According to (haymoda n d), masans kokomi is ranked 2nd in the viet nam instant noodle market share

However, inthis report, we will focus on Kokomi instant noodles of Masan Consumers.. Thus, to respond tothe market demands for noodles, Masan has presented Kokomi to the market in 2011 M

KOKOMI SITUATION ANALYSISGroup ID: HN_G4_ Team 4

Memebers of Kokomi Team:

WORD COUNT: 5000 words.

TABLE OF CONTENTS

1.INTRODUCTION 1

1.1 Company description 1

1.2 Product description 1

2 MARKETING ENVIRONMENT 2

2.1 Microenvironment 2

2.1.1 Suppliers: 2

2.1.2 Intermediaries: 2

2.1.3 Customers 2

2.1.4 Publics 3

2.1.5 Company 3

2.1.6 Competitors 4

2.2 3 MACROENVIRONMENT 4

2.2.1 Demographic environment 4

2.2.2 Economic environment 4

2.2.3 Natural Environnement 5

2.2.4 Political Environment 6

2.2.5 Cultural Environment 6

2.2.6 Technological Environment 7

2.3 S.W.O.T 8

3 3 STDP 9

3.1 Segmentation 9

3.2 Targeting 9

3.2.1 Main customer 9

3.2.2 Targeting strategies 10

3.3 Differentiation 11

3.3.1 Product: 11

3.3.2 Service: 11

3.3.3 People: 11

3.4 Positioning 12

3.4.1 Value proposition: 14

V CONCLUSION: 15

VI REFERENCES 16

APPENDIX 1: 19

APPENDIX 2: 20

Company description.

In 1990, Masan Group was just a local instant noodles factory in Russia and found by Mr NguyenDang Quang; not until 2001 was Masan officially introduced to the Viet Nam market Masan Group, in otherwords, is known as the Masan Group Joint Stock Company (Hai 2012) They are one of the leading businessgroups in the Vietnam economy Masan Group focuses on consumer goods and resources of Vietnam,intending to become the number one business group in Vietnam; Masan has continuously grown in recentyears Masan Group owned several subsidiaries in which are Masan resources, and especially MasanConsumer Corporation The company's main area of expertise is the production and distribution of food andbeverage products Their products have started to export to markets such as the United States, Canada,France, Russia, Poland, Japan, China (Truc 2018) In 2016, Masan consumer was ranked 7th in the list of Top

50 most valuable FMCG (fast-moving consumer goods) brands of Vietnam (Thanh Nien, 2016) However, inthis report, we will focus on Kokomi instant noodles of Masan Consumers

Product description.

In recent decades, it is irrefutable that instant noodles have played an integral part in everybody'sdaily life since it provides them enough nutrition, energy with tasty flavor (TCVN 2004) Thus, to respond tothe market demands for noodles, Masan has presented Kokomi to the market in 2011 (Masan Group 2012) Inrecent years, it becomes one of the consumers' prominent instant noodles in Viet Nam, which uses uniqueseasoning methods that top-up shrimp soup sauce to the overall toughness and chewy texture of thenoodles Kokomi instant noodles have a specific recognizable red color along with reasonable price and high-quality packaging According to (Haymoda n.d), Masan's Kokomi is ranked 2nd in the Viet Nam instant noodlemarket share

Shopee, Tiki) (Appendix 1) but not available widely on the company’s website (Masan Consumer 2021).

Strength:

Masan products are dense, and they cover one of Vietnam's biggest retailers, Vinmart and Vinmart +,because of Masan's acquisition It is one of the best advantages of Masan since every region of Vietnam has aVinmart or Vinmart + store Furthermore, collaboration with supermarkets and major distribution networkssuch as Big C, Coop Mart will benefit Masan in boosting sales as they have a large and reliable consumer base.Masan also supports online sales through well-known shopping sites such as Tiki and Shopee, making Kokomiitems more accessible to people who do not have time to go shopping, and they could gather as manycustomers as possible

Weakness:

Lack of product information on Masan’s website, problematic for consumers to buy its products throughMasan’s online selling platform

3.1.3 Customers.

A research of Nguyen (2020) stated that the Vietnamese consumption for instant noodles ranked top

