Final Report Subject Asian Marketing Management Topic Tet Promotion Plan.pdf

Vision: "Become the most loved and trusted company in Vietnam with "Unique features" in the field of food and health." Mission: “Contribute to the further growth of Vietnam, the happines

VIETNAM GENERAL CONFEDERATION OF LABOR

TON DUC THANG UNIVERSITY FACULTY OF BUSINESS ADMINISTRATION

ĐẠI HỌC TON puc THANG

FINAL REPORT SUBJECT: ASIAN MARKETING MANAGEMENT

TOPIC: TET PROMOTION PLAN

Professor: NGUYEN THI QUYNH ANH Class: 3, Saturday, shift from 12:45 to 16:15 Major: Marketing

Group: 7 Group name: SEVEN SHEEP

TP HCM, NOVEMBER, 2021

MEMBER INFORMATION SHEET

- Finished part: IL.(1 , 2.2), HL

(1,3, 4, 5.3)

- Brand key: 1,2,5

- Finished part: 1.2, 11.2.1, III

- Finished part: 1.2, 11.2.1, III

TEACHER’S COMMENTS

TABLE OF CONTENT

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I EXECUTIVE SUMMARY

1 Current status

Tet 1s an important occasion of the year that brands pay special attention to when implementing their marketing campaigns because this is a great opportunity for increasing sales and brand awareness

For Vietnamese people, Tet is a traditional cultural feature when family reunions and delicious food are enjoyed Therefore, brands in the seasoning industry often pay great attention to this time to promote their brands

Currently, Ajingon is one of the leading brands in the seasoning industry However, competitors like Knorr, Maggi always follow closely and have many impressive marketing strategies while Ajingon still has not had many achievements in this So in order not to lose market share to competitors, this Tet holiday our team has planned a campaign for Tet 2022

The campaign we want to create for Ajingon this time will focus on people's emotions, especially women (target customers) and their children living far from home Understanding the current situation that we are affected by the Covid epidemic,

we want to bring a positive message to encourage those who are having difficulty when they cannot return to their hometown due to the epidemic on Tet holiday At the same time, we also want to highlight the role of housewives

According to the plan, we will focus more on TVC for this campaign because it has a great impact on viewers’ emotions However, in parallel, promotion, minigame, and merchandising activities will also be carefully prepared to bring the most complete

campaign to customers

2 Background of company

2.1 Ajinomoto Corporation

Corporate Message: Lat Well, Live Well

Current President and CEO: Takaaki Nishii

Some subsidiaries: Ajinomoto Frozen Foods, Ajinomoto AGF, ajinomoto malaysia bhd, ajinomoto india private limited, Ajinomoto Thailand, Ajinomoto Foods Europe SAS, Ajinomoto Korea, Maruchan Ajinomoto Nigeria, S.A Ajinomoto OmniChem N.V, Amoy Food,

Ajmomoto Corporation was established in 1909 in Tokyo, Japan with the world's first umami product branded AJI-NO-MOTO With the motto "contributing to building a better life for everyone on earth by contributing important advances in the fields of Food and Health and by activities for Human Life", Volume Ajinomoto Corporation has been contributing to the development of economies by creating products that meet the needs of people around the world

Ajmomoto Group currently has 136 subsidiaries and 20 member companies around the world, operating in three main areas of Food, Amino Acids and Pharmaceuticals & Health The Group's production plants are present in 22 countries and territories around the world With an extensive and efficient distribution network, the Group's products are distributed to 130 countries and territories around the world Ajinomoto has become a powerful global corporation with a staff of 27,000

2.2 Ajinomoto Viet Nam

Following the message of Ajinomoto Corporation: Eat well, live well, Ajinomoto Vietnam continues to develop and accompany Vietnamese life

Vision: "Become the most loved and trusted company in Vietnam with "Unique features" in the field of food and health."

Mission: “Contribute to the further growth of Vietnam, the happiness and good health

of people in Vietnam, through food culture and food resources development.”

