General introduction Masan Consumer company, whose full name is Masan Consumer Goods Joint Stock Company, is the company ranked 2nd in the consumer goods industry 7th in the list of Top
COMPANY OVERVIEW
General introduction
Masan Consumer company, whose full name is Masan Consumer Goods Joint Stock Company, is the company ranked 2nd in the consumer goods industry (7th in the list of Top 50 most valuable brands in Vietnam 2016)
Masan Consumer manufactures and distributes major food and beverage products including soy sauce, fish sauce, chili sauce, instant noodles, instant coffee, instant cereals, and bottled beverages In addition, the company has also recently expanded its business in the fields of packaging technology, food processing, and information technology (Trí, 2016)
The company has exported its products to many countries around the world such as the United States, Canada, France, the Czech Republic, Poland, Germany, Japan, Russia,
History of formation and development
• Masan started the food industry in 1996 when he established Viet Tien Technology - Industry - Trade JSC, specializing in spices
• In 2000, Minh Viet Import-Export and Industry Joint Stock Company was established, specializing in trade and import-export
• In 2002, the first product Chin-su Soy Sauce was introduced to the market
• In 2003, Viet Tien Company and Minh Viet Company were merged, renamed Ma San Industry - Trade Joint Stock Company, and launched Chin-su high-class fish sauce products on the market
• In 2007, the company introduced a range of products such as Tam Thai Tu soy sauce, Nam Ngu fish sauce, and Omachi instant noodles
• In 2008, Masan Industry - Trade Joint Stock Company changed its name to Masan Food Joint Stock Company (Masan Food)
• In 2011, Masan Food Joint Stock Company changed its name to Masan Consumer Goods Joint Stock Company (Masan Consumer)
• In 2011, Masan Consumer acquired a controlling stake in Vinacafé Bien Hoa Joint Stock Company, marking the company's expansion beyond the food sector
• At the end of 2015, Masan signed a strategic partnership with Singha Asia Holdings Pte., Ltd (Thailand), expanding the business market to ASEAN countries.
Products of Masan
Masan Group's products are extremely diverse and multi-industry because the group is involved in 5 business fields including retail, food & beverage, branded meats, financial services and highly technical materials However, the report focuses on developing a sales plan for products in the FMCG industry which is managed by Masan Consumer Holdings, so the team only focuses on data related to this field in this part of the report
Products name Brand name Products image
SWOT Analyis
• The Board of Directors has the capacity, vision and strategy to develop the company
• The staffs have good knowledge of the domestic market, a lot of experience in the international market with foreign partners
• Many brands quickly gain market share thanks to strong brand building
• A leader in the condiments, convenience foods and coffee industries
• Extensive distribution and agent system
• The company owns the most modern Research and
• Spending too much budget on promotional activities and product development costs
• The large ecosystem leads to a complex and difficult apparatus to manage
• The company has not been able to adapt to unforeseen changes in business activities in the industry or in economic conditions, which greatly affects the strategies of the company
"closed", the management is strict
• Saving cost because Masan performs 2 roles: supplier and retailer
• The company takes benefit from preferential export policies due to joining to WTO
• Demand for export consumer goods is increasing due to the increase of population and income
• Gaining more customer segments based on the acquisition of prestigious brands such as Phuc Long, Vinmart,
• Fierce competition with domestic and foreign brands
• Customer standards rise higher: good quality, right price, clean ingredients, well stated ingredients
• Competitive pressure in attracting labor when there are many potential competitors and foreign big brands in the market
• The exchange rate between Vietnam dong and other foreign currencies is tending to increase along with inflation leading to higher import prices of production materials.
ANALYSIS OF BUSINESS ENVIRONMENT
Macro Environment (PEST)
The policies relating to institutional markets and legislation can have an impact on the viability and development of any industry These are factors that affect all enterprises in a territorial territory
Stabilization: This feature is very significant The firm must abide by this guideline of institutional elements of a region they want to penetrate It is difficult to draw investors into a national economy if the government does not have a policy with sufficient and transparent criteria Without the instability and conflict in government policy, the stability of the political conflict's constituent parts fosters favorable conditions for commercial operation As the government promotes economic growth through public spending and by encouraging investment and exports, the outlook for Vietnamese consumers is favorable
Tax policy: have an impact on the company's revenue and profit, including consumption tax and income tax A transparent tax system and clear tax policies are advantageous for business investments Additionally, assistance from the government with tax policy will be a favorable prerequisite for businesses to enter the Vietnam market (MASAN, 2019)
Vietnam’s GDP of 2022 is the highest number in the period from 2011 to 2022, 408,95 billion U.S dollars
The macro-economy was basically stable, inflation was controlled, economic growth recovered positively, major balances of the economy were ensured in difficult conditions The average consumer price index (CPI) in 9 months increased by 2.73%, estimated at about 4% for the whole year The money market, interest rates and exchange rates are relatively stable; credit growth in 9 months reached reached 8.83%; estimated at about 8% for the whole year (the target is 6 - 6.5%) Agricultural growth reached 2.99%, industry and construction reached 9.44%, services reached 10.57%; The service sector has grown vibrant again thanks to the control of the epidemic The economic recovery took place quite evenly among localities, in which many localities achieved high growth rates (MASAN, 2019)
