group assignment hao hao marketing case study

Acecook Vietnam Company has producedmany kinds of instant noodles, including “Hao Hao” instant noodles.. Instant noodles are acultural symbol in Japan, and when they entered Vietnam, the

Group Assignment

Hao Hao

MARKETING CASE STUDY

MARKETING PRINCIPLES

LECTURER: BUI THI THU HUYEN

Group 3

DATE: 23/10/2023 – FALL 2023

TABLE OF CONTENT

I INTRODUCTION 3

II PROFILE OF ACECOOK STOCK JOINT COMPANY 4

1 History of formation and development. _4

2 Market share in domestic and international markets. _5

2.1 Domestic market 5 2.2 International market 5

3 Vision and mission 5

3.1 Vision _5 3.2 Mission _5

4 SWOT analysis 6 III MARKETING STRATEGY OF ACCECOOK JOINT TOCK 7

1. Product Strategy _7

2. Pricing Strategy _7

3. Distribution Strategy _8

4. Advertising Marketing Strategy _8

IV CHALLENGES OF ACECOOK IN THE MARKET _9

1 Negative information communication _9

2 Unhealthy competition 9

V PROPOSING MARKETING SOLUTIONS _10

1. Product Strategy _10

2. Promotion Strategy 10

VI Conclusion _10

I INTRODUCTION

Today, in the era of industrialization and modernization, people are racing against time leading to a faster life During this period, people need to search for foods that satisfy these factors: cheap, safe, delicious, and convenient Acecook Vietnam Company has produced many kinds of instant noodles, including “Hao Hao” instant noodles Instant noodles are a cultural symbol in Japan, and when they entered Vietnam, they researched the tastes and preferences of Vietnamese people They combined modern Japanese production technologies with Vietnamese food tastes and produced products that suit the taste of Vietnamese people Thanks to the constant effort of the brand, “Hao Hao” dominated the market of instant noodles with the features of intense flavor, low price, quality, and convenience products To achieve these accomplishments today, marketing strategy is one of the important factors that bring success and high efficiency

II PROFILE OF ACECOOK STOCK JOINT COMPANY

1 History of formation and development.

2 Market share in domestic and international markets.

2.1 Domestic market

In Vietnam, there are currently about 50 companies producing instant noodles, including both domestic and foreign enterprises However, the majority of the market is comprised of a few businesses, including Masan Group; Asia Foods Joint Stock Company (Asiafoods), and Acecook Vietnam Joint Stock Company

According to Retail Data statistics (data as of the first 9 months of 2020), Acecook Vietnam holds a 35.4% market share in revenue In 2019, Hao Hao was one of four instant noodle brands in the top 10 food brands most voted by consumers in rural areas and is the only instant noodle brand voted by urban consumers

2.2 International market

Acecook also strives to bring Hao Hao to

more than 47 countries and territories around the

world Up to now, Acecook Vietnam is proud to have

brought its products around the world, to many

different markets including the USA, UK, France,

Germany, Netherlands, Sweden, and Canada, In

2019, Acecook's international sales accounted for

over 50% of its total sales

3 Vision and missions

3.1 Vision

“To become a leading manufacturer of foodstuffs in Vietnam whose management capacity is commensurate with globalization.” Acecook Vietnam will develop into a manufacturer of synthetic foods, expand into an export destination around the world, and become a global Vina-Acecook, actively participating in domestic and foreign exhibitions and fairs , conducting advertising activities for consumers around the world to trust 3.2 Missions

“Providing high-quality products/services HEALTH – SAFETY – PEACE OF MIND for customers” "Providing high-quality HEALTH - SAFETY - SECURITY products/services for customers" Acecook has a mission to bring consumers products of high quality and safe for human health Besides, the core value of the company is “Cook happiness” with three “happy” Firstly, “Happy customers”, Acecook Vietnam will always

strive to make customers and users of Acecook products feel satisfied Therefore, the company will always produce and provide delicious, quality, safe products, ensuring to meet customer needs

the use of safe materials, using advanced Japanese production techniques, machinery, and equipment to ensure quality, and strictly managing the production process and monitoring the distribution and management of products on the market, ensuring that quality is not adversely affected

