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POM - principle of Marketing

Marketing (Đại học Hà Nội)

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HANOI UNIVERSITY
FALCUTY OF MANAGEMENT AND TOURISM

Omachi

GROUP ASSIGNMENT

PRINCIPLE OF MARKETING

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HANOI UNIVERSITY
FALCUTY OF MANAGEMENT AND TOURISM

Group’s members: Tran Minh Hien 1806090036

Nguyen Mai Hoai Linh 1806090054
Tran Huyen Linh 1806090058
Tran Nguyen Thanh Trung 1806090115

Tutor: Nguyen Phuong Lien

Tutorial class: Tut 3
Tutorial time: Thursday, 14.30pm

Hanoi, May 2020

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Executive Summary

Instant noodles are always a popular product for consumers. The noodles
market is very potential and always attracts many businesses. One of the
famous noodle brands in the Vietnamese noodle market is Omachi instant
noodle from Masan Group. Since its launch in 2007, the product with
outstanding features different from other conventional products has
achieved success and affirmed its name in the noodle market. The success of
Omachi stimulates us to examine the relevance of the marketing mix with
the targeted customer profile. This report based on secondary data is aimed
at seeing whether the company had set up a suitable and reasonable
marketing mix compared with the segmentation of its product by evaluating
between each P from marketing mix with appropriate segmentation as well
as comparing relevance rate with company's performance.

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Table of Contents
INTRODUCTION........................................................................................................................ 5
TARGETED CUSTOMER PROFILE........................................................................................ 6
1. Targeted customer profile........................................................................................................ 7
2. Positioning map........................................................................................................................ 9
Positioning value........................................................................................................................... 9
Positioning statement................................................................................................................... 9
MARKETING MIX................................................................................................................... 10
1. Product.................................................................................................................................... 11
1.1. Level of products............................................................................................................ 11
1.2. Product classification..................................................................................................... 13
1.3. Product life-cycle........................................................................................................... 13
2. Price......................................................................................................................................... 14
3. Place......................................................................................................................................... 15
4. Promotion................................................................................................................................ 16
4.1. Television commercials (TVC)...................................................................................... 16
4.2. Mini games.................................................................................................................... 16
4.3. Sale promotion.............................................................................................................. 17
4.4. Public relation............................................................................................................... 17
EVALUATION............................................................................................................................ 18
1. Product and targeted customer profile................................................................................. 18
2. Price and targeted customer profile...................................................................................... 18
3. Place and targeted customer profile...................................................................................... 19
4. Promotion and targeted customer profile............................................................................. 20
COMPARING............................................................................................................................. 21
References.................................................................................................................................... 23

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I INTRODUCTION

Instant noodles are a very popular necessity for Vietnamese people. They use it regularly
because it offers convenience as well as a reasonable price. In recent years, with the
strong development of products, consumers have a wide variety of options in buying
instant noodles. One of the most popular product is Omachi noodles which belongs to the
Masan Group. In terms of market capitalization, Masan Group Corporation is one of
Vietnam's top three largest private sector firms. The group was founded in 1996 and has
headquarters in the city of Ho Chi Minh. Masan Consumer (consumer staples),
Techcombank (financial services) and Masan Resources (mining) are its subsidiaries.
Masan has created many famous brands such as Chin-su, Nam Ngu, Omachi, Kokomi,
Vinacafé, Wake up. In 2007, Masan Consumer introduced Omachi, the first instant noodle
product in Vietnam made of potato fibers, with the purpose of beautifying the skin,
improving health, and diversifying and attractive flavors, Omachi has created a strong
foothold in the Vietnam instant noodles market. It is obvious that Omachi instant noodle
is trying to dominate the Vietnamese instant noodles market and attract consumers to its
characteristics. This report is aimed at analyzing the targeted customer profile of Omachi,
how they are currently using the marketing mix to develop the brand, and evaluating their
marketing performance.