Cultural and social values are characteristics of consumers in each nation or territory, and these traits are shared by all of them Vietnam is the 13th most populous nation in the world, with an estimated population of about 86 million Vietnam's population has been steadily increasing since the 1990s as a result of a marked improvement in living conditions, and it is anticipated to grow by one year (MASAN, 2019)
If a company wants to thrive in a cutthroat industry, this is one of the important elements to consider These effects are primarily caused by trends in technical progress, the rate at which new technologies and products are developed, the capacity for technology transfer, and governmental policies that encourage technology Government support for technological advancement is a long-term strategy, and in the food industry in particular, this is a primary priority for businesses and organizations (MASAN, 2019)
Micro Environment
Ten years ago, consumers only interacted with Masan products in the kitchen, in the store With the new ecosystem, Masan wants to create interactions anytime, anywhere, more suitable for the Vietnamese market with a large number of Gen Z consumers, young customers who are willing to spend but prioritize new experiences and convenience-oriented shopping channels
Masan made a major transformation in 2019, when it purchased the Vinmart store system from Vingroup By integrating the retail channel, Masan was progressively able to transition from the role of a manufacturer to the FMCG ecosystem The integration of Phuc Long beverage, Phano Mart pharmaceutical, Techcombank banking service, and Mobicast (Reddi) telecommunications service into Winmart, Winmart+, and "closed" supermarkets is the next step in Masan's ongoing expansion of the value chain This is done in accordance with the mini-mall model Customers can find everything they need, including basics, financial services, healthcare, and (MASAN, 2019)
Masan's top competitors include Nestle, Unilever, Kraft Heinz, Ajinomoto, Acecook, Uniben, Nam Duong, Trung Nguyen, Nutifood, Vissan, Coca Cola, Suntory PepsiCo Vietnam, Tan Hiep Phat (MASAN, 2019)
Masan Group has strict requirements for the raw materials it uses, and they ask both local and foreign suppliers to show certificates of food safety, hygiene, animal quarantine, and sound agricultural practices (mof.gov.vn, 2022)
BUSINESS ACTIVITIES
Business strategy
Masan Consumer aspires to be the premier consumer firm in Vietnam by concentrating on four key strategic areas:
In selecting "where to play," Masan Consumer employs a strategic strategy Among their sector selection criteria are:
- Food and beverage categories with a substantial market opportunity and a market size of at least $500 million
- Markets in which they can create a premium brand while generating high margins (average gross margins of at least 30%)
- Competitive environments in which the market is dominated by state-owned firms or is fragmented with a clear route to consolidation
- Markets where they may provide value by concentrating on local flavor and wellness
- Our execution plan aims to: Bring a differentiated product to market
- Create a premium brand and promote it aggressively
- Utilize our broad distribution network and premium brand equity to enter mass market areas
- Employ and motivate a world-class experienced management team by making them business owners
Masan follows a strict budgetary plan:
- Aim for 30%+ gross margins, which will allow us to retain our strong marketing approach and spend in acquiring and consolidating company platforms in order to achieve long-term leadership
- Deploy minimal capital expenditure - for new categories, we have an asset light entry approach in order to focus on delivering a 25%+ ROE
- Use a "cash on delivery" methodology to optimize our working capital situation and assist fund our expansion
Masan is focused on expanding this platform in order to become a market leader They focus on transferring customers to premium brands and influencing consumer behavior to increase consumption in their existing categories In the same time, they penetrate both high growth neighboring categories and new appealing categories that meet their sector strategy through inorganic expansion, using premium brand halo and an underleveraged platform (Consumer, 2022)
Masan Consumer R&D, Masan's in-house research and development team, consists of roughly 75 individuals tasked with enhancing the range and quality of their goods In order to create products that satisfy Vietnamese consumers' needs, the R&D team collaborates closely with the marketing team Examples include the Omachi noodles with spaghetti sauce that were introduced in 2010 to target customers in the premium segment and the B'sfast congee with real chicken and mushroom that was introduced in 2013 to offer consumers a full breakfast solution
By offering high value and superior quality goods, Masan R&D hopes to improve Masan Consumer's competitive position and reputation as one of the most distinctive and successful food companies in Southeast Asia
Numerous successful innovations by Masan Consumer, including the following, serve as evidence of its capacity to innovate:
- "No-urea” Nam Ngu sauce
- "Zero trans-fat oil” and "No color chemical dyes” for Tien Vua noodles
- "Chewy noodles strand" for Kokomi
- "Real chicken & mushroom retort pouch" for B'fast
One of Vietnam's most cutting-edge R&D facilities is Masan The R&D section may introduce about 30 new items a year and has created seven novel formulae that were previously unheard of in the seasoning processing sector (Consumer, 2022)
Figure 2: Short-term targets (Source: masangroup.com)
Figure 3: 2010 Awards & Recognition (Source: masangroup.com)
The marketing and branding methods used by Masan have been crucial to the company's success Their marketing department had more than 80 full-time personnel as of December 31, 2012, split into two divisions: brand development and market operations