Secondly, “Happy employees”, Acecook Vietnam always strives to make Acecook employees and their families feel happy Therefore, the company will always try to create a good welfare regime, and a good working environment, and care about the work and life of employees

Ultimately, “Happy society”, Acecook Vietnam always strives to bring happiness to the entire society The company always contributes to the development of the instant noodle industry in particular and the Vietnamese economy in general, supporting suppliers to improve quality In addition, the company also actively sponsors and organizes charity and environmental activities to contribute to building a better Vietnamese society

4 SWOT analysis

STRENGTHS WEAKNESSES

- Has a large position in the market

- Strong financial resources

- Modern technology, wire advanced

production transmission

- There is high foreign investment capital

- Have a good relationship with the media

and the community

- Haven't made a difference or stood out for the company's products with competitors' products

- There is no diversity in the sample packaging code

- Nutritional value is not high

OPPORTUNITIES THREATS

- The COVID-19 pandemic, which

increases consumer potential, increases

consumption

- Vietnam joins WTO, this is a development

opportunity to help Hao Hao to other

countries in the world more favorably than

before

- Consumers increasingly care about the

quality of products and above all, energy's

own health

- Competition is increasing Many strong competitors enter the market Competitors abroad also want to enter the market

- The price of input materials increases

- Health-conscious consumers will have more difficulty choosing products

- Industry trends change continuously

III MARKETING STRATEGY OF ACCECOOK JOINT TOCK

1 Product Strategy

We are all familiar with Hao Hao, the brand name for Vietnamese noodles It’s easy to make an impression - A product that many people know and trust, the noodles are chewy and fragrant characteristic flavor, and are widely distributed… With "Packaging like a silent salesman" Hao Hao's spicy and sour instant noodles packaging is very colorful, outstanding, and eye-catching

Now, I will mention some background information about Hao Hao noodles Firstly, Hao Hao's spicy and sour shrimp noodles are an instant noodle product Secondly, input materials are selected and strictly evaluated according to the following 3 criteria: Establishing raw material standards with full biomechanical and biochemical properties (sensory, physical and chemical, microbiological, metallic, etc.), meeting food hygiene and safety standards according to domestic and international food laws Thirdly, Ingredients in noodles: Noodles: Wheat flour, shortening oil, tapioca starch, salt, fish extract, stabilizer, natural color: turmeric, synthetic sweetener, antioxidants Lastly, Soup: Refined oil, salt,

sugar, monosodium glutamate, shrimp powder, spices (pepper, chili, garlic, herbs), dried green onions, citric acid, natural color: cashew (E160b), synthetic sweetener (E951), antioxidant (E320, E321)

nutritional value of food So, I will give information about it including energy value: 350kcal, Fat: 13.0g, Carbohydrates: 51.4g, Protein: 6.9g, and Weight: 75g In addition, Hao Hao is delicious - fast

- cheap; it can be used anytime, anywhere Instant noodles - delicious food of all time Therefore, it is fast food suitable for all ages, not greasy, delicious, suitable for taste, healthy and cheap…

Regarding to Package, Hao Hao is spicy, and sour shrimp noodles are protected by a high-standard packaging and cardboard box in the quantity of 30 packs Furthermore, the packaging of Hao Hao spicy and sour shrimp noodles is outstanding and eye-catching with red as the main theme The highlight of the noodle packaging is the symbolic noodle image that looks very attractive

Finally, the label plays also an important in developing a product In terms of the Front of Hao Hao, the Acecook logo is on the top left, and the product name is printed in the middle of the prominent packaging while the Back: Contains brief product descriptions emphasizing Japanese technology There is also other information such as place of production, time of production, expiration date, ingredients, nutritional value of the product, and how to use the product

2 Pricing Strategy

Hao Hao Noodles employs various pricing strategies to meet its business objectives One such strategy is cost-plus pricing, which involves adding a fixed percentage to the cost of goods sold (COGS) to generate profit While this method can cover production and marketing costs, it does not take into account the customer's willingness to pay or market competition Another strategy used by Hao