Omachi - Principle of Marketing

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II

TARGETED
CUSTOMER
PROFILE

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1. Targeted customer profile

Target customer Children & Young adult

Married
Segmentation Teenagers people
1.1. Geographic Density Both rural & Both rural & Both rural &
(Vietnam) urban area urban area urban area
Age 5-19 20-30 30-over
Gender Mostly female Mostly female Mostly female
1.2. Demographic Income Medium income Medium & Stable & high
high income
Occupation Students Medium or Medium or
high paid jobs high paid jobs
Social class Middle class Upper, high Upper, high
class class
Personality This group is They are Besides the
interested in economically convenience,
convenience and autonomous this group
cheapness. They and often lack pays great
search for the time to prepare attention to
products which meals. They health issues,
are easy to cook search for the not only for
and eat before convenient themselves but
school, and and also for the
products with time-saving family. They
low price which products. The choose
does not cost female of this products that
1.3. Psychographic much to them. group focus on are reasonably
the products priced and
which are both provide
convenient adequate
and healthy. nutrition and
They care are not
about their harmful to
health and health.
beauty so they
find the
products
which does not
cause acne and
hot inside
body.
Lifestyle Busy & leisurely Busy & Busy &
Leisure leisurely
people
Occasions Because there Regular They use the
are many types occasion products
of noodles and because this regularly.
this group is product can be Omachi is
mainly based on considered as suitable for

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their parents' a daily people who
purchases, if necessity, they are busy with
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their parents buy use it regularly work but still

this product, and are care about
they will use it, satisfied with health of
and if their the themselves
1.4. Behavioral parents buy convenience and family. In
another product, and addition, they
they will use healthiness of also use
another product. Omachi Omachi for
noodles and hotpot.
they become
loyal
customers.
Benefits Delicious, Delicious, Delicious,
attractive design, convenience, convenience,
does not cause save time, time-saving,
acne, save provide nutrients,
money. nutrients, does potato noodles
not affect are made from
appearance, potatoes that
not cause hot do not cause
and acne . heat and acne.
User status Occasional users Regular users Potential users
Loyalty Low Medium Strong
status
Attitude Indifferent, Positive Positive
toward neutral
product
Readiness Unaware Informed, Interested,
stage interested intending to
buy
User rates Light user Heavy user Heavy user

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2. Positioning map

Positioning value
To compete with other inner competitors such as Hao Hao, Kokomi, Cung Dinh...
Omachi is using “More for more” strategy in order to attract customers caring about their
health but having lack of time to cooking. In addition, Omachi noodle always has a bit
higher price than other brand names like Miliket, Gau Do, Hao Hao, Thaiduong, so on.
The price of these noodles exists ~3,000 VND per once. Meanwhile, Miliket has the
lowest price compared to other competitors which is at 2,500 VND. However, with a bit
higher price of 6,000~6,500 VND, Omachi can provide many benefits to customers.

Positioning statement
Instant noodles is a familiar item of Vietnamese people. However, from the perspective
of consumers, most of them appreciate instant noodles through its convenience, but
concern that this product can cause heat in the body, acne, and actually it is not enough
nutrients. This is also a key point in the consumer segment with higher income and
especially for women. Health concerns are the biggest barrier for instant noodle brands to
reach this customer segment. Recognizing that competitor's weakness, Masan launched
Omachi product line with a clear message: “the noodles made from potatoes” help
consumers not be afraid of heat. Selecting the middle segment and conveying a very
practical message "not afraid of heat" is an excellent strategy of Omachi. It has broken
the hesitant psychology of consumers and proposed solutions of pasta with potatoes to
eliminate that suspicion. The key point of this message is to focus on customers health,
which is very suitable for Omachi's brand positioning in the middle segment.

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III
MARKETING MIX
Masan is one of the biggest corporation working in producing necessities for the society
in Vietnam. One of its product that attracts a great amount of consumption is noodles
brand, Omachi more specifically. In this part, we will describe the marketing mix of
Omachi (4Ps) that Masan has set up in 2019-2020 period.

