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

Masan Group focuses on consumer goods and resources of Vietnam, intending to becomethe number one business group in Vietnam; Masan has continuously grown in recent years.. Thus, to respo

KOKOMI SITUATION ANALYSIS Group ID: HN_G4_ Team 4

Memebers of Kokomi Team:

Trinh Thao Linh - s389178 Dinh Nguyen Vu Dang – s3819269

Dao Dieu Hoang Ha - s3878361 Nguyen Gia Huy - s3908767

Do Minh Anh - s3766202 Le Duc Minh s3878477

WORD COUNT: 5000 words.

TABLE OF CONTENTS

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

2Company description.

In 1990, Masan Group was just a local instant noodles factory in Russia and found by Mr Nguyen DangQuang; not until 2001 was Masan officially introduced to the Viet Nam market Masan Group, in other words, isknown as the Masan Group Joint Stock Company (Hai 2012) They are one of the leading business groups in theVietnam economy Masan Group focuses on consumer goods and resources of Vietnam, intending to becomethe number one business group in Vietnam; Masan has continuously grown in recent years Masan Groupowned several subsidiaries in which are Masan resources, and especially Masan Consumer Corporation Thecompany's main area of expertise is the production and distribution of food and beverage products Theirproducts 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, in this report, we will focus onKokomi instant noodles of Masan Consumers

Product description.

In recent decades, it is irrefutable that instant noodles have played an integral part in everybody's dailylife since it provides them enough nutrition, energy with tasty flavor (TCVN 2004) Thus, to respond to themarket 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 the noodles.Kokomi instant noodles have a specific recognizable red color along with reasonable price and high-qualitypackaging According to (Haymoda n.d), Masan's Kokomi is ranked 2nd in the Viet Nam instant noodle marketshare

by buying VinMart, VinMart +, and VinEco into its system and directly managing it (Viet Nam News 2019).Moreover, most of Masan’s products are available on the digital shopping channels (Bach Hoa Xanh, 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

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) Thecompany 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 500 instantnoodles boxes to the typhoon's casualty in the middle of Vietnam (Masan Consumer 2021) These actionspromote 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; its GeneralDirector is always looking forward to diversifying goods, customers' potential domestically and internationally.Moreover, the working condition is also a crucial factor for the GD: the employees constantly upgrade modernlabor protection equipment The company's goal is to create an engaging and fair working environment thattheir employees feel comfortable working in In their annual report in 2018, Masan is proud to be among thebest places to work in Vietnam With varieties of supports from Masan, the company goal is to seek new talentsand 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 iteasier for Masan to access overseas markets as they have already begun to build foundations in markets otherthan Vietnam and have started to export their products (Hang 2020) On the other hand, the cooperationbetween Techcombank brings economic benefits to both parties Based on the above statement from theTechcombank website, Masan enjoys a lot of financial supports from them, such as large and stable debts

3.1.6 Competitors.

There are varieties of competitors targeting the same audience as Masan, and some of themost significant rivals are Miliket, Asian Food, Vina Acecook However, the most influential company inthis long run is Vina Acecook that has the most significant market shares (Tuoi Tre Online 2020) Thiscompany has the most popular instant noodle in Vietnam with more than 20 brands, including Hao

Hao, SiuKay, Quang Noodle Quen of Danang, Udon Suki Suki, Yummi, De Nhat, and non-fried noodleblocks 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 SelectedFood Brand" in Vietnam (as of July 2019) in urban areas (Acecook 2019) Besides local instant noodlesbrands, many international brands are also looking forward to joining the Vietnam market NongshimVietnam reported, "$2.53 million in sales and around $135,000 net income in the first six months ofthis year." (Vnexpress 2019) Moreover, on the market, sour and spicy spices are the most popular forinstant noodles Due to the information of Chao Hanoi News (2020), the top 5 instant noodles havesimilar tastes which are sour & spicy

Weakness:

