INTRODUCTION
Founded in 1996, Masan Group is a leading private company in Vietnam, recognized for its significant market capitalization The group's diverse subsidiaries span various sectors, including consumer staples through Masan Food, financial services via Techcombank, and mining with Masan Resources Since its inception in 2000, Masan Food, also known as Masan Consumer, has gained prominence, ranking 7th among the top 50 prestigious brands in Vietnam in 2016 and securing the 2nd position in the Consumer Goods category.
Masan Consumer, a leading food and beverage company, specializes in producing a diverse range of products including fish sauce, soy sauce, chili sauce, instant noodles, instant cereal, instant coffee, and bottled beverages The company exports its offerings to various countries, including Canada, the USA, Germany, China, and Laos Notably, the Omachi instant noodle, launched in 2007, has emerged as the most popular product in their lineup.
This report seeks to analyze the company's marketing strategy in comparison to its competitor, Acecook, which is best known for its leading product, Hao Hao instant noodles The primary objectives of this analysis are to identify key insights and evaluate the effectiveness of the marketing approaches employed by both companies.
Task 1: Compare ways in which organization use elements of the marketing mix (7Ps) to achieve overall business objectives
Task 2: Develop and evaluate a basic marketing plan for the company.
MAJOR FINDINGS
The difference between Omachi and Hao Hao in using elements of the marketing
1.1 Marketing mix of Omachi compared with Hao Hao
According to Philip and Gary (2011), marketing mix is the set of tactical marketing tools that the firm blends to produce the response it wants in the target market.
Historically, organizations adhered to the Marketing 4Ps framework, which encompasses Product, Price, Place, and Promotion However, the introduction of the Marketing 7Ps model has expanded this approach by incorporating three additional elements: People, Process, and Physical Environment This enhanced framework will be utilized to analyze the marketing strategy of Omachi instant noodles in a more detailed manner.
Masan Food is one of the most successful companies in terms of doing campaign.
Omachi instant noodles, the latest innovation in Vietnam, are crafted from high-quality potatoes and are free from ingredients linked to heart disease, cancer, or diabetes Utilizing advanced Japanese technology and AVE-ITALIA's automated production line, Omachi adheres to European HACCP food safety standards and is certified by the ISO 9001:2000 Quality Management System With a diverse range of flavors, including Omachi Spaghetti and spicy and sour hotpot, Omachi has quickly gained popularity despite entering the market later than competitors, thanks to its commitment to food safety The brand emphasizes health by replacing traditional noodle ingredients with potatoes, aligning perfectly with its positioning in the high-end market segment.
The name "Omachi" significantly contributes to the brand's popularity, as it is both catchy and meaningful; in Japanese, "Omachi" translates to "wait a little bit." The striking red lettering of "Omachi" leaves a lasting impression on customers, reinforcing the brand's identity.
The logo's circular elements in the letters O, A, C, and I reflect the company's meticulous ingredient selection, while the five stars signify the exceptional quality of the product and Masan Food's goal to elevate Omachi's sales internationally Additionally, the packaging highlights that this noodle is uniquely made from potatoes, setting it apart from traditional varieties, and offers consumers the convenience of cup noodles.
Launched in 2000, "Hao Hao," which translates to goodness and perfection, is an instant noodle product by Acecook designed for affordability, making it accessible to lower-income consumers The brand embodies a simple yet impressive image, emphasizing quality and safety Manufactured using Japanese standards and technology, Hao Hao benefits from continuous expert supervision, ensuring high product quality Since its market introduction, Hao Hao has remained a trusted choice for consumers prioritizing safety and quality in their food options.
In comparing the instant noodle brands Omachi and Hao Hao, it is evident that consumer perceptions differ significantly between the two Omachi is associated with a premium image, appealing primarily to higher-end consumers, while Hao Hao targets the middle and lower classes with a broader range of flavors and popular cup noodle options Despite some consumers feeling that Hao Hao does not significantly differ from other instant noodles, the brand has introduced Hao Hao Vegetable, promoting a healthier alternative.
Consumers often prioritize convenience when choosing noodles, yet many harbor concerns about the potential heat generated by instant noodles in the body This is particularly relevant for the high-middle market segment, where there is a growing emphasis on healthy eating To address these concerns and effectively position the brand, Omachi has opted to produce noodles made from potatoes, alleviating consumer fears about health while catering to their demand for convenience.
