asian marketing management maggi seasoning granules

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 emplo

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

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LIST OF MEMBERS MAGGIE

1 Nguyễn Ng c Lan Anh (leader) ọ 719H0007 100

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INTRUCTOR’S REVIEW

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TABLE OF CONTENTS

1 EXECUTIVE SUMMARY 6

2 SITUATION ANALYSIS 7

2.1 Market summary 7

2.2 SWOT analysis 8

2.3 Competition 10

2.3.1 Indirect competitors 10

2.3.2 Direct competitors 11

2.4 E-commerce 14

3 MARKETING STRATEGY 15

3.1 Objectives 15

3.3 Consumer insight 15

3.4 Brand positioning model 15

3.4.1 Root Strength 15

3.4.2 Competitive environment 15

3.4.3 Target 15

3.4.4 Insight 16

3.4.5 Benefits 16

3.4.6 Value, Belief, Personality 16

3.4.7 Reason to Believe 17

3.4.8 Discriminators 17

3.4.9 Core Value 17

3.5 Strategies 18

3.5.1 Product 18

3.5.2 Price 18

3.5.3 Place 19

3.5.4 Promotion 20

4 TET PROMOTION PLAN 21

4.1 Ideas 21

4.1.1 Situation 21

4.1.2 Digital Marketing 21

4.1.3 Communication 21

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4.2 Tagline 23

4.3 Sales promotion 23

4.3.1 Promotion for consumers 23

4.3.2 Promotion for customers 33

4.3.3 Merchandising 37

4.3.4 E-Commerce 39

4.4 Execution 41

4.4.1 Digital Marketing 41

4.4.2 Communication 43

4.4.3 Short movie 46

4.5 Timeline 56

REFERENCES 62

APPENDIX 1: IMAGE INDEX 64

APPENDIX 2: TABLE 64

APPENDIX 3: TVC SCRIPT IN VIETNAMESE 66

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1 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 1263.6 billion VND 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

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2 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

2.1 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

• Nestle is one of the top corporations

in the field of F&B and has a

long-standing brand name

• Annually invests 1.72 billion USD

in R&D and owns 21 research

centers around the world

• 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

Nestlé

• There have been periods of criticism because some products are not of good quality

• Some issues have been miscommunicated by Nestle, such

as infant formula and breast milk

created regarding the products created by social media

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Nestlé

the big retail chains to promote its

products

with other food and beverage giants

are also an excellent opportunity to

increase sales and profits

remarkable opportunity to boost its

e-commerce sites and online

shopping platform

Nestlé

companies like Mondelez and Unilever offer similar food and beverage products It is hard for Nestle to compete in such a situation where substitute products are easily accessible

– Government regulations can affect 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

chains of restaurants by offering

certain customized or special offers

that will make it less of a

consumer’s daily life

not given much attention

consumers will help the brand

expand

Maggi

social networks are threatened by the spread of the adverse effects of Maggi seasoning granules

noodles will influence sales of Maggi

the market share of Maggi

regulations may affect the activities

of Maggi

Table 1 Nestle - Maggi SWOT

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2.3 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

2.3.1 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

Packagetype: 50g, 170g, 400g, 900g, 1.2kg, 1.8kg

Aji-ngon seasoning granules

with pork flavor Packagetype: 55g, 60g, 170g, 400g, 900g, 2kg, 3kg

Maggi Shiitake mushrooms

seasoning granules

Packagetype: 60g, 200g,

450g

Knorr shiitake mushrooms seasoning granules

Packagetype: 50g, 170g, 380g

Aji-ngon seasoning granules

with mushroom and lotus seeds flavor Packagetype: 60g, 200g, 400g, 900g

Picture 3 Indirect Competitors

Aji-ngon seasoning granules

with chicken flavor Packagetype: 60g, 200g, 400g, 900g

Maggi doubles Meat, Bone

Marrow and natural spices

seasoning granules

Packtype: 175g, 400g, 900g.