Based on the above information, the instant noodle market is currently highly competitive, as increasedbrands emerge with the same sour and spicy flavors based on Vietnamese people's typical tastes Therefore, interms 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 does notaffect Masan consumers since their products are not targeted toward high-income households but the medium-to-low-income ones Due to the income reduction among households, consumers tend to buy products fromMasan 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 comply withthe government's request, which led to the interruption of Masan's production process Besides, many Kokomimaterials for production also have a specific expiry date; stop production may cause those materials to expireand cannot be used The making of the noodle packages will be affected Moreover, the social stretch wouldmake it difficult for people to buy things, which could reduce Kokomi's sales

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 also reportedthat Masan factories keep discharging wastewater without any covering, which makes awful smell reaches localareas (Dang D 2020)

This is not the first time that Masan Consumer has been reported for polluting the environment despitetheir attempts to protect the environment and control wastewater Masan must pay close attention to this issuebecause 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 the environmentand try to mitigate the negative consequences it caused; the results are still unsatisfactory The low ability tosolve 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 the fieldssuch as agriculture, salt production, water services, and rural development nationwide (Ministry of Agricultureand 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 products andthe health of their consumers

Opportunity:

The government's food safety and hygiene targets would make Masan more careful in production Ithelps to minimize food safety risks as well as customer complaints about quality and hygiene

3.1.11 Cultural Environment.

As mentioned in 2.1.3, Vietnam holds fifth place in the instant noodle market with 5.43 billion servings,

up to 4.4% year-over-year However, Vietnam has the highest rank regarding the average serving population,with 56 servings per person a year (Dat Nguyen 2020)

Vietnam’s instant noodle consumption had risen from 4.8 billion servings in 2015 to 5.43 billion servings

in 2019, and it is still increasing (Dat Nguyen 2020) Overall, it is inferred that instant noodle has become a part

of Vietnamese’s people everyday life It is considered a must-have item in every household due to its low priceand ready-to-eat characteristic Moreover, instant noodle provides a reasonable amount of nutrients, and it iseasy 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 thefactories Biogas is the natural gas created from the breakdown of organic bacteria and is often used in energyproduction (Masan Consumer Annual Report 2019) “Biogas is primarily composed of methane gas, carbondioxide, and trace amounts of nitrogen, hydrogen, and carbon monoxide It occurs naturally in compost heaps,

as swamp gas, and because of enteric fermentation in cattle and other ruminants” (Badurek 2020)

Using biogas gas, Masan Consumer can protect the environment while simultaneously having to spendless regarding energy and create jobs for the locals According to Masan Consumer Annual Report 2018, theyhave spent 225 thousand tons of gas and 54.300 kW of electricity Moreover, about 27% of Masan’s packaging ismade 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 Atthe 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 Strength

 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 charity

work

Weakness

 Lack of information in Masan website Hard for people to buy Masan products in their website

 No breakthroughs or special characteristics

 The ability to solve evironment problem is weak

Opportunity

 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

Threat

 Environment problem

 The social distancing because of the Covid 19

 The group of people from 18-30 years old isdecreasing

 Many competitors in the market

43 STDP 3.1 Segmentation

Segments

Segmentation

People under 18 years old

People from

18 to 30 years old

People from

31 to 59 years old

People from

60 and above

Occupation

Mostly NonePupils

Mostlystudents,White and bluecollars and

Unemployed

Mostly whiteand bluecollarsunemployed

Mostlyretired, andunemployed

Income(Base onquintile)

NonePocket money(General StatisticsOffice 2020)

About988.000vnđ– 4.954.000vnđ(GeneralStatistics Office2020)

About988.000vnđ–3.330.000vnđ(GeneralStatisticsOffice 2020)

About988.000vnđ–3.330.000vnđ(GeneralStatisticsOffice 2020)

Psychographi

c

Socialclass

Lower lowersupper lowersworking classmiddle class

Lower lowersupper lowersworking classmiddle class

Lower lowersupper lowersworking class

Lower lowersupper lowers

Lifestyle Parent's dependenc

eHigh study load

StriverSurvivorsIntense studyand workload

Striversurvivors

SurvivorsEmptynesters

Behavioral Attitudes Lazy

Do not know how

to cook

Money saversWork addicted

Lazy/busy

to cook

Moneysavers

Moneysavers