5 globally, with 5.43 billion servings, up 4.4 percent year-on-year; proof of the considerable consumptionquantity of Vietnamese people in terms of this product It is said by the CEO (Chief Executive Officer) of thecompany, Nguyen Van Thang, that the goal of Masan's instant noodles is to be a decent meal, healthy meal,not only a "Ready-to-eat" product This method helps increase the revenue of instant noodles to 38% in 2019and even higher in 2020 (Thuong Truong 2021) According to Masan, their target audience are all personal.However, at the beginning of 2021, the Vietnamese Government has increased 40 working hours per week,and most of the instant noodle companies target audiences ages from 18s to 30s Thus, we can conclude thatMasan has the same target consumers ages for their products (Audience insight 2020)

Opportunity:

Based on the above information, it becomes one of Kokomi's most important opportunities as theyoung generation becomes busier Many people will choose instant noodles because of their quick and neatfeatures when they want to save time and effort to concentrate on their jobs Furthermore, the fact thatVietnam's instant noodle industry ranks fifth in the world implies the high demand for instant noodle As a

3.1.4 Publics.

Masan's contributions to the communities are also considerable In 2019, Masan donated 40 millionVietnam Dong for the V-league in 5 years to encourage sportsmanship in the nation (Tuoi Tre online 2019).The company sponsored 280 million VND and accompanied by the program "Save lives of little hearts" of theSponsoring Association Disability According to the Masan Consumer report, the company donated 500instant noodles boxes to the typhoon's casualty in the middle of Vietnam (Masan Consumer 2021) Theseactions promote Masan's image and their sustainability with the community in the present to the future

Strength:

Kokomi has developed a positive reputation for its brand by doing charity work and contributing a lot

of money and its goods, which has helped Kokomi's brand image become closer to the public

Since Masan Consumer has one of the largest systems, it creates jobs for 4,600 employees; itsGeneral Director is always looking forward to diversifying goods, customers' potential domestically andinternationally Moreover, the working condition is also a crucial factor for the GD: the employees constantlyupgrade modern labor protection equipment The company's goal is to create an engaging and fair workingenvironment that their employees feel comfortable working in In their annual report in 2018, Masan is proud

to be among the best places to work in Vietnam With varieties of supports from Masan, the company goal is

to seek new talents and helps the employees to archive their goals

Strength:

One of the strengths and distinguishes of Kokomi compared to other brands is the parent company ofKokomi — Masan group With its extensive experience through Omachi products, Masan could prevent manymistakes in developing the Kokomi products Besides, Masan is a large corporation with many companies,departments providing an efficient and professional working environment In addition, Masan has started toapproach overseas markets by opening a subsidiary in Thailand (Masan Consumer Thailand) This makes it easierfor Masan to access overseas markets as they have already begun to build foundations in markets other thanVietnam and have started to export their products (Hang 2020) On the other hand, the cooperation betweenTechcombank brings economic benefits to both parties Based on the above statement from the Techcombankwebsite, Masan enjoys a lot of financial supports from them, such as large and stable debts

Hao, SiuKay, Quang Noodle Quen of Danang, Udon Suki Suki, Yummi, De Nhat, and non-fried noodle blocks Acecook proudly said on their website that during the two consecutive years of 2018 and

2019, they are also recognized as "the most selected instant noodle manufacturer," the "spearhead" brand of the company For the most popular product, Hao Hao Noodle is also honored as "The Most Selected Food Brand" in Vietnam (as of July 2019) in urban areas (Acecook 2019) Besides local instant noodles brands, many international brands are also looking forward to joining the Vietnam market Nongshim Vietnam reported, "$2.53 million in sales and around $135,000 net income in the first six months of this year." (Vnexpress 2019) Moreover, on the market, sour and spicy spices are the most popular for instant noodles Due to the information of Chao Hanoi News (2020), the top 5 instant noodles have similar tastes which are sour & spicy.

