Marketing Analysis and Plan for Omachi Instant Noodles | Môn Marketing quốc tế - Đại học Kinh Tế Quốc Dân

lOMoAR cPSD| 59691467 Table of Contents
INTRODUCTION............................................................................................................3
MAJOR FINDINGS.........................................................................................................5
Task 1............................................................................................................................5
I. The 7Ps marketing mix:....................................................................................5
II. . How do Company A and B achieve their overall business objectives by
marketing mix strategy? In this part, you should talk about the benefits/
results that Marketing Mix strategies have helped both companies to achieve.............14
Task 2: Develop and evaluate a basic marketing plan.............................................15
1. The Company Overview..................................................................................15
2. The current marketing situation analysis......................................................15
3. The company objectives..................................................................................16
4. Segmentation, Targeting and Posisioning......................................................17
5. Tactic &Action.................................................................................................19
6. Allocation of resources....................................................................................19
7. Evaluating and monitoring Marketing plans................................................20
CONCLUSION...............................................................................................................21
APPENDIX.....................................................................................................................21
REFERENCE LIST.......................................................................................................24 INTRODUCTION
This report will provide information about Omachi on 2 significant parts. First of all, we
will talk about how Omachi and their competitor – Hảo Hảo apply the marketing mix
strategy to the marketing planning process to achieve business objectives. After that, we
will evaluate and develop a basic marketing plan for Omachi.
Omachi is a product from Masan group, they are the first brand introduced “noodle made
from potato”. Despite first appreared in 2007, at the end of 2008 Omachi already had 2,1%
of the market share and it is constantly increasing, until now Omachi has approximately lOMoAR cPSD| 59691467
25% of the market share (Nha Trang, 2017). Omachi has been successful in gaining trust from vietnamese comsumers. Omachi instant noodle
(Source: migoiomachi.blogspot.com)
Acecook is a longtime noodle manufacturer in Japan, Acecook has pioneered investment
in the Vietnamese market. In 2000, the birth of Hảo Hảo made a breakthrough in the market
of instant noodles. With around 43% of the market share, they are known as the most
favorite instant noodle brand in Viet Nam. Hảo Hảo instant noodle (Source: ceobank.vn) MAJOR FINDINGS Task 1 I. The 7Ps marketing mix:
The marketing mix is about putting the right product in the right place, at the right time and at the right price. lOMoAR cPSD| 59691467
The Marketing 4Ps was created by a marketing expert named E.Jerome McCarthy
in 1960, this concept, which focuses on the product, includes 4 factors: Product,
Price, Place, Protion. Beside this, the 7Ps includes three more additional factors:
People, Process and Physical Evidence, they are designed to make it more relevant
to the service industry, which is expected to deliver more than physical products. The 7Ps Marketing Mix
(Source: professionalacademic.com) 1. Production: Omachi Hảo Hảo lOMoAR cPSD| 59691467
 Omachi focus on their customer
health and nutrition by producing product with the noodle from
potato and have more nutrient for
 Hao Hao have been building their the consumer such as Omachi
image in the customer mind for a Beef Stew Sauce Flavored, long time. Manufacture in Omachi spaghetti, Omachi sour accordance with Japanese and spicy shrimp
standards and technology. Some
 With the noodles from potato and
product can me mentioned such as the slogan “very delicious Hao hao sour and spicy shrimp
without the fear of heat”, Omachi flavored, Hao Hao satay and can help consumers have a
shallot flavored , Hao Hao pork
convenient meal but not affect
rib and fried garlic flavored… their health too much  The most well-known
 The price is quite high for many
characteristic of Hao Hao is that
workers and students but they’re
their products are cheap, but it’s healthier and give you more energy for your day.
also tasty, can be used to make
many type of noodle-based food
 Hao Hao can serve the basic need
of the customers with the cheap
meal but still tasty, it is a good
choice for saving money. But it is
not good for your health and can not provide enough energy needed. 2. Price Omachi Hảo Hảo lOMoAR cPSD| 59691467
 Hảo Hảo is targeting to the
 Omachi is targeting high quality
market for low income people so
noodles so the price of omachi's
the price of Hảo Hảo products is
products is more expensive than usually very cheap with an
the average price in the market. In average price of 3600 VND per
return, customers will be using a pack of noodles.
high quality product along with
 For the products of Hảo Hảo, plenty of nutrition.
cheap price has positioned its
 For the Omachi Special, Masan
brand. 15 years since its first company adjusts prices higher entry into the Vietnamese
than its competitors with 7000 market, Vina Acecook has VND per package. The head of
always targeted its products to
cost creates the pressure for the markets for low income people
masan to create a quality product such as students, workers, worthy of its price.
farmers ... who have low income
 In 2017, Omachi introduced and do not have much time for
canned noodle with two flavors. eating.