Ajinomoto Vietnam Company (Khu công nghiệp Biên Hòa L, tỉnh Đồng Nai) was established in February 1991, is a 100% foreign invested company, formerly a joint venture between Vietnam Food Industry Company (VIFON) and Ajinomoto Corporation Japan Ajinomoto Company is proud to be the first foreign-invested enterprise in the food processing industry in Vietnam to obtain [SO 14001 certificate

of environmental management system The company is also applying a quality management system according to ISO 9001-2000 to ensure that the output products meet quality standards, food hygiene and safety, and meet the increasing demands of consumers

Currently, Ajinomoto Vietnam Company has two representative offices in Ho Chi Minh City and Hanoi, two production factories including Ajinomoto Bien Hoa Factory operating since 1991 and Ajinomoto Long Thanh Factory operating since

2008 with the same factory The third machine is also in Long Thanh, which started construction in 2016 In addition, the company has 3 large distribution centers and

branches spread over 63 provinces The total number of employees working at Ajinomoto Vietnam Company is more than 2,300 people

From the first product, AJI-NO-MOTO MSG, over the past 30 years, Ajinomoto Vietnam has always made constant efforts in research and development to bring a wide range of spices, food products, Drinks and nutritious food with the best quality, safe, suitable for the taste and needs of Vietnamese people Next to that, we always want to contribute to the development of Vietnamese cuisine by giving advice and introduction to new tastes and new eating ways for people in Vietnam, bringing delicious and happy family meals Currently, Ajinomoto Vietnam has more than 35 types of food products that are widely introduced nationwide with brands that are trusted by many consumers such as AJI-NO-MOTO® MSG, Aji-tasty Seasoning Seeds ®, Ayji-Quick® Seasoning, Aji-mayo® Mayonnaise, “Fuji” Soy Sauce, Ajinomoto Fermented Rice Vinegar, Ready-made Donut Flour, Blendy® Instant Drink, Birdy® Canned Coffee, Amino VITAL™ drink, "Mam mam” micronutrient supplement seasoning powder

Moreover, Ajinomoto also pursues the important business principle that is ASV (Ajinomoto Group Creating Shared Value) in order to create shared value with society through our business that contributes to tackling social issues such as environmental protection and sustainable development, preserving food resources and improving nutrition and healthy living

Ajinomoto Vietnam has achieved remarkable achievements: developing many condiments and food products suitable for Vietnamese consumers, in parallel with implementing measures to protect the environment, helping people live around the areas near the plant that are not affected by health factors and water discharged by the production plant Since 2014, Ajinomoto Vietnam has put into operation a biological boiler system using pressed rice husk - an abundant source of agricultural by-products

as fuel to provide steam for production Bio-boilers help reduce more than 52% of harmful CO2 emissions for the environment compared to using fossil fuels

Technology: food products and amino acids based on advanced biotechnology and chemical technology from Japan

Il SITUATION ANALYSIS

1 Market summary

1.1 Actual situation

Spices are always considered a vibrant and potential industry For a long time, many companies have entered the Vietnamese spice market in tur with the desire to conquer the taste of every Vietnamese family

Vietnam is considered a difficult market for the spice industry because of its diverse and unique cuisine According to Nielsen research, from now to 2022, each year, Vietnam's seasoning industry will grow from 25-32% "plus” (annual double-digit growth), of which fish sauce, soy sauce, seasoning, monosodium glutamate, soup powder, seasoning products, oyster sauce, chili sauce, ketchup, etc are highly competitive items

The broth mix market in Vietnam has been around for nearly 10 years, but it has proven

to be a very attractive market with a lot of potential for exploitation now and in the future

According to Nielsen's report, accounting for 33% of the total number of spices , Knorr (Unilever), Maggi (Nestlé), Aji-Ngon (Ajinomoto) and Miwon are the brands that are dominating the market seasoning, monosodium glutamate, and soup powder, while enterprises hold a very small market share

Analyzing the potential of the seasoning industry in Vietnam, Nielsen said: "The demand for seasoning seeds for meals in Vietnamese families is very large, specifically 30 million liters of soup/day, seasoning for different families fried dishes on weekends increased by

18 million dishes/day, seasoned in stock dishes 14 million pots/day ”

1.2 Competition Market - AJINOMOTO

In the research of Neilsen company, Major species will grow up from 25 to 32% until

2022 Besides that, sugar, salt, monosodium glutamate, broth mix, are the most competitive goods in the market 33% of the total Major Species Knorr (Unilever), Maggi (Nestlé), Aji-Ngon (Ajinomoto), and Miwon are brands that divide the market

