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

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
Company chosen : Masan Consumer
Brand chosen : Omachi Noodles
Member : Tran Doan Thanh Trang – 1704040123
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 report is divided into 8 main parts: Company
Introduction, Current marketing situation, SWOT analysis,
Main Issues, Marketing Objectives, Marketing Strategies,
Action Program and Illustrations for your proposed action
program



Page I 1


Masan Consumer Joint Stock Company (Masan Consumer) was formerly known
as Viet Tien Technology - Engineering - Trading Joint Stock Company,
specializing in the production of processed foods and condiment products.
Established in 1996, Masan Consumer has quickly maintained its leading
position in the food and beverage industry in the domestic market after
transforming from a purely export model. To date, Masan Consumer has
become a billion-dollar revenue company with a diversified and trusted

portfolio of product brands in the field of consumer goods (“FMCG”).
Masan Consumer is involved in most of the FMCG segments, including
convenience foods (instant noodles & porridge), condiments (soy sauce, fish
sauce, chili sauce), processed meats (pasteurized sausages, etc.) pork balls),
soft drinks, coffee, cereals and cosmetics. According to Kantar World Panel,
98% of Vietnamese households use at least one Masan Consumer product in
2020 (Annual Report 2020). At the same time, Masan Consumer is in the top 5
largest F&B companies in Vietnam in terms of revenue and in the top 10 most
valuable brands in Vietnam.
According to Euromonitor, Masan Consumer has the largest market share in
the fish sauce industry with 29.8%, the second largest in the instant noodles
industry with 20.0% - just behind Acecook Vietnam (unlisted) and the third
largest in the market. energy drink market. In addition, the company also leads
in the segment of instant coffee (about 40% market share) with two main
brands, 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 clear message: 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 the body and
offered a potato noodle solution to alleviate that doubt. The key point of the message is that
Omachi products focus on the health 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 Sauce Flavor”, “Salted Egg Cheese Sauce Mix Flavor”,
“Super Spicy Shrimp Flavor”, “102 Beef With Pickle”, “102 Spicy Seafood Hot Pot”, “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 from nature. Chemicals are completely excluded in the noodle
production process and additives and preservatives are also not found. Omachi provides
consumers with enough protein, starch and energy for the customer's body.
Logo :

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 also make sense. Omachi in Japanese means “wait a minute”,
the prominent “Omachi” written in red, inspires customers to, as the company claims, “an
irresistible temptation.”. The circles as seen in the letters O, A, C and I in the logo represent
the company's careful selection of components. The 5 stars symbolize the outstanding
quality of the products and the company's ambition to enhance 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 instant noodles. The product packaging is designed with nylon, so it is
waterproof and helps products to avoid being damaged during transportation. Packaging

has attractive and impressive colors and images to attract customers at first sight. Besides,
Omachi noodles not only have many flavors of noodles, but also have many different
packaging forms like pack, cup, bowl and various packaging 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

Masan Consumer launches Omachi Cup – complete meal solution and Omachi mashed
potatoes. Next, the company also entered the ultra-premium market with Omachi Cup
Noodles - Business Class, a solution for delicious, nutritious meals with vegetables and
meatballs

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2. Product classification:
Like many other instant noodle brands, Omachi is classified as a convenience product
because consumers can buy it in many places such as supermarkets, grocery stores or local
markets. Besides, the outbreak of the COVID-19 pandemic has limited going out, so most
consumers have turned to home-cooked meals and stored dry food for a long time. Therefore,
the demand for packaged foods such 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 of consumers. In 2020, Omachi instant noodles
dominate the high-end segment with 45% market share, becoming the best-selling brand in
supermarkets, convenience stores and the best-selling bowl of noodles in the country
(Vietdata,2021). Currently, Omachi is taking steps to maintain growth and avoid a drop in
sales profits as much as possible.

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Different from other instant noodles, Omachi is the first instant noodle product in Vietnam
made from potato fiber with seasoning packages completely extracted from natural
vegetables and fruits, so the price of these products is very low. Omachi is more expensive
than the average in the market. In return, customers will 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 a penetration pricing strategy by offering a very
competitive price to win the hearts of customers and gain market share as well as increase
brand awareness. Omachi's noodles such as "Five Fruit Stew Ribs", "Thai Steamed
Clams", "Korean Hot Pot" and "Salmon Cooked with Bamboo Shoots" are all priced at
3,000 VND/pack (in 2007). In addition, Masan Consumer also launched Omachi Nutrition
Than Dong Noodles with many additional benefits for children thanks to the DHA content in
the noodles. Continuing to apply intensive pricing strategy for the new product, three
flavors of noodles such as "Shrimp With Cheese Sauce", "Pork Stew with Vegetables",
"Chicken Stew with Milk" were all priced at 5000 VND/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
within a competitive price with other types of noodles such as Hao Hao noodles (3500
VND/pack), Hello noodles (3500VND/pack), De Nhat Noodles (5500 VND/pack) and AOne noodles (5400 VND/pack).

