INTRODUCTION
Established in 1996, Masan Group is known as one of the distinguished private company companies in Vietnam regarding market capitalization Its subsidiaries work in manifold fields such as consumer staples (Masan Food), financial services (Techcombank) and mining (Masan Resources) Masan Food, also called Masan Consumer, is tremendously prominent and has been operating since 2000 It was ranked 7th in the top 50 prestigious brands in Vietnam in 2016 and 2th in Consumer Goods (PV,
2016) The company produces and distributes various food products and beverage encompassing fish sauce, soy sauce, chili sauce, instant noodles, instant cereal, instant coffee and bottled beverage It also exports its products to foreign countries such as Canada, the USA, German, China, Laos, etc Among all the products, Omachi instant noodle (launched in 2007) can be considered as the most well-received product of Masan Consumer.
The aim of this report is to have a better understanding of the company’s marketing strategy compared with its competitor, Acecook (whose number one product is Hao Hao instant noodle) The report aims to accomplish 2 tasks:
Task 1: Compare ways in which organization use elements of the marketing mix (7Ps) to achieve overall business objectives
Task 2: Develop and evaluate a basic marketing plan for the company.
MAJOR FINDINGS
The difference between Omachi and Hao Hao in using elements of the marketing
1.1 Marketing mix of Omachi compared with Hao Hao
According to Philip and Gary (2011), marketing mix is the set of tactical marketing tools that the firm blends to produce the response it wants in the target market.
In the past, organizations usually followed Marketing 4Ps which includes Product, Price, Place and Promotion Recently, there is Marketing 7Ps which is the modified version of the 4Ps It is added 3 more elements: People, Process and Physical Environment In the case of Omachi instant noodle, the Marketing 7Ps will be applied to analyze the marketing strategy more specific a) Product:
Masan Food is one of the most successful companies in terms of doing campaign.
In respect to Omachi instant noodle, it is claimed that it is the latest instant noodle inVietnam made from the high-quality potato which contains none of the causes of heart disease, cancer or diabetes The process in which Omachi is produced also contributes to its phenomenal success: “Japanese technology”, AVE-ITALIA's closed and highly automated production line, European HACCP food safety standard are harmoniously implemented, assessed by the Quality Management System ISO 9001: 2000 Omachi instant noodle has various flavor, encompassing Omachi Spaghetti, Omachi spicy and sour hotpot, Omachi stewed pork rob with fruits, Omachi stewed beef sauce Despite its late entrance into the market compared to its equivalances, Omachi is still considered a triumph thanks to the company’s apprehension of consumers’ needs for food safety.Through Omachi, the company aspires to promote the merit of its products which is the lack of growth in internal heat, achieved by substituting regular ingredients for the noodle with potato The key point of this message is the focus on user health, which is well suited to brand positioning in Omachi's high-end segment
The name “Omachi” is an element that helps the brand became popular Not only does it sound catchy but it also meaningful Omachi in Japanese means “wait a little bit”. The prominent “Omachi” written in red, infuse in the customers, as the company states,
“an irresistible temptation” The circles as seen in the letters O, A, C and I in the logo represent the company’s punctilious selection in ingredients The 5 stars symbolize the product’s outstanding quality and the company’s ambition to enhance Omachi’s sales to an international level Masan Food also emphasized that the noodle, unlike its conventional counterparts, is made from potato on the product’s package Not only that, a more convenient product being cup noodle is also available for consumers.
Launched in 2000, the name of the product “Hao Hao” means goodness and perfection Acecook produces this instant noodle with the aim for a wide accessibility,especially for people with lower income can buy it The company wants to show a simple but impressive image for the consumers Moreover, Hao Hao is manufactured in accordance with Japanese standards and technology, under incessant supervision and support of experts, guaranteeing the high quality of their products Therefore, Hao Hao maintains the go-to choice for consumers regarding safety and quality ever since its entrance into the market back in 2000.