Top 4 Broth mix Brand in the market are: Knorr (50%), Aji-Ngon, Massan, Magei Even though many competitive brands appear in the market, Aji-Ngon is still trying to be better in the strategy and more and more dominant in terms of materials and technology The proportion of MSG in seasoning makes up 30% with the advantage of being a MSG company, the price of Aji Ngon is always more competitive than Knorr's, even though Knorr's MSG price has been calculated according to the bulk purchase price of the area

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On the other hand, Aji Ngon also has the technology of extracting bone broth and meat in place so the sweetness is higher, the cost of ingredients is, therefore, lower than Knorr when it comes to buying chicken powder to mix

To "fill in" weaknesses, Unilever has promoted its strengths with its financial potential for advertising "Every year, the product marketing budget for the seasoning industry always grows by about 15-20%,” a former Unilever Research and Development Director revealed

2 SWOT analysis

2.1 SWOT ANALYSIS FOR THE COMPANY — AJINOMOTO

from one product category with

benefits obtained from the other

- Strong online presence on different

social networking sites and efficient

enhance the effect of positive e-WOM

and develop strong relationships with

customers

- Strong financial position and health

can allow the firm to make further

investments

- Access to the suppliers that offer raw

material at a lower cost can improve

the overall business efficiency

- The locational advantage can improve

the competitive positioning of the firm

in various ways, such as lower cost,

improved accessibility or enhanced

brand image

- The well-developed and efficiently

integrated IT infrastructure can

improve operational efficiency and

increase knowledge of the latest

market trends

segments is a great growth opportunity for the business organisation

- The changing customer needs, tastes and preferences can act as an

knowledge

- The development of new technologies

production and delivery process can be exploited to embed the innovation in business operations The advanced technological integration can decrease costs, improve efficiency and result in the quick introduction of innovative products,

- Rise in the customers’ disposable income and increase in the affluent customer base can be taken as an opportunity to introduce more high- end products

- Acquisitions of smaller brands

- The emergence of e-commerce and social media marketing as a trend can

II

capital can act as a powerful source of

competitive advantage, particularly

when business is service-oriented in

nature Strong financial position and

has nearly 25,000 employees

High product quality increases brand

loyalty and improves Ajinomoto Co

Inc's performance in a competitive

market

Workplace diversity can also act as a

major business strength, particularly

when the organization intends to

operate in the international market

integration can increase the control

over the whole value chain, resulting

in improved access to raw material

and quick product delivery to the final

customer

An organisation may own different

intellectual property rights that can

make the product offerings unique

and exclusive, making it difficult for

competitors to imitate

Co Inc if it can ensure a strong online presence on different social networking sites,

segments and new niches _ provide business and product line expansion opportunities

- Improvement in the customers- lifestyle and standards mean more consumption

on consumer goods and services, and more opportunities to encourage the purchase

- Shortage of skilled labour in the market

lead to an Insufficient budget for the

marketing and promotion activities

and weakens the firms’ ability to

expand the customer base and enco

The organisation can draw criticism

from the environmentalists for its

poor waste management practices

sustainability in business operations

The company may lose efficiency due

practices The shortage or excessive

inventory can either result into

The cash shortage or insufficient

right skills set

- The increasing number of direct and/or

organisation's ability to sustain and expand the customer base

- The deteriorating economic conditions (such as : Covid - 19 ,etc.) affect

spending patterns and_ purchasing power

sustainability trends act as a major

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liquidity position and harms the

overall business performance urage

repeat purchase

Focus is way too high in seasonings

business

High job stress and consequent low

workers’ morale makes the workforce

less productive

are not environment friendly It draws negative publicity and criticism from the environmentalists and affects the brand image in a competitive market

- Price wars that the prices charged by the business may not be perceived as

company, belonging to Ajinomoto

Corporation in Japan This means

AjiNgon is produced according to

Japanese technology

- Ajinomoto VietNam focuses on product

quality Because of that reason, Ajingon

technology and good materials

- As a result, Aji-Ngon seasoning makes

dishes twice as delicious, richer in

flavor, and retains the clarity of the

broth

-It is a_ perfect alternative for

Homemade soup”