Vietnam's robust economic growth is elevating the high middle segment's market presence, yet entering the high-end segment, priced at VND 3,000 per product or more, may not be prudent The country offers numerous competitive alternatives for premium noodles, leveraging a wide-reaching sales network that includes popular dishes like pho, noodle soup, porridge, sticky rice, and rice cakes (Nguyen, 2017).
Price plays a crucial role in the marketing mix, encompassing wholesale pricing, retail pricing, and discounts It should align with the value perceived by customers while remaining competitive in the market As of 2018, Omachi Potato Noodle is priced at 6,000 VND per package and 170,000 VND per box of 30 packages, making it widely available across cities and towns in Vietnam.
Instead of pricing as high as its other products, Masan's Omachi pricing is lower than Hao Hao's: Omachi 3,500 per package compared to 3,600 to 4,000 per package
Hao Hao primarily targets low-income Vietnamese consumers in rural areas, particularly students, by offering their products at an affordable price of 3,600 VND per package Employing a market penetration strategy, Hao Hao plans to introduce a diverse range of uniquely flavored products next year, priced at just 2,500 VND per package.
Acecook has implemented cost-effective strategies by significantly reducing its reliance on imported materials Previously, Vina Acecook sourced nearly all of its production materials from abroad; however, in recent years, the company has successfully replaced over 95% of these materials with domestically sourced alternatives.
Vina Acecook Instant Noodles stands out for its use of advanced, high-tech equipment, enabling the efficient production of high-quality noodles at a low cost This modern technology maximizes the potential of raw materials, allowing for the simultaneous manufacturing of a large quantity of products.
Laboratories with modern facilities, applying quality management standards ISO 9001: 2000; ISO 14004: HACCP that create many new products, ensure quality, safety, low cost and food hygiene.
Omachi's distribution channel operates from manufacturer to retailer and then to the consumer, with Masan focusing on the consumption of Omachi noodles In response to the growing trend of Vietnamese consumers gravitating towards modern distribution methods like supermarkets, Masan has strategically chosen to distribute its products through retail channels Omachi noodles are available at major retail supermarkets such as Big C, VinMart, Coop Mart, and Maximax, allowing consumers to select their preferred product lines This approach targets end consumers, encouraging them to purchase in small but consistent quantities.
Omachi potato noodles are currently distributed through key channels such as supermarkets, markets, and grocery stores The brand has established direct relationships with over 300 distributors and supplies more than 190,000 retailers To enhance market presence, Omachi's distribution strategy focuses on expanding its dealer network and improving the quantity and quality of its distribution channels.
Masan has effectively leveraged its extensive distribution network to seamlessly integrate the distribution of Omachi products alongside its well-established Chinsu products, which have garnered consumer loyalty over the years With a robust presence across more than 64 provinces, the strong distribution network of Chinsu has significantly enhanced the availability and reach of Omachi products, ensuring they resonate with a broad audience.
Acecook decided to create a nationwide marketing and distribution system with more than 700 distribution outlets across the country, each with a branch office in Hanoi,
Da Nang, Can Tho , HCMC The strong development of distribution channels enabled the company to sell more and make a large profit.
Developing an essential marketing plan
In 2007, Masan entered the convenient food market with the introduction of Omachi, a premium instant noodle brand Notably, Omachi is recognized as Vietnam's first instant noodle made from potato-based noodle yarn In 2017, Masan Consumer's Omachi was honored as one of the "Top 100 Products & Services Used & Trusted" by readers of the Vietnam Economic Times.
Vision of Masan Consumer: Recognized as Asia's leading and most successful consumer company by 2020.
Mision of Masan Consumer: Constantly create breakthrough value and as every day we improve the material and spiritual life of consumers.
Masan Consumer aims to converge and nurture aspirations and talents to achieve breakthroughs that enhance the value of our products and services for customers This commitment not only fosters customer satisfaction but also drives sales, resulting in sustainable growth for the company.
Humans are assets, a human resource of competition.
Pioneering in exploration with the desire from winning.
Cooperating to develop together, harmony of interests with partners.
