Vuong Hai Anh - 10170377 - ME - A2 Tran Le Hoang An - 10170310 - ME - A2 Bui Duc Minh Hai - 10170404 - ME - A2 Bui Tan Nghia - 10170446 - ME - A2 Kiyoshi Tani - ES001818 - ME - A2
Vuong Hai Anh - 10170377 - ME - A2 Tran Le Hoang An - 10170310 - ME - A2 Bui Duc Minh Hai - 10170404 - ME - A2 Bui Tan Nghia - 10170446 - ME - A2 Kiyoshi Tani - ES001818 - ME - A2
Vuong Hai Anh - 10170377 - ME - A2 Tran Le Hoang An - 10170310 - ME - A2 Bui Duc Minh Hai - 10170404 - ME - A2 Bui Tan Nghia - 10170446 - ME - A2 Kiyoshi Tani - ES001818 - ME - A2
This report is going to describe than analyze the marketing mix and develop a new
marketing strategy for Omachi instant noodles by Masan Group. The first part – marketing
mix, in this part we will mention 7Ps (including products, price, place, promotion, people,
process, and physical evidence) of the product. Furthermore, these 7 elements are in
comparison with Omachi’s competitor – Hao Hao by Vina Acecook; and then to see how
these factors help the company to achieve its objective. In the next part, we will create a new
product for Omachi and also make a new marketing plan for it. It contains SWOT analysis,
segmenting, targeting, positioning, new marketing mix, budget allocation and monitoring
plan.
2 MARKETING MIX
Price Omachi applies premium Hao Hao instant noodles Comparing the price
pricing strategy with high first appeared with of two products, it is
price than domestic brands relatively low price with obviously that
at 6000- 8000 VND. the current price around HaoHao is have price
Omachi’s price is high 3000-4000 VND. Since as their competitive
because the product is the brand first appeared advantage since its
made from potato starch, in 2000, the price of Hao price is more
which means more Hao has only changed affordable for
nutrition values but higher due to the inflation, and Vietnamese.
cost of inputs. With this remained at the cheapest However, the two
price, Omachi targets section. The price of Hao products target
upper middle income class Hao is cheap because different customers,
in Vietnam, who wants the the Japanese technology the price differential is
convenience but also can produce mass understandable.
requires the healthy value. quantity of instant noodle
under short period of
time while still assures
food safety standard.
[ CITATION Tha162 \l
1033 ]
Place Omachi sells instant Hao Hao instant noodle Because both brands
noodle through various is identical product like distribute their
distribution channel: Omachi so the products through
retailers (bodegas, distribution channels that different levels of
convenience stores, the brand use is similar. sellers so the product
supermarkets) and can easily be
websites; it could say that approached by the
they are using indirect consumers through
distribution channels. many selling points
Moreover, Omachi instant around Vietnam.
noodles is placed all over
Vietnam, including big
supermarket (BigC, Metro,
Vinmart), groceries, family-
sized stores.
Promotion Omachi applied pull Similar to Omachi, Hao Both Omachi and Hao
strategy for promotion Hao also uses TV Hao using celebrities
since they have the brand advertising. However, to promote for their
loyalty already. The Hao Hao chose Hoai products. However,
advertising channel Masan Linh and Toc Tien as the celebrities chosen are
uses to promote Omachi is main actor and actress in impacted the result.
television. The 2 latest their promotion video. For Hao Hao,
commercials of Omachi Based on Hao Hao choosing Hoai Linh
had the appearance of commercial, the might help to attract
trending 2 singers: Bao message is apparently higher age groups
Anh, Bich Phuong. To be showing the friendly of while Toc Tien
specific, both videos use the brand to Vietnamese represented for
trending celebrities who people. The instant younger age;
have released music hits noodles fit both young consequently, Hao
recently to introduce about and old culture. Hao could reach to
new Omachi products. However, this different groups of
With top celebrities like advertisement seems to customer. On the
Bich Phuong and Bao Anh, proving the position of other hand, Omachi
Omachi implies that their Hao Hao with the slogan: might only attract
new products are “Hao Hao – legend young customers
fashionable. noodle”. when choosing Bao
Anh and Bich Phuong.
People In Masan Consumer, most Because Vina Acecook is Japanese-oriented
members of the board a subsidiary of Acecook staff are the
directors have working Company, so all the advantage of
experience in well-known products including Hao VinaAcecook because
FMCG firms like P&G, Hao instant noodle have Vietnamese people
Unilever. Masan to follow Japanese tend to favor
Consumer also provides standard. Furthermore, Japanese products
many training sessions the board of directors in over domestic
during the year for their VinaAcecook are mostly products (Hang Dao &
employees with Japanese and they Heidt, 2017).
approximately 36000 frequently hire food However, due to the
training hours in 2017 for experts from Japan to fact that Masan
5100 employees. (Masan test new batch of Consumer’s
Annual Report, 2017) noodles to deliver the employees have
most delicious working experienced
experience to the in top FMCG and
consumers. strictly trained, they
are clearly qualified
enough to gain the
trust from the
customers.
