PRINCIPLES OF MARKETING PROJECT REPORT masan consumer joint stock company (masan consumer)

Understanding this demandof customers, companies have produced a series of instant products such as noodle soup, porridge, noodles,.... Masan Consumer is involved in most of the FMCGsegm

HANOI UNIVERSITY FACULTY OF MANAGEMENT AND

TOURISM

PRINCIPLES OF

MARKETING

PROJECT REPORT

Tutor : Mr Nguyen Minh Duong Subject: Principles of Marketing Class : LEC 1 – TUT 1

Group : 5

Duong Thi Mai Phuong – 1804010084

Nguyen Ngoc Anh –

1904010008

Nguyen Thanh Tung - 1904010092

Hanoi, 2021

As society is developing more and more, people's lives are improving, we also spend more time at work Therefore, consumers have been tending to use more and more utility products Understanding this demand

of customers, companies have produced a series of instant products such as noodle soup, porridge, noodles, Typically, the instant noodle product line has created a competitive market fierce competition with many large companies Instant noodles were born in Japan in 1958 and quickly became one of the most consumed processed foods in the world In the early 90s, instant noodles were present in Vietnam with a wide variety of products Currently, instant noodles in Vietnam are widely used by all classes of people.

In this assignment our team chose Omachi noodles - a famous product of Masan Consumer to build a marketing plan Although born later than products of other companies, Omachi noodle products have quickly been known to consumers This

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Masan Consumer Joint Stock Company (MasanConsumer) was formerly known as Viet Tien Technology

- Engineering - Trading Joint Stock Company, specializing

in the production of processed foods and condimentproducts Established in 1996, Masan Consumer hasquickly maintained its leading position in the food andbeverage industry in the domestic market aftertransforming from a purely export model To date,Masan Consumer has become a billion-dollar revenuecompany with a diversified and trusted portfolio ofproduct brands in the field of consumer goods (“FMCG”)

Masan Consumer is involved in most of the FMCGsegments, including convenience foods (instant noodles

& porridge), condiments (soy sauce, fish sauce, chilisauce), processed meats (pasteurized sausages, etc.)pork balls), soft drinks, coffee, cereals and cosmetics.According to Kantar World Panel, 98% of Vietnamesehouseholds use at least one Masan Consumer product in

2020 (Annual Report 2020) At the same time, MasanConsumer is in the top 5 largest F&B companies inVietnam in terms of revenue and in the top 10 mostvaluable brands in Vietnam

the third largest in the market energy drink market Inaddition, the company also leads in the segment ofinstant coffee (about 40% market share) with two mainbrands, Vina cafe and Wake up.

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I The level of product

1 Level 1 : Core product

Masan Consumer launched Omachi instant noodles with a clearmessage: potato noodles help consumers not be afraid of heat It's

a great strategy for Omachi products It hit on consumers'concerns about instant noodle products that can cause heat in thebody and offered a potato noodle solution to alleviate that doubt.The key point of the message is that Omachi products focus on thehealth of customers because the kukoamine in potatoes has skin-beautifying and health-promoting effects

Omachi instant noodles come in many different flavors including :

“Braised Pork Rib Flavor”,

“ Beef Stew Flavor”, “ Hot and Sour Shrimp Flavor”, “Crab Flavor”,

“ Spaghetti Sauce flavor”, “Special Minced Beef With Wine SauceFlavor”, “Salted Egg Cheese Sauce Mix Flavor”, “Super SpicyShrimp Flavor”, “102 Beef With Pickle”, “102 Spicy Seafood HotPot”, “4 Minutes Stew Beef Flavor”, “Spicy Beef Flavor”

2 Level 2 : Actual product

Brand name : Omachi instant noodles

Features : The noodles are soft, chewy, and have a beautiful

golden color, mixed with a rich sauce 100% ingredients are fromnature Chemicals are completely excluded in the noodleproduction process and additives and preservatives are also not

Slogan : “Omachi noodles made from potato fibers - Very delicious

without fear of heat”

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Meaning of logo: The name “Omachi” was one factor that made

the brand popular Not only make it sound appealing but alsomake sense Omachi in Japanese means “wait a minute”, theprominent “Omachi” written in red, inspires customers to, as thecompany claims, “an irresistible temptation.” The circles as seen

in the letters O, A, C and I in the logo represent the company'scareful selection of components The 5 stars symbolize theoutstanding quality of the products and the company's ambition toenhance Omachi's sales at the international level The net weight

of an Omachi ranges from 77g as minimum to 120g as maximum

Packaging design : With its vertical shape and black

background, Omachi completely highlights the other instantnoodles The product packaging is designed with nylon, so it iswaterproof and helps products to avoid being damaged duringtransportation Packaging has attractive and impressive colors andimages to attract customers at first sight Besides, Omachinoodles not only have many flavors of noodles, but also havemany different packaging forms like pack, cup, bowl and variouspackaging sizes: carton, 5 packs/bag ; 10 packs/bags or 30 packs/carton that let customers easier to choose and buy