- Compare with Knorr:

+The price of Aji-Ngon seasoning is very

user-friendly and always competitive

with Knorr, which is the biggest

competitor of Ajingon

+Marketing Actives for Ajingon seeds are

strong and extremely competitive

+Ajingon’s advertising activities are

really the “coupling” point to attract

customers’ attention

- Aji-Ngon seasoning is a product of the

“school eating” program in cooperation

with the Ministry of Education &

Training in provinces and cities As a

result, Aji-Ngon becomes a nice brand

reputation in the customer's mindset

“

- Good conditions which were created by

businesses: taxes, laws

- Aji Ngon has a strong strategy in all

40% compared with the competitive brand)

-Pioneer products for vegetarians, babies, etc This makes Ajingon reach more customers

- Aji Ngon took a deep and impressive image with all of the homes in VN -New product designs pop up at discount events everyday

- Because of that reason, consumers tend

to choose Knorr products more due to

their prestige, brand recognition and

more open and fierce The first thing worth mentioning here is that there are more competitors, stronger global competitive forces, and more complex and diversified competitive tools and tricks

- Challenging the market more Due to

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tends to exceed demand So_ the questions of certain schools are in

stricter and more regulated The first requirement is product quality But the quality date is not enough Along with good quality, customers also require

reasonable prices, complete services, official delivery deadlines, profitable

distribution channels, etc

- More and more renewed demand from customers and how to control the qualified information in social media

3 Competition

3.1 Competitors distribute:

- With the support of | Belonging to the | Since its inception, due

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- Is a strong brand of

quality food popular

around the world

-The marketing team

strategy and create a

distinctive feature for

Penetrating into the Vietnamese market

as early as 1935

development trend Thanks to the Power Plant, Vedan Vietnam not only stabilizes the amount of electricity for production, but when not used up, the power source will be connected

to the electricity grid

Women aged 22-45,

women, have jobs

Women aged 25-50 have a housewife role in the family and decide on meals

people who need to use

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on Nutrition, Health and Healthy Living, MAGGI's | products fortified with

Following

are

meet the nutritional

obtained _ international certifications

product seasoning powder

poor

Food Hygiene and needs of Vietnamese

Safety - Ministry of | consumers

Health

SKUs: 100g, 280g | The product is not

types are available

oriented to pursue a

low price strategy

Hit the psychology of

housewives: just buy

good quality products

and save money im

share in the rural market, Maggi sets

suitable for low- and medium-income households who can

compared to the others

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Product selling prices

low or high income,

can use this product

commerce sites such as Shopee, Lazada

e Increase Brand Awareness, Market Share and Sales

e Attract New Customers and retain Current Customers

b) Mission and Vision of AjiNgon

Vision: “Become the most beloved and trusted company in Vietnam with “Unique features” in the field of food and health.”

Mission: "We contribute to the further development of the country in Vietnam, contributing to the happiness and health of the people in Vietnam through culinary culture and the development of food sources.”

1/ Keep updating the products : Improved

quality, the new Aji-ngon Pork seasoning

also puts on a more luxurious and

prominent background, making it easier

for users to identify and choose products

2/ Increasing sales and profits through

promotions in the market

1/ Researching about competitive situation such as competitor behavior, new products and possible supplier changes: in policy and appearance

2/ threats the company may face in terms

situations, both locally and globally

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Objectives by content of the strategy

provides solutions: food

and health problems, a low

sodium diet through daily

eating habits

KPI growth about 10-11%,

Create favorable conditions

to attract talented people Keep changing the old system in management and the past mistakes

How do consumers choose products?

For seasoning products, customers will choose the main ones based on the following criteria:

Low prices and many attractive promotions

Impact from family (recommended by relatives) and long-term use habits Attracted by product advertisements on TV

Convenience in purchasing products

c) Customer Psychology:

Product quality is good for health: clear origin, delicious taste

The thought processes and emotions behind consumer decisions?