Process Omachi noodle is originally The process of Different process of
made from potato starch manufacturing Hao Hao making and also
and wheat flour. These instant noodle is similar different ingredients
ingredients would then be with Omachi. However, might lead to different
mixed toghether with salt, Hao Hao use turmeric taste; which is
water to form dough extract to mix with wheat significant for each
texture. After that, the flour instead of using brands.
dough is transferred potato starch. This
through 2 pressing rollers, makes their noodle be
which squeeze the dough more saturated.
into noodle belts.
Afterwards, the noodle
belts are cut into thin
noodles, which then be
steamed, fried and cooled
before wrapped into
package with seasoning.
To ensure the quality of
each Omachi package,
Masan Consumer hires
around 300 quality
assurance experts and
they have to follow 4 steps
in inspecting the product:
input checking, final
products monitoring,
warehouse inspecting and
distributor verifying.
Physical Omachi did not show any Hao Hao instant noodle It seems like the
Evidence distinction in term of first appeared in 2000, change helped
design when they first and the package-design Omachi attract more
appeared in Vietnamese has remained unchanged customers, and it is
market with variety of until the present. important especially it
brands in 2009. Therefore, was at the launching
the design team has time.
introduced 2 major
changes that made
Omachi became standout
at the time, namely layout
and heading. (Nguyen Hao
Nhien, 2013)
Company Objective in general is to drive the profit higher. Firstly, products factor helped
Masan to position in the market. Appeared with a differentiate statement about instant
noodles, it was successfully attract customers in strongly competitive market, resulting in
30% of market share in 2011 (Masan Annual Report, 2011). Secondly, with the price 6,000 –
8,000VND per pack, Masan expected Omachi to bring the revenue about 4,500 billion VND
in the end of 2018. Thirdly, Omachi is distributed widely in the market; and combining with
the commercial using celebrities. Consequently, it raised people awareness about the
product since they can caught it in anywhere. Not to mention the influence of superstars on
the products consumption, especially using very well-known people to promote the products.
When all these 4 main factors came together, increase revenue also profit is undoubtedly.
3 MARKETING STRATEGY
“To be Vietnam’s leading company in consumer product field by sales, profitability and
brand recognition;
To be the destination for top talent and recognized as the best workplace in Vietnam;
and
In 2017, Masan Consumer was the second best Food and Beverage Vietnamese company
and the company was also rewarded Vietnam Top Quality Product.
Alongside with honorable achievements, Masan Consumer also accumulated the second
highest consumer reach points with the total of 345 million reach points from 39 million
points in urban cities (Hanoi, HCMC, Can Tho, Da Nang) and 306 million in rural areas.
[ CITATION Kan181 \l 1033 ]
3.2 Current Marketing Situation Analysis
According to the micro and macro environment analysis in the Appendix, resulting in the
SWOT below:
Strengths Weaknesses
Generous investment, strong Working on several different fields,
financial capacity. could not focus on instant noodles.
More than 160,000 stores around Late entered, hard to compete with
Vietnam, easier to approach other big brands in the market.
customers
High brand recognition, large
amount of market share.
Opportunities Threats
Limit foreign imports policy by the Extremely high competitive among
government, reduce competitors. instant noodles brands in the
Vietnam ranked fifth in instant market.
noodles consumption, increase
the market, and increase
revenue.
People care more about health,
matched with Omachi’s strategy.
Based on the marketing mix also the SWOT analysis, we plan to develop a new product –
Omachi oil-free Udon.
3.3 Marketing Objectives
The marketing objectives will be evaluated base on SMART tool.
Marketing objective #1
“By the end of the first quarter in 2019, increase the discussion about the new released
product to 10000 interactions on social media through the use of PR, advertising; so as to
raise the customer awareness about the product”
Criteria Explanation
Specific The objective has fully explained the result, deadline and method
with detailed numbers, tools needed.
Measurable 100000 interactions are the tangible evidences for completing the
objective.
Achievable This objective is attainable since Omachi has reputation and
experiences with social media. In the past, Omachi’s commercials
or campaigns has attracted the attention of Vietnamese people on
social media. Different strategy and appropriate use of tools are the
key to success.
Relevant The objective is relevant to the current situation of Omachi, the
brand has just released the product so rising customer awareness
is inevitable.
