TON DUC THANG UNIVERSITY FACULTY OF BUSINESS ADMINISTRATION ASIAN MARKETING MANAGEMENT MAGGI SEASONING GRANULES Giảng viên hướng dẫn: NGUYEN THI QUYNH ANH Nhóm: MAGGIE HCMC, NOVEMBER 2021 3 0 Tieu luan LIST OF MEMBERS MAGGIE No. Full name Student ID Completion (%) 1 Nguyễn Ngọc Lan Anh (leader) 719H0007 100 2 Bùi Thị Châu Trâm 719H0139 100 3 Phạm Nhật Quang 719H0107 100 4 Nguyễn Ngọc Quỳnh Như 719H0094 100 5 Võ Đại Minh Hoàng 719H0858 100 6 Lê Phạm Thanh Huyền 719H0044 100 7 Vũ Nguyễn Bình Giang 719H0027 100 2 3 0 Tieu luan INTRUCTOR’S REVIEW. 3 3 0 Tieu luan TABLE OF CONTENTS 1. Brand positioning model.
Value, Belief, Personality. Reason to Believe. TET PROMOTION PLAN. Promotion for consumers.
Promotion for customers. 62 APPENDIX 1: IMAGE INDEX. 64 APPENDIX 3: TVC SCRIPT IN VIETNAMESE. EXECUTIVE SUMMARY Maggi is a brand belonging to Nestle corporation that ranked the world's biggest food conglomerate in F&B health science businesses by Forbes with around 273,000 employees and gained 84.34 billion dollars in sales in 2020.
The brand that is a pioneer in the food industry supplying more than 300 types has more than 130 years of development history. The brand penetrated the Vietnamese market in 1935. Maggi aspires to enhance health in life and nourishing meals for more than 26 million households in VietNam with the mission statement "Good Food, Good Life." The brand products are becoming a "consumer's best friend" in their kitchen, helping them prepare and cook delicious, nutritious meals for their families every day. The Vietnamese seasoning market is currently led by three big brands, Knorr, Aji-ngon, and Maggi.
The main competitor of Maggi is Knorr, when they both target the urban market while Aji-ngon focuses on the rural market. The products of these brands all help the food to be more delicious. However, the ways of communicating the message among the three brands are different. Knorr emphasizes the statement of "full taste of deliciousness" (vị ngon trọn vị), Ajingon concentrates on "delicious be double" (vị ngon nhân đôi) and Maggi focuses on conveying "natural deliciousness" when housewives use their products for cooking.
According to a report of Euromonitor International in 2020, the overall retail sales of Maggi Vietnam reached 1263. Not only the domestic market, but Maggi Vietnam also exports its products to other markets in the region such as Thailand, the Philippines, and countries that need strict quality standards such as the US, Australia, and Japan. This leads to high growth in both volume and value of Maggi Vietnam. Maggi will still maintain marketing and sales campaigns for Tet Holiday 2022 every year despite achieving high business growth.
The brand spends 6 billion VND to implement this campaign and aims to increase sales and visibility on the media during Tet. The campaign includes many activities such as advertising, sales promotion, communication, digital marketing, and eCommerce that are implemented from November 22, 2021, to January 29, 2022. Most of the cost is focused on advertising with a short film on Tet holiday and sales promotion to promote sales in multi-distribution channels. The film's central message is that everyone should overcome their fear to feel that Tet is the most beautiful and meaningful time.
On difficult days, it is vital to choose the merriest and meaningful way to go. SITUATION ANALYSIS Vietnamese culinary culture always requires richness in flavor, and dishes are synthesized from many different ingredients. They spend a lot of time and effort creating delicious and flavorful dishes. Therefore, seasoning granules have become an indispensable product.
Nielsen said: "The demand for seasoning granules for meals in Vietnamese families is enormous: 30 million liters of soup/day, for fried dishes on weekends increased by 18 million dishes/day, seasoning in stew dishes 14 million pots/day.Market Research Company TNS in 2008, 27% of urban households were interested in spending on spices. The seasoning granules' market since 2008 (and until now) is almost entirely in the hands of four brands: Knorr (Unilever), Maggi (Nestle), Aji-ngon (Ajinomoto), and Chinsu (Masan Food). Opportunities and threats when businesses enter the seasoning granules' market: - Opportunities: a stable industry has much potential for development, so there are many opportunities to expand the market. - Threats: competition between existing and potential brands.
Most consumers are familiar with the names of long-standing brands. Market summary Market description and attributes: Spices to enhance daily meals are now considered a huge market that any family must need. For a long time, many companies have taken turns participating in the Vietnamese spice market and together conquering the taste of each Vietnamese family. Criteria to evaluate products are also unclear but mainly depend on how the advertising business creates psychology in customers.
The market needs: Vietnam consumes about 1,500 tons of seasoning powder/year, of which Maggi brand is about 400 tons, Knorr 300 tons, Ajinomoto 200 tons, and some other brands. Market trends: The popularity of brands among similar spices is not much different. A brand that organizes more promotions advertises more and costs more for eye-catching displays will sell better. Buyers are still not loyal to certain brands.
Market growth: It is expected that the demand for spices, especially those that synthesize many ingredients and are convenient to use in daily meals of families, will increase by over 30% per year. Brands that already have a foothold in the market try to launch various programs to try to capture every percentage of the market. New brands try to find gaps to squeeze in. The seasoning market in Vietnam began to form in less than 20 years but has proven to be a very attractive market with much potential.
