HANOI UNIVERSITY FACULTY OF MANAGEMENT AND TOURISM PRINCIPLES OF MARKETING PROJECT REPORT Tutor : Mr. Nguyen Minh Duong Subject: Principles of Marketing Class : LEC 1 – TUT 1 Group : 5 Company chosen : Masan Consumer Brand chosen : Omachi Noodles Member : Tran Doan Thanh Trang – 1704040123 Duong Thi Mai Phuong – 1804010084 Nguyen Ngoc Anh – 1904010008 Nguyen Thanh Tung - 1904010092 Hanoi, 2021 As society is developing more and more, people's lives are improving, we also spend more time at work. Therefore, consumers have been tending to use more and more utility products. Understanding this demand of customers, companies have produced a series of instant products such as noodle soup, porridge, noodles,.
Typically, the instant noodle product line has created a competitive market. fierce competition with many large companies. Instant noodles were born in Japan in 1958 and quickly became one of the most consumed processed foods in the world. In the early 90s, instant noodles were present in Vietnam with a wide variety of products.
Currently, instant noodles in Vietnam are widely used by all classes of people. In this assignment our team chose Omachi noodles - a famous product of Masan Consumer to build a marketing plan. Although born later than products of other companies, Omachi noodle products have quickly been known to consumers. This report is divided into 8 main parts: Company Introduction, Current marketing situation, SWOT analysis, Main Issues, Marketing Objectives, Marketing Strategies, Action Program and Illustrations for your proposed action program Page I 1 Masan Consumer Joint Stock Company (Masan Consumer) was formerly known as Viet Tien Technology - Engineering - Trading Joint Stock Company, specializing in the production of processed foods and condiment products.
Established in 1996, Masan Consumer has quickly maintained its leading position in the food and beverage industry in the domestic market after transforming from a purely export model. To date, Masan Consumer has become a billion-dollar revenue company with a diversified and trusted portfolio of product brands in the field of consumer goods (“FMCG”). Masan Consumer is involved in most of the FMCG segments, including convenience foods (instant noodles & porridge), condiments (soy sauce, fish sauce, chili sauce), processed meats (pasteurized sausages, etc.) pork balls), soft drinks, coffee, cereals and cosmetics. According to Kantar World Panel, 98% of Vietnamese households use at least one Masan Consumer product in 2020 (Annual Report 2020).
At the same time, Masan Consumer is in the top 5 largest F&B companies in Vietnam in terms of revenue and in the top 10 most valuable brands in Vietnam. According to Euromonitor, Masan Consumer has the largest market share in the fish sauce industry with 29.8%, the second largest in the instant noodles industry with 20.0% - just behind Acecook Vietnam (unlisted) and the third largest in the market. energy drink market. In addition, the company also leads in the segment of instant coffee (about 40% market share) with two main brands, Vina cafe and Wake up.
The level of product 1. Level 1 : Core product Masan Consumer launched Omachi instant noodles with a clear message: potato noodles help consumers not be afraid of heat. It's a great strategy for Omachi products. It hit on consumers' concerns about instant noodle products that can cause heat in the body and offered a potato noodle solution to alleviate that doubt.
The key point of the message is that Omachi products focus on the health of customers because the kukoamine in potatoes has skin-beautifying and health-promoting effects. Omachi instant noodles come in many different flavors including : “Braised Pork Rib Flavor”, “ Beef Stew Flavor”, “ Hot and Sour Shrimp Flavor”, “Crab Flavor”, “ Spaghetti Sauce flavor”, “Special Minced Beef With Wine Sauce Flavor”, “Salted Egg Cheese Sauce Mix Flavor”, “Super Spicy Shrimp Flavor”, “102 Beef With Pickle”, “102 Spicy Seafood Hot Pot”, “4 Minutes Stew Beef Flavor”, “Spicy Beef Flavor” 2. Level 2 : Actual product Brand name : Omachi instant noodles Features : The noodles are soft, chewy, and have a beautiful golden color, mixed with a rich sauce. 100% ingredients are from nature.
Chemicals are completely excluded in the noodle production process and additives and preservatives are also not found. Omachi provides consumers with enough protein, starch and energy for the customer's body. Logo : Slogan : “Omachi noodles made from potato fibers - Very delicious without fear of heat” Page I 4 Meaning of logo: The name “Omachi” was one factor that made the brand popular. Not only make it sound appealing but also make sense.
Omachi in Japanese means “wait a minute”, the prominent “Omachi” written in red, inspires customers to, as the company claims, “an irresistible temptation. The circles as seen in the letters O, A, C and I in the logo represent the company's careful selection of components. The 5 stars symbolize the outstanding quality of the products and the company's ambition to enhance Omachi's sales at the international level. The net weight of an Omachi ranges from 77g as minimum to 120g as maximum Packaging design : With its vertical shape and black background, Omachi completely highlights the other instant noodles.
The product packaging is designed with nylon, so it is waterproof and helps products to avoid being damaged during transportation. Packaging has attractive and impressive colors and images to attract customers at first sight. Besides, Omachi noodles not only have many flavors of noodles, but also have many different packaging forms like pack, cup, bowl and various packaging sizes: carton, 5 packs/bag ; 10 packs/bags or 30 packs/carton that let customers easier to choose and buy. Level 3 : Augmented product Masan Consumer launches Omachi Cup – complete meal solution and Omachi mashed potatoes.