Masan has embraced an umbrella brand approach to connect with a variety of consumer demographics In order to satisfy the needs of consumers with varying levels of wealth, each of the main product lines has both a premium brand (Chin- su brand for sauces, the Omachi brand for instant noodles, and Vinacafe for instant coffee) and a mass-market brand (Nam Ngu brand and Tam Thai Tu for sauces, Sagami and Kokomi for noodles, and Wake Up and Phinn for instant coffee) The addition of product variations enhances our ability to market to customers with diverse buying preferences and geographic locations
They zealously protect their brands against third parties' resale and violation Masan uses their distribution network to keep an eye on the goods produced by their rivals If they become aware of any significant trademark infringement, they will take all necessary precautions, including legal action, to safeguard their brand's reputation
Masan uses television commercials as a main marketing tool to reach its target audience These 15 or 30 second promos highlight the goods' health advantages, deliciousness, and affordability Their marketing division assesses the amount of commercial spots needed to promote their products effectively with media agencies, and then arranges for the acquisition of the appropriate time slots across the country Masan Consumer has more than 52,696 television advertisement spots in 2012, with each viewer seeing them an average of 507 times They also engage in a range of other marketing strategies, such as outdoor advertising campaigns and in-store promotions
The success of Masan has been greatly influenced by its product management strategy They oversee their present brand portfolio by target market and, within each product group, per product segment As an illustration of their shared branding approach, Chin-su serves as an umbrella brand for premium soy, fish, and chili sauces, while Omachi serves as an umbrella brand for instant noodles In addition to maximizing brand value, this creates economies of scale in advertising and promotion and builds a reputation for high quality throughout their product lines (Masan, masangroup, 2022)
Supply chain & distribution
The supply chain of Masan is divided into five major divisions: purchasing, planning, logistics, warehousing, and production
Among Masan's primary raw materials were:
• Anchovies, dried vegetables, soy sauce, chiles, and different flavorings and spices for sauces
• Flour, palm oil, dried veggies, and different flavorings and spices for instant noodles
• Coffee bean, soluble coffee, sugar, creamers, and numerous flavorings and spices are used to make instant coffee
• Paper labels, carton boxes, polypropylene or paper-based cups/bowls, plastic bags, and glasses are all key components of the production cost
At Masan’s headquarter in Ho Chi Minh City, their purchasing section is in charge of sourcing and negotiating with suppliers for all of our raw materials Their subsidiaries then engage into the agreements negotiated by the purchasing team with our suppliers Masan's purchasing team is always in charge of identifying and keeping the most reputable vendors to satisfy our needs To maintain consistency and high quality, the department presently procures raw materials from approximately 160 vendors through long-term contracts
Suppliers having a lengthy track record of reliability with us are called "certified suppliers" and will be retained on long-term contracts This technique reduces the risk of working with suppliers that underperform by missing deliveries, offering goods of varying quality or that are not in accordance with requirements, or abruptly raising costs
Masan presently has six manufacturing plants in Binh Duong, Tan Binh, Phu Quoc, Hai Duong, Dong Nai, and Binh Thuan These facilities enable us to produce goods with consistent flavor and texture, enhancing the quality of our brands Masan expanded the Binh Duong factory to handle the growth in sales volume that they have seen since 2007, and they anticipate that it will become our primary manufacturing facility The first phase of this development, which was finished in
2010, was devoted to automating the fish sauce production line The third phase of development, which will contain our automatic soy sauce and chili sauce production lines, is planned to be completed by early 2014
Masan recently opened the new Vinacafe Bien Hoa location This Long Thanh Industrial Park facility will enhance Vinacafe's instant coffee production capacity by 3,200MT per year
Masan operates five distribution facilities strategically positioned in the provinces of Binh Duong, Tan Binh, Da Nang, Hung Yen, and Hai Duong to offer items to our distributors within 24 hours after placing an order In 2012, these distribution locations combined handled over 800,000 pallets
The map and table below depict the locations of distribution facilities throughout Vietnam, as well as a description of the number of distributors, salespeople, and places of sale by area as of December 31, 2012 (Masan, masangroup, 2022)
Figure 4: Delivery in Vietnam (Source: masangroup.com)
Masan has created a nationwide distribution network that spans all 64 provinces of Vietnam and includes more than 164,000 places of sale All of the major modern trade channels, such as supermarkets, hypermarkets, and convenience stores, as well as the conventional, mostly independent local operators, are represented in their network By the end of 2012, they had developed exclusive ties to 180 distributors and 1,628 hardworking sales representatives throughout Vietnam
Growth of Points of Sale (POS)
Masan runs five distribution facilities that are well situated in the provinces of Binh Duong, Tan Binh, Da Nang, Hung Yen, and Hai Duong This allows us to deliver items to our distributors within 24 hours after receiving an order Over 800,000 pallets were handled by these distribution hubs combined in 2012 They offer regional exclusivity to their distributors in order to help them across Vietnam, and they collaborate closely with them to ensure the efficiency of their sales force and efficient coordination
A group of 188 sales supervisors oversee the activities of the distributors and sales representatives for their goods They gather sales data and meet daily to report back to us on the effectiveness of our distribution network If distributors and salespeople reach and surpass their quotas, they will get incentives (Masan, masangroup, 2022)
Figure 5: Distribution (Source: Masan.com)
Revenue