Threat:

One of the challenges to Kokomi in the Vietnamese noodle market is its late launch compared to othernoodle brands such as Hao Hao, Miliket, and others Since Acecook and Miliket have established their brands for along time and captured vast market shares Furthermore, big brands such as Acecook and Miliket have loyal andconsistent customers, limiting the number of Kokomi target customers Moreover, in the Vietnamese market, asinstant noodle has become one of the dishes that Vietnamese people are familiar with due to its speed andconvenience, several brands have introduced new noodle lines to meet the needs of customers

Weakness:

Based on the above information, the instant noodle market is currently highly competitive, asincreased brands emerge with the same sour and spicy flavors based on Vietnamese people's typical tastes.Therefore, in terms of taste, Masan has no breakthroughs or unique characteristics

3 MACROENVIRONMENT.

3.1.7 Demographic environment.

From 2010 to 2020, Vietnam has increased its population by 10 million, reaching over 97 million people in 2020 (Pyramid Population 2010-2020)

Opportunity: the rising in population would boost the demand for food in long-term.

However, the young people population (18 – 30 years old) decreased from 29% to 22.5% compare to

2010 (Pyramid Population 2010-2020)

Threat: This would negatively affect the sales of Kokomi instant noodle since 18 – 30 years old

population are the target customers

3.1.8 Economic environment.

Despite the impact of the COVID 19 pandemic, the Vietnamese economy still receives a growth in GDP(Gross Domestic Product), specifically 2.9% in 2020 (The World Bank 2021) However, 45% of households informthat their household incomes have been reduced in January 2021 compared to January 2020 (Tran et al 2020)

Opportunity:

During the Covid pandemic, many families feared the disease, so they rushed to buy storage items toavoid moving and contacting in crowded places Therefore, the most chosen food products are suitableproducts with a long shelf life and challenging to go rancid, such as canned food, instant noodles With such amindset of storing food to avoid diseases in the future, the number of instant noodles consumed is rising,assisting instant noodle manufacturers in increasing sales

Opportunity:

The pandemic negatively affects Vietnamese customers’ purchasing power Nonetheless, this doesnot affect Masan consumers since their products are not targeted toward high-income households but themedium-to-low-income ones Due to the income reduction among households, consumers tend to buyproducts from Masan Group, which are affordable and ready-to-use.

Threat:

Moreover, this poses a challenge to Masan in general and Kokomi in specific The outbreak of Covid

19 in Vietnam has also led to social distancing It means that Masan might have to stop producing to complywith the government's request, which led to the interruption of Masan's production process Besides, manyKokomi materials for production also have a specific expiry date; stop production may cause those materials

to expire and cannot be used The making of the noodle packages will be affected Moreover, the socialstretch would make it difficult for people to buy things, which could reduce Kokomi's sales

3.1.9 Natural Environnement.

These days, many developing countries choose to invest in the economy in exchange for theirenvironment This problem leads to environmental problems such as climate change and air pollution.Vietnam, as a developing country, is no exception Thus, going environmentally friendly is a big concern forVietnamese consumers and firms

Customers tend to consume products from firms that are actively protecting the environment Knowingthis, Masan Consumer undertakes waste treatment and sustainable energy management to minimize the negativeimpact that their products may negatively effect on the environment (Masan Annual Report 2019)

Masan Consumer is trying its best to control wastewater Using advanced water monitoring systems,they preserve and keep track of their water usage efficiently Masan Consumer Holding has invested in Dutch-designed wastewater treatment plants in production factories in Binh Duong, Hai Duong, and Nghe An tominimize their wastewater and re-circulated up to 7% of them for watering plants and cleaning workshops(Masan Annual Report 2019)

However, in 2020, there were many complaints about how Masan is causing pollution to the nearbyareas The locals informed that the polluted air is making them sick Moreover, the close by areas which used

to be crowded now only has a few people due to the unbearable smell from Masan factories Others alsoreported that Masan factories keep discharging wastewater without any covering, which makes awful smellreaches local areas (Dang D 2020)

This is not the first time that Masan Consumer has been reported for polluting the environmentdespite their attempts to protect the environment and control wastewater Masan must pay close attention tothis issue because scandals like this will negatively affect their sales and Masan’s overall image

Threat & Weakness:

Environmental issues are one of Masan's threats Today, environmental issues are being noticed, andMasan harms the environment is widely condemned Even when Masan takes steps to protect theenvironment and try to mitigate the negative consequences it caused; the results are still unsatisfactory Thelow ability to solve environmental problems is also a weakness of Massan