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1. Product
1.1. Level of products:

asan had introduced nearly 10 flavors of Omachi but in this report, we will narrow it down by the four most favourite, which

m high-quality potatoes. The core value of Omachi went beyond what instant noodles could actually hold. As being made fro

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The second level is actual product. In this part, we examine the features of Omachi and
how it is designed
- Features: The noodles is made soft, tough, have a beautiful yellow colour, mixed
with special bold sauce. 100% of ingredients is from the nature. Chemicals are entirely
subtracted from the production of noodles while additives and preservative is also
nowhere to be found. Omachi provides consumers with sufficient amount of protein and
starch, energy for our body.
- Design: The net weight of an Omachi product can be range from 75g as the minimal
to 113g as the maximum, often packaged in carton box holding around 30 products.

- Slogan and logo: With the slogan “ Delicious potato strands - Very delicious without
fear of heat! “ or “ An Irresistible Temptation” , Omachi product packaging will portrait
the virtual image of the product after being cooked properly with other ingredients. The
red logo with symbol of five stars indicate the ambition of Masan to produce a high-
quality product that become famous worldwide.

The third level, which is also the last, is augmented product. With the aim to provide
more convenience for customer to enjoy Omachi product, in 2017, Masan published an
Omachi canned product including real sausage, which is recognized as a big step
bringing Masan towards their competitors in instant noodles market. Occasionally,
Masan will set up stalls inside commercial centers or supermarket to give customers a
free taste of Omachi or playing games to receive Omachi packages as prize.

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1.2. Product classification:

As many other brands of instant noodles, Omachi is classified as a convenience good as
consumers could purchase them in many places such as supermarkets, grocery stores or
local market. During the Covid-19 pandemic, the feature of a convenience product
becomes more clearly as consumers barely make comparisons between different brands
of instant noodles and just grab the first package of instant noodles that they saw.

1.3. Product life-cycle:

Introduced by Masan in 2007, Omachi is now somewhere between growth stage and
maturity stage in its product life-cycle. After gaining acceptance from consumers and
witnessing big growth in profits over the years, Omachi is making steps to maintain the
growth rate and avoid the plunge in sale profits as much as possible.

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2. Price
Omachi has four main line of products based on the flavors, the based price for the basic
products with plastic wrap package is 6.600đ according Bachhoaxanh. Besides that,
using the product line pricing strategy, Masan sets the price steps between various
products based on the cost differences and improved features like real meat or more
convenient packages. Price for products with bowl-shaped package is 11.000đ, and
products with real meat is 15.800đ.

Beside product line pricing, Masan also use the product bundle strategy. They offer
bundles of 6 package or cartons of 12 to 30 packages at the reduced price. This strategy
benefits greatly to Masan as selling multiple products in one solution means a greater
initial return on the cost of acquiring a customer.

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3. Place
Using vertical marketing channel (administrative type more specifically) and choosing to
distribute product in an intensive way , the main distribution channels of Omachi is from
manufacturers to supermarkets, local markets, grocery stores, retailers then to consumers.
Many big supermarkets has been working with Masan as intermediaries to put Omachi
on the stall such as Vinmart, BigC, Mega Market and many others. These distributors
will pay back an amount of sale profits to Masan.

Masan plans to expand its distribution channel, focusing more on smaller cities, towns in
remote areas to exploit the potential customers in lower segment, which is being taken by
Acecook (with HaoHao). The products is delivered to retailers who then sell the products
to customers. Those retailers not only distribute Omachi through direct selling but also
through online selling by posting the product on online shopping platform such as
Shopee, Lazada, etc. Until 2020, the number of distributors working under control of
Masan has accounted for around 150,000. Moreover, Masan also provides supports of
decoration stall to attract customers, which is promised to highly differ from what
Acecook has been doing. During the Covid-19 pandemic, the scale of product
distribution is considered to be larger than normal due to increasing demand for instant
noodles from customers.