After successfully entering the market, Masan Consumer has applied a premium pricing
strategy to enhance the value of Omachi Instant Noodles as well as want customers to
remember this 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 different flavors to help customers
have more choices. Omachi not only retails 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 more convenience because they do not
need to buy many times. For example, a pack of Omachi - Braised Pork Rib Flavor noodles
costs 7,500 VND. If buying in a combo of 5 packs/bag, it will cost 37,000 VND (7,400
VND/pack). If you buy in a box of 30 packs, it will cost 205,000 VND (6,883 VND/pack).
Thus, it can be seen that the more quantity you buy, the better the price you will get. This
pricing strategy is extremely reasonable and effective 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 about price, and they always
prefer to buy goods at a lower price than usual. Understanding customer psychology,
Omachi has often launched promotions at retailers or distribution agents to satisfy
customers' 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
discounted products. Thus, applying a promotional pricing strategy not only helps
Omachi increase its accessibility to customers but also increases sales significantly for
the brand.

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Masan is developing two main distribution channels: traditional distribution system
and modern distribution system. Masan Consumer has effectively applied a
corporate vertical 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 supermarkets such as BigC, Top
Market, Coop Mart, Maximax system, etc. In
addition, Masan also encroached on the field of ecommerce when choosing to cooperate with Alibaba
- an experienced partner in the field of e-commerce,
which already has a foundation, rich resources and
technology strengths.

Page I 10


Specifically, The CrownX - Masan's subsidiary will cooperate with Lazada - Alibaba's ecommerce platform in Southeast Asia to develop the online retail market in Vietnam. In
which, VinCommerce aims to become the leading retailer of necessities on this ecommerce platform.( Tuoitre Online, 2021). Moreover, on 21/09/2021, Masan
officially entered the telecommunications field when completing the acquisition of
70% shares of Mobicast Joint Stock Company (Mobicast) with a total cash value of VND
295.5 billion. This is considered the first step for Masan to digitize the “Point of
Life”consumer ecosystem and bring an integrated product and service experience from

offline to online. (Thành Trung, 2021)

Masan has successfully exported its products to countries and regions around the globe, including
Europe, USA, China, Australia, Korea, Japan, Thailand, Cambodia, Canada, Russia and Taiwan. Loan.
Therefore, not only Vietnamese people but also foreigners in different regions can access and use
Masan products - Vietnamese pride (Masanconsumer.com, n.d)

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Firstly, Masan mainly focuses on
television commercials as a means of
promotion. From 2019 to 2020, the
company 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 midrange 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, and

product reviews by celebrities. It is seen as
an effective strategy because it not only
attracts many followers but also increases
consumer confidence in its products.
Thanks to this interaction, Omachi has
acquired a large number of followers on
its official Facebook and Youtube
channels

In particular, each clip review of famous
people has the number of views and
interactions up to several tens of
thousands. Moreover, thanks to the
appearance of many review clips,
consumers feel hungry and they feel
that Omachi noodles are really
convenient and fast. Celebrities also
respond to interested consumers by
responding to comments that help
improve consumer decision-making.

Page I 12


Next, Omachi is also a brand that regularly applies promotions at retail points and
distribution agents. Promotions can be mentioned such as: buying a certain quantity
will get more noodles 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 Omachi noodles. Moreover, Masan cooperates with e-commerce
websites such as Tiki or Lazada to carry out promotional sales campaigns. Omachi's

application of promotions not only helps satisfy customers' wishes but also
significantly increases sales for the brand.
Moreover, Masan applies Public Relations (PR) tools and events to attract and manage
communication between the company and its publicity. A representative of Masan
Consumer Corporation said: “Supporting community development and implementing
social responsibility have always been in the sustainable development goal of Masan
Consumer from the first day of its establishment until now” (Quynh Chi, 2020).
Understanding the difficulties and hardships of frontline epidemic prevention officers
and people, Masan Consumer quickly donated more than 12,000 boxes of products
including food and nutritional drinks to 200 border guard posts and 611 anti-epidemic
checkpoints along the Southwest border; 1,000 boxes of Omachi noodles and 500
boxes of Hari-Hari bird's nest juice, to people and workers in Bac Giang and Bac Ninh
provinces; 600 boxes of essential products including Wake-Up 247 energy drink, Ponnie
sausage, Vinacafé 3in1, Kokomi noodles… to 22 border checkpoints in Que Phong
district, Nghe An province and Po Hen border post, Quang Ninh province ; ... (Tuoitre.vn,
2021)

Page I 13


Masan Group uses the following criteria to select suppliers:
●
●
●

Reputable: limit risks and do not escape
Quality: Brand enhancement and food safety
Confidentiality of raw materials: security for the continuous production process,
information thereby contributing to a stable job for employees in the company

Because Omachi's raw material production is extremely popular and 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 Company are Masan Industry Joint
Stock Company, Masan Phu Quoc Joint Stock Company, and Joint Stock Company of Viet Tien
Joint Stock Company. All three of these companies are members of Masan Group, so the
company's relationship with application providers is very convenient. The two parties link and
support each other, so their business activities are very convenient. The company has always
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 consumes about 52 packs of instant noodles per year on average, becoming the
world's fourth largest instant noodle consumer after China, Indonesia, and India. Degree,
Japan. The package of noodles in Vietnam is about VND 24,000 billion, equivalent to over
USD 1 billion.