Next, the company also entered the ultra-premium market with Omachi Cup Noodles - Business Class, a solution for delicious, nutritious meals with vegetables and meatballs Page I 5 2. Product classification: Like many other instant noodle brands, Omachi is classified as a convenience product because consumers can buy it in many places such as supermarkets, grocery stores or local markets. Besides, the outbreak of the COVID-19 pandemic has limited going out, so most consumers have turned to home-cooked meals and stored dry food for a long time. Therefore, the demand for packaged foods such as instant noodles has increased sharply around the world.
Product life-cycle The instant noodle market in Vietnam in general and Omachi brand in particular is at a maturity stage due to the increasing demand of consumers. In 2020, Omachi instant noodles dominate the high-end segment with 45% market share, becoming the best-selling brand in supermarkets, convenience stores and the best-selling bowl of noodles in the country (Vietdata,2021). Currently, Omachi is taking steps to maintain growth and avoid a drop in sales profits as much as possible. Page I 6 Different from other instant noodles, Omachi is the first instant noodle product in Vietnam made from potato fiber with seasoning packages completely extracted from natural vegetables and fruits, so the price of these products is very low.
Omachi is more expensive than the average in the market. In return, customers will be able to use high-quality, nutritious products. Although Masan Consumer first launched Omachi potato noodles as a completely new product in the market in 2007, it still used a penetration pricing strategy by offering a very competitive price to win the hearts of customers and gain market share as well as increase brand awareness. Omachi's noodles such as "Five Fruit Stew Ribs", "Thai Steamed Clams", "Korean Hot Pot" and "Salmon Cooked with Bamboo Shoots" are all priced at 3,000 VND/pack (in 2007).
In addition, Masan Consumer also launched Omachi Nutrition Than Dong Noodles with many additional benefits for children thanks to the DHA content in the noodles. Continuing to apply intensive pricing strategy for the new product, three flavors of noodles such as "Shrimp With Cheese Sauce", "Pork Stew with Vegetables", "Chicken Stew with Milk" were all priced at 5000 VND/pack. This was a much higher price than the price of 4 types of Omachi noodles that were on the market at that time but still within a competitive price with other types of noodles such as Hao Hao noodles (3500 VND/pack), Hello noodles (3500VND/pack), De Nhat Noodles (5500 VND/pack) and A- One noodles (5400 VND/pack). After successfully entering the market, Masan Consumer has applied a premium pricing strategy to enhance the value of Omachi Instant Noodles as well as want customers to remember this product line as a brand with high quality and safe products.
This table below is the current price of basic Omachi noodles : Page I 7 Omachi is currently selling a variety of products with different flavors to help customers have more choices. Omachi not only retails 1 product, but it also wholesales in cartons (24-30 packs) or in combos (5 packs/bag, 10 packs/bag). When buying in a box or in a combo, customers will receive cheaper prices and more convenience because they do not need to buy many times. For example, a pack of Omachi - Braised Pork Rib Flavor noodles costs 7,500 VND.
If buying in a combo of 5 packs/bag, it will cost 37,000 VND (7,400 VND/pack). If you buy in a box of 30 packs, it will cost 205,000 VND (6,883 VND/pack). Thus, it can be seen that the more quantity you buy, the better the price you will get. This pricing strategy is extremely reasonable and effective because it targets people who regularly use instant noodles, large families, and especially price-sensitive people.
Page I 8 Currently, there are many customers who are sensitive about price, and they always prefer to buy goods at a lower price than usual. Understanding customer psychology, Omachi has often launched promotions at retailers or distribution agents to satisfy customers' preferences, making customers feel they are " words" when making a purchase. Promotions can be gift way, buying in certain quantities will be given more or discounted products. Thus, applying a promotional pricing strategy not only helps Omachi increase its accessibility to customers but also increases sales significantly for the brand.
Page I 9 Masan is developing two main distribution channels: traditional distribution system and modern distribution system. Masan Consumer has effectively applied a corporate vertical marketing system (VMS) consisting of producers, wholesalers and retailers operating as a single system. For the traditional distribution channel, Masan has more than 300,000 traditional retail outlets covering from urban to rural areas (Tuoitre Online, 2021). These distribution points are tier 1 resellers, markets, grocery stores or retail stores that supply products on demand and sell without the right of redeeming.
For the modern distribution channel, Masan has the advantage of owning a modern retail system leading in scale with nearly 2,500 WinMart supermarkets and WinMart+ stores nationwide (Tuoitre Online, 2021). Besides, Masan Consumer products in general and Omachi instant noodles in particular are also sold at retail supermarkets such as BigC, Top Market, Coop Mart, Maximax system, etc. In addition, Masan also encroached on the field of e- commerce when choosing to cooperate with Alibaba - an experienced partner in the field of e-commerce, which already has a foundation, rich resources and technology strengths. Page I 10 Specifically, The CrownX - Masan's subsidiary will cooperate with Lazada - Alibaba's e- commerce platform in Southeast Asia to develop the online retail market in Vietnam.
In which, VinCommerce aims to become the leading retailer of necessities on this e- commerce platform. Moreover, on 21/09/2021, Masan officially entered the telecommunications field when completing the acquisition of 70% shares of Mobicast Joint Stock Company (Mobicast) with a total cash value of VND 295. This is considered the first step for Masan to digitize the “Point of Life”consumer ecosystem and bring an integrated product and service experience from offline to online. (Thành Trung, 2021) Masan has successfully exported its products to countries and regions around the globe, including Europe, USA, China, Australia, Korea, Japan, Thailand, Cambodia, Canada, Russia and Taiwan.