Hao Noodles is competitive

pricing This involves setting

prices based on the cost of

similar products offered by

competitors, rather than

target profit or cost The goal

of this strategy is to match or

beat competitors' prices and

gain market share Though

this approach can attract

price-sensitive customers and

boost sales volume, it can also lead to price wars, lower profit margins, and reduced brand loyalty To influence customers' perceptions of value and price, Hao Hao Noodles also employs psychological pricing strategies like odd pricing and bundle pricing Odd pricing

product is cheaper than it is Bundle pricing involves offering two or more products together

at a lower price than if they were sold separately, encouraging customers to buy more products and increasing customer satisfaction Hao Hao Noodles caters to different customer segments, such as low-income households, students, workers, and travelers by using a combination of these pricing strategies The company adjusts its prices according to market conditions, such as demand, supply, seasonality, and inflation Through this approach, Hao Hao Noodles aims to maximize sales and profits while maintaining its brand image and customer loyalty

3 Place Strategy

Now, I will talk about the place strategy Before I talk about it, I will give an overview

of Hao Hao's company The company has 7 branches with more than 300 agents nationwide and exported to more than 40 countries Each region has a branch office such as in Hanoi, Can Tho, Da Nang, and Ho Chi Minh City

The next main part is channel distribution First and foremost, Hao Hao Noodles has chosen many different forms of distribution channels to bring products to consumers but mainly distributes through the wholesale agent system Next, Businesses choose many wholesalers (Level 1 agents) and the task of these wholesalers is to distribute to lower-level wholesalers and then cover retail stores When customers have a need, retail stores will notify wholesalers and this business will provide products in the form of a final sale However, in recent years, there have been many competitors, so Hao Hao spicy and sour instant noodles have focused more on direct distribution channels and selling online, which means building more sales and display stores—product introduction In addition, distribution channels: Manufacturer -> Retailer -> Consumer The Acecook company also sells Hao Hao noodles with spicy and sour shrimp Due to today's trends, people are getting closer and closer to modern distribution channels such as supermarkets and buffet stores Therefore, Hao Hao spicy and sour shrimp is sold at supermarkets such as Big C, Do Mart supermarket chain, Maximax system, These supermarkets distribute products directly to consumers, by allowing consumers to choose their own favorite and suitable products and product lines This distribution channel focuses on the final consumer, consuming in small quantities but regularly

4 Promotion Strategy

Hao Hao's marketing strategy is centered on serving Vietnamese consumers who are looking for affordable and convenient food options It also targets Vietnamese expatriates and foreigners

delicious instant noodle brand that caters to the diverse tastes and preferences of Vietnamese consumers It also represents Vietnamese culture and culinary heritage in the international market Hao Hao offers a wide range of products that cater to different segments of the market It innovates and develops new products based on consumer feedback and market trends It also ensures its products meet high standards of quality, safety, and hygiene The brand sets its prices competitively, reflecting its value proposition and appealing to its target market It also offers discounts and promotions to attract and retain customers Hao Hao distributes its products through a variety of channels, including supermarkets, convenience stores, online platforms, and export agents Its distribution network is strong and covers all regions of Vietnam, as well as overseas markets To promote its brand and increase brand awareness and loyalty, Hao Hao uses various methods such as advertising media, public relations activities, and sales promotion techniques Overall, Hao Hao's marketing strategy has helped it become a leader in the instant noodle market in Vietnam and expand its presence globally

IV CHALLENGES OF ACECOOK IN THE MARKET

1 Negative information communication

Since June 2015, unreputable electronic newspapers (please allow me to call it here ‘titled newspaper') have regularly posted and copied information that has not identified the origin and accuracy of instant noodles such

as instant noodles are malnourished products, containing toxic substances (oxalic acid, transfat, TQBH ), which are the causative agents of dangerous diseases (cancer, allergies ) and recommend consumers to limit or should not use Instant noodle products aim

to attract attention and increase views for the newspaper page Article titles such as "The serious harms of instant noodles to health" "The harms of eating a lot of shrimp noodles", and

“Eating shrimp noodles with cancer" can all make consumers afraid and insecure, thereby seriously affecting the instant noodle industry