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4. Promotion
4.1. Television commercials (TVC)
Omachi mostly focused on television
commercials as a mean of promotion.
During 2019-2020, they have launched
three major TV commercials for their line
of products on many national channels like:
VTV1, VTV3, HTV7, HTV9,... All of these
commercials conveying a very
practical message "not afraid of heat".

This is an excellent strategy of Omachi; it has struck a chord among users that instant
noodle-based instant noodles can cause heat in the body, and offers a potato noodle
solution to alleviate that suspicion. The key point of this message is to focus on user
health, which is very suitable for Omachi's brand positioning in the middle segment. In
addition, Masan also included KOLs or influencers in their commercials: Ninh Dương
Lan Ngọc, Châu Bùi,…

4.2. Mini games

Along with TVC, Masan also advertises their products through a lot of social media
channels like Facebook or Instagram and has conducted a series of mini-games on these
online channels. Mini-games from Omachi are taken in form of giveaway contests, where
followers are asked to share their post, tag their friends or take a selfie with the products
in order to win the prize. This has proven to be an effective strategy since there are many
people participated in these mini-games, which helps Omachi to increase their followers.

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4.3. Sale promotion

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Besides, Masan maintains an excellent

relationship with their intermediates and
often offers sale promotion at their
distribution channels. Some examples of
the promotion can be: Buy ten packages
of Omachi noodles will give you gifts
(glass bowl, glass dish ...), a discount
when you buy ten packages or a carton
of Omachi noodles. More than that,
Masan is not only entitled to the
traditional distribution channels, but they
also sell and discount their products on e-
commerce websites like Tiki or Lazada.

4.4. Public relation

With a mission to “Improving material
and spiritual life of consumers”, Masan
not only focus on selling their products
but also creating a better brand’s image.
In the light of Covid-19, Masan has
operated several charity campaign, offers
10,000 meals to families in difficult
circumstances, 300 gifts to support
children in special condition in HCM
city.

Moreover, according to Nongnghiep.vn,

tens of thousands of boxes of basic
supplies were given to the Central
Committee of the Vietnam Fatherland
Front including Omachi noodles, support
both mentally and materially for soldiers,
doctors, medical workers, who are facing
difficulties in isolated areas, hospitals
and border areas where the front lines
fight epidemics.

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IV

EVALUATION
In this part, we will conduct some comparisons to evaluate the relevance between the
targeted customer profile and the Marketing Mix of Masan Consumer’s product –
Omachi. We will take steps by steps to examine the relevance and come up with a total
overall at the end of this part.

1. Product and targeted customer profile

In overall, Omachi has totally satisfied the need of a small, convenient meal but still
provide enough nutrients, especially suitable for consumers who are in working age or
still studying, which is compatible with how Masan Consumer (M.C) divide their
customers based on their occupation and lifestyle, for example, Omachi is very suitable
for people who are currently pretty busy with their working and studying pressure. This
compatibility is strengthened after M.C introduced canned noodles, which allow busy
people to enjoy a quick, convenient and healthy meal without sitting still as they can
carry the noodles can round and avoid washing dishes. The features of Omachi can even
suit the social class of their customers. For example, some Omachi flavors bear the taste
of Western Cuisine (Spaghetti Sauce for example), which fulfills the taste of consumers
from upper, high class.

Omachi is specially perfect with their customer regarding to their gender. With the ability
to beautify human skins, clear dark circles, Omachi is clearly a perfect choice for women.
Attractive, colourful design also impresses the young customers who are fond of active
design. Besides, by adding extra benefits (occasional free taste), M.C can improve the
attitude toward Omachi product of potential customers, help them become more aware in
their readiness stage of buying Omachi.

However, there are still minus points as it is not reasonable to put children and teenagers
into the category of users rate as light users since this group now has tendency to
consume more Omachi products as they seek for quick meal due to lots of studying time.