To sum up, comparing the two instant noodle products Omachi and Hao Hao, it can be seen that two products are perceived differently by consumers While Omachi manifests a high-end and attractive image, Hao Hao, in contrast, is more appealing to middle and lower classes Hao Hao also has more flavors compared to Omachi, and its cup noodle is also well received by consumers In addition, despite the message the lack of growth in internal heat, some consumers agrued that they still felt the same as other instant noodles, resulting in their neglect toward the product After the Omachi’s message, Hao Hao also launches the Hao Hao Vegetable, claiming to be healthier b) Price Omachi
From the perspective of consumers, most of them value noodles through convenience, but are also afraid to assume that instant noodles can cause heat in the body.This is also a key point for the consumer segment with a good level A challenge for brand positioning in the high-middle segment is that customers are increasingly concerned about healthy food In order to reach this segment, Omachi chose solution producing noodle from the potato to remove the consumer's fear of heat.
With the strong economic growth, the high middle segment is gradually occupying an important position in the market But it is also unwise to go into the high-end segment (at a rate of VND 3,000 / product or more) as Vietnam still has many good alternatives for high end noodles Benefit from extensive sales network such as pho, noodle soup, porridge, sticky rice, rice cake, etc (Nguyen, 2017)
Price is equally important in marketing mix including wholesale price, retail price,discount Price must be commensurate with the value received by the customer and be competitive In 2018, Omachi Potato Noodle has a retail price of 6,000 VND / package,170,000 VND / box (30 packages) is now available in almost all cities, townships and towns in Vietnam.
Instead of pricing as high as its other products, Masan's Omachi pricing is lower than Hao Hao's: Omachi 3,500 per package compared to 3,600 to 4,000 per package
Get to know 80% of Vietnamese consumers living in rural areas with low income, and Hao Hao's main customers are students Therefore, Hao Hao has offered a reasonable price: 3,600 VND / package Hao Hao has used the market penetration strategy The next year Hao Chau offers many products with the characteristic flavor at 2,500 VND/package (BachhoaXANH.com, n.d.)
In addition, Acecook has used low cost strategies Previously, materials for production of Vina Acecook almost imported 100%, in recent years the company has studied over 95% replacement materials in the country.
One of the highlights of Vina Acecook Instant Noodles is the use of modern, high- tech equipment, so it is possible to utilize all of the features of the material to produce a large number of products at the same time, high quality products at low cost.
Laboratories with modern facilities, applying quality management standards ISO 9001: 2000; ISO 14004: HACCP that create many new products, ensure quality, safety, low cost and food hygiene.
The distribution channel of Omachi is from manufacturer to retailer and then consumer Masan is also focused on consuming Omachi noodles Due to the general trend of Vietnamese consumers today, they are getting closer to modern distribution channels such as supermarkets As a result, Masan's strategy has been to distribute its products through retail channels The product is delivered to consumers only through a retailer. Specifically, Omachi is sold at retail supermarkets such as Big C, VinMart, supermarkets chain Coop Mart, Maximax system These supermarkets directly distribute products to end consumers, by giving consumers Choose your own product line and preferred This distribution channel is aimed at the end consumer, consuming in small but regular quantities.
In addition, the main distribution channels are supermarkets, markets and grocery stores Currently Omachi potato noodles are being distributed directly to more than 300 distributors and over 190,000 retailers Thus, the distribution strategy of Omachi noodles is to expand the market and the dealer, increase the number and quality of distribution channels.
The extensive distribution network and dealerships, Masan has been very skillful in combining the distribution of Omachi products with Chinsu products, which have won hearts and consumers' choice for a long time The strong distribution network of Chinsu products at over 64 provinces has contributed to the widespread distribution of Omachi.
Acecook decided to create a nationwide marketing and distribution system with more than 700 distribution outlets across the country, each with a branch office in Hanoi,
Da Nang, Can Tho , HCMC The strong development of distribution channels enabled the company to sell more and make a large profit.
