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Company Feasibility Study
Company Feasibility Study
Company Feasibility Study
Nissin
Executive Summary
Ten years later the company introuduced the first instant ramen noodle product
(Chicken Ramen. Soon thereafter, the company name was changed to Nissin Food
Products Co.Ltd. Nissin Food Products Company Ltd. is the world's leading producer
of instant ramen noodles. The Osaka-based company controls more than 40 percent
of the Japanese market, despite competition from some 500 other noodle-makers,
and some 9 percent of the worldwide market. Nissin founder Momofuku Ando is
credited with inventing the instant noodle, considered by many to feature among the
most important Japanese inventions of all time. The company produces a large range
of instant noodle flavors, introducing some 100 new flavors each year. Since the
1990s, Nissin also has expanded its business to include fresh and frozen noodles,
and other products, such as cereals. The company has responded to increasing
consumer demand for ready-to-eat meals by launching its own line of fresh and
frozen prepared foods.
The company was also the first in Japan to launch retort-packaged foods.
Nissin's products reach more than 100 countries worldwide. In support of its
international business, the company operates some branches and subsidiaries,
including manufacturing facilities, in ten countries, including the United States,
Germany, The Netherlands, Hong Kong, the Philippines, Thailand, Singapore, and
China. Nissin is listed on the Tokyo Stock Exchange but remains controlled by the
Ando family. In 2005, Momofuku Ando announced his decision to retire as company
chairman at the age of 91.
Marketing strategy
Nissin Foods Marketing Strategy comprises of not only its Marketing Mix, but also
segmentation, targeting, positoning, competition and analysis like SWOT. Also
read Nissin Foods SWOT Analysis, STP & Competitors
Nissin Foods Place & Distribution Strategy:
Following is the distribution strategy of Nissin Foods:
Nissin noodles can be easily bought from retail shops selling grocery and general
consumables in almost all parts of the countries. In emerging markets, these noodles
are available in organized super markets and retail chain stores. Nissin noodles are
extensively present very close to the consumers, and can be bought easily. The cup
noodles brand from Nissin has been able to penetrate the colleges, offices and other
canteens in buildings. Along with these super markets, the noodles can also be
bought from many e-tailing sites like amazon, Flipkart and Ebay. Nissin also tie up
with regional players in markets to increase the reach. They place their products
along with other products of similar category in the shelf in these supermarkets. They
have a strong distribution network to ensure its presence in large number of stores in
all the locations.
Nissin have also been able to reach a large portion of rural market in developing
countries.
Technical Feasibility
The work shed erected in the back yard of Ando's home (reproduction)
In a shed he built in the backyard of his home, Ando began research into "Ramen
that can be quickly prepared and eaten at home with only hot water." He cobbled
together all the tools and materials used for the project himself and conducted non-
stop development alone for an entire year, without taking a single day of rest and
sleeping only four hours a night on average. Each day was a desperate struggle.
Ando set five development objectives. The first and most important was that the
noodles must have a delicious taste that people would not grow tired of. Next, they
must be non-perishable so they can be stored in household kitchens. They must also
be quick and easy to prepare, and furthermore, must be inexpensive. Finally, they
must be safe and sanitary.
Although Ando had set clear objectives, since he was a complete amateur at noodle-
making, he spent day after day preparing and discarding countless trial products. At
long last, Ando arrived at the ideal formula through repetition of this daunting
operation. This experience made him realize that food products are all about
balance, and that their development is a task that involves trial-and-error pursuit until
the single perfect balance is discovered.
"How should noodles be dried so that they can be stored for long periods of time?"
"What should be done to make them ready to eat just by adding hot water?"
An early TV commercial
Achieving this storage stability and convenience was the highest barrier Ando faced
in developing instant noodles. One day Ando went into the kitchen when his wife was
deep-frying tempura. He noticed that the flour coating placed in the hot cooking oil
was giving off moisture, making bubbles around it in the tempura pan. This was the
answer! Apply the principle of tempura preparation to noodles. Ando promptly tried
frying some noodles in the oil and found that the moisture in the noodles was forced
out by the high-temperature oil. These noodles, which were nearly completely
dehydrated, did not deteriorate or decompose even when stored long term. Ando
realized that this production method also solved the problem of convenience. Hot
water poured over the noodles was absorbed through tiny cavity made during
dehydration and penetrated throughout the noodles, restoring them to their original
softness.
In this way, Ando found the hint that led to the production technology that became
the basis of instant noodles (flash-frying). On August 25, 1958 Chicken Ramen, the
world's first instant noodles, was launched. Since Chicken Ramen, a food ready to
eat in just two minutes after adding hot water, was a product inconceivable under the
conventional wisdom of the times, it was dubbed "magic ramen."
When Chicken Ramen was introduced, the price was ¥35 per serving. At a time
when the price of a bundle of udon noodles was ¥6, the owners of food wholesalers
were reluctant to stock the product on the grounds that it wouldn't sell.
However, Chicken Ramen increasingly gained a reputation among the people who
actually ate it as being tasty and convenient, and before long wholesalers were
inundated with orders. In the end, Chicken Ramen became such a hit product that a
long line of wholesaler trucks formed in front of the factory to wait for it to come off
the production line.
Chicken Ramen went on sale at just the time when the number of double-income
households and nuclear families in Japan began to increase. Instant noodles, which
can be prepared simply by adding hot water and can be stored for long periods of
time, were a boon to homemakers. In addition, the first supermarket had appeared in
Japan the year before the release of Chicken Ramen. The introduction of a Western-
style distribution system completely different from the previous distribution model
opened up a channel for high-volume sales of processed foods, including instant
noodles. Furthermore, it was also around this time that the medium of television
began to attract people's attention. Although in those days the power of television as
a mass medium was an unknown quantity, Ando was quick to become a television
sponsor and produce commercials. As television rapidly gained popularity, Chicken
Ramen became widely known.
