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

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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 skinbeautifying 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 highend 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 A-One
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 e-


commerce
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.

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