(Using PESTEL & 5 FORCE) Marketing strategy of Masan food at the present time:
To prevent shortages similar to those experienced in 2009, it is essential to sustain the existing product line while simultaneously expanding the distribution network, ensuring that products are conveniently accessible to consumers.
Add a new product line is the glass noodles having real meat in order to meet the demands of customers and create value cuisine.
Put the label on the number one brand position in the premium market segment in terms of retail value
- Clear marketing strategy and detailed calculations helped Omachi make correct choice about target consumer segment.
- Corporate brand is an advantage when knowing appropriate exploitation.
Omachi has developed a precise deployment plan that aligns seamlessly with its launch timing and media activities This strategy ensures that business initiatives are synchronized with ongoing projects, fostering effective dialogue and communication intensity that is well-suited to the brand's goals.
- Marketing message of each product hits the target consumer expectations and expresses in a language that clear, simple and easy to receive.
Omachi heavily invests in advertising, with Masan leading the charge for a high-profile campaign featuring Omachi noodles The television commercial showcases popular personalities like My Linh, Bao Anh, and Phuong Bich, ensuring frequent visibility on major channels Notably, in 2015, Omachi enlisted Ngoc Trinh to model for the promotional campaign "Tree of Love," further enhancing its marketing efforts.
- Young population and the potential market to exploit
- Instant noodles market continuously developing market and Vietnam's instant noodle consumption ranks fourth in the world
- Joining the WTO is a great opportunity to export products Omachi instant noodles overseas markets in order to expand the scope of the company
- Omachi has policy to support from the state so they can limit the competition from foreign brands
- There are more and more brands of good quality, lower prices than Omachi like Hao Hao This hits the pockets of consumers Thereby affecting their purchase decision.
According to Tuyet Nga (2017), the competition continues, espcially with the top
In Vietnam, three companies dominate the market, holding around 80% of the share: Acecook, Masan Consumer, and Asia Foods Recently, intense competition has led to a significant decline in Acecook's market share, which has fallen to 45% This shift has made Omachi products more recognizable among diverse consumer groups, subsequently boosting Masan's market share.
24 In less than 5 years, Omachi had helped propel Masan Food’s market share from 0 to21% in 2012, 24% in 2017 and now rank 2th in the instant noodle market, only after the longstanding Acecook (Nha Trang, 2017) Therefore, the marketing objective of the company in 2018 is to replace Acecook and become the company that has the most market share in Vietnam Moreover, Masan also will focus more on the convinient and quality of the products For example, while in the past, the image of an ideal bowl of noodle was only manifested on the wrapping, Masan has come close to the actualization of such image in Omachi products Nonetheless, it is inevitable that the prices are higher: up to 20.000 VND per product.
Market segmentation is the initial step in identifying and evaluating potential market segments for a marketing campaign Typically, each company targets a specific segment, while competitors may focus on different areas within the industry This strategic approach allows businesses to tailor their marketing efforts effectively to meet the needs of their chosen audience.
The instant noodle market in Vietnam is highly competitive, primarily catering to low-end and mid-range consumers such as students, office workers, and those with limited time for meal preparation Most consumers prefer affordable instant noodles over premium options, as they seek value for money Retailers focus on stocking low-priced products that maintain quality to maximize profits, particularly appealing to low-income individuals Despite the growing popularity of high-end instant noodles imported from countries like Korea, Italy, and Japan, affordable options continue to dominate the market share Vietnamese suppliers are strategically targeting this segment, aiming for sustainable growth before venturing into higher-priced products Overall, pricing strategies in the instant noodle industry reflect the preferences of Vietnamese consumers.
Market targeting involves selecting the appropriate market segment after assessing business resources and conducting segmentation analysis The enterprise evaluates each segment's potential and strategically chooses one or more segments to pursue for market entry.
In the previous marketing strategy of Omachi, they had targeted in the mid-rage and high-end instant noodles segmentation with the prices (6.500 VND to 13.000VND).
To attract more consumers, Omachi's marketing strategy focuses on the low-cost instant noodle segment while also aiming to sustainably develop middle and high-end products The company must increase production to capture a larger share of the affordable noodle market Unlike competitors like Hao Hao, which offers a variety of products, Omachi currently only has the underdeveloped Omachi Chua Cay in this segment To better target low-income consumers, such as students and employees, Omachi needs to diversify its product offerings By strengthening its presence in the cheap noodle segment, Omachi can enhance brand popularity and connect more closely with customers.