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Most consumers choose to buy because of habits or referrals, but some buying decisions are based on the product's advertising about the quality and information of the product

Some consumers choose to buy because they are curious about the taste and want to try it

to see if it suits their taste or not

2.2 Targeting

We choose the target market to target customers who are housewives from 25 years old and above with characteristics including being in charge of cooking in the family, making family shopping decisions and being sensitive to price

Aji-ngon seasoning users said the reason why they used it is:

Most of the most prominent reasons of most interviewees choosing to use Aji-ngon in their kitchens is about the product taste factor People commented that seasoning the product was palatable and made the dish more palatable, especially with soups

Secondly, the participants highly appreciated Aji-ngon because Ajinomoto company has a long-standing reputation with Japanese quality and production cycle, so they feel secure when using Aji-ngon to cook for their families

In addition, due to its long-standing reputation and early access to the Vietnamese market, Agji-ngon has been known and used for a long time, gradually forming a habit for many households Many participants answered that they used Aji-ngon because they were mtroduced by relatives or their family had a long-standing habit of Aji-ngon

Next, Aji-ngon offers quality products at affordable prices and has many gifting promotions Some participants trust Aji-ngon because the price of the product is affordable for them (even those with low middle income) and enjoy many promotions for kitchenware

Finally, a reason also stated by most of the participants was that they saw Aji-ngon ads very often on TV and were attracted by them

Users from other brands answered why they did not choose Aji-ngon:

The first disadvantage of Aji-ngon pointed out by the participants is that the product preservation method is not satisfactory, leading to the sometimes lumpy texture of the product

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The second reason many people don't choose Aji-ngon is that the taste is a bit too sweet for their family's taste

In addition, some families with vegetarians claim that Aji-ngon has no products intended for vegetarians

Finally, many households reported that they were used to using other brands and were afraid to change

3 Consumer insight

Vietnamese women have always been aware that they have to fulfill their obligations to take care of their families They know that meals are the important time of the day when the family gathers fully, so housewives want to bring a warm atmosphere and connect family members together through delicious and healthy dishes Therefore, today's housewives prioritize choosing seasoning products that have a natural delicious taste and ensure that they do not contain substances harmful to health

4 Brand positioning model:

High seasoning glutamate

Maggi stewed bone

Low seasoning glutamate

Figure 1: Brand positioning model

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The brand positioning model was created based on 2 criteria: the weight of seasoning glutamate and price

- The first criterion is the weight of seasoning glutamate

In 2007, a survey was conducted a survey called "Survey on Di-sodium 5' - Inosinate (E631) and Disodium 5'-guanylate (E627) in seasoning powders in Ho Chi Minh City” by Nguyen Duc Thinh, Phan Nguyen Thi Trung Huong, Hoang Thi Nga, Tran Thi Anh Neguyet After conducting the survey, the data showed some results about the super MSG component in seasoning

The results show that most of the seasonings from popular brands contain ingredients E631 and E627 The summary of the data is as follows:

+ Knorr has an E631 ratio of 1595.95 mg/kg; E627 is 3646.58 mg/kg

+ Maggi chicken powder has 3483.52mg/kg (E631); 4509.93mg/kg (E627) + Maggi stewed bone seasoning has 6785.20 mg/kg (E631); 7824.17 mg/kg (E627)

+ Ajingon bone and meat seasoning 734.1 7mg/kg (E631); 23.86 mg/kg (E627)

- Second criteria is the price of the product

Considering the seasoning products from pork bones and the weight of 400g, the prices

of seasoning products at Bachhoaxanh that are popular with many people are as follows:

“Dam thit ngot xuong” new slogon of Aji Ngon, the main ingredient is broth extract from the bones, marrow and pork, bringing a harmonious Aji-ngon Pork's new innovative formula makes the dish more flavorful and does not change the natural flavor of the food

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In addition to quality improvements, the new Aji-ngon Pork Seasoning has also been changed in appearance, luxurious and prominent, making it easier for consumers to identify and choose product

Products are researched and improved based on the taste of Vietnamese people, the entire production process is applied a strict quality management system to ensure quality and safe products for consumers The production process of bone and meat broth recreates the cooking process of Vietnamese housewives

2 Competitive environment

In 2013, Kantar Worldpanel conducted a survey in Vietnam to measure the amount of seasoning which was used The results of the study show that each year Vietnam consumes about 1500 tons of seasoning seeds This shows that Vietnam is a big market for the seasoning industry