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

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

Instant Porridge, Noodles/Noodles/Instant Pho:
Although products such as instant porridge or instant noodles/Hu Tieu/Pho are not as
popular as instant noodles, they still have great appeal with a stable sales volume and
high growth potential in the future. the coming years. Compared to instant noodles, these
products are considered to be less likely to cause side effects due to heat in the body or
acne, etc. Some outstanding brands: Saigon Food Baby fresh porridge, Do Do porridge
(Asian company), De Nhat pho, Phu Huong vermicelli, …
Eateries
Vietnam is a "Food Paradise" that is highly appreciated by many countries. This becomes
a threat to companies or brands in the FMCG industry, because Vietnamese people can
easily find food thanks 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
potential Omachi customers.

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

In order for Omachi noodles to be widely distributed, it is necessary 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 to best meet the needs of customers.

The distribution intermediaries of Omachi include distributors, wholesalers, retailers,
organizations and businesses such as supermarkets, grocery stores, etc. The selection of
marketing intermediaries 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 will contribute to advertising images for the
company's products in particular and the company in general. This will make it easier to
bring products to customers when they have a need, it will contribute to increased sales for
the company.
Not only that, but thanks to wholesale and retail agents, online shopping applications also
help Omachi reduce a significant amount of costs compared to opening their own stores.
Marketing intermediaries such as supermarkets, agents, etc., do well in marketing
products, selling, transporting to consumers or not, quickly and promptly to meet the
needs of customers…, which helps increase the prestige and reputation of the company
and products, 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., do well in marketing
products, selling, transporting to consumers or not, quickly and promptly to meet the
needs of customers which increases the prestige and reputation of the company and
products, affects the ability to consume products of Omachi.

A financial intermediary is an entity that acts as the middleman between two parties in a

financial transaction, such as a commercial bank, investment bank, mutual fund, or
pension fund ( James Chen, 2020)
From the strategic partnership with Masan, Techcombank provides capital for agents and
distributors of Masan's goods. Customers can designate their own accounts to pay for
goods to Masan (limiting customer ownership costs).
A special feature here is that the bank knows this supply chain well, so the loan period is
flexible to match the customer's capital need cycle, not a fixed term of 3 or 6 months
"The advantage is that distributors only need 25% to 40% of their own capital to trade in
the products manufactured by Masan Consumer", a representative of Techcombank said.
Techcombank also accepts up to 100% of goods as collateral and has 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 the supply chain financing model, such as with HTC, or Vingroup
with purchasing agency financing. and sponsor individual customers to buy for use.
This model is like a kind of niche market. It is niche, but the combination with a leading
company in each field, such as Masan's dominance in FMCG, will bring a huge potential
market for Techcombank.

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Vietnam's economy is changing rapidly, reflected in increasingly deep and sophisticated
supply chains. Each business only plays a certain role in that supply chain. For banks, the
development of financing activities for the supply chain also promotes economic growth,
like credit activities.

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

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With prices ranging from VND 7,500 to VND 18,000, Omachi chooses to market its products
in the mid-range and high-end segments. To approach this segment, Omachi chose the
solution of making noodles with potatoes to remove consumers' fear of heat. Choosing this
segment and conveying a very practical message "don't be afraid of heat" is an excellent
strategic choice of Omachi, causing sales of this product line to increase.

Omachi's target market is young people (from 18 years old to 35 years old) with busy
lifestyles who do not have enough time to prepare their own meals and want to use noodles
so that they can save time and cost. Besides, Omachi noodles are made from potatoes, so
they are "very delicious without fear of heat" and "not afraid of acne". This message hits the
psychology of women, so Omachi's target customers are mainly women. In addition,
children, students, housewives and office workers are also potential customers that Omachi
noodles are targeting.

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As appeared on the perceptual outline, Omachi shows their solution for
driving positions for making noodles with potatoes to remove consumer’s fear of heat and
advertising premium products. As Omachi came out late, Omachi was able to hit users' fears
that instant noodle-based products can cause heat in the body, and introduced a solution of
potato noodles to dispel that doubt. In addition, Omachi ranked No. 2 in terms of market
share, beating both the long-standing brand Vifon and another strong manufacturer, Asia

Food.
Omachi is a convenient and fast product but still good for health and
delicious.

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