3 Level 3 : Augmented product

the ultra-premium market with Omachi Cup Noodles - BusinessClass, a solution for delicious, nutritious meals with vegetablesand meatballs

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2 Product classification:

Like many other instant noodle brands, Omachi is classified as aconvenience product because consumers can buy it in many placessuch as supermarkets, grocery stores or local markets Besides,the outbreak of the COVID-19 pandemic has limited going out, somost consumers have turned to home-cooked meals and storeddry food for a long time Therefore, the demand for packaged foodssuch as instant noodles has increased sharply around the world

3 Product life-cycle

The instant noodle market in Vietnam in general and Omachi brand

in particular is at a maturity stage due to the increasing demand ofconsumers In 2020, Omachi instant noodles dominate the high-

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Different from other instant noodles, Omachi is the first instantnoodle product in Vietnam made from potato fiber with seasoningpackages completely extracted from natural vegetables andfruits, so the price of these products is very low Omachi is moreexpensive than the average in the market In return, customerswill be able to use high-quality, nutritious products.

Although Masan Consumer first launched Omachi potato noodles

as a completely new product in the market in 2007, it still used apenetration pricing strategy by offering a very competitive price

to win the hearts of customers and gain market share as well asincrease brand awareness Omachi's noodles such as "Five FruitStew Ribs", "Thai Steamed Clams", "Korean Hot Pot" and "SalmonCooked with Bamboo Shoots" are all priced at 3,000 VND/pack (in2007) In addition, Masan Consumer also launched OmachiNutrition Than Dong Noodles with many additional benefits forchildren thanks to the DHA content in the noodles Continuing toapply intensive pricing strategy for the new product, three flavors

of noodles such as "Shrimp With Cheese Sauce", "Pork Stew withVegetables", "Chicken Stew with Milk" were all priced at 5000VND/pack This was a much higher price than the price of 4 types

of Omachi noodles that were on the market at that time but still

After successfully entering the market, Masan Consumer hasapplied a premium pricing strategy to enhance the value ofOmachi Instant Noodles as well as want customers to rememberthis product line as a brand with high quality and safe products.This table below is the current price of basic Omachi noodles :

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Omachi is currently selling a variety of products with differentflavors to help customers have more choices Omachi not onlyretails 1 product, but it also wholesales in cartons (24-30 packs)

or in combos (5 packs/bag, 10 packs/bag) When buying in a box

or in a combo, customers will receive cheaper prices and moreconvenience because they do not need to buy many times Forexample, a pack of Omachi - Braised Pork Rib Flavor noodlescosts 7,500 VND If buying in a combo of 5 packs/bag, it will cost

because it targets people who regularly use instant noodles,large families, and especially price-sensitive people.

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Currently, there are many customers who are sensitive aboutprice, and they always prefer to buy goods at a lower price thanusual Understanding customer psychology, Omachi has oftenlaunched promotions at retailers or distribution agents to satisfycustomers' preferences, making customers feel they are "words" when making a purchase Promotions can be gift way,buying in certain quantities will be given more or discountedproducts Thus, applying a promotional pricing strategy not onlyhelps Omachi increase its accessibility to customers but alsoincreases sales significantly for the brand.

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Masan is developing two main distribution channels:traditional distribution system and modern distributionsystem Masan Consumer has effectively applied a corporatevertical marketing system (VMS) consisting of producers,wholesalers and retailers operating as a single system.

For the traditional distribution

channel, Masan has more than

300,000 traditional retail outlets

covering from urban to rural areas

(Tuoitre Online, 2021) These

distribution points are tier 1 resellers,

markets, grocery stores or retail

stores that supply products on

demand and sell without the right of

redeeming

For the modern distribution channel,

Masan has the advantage of owning a

modern retail system leading in scale

with nearly 2,500 WinMart

supermarkets and WinMart+ stores

nationwide (Tuoitre Online, 2021)

Besides, Masan Consumer products in

general and Omachi instant noodles

in particular are also sold at retail

commerce when choosing to

cooperate with Alibaba

- an experienced partner in the field of e-commerce, which alreadyhas a foundation, rich resources and technology strengths