To enhance its market share, Omachi should focus on expanding its presence in the mid-range and high-priced product segments Currently excelling in the low-price market, Omachi can attract new customers by introducing its midrange products to this segment through strategic marketing initiatives, such as offering diverse flavors and running promotions that incentivize purchases Additionally, as Vietnamese consumers' incomes rise, there is a growing demand for high-quality instant noodles, which presents an opportunity for Omachi to develop premium products Competing with imported brands priced between 18,000 VND and 40,000 VND, Omachi must prioritize creating high-quality offerings at reasonable prices to capture this lucrative market.
Product Positioning: Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.
Omachi is the second leading instant noodle brand in Vietnam, trailing behind Hao Hao primarily due to weaker promotional strategies While Hao Hao invests significantly in charitable initiatives, such as supporting homeless children and individuals with disabilities, Omachi's advertising efforts have not captured consumer attention effectively Despite these challenges, Omachi holds advantages over foreign brands, including a closer connection to local customers and more competitive pricing.
Omachi possesses distinct advantages and disadvantages regarding its popularity To enhance the brand's presence, Omachi must implement a unique marketing strategy that leverages its strengths while addressing its weaknesses.
2.6 Allocation of resources (Budget and people allocation)
2.7 Evaluating and Monitoring marketing plans
APPENDIX
Masan Food strategically positions Omachi noodles in prominent locations within malls and supermarkets such as MegaMarket, BigC, and Coop Mart By placing their products at entrances and promotional areas, the company effectively captures consumer attention Their eye-catching booth arrangements for instant noodles encourage shoppers to easily reach for and purchase their products.
Orders placed in the supermarket are at the fingertips of consumers This is also the strategy of the company.
Inappropriate placement of other brands.
LIST OF REFERENCES
Acecook Vietnam is renowned for its Hao Hao Noodle, a popular instant noodle product Their production process is meticulously detailed on their official website, showcasing the quality and care that goes into making their noodles For more information about Hao Hao Noodle and Acecook's production methods, visit their website at acecookvietnam.vn.
BachhoaXANH.com (n.d.) Siêu thị Bách hoá XANH - Mua bán thực phẩm, sản phẩm gia đình [online] Available at: https://www.bachhoaxanh.com [Accessed 12 Nov
Centre Mall offers a variety of products including My Omachi Tom Chua Cay 5 Sao (112g) and Suon Ham Ngu Qua/Xot Bo Ham (113g) These products are available for purchase online, enhancing convenience for customers For more details, visit their website at [Centre Mall](http://www.centremall.vn/my-omachi-tom-chua-cay-5-sao-112gr-suon-ham-ngu-quaxot-bo-ham-113gr).
In 2011, H Doan explored the marketing phenomenon of Omachi within the instant noodle industry, highlighting its innovative strategies that contributed to its success The article, published on Quangcao360, emphasizes the brand's effective marketing techniques that resonate with consumers and set it apart in a competitive market Accessible online, this analysis offers valuable insights into the dynamics of food marketing and consumer engagement.
Hung, V (2018) Thị trường mì ăn liền khó… 'ăn liền' [online] The Leader Available at: https://theleader.vn/thi-truong-mi-an-lien-kho-an-lien-1530848649846.htm [Accessed
Masan Consumer (2018) Annual Report [online] Available at: http://static2.vietstock.vn/data/HNX/2017/BCTN/VN/MCH_Baocaothuongnien_2017 pdf [Accessed 8 Nov 2018].
Masan Consumer, (2018) MASAN GROUP :: CHIN-SU [online] Available at: https://www.masanconsumer.com/chinsu/category/products/3 [Accessed 10 Nov. 2018].
Masan Consumer has outlined its vision for 2020, focusing on transformative strategies to enhance its market position in the consumer goods sector The company aims to innovate and adapt to changing consumer needs while fostering a strong corporate culture By leveraging its resources and capabilities, Masan Consumer is committed to driving sustainable growth and delivering value to its stakeholders For more information, visit their official website.