In 2021, Masan Group's earnings increases The company's thorough review of its unaudited management accounts for the third quarter and fiscal year 2021 released on Wednesday revealed that the contribution of consumer companies' revenue in 2021—minus that from feed and Masan High-Tech Materials—was 68 percent Core NPAT Pre-MI is anticipated to expand by 32 to 84 percent from 3.8 trillion VND in 2021 to be between 5 trillion VND and 7 trillion VND (excluding one- time gains/losses and the feed segment)
Masan reported consolidated net revenue of 88.6 trillion VND in 2021, an increase of 14.8% yearly In the most recent quarter, net revenue increased by 10 annually to 23.8 trillion VND EBITDA, or earnings before interest, taxes, depreciation, and amortization, increased by over 16.4 trillion VND (58.1%) year over year, mostly due to the CrownX (TCX), which saw EBITDA rise by 72.9% Compared to 1.23 trillion VND in 2020, reported core net profit after tax post-minority interest (NPAT Post-MI) increased by 593.9 percent to 8.6 billion VND Despite COVID-
19 having a negative influence on shop development, innovation launches, supply chain, and manufacturing operations helped Masan Consumer Holdings' (MCH) integrated consumer-retail platform, CrownX (TCX), increase its net sales last year by 6.9% to reach 58 trillion VND In the most recent quarter, net sales increased 12.6 percent, indicating increasing momentum going into 2022 Separately, WCM generated 30.9 trillion VND in net sales last year, a decrease of 0.3% from the previous year despite the network rationalization in 2020 that resulted in 668 fewer retail locations starting in 2021 than at the beginning of 2020 WCM opened 387 net new mini-stores in 2021 despite COVID-19 restricting store growth
The meat division of Masan MEATLife (MML) generated 4.5 trillion VND in net revenue in 2021, an increase of 88.6% from 2.4 trillion VND in FY2020 20 percent of the capacity of factories that process pork is now being used The segment turns profitable at a 26 percent utilization rate, which is anticipated to happen this year Branded pork anticipates generating net sales of between 5 trillion and 6.5 trillion VND, an increase of 11% to 45% year over year (excluding feed segment) Masan High-Tech Materials (MHT), on the other hand, produced record net revenue of 13.6 trillion VND in 2021, EBITDA of 3.1 trillion VND, and
NPAT Post-MI of 196 billion VND, all of which were fueled by high demand and pricing for its goods The outcomes for MHT support both its choice to buy the worldwide tungsten business from H.C Starck and its aspirations to enter the mid- stream hi-tech chemicals market (VNA, 2021)
Figure 7: Net revenue of Masan group from 2014 to 2021 (Source: statista.com)
In 2022, the largest profit year in Masan Group history, earnings multiplied seven times Unaudited management accounts for the first half of 2022 from Masan Group Corporation were revealed on August 1 and showed a 123 percent increase in earnings
The first half of 2022 saw massive earnings for Masan Group The deconsolidation of the feed business was mostly to blame for the 12.5% fall in Masan's consolidated net revenue to $1.54 billion in H1 2022 from $1.76 billion in H1 2021 In the first half of 2022, net sales increased by 9.1% on-year (excluding 2021), led by expansion at Masan High-Tech Materials (MHT) and high-single digit expansion at Masan Consumer Holdings (MCH) (Masan, Vir, 2022)
The integrated consumer-retail ecosystem known as The CrownX (TCX), developed by Masan and incorporating WinCommerce (WCM) and MCH, saw a 2.2% year-over-year increase in net sales to $1.11 billion in the first half of 2022 Despite a difficult climate for inflation, TCX produced $136.14 million in
EBITDA in 1H2022, up 11.7%, and $49.2 million in net profit after tax before minority interests, up 68.7% year over year Even though WCM's sales decreased by 1.1% to $612.6 million, its EBITDA increased by 5.7% year over year to $13.5 million With five supermarkets (WinMart) and 301 minimarkets (WinMart+) going up in the first half of 2022, WCM will have added to its total of 127 WinMart and 2,873 WinMart+ sites, increasing its store count year to date
WinMart outlets inside Vincom malls had an increase in revenues of 2% year over year In H1 2022 and Q2 2022, respectively, WinMart revenue increased by 1.4% and 9.9% on-year after adjusting for the high base impact
The H1 2022 results for MCH were similarly strong, with net sales of $528.68 million, up 7.7% year over year, and EBITDA of $122 million, up 11.5% Despite challenges from inflation, MCH increased its H1 2022 gross profit margin by 60 basis points to 40.2% compared to H1 2021 because of successful commodities hedging and higher average selling prices In the first half of 2022, the EBITDA margin remained at 23.1%
In the first half of 2022, Phuc Long Heritage generated $35.1 million in sales, up 38.5 percent year over year, and $5 million in EBITDA, down year over year owing to significant investment in kiosks that are currently ramping up In the first half of 2022, Masan Group posts enormous profits The deconsolidation of the feed industry caused Masan MEATLife's (MML) income to decrease by 81 percent year over year to $83 million in H1 2022, which was completely made up of sales of meat products (Masan, Vir, 2022)
Masan anticipates stronger market circumstances and a more effective distribution system to help MML's results in H2 2022 The performance of MEATDeli and 3F Viet is anticipated to improve as a result of improved rates of utilization at MML's processing facilities, with product line expansion and expanded availability (growing of WCM network and other channels) producing higher revenues starting in Q3 2022 Due to robust demand and growing material prices, MHT produced net revenue of $347.6 million in the first quarter of 2022, up 33.0% year over year, and EBITDA of $77.9 million, up 52.6% year over year (Masan, 2020)
The related firm of Masan, Techcombank, reported a profit before taxes of $604.5 million, an increase of 22.3% over the previous year Please visit the bank's website for more specific results Due to the outcomes, Masan's H1 2022 consolidated EBITDA increased by 17.5% year over year to $314.2 million, with an EBITDA margin of 20.4% compared to 18.9% in H1 2021 This growth was primarily caused by MHT, whose EBITDA increased by 52.6%, and TCX, whose EBITDA increased by 11.7% year over year Consolidated EBITDA increased 6.5% year over year in H1 2022 on a reported basis In H1 2022, net profit after tax (NPAT) pre-mI increased to $133 million, growing by 122.7 percent reportedly and by 211.8 percent like-for-like After minority interests, NPAT Post-MI increased to
