Hai Phong Private University Subject: Basic Marketing “Hao Hao” instant noodle Marketing strategy and plan For next five years (2015 – 2020) Lecture: Le Thi Thanh Giang Name: Pham Thi Minh Phuong Class: QTTN 201 Table of contents Contents Page I Executive Summary .3 II General Introduction about company III Current Marketing Situation and Aim .4 1) Dairy market 2) Micro environment 3) Macro environment 4) Aim of plan IV SWOT V Objectives .9 VI Marketing Strategy .9 1) Product Strategy 2) Price Strategy 10 3) Place Strategy 11 4) Promotion Strategy 11 VII Projected profit and loss statement 13 VIII Control 13 2 IX Conclusion 14I Executive Summary: Acecook has been a manufactury of instant noodle in Janpan for a long time; they are the pioneer investor in VietNam market As the result, after 13 years, Acecook VietNam has developed and built main manufatories (Ho Chi Minh City, Da Nang city, Bac Ninh province, Binh duong province, Vinh Long province and Hung Yen province) and 700 dealers nation wide Nowadays, Acecook VietNam products are sold in over 40 coutries around the world: America, Australia, Russia, German, Singapore, Slovakia The company has many product categories: instant noodle,vermicelli noodle, “Pho” noodle , but one of them is the most successful branded that is “Hao Hao” instant noodle Therefore, the aims of Marketing strategy and plan for next five years is contininue to increase market share of “Hao Hao” instant noodle in dairy market After analyzing the current market: Microenvironment (suppliers, substitutes, competition, customers); macro environment (technological, political, cutural, economic); SWOT of company, the plan has launched goals that need to achieve in the next years and the specific marketing strategies (product, price, place and promotion) to achieve that goals II General introduction about company: • 15/12/1993: Acecook invested in VietNam market and was setted up Venture Company between Acecook Janpan and Vifon VietNam • 3/02/2004: Renamed Acecook VietNam Limited Liability Company • 18/01/2008: Renamed Acecook VietNam joint-stock company  Accecook VietNam has achieved many accomplishments: VietNam high quality goods, VietNam Gold Star Award, 3rd Class Labor Medal and is a member of the world noodles, III Current marketing situation and aim: The dairy market: The pie chart shows the market share of instant noodle in VietNam It can be clearly seen that the biggest percentage is spent on Omachi with 35%; meanwhile, “Hao Hao” ranks second with 30% Tien Vua accounts for 25% and others receive the smallest market share with only 10%  “Hao Hao” really wants to lead the market share on instant noodle market in VietNam with more than 50% Micro Enviroment: 1.1 - “Hao Hao” has an extremely effective operating system - Domestic raw materials take up 95%, so “Hao Hao” can easily use source of highly qualified raw materials that are not taxed  “Hao Hao” instant noodle does not to face the pressure from suppliers’ competition 1.2  Suppliers: Substitutes: • In broad sense, “Pho” is the most substitutes’ replacement of “Hao Hao” • In fact, “Hao Hao” instant noodle is more favorite and favorable than “Pho” in terms of both characterists ( tough noodles, handy and many different flavors) and price ( cheaper than “ Pho”) The threat to be replaced is minor 1.3 Competition: Strengths + Strong brand Weaknesses + Has 45 years on the market + Does not improve packaging, Vifon and sustainable development quality  Not meet difficult customers + Low price + Strong brand + Much packaging investment beautiful ads, + High price and  Do not expand market diversified product Omachi + High level of technology + Sologan: “do not worry be hot”  the expectation of target customer 1.4 Customers: • Market segmentation: - Location: city and country area Demographic: People have an average income (1-3 million/month); - customers age 6-17 and 18-55 Psychographic: nowadays, people have too much work and always busy, so they need quick and fast food • Target customers: (Source: General Statistics office) 5 -  The population of VietNam by 2015 VietNam’s population are 325 million people In which (age structure is as follows):  – 17 years: 30% (male 12,524,098; female 11,807,736)  18 – 55 years: 65% (male 26,475,156; female 27,239,543)  Over 55 years: 5% (male 