group assignment hao hao marketing case study

<span class="text_page_counter">Trang 2</span><div class="page_container" data-page="2">

DATE: 23/10/2023 – FALL 2023

<b>TABLE OF CONTENT </b>

<b>I.INTRODUCTION____________________________________3II.PROFILE OF ACECOOK STOCK JOINT COMPANY____41. History of formation and development._________________________42. Market share in domestic and international markets._________5</b>

<i>2.1. Domestic market________________________________________________52.2. International market____________________________________________5</i>

<b>3. Vision and mission________________________________________________5</b>

<i>3.1. Vision___________________________________________________________53.2. Mission_________________________________________________________5</i>

<b>4. SWOT analysis____________________________________________________6III. MARKETING STRATEGY OF ACCECOOK JOINT TOCK__________________________________________________7</b>

</div><span class="text_page_counter">Trang 3</span><div class="page_container" data-page="3">

Today, in the era of industrialization and modernization, people are racing against timeleading to a faster life. During this period, people need to search for foods that satisfy thesefactors: cheap, safe, delicious, and convenient. Acecook Vietnam Company has producedmany kinds of instant noodles, including “Hao Hao” instant noodles. Instant noodles are acultural symbol in Japan, and when they entered Vietnam, they researched the tastes andpreferences of Vietnamese people They combined modern Japanese production technologieswith Vietnamese food tastes and produced products that suit the taste of Vietnamese peopleThanks to the constant effort of the brand, “Hao Hao” dominated the market of instantnoodles with the features of intense flavor, low price, quality, and convenience products. Toachieve these accomplishments today, marketing strategy is one of the important factors thatbring success and high efficiency.

</div><span class="text_page_counter">Trang 4</span><div class="page_container" data-page="4">

<b>II. PROFILE OF ACECOOK STOCK JOINT COMPANY </b>

<b>1. History of formation and development.</b>

</div><span class="text_page_counter">Trang 5</span><div class="page_container" data-page="5">

<b>2. Market share in domestic and international markets.</b>

2.1.Domestic market

In Vietnam, there are currently about 50 companies producing instant noodles,including both domestic and foreign enterprises. However, the majority of the market iscomprised of a few businesses, including Masan Group; Asia Foods Joint Stock Company(Asiafoods), and Acecook Vietnam Joint Stock Company.

According to Retail Data statistics (data as of the first 9 months of 2020), AcecookVietnam holds a 35.4% market share in revenue. In 2019, Hao Hao was one of four instantnoodle brands in the top 10 food brands most voted by consumers in rural areas and is theonly instant noodle brand voted by urban consumers.

2.2.International market

Acecook also strives to bring Hao Hao tomore than 47 countries and territories around theworld. Up to now, Acecook Vietnam is proud to havebrought its products around the world, to manydifferent markets including the USA, UK, France,Germany, Netherlands, Sweden, and Canada,... In2019, Acecook's international sales accounted forover 50% of its total sales.

</div><span class="text_page_counter">Trang 6</span><div class="page_container" data-page="6">

<b>3. Vision and missions </b>

3.1.Vision

“To become a leading manufacturer of foodstuffs in Vietnam whose managementcapacity is commensurate with globalization.” Acecook Vietnam will develop into amanufacturer of synthetic foods, expand into an export destination around the world, andbecome a global Vina-Acecook, actively participating in domestic and foreign exhibitionsand fairs. , conducting advertising activities for consumers around the world to trust.

“Providing high-quality products/services HEALTH – SAFETY – PEACE OF MINDfor customers”. "Providing high-quality HEALTH - SAFETY - SECURITYproducts/services for customers". Acecook has a mission to bring consumers products of highquality and safe for human health. Besides, the core value of the company is “Cookhappiness” with three “happy”. Firstly, “Happy customers”, Acecook Vietnam will alwaysstrive to make customersand users of Acecookproducts feel satisfied.Therefore, the companywill always produceand provide delicious,quality, safe products,ensuring to meetcustomer needs.

</div><span class="text_page_counter">Trang 7</span><div class="page_container" data-page="7">

the use of safe materials, using advanced Japanese production techniques, machinery, andequipment to ensure quality, and strictly managing the production process and monitoring thedistribution and management of products on the market, ensuring that quality is not adverselyaffected.

Secondly, “Happy employees”, Acecook Vietnam always strives to make Acecookemployees and their families feel happy. Therefore, the company will always try to create agood welfare regime, and a good working environment, and care about the work and life ofemployees.