$110 million in H1 2022, increasing by 163.3% on a reported basis and 345.4% on a like-for-like basis In H2 2022, WCM is expected to open more than 800 new shops 100 franchised stores will be among the new ones that will be opened Underpinning the new mini-mall shop idea is Masan's Point of Life strategy, which will debut in Q3 2022 (Masan, 2020)
BUILDING A SALES PLAN
Build sales goals
4.1.1 Bases for building goals a Overview market situation
The world: The World Instant Noodles Association (WINA) estimates that there will be 544.8 billion servings of instant noodles consumed worldwide between
2017 and 2021 This amount is expected to reach 118.1 billion servings in 2021 alone, up 11% from 2019 and up 1.39% from 2020
With 53.63 billion servings, or 45.3% of the world's total consumption, Asia, particularly Northeast Asia (China, Korea, and Japan), consumes the most instant noodles requisite in 2021 The second is Southeast Asia, which has five major consumer markets, including Malaysia, Thailand, Philippines, Indonesia, and Vietnam Vietnam, specifically, is the nation that consumes instant noodles at the third-highest rate in the world, behind China and Indonesia 8.56 billion packages of instant noodles will be consumed in Vietnam in 2021, up 21.7% from 2020 Vietnam beat South Korea to become the nation with the greatest level of consumption in 2021, according to WINA data as well greatest per capita consumption of instant noodles in the world Each Vietnamese person eats 87 packets of noodles on average each year (Tiến, 2022)
Figure 8: FMCG in Vietnam (Nielsen Data)
Figure 9: Instant Noodles all the World (Viettimes.vn)
Viet Nam: More than 50% of respondents, according to a Nielsen survey, have cut back on their visits to traditional markets, grocery stores, and supermarkets In order to accommodate the demands of spending more time at home and less time out, the shopping cart value per item increased at the same time As a result, canned goods, bottled water, instant noodles, and frozen foods emerge as the preferred options "In the current setting, the rate of growth in the consumption of instant noodles is 67%; for frozen food, it is 40% Food in cans and bottled water are two other industries that are expanding "these are Nielsen experts' insights
At the moment, 50 domestic and foreign businesses are active in the Vietnamese instant noodle market With nearly 70% of the market share, the major three— Acecook, Masan Consumer, and Asia Food—remain "dominant" in the actual market
With Omachi noodle brands in the high-end category and Kokomi in the middle segment, Masan Consumer Goods Joint Stock Company (Masan Consumer), a subsidiary of Masan Group Joint Stock Company (Masan Group), is in second place in the Vietnamese instant noodle market
In short, Vietnam is where Masan Consumer does the majority of their business The stability of Vietnam's economy has a significant impact on the effectiveness and caliber of their assets Economic conditions in Vietnam and elsewhere, such as those in Asia and the rest of the world, can have a big impact on Masan's operations
In the upcoming years, it is anticipated that the cost of Masan's primary raw materials will rise A product's input cost is significantly influenced by suppliers
As a result, it will have a detrimental impact on Masan's business lines' profit margins The cost of capital will also be impacted by a number of economic factors, including inflation, rising bank interest rates, and currency exchange rates (Tiến, 2022) b Actual resources of enterprises
Human resources: Masan Consumer is run by brilliant domestic and international experts that have a track record of creating enduring brand recognition and business platforms in developing nations Many of Masan Consumer's executives who are also stockholders promote the entrepreneurial culture by "saying it can be done." Masan strives to become the most well-liked workplace in Vietnam in order to continue to highlight its accomplishments, cultivating a culture that values customer service and placing the needs of its customers first
All of Masan's accomplishments were made possible by its most significant resource: its human capital As a result, they are dedicated to finding and nurturing talent, as well as educating and motivating them to feel happy to be a part of the Masan community To maintain a work climate that is fair and equitable and encourages achievement, Masan Consumer
With that as their mission, they take pride in being recognized as one of the top workplaces in Vietnam Along with the purpose of servicing customers, enhancing the material and spiritual well-being of Vietnamese people is another priority Masan Consumer helps to the overall growth of social security in the communities in particular and the nation in general by creating a desirable working environment, opening up job opportunities, and more In order to create favorable conditions for local development, Masan Consumer’s human resource policy always prioritizes recruiting local workers and regularly trains staff to meet the diverse needs of the industry (Masan, Consumer of things, 2021)
As of December 31, 2021, Masan Consumer employed 6,049 people, 3,866 of whom were men and 2,183 of whom were women, making up a well-trained and highly competent workforce
Masan Consumer's personnel situation is divided into the following categories according to qualifications:
Production line: The first quarter of 2021 saw the completion and start-up of production lines invested in from 2020, including noodle production lines in Nghe
An and Hau Giang with a combined capacity of 9 million packages/month To quickly respond to the rise in output given to the market, numerous new factories will be created, expanded, and their capacity will be enhanced by the end of 2021 Masan Consumer produces high-quality goods at prices that are reasonable for customers while also making use of the world's top technical solutions and contemporary technologies In September 2022, noodle production lines with a combined capacity of 29.2 million products/month will be operational in Nghe An and Hau Giang In February 2022, a 4 billion package per year spice packaging facility for noodles is anticipated to open in Binh Duong