1,928,568; female 2,714,390) The percentage of 18 – 55 years accounted for 65% of population of VietNam This is the labour force, so target customers of “Hao Hao” instant noodle are that group of people (students, officers, housewives ) In • addition, there is a small number of people aged – 17 Market positioning: - “Hao Hao” - people think of the convenience of it This is “delicous, quick, cheap” Macro Enviroment: 3.1 - Technological: The most modern technology with closed process and the automatic production line system of Southeast Asia 3.2 Political: - Our country is applying open policy to economic development - The country has also made reform of the legal system to ensure security, order, political and social stability 3.3 Cultural: - Culture profoundly influences the selection of products, such as usability  of the products, nutritional value In order to respond customer demands, “Hao Hao” has many product lines to meet customer tastes 3.4 Economic: - Due to economic crisis, the number of consumers is limited  it makes - business have difficulty raising capital and expanding production In addition, the price of raw materials increases  it affects sales of product Aim of plan: 6 - The first objective of the plan is to increase the market share of “Hao - Hao” instant noodles on Vietnam’noodles market The second objective is to increase ability to compete with other brands on the market IV SWOT of “Hao Hao” instant noodle Strengths + High and mordern Weaknesses production + Heating and heat Use + + Quality assurance environmental problems + Eye-catching design + Do not make a distinction between + High foreign investment products Opportunities nilon packaging  technology has Threats + Instant nooddle has strong growth and + Compete with domestics and foreign stability have strong potential + Consumers increasingly concerned + Compete with some big competitors about the quality of product and above who are coming to VietNam all their health + Are there any products can instead of + Sophistication in customer demand “Hao Hao” instant noodle?  Strategy increasing, they need something new, to maintain the best image is customer’s strange mind V Objectives • • Strategic objectives: “Hao Hao” instant noodle is going to become noodle market leader by 2015 Revenue goals: By 2016: “Hao Hao” instant noodle will reach 1.5 billion USD revenue By 2019: Revenue will reach 2.4 billion USD Growth in market share: Accounting 50% of the instant noodle market share in - • VietNam by 2015 VI Marketing strategy Product strategy 1.1 Product categories: “Hao Hao” instant noodles include:  Instant noodle hot sour shrimp flavor  Instant noodles dry-fied flavor  Instant noodles chicken flavor • 1.2 Name: • “Hao Hao” - Names associated with product characteristics, easy to read, deeply impressed with the customer 1.3 Quality:  “Hao Hao” instant noodle has delicious taste, which is suitable to the Vietnamese  Nutrients in each packet is guaranteed  “ Hao Hao” instant noodle is extremely proud to recieve quality management system ISO 9001:2008, enviroment management system ISO 14001:2004, system control of food safety hygience HACCP and international food standards for European retailers IES 1.4 Sample code, packaging: • • Packaging: showy, standout and catching-eyes Size: - Pack: + Net weight: 75g - Box includes 30 packs 1.6 Form: on the packaging to show full information Price strategy: 1.1 Price: o At supermarket:  Instant noodle hot sour shrimp flavor:  3200 VND / pack and 95000VND / box  Instant noodles dry-fied flavor:  3300 VND / pack and 99000 VND / box  Instant noodles chicken flavor:  3100 VND / pack and 93000 VND / box o At street store:  Instant noodle hot sour shrimp flavor:  3400 VND / pack and 102000 VND / box  Instant noodles dry-fied flavor:  3500 VND / pack and 105000 VND / box  Instant noodles chicken flavor:  3300 VND / pack and 99000 VND / box 1.2 Price strategy: - “Hao Hao” instant noodle is suitable to customers with average income, so they choose reasonable price  This by way, they can attract customers and increase competitiveness with rivals Place strategy: • The consumer marketing channels: Manufacture Retail stores Consumer 9 • “Hao Hao” instant noodle uses MT distribution available at major retail system as Big C, CoopMart, and Maximark • At