instant noodle products.
Nissin Foods has teamed up with supermarkets, convenience
stores and grocery stores to develop exclusive
products geared to the diversifying needs of the respective
customer groups served by these retailers. But the
Company plans to extend the scope of this strategy to
encompass more retail operators and thereby carve out
new marketing channels.
Review of Operations
Review of Operations (Consolidated)
Chilled and Frozen Foods
Consolidated Chilled and Frozen Foods Sales
(Billions of yen)
39.1 39.7 39.9
40
37.0
34.7
30
20
10
0
’01
’02
’03
’04 ’05
Nissin Foods’ chilled and frozen food products line
Fiscal 2005 Environment
Consolidated sales of chilled and frozen foods in fiscal
2005 edged up 0.4%, to ¥39,859 million.
Chilled Foods
Sales of chilled foods decreased 2.2%, to ¥14,857 million,
on a consolidated basis, but this comprises only
sales in Japan.
The domestic chilled noodle market was valued at
approximately ¥260 billion, based on fiscal 2004 shipments
of 5.4 billion servings, including those for commercial
use. But in fiscal 2005, extra hot summer temperatures
caused overall demand to retreat 4.5% on a
servings basis and 6.5% on a value basis.
In autumn 2004, Nissin Foods tried to revitalize interest
in Gyoretsu-no-Dekiru-Mise-no-Ramen, a high-priced
brand that costs ¥400 for two servings. The Company
revamped existing flavors and extended the series with
several new flavors, including Gyoretsu-no-Dekiru-Miseno-Ramen
Kogashi-Negi (Shoyu, Miso), featuring an
envelope of grilled green onions and a choice of soy
sauce- or miso-based soup, and Gyoretsu-no-Dekiru-
Mise-no-Ramen Osaka-Yasai-Dashi-Shoyu, featuring an
Osaka-style soy sauce–based vegetable soup.
The only products to actually benefit from the hot
Gyoretsu-no-Dekiru-Mise-no-Ramen
Hiyashi Chuka
10