Distribution network: In Vietnam, Masan Consumer has a substantial distribution network As a result, at least one Masan product is present in 98% of Vietnamese households (Kantar Worldpanel)
One of Vietnam's largest food and beverage distribution networks is run by Masan Consumer Significant business advantages result from this, including the capacity to effectively deliver goods to customers while lowering transportation expenses This is significant since the retail sector still heavily relies on conventional sales channels and because approximately 70% of Vietnam's population currently resides in rural areas Consumers will experience a significant shift from conventional to contemporary sales channels starting in 2020 This is clear given the Covid-19 pandemic condition as well as the rise of urbanization in rural areas Being a part of The CrownX Corporation, the retail-consumer platform of the Masan Group, we think we are in a good position to benefit from this consumer trend WinCommerce General Trading Services Joint Stock Company (WCM), the owner of WinMart supermarkets and small stores in Vietnam, is one of the biggest and most cutting-edge retailers in the country WinMart+)
One of the few businesses in Vietnam that now has a distribution network for both the food and beverage industries is Masan Consumer With over 2,700 sales people, they have increased to about 300,000 retail points, including 194,000 points for all of Masan Consumer's product lines Moreover, Masan Consumer has
15 factories in 10 provinces across the country, including Ho Chi Minh City, Phu Quoc, Binh Duong, Dong Nai, Binh Thuan, Ninh Thuan, Nghe An, Hai Duong, Hau Giang and Quang Ninh This wide network shows how powerful Masan Consumer's distribution network is in rural areas, where they have the best coverage and go-to-market methods, and it enables them to get new items and promotions to market more quickly.beer-specializing agents, and 188 dealers for Vinh Hao 20L water bottles in order to
Masan Consumer has developed into the "one-stop" shop for more 200 distributors.This has enabled distributors to forge long-lasting and close relationships with consumers Additionally, each distributor in the country can get same-day deliveries of food and beverage products from 8 strategically placed distribution centers Masan Consumer is now in a unique position to test new goods in Vietnam rapidly and affordably Additionally, they can use these distribution hubs to grow a new market, such as the home and cosmetics and personal care products sectors
In response to the pandemic situation and the majority of customers' shifting buying preferences, we progressively built the E-Commerce platform and set our sights on success in 2022 With the help of this system, we can hasten our growth internet distribution allows for the quickest delivery of goods to customers wherever
Sales execution
KPI Jul Aug Sep Oct Nov Dec
(divided sale objective for last 6 month in 2022)
(Table of setting sales goals from January to June 2023 in all of HCM)
Table of setting sales goals by month (2023)
8th floor, Central Plaza, 17, Le Duan , Ben Nghe, District 1,
Masan's sales target of selling instant noodles in the first 2 quarters of 2023 in Ho Chi Minh City, Noodle’s Masan revenue target for the first six month of 2023 in HCM is 565 (billion VND)
Our team proposes the following sales plan
Cost/revenue spread for sales force: 30%
Selling expenses are divided into 2 groups: sales managers, sales staff in turn at the ratio 2:8
For sales management for two quarters: 565 x 0.3 x 0.2 = 33,9 VND billion For sales staff for two quarters: 565 x 0.3 x 0.8 = 135,6 VND billion
Cost for sales staff per month: 135,6/ 6 = 22,6 billion VND
The current rental fee for each salesperson is 10 million VND/month
=> Number of sales staff: 22,6 (billion) / 10 (million) = 2.260
Need 2.260 sales staff in the first 6 months of 2023 in HCMC area
Personnel costs (expected estimated human resources costs for 6 months)
Salesman (hard salary: 4.5 million/person) 2.260 x 6 months 10.170.000.000 VNĐ
Reaching the sales that the company has set, we propose to recruit a team of supervisors of distribution channels and sales staff
Education: Bachelor's degree from a regular university in economic and
1 year of experience in a management position
Skilled in coordinating, operating, quickly handling problems, communicating, leading the team…
Withstands pressure in harsh working environment
Have professional communication skills, skills to work with customers
Able to withstand environmental stress
Open training each month ( include: introduce product, teambuilding, solving case study, ) raise soft skills for sales
Open sales skill class for sale ( for free) with supervisor
After per week sale manager will meeting with their team to show weakness of their team and put their goal in next week
One of the best policies for the employees of Masan is the Insurance, each member of Masan will receive the insurance during the working time, including
6 months after they quit their job
The second thing is the health check in SIM medical center
Bonus in festival: Bonus one month in Tet, holiday still receives salary
In addition to distributing products to agents, wholesalers and retailers through its sales force, Masan also supplies its products through the system of Winmart supermarkets and the Wimart + store chain, which are the strong sales channels of Masan
In 2020, after the acquisition of VinCommerce (belonging to Vingroup), Masan took over the Vinmart chain store system Since taking over the chain store management company, the company recorded a revenue of approximately VND 31,000 billion, up 14% In which, the VinMart + store system saw revenue growth of 42%, although the number of stores decreased sharply The head of The CrownX said that from a loss of USD 100 million upon receipt, the restructuring process is helping VinCommerce's business results better