Table 2 Maggi, Knorr, Aji-ngon SKUs

to Distributor to Retailer to Consumer

- GT: Grocery store, market stall, retail store

- MT:

Supermarket, Convenience Store

Maggi uses an affordable price strategy suitable for the segment of housewives who want to buy quality seasoning seeds at a reasonable price

- Maggi has used advertising as its primary promotional strategy to create awareness and for brand recall

- The jingle

“Maggi Maggi”

- As a salespromotional strategy over the years, it has attached various free goodies with its products, such

as free samples

- It also used many celebrities for

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brand endorsements The users are also engaged with social media platforms like Facebook, Instagram

- Distributing to grocery stores and markets

- Distributing to e-commerce websites such as lazada, shoppe, tiki, …

- Apply a lower pricing strategy

- Product selling prices are divided into several levels according to packaging

- Advertising on mass media: Televisions, magazines, websites

- Display a billboard on the road

- Promotion for each product

- Placing products

in supermarkets, mini supermarkets, and convenience stores to approach modern customers Sale points have good locations, better infrastructure to service customers

- Expanding distribution channels to online websites

- Apply a lower pricing strategy

- oduct Prselling prices are divided into several levels according to packaging

- Offer promotions with many levels

- Aji-ngon used its social media presence to engage with consumers directly

- Use press to inform about new improvements in the quality of Aji-ngon products and educate consumers about the benefits

of their seasoning granules in boosting can xi

- TV advertisements Table 3 Maggi, Knorr, Aji-ngon 4Ps

- Follow to keep track of activities

Table Campaign timeline 36

4 Lượng khách mua s m tắ ại các siêu thị tăng gấp 2-3 lần

http://www.baodongnai.com.vn/tintuc/201902/luong-khach-mua-sam- -cactai sieu-thi-tang-gap-2-3-lan-2931916/

-5 Choáng ngợp "biển người" đổ xô đi mua sắm Tết sớm, siêu thị t c ngh n trong ắ ẽnhiều gi ờ

di-mua-sam-tet-som-sieu-thi tac- -nghen-trong-nhieu-gio-c60a1222343.html

https://www.24h.com.vn/san-xuat-tieu-dung/choang-ngop-bien-nguoi-do-xo-6 Mua sắm thời dịch COVID-19 - Bài 2: Chuyển hướng đi chợ ạng mhttps://ncov.vnanet.vn/tin-tuc/mua-sam-thoi-dich-covid-19-bai-2-chuyen-huong-di-cho-mang/7d851dd8-24cf-4af4-b555-892be31b93e8

7 Mua sắm qua m ng thạ ời dịch bệnh Covid-19 ti n lệ ợi mà cũng đầ ủy r i ro https://moit.gov.vn/tin-tuc/bao-chi-voi-nganh-cong-thuong/mua-sam-qua-mang thoi- -dich-benh-covid-19-tien- -loi ma-cung-da.html

8 Thói quen mua sắm thay đổi hoàn toàn trong dịch Covid-19

https://nld.com.vn/kinh-te/thoi-quen-mua-sam-thay-doi-hoan-toancovid-19-20210624181024228.htm

-trong-dich-9 Thông tin sản phẩm hạt nêm

https://giadinhnestle.com.vn/thong- -san-pham-hat-nem-tin

10 Nestle wins world food fight Pepsico biggest in drinks with help from snack https://www.forbes.com/sites/johndobosz/2021/05/13/nestl-wins-world-food-fight-pepsico-biggest- -drinks-with-help-from-in snacks/?sh=292d8bd6269d

11 Nestle groups global sales

https://www.statista.com/statistics/268892/nestle-groups-global-sales/

12 Total number of Nestle employees worldwide

https://www.statista.com/statistics/255203/total-number- -nestle-employees-ofworldwide/#:~:text=In%202020%2C%20Nestl%C3%A9%20employed%20approximately,%2C%20headquartered%20in%20Vevey%2C%20Switzerland.&text=The%20Swiss%2Dbased%20company%20Nestl%C3%A9,manufacturer%20of%20consumer%20goods%20worldwide

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13 “Nestle in vietnam 25 years of enhancing Vietnamese lives” report

14 Royal Melbourne institute of teahnology university Viet Nam

https://www.studocu.com/vn/document/royal-melbournetechnology-university-vietnam/marketing-principles/sgsmarketing-principles-asm-3-brand-used-Maggi/16430349

-institute-of-15 Thị trường h t nem Ngoài ng t trong cay ạ ọ

https://www.brandsvietnam.com/9309-Thi-truong-hat-nem-Ngoai-ngot-trongcay

-16 https://www.Maggi.com.vn/

17 Tài liệu báo cáo Knorr

https://tailieu.vn/docview/tailieu/2012/20120731/peheo_2/vanluong_blogspot_com_knorr_027.pdf?rand=54645

18 Trends in FMCG sector December 6th 2017

http://ceecvn.org/wp-content/uploads/2017/12/Trends-in-FMCG-sector-Dec6th2017.pdf?fbclid=IwAR1JPP8ZqJFRLrADVUQ9mQgDLVSw6DfVO1neqFQmhZZv_3zFwjVl5tlRSds