Individual graduation assignment 2

DEVELOP A NEW MIX IN MID-TIER INSTANT NOODLE SEGMENTPham Nhat Minh – Elite 3

Instant noodle market is Vietnam is very skewed to mid & low tier segment with “chua cay” is dominant taste

BUSINESS CONTEXT

4

39

8

16

14

8

Value contribution by brand (%)

Omachi Hao Hao 3 Mien Gold

Kokomi Gau Do 3 Mien

9

49

42

Value contribution by brand (%)

Top-tier Mid-tier Low-tier

Chua cay: 71%Non-cc: 29%

In term of competition, Hao Hao rules the market with 39% value share

Challenge:Successfully landing new brand of Asiafoods in mid-tier segment to compete with Hao Hao

WHAT IS HAO HAO’s SUCCESS FACTOR?1. Being the first brand register the signature taste of instant noodle in consumer mind

Since 2000, “Chua cay” has been the most dominant taste in instant noodle – more than 70% of the market

2. Serve the right need of right target consumer

Hao hao is providing the middle-class residents with affordable & tasty meal everyday.

3. Many competitors brand step into “chua cay” taste segment but unable to create the relevance & differentiation at the same time cannot compete with strong & long-established brand like Hao Hao

Provide the same taste of “chua cay” like Hao Hao Define different expression of “chua cay” but not relevant with consumer

3 Mien, Omachi, Gau Do and many other brands…

Salmon creates the new news but not relevant with middle class consumer

SO WHAT IS KEY WEAPON TO COMPETE WITH HAO HAO?

Build the distinctive expression of “chua cay” but relevant with target consumer

Target consumer

Middle-class residentsNationwide but more skew to ruralIncome: BCD+

- Entry factors: replace the normal meal to provide energy

- Distinctive factor: delicious, matching with their own taste

- Other factors: nutrition or health concern of instant noodle – not strongly come out from this target group

Who are they? What are they looking for in instant noodle product?

SOUTHCENTRAL

HOW THE CONSUMER DIFINE “DELICIOUS”?Fact 1: “Delicious” is defined according to the own taste of individual, which is built up since they were born and affected by culture and traditions.

Fact 3: However, coming to region level, there is a difference in taste as well as definition of “what is delicious” and expression of “chua cay”

Source: http://ngaynay.vn/du-lich/su-khac-biet-trong-vi-chua-ba-mien-bac-trung-nam-6893.html

NORTH

Sourness with light taste & feeling from traditional vinegar Sourness from fruit (pineapple,

starfruit…) and very strong spicy

Sourness from fruit & leaf, middle spicy, add more sweetness

Fact 2: There are common tastes among a geographical regions. Eg: North people prefers light taste while Central like strong spicy and South enjoy sweetness

SOUR & SPICY INSTANT NOODLE WITH FAMILIAR HOME-TOWN TASTE

provide to Whom what Need the Uniqueness by RTB

Middle class residentsNationwide but more focus in rural

Income BCD+

A new kind of sour & spicy instant noodle

With the hometown taste that you are in love since being child

3 different kind of tastes adjusted to each regions for Vietnamese people

Introduce MỳchuacayThuầnViệtwith positioning

Consumer insights for product development: “Sour and spicy” is common taste in Vietnam cuisine and very favorable for all people. However, in different regions, there is an adjustment in how to make food “sour & spicy”, which is long-established from culture & traditions.

Roots: instant noodle with source & spicy tasted adjusted to common taste of regions

Target consumer:

Middle class residentsNationwide but more focus in rural

Income BCD+

Competitive environment: Mid-tier instant noodle, dominant by Hao

Hao with signature sour & spicy tatse

Consumer insight: “Sour and spicy” is common taste in Vietnam cuisine and very favorable for all people. However, in different regions, there is an adjustment in how to make food “sour & spicy”, which is long-established from culture & traditions.

Benefits: Energy providing

Discriminators: In only Thuan Viet instant noodle, you

with find your favorite home-town “source & spicy” taste

Value-belief-personalities:

THE CLOSE FELLOW-COUNTRYMAN:Very lose with you to know your preference,

habit & favored taste.

Reason to believe:

3 different kind of tastes adjusted to each regions for Vietnamese people

Brand essence: SOUR & SPICY INSTANT

NOODLE WITH FAMILIAR HOME-TOWN TASTE

BRAND LOVE KEY

MỳchuacayThuầnViệt

MARKETING MIX

PROPOSITION: SOUR & SPICY INSTANT NOODLE WITH FAMILIAR HOME-TOWN TASTE

Product: different core variants for different regions

Price: stay on bar & completive with Hao HaoPlace:- DT (90%) & MT (10%)

Promotion: Consumer promotion & activities: highlight the distinctiveness in “sour & spicy” taste to match with taste of sub-group of consumer. Retailer promotion: loyalty program and trade incentives are very critical in instant noodle market

Pack: plastic packaging with different illustration

for each variant to be relevant with consumer groups in each regions

North Mì chua cay Thuần Việt: chua thanh dấm bỗng

Central Mì chua cay thuần Viêt: thơm nồng mắm tôm chua

South Mì chua cay Thuần Việt: thêm ngọt hương Nam Bộ

__ Thank you__