In early 2022, Masan changed the brand name for the VinMart retail system to WinMart and drastically closed 700 VinMart+ stores, restructuring the supply chain According to information recorded on Masan's website, the company currently has only 18 operating Winmart supermarket and more than 72 Winamart + in Ho Chi Minh City (Diệp, 2021)
In addition to expanding its business, Masan has also recently implemented the form of franchising WinMart + stores with requirements such as:
- have a house on the street or a shop house
- willing to invest costs from 1 to 2 billion
- The ground area is larger than 100m2 with a frontage of 6m wide, the location of the street or the foot of the apartment…
Table 3: List of Winmart supermarket in Ho Chi Minh City (Source: winmart.vn)
Supporting marketing activities
Figure 20: Position of Masan Noodles
In order to compete with other noodle companies like Hao Hao, Kokomo, and Cung Dinh, Omachi employs a unique marketing technique known as "More is better" that targets consumers who do not have time to prepare meals but still care about their health In addition, Omachi is slightly more expensive than other noodle brands like Do Do, Hao Hao, and Thaiduong These noodles cost around 3,000 VND each pack Omachi can provide clients several advantages, even at a somewhat higher cost of 8,000 VND
Vietnamese people are accustomed to eating instant noodles However, from the standpoint of the consumer, the convenience of instant noodles is its main selling point, but it also raises other issues for consumers such acne, body heat, and genuine lack of quality nutrition High earners and women pay attention to this as one of the key points The largest obstacle for instant noodle businesses to reaching this customer category is health concerns
Masan introduced the Omachi product line with the unambiguous message that
"noodles produced from potatoes" would help consumers overcome their fear of heat after realizing the opponent's weakness Omachi's choice of the mid-range portion and the message it conveys—"don't be afraid of heat"—is brilliant It removes consumer doubt and provides a potato pasta solution to accomplish so The message's main idea is to put an emphasis on consumers' health, which is completely consistent with Omachi's brand positioning in the mid-range market
With the slogan "not frightened of heat," Omachi is a powerful brand in the market that has made an impression on customers
Products made with Japanese technology that meet international standards and are suited for Vietnamese consumers
Customers can choose from a variety of flavors for Omachi noodles products
The item continues to dominate the market for premium instant noodles and enjoys the second-largest market share in the nation
The company continually innovates and creates new goods with the intention of expanding its offering to cater to the various needs of clients
Create numerous attractive promos to convince customers' participation and earn their approval
In a packet of 75g noodles, the major ingredient is potatoes, yet 10% of that amount is insufficient to persuade customers to buy Omachi, which is advertised as being
"extremely delicious without fear of heat." Omachi is made entirely of potatoes
Omachi focuses on the urban client sector, so it has not successfully reached a significant number of customers in the countryside As a result, the cost is greater than the average income of Vietnamese citizens
The consumption and demand for Omachi potato noodles have increased as a result of the expanding instant noodle market Omachi noodles now have a fantastic opportunity to grow economically
Omachi has found it to be considerably easier to expand internationally now that Vietnam has become a member of the WTO
The market for instant noodles is becoming more and more competitive as food production businesses enter the industry due to its potential and allure
Competitors frequently control the market through innovative advertising strategies like sales or discounts
Particularly, overseas rivals are likewise trying to "hegemonize" the Vietnamese market for instant noodles
Vietnamese cuisine is expanding in variety, with the introduction of quick noodles, porridge, noodles, vermicelli, is increasingly the largest danger to Omachi noodles in particular and quick noodles in general
4.3.3 Objectives of supporting marketing activities
Problems Identify: The market for instant noodles is always appealing and is worth many trillions of dong Masan has experienced the quickest development despite entering the market later than major corporations like Vina Acecook, Vifon, or Asia Food Masan currently holds a 27% market share in the second block of Vietnamese businesses that produce instant noodles
On the consumer side, they are confused by a variety of instant noodle brands with hazy messages, accompanied by health worries, such as the heat in the body after eating noodles, and the price because of which it is challenging for them to prioritize which noodle brand to choose
Masan recognized this and used the slogan "Noodles are manufactured from potatoes, not frightened of body heat" to introduce the Omachi product line This product line addressed consumers' worries about whether original instant foods can make them feel hot inside by introducing potato noodles as a remedy
Objectives: The main objective of this marketing communications strategy is to increase Omachi's social media engagement Although the brand now has 102,913 followers and 98,417 likes on its Facebook page, these are not insignificant statistics However, the interaction rate with the posts on the page is low and has not sufficiently wowed the audience that this campaign is trying to reach The objective is to reach over 200,000 followers and 150,000 likes in Facebook Increasing the company's social media following is essential because it will greatly improve brand awareness and loyalty Good customer relationship management (CRM) that increases customer satisfaction is the secret to retaining customers and fostering brand loyalty In the present day, when technology is a part of daily life, social media could be used as an effective tool to engage and attract customers' attention Omachi must develop deep relationships with consumers in order to succeed A successful marketing communications strategy should make an effort to inform consumers about all product features and convey messages that emphasize the key characteristics that are known to important to consumers