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Specifically, The CrownX - Masan's subsidiary will cooperatewith Lazada - Alibaba's e-commerce platform in Southeast Asia

to develop the online retail market in Vietnam In which,VinCommerce aims to become the leading retailer ofnecessities on this e-commerce platform.( Tuoitre Online,2021) Moreover, on 21/09/2021, Masan officially entered thetelecommunications field when completing the acquisition of70% shares of Mobicast Joint Stock Company (Mobicast) with atotal cash value of VND 295.5 billion This is considered thefirst step for Masan to digitize the “Point of Life”consumerecosystem and bring an integrated product and serviceexperience from offline to online (Thành Trung, 2021)

access and use Masan products - Vietnamese pride (Masanconsumer.com, n.d)

has launched 3 big TV ads for

their product line on many

national TV channels such as:

VTV1, VTV3, HTV7, HTV9,

All these ads convey a very

practical message "not afraid

of heat" This is an excellent

strategy of Masan because it

hits the user's fear that

instant noodles can cause

heat in the body The key

point of this message is to

focus on user health, which is

very consistent with Omachi's

brand positioning in the

mid-range and high-end segment

Besides, Masan also tries to

reach customers through

social networking platforms

such as Facebook, Youtube,

On these social networking

platforms, Omachi brand often

interacts with followers

through posts, mini games, andproduct reviews by celebrities It

is seen as an effective strategybecause it not only attractsmany followers but alsoincreases consumer confidence

in its products Thanks to thisinteraction, Omachi hasacquired a large number offollowers on its official Facebookand Youtube channels

In particular, each clipreview of famous people hasthe number of views andinteractions up to severaltens of thousands.Moreover, thanks to theappearance of many reviewclips, consumers feel hungryand they feel that Omachinoodles are reallyconvenient and fast.Celebrities also respond tointerested consumers byresponding to commentsthat help improve consumerdecision-making.

Next, Omachi is also a brand that regularly applies promotions

at retail points and distribution agents Promotions can bementioned such as: buying a certain quantity will get morenoodles or equal to the price of each package, buying 10 packs

of Omachi noodles will get gifts (glass bowl, glass plate ),Discount when customers buy 10 packages or a box of Omachinoodles Moreover, Masan cooperates with e-commercewebsites such as Tiki or Lazada to carry out promotional salescampaigns Omachi's application of promotions not only helpssatisfy customers' wishes but also significantly increases salesfor the brand

Moreover, Masan applies Public Relations (PR) tools and events

to attract and manage communication between the companyand its publicity A representative of Masan ConsumerCorporation said: “Supporting community development andimplementing social responsibility have always been in thesustainable development goal of Masan Consumer from thefirst day of its establishment until now” (Quynh Chi, 2020).Understanding the difficulties and hardships of frontlineepidemic prevention officers and people, Masan Consumerquickly donated more than 12,000 boxes of products includingfood and nutritional drinks to 200 border guard posts and 611anti-epidemic checkpoints along the Southwest border; 1,000boxes of Omachi noodles and 500 boxes of Hari-Hari bird's nestjuice, to people and workers in Bac Giang and Bac Ninhprovinces; 600 boxes of essential products including Wake-Up

247 energy drink, Ponnie sausage, Vinacafé 3in1, Kokominoodles… to 22 border checkpoints in Que Phong district, Nghe

An province and Po Hen border post, Quang Ninh province ; (Tuoitre.vn, 2021)

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Masan Group uses the following criteria to select suppliers:

● Reputable: limit risks and do not escape

● Confidentiality of raw materials: security for the continuous production process, information thereby contributing to a stable jobfor employees in the company

Because Omachi's raw material production is extremely popularand easy to replace, Masan will be under less pressure and will not

be dependent on suppliers

The three application providers of Masan Food Joint Stock Companyare Masan Industry Joint Stock Company, Masan Phu Quoc JointStock Company, and Joint Stock Company of Viet Tien Joint StockCompany All three of these companies are members of MasanGroup, so the company's relationship with application providers isvery convenient The two parties link and support each other, sotheir business activities are very convenient The company hasalways stabilized and improved its proactive features

Noodles package is a product that is used variable in the world also

as in Viet Nam According to the World Instant Noodles Association(WINA), it is estimated that each Vietnamese person consumesabout 52 packs of instant noodles per year on average, becomingthe world's fourth largest instant noodle consumer after China,Indonesia, and India Degree, Japan The package of noodles inVietnam is about VND 24,000 billion, equivalent to over USD 1billion

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One of the biggest competitors of Omachi is probablyVinaAcecook Group - the "giant" unique in the instant noodlemarket in Vietnam when it occupies about 51% of the marketshare with famous brands such as Chicken Pho, Hao Haonoodles Asia Foods Joint Stock Company (Asia Foods) alsoparticipates in the market share race with brands such as Do Donoodles, Golden Eggs, etc., accounting for more than 10% of thedomestic instant noodles market share Recently, Asia Foods alsoexpanded a number of factories in the hope of gaining moremarket share, but so far, it has not received positive results.( Tuyết Nga,2017 )