Developing an essential marketing plan
In 2007, Masan joined the industry convenient food with the launch of Omachi, the high-up brand of instant noodles Omachi is the first instant noodle production in Vietnam with the noodle yarn manufactured from potato Masan Consumer's Omachi is among "Top 100 Products & Services Used & Trusted in 2017" by readers of the Vietnam Economic Times.
Vision of Masan Consumer: Recognized as Asia's leading and most successful consumer company by 2020.
Mision of Masan Consumer: Constantly create breakthrough value and as every day we improve the material and spiritual life of consumers.
Goal of Masan Consumer: Converging and nurturing aspirations and talents to find breakthroughs to enhance the benefits of our products and services to customers, therefore, customers will reward with sales, leading and sustainable growth.
Humans are assets, a human resource of competition.
Pioneering in exploration with the desire from winning.
Cooperating to develop together, harmony of interests with partners.
(Using PESTEL & 5 FORCE) Marketing strategy of Masan food at the present time:
Continue to maintain the old product line to meet market goods, avoid shortfalls as 2009 And expand its distribution network to bring products to the hands of consumers in the most convenient way.
Add a new product line is the glass noodles having real meat in order to meet the demands of customers and create value cuisine.
Put the label on the number one brand position in the premium market segment in terms of retail value
- Clear marketing strategy and detailed calculations helped Omachi make correct choice about target consumer segment.
- Corporate brand is an advantage when knowing appropriate exploitation.
- Omachi has a deployment plan synchronously and accurately from the timing of its launch, media activities in sync with the business, allocating appropriate in-progress, as well as dialogue, and intensity of communication like well suited.
- Marketing message of each product hits the target consumer expectations and expresses in a language that clear, simple and easy to receive.
- Omachi invests too much money on advertising Masan did not hesitate to spend money to implement the much-hyped campaign for Omachi noodles The TVC with the arrival of MyLinh, Bao Anh and Phuong Bich and Omachi noodles appear constantly on the major channels In 2015, Omachi even invitedNgoc Trinh to perform sexy photos in promotional campaigns for the product "Tree of Love"
- Young population and the potential market to exploit
- Instant noodles market continuously developing market and Vietnam's instant noodle consumption ranks fourth in the world
- Joining the WTO is a great opportunity to export products Omachi instant noodles overseas markets in order to expand the scope of the company
- Omachi has policy to support from the state so they can limit the competition from foreign brands
- There are more and more brands of good quality, lower prices than Omachi like Hao Hao This hits the pockets of consumers Thereby affecting their purchase decision.
According to Tuyet Nga (2017), the competition continues, espcially with the top
3 companies, which account for approximately 80% of the market share in Vietnam: Acecook, Masan Consumer and Asia Foods In recent years, owing to the fierce competition in the market, Acecook’s share has plummeted to 45%, making Omachi products more familiar with consumers of all backgrounds, increasing Masan’s share to
24 In less than 5 years, Omachi had helped propel Masan Food’s market share from 0 to21% in 2012, 24% in 2017 and now rank 2th in the instant noodle market, only after the longstanding Acecook (Nha Trang, 2017) Therefore, the marketing objective of the company in 2018 is to replace Acecook and become the company that has the most market share in Vietnam Moreover, Masan also will focus more on the convinient and quality of the products For example, while in the past, the image of an ideal bowl of noodle was only manifested on the wrapping, Masan has come close to the actualization of such image in Omachi products Nonetheless, it is inevitable that the prices are higher: up to 20.000 VND per product.