In conclusion, we decide to give 9 out of 10 of how Omachi product features are relevant
to their targeted customer profile.

2. Price and targeted customer profile

Masan has been applying product line pricing strategy and product bundle strategy for
Omachi. This is a very strong point when focusing on targeted customers in terms of

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demographic segment. Customers of Omachi are divided based on their income, for those
who have low or medium income, they tend to choose the basic products with plastic
wrap package with the price ranges from 6.600 VND to 8.000 VND. The consumers
whose income are from above medium to very high, they are often stimulated by the
products with higher price than the ones with lower price since what they care is not only
the price but also the quality, the features, designs and the brand of the product, these
products can be products with bowl-shaped package (11.000VND), and products with
real meat (15.800VND).

Additionally, in terms of demographic segment, the strategy of Omachi also relates to the
occupation of customers. Omachi focuses on those who are current working and having
paid jobs, especially for high-income and married families, they will care more about
their families so they will choose products that are good for the health of the whole
family; however, there are also married people or high income but still want to have
appropriate spending when buying. Omachi offers a wide range of products by price, so
customers can freely choose the appropriate products.

Moreover, in terms of psychographic and behavioral segment, targeted customers will be

affected by the personality and the benefits due to the product bundle strategy of Omachi.
However, the biggest minus point for Omachi is the price of the product. The price of
Omachi is higher than other products in the instant noodles market, this is understandable
because the product is made from different materials that are from potatoes and has
special features.

In fact, at such a high price, the product will be difficult to reach for all types of
customers, they can only focus more on those with stable income, this will be a major
shortcoming when they have not been widely accessible to students. For that reason, we
decide to give 8 out of 10 for the relevance between the price strategy of Omachi and
their targeted customer profile.

3. Place and targeted customer profile

About place marketing mix of Masan-Omachi product, we think that its distribution
channels are quite suitable for geographic segment of target customers. The first reason is
because of its distribution channel arranged in both rural area and urban area. Urban area
is considered as an appropriate market because there is a large amount of worker who
choose constant noodle as the most convenient product due to lack of time. Besides, the
price of Omachi is reasonable for this kind of residents in urban area.

The second reason is Massan is investigating on rural area more and more. In this area
retailers of this company are becoming more and more popular such as in groceries,
supermarkets… and it also more and more familiar with customers.

The last reason may be online selling of retailers. It is a new effective channel for selling
Omachi. This kind of distribution channel is suitable and convenient with the demand of
customers now. Instead of coming to the supermarket, and other store, now they can stay
at home or work place and ordering.

For place marketing mix, we decided to give 8.5 over 10 point. The only reason for
negative point here is in comparison with other competitors. Omachi of Massan is not
seen to be really exploit well in some remove area like its big competitor – Acecook.

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4. Promotion and targeted customer profile

In general, Masan has done an excellent job promoting Omachi’s noodles to the mass
public. Omachi’s TV commercials are display in major national channels at prime time,
usually between 8pm to 10pm; which is a perfect time to show because it’s in the
transition between news and TV series, most of people watch Tv at that time.
Furthermore, with the use of young influencer to promote, Omachi has showed to their
customers that their products are trendy; therefore, it attracts more children, teenagers
and young adults, increasing their attitude towards Omachi’s noodles, giving the
company a higher conversion rate.

Sale promotion done by offline and online channels are also one of the effective
promotion tools of Masan. The target gender of Omachi’s noodles is female. They are
often the housewives of the family and very conscious about the price for common goods
such as food, water,… Hence, offering percentage discount or multi-buys makes
Omachi’s products more appeal to female customers.