Time-bound 31st March 2019 is the deadline of the objective.
Marketing objective #2
“To increase sales 10% from the previous product – mashed potato on 1 st January 2019 at
the rural areas of Vietnam by creating campaigns that relates to Vietnamese tradition
culture”
Criteria Explanation
Specific The objective has stated a clear description with time, method,
result, subject to achieve the desired outcome.
Measurable 10% higher than the sales of mashed potato is the result of
success.
Achievable This objective is attainable because Masan Consumer (the parent
company of Omachi) is the second most chosen brand in the rural
area[ CITATION Kan181 \l 1033 ]. Therefore, Omachi is widely
recognized in the rural area, the company only needs to attract the
customers.
Relevant The objective is relevant because new product should have higher
result than the previous and should become the key player of the
company.
Time-bound 1st January 2019 is the deadline day.
C o n s id e re d fa c to rs wh e n b u y in g fo o d o f V ie tn a me s e , Oc to b e r 2 0 1 8
(A d a p te d fro m Q& Me re p o rt o n fo o d c o n s u mp tio n in V ie tn a m 2 0 1 8 )
68
50
47
45
42
20
Doing surveys: In order to know about customers’ opinion on the product for further
development and see if the promotion plan achieved the expected result.
Check the revenue: To know about the increasing/ or decreasing in revenue; thus to
have immediately plan to address problems.
Check the return on investment: To calculate all the cost incurred and profit earned, if
the product show high performance then we can continue otherwise we stop.
4 CONCLUSION
The report mentioned about the marketing mix and one single element could directly
impacted the effective of a product. There are 4 main factors when comes to a product,
which is products, price, place, and promotion; they linked together to help earn the
company objective. Additionally, there are 3 more elements (people, process, and physical
evidence) also considered as important in modern marketing world. Moving to the next
section, it helped you to understand clearly on how to develop an effective marketing
strategy. This required the knowledge about market, people behaviors, and products. After
went through different steps of analyzing and evaluating, we prepared the budgeted costs
for the marketing campaign and gave out factors to calculate the effectiveness of the
campaign.
5 APPENDIX
SWOT analysis
Internal
Capital: Masan Consumer has the generous investment from foreign countries when it first
entered Vietnam (infonet.vn, 2018). Specifically, following the agreement with Singha,
Masan received 1.1 billion USD as investment. This could be a great strength of the
company when it has strong financial supported to develop new products for customer. For
instance, Omachi recently launched Omachi cup noodles with 100% real meat; and they are
changing this product into their main one. Surprisingly, this increased Omachi revenue by
64% in the first quarter of 2018 (Nguyen, 2018).
Company: As stated in Masan Group’s annual report in 2011, Masan Consumer provides
different products, such as fish sauces, instant noodles, and chili sauces. They also
mentioned that the company has more than 160,000 stores over Vietnam. Due to the fact
that they have a huge number of stores, it helps to approach customers easily. On the other
hand, Masan Consumer invested in too many different fields; as a result, they could not
focus on instant noodles market.
Competitors: When Omachi by Masan Consumer entered the instant noodles market, this
market had already competitive. Some brands have been in the market for long time,
especially Vina Acecook. According to Minh Huu (2017), market share of Vina Acecook
significantly reduced 3 years after Omachi started in the market; and now big brands are
fiercely compete in branding and gaining market share. This considered as a weakness of
the company due to the late entered that made them not strong enough to compete with
brands which were already in the market.
External
Political/Legal: According to Vinanet.vn (2017), from 2018, the government applied the policy
which is limit foreign imports and exports. Fortunately, the policy is such an opportunity for
the firm which with this, the chance for foreign instant noodles brands to compete in Vietnam
market is quite low.
Economic: Vietnam is the fifth country in consuming instant noodles, as stated in the World
Instant Noodles Association report (cited in Kim Oanh, 2018). In addition, there are many
brands provide instant noodle and everyone want a piece in the market share, resulting in
the fact that different noodles are launching every day to compete with each other. While
Vietnam is the 5th most consume noodles in the world, which means there could be more
revenues. However, it also leads to a sad fact about the strongly competitive in Vietnam
market.
Socio-cultural: People now are tend to care more about health. According to Reeves and
Rafferty in 2005, several health organizations has recommend and prepare clear guidelines
in order to emphasize the essential of healthy lifestyle. In Vietnam, as reported in some
researches by Q&Me, people nowadays concern a lot about health and shape situation. For
Omachi, the brands which have very unique strategy from the beginning – not afraid of hot,
then this could be an amazing opportunity since the product itself aimed for health conscious
people.