They set a price of 15,000 dong.
 In addition, Hảo Hảo also has
The price of canned noodles is so canned noodles for 8000 VND a
high that they add a big lump of
product and inside will contain
meat into each canned noodle to
small dried shrimp. The creation
enhance the nutritional value of
of canned noodles to diversify their produce.
the product line for Hảo Hảo as
 The higher price with the noodles well as provide products with
from potato will help Omachi aim
at the specific target customer
nutritional value for consumers.
with the stable profit but it will
 The low price help Hao Hao limit the number of approach the major market but lOMoAR cPSD| 59691467
customers because most of people
along with the development of the
who use instant noodles do not want
economy, people tend to use the stuff to spend much on this stuff
that does not affect their health much. 3. Place Omachi Hảo Hảo
 Hảo hảo has 7 branches with more than 300 agents throughout the country.
 Omachi is present in Hanoi, Ho Distribution system includes supermarkets, wholesale Chi Minh City and more than markets such as Hanoi is 100 cities, towns, townships typical supermarket system of and towns in Vietnam. The BigC, convenient store,… (acecookvietnam.vn, 2018).
main distribution channels are supermarkets, markets and grocery stores. Currently, OMACHI potato noodles are being distributed directly to more than 58,000 stores and hundreds of wholesalers nationwide (Masanconsumer.com, 2007).
Instant noodles have different distribution channels to bring products to
all consumers. Instant noodles appear everywhere, from convenience
stores, supermarkets to small grocery stores. With the convenience of
being able to buy at any store, instant noodles are considered a familiar
dish of busy Vietnamese people. This shows the widespread popularity of
instant noodles through a variety of distribution channels lOMoAR cPSD| 59691467 4. Promotion Omachi Hảo Hảo  Running many TV
advertisements that cooperated  Runing advertisement with celebrities such as Bich regularly in TV channels or Phuong, Bao Anh, Pham radio which cooperated with Huong ...to promote the brand
celebritties such as Hoai Linh, image and new products , it Toc Tien in order to show the
creates the curiosity and attacts growth and renovation of the the attention of customers to products. the products.
(source: tvhdream.com)
(source: article.wn.com)  Running the many sale  Applying various forms of promotions that in trend such promotion such as give
as “Cào là trúng” or “ Hảo Hảo
customer the trial products “
sôi động cùng thể thao”. It not
Hủ tiếu Omachi” in 2010. It
only increase sales, but also a could increase sales, help
way of expressing gratitude to cunsumers reach the products, their loyal customers (Hieu
stimulate people to buy it and Nguyen,
also helps strengthen the trust 2013). of consumers with new  Hao Hao has accompanied products many programs for students,  Making great strides in disadvatage children, the lOMoAR cPSD| 59691467 sponsoring for some poverty and some gameshows gameshows on TV.
 The delivery of a practical
 Hao Hao has become a familiar
message “ no fear of hot” put image which is loved by Omachi in a substantial Vietnamese families, position in the market. They especially young people not are the number second instant
only by the quality but also a noodles in Viet Nam (Thu brand of social, community Huyen, 2018). activities. 5. People Omachi Hảo Hảo
 To put Omachi in such a solid position like today is a huge
 Hao Hao require employees to
contribution from the dedicated,
constantly develop their skills, it
loyal and innovative employees,
is also a condition to apply to the
they are well-trained with high
company. Practical training for
professional level. According to staff is run in the annual
the official website of Massan, program. Traning is not just
they have developed training and
considered as a reward but also
development for many position in an obligation for employees. the company. Futhermore, (Acecookcareer.com)
morning coffee is also a chain of
 Building the sustainable human
activities for employees to gain resources by creating a more knowledge. favourable working enviroment
and good welfare for laborers to (masanjobs.com) work and make long term
 Omachi always commits to a
contributions.Commit to comply consistant policy, many
with the law, ensure food safety incentives, towards the standards and environmentally lOMoAR cPSD| 59691467 employees to create a human friendly resource development
 This policy helps Hảo Hảo keep
comprehensive, professional and
the number one position in the market. Anphabe.com. (2018) long-term retention to the company’s goals.