Nevertheless, Omachi’s promotion plan also show some weakness in its use. Firstly,
based on the psychographic segmentation of Omachi’s targeted customers, their desired
customers share the busy lifestyles. They may watch TV less and miss the commercials,
and with that being said, it could be a disadvantage for Omachi’s TVC. Secondly, Omachi
promotion program focus too much on TVC and neglect other online channels. With the
rising trend of online shopping, more people seek for the convenience of ecommerce
websites like the official website or Tiki, Lazada. As compared to the website of their
competitor, Vinacecook, Masan’s website shows less attractive UI with outdated
information and lack of visual. Clearly, Vinacecook has outdone Masan in terms of
promoting their website as an online mean of distribution.

In conclusion, though Omachi’s has showed some deficiencies with regard to promoting
their noodles to fit the customers busy lifestyles, it has successfully addressed the
targeted gender and attitude towards the product. Therefore, we decide to give 8 out of 10
of how their promotion are relevant to their targeted customers.

To sum up, the total overall rate of how the the marketing mix are relevant to the targeted
customer profile is 8.5 out of 10. This rate indicates that there is a comparatively high
relevance between the marketing strategies of Omachi and their customers.

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V
COMPARING
After giving the overall rate on how the Marketing Mix of Omachi product is relevant
with its targeted customer profile, we will conduct comparison between the company’s
performance and the overall relevance rate.

Due to limit of time and difficulty to find exact number on the revenue and profit of
Omachi, we decide to use the numbers on revenue and profit of Masan Consumer (M.C)
in general, which means it will include the financial number of other products of M.C
such as Chinsu or Kokomi. This is also the limit of our report and we hope to fix it in the
future reports.

We decide to make comparison between financial number of 2018 and that of 2019,
together with comparison of between numbers of the fourth quarter of 2019 and the first
quarter of 2020. With the overall rate of 8.5 out of 10, we expect a successful
performance based on financial number of M.C.
Here is the table of the data we collected as much as possible:

2018 2019 Q4/2019 Q1/2020

Net Revenue 17 trillion 19 trillion VND 6341 billion 4566 billion
VND ( increased by VND VND
11,7% (decreased by
compared to 28% compared
2018) to Q4/2019)
Net Profit 57 billion VND 20,5 billion 223 billion 20 billion VND
VND VND (decread by
(decreased by 91% compared
64% compared to Q4/2019)
to 2018)
(Data collected from financial report of M.C
https://www.masanconsumer.com/category/shareholder/)

As you can see from the table, it is unfortunately that the result is not what we expected
as we can notice many decline in the financial number. However, we believe that it
would not be fair to conclude that the relevance of Omachi’s Marketing Mix and its
targeted customer profile is weak as well as our rating is false. We will give some
explanation on how this happened:

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- Firstly, the data we took into account is not the number of Omachi only. It is the
combination of data from all other products that M.C is currently selling. It means that
the decline might be caused by the slump in sales of other products.
- Secondly, there are some fair explanations on the decline in both net revenue and net
profit. According to the financial report of M.C in 2019, the decline in net profit was
associated with “the increase of raw materials price”. The decline of net revenue and net
profit of Q1/2020 compared to Q4/2019 can be explained by the severe damage of
COVID-19 pandemic which caused the whole economy to struggle.
- Thirdly, we can provide some numbers to prove that the sale of Omachi is going well.
At the end of 2019, Omachi was among the five products of M.C that recorded revenue
of more than 1000 billion VND. Omachi was also leading the high-end segment of M.C
as it accounted for a growth of 25% in comparison with 2018. Besides, in 2019, Omachi
was also sharing 70% of market share in instant noodles market with Acecook and Asia
Food. More specifically, Masan and Asia Food are dominating the rural segment as both
of them account for 60% of market share. This highlights that Omachi is still remaining
the competitiveness with their competitors in instant noodles market.

To sum up, we believed that the reasons we had given are persuasive enough to conclude
that the decline in net revenue and net profit of M.C is not caused by Omachi. We also
want to highlight that the Omachi marketing strategy and how it forms up its targeted
customer profile is still reasonable and going well. Therefore, we believed that the
relevant rate we gave in part 4 is correct and that Omachi is doing great work.

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