3.1.10 Political Environment.

In Vietnam, the food and beverage industry are controlled by three departments: Ministry of Industryand Trade, Ministry of Health (MOH), and Ministry of Agriculture and Rural Development The MOH hassupreme power in terms of decisions (Ngoc Thu 2015)

“Ministry of Industry and Trade focuses on press activities, which specializing in research on science,economics, business and technology in the industrial and commercial sector” (Ngoc Thu 2015)

Ministry of Agriculture and Rural Development is a governance agency management system in thefields such as agriculture, salt production, water services, and rural development nationwide (Ministry ofAgriculture and Rural Development 2021)

The Ministry of Health is responsible for improving health, wellbeing and creating long-term healthpolicy programs Masan Consumer must pay close attention to this ministry because it influences most of thedecisions Regarding the health policies, Masan Consumer is very proficient in the quality of their productsand the health of their consumers

Vietnam’s instant noodle consumption had risen from 4.8 billion servings in 2015 to 5.43 billionservings in 2019, and it is still increasing (Dat Nguyen 2020) Overall, it is inferred that instant noodle hasbecome a part of Vietnamese’s people everyday life It is considered a must-have item in every householddue to its low price and ready-to-eat characteristic Moreover, instant noodle provides a reasonable amount

of nutrients, and it is easy to eat

Even though the Vietnamese instant noodle market is desirable with such high consumption volumes,

it is not easy for instant noodle manufacturers to succeed regarding many competitors However, MasanConsumer’s instant noodles such as Omachi, Kokomi, and Tien Vua are very profitable and welcomed in theVietnamese market According to Vietnam Investment Review, Masan Consumer made about 5 trillion VND($220 million) from instant noodles per year

Refer to “Opportunities” part of section 2.1.3

3.1.12 Technological Environment

Masan Consumer uses biogas technology from betel and sawdust to generate energy for all the factories

Biogas is the natural gas created from the breakdown of organic bacteria and is often used in energy production.

(Masan Consumer Annual Report 2019) “Biogas is primarily composed of methane gas, carbon dioxide, and traceamounts of nitrogen, hydrogen, and carbon monoxide It occurs naturally in compost heaps, as swamp gas, andbecause of enteric fermentation in cattle and other ruminants” (Badurek 2020)

Using biogas gas, Masan Consumer can protect the environment while simultaneously having tospend less regarding energy and create jobs for the locals According to Masan Consumer Annual Report

2018, they have spent 225 thousand tons of gas and 54.300 kW of electricity Moreover, about 27% ofMasan’s packaging is made of renewable materials using advanced technology

The company informs it that the cost of imported raw materials has been reduced to 70% of the totalraw cost of materials used over the years To ensure that the raw materials are high-quality, Masan Consumerrequires import license, analysis, inspection raw materials delivered from non-GMO plants, and food safetylicenses There is a need for a quality control system for food safety and hygiene and quarantine animals andfarming methods The qualified suppliers will be rated as “home offers approved” and will be committed tocooperating under an annual contract

Strength: By owning high technology system, Masan effectively controls the quality of its products.

Specifically, the non-GMO system's invention has successfully created safety products for customers withguarantee quality Because of this new technology, Masan has given customers confidence in product quality

At the same time, Masan not only save enormous energy but also shrinkage the damage that deal to theenvironment because of the Biogas

2.3 S.W.O.T

Big mother company

Mansan, Techcombank & Vinmart have

strong relationship

Has subsidiary in Thailand (Masan

Consumer Thailand Limited)

Guarantee quality and safe products because of

the non-GMO technique

Strong finance support from Techcombank

Trustable product resources

Brand image increases because of their

Already approached the international market

Many people stockpile canned foods and instant

noodles to prevent the prolonged Covid 19

Late entry into the market

The goverment provision helps Masan to

minimize the risks in their production process

Environment problem

The social distancing because of the Covid 19.The group of people from 18-30 years old is decreasing

Many competitors in the market

3 STDP 3.1 SegmentationSegments

Segmentation Demographic

Psychographi c