 This policy helps Omachi have an abundant human resources, always meet the development needs of the company,
contributing to the innovation. haymora.com. (2018) 6. Physical Evidence Omachi Hảo Hảo  Meaning of the logo: The
letters o, a, c, i have a rounded shape representing the main
 Meaning of the logo: "Hao" means source of potatoes selected good things, so the name "Hao
Hao" as well as a message that from the freshest potatoes. producer Vina Acecook for
Five stars make up the circle, Vietnamese consumers: We want to bring good things. best to representing the five-star
everyone. Over the past 15 years class, symbolizing the of existence and development, ambition of the product that "Hao Hao" has been
continuously receiving the trust
will cover the five continents. of consumers thanks to the
 On each packet of noodles, orientation of always putting accompanied by the name
quality as the top criteria, in lOMoAR cPSD| 59691467 Omachi is the words "Potato accordance with the Japanese Noodles" to express the spirit. prominence of Omachi
 Hao Hao logo is featured on each noodles: made entirely from packet of noodles in red. Hao potatoes. Tailieu.vn. (2014).
Hao noodle packages are used in This method impress bright colors such as yellow, customers with the different pink, green, blue, purple and characteristic and gain more and more trust from them. bring freshness to consumers. Anh (2015) 7. Process Omachi Hảo Hảo  Omachi's distribution  Hảo Hảo's distribution network consists of more network consists of more than 100 agents throughout than 600 agents throughout Vietnam. Distribution Vietnam. Distribution systems will transfer their systems will transfer their products to wholesalers. products to wholesalers. Then the wholesalers will Then the wholesalers will find retailers such as find retailers such as supermarkets, convenience supermarkets, convenience stores, grocery stores to stores, grocery stores to distribute products. From distribute products. From there, the product will be there, the product will be delivered to consumers delivered to consumers. (Masanconsumer.com, (Acecookvietnam.com,2018 2007). ) lOMoAR cPSD| 59691467
The advantage of this type of distribution is that the investment capital is not
high, suitable for strong brands, which are popular with the market. By using
this distribution system, Omachi can bring its products closer to customers.
However, if there are any problems with the product, it is likely that the ability
to push the item down to the vendor's distribution will be affected. On the other
hand, due to demand-driven distribution, the product reaches consumers quickly or slowly.
II. . How do Company A and B achieve their overall business objectives by marketing
mix strategy? In this part, you should talk about the benefits/ results that
Marketing Mix strategies have helped both companies to achieve. 1. Omachi:
When Masan launched the Omachi product line, it was a breakthrough in "PR"
instant noodles. Choosing a high price segment and conveying a very practical "very good
without fear of heat" message is an excellent strategic option for Massan. Omachi's
message hits consumers' expectations and expresses itself in a clear, simple but meaningful
language that makes it easy for consumers to embrace it. On the other hand, Omachi invests
much for advertising, beautiful packaging, diversified products, dense distribution
channels in stores, supermarkets ... So although Omachi is higher than the price of Hảo
Hảo noodles, On the market, Omachi has acquired a large number of customers. In addition
to the message "Very delicious without being afraid of heat," Masan consumer has
succeeded in marketing omachi noodles with potato noodles strategy. With prices for the
premium segment, Omachi's quality of noodles is absolutely worth the money that
customers have to spend. With a distribution network of more than 100 dealers, Omachi
ensures that their products are delivered to consumers with the quickest and easiest way.