SWOT analysis SWOT OF NESTLÉ - Maggi Strengths Weaknesses Nestlé Nestlé • Nestle is one of the top corporations • There have been periods of criticism in the field of F&B and has a long- because some products are not of standing brand name.72 billion USD • Some issues have been in R&D and owns 21 research miscommunicated by Nestle, such centers around the world. as infant formula and breast milk. • Have a large distribution system. • Owns a variety of famous brands with more than 2000 different products.
• Support the community through CSV programs that are appreciated by consumers. • Invest in digital transformation across areas such as marketing, social media, e-commerce, manufacturing, and supply chain. Also Data-driven application for marketing. Maggi Maggi • The products of Maggi are easily approached.
• The market share of Maggi is • Have advertising contracts with a lot shrinking significantly in VN. of influencers to PR, especially "Cam Cam's family." • Some false health information is created regarding the products created by social media. • The price of Maggi is a higher comparison with competitor's products. 8 3 0 Tieu luan Opportunities Threats Nestlé Nestlé • NESTLE can focus on sales through • Rising competition – Many CPG the big retail chains to promote its companies like Mondelez and products.
Unilever offer similar food and • Partnerships – Strategic alliances beverage products. It is hard for with other food and beverage giants Nestle to compete in such a situation are also an excellent opportunity to where substitute products are easily increase sales and profits. • Online shopping – Nestle has a • Government regulations and prices remarkable opportunity to boost its – Government regulations can affect e-commerce sites and online the business operations of Nestle. Additionally, the increasing costs of commodities force the company to increase the prices of its products.
It will lead to sales reduction as consumers can switch to other available brands at low costs. Maggi Maggi • The company can also focus on the • Negative word of mouth: online and chains of restaurants by offering social networks are threatened by certain customized or special offers the spread of the adverse effects of that will make it less of a Maggi seasoning granules. consumer’s daily life. • Price wars with other brands of • Maggi may target rural markets that noodles will influence sales of not given much attention.
• New flavors, packaging, and current • Increased competition could reduce consumers will help the brand the market share of Maggi. • Strict policy and food regulatory regulations may affect the activities of Maggi. Table 1 Nestle - Maggi SWOT 9 3 0 Tieu luan 2. Competition The seasoning market is full of intensely competitive brands.
Picture 1 Competitors The direct competitors of Maggi are Knorr and Aji-ngon. The market shares of these three brands, on average, are approximately the same. There are brands that are strong in one market but weak in another. Besides that, Maggi has numerous indirect competitors.
Picture 2 Maggi’s products 2. Indirect competitors Currently, there are still many people who do not use seasoning seeds. They only use salt and pepper and another basic condiment. One of the recent emerging condiment brands in the condiment sector is DH Food.
In addition, with the convenience of modern life, many people turn to ready-made seasoning packages, soup powder to replace seasoning powder. 10 3 0 Tieu luan Picture 3 Indirect Competitors 2. Direct competitors * SKUs: Maggi “3 Ngọt” seasoning Knorr tenderloin, bone Aji-ngon seasoning granules granules with pork flavor and marrow seasoning with pork flavor. Packagetype: 55g, 60g, 900g Packagetype: 50g, 170g, 400g, 900g, 2kg, 3kg.
Maggi Shiitake mushrooms Knorr shiitake Aji-ngon seasoning granules seasoning granules mushrooms seasoning with mushroom and lotus Packagetype: 60g, 200g, granules. 170g, 380g 11 3 0 Tieu luan Maggi “3 Ngọt” seasoning Aji-ngon seasoning granules granules with chicken flavor with chicken flavor. Maggi doubles Meat, Bone Marrow and natural spices seasoning granules Packtype: 175g, 400g, 900g. 12 SKUs 9 SKUs 15 SKUs Table 2 Maggi, Knorr, Aji-ngon SKUs *4Ps: Product Place Price Promotion - Adding - Distribution Maggi uses an - Maggi has used micronutrients to channel of Nestle affordable advertising as its food.
to Distributor to price strategy primary - Eye-catching Retailer to suitable for the promotional design Consumer. segment of strategy to create packaging, clear - GT: Grocery housewives awareness and for information easy store, market stall, who want to brand recall. retail store buy quality - The jingle - Follow the - MT: seasoning “Maggi Maggi”. principle: Supermarket, seeds at a - As a sales produced Convenience reasonable promotional exclusively Store.
strategy over the according to the years, it has taste of the attached various country. free goodies with its products, such as free samples. - It also used many celebrities for 12 3 0 Tieu luan brand endorsements. The users are also engaged with social media platforms like Facebook, Instagram.
- Product - Distributing - Apply a - Advertising on packaging: directly to lower pricing mass media: colorful, the supermarkets. Televisions, main color is - Distributing to - Product magazines, green. grocery stores and selling prices websites. are divided - Display a - Distributing to into several billboard on the e-commerce levels road.
websites such as according to - Promotion for lazada, shoppe, packaging. tiki, … - Modern - In the GT - Apply a - Offer promotions Japanese channel, lower pricing with many levels. Ajinomoto uses a strategy. - Aji-ngon used its The firm two-level channel.
- Product social media constantly - Placing products selling prices presence to engage invests in in supermarkets, are divided with consumers research and mini into several directly. development to supermarkets, and levels - Use press to improve product convenience according to inform about new quality, leading stores to approach packaging. improvements in to enhancing modern the quality of Aji- customers' life customers. Sale ngon products and quality.
points have good educate consumers - Packaging has locations, better about the benefits many sizes to infrastructure to of their seasoning suit each service customers. granules in customer better. - Expanding boosting can xi. distribution - TV channels to online advertisements.
Table 3 Maggi, Knorr, Aji-ngon 4Ps 13 3 0 Tieu luan 2.