6 REFFERENCES
Nguyen Hao Nhien, 2013. Different from minor changes: A real case of Omachi. [Online]
Available at: https://www.ecoblader.com/2013/10/khac-biet-tu-nhung-thay-doi-nho-mi-khoai-
tay-omachi/ [Accessed 15 November 2018].
Heidt & Dao, H., 2017. Why Consumers in Developing Countries Prefer Foreign Brands: A
Study of Japanese Brands in Vietnam. Journal of Promotion Management, pp. 398-419.
Masan, 2017. Masan Annual Report , s.l.: Masan Corporation.
Forbes Vietnam, 2018. Masan Consumer networth is 238 miilion USD. [Online]
Available at: https://tinnhanhchungkhoan.vn/doanh-nghiep/thuong-hieu-masan-consumer-
co-gia-tri-238-trieu-usd-239848.html [Accessed 24 November 2018].
Kantar Worldpanel, 2018. Brand Footprint 2018 in Vietnam, s.l.: Kantar.
Kotler, P. and Armstrong, G. (2018). Principles of Marketing. 17th ed. Pearson Education.
Please give a mark of 100 to the group member(s) who you believed made the greatest
contribution to the group (other than yourself). Please rate the contribution of each other
member of your group on a scale of 0 to 100. You are not required to rate your own
contribution.
Briefly reflect your effort that contributed to group assignment. Generally, answer ALL FOUR
below questions:
(1) What part(s) of group assignment you have contributed? (Do not list down the name of
the contributed parts; you need to present it in detail)
I did the STP, Tactics and Actions, budget allocation and monitoring plan. I also collected
separated parts from other members and made it a complete assignment.
(2) Did you face any difficulty when doing group work?
Yes, I do. The most difficult thing when working in group is we have too many different ideas
and we need to find a way to balance all of that. Another thing is that, sometimes students
don’t do the work seriously.
(3) How did you solve that problem?
We have a meeting, as a group, and we talk about our ideas and then others pointed out
what is right and what is wrong and in the end we summarized it.
(4) What your future plan to deal with group work?
My future plan to deal with group work is that to have a meeting at very first time so every
members could know each other and know what they have to do in the group work!
INDIVIDUAL CONTRIBUTION FORM
Please give a mark of 100 to the group member(s) who you believed made the greatest
contribution to the group (other than yourself). Please rate the contribution of each other
member of your group on a scale of 0 to 100. You are not required to rate your own
contribution.
Briefly reflect your effort that contributed to group assignment. Generally, answer ALL FOUR
below questions:
(1) What part(s) of group assignment you have contributed? (Do not list down the name of
the contributed parts; you need to present it in detail)
I did task 1 such as price and task 2 such as Micro, Macro, SWOT and the price for task 2
tactics and action. In terms of the video, I thought of all the cuts, filmed all the cuts, and
edited all the part of the video.
(2) Did you face any difficulty when doing group work?
Yes, I did. Masan is Vietnamese company, so I couldn’t read a lot of reference.
Please give a mark of 100 to the group member(s) who you believed made the greatest
contribution to the group (other than yourself). Please rate the contribution of each other
member of your group on a scale of 0 to 100. You are not required to rate your own
contribution.
Briefly reflect your effort that contributed to group assignment. Generally, answer ALL FOUR
below questions:
(1) What part(s) of group assignment you have contributed? (Do not list down the name of
the contributed parts; you need to present it in detail)
I have written the first part about 7P marketing mix and SWOT, SMART objectives in the
second part. Also, I have proposed the presentation plan for the team.
(2) Did you face any difficulty when doing group work?
We have faced some problems, mainly about agreeing on the final decision or choosing the
new product.
Please give a mark of 100 to the group member(s) who you believed made the greatest
contribution to the group (other than yourself). Please rate the contribution of each other
member of your group on a scale of 0 to 100. You are not required to rate your own
contribution.
Briefly reflect your effort that contributed to group assignment. Generally, answer ALL FOUR
below questions:
(1) What part(s) of group assignment you have contributed? (Do not list down the name of
the contributed parts; you need to present it in detail)
I have gathered information about 7P marketing mix and prepare my presentation.
(2) Did you face any difficulty when doing group work?
We only had some arguments about the assignment.
Please give a mark of 100 to the group member(s) who you believed made the greatest
contribution to the group (other than yourself). Please rate the contribution of each other
member of your group on a scale of 0 to 100. You are not required to rate your own
contribution.
Briefly reflect your effort that contributed to group assignment. Generally, answer ALL FOUR
below questions:
(1) What part(s) of group assignment you have contributed? (Do not list down the name of
the contributed parts; you need to present it in detail)
I have contributed in the making of 7P and came up many ideas about our promotion video.
(2) Did you face any difficulty when doing group work?
We had some small arguments.