Ultimately, “Happy society”, Acecook Vietnam always strives to bring happiness tothe entire society. The company always contributes to the development of the instant noodleindustry in particular and the Vietnamese economy in general, supporting suppliers toimprove quality. In addition, the company also actively sponsors and organizes charity andenvironmental activities to contribute to building a better Vietnamese society.

<b>4. SWOT analysis</b>

- Has a large position in the market.- Strong financial resources.- Modern technology, wire advanced

production transmission.

- There is high foreign investment capital.- Have a good relationship with the media

and the community.

- Haven't made a difference or stood out for thecompany's products with competitors' products.

- There is no diversity in the sample packaging code.

- Nutritional value is not high.

- The COVID-19 pandemic, which increases consumer potential, increases consumption.

- Vietnam joins WTO, this is a developmentopportunity to help Hao Hao to other countries in the world more favorably thanbefore.

- Consumers increasingly care about the quality of products and above all, energy's own health.

- Competition is increasing. Many strong competitors enter the market. Competitors abroad also want to enter the market.- The price of input materials increases.- Health-conscious consumers will have more

difficulty choosing products.- Industry trends change continuously.

</div><span class="text_page_counter">Trang 8</span><div class="page_container" data-page="8">

<b>III. MARKETING STRATEGY OF ACCECOOKJOINT TOCK </b>

<b>1. Product Strategy</b>

We are all familiar with Hao Hao, the brand name for Vietnamese noodles. It’s easy tomake an impression - A product that many people know and trust, the noodles are chewy andfragrant characteristic flavor, and are widely distributed… With "Packaging like a silentsalesman" Hao Hao's spicy and sour instant noodles packaging is very colorful, outstanding,and eye-catching.

Now, I will mention some background information about Hao Hao noodles.Firstly, Hao Hao's spicy and sour shrimp noodles are an instant noodle product. Secondly,input materials are selected and strictly evaluated according to the following 3 criteria:Establishing raw material standards with full biomechanical and biochemical properties(sensory, physical and chemical, microbiological, metallic, etc.), meeting food hygiene andsafety standards according to domestic and international food laws. Thirdly, Ingredients innoodles: Noodles: Wheat flour, shortening oil, tapioca starch, salt, fish extract, stabilizer,natural color: turmeric, synthetic sweetener, antioxidants. Lastly, Soup: Refined oil, salt,

sugar, monosodium glutamate, shrimp powder, spices (pepper, chili, garlic, herbs), driedgreen onions, citric acid, natural color: cashew (E160b), synthetic sweetener (E951),antioxidant (E320, E321).

</div><span class="text_page_counter">Trang 9</span><div class="page_container" data-page="9">

nutritional value of food. So, I will give informationabout it including energy value: 350kcal, Fat:13.0g, Carbohydrates: 51.4g, Protein: 6.9g, andWeight: 75g. In addition, Hao Hao is delicious - fast- cheap; it can be used anytime, anywhere. Instantnoodles - delicious food of all time. Therefore, it isfast food suitable for all ages, not greasy, delicious,suitable for taste, healthy and cheap…

Regarding to Package, Hao Hao is spicy, andsour shrimp noodles are protected by a high-standard packaging and cardboard box in thequantity of 30 packs. Furthermore, the packaging ofHao Hao spicy and sour shrimp noodles isoutstanding and eye-catching with red as the main theme. The highlight of the noodlepackaging is the symbolic noodle image that looks very attractive.

Finally, the label plays also an important in developing a product. In terms of theFront of Hao Hao, the Acecook logo is on the top left, and the product name is printed in themiddle of the prominent packaging while the Back: Contains brief product descriptionsemphasizing Japanese technology. There is also other information such as place ofproduction, time of production, expiration date, ingredients, nutritional value of the product,and how to use the product.