The use of celebrities along with the promotion of nutritional value helps Omachi achieve
effective communication and convey its message to consumers. 2. Hảo Hảo:
Recognizing that 80% of Vietnamese live in rural areas with low incomes, and Hảo
Hảo primary clients are students, Hảo Hảo offers the right price for their income. Moreover, lOMoAR cPSD| 59691467
by the market positioning strategies of Vina Acecook, Hảo Hảo has made a difference to
the competition. Positioning strategy is very successful because when thinking of Hảo Hảo,
people think of its convenience: "Delicious, nutritious, cheap." To do this, the company has
offered a lot of strategies such as promotion of billionaires, charity programs..., especially
the interview of consumers about their experiences. As a result, Hảo Hảo noodles served
over 2 billion delicious meals a year. The distributor distribution is much larger than the
Omachi noodles (600 agents), which makes Hảo Hảo's distribution network wider than
Omachi's. The strong development of distribution channels facilitates the company to sell more and make more profits.
Task 2: Develop and evaluate a basic marketing plan
1. The Company Overview
Masan group and masan consumer are one of the biggest consumer goods companies in
Vietnam, specializing in producing foods and beverages such as soy sauce, instant noodles,
instant coffee ... In 2007, Omachi Masan was first introduced with the clear message:
noodles made from potatoes help consumers have the delicious meal without the fear of
heat. Selecting the midrange segment and conveying the very practical message "not afraid
of heat" is an excellent strategy by Omachi. It hit consumers' apprehensions that instant
noodles could heat up the body, and offer a potato noodle solution to dispel that suspicion.
After entering the market, Omachi builds and develops a strong market share in Vietnam,
building trust and credibility in the rapidly growing customer base. Omachi is considered
as a “rising star” as it rapidly increase market share from zero to 24% in 2016 (Nha Trang,
2017). With the mission of "converging, nurturing our aspirations and talents to finding
breakthroughs to enhance the benefits of our products and services to our customers, our
customers will reward us with our sales. leading profits and sustainable growth". Omachi's
vision is to expand and gradually dominate the Vietnamese food market, bringing in annual
revenue and large cash flows. Omachi now is the second largest instant noodle market in Viet Nam after Hao Hao.
According to Mr.Nguyen Tang Quang – the chairman of Massan’s board of directors, the
instant noodles market is entering a fierce competition. Massan is aiming for a new target, lOMoAR cPSD| 59691467
not to compete on price but focus on investment products more convenient, more advanced.
One of those products is real meat noodles.
2. The current marketing situation analysis SWOT analysis:
SWOT analysis is the way that focuses on identifying internal factors that influences to
the firm such as strengths and weaknesses; also, it illustrates external factors of
organization such as opportunities and threats that the organization may face with
(Investopedia.com, 2017). Applying to Omachi:  Strengths o Weaknesses
Omachi has been creating a clear
The ingredient is not as good as the
marketing strategy to aim at the
customer’s expectation, there are a  target customer o lot of additives.
The message hit the expectation of Omachi invests to much in on
advertisement, the frequency of  the customers
TCV in the national channel is The production chain is unnecessary when the image of  professional machine
omachi now is quite well-known.
The sustainable development helps Omachi reach their objective
effectively and can invest more to
improve the product as well as the service  Opportunities o Threats
The population is growing and the There are a huge number of  market is large o competitor in the market
Viet Nam’s GDP is increasing so it
Although the market is large but it
is an opportunity to increase profits  o not growing significantly Consumers now tend to use the
products in the mid-range segment
Omachi has to also compete with
and Omachi is focusing on this
the imported goods when Viet Nam lOMoAR cPSD| 59691467  segment
o eliminate the tariff barriers from Omachi can be found easily in southeast Asia. anywhere with
Vietnamese people have many other the large
choices beside instant noodles. contribution system.
3. The company objectives
In 2019, Omachi will up the plan of the income of 3000 billion.