Although they are not part of the instant noodle product line, thecustomer's choice of these products can also affect sales ofOmachi noodles:

Instant Porridge, Noodles/Noodles/Instant Pho:

Although products such as instant porridge or instant noodles/HuTieu/Pho are not as popular as instant noodles, they still havegreat appeal with a stable sales volume and high growthpotential in the future the coming years Compared to instantnoodles, these products are considered to be less likely to causeside effects due to heat in the body or acne, etc Someoutstanding brands: Saigon Food Baby fresh porridge, Do Doporridge (Asian company), De Nhat pho, Phu Huong vermicelli, …

Eateries

Vietnam is a "Food Paradise" that is highly appreciated by manycountries This becomes a threat to companies or brands in theFMCG industry, because Vietnamese people can easily find foodthanks to rice stalls, pho shops, or just trolleys selling noodles …can bring a meal that meets the following criteria: fast, compact,cheap, and nutritious Although these locations do not represent

too much competition, they do capture many existing or potentialOmachi customers.

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Marketing intermediaries are one or many organizations andindividuals, acting as a bridge between manufacturers andconsumers in product distribution Marketing intermediaries arebusiness establishments that support businesses in promoting,selling, and delivering business to consumers They includeProduct distribution intermediaries, distribution supportestablishments, marketing service establishments, financialintermediaries In fact, a distributor can be a retailer,wholesaler, agents, and brokers.

In order for Omachi noodles to be widely distributed, it isnecessary to have a suitable product service supply system:supermarkets, agents, wholesale and retail establishments, etc.,

in which retail is appropriate and available in quantity However,

it is necessary to be flexible for each location, region, etc.Omachi noodle products need to have a variety of products tobest meet the needs of customers

The distribution intermediaries of Omachi include distributors,wholesalers, retailers, organizations and businesses such assupermarkets, grocery stores, etc The selection of marketingintermediaries for the Omachi company is it's not simple

These intermediaries create favorable conditions for consumers

to access products by displaying and selling Omachi That willcontribute to advertising images for the company's products inparticular and the company in general This will make it easier tobring products to customers when they have a need, it willcontribute to increased sales for the company

Not only that, but thanks to wholesale and retail agents, onlineshopping applications also help Omachi reduce a significant

amount of costs compared to opening their own stores Marketingintermediaries such as supermarkets, agents, etc., do well inmarketing products, selling, transporting to consumers or not,quickly and promptly to meet the needs of customers…, whichhelps increase the prestige and reputation of the company andproducts, affects the ability to consume products of Omachi.

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In addition to creating favorable conditions for distributors,agents, wholesalers, retailers, The company is also interested

in the characteristics of the advertising strategy for the brand,which leads to Omachi's successes

Marketing intermediaries such as supermarkets, agents, etc., dowell in marketing products, selling, transporting to consumers ornot, quickly and promptly to meet the needs of customers whichincreases the prestige and reputation of the company andproducts, affects the ability to consume products of Omachi

A financial intermediary is an entity that acts as the middlemanbetween two parties in a financial transaction, such as acommercial bank, investment bank, mutual fund, or pensionfund ( James Chen, 2020)

From the strategic partnership with Masan, Techcombankprovides capital for agents and distributors of Masan's goods.Customers can designate their own accounts to pay for goods toMasan (limiting customer ownership costs)

A special feature here is that the bank knows this supply chainwell, so the loan period is flexible to match the customer'scapital need cycle, not a fixed term of 3 or 6 months

"The advantage is that distributors only need 25% to 40% oftheir own capital to trade in the products manufactured byMasan Consumer", a representative of Techcombank said.Techcombank also accepts up to 100% of goods as collateral andhas a loan-to-value ratio of up to 90%, at the same time,procedures are simplified, and interest rates are reasonable

In fact, this model has been introduced since 2010.Techcombank also cooperates with many other companies in thesupply chain financing model, such as with HTC, or Vingroup

with purchasing agency financing and sponsor individualcustomers to buy for use.

This model is like a kind of niche market It is niche, but thecombination with a leading company in each field, such asMasan's dominance in FMCG, will bring a huge potential marketfor Techcombank

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Vietnam's economy is changing rapidly, reflected in increasinglydeep and sophisticated supply chains Each business only plays acertain role in that supply chain For banks, the development offinancing activities for the supply chain also promotes economicgrowth, like credit activities.

Advertising companies play a very important role in advertisingthe company's brand and products to consumers in the market.When the relationship is not developed well with the advertisingcompanies, it will affect and be detrimental to the company

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