There are many brands of seasoning seeds in Vietnam but there are three biggest seasoning brands in Vietnam market and they are Knorr (Unilever), Aji-ngon (Ajinomoto), and Maggi (Nestlé) Those brands account for 90% of the revenue of this category According to this information, we realize that Aji-ngon has a strong position in the seasoning market

Aji-ngon's competitive environment is all the spice in Vietnam’s market A scientific report on an overview of the food industry in Vietnam and the world under the Institute of Tropical Biology shows that Vietnamese people consume about 450,000 tons of spices on average each year According to this data, it can be seen that Aji-ngon needs to compete not only with competitors in the same category but also in other condiments

The direct competitors of Aji-ngon seasoning in the Vietnamese market are Knorr, Maggi, Chinsu, and new entrants into the industry Aji-Ngon's substitutions include other condiments such as salt, sugar, mushroom powder, etc

3 Target

We define the target audience through the implementation of demographics through interviewing with free responders We interviewed 40 specific people aged above 25 years old and they are female

We choose this target audience as women because most of them are in charge of cooking

in Vietnamese families and by the age of 25 most people are already financially self- sufficient and can be interested in cooking

4 Insight

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Housewives are often afraid to use MSG in processing because they are concerned about its adverse health effects, so they switch to seasoning instead and ajingon seasoning is the pioneer seasoning using the raw material "Extracted from the bones of stewed meat" produced directly by modern Japanese technology

5 Benefits

® Functional Benefits: Aji-Ngon helps users save time stewing bones or stewing broth In addition, the product also helps users simplify the steps of seasoning during the cooking process while saving other seasonings such as salt, sugar,

¢ Emotional Benefits: Aji-Ngon makes dishes and soup more delicious,

¢ Sensorial Benefits: When you can taste perfectly the foods, it will bring a deep impression and best memories about the nature of dishes Moreover, it will make you more delightful, enjoyable

6 Values, beliefs & personality

We are all too familiar with Ajinomoto's "legendary" TVCs with their red color identification and memorable slogan "Eat well, live well" Recently, Ajinomoto MSG has also been very successful with a TVC with content about a family of three generations of grandparents, parents, and children who all love to cook with Ajinomoto, with a constant melody: “Delicious dishes Eating delicious hometown Ajinomoto is so delicious, so many family meals, wonderful Ajinomoto ” The image content may change, but this

"eat well, live well” message is still maintained by Ajinomoto as a promise, an affirmation to Ajinomoto's target customers about product quality, and at the same time saying The mission and vision of the business is to always combine the interests of the community with the interests of the company

7 Reasons to believe

Ajingon 1s a brand of seasoning seeds by ajinomoto company - a long-standing and well- known company Ajingon seasoning is committed to standard quality with modern Japanese technology and production cycle

Also, Ajingon seasoning ensures good quality and bold taste by carefully selected ingredients and special processing to keep the natural taste

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Finally, the entire production process is applied to a strict quality management system to ensure quality and safe products for consumers

8 Discriminator

Ajingon seasoning seeds are processed according to Japanese technology, the product is stewed from tubular bones to help supplement the calctum needed by the body, always bringing safe substances in the seasoning along with a delicious taste - natural sweetness

Concentrated extract from tenderloin, bone marrow and shiitake mushrooms; the product contains calcium supplements for the body; ensuring food safety and hygiene thanks to production according to modern Japanese technology The entire process is strictly managed, combined with an advanced production system to bring quality and safe products to users

9, Brand Essence

Products with double delicious taste, bringing a rich and delicious taste - naturally sweet like a mother's love for the whole family The product carries the true Japanese spirit with concentrated extracts from meat, bones and ribs processed by modern Japanese technology with a harmonious balance with other spices Ajingon seasoning adds deliciousness and flavor to the dish with natural flavors The product is very good for health as well as the natural sweet flavor for the dishes In addition, the product helps to add calcium ingredients, good for health and great as a mother's love for all family members, is a great companion of housewives

5 Strategies:

5.1 Product

New product development with the following requirements:

bones, combined with traditional spices

Safety- Ministry of Health

improve packaging such as changing from traditional to zip bags, folding bags for convenience and convenience Because for long-standing kitchen products, the first factor that attracts customers' attention is not the quality but the packaging, the product's label and the convenience that is also the factor that the customers are

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