In 2019, Omachi can increase the market share to 29% Objectives Criteria match Specific Clear, accessible target.  Measurable number of products sold  Attainable
There is a certain amount of capital  Result - oriented
certain deployment environment  Time-bound Specific time is 2019 
4. Segmentation, Targeting and Posisioning
Segmentation: Market segmentation is to divide the large market into types of various
groups and all groups contain the same traits such as geographic, demographic, behavioral
and psychographic (Kotler, 2005). Source:Dreamstime.com
The instant noodle industry in Viet Nam is highly competitive. The market is generally
divided into three part: the low-end, the mid-range and the high-end segment. The instant
noodle companies in Viet Nam mainly target at the low-end and the mid-range segment, lOMoAR cPSD| 59691467
and people who are busy and need a convenient meal such as officer, workers, students are
usually the target customers of instant noodle. Beside selling for individual, instant noodles
is used widely in restaurants for hot pot or in many other recipe. This product can be found
at any convenient store, market, retailers. People used to prefer choosing the lowed price
instant noodle in order to save many. But nowadays, they are more and more using the
instant noodle in the mid-range or high-end segment such as Omachi, Cung Dinh, Koreno…
Targeting: The current target customer of Omachi is the busy people who live in urban
area and they do not have much time for preparing the meal, they want to use Oamchi to
save time. Moreover the noodle from potato with the slogan “very delicious without the
fear of heat” hit on the woman psychology so the main target customer of omachi is mainly
woman. In the previous period, Omachi had targeted at the mid-range segment when the
price usually from 5.200 – 7.000 VND. But along with the development of the society,
people are care more and more about health and nutrition, they are willing to pay more for
the better product. With the convenience and nutrition that Omachi bring to the customer,
Omachi is developing the instant noodles cup with the real meat inside at the the higher
price from 14.000 – 18.000 VND, but for this time, Omachi aim at everybody including
woman, man, children,… this is expressed clearly when the advertisement for the Omachi
with real meat inside including those people.
Positioning: Omachi is the number two brand of instant noodles in Viet Nam behind Hao
Hao. They are known as a product in the mid-range segment. This is a clever choice of
Omachi because the low-end segment maybe big but has very low margins and only
suitable for the large scale manufacturer. Not just convenient like other brands, Omachi
also provide people a distinctive character with the clear and strong message “without the
fear of heat”. Along with the development of economy, the middle segment is becoming
an important pie in the market. Omachi is developing rapidly with various product lines. lOMoAR cPSD| 59691467 Price 5. Tactic &Action For this part, we made a new promotion video for Omachi:
https://drive.google.com/file/d/1T6gfwbwX-tPTVVHACQa7fNpI0MAmw1GH/view?
fbclid=IwAR3ErzDnb6bLHWYTUgIitN_sXd2OmueHMWjrzDkGGBBgdEgvrDRlQ22J aU
6. Allocation of resources
a. Financial Resources:
The purpose of the promotional video is to promote the nutritional value of Omachi
noodles. Moreover, Omachi wants to eliminate the thought that instant noodles are
nourishing products. Omachi will incorporate a variety of advertising formats, including: lOMoAR cPSD| 59691467
TV ads, social media ads, radio ads, posters on bus, in convenience stores and commercial
center. The budget of the marketing project within 6 months is 12% of Omachi's revenue. In more detail: Activities Budget Video making 2% Posters 3%
Advertising on Social media 2% Radio ads 1% TV advertisement 4% b. Human Resources:
Omachi's marketing team will be independent of the idea and implementation of this advertising campaign. Activities Number of people Video Script: 1 Recorder: 2 Supervisor: 1 Edit: 2 Model: 2 Support staff: 2 Advertising TV: 2 Poster: 1 Social media: 2 Radio: 1 Supervisor: 1 Total 17
7. Evaluating and monitoring Marketing plans
Evaluating a marketing strategy helps us know exactly whether the strategy is effective,
There are many ways to evaluate a marketing strategy, but according to Elizabeth Smith
(2018), we can evaluate marketing strategies in three ways. lOMoAR cPSD| 59691467
Firstly, Omachi is able to track changes in sales and profitability in sales. Use sales in front
of a marketing campaign, while marketing and after marketing will know exactly the
effectiveness of the campaign. Moreover, Omachi candles track specific numbers to capture the change in sales.
Secondly, one of the easiest ways to evaluate the effectiveness of a marketing strategy is
to ask the user directly. Omachi should communicate with customers through surveys to
capture the views and thoughts of customers after the product marketing strategy.
Thirdly, Omachi can track its progress. When setting up a marketing strategy, Omachi
needs to figure out specific sales figures. Then, use the actual sales to compare with the
expected sales, so you can know if the marketing strategy has reached the expected level. CONCLUSION
From doing this assignment, we can understand more about the marketing mix strategy of
Omachi, we also use some tools such as 7ps model, PESTEL or SWOT to evaluate and
point out the advantages and disadvantages of Omachi compared to Hao Hao. We hope
that all information provided is useful for Omachi to make the decisions on its marketing plan. APPENDIX 1. Internal audit
5M is applied in order to introduce the internal audit of Omachi.
