Masan Consumer Company: Case Study MKT101
Masan Consumer Company: Case Study MKT101
Masan Consumer Company: Case Study MKT101
CONSUMER
COMPANY
Case study MKT101
I. EXECUTIVE SUMMARY
◦ Founded in 1996, Masan Consumer has grown to become a market leader in the domestic food and beverage
industry. A key milestone in our organization occurred on 01 Aug 2003 when established Masan Trading
Corporation with a total charter capital of VND28.5 billion.
◦ Today, Masan Consumer is one of Vietnam's largest local diversified food and beverages companies. FMCG
companies.
◦ The company manufacture and distribute a range of food and beverage products, including soya sauce, fish sauce,
chili sauce, instant noodles, instant coffee, instant cereals and bottled beverages.
◦ Since establishment, the company have developed innovative products in all of our categories, which company have
entered with the aim of fulfilling big unmet needs.
◦ Some of the company pioneering products include Chin-Su, Nam Ngu, Tam Thai Tu, Omachi, Kokomi, Vinacafé,
Wake Up, Kachi, Café de Nam and Vinh Hao
II. COMPANY DESCRIPTION
◦ Masan Consumer Corporation is a Vietnam-based company primarily engaged in the food processing
sector, with major undertakings as the manufacture and wholesale of diversified condiments and
processed food.
◦ Masan Consumer named Masan Consumer Joint Stock Company is the 7th company in the list of
Vietnam's Top 50 Most Valuable Brands 2016 and ranked 2nd in the consumer goods industry.
◦ Masan Consumer manufactures and distributes a wide range of food and beverage products.
◦ Masan Consumer's brand value is valued at approximately US $ 305 million, up 113% and is considered
the company with the strongest growth percentage.
III.MARKETING ANALYSIS
1.Company SWOT analysis
a.Strengths:
- Enterprises are major brands in the market, accounting for 75% of the market
share in the country. Businesses have aimed to build different brands for different
market segments. From the success of existing product brands, Masan Food is able
to expand its market share by capturing the non-branded product segment, which
has a lot of potential for many small and separate manufacturers. discrete.
- The company has set clear goals and orientations: "Becoming a company that
owns 3 leading food brands in Vietnam, is a company with sales of over 100
million USD, highly attractive to organizations. , Big investor "
- Masan has the advantage of a domestic company, understand the situation and
know how to handle problems than foreign investors.
- The distribution network of the business is very strong including 5 distribution
centers throughout Vietnam, a strong sales force with 162 exclusive distributors
and 1,628 sales staff, helping us. bringing the product to over 164,000 points of
sale nationwide.
- Complete, modern machinery, using production technology, closed equipment line, high automation of AVE_ITALIA,
applying strict standards on food safety. Efficient production system with the highest quality standards
- Masan Consumer currently operates a total of 19 production lines at 4 factories in Binh Duong, Tan Binh, Phu Quoc,
and Hai Duong. These factories allow us to produce products with consistent taste and quality that strengthen and protect
our brand. Masan Consumer does not outsource or hire third parties to control production and quality of products.
- Masan Food has an experienced management team who has worked at multinational companies such as Unilever, P&G,
Nestle. At the same time have a thorough understanding of the domestic market. ,. Responsible staff and work enthusiasts
- Regularly organize internal training courses and management team through training, highly qualified, seasoned outside
experience in professional, working skills, life skills ... Training internally many forms: skill training, thematic talks,
training through Meet & Read reading culture, team building, ...
- The management team members have diverse work experience such as Marketing / Sales, R&D Development or from
operating the supply chain of raw materials.
b.Weaknesses:
- Shortages of qualified human resources, especially senior specialists.
- The problem of human brain drain is always a problem.
- Most raw materials cannot be imported directly and through distributors without finding a supply of raw
materials and materials suitable to production needs or prices, contract conditions are not
- Enterprises have difficulty mobilizing capital at high costs.
c.Opportunities:
- Vietnam's accession to the WTO has brought businesses access to foreign markets. Vietnam is the main
focus area for Masan cusumer, which has the fastest growing economy in Southeast Asia. From 2004 to
2011, real gross domestic product (GDP) grew at a compound annual rate of 7.1%. Although Vietnam's
growth is based on low labor costs and increased productivity after the "Doi Moi" reform, Vietnam truly
lies in the potential for domestic consumption and untapped natural resources.
- Masan has many opportunities for cooperation and learning experience.
- State policies to encourage business activities.
d. Threats:
- Compete with many big brands in the market: Vina Acecook, Neslte (Maggi) ...
- The risk of talent bleeding due to the appearance of many competitors.
- Vietnam has recently experienced macroeconomic challenges, including high inflation and a currency
devaluation in exchange for GDP growth. In addition, the private sector, while growing strongly, is still
fragmented, reflected in the revenue and market structure. Private sector companies continue to be
challenged by the constraints of long-term capital, lack of expertise and less competitiveness than
multinational companies.
