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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4.2.Tagline 23

4.3 Sales promotion 23

4.3.1 Promotion for consumers 23

4.3.2 Promotion for customers 33

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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

• 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

shrinking significantly in VN.

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

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

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2.3.2 Direct competitors * SKUs:

Maggi “3 Ngọt” seasoning granules with pork flavorPackagetype: 200g, 450g, 900g

Knorr tenderloin, bone and marrow seasoning granules

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

12 Maggi “3 Ngọt” seasoning

granules with chicken flavorPackagetype: 200g, 450g, 900g

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

*4Ps:

- Adding micronutrients to food - Eye-catching design packaging, clear information easy to understand - Follow the principle: produced exclusively according to the taste of the country

- Distribution channel of Nestle 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 - Product

packaging: colorful, the main color is green

- Distributing directly to supermarkets - 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 - Modern

Japanese technology The firm constantly invests in research and development to improve product quality, leading to enhancing customers' life quality - Packaging has many sizes to suit each customer better

- In the GT channel, Ajinomoto uses a two-level channel - 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 6 Mua sắm thời dịch COVID-19 - Bài 2: Chuyển hướng đi chợ ạng m

https://www.24h.com.vn/san-xuat-tieu-dung/choang-ngop-bien-nguoi-do-xo-https://ncov.vnanet.vn/tin-tuc/mua-sam-thoi-dich-covidhuong-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

-19-bai-2-chuyen-https://moit.gov.vn/tin-tuc/bao-chi-voi-nganh-cong-thuong/mua-sammang thoi- -dich-benh-covid-19-tien- -loi ma-cung-da.html

-qua-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-tinMaggi.html?fbclid=IwAR0yFal3Jzs7Ek-

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=292d8bd6269d11 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.

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

-16 https://www.Maggi.com.vn/17 Tài liệu báo cáo Knorr

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

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Picture 1 Competitors 10

Picture 2 Maggi’s products 10

Picture 3 Indirect Competitors 11

Picture 4 Noticeability of POSM and impact on purchase 22

Picture 5 Noticeability of POSM and Brand recognition 22

Picture 6 Combo 1 23

Picture 7 Combo 2 24

Picture 8 Combo grocery stores, retailers 25

Picture 9 POSMs Maggi Frame 36

Picture 10 POSMs Set in supermarkets 37

Picture 11 POSMs Set in Bach hoa xanh Stores 37

Picture 12 POSMs Display islands 38

Picture 13 Gondola end 38

Picture 14 Combo gift 1 39

Picture 15 Combo gift 2 39

Picture 16 Combo discount 1 40

Picture 17 Combo discount 2 40

Picture 18 Ti p thế ị và Gia Đình Magazine’s target audience 44

Picture 19 Print ads 45

Picture 20 Illustrated billboard 45

Picture 21 TVC scenes 53

APPENDIX 2: TABLE Table 1 Nestle - Maggi SWOT 9

Table 2 Maggi, Knorr, Aji-ngon SKUs 12

Table 3 Maggi, Knorr, Aji-ngon 4Ps 13

Table 4 Lazada comparison 14

Table 5 Shopee comparison 14

Table 6 Tiki comparison 14

Table 7 Maggi seasoning products price list 19

Table 8 Combo 1 gift cost 23

Table 9 Combo 2 gift cost 24

Table 10 Combo grocery stores, retailers gift cost 25

Table 11 Scratch ticket prize details 27

Table 12 Scratch ticket prize cost 28

Table 13 Scratch ticket cost 28

Table 14 Prize distribution in the South region (South East, Mekong Delta) 29

Table 15 Prize distribution in the North area (Northern Northern Midlands, Red River Delta) 30

Table 16 Prize distribution in the Central Region North Central Coast and Southern Coast, Central Highlands) 31

Table 17 POSMs for consumers cost and details 33

Table 18 Products included in the display contest 34

Table 19 Scoring criteria for the creative displays 35

Table 20 Display contest prize detail 36

Table 21 E-commerce gift cost 39

Table 22 Combo discount 1 cost 40