 Manpower: until 31/12/2010, Omachi has 732 employees which includes 345 male
(47%) and 387 female (53%) with the high level of professional skills and they have
a good training system. The percentage of employees who have graduated from
secondary school or lower is mainly workers, drivers, cleaners,... Omachi always
commits to a consistant policy, many incentives, towards the employees to create a lOMoAR cPSD| 59691467
human resource development comprehensive, professional and long-term retention to the company’s goals
 Materials: In the composition in the packet of omachi shows that the amount of
potato is only for 50g/1kg, equivalent to 5%. That means the main ingredient for
omachi which is cosider as “potato noodle” is wheat flour like all other noodle. Even
though, oamchi is known as a “high-end” noodle, it still contains E102 and does not
mention clearly how much (Châu Anh, 2011)
 Money: Massan group was first established in 1996 and now they have
beensuccessful in many product lines. Massan group has announced a finance report
for the first half of the year. According to the report, net profit is divided for the
shareholders from its core business is 3.4 times increase over the first half of 2018
compared to the same period of 2017. The profit after tax increase 38,4% to 5.147
billion compared to 3.718 billion in the first half of 2017.
 Machines: Omachi is produced by a professtional process. The kansui solution
mixer is made of stainless steel, with a rotary engine that rotates the agitator at a
speed of 15-20 round per minute for the solution in the mixing tank. 2. External audit 2.1PESTLE analysis
 Political: Vietnam is the country a socialist republic. Therefore, with a stable
political system, the legislature dependably makes the best conditions for the foreign
company to enter and develop in the Vietnamese market. (Chinhphu.vn, 2013).
ASEAN has approached the goal of removing tariff barriers under the ASEAN Trade
in Goods Agreement with a tariff elimination rate of Asean at 98.67% in 2018.(T.K, 2018)
 Legal: The domestic company and the foreign company have to require to comply
with the regulations and laws of the government. The registration procedure for
domestic companies and foreign companies was unified by the laws of 2014 on
investment and businesses. Now all companies must construct the same application
files to obtain ERC “enterprise registration certificate” on the registration certificate. lOMoAR cPSD| 59691467
 Economical Environment: Reported by the General Statistics Office, the gross
domestic product (GDP) of the third quarter of 2018 is estimated to increase by
6.88% over the same period last year. Generally for 9 months from 2011 back then,
showing that the economy retains the growth momentum and capacity, the
expansion is forecasted to be at the upper end of the government target of 6.56.7% and possibly beyond 6.7%.
 Technological: Along with the innovation of the technology, Omachi has been
applying the professional production lines in manufacturing. Moreover, customer
can reach to the product whenever they want at any where due to the development
of the social media or online websites.
 Social: According to the latest statistic from the United Nations, the population of
Viet Nam is 96.872.241. Reported by the World Association of Instant Noodles,
VietNam is one of the 15 countries that are consuming instant noodles the most. The
Vietnamese instant noodles market is also in the “high level” trend of the world, as
consumers are willing to pay for more expensive products. Manufacturers are
rapidly updating high-end handy products such as instant noodles – trays, real meat – Shrimp. 2.2Five Forces
 Threat of new entrants (High): Viet Nam is one of the leading countries in the world
of instant noodles, with a market size of more than 24.000 billion VND. This “pie”
is being distributed by more than 50 businesses, creating fierce competition. Many
brands of noodles imported form Thailand, Korea, Singapore are also present such
as Shin Yam Yum, Samyang, ChaJang
 Threat of Substitution (High): According to Nielsen data, sales of products grew by
7% in 2017 compared to 2016. However, when looking closely at the two major
product categories of the food industry, instant noodles does not show as strong
growth as those in the impulse category-including biscuits, snack, soft sponges.
 Bargaining power of supplier (Moderate): The supplier in the noodles industry does
not have much power because noodles is in the regular categories, it can be appeared
anywhere. Customers can easily find Omachi in the market, retailer or convenient store.