Market Segmentation: the segmentation is the first activity that analyzes and brainstorms all the potential market segments which the industry can aim in the marketing campaign Generally, each company will aim only one segment of the market meanwhile, the others will focus on different segments of the market industry
In Vietnam, the market industry of instant noodle is highly competitive Generally, the instant noodles targeted at the low-end and mid-range of the segmentation The main suppliers of instant noodles are the people who do not have a time to prepare their meal such as pupils, students, office workers Additionally, instant noodle are served in the restaurant especially in hot pot restaurants The consumers also prefer choosing the lower priced instant noodle than the high-end because they do not want spend a lot of money for this stuff For the retail store where import and store a huge number of instant food, the product they enter have the low price but have the same quality in order to maximize their profit For the ordinary consumer, with the low-income people such as student and employee, they will be interested in low-cost products At the moment, with the development of Vietnam economy, the customers are more and more using the high-end production likes instant noodles imported from Korea, Italia, Japan However, low-priced instant noodles always has high market share in the segmentation, which many Vietnamese suppliers have a target on the first and developing sustainably before they using high priced instant noodles To sum up, the price of instant noodle is based on the Vietnamese costumer’s attention in the market industry.
Market Targeting: After identifying the resources of business and segmentation, the enterprise will choose the suitable target market segment It evaluates each segment and choosing one or more of the segments to enter.
In the previous marketing strategy of Omachi, they had targeted in the mid-rage and high-end instant noodles segmentation with the prices (6.500 VND to 13.000VND).
In the updated strategy, in order to attract more consumers, the Omachi’s marketing consultant adjust their target in the instant noodle segmentation is “low-cost product”. Moreover, they can develop their product more and more sustainably and extensively the middle and high end instant noodles Omachi needs to invest in more production in order to adapt the cheap instant noodles market share In constract, Hao Hao has many productions such as My Tom Chua Cay, My Ga La Chanh, ect, Omachi has only product in this segmentation (Omachi Chua Cay) and this product is not developed In addition, the company needs to invest others productions to target on the low income people (students, employees, etc) Moreover, the cheap segment will make the brand of Omachi popular and closer to every customer
Besides with the low-price penetration, Omachi needs to expand their marker share for the middle and high-price product At the moment, the segment of market share that Omachi thrives In order to attract new customer, Omachi can be divided their segment into two directions First and foremost, Omachi needs to give their midrange products into the consumers in the low-price segment With the difference of flavors, marketing can measures likes lowering prices, making the many promotions (buying Omachi to have a chance to get the prizes), the company can attract a majority of customers from the low segment Secondly, high-priced instant noodle should be developed by the Omachi Company Based on the growth of Vietnamese people income, the customers will be interest in the high quality product with the higher price In Vietnam, there are some instant noodle imported to Japan, Korea or Italia have the high price (18.000 VND to 40.000 VND) which appeared in the high-quality and price in the instant noodle segmentation In order to compete with some foreign brands, Omachi needs to create more and more products with high quality and reasonably price.
Product Positioning: Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.
Besides Hao Hao, Omachi is the second brand in the rank of instant noodle in Vietnam The reason is Omachi does not have the promotion strategies strong as Hao Hao For example, Hao Hao spent a lot of money to charity (homeless children, disability people) Additionally, the advisement of Omachi does not attract the customer’s mind so they have the difficulty in becoming the first brand in Vietnam But with the foreign brands, Omachi still has some advantages likes closer to the customer and has the reasonably price than these brands
Summary, Omachi has reliable advantages and disadvantages in term of its popularity To develop this brand, Omachi needs the unique marketing strategy to increase their potential strengths and decrees their weaknesses
2.6 Allocation of resources (Budget and people allocation)
2.7 Evaluating and Monitoring marketing plans
APPENDIX
Besides, Masan Food also places Omachi noodles in the malls, supermarkets like MegaMarket, BigC, Coop Mart, etc The company places noodles at the entrance, promotion areas; In the instant noodle sale, hand made arrangements for their booth caught the eye of consumers, just reach for their goods.
Orders placed in the supermarket are at the fingertips of consumers This is also the strategy of the company.
Inappropriate placement of other brands.
LIST OF REFERENCES
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