present, they have factories at Ho Chi Minh City, Da Nang city, Bac Ninh province, Binh duong province, Vinh Long province and Hung Yen province; and 700 distributor put everywhere investment modern methods and applications of the best preserved  They use distribution strategy to expand the market, widen agents and increase the number and quality of distribution channels Promotion Strategy: 4.1 Advertising: 4.2.1 Advertising on television      Target object: people with average income Advertising on the channel: VTV3, VTV1, HTV7, VTC1, Time: peak viewing hours Lengths: 30 seconds Representing Advertising: Tran Thanh 4.2.2 Advertising in newspapers:   Target object: student, housewives Newspapers: Hoa Hoc Tro, The Gioi Phu Nu, Tiep Thi Va Gia Dinh, Doi Song Gia Dinh 4.2.3 Outdoor Banner: 10  Position: bus shelters, inner city areas: near workplace, main roads,  school Communication at Point of Sale: 10 - At supermarket: Boot of “Hao Hao” instant noodle decorated - striking and eye-catching next to Omachi, Tien Vua, Cung Dinh At the small stores: They provide advertising banners, supporting product display 4.2 Promotion: • There are some outstanding promotions of “ Hao Hao” instant noodle:  “Hao Hao” winning dining car ( times 15/10 – 31/12)  “Hao Hao” billionaire (times 15/4 – 12/7)  Gratitude to loyal customers who have used “Hao Hao” instant noodle during the past 4.3 Public relations activities:  “Hao Hao” gives many avaible Tet gifts for poor children in Binh Dinh: 500 gifts (500 box of “Hao Hao” instant noodle and 50 million VND) were delivered into the poor children and student in communes: Phuoc  Hoa, Phuoc Thang, Canh Hiep, Canh Lien Relief operations in Middle coutry fellow: 1000 boxes of “Hao Hao” instant noodle were delivered  Heart represents mutual affection and  love for fellow in Trung Son (Quang Tri) floods In addition, they organize many shows, such as “cosy family meals”, “gracious ASEAN television” VII Projected profit and Loss Statement: • In 2016, Profit will reach about 75 million USD on the market from 1,5 billion USD revenue • In 2019, Profit will reach about 122.4 – 127.2 million USD on the market, market revenue achieves 2,4 billion USD 11 11 VIII Control: Evaluation strategies program: • Time evaluation: months and months after application of strategy • Object: customers and retail outlets in the targeted areas, such as city and • country area Coustomer: collect the opinion survey feedback from customers, after that measure and compare Inbound logistics • Evaluation staffs:  Training course: + Long-term: months – months + Short-term: weeks – month  Improve communicate skill, teamwork, professional skill  Make test  After months and 12 months, the staffs who are hard working receive some valuable gifts • Control in manufacturing: quality, weight, packaging • The way automaic noodle with modern machinery has also helped control high quality dairy ingredients Outbound logistics: • Evaluate the effectiveness of activities of the channel members periodic • six moths/time Fixed reward (7,5% based on retail price) proposed bonus 3.5% of the products sales reached purchases each quarter IX Conclusion: The life is more and more emergent, most people are busy and not have much time for cooking, so “Hao Hao” instant noodle is the best choice Moreover, “Hao Hao” is servered more than billion meals per year and in the top of instant noodle consumed mostly in VietNam market In the future, “Hao Hao” instant noodle will be more and more develop and will meet the needs of customer With markeing plan from 2015 – 2019 will be profitable for businesses as expected and the action programs will happen usefully 12 12 -End Source: o  http://acecookvietnam.com  http://timtailieu.vn  http://doko.com o 13 Website: General Statistic Office: http://gso.gov.vn 13 ... Contents Page I Executive Summary .3 II General Introduction about company III Current Marketing Situation and Aim .4 1) Dairy market 2) Micro environment 3) Macro... Macro environment 4) Aim of plan IV SWOT V Objectives .9 VI Marketing Strategy .9 1) Product Strategy 2) Price Strategy 10 3) Place... of them is the most successful branded that is “Hao Hao” instant noodle Therefore, the aims of Marketing strategy and plan for next five years is contininue to increase market share of “Hao Hao”