In order to encourage customers to give Omachi's noodle products an actual try, we decided to deploy an experiential event for this campaign: Omachi's fresh potato noodle machine experience event Holding a 3-day event in Ho Chi Minh City, Omachi will give participants a hands-on experience of the process of making non-fried potato noodles Besides, in order to increase the amount of interaction and attention of young customers towards this event, mini-games with rewards will be held throughout the week of the event on its Facebook page Rewards consist of Omachi-branded noodle products and coupons that can be used at any store, supermarket or e-commerce site when purchasing Omachi products Contents of mini-games include:
Insights: As a consumer who does not have time to prepare meals and prefers fast cuisine that is not overly fatty and unhealthy
Big Idea: “Experience The Fresh Omachi Potato-noodle Making Machine Event”
Customers may see Omachi use potatoes to generate noodles at the machine to produce noodles that are comparable to packaged noodles Users won't need to be concerned about using the noodles due to heat and health consequences because they are made from potatoes
Key message: “Irresistible attraction”(“Sự hấp dẫn không thể chối từ”)
The whole process of the campaign will be divided into 3 phases:
Phase 1 (31/12/2022 - 5/1/2023): Informing customers about the event + Mini- games
Phase 2 (6/1/2023 - 8/1/2023): The three-day experience noodle maker event
An overview post regarding the campaign will be published and carried out to attract customers' attention
Year Celebration post + Mini- game: Answering quizzes
Happy New Year 2023 and a related puzzle- answer game with exclusive rewards are both included in the post
The puzzle game consists of 5 questions related to the New Year event Expected reward: 1 box of 7 types of Omachi noodles + coupon worth 300,000 VND for the first 5 correct answers
Informing about the upcoming event
Post with detailed content introducing upcoming events The staff will increase the sharing of posts widely on all platforms to all target audiences (mainly Facebook)
Introducing the process of creating Omachi's exclusive potato noodles + Mini- game: Matching the right noodle flavors
Introducing the process of making Omachi noodles from potatoes and how "healthy" it is compared to other instant noodle brands
Mini-games will also be held with exclusive rewards
The matching of different Omachi noodle flavors with reward: 1 box of 7 types of Omachi noodles + coupon worth 200,000 VND +
1 lucky spinning game ticket at the upcoming event for the first 5 people with right result
Reveal the process of preparing the show + Sneak peek Omachi's exclusive potato noodle machine
Revealing the most special parts of the event: Noodle machines and different types of noodles will be brought to customers to enjoy during the event
Reveal the exciting event space and what participants will get when joining the event + Mini- game: Find the difference
The post introduces the space of the event that is about to take place and introduces the gifts each attendee can bring home Mini-game:
Finding the difference between 2 pictures with special rewards
The matching of different Omachi noodle flavors with reward: 1 box of 7 types of Omachi noodles + coupon worth 200,000 VND +
1 lucky spinning game ticket at the upcoming event for the first 5 people with right result
The event is ongoing for 3 days in a row
FB posts are updated regularly to attract more customers attention during the event
Phase 3 (8/1/2023 - 15/1/2023): Evaluate the effectiveness after the event To evaluate the success of this event, we will use SMART goals model to get an overview and details of the event Then will compare Omachi's events this time with other events in the same segment to see the effectiveness and can evaluate and give suggestions for upcoming events After observing and studying the results of the event, customer feedback is an important content to make a final assessment of the success of the event, through feedback surveys and keep track of social media mentions
This event, we want to increase interaction on social networking sites with audiences of all ages so that we can promote sales of Omachi's fresh potato noodle products
Omachi presently uses Facebook as their main social media tool for promotion and communication Because there is little brand interaction on social media, we want to use social networking to broaden the target market and boost brand recognition, awareness, and loyalty Omachi must regularly engage with customers by developing interesting content, promotions, and social media trends in order to enforce enhanced promotional and communication tactics Due to its limited budget, Omachi's best option is to market its brand on social media In the present digital business environment we are in, this could be advantageous because a sizable audience especially with our main target audience can be reached and customer input can be taken into account Even though managing and integrating all social media content can be difficult, the payoff is worth
Every day until the campaign is over, effectiveness will be assessed; results must be attentively observed to determine whether the campaigns have been successful in reaching the objectives of the brand Process of evaluation includes:
• Keep track of the growth of followers and likes over an one Facebook post (daily)
• Review and measure the expansion of competitors
• Analyze the totals for likes, comments, and shares for each post
• Track engagement: Measure the number of users who engage with the content created
• After a campaign has been implemented, evaluate sales income
• Check Google Analytics to examine how data on social media efficacy is gathered
• On Facebook Ads, track button clicks
Through this report, the team found that in order to build a sales plan for one or more products of any enterprise, the sales managers first need to analyze the business, the business environment of the enterprise including the micro and macro environment From there, it is possible to determine which of the company's products compares to a somewhat less developed competitor and establish a new sales plan for that product to improve sales revenue