<b>2. Pricing Strategy</b>

Hao Hao Noodles employs various pricing strategies to meet its business objectives.One such strategy is cost-plus pricing, which involves adding a fixed percentage to the cost ofgoods sold (COGS) to generate profit. While this method can cover production and marketingcosts, it does not take into account the customer's willingness to pay or market competition.Another strategy used by Hao

Hao Noodles is competitivepricing. This involves settingprices based on the cost ofsimilar products offered bycompetitors, rather thantarget profit or cost. The goalof this strategy is to match orbeat competitors' prices andgain market share. Thoughthis approach can attractprice-sensitive customers and

boost sales volume, it can also lead to price wars, lower profit margins, and reduced brandloyalty. To influence customers' perceptions of value and price, Hao Hao Noodles alsoemploys psychological pricing strategies like odd pricing and bundle pricing. Odd pricing

</div><span class="text_page_counter">Trang 10</span><div class="page_container" data-page="10">

product is cheaper than it is. Bundle pricing involves offering two or more products togetherat a lower price than if they were sold separately, encouraging customers to buy moreproducts and increasing customer satisfaction. Hao Hao Noodles caters to different customersegments, such as low-income households, students, workers, and travelers by using acombination of these pricing strategies. The company adjusts its prices according to marketconditions, such as demand, supply, seasonality, and inflation. Through this approach, HaoHao Noodles aims to maximize sales and profits while maintaining its brand image andcustomer loyalty.

<b>3. Place Strategy</b>

Now, I will talk about the place strategy. Before I talk about it, I will give an overviewof Hao Hao's company. The company has 7 branches with more than 300 agents nationwideand exported to more than 40 countries. Each region has a branch office such as in Hanoi,Can Tho, Da Nang, and Ho Chi Minh City.

The next main part is channel distribution. First and foremost, Hao Hao Noodles haschosen many different forms of distribution channels to bring products to consumers butmainly distributes through the wholesale agent system. Next, Businesses choose manywholesalers (Level 1 agents) and the task of these wholesalers is to distribute to lower-levelwholesalers and then cover retail stores. When customers have a need, retail stores will notifywholesalers and this business will provide products in the form of a final sale. However, inrecent years, there have been many competitors, so Hao Hao spicy and sour instant noodleshave focused more on direct distribution channels and selling online, which means buildingmore sales and display stores—product introduction. In addition, distribution channels:Manufacturer -> Retailer -> Consumer. The Acecook company also sells Hao Hao noodleswith spicy and sour shrimp. Due to today's trends, people are getting closer and closer tomodern distribution channels such as supermarkets and buffet stores. Therefore, Hao Haospicy and sour shrimp is sold at supermarkets such as Big C, Do Mart supermarket chain,Maximax system, ... These supermarkets distribute products directly to consumers, byallowing consumers to choose their own favorite and suitable products and product lines.This distribution channel focuses on the final consumer, consuming in small quantities butregularly.

<b>4. Promotion Strategy</b>

Hao Hao's marketingstrategy is centered on servingVietnamese consumers whoare looking for affordable andconvenient food options. Italso targets Vietnameseexpatriates and foreigners

</div><span class="text_page_counter">Trang 11</span><div class="page_container" data-page="11">

delicious instant noodle brand that caters to the diverse tastes and preferences of Vietnameseconsumers. It also represents Vietnamese culture and culinary heritage in the internationalmarket. Hao Hao offers a wide range of products that cater to different segments of themarket. It innovates and develops new products based on consumer feedback and markettrends. It also ensures its products meet high standards of quality, safety, and hygiene. Thebrand sets its prices competitively, reflecting its value proposition and appealing to its targetmarket. It also offers discounts and promotions to attract and retain customers. Hao Haodistributes its products through a variety of channels, including supermarkets, conveniencestores, online platforms, and export agents. Its distribution network is strong and covers allregions of Vietnam, as well as overseas markets. To promote its brand and increase brandawareness and loyalty, Hao Hao uses various methods such as advertising media, publicrelations activities, and sales promotion techniques. Overall, Hao Hao's marketing strategyhas helped it become a leader in the instant noodle market in Vietnam and expand itspresence globally.

<b>IV. CHALLENGES OF ACECOOK IN THE MARKET</b>

<b>1. Negative information communication</b>

Since June 2015,unreputable electronicnewspapers (please allow me tocall it here ‘titled newspaper')have regularly posted and copiedinformation that has notidentified the origin andaccuracy of instant noodles suchas instant noodles aremalnourished products,containing toxic substances(oxalic acid, transfat, TQBH...),which are the causative agents ofdangerous diseases (cancer,allergies...) and recommend consumers to limit or should not use Instant noodle products aimto attract attention and increase views for the newspaper page. Article titles such as "Theserious harms of instant noodles to health" "The harms of eating a lot of shrimp noodles", and“Eating shrimp noodles with cancer"... can all make consumers afraid and insecure, therebyseriously affecting the instant noodle industry.

</div>