Obtaining the hint that led to Cup Noodles during an overseas inspection tour
New product development began with preparation of a container. The ideal container
that Ando had in mind would be sized and shaped suitably for holding in one hand.
Following production and consideration of nearly forty prototypes, a container
resembling an enlarged paper cup was adopted. The material selected for the
container was polystyrene foam, which is lightweight, offers good heat insulation, and
is highly economical. However, it was an unusual material in Japan at the time, and
processing it in thin sheets and molding it into containers that fit in one hand was no
easy task. Accordingly, Ando introduced an American technology and launched an
in-house container production project. Although it took time to refine the quality to the
point of producing an odorless container suitable for food products, in the end a cup
that far surpassed U.S. Food and Drug Administration (FDA) quality standards was
perfected.
Although cup development had been successfully completed, filling the cups with
noodles proved to be another difficult problem. Since the top of the cup is wide and
the bottom narrow, noodles can easily be inserted provided the block is made smaller
than the cup. The downside, however, is that the noodles can be jostled about inside
the cup during transport and break apart. And so, Ando came up with the idea of
making the block of noodles larger than the bottom of the cup and suspending it in
the middle of the cup (called "middle retention"). However, when he actually tried
putting the noodles into the cups, they would tilt or tip over. Ando thought about the
problem constantly. One night after he had retired to bed, the ceiling suddenly
seemed to spin as he had a flash of insight. The answer wasn't to drop a block of
noodles into a cup, but rather to turn the block upside down and place the cup face
down over it from above. This counterintuitive idea made possible reliable filling of
the cups and opened the way to mass production at the factory.
Cup Noodles is a product infused with various other ingenious ideas and devices in
aspects including the lid, the ingredients, and the method of frying the noodles. Ando
used to say "Tenacity is the breeding ground for inspiration," and he not only
introduced new materials and technologies, but also devised new approaches to
solve problems one after another. The new product that resulted from this process,
named Cup Noodles so that it would be readily understood around the world, was
introduced on September 18, 1971.
Since Cup Noodles carried a premium price of ¥100 per serving at a time when bag-
type instant noodles were priced at ¥25 and people were saying that eating while
standing is bad manners, retailers were reluctant to stock the product. Accordingly,
Ando decided that the company would open up a new sales channel and engage in
unprecedented advertising and sales promotion. The company prepared vending
machines that dispensed hot water so that customers could prepare and eat Cup
Noodles right where they purchased them. These novel vending machines attracted
considerable attention, and 20,000 units were installed nationwide in a year's time. In
addition, the company focused attention on the pedestrian-only zone in Ginza, a
popular place for young people to gather. Direct sampling sales events for Cup
Noodles drew far larger crowds than expected and became so popular that on good
days the company sold 20,000 servings.
Cup Noodles was introduced in the U.S. market in 1973 under the name Cup
O'Noodles. Business bases were subsequently set up in rapid succession in Brazil,
Singapore, Hong Kong, India, the Netherlands, Germany, Thailand, and other
countries. The company did not export the flavors sold in Japan, instead, developing
soups, ingredients, and other product aspects that reflected the preferences of the
people of each country and region. As a result, Cup Noodles became a global food
that originated in Japan.
Ando, who never lost his enthusiasm for product development even in his declining
years, was 91 years old when he declared that the company would develop space
food. He formed a project team that he himself headed and began development. The
team perfected Space Ram, instant noodles to be consumed in space, coming up
with ingenious ideas such as thickening the soup to prevent it from escaping in zero
gravity and making noodles in a size and shape to be eaten in a single bite. In the
end, however, the technology that became the foundation of product development
was the flash-frying process that Ando discovered in 1958. The Space Ram project
attested that instant noodles is an excellent food that has met needs from the time of
its development into the space age.
Space Ram journeyed into space in July 2005 aboard the space shuttle Discovery.
Astronaut Soichi Noguchi, who became the first human to eat instant noodles in
space, reported on a live broadcast from the International Space Station that the
flavor of instant noodles consumed on Earth had been reproduced to an astonishing
degree. Ando, who realized a dream of many years at the age of 95, said, "There's
no such thing as too late in life." His enthusiasm to create new foods had at last
escaped the bonds of Earth and spread into space.
Momofuku Ando invented instant noodles, changing the dietary culture of the world.
A half century after Ando brought the world Chicken Ramen, total worldwide demand
for instant noodles surpassed one billion servings. The spirit of Ando, who continued
to possess creative ideas and the tenacity to persevere until the close of his life at
the age of 96, is carried on today by the NISSIN FOODS Group.
Financial Feasibility
Organizational Feasibility
CONCLUSION
Nissin Food Products Company Ltd. is the world's leading producer of instant ramen
noodles. The Osaka-based company controls more than 40 percent of the Japanese
market, despite competition from some 500 oth er noodle-makers, and some 9
percent of the worldwide market. Nissin founder Momofuku Ando is credited with
inventing the instant noodle, considered by many to feature among the most
important Japanese inventions of all time. The company produces a large range of
instant noodle flavors, introducing some 100 new flavors each year. Since the 1990s,
Nissin also has expanded its business to include fresh and frozen noodles, and other
products, such as cereals. The company has responded to increasing consumer
demand for ready-to-eat meals by launching its own line of fresh and frozen prepared
foods. Nissin is not just a food production but also gives people jobs the more it
become known worldwide the more gives people job.
RECOMMENDATION
One of the comment that I see and also the comment that I want to express. Since is
nissin is the best company, theres nothing to recommend about. But as a citizen, I
want to recommend that they will not disappoint us with their products as time goes
by.
DOCUMENTATION
REFERENCES
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