Raw material more expensive presses Nissin

São Paulo-Nissin-Ajinomoto has seen the cost of the raw material to grow since last year, reflecting the devaluation of the real. The company, however, has been able to keep prices unchanged.
"Our cost is growing a lot, affected mainly by high-dollar", says the Director of marketing for Nissin, Toshiro Tsuboi.
Despite buying the wheat produced in Brazil, Nissin ends up having to import grain to meet the demand of the production line. Most of the imported wheat comes from Argentina, Canada and United States.
The crop failure also hindered the wheat purchase on the domestic market. The Brazilian production, which does not meet all the demand in the country, was below expectations and the quality of the product is impaired by weather.
To maintain the attractive price, one of the main appeals of the product on the shelves, the manufacturer has not passed on the high costs to the end product. "With that our profit margin is further pressed, so we invest in factory optimization to reduce costs," he says.
The resources earmarked for advertising for the year, however, will not be reduced, ensures the Executive.
Second Tsuboi, the company already was planning a bigger investment in advertising to commemorate the 50 years of the brand in Brazil. The company is a leader in the segment.
"The Nissin has a presence in the Country, so our focus is to increase the consumption of those who already buy brand products", explains.
Strategy
Trademark Web site received the most contributions of advertising for the year, following the company's channels on social networks and Lastly, the campaigns that will be broadcast on television.
"In July, the campaign of 50 years comes to TV, but the site is already up and running in the new format," says the Executive.
The main goal of the new website is to promote new revenues to stimulate the consumption of the product differently. "We are present in all groups, but we noticed that the frequency of use is still smaller in classes A and B," he notes.
To increase sales, the strategy adopted by Nissin-Ajinomoto includes the launch of new products and promote new ways to consume the traditional noodles.
Integral mass
An eye on the consumer demand, the company has already launched lines with healthy appeal, as versions of macaroni and integral mass and light versions of the product. Tsuboi account that these releases are often a result of the close contact that the company has with customers.
On the market of the North and Northeast, Nissin identified the preference for stronger seasonings and launched the line Our flavor, with prices 30% smaller than the traditional line.
"Our Flavor goes well in the regional market, but the traditional line still accounts for 51% of the total sales volume of the company," he recalls.