2.Product/Service SWOT analysis:
a.Strengths:
- The enterprise produces a variety of products: soy sauce, water, wedge seeds, instant noodles and a certificate for each product.
- Organize many promotions for consumers.
- Achievements: European food safety standards HACCP, ISO 9001: 2000 quality management system, TPM comprehensive productivity
maintenance activities.
b.Weaknesses:
- With the information about the use of 3MCPD in soy sauce, super-monosodium glutamate granules, Omachi noodles have only 5% pure
potatoes or contains transfat that goes against the market strategy that has been reviewed by some experts. From an ethical perspective, skeptical
consumers create a bad image for businesses.
- with a complaint from a competitor to the competition administration department, Acecook said that advertising instant noodles of Masan
products violated competition regulations.
3.Competitive analysis:
-Take advantage of large-scale production scale to lower production costs the export also aims to maintain the price advantage.
-Need to combine the CL Mar mix and resources to defeat the opponent equal (160 million USD).
in that market.
- The overwhelming success of Masan's brands comes from a unique weapon that has never been used by competitors before:
fighting the fear of food hygiene and safety of consumers.
- Changing consumers' taste has helped Masan come up with an extremely important strategy, which is to lower costs.
4. Customer analysis:
- Masan consumer products are diverse and the product flavor is also suitable for the taste of Vietnamese
people so consumers can choose freely according to their needs and preferences.
-At the same time, the company also regularly has preferential promotions for its customers.
IV.Market and target customer:
A.Market :
-General trends of the market : Cimigo Market Research Company announced the results of a survey on consumer
selection trends of Vietnamese consumers.
-Economic in the context of rapid economic and social change, people are raising great concerns about
environmental pollution and cases of food poisoning.
-Vietnamese consumers set the standard for a healthy brand that understands specific consumer needs, is produced in
combination with natural materials and applied science effectively. . The way to make advertising must be simple
and attractive. Products should have attractive and convenient packaging, meeting food hygiene and safety standards.
-The trend of interactive advertising on social networks If in the past, many marketers said that social networking is
not suitable for big brands because social networks are aimed at the majority of popular customers, while Reputation
products are for the minority.
◦ -Advertising on mobile phones is a very fertile and very hot land in recent times. The direct cause of this trend comes
from the strong growth of the smartphone market and a series of website versions for mobile phones
launched.According to the latest report from IAB, global sales of This form of advertising reached $ 5.3 billion in 2011
and could grow to $ 11.6 billion this year.
◦ Prominent in this trend is the form of search and display advertising (banner, video, rich media). In Vietnam, by the
end of December 2011, Vietnam had more than 16 million 3G mobile subscribers, an increase of 3.2 million compared
to the statistics in January 2012 (according to the Ministry of Information and Communications).
◦ -Not many experts predict that it will only be a matter of time before online video advertising takes over television
advertising. Advertising experts in the US say online video advertising is becoming more and more popular with the
strength in directing viewers.
◦-Over the past few years, inflation has increased. Although not all families are affected in the same way,
inflation certainly has a strong impact on the purchasing power of Vietnamese people, the most serious effect of
inflation is felt. -Market segmentation: - Masan consumer markets its products in both high-end and mid-end
markets through brands such as Chinsu, tam thai prince, Nam Ngu, Rong Viet, omachi and Tien Vua ..., the
market is divided into segments based on on the basis of demographic criteria such as income.
◦-Overall scale of the market: MaSan Consumer Goods Joint Stock Company: produces sauces, spices, instant
noodles, granules and other packaged foods. To increase market share, Masan Consumer focused on managing
brands by segmenting the target market with their respective separate products.
◦-In recent years, Masan has strived to perfect its existing product lines, while expanding its market share in
many new segments: the participation of Vietnam Oppotunity Fund (VOF) with the goal of making Masan a
company. Leading in trading food and consumer goods in Vietnam. VOF, an investment fund managed by
VinaCapital Fund Management Company, will take a 15% stake in Masan.
B. differential /competitive advantage:
- Masan food brings many benefits to consumers about ensuring health, affordable price
- Masan Consumer is also a well-known and reputable brand in Vietnam market, the company holds the market leading position
in the field of manufacturing and trading of fish sauce, soy sauce, chili sauce and noodles. Instant noodles, so when using Masan
products, consumers can be assured of the quality of the products
- Masan consumer products are diverse and the product flavor is also suitable for the taste of Vietnamese people so consumers
can choose freely according to their needs and preferences. Moreover, the company is constantly learning about the needs of
consumers and developing more and more new products to meet their increasing needs.
- At the same time, the company also regularly has preferential promotions for its customers such as discounts, gifts,
winning games ... so that customers feel that they receive many benefits from our products. Company.
- Enterprises are major brands in the market, accounting for 75% of the market share in the country. Businesses have aimed
to build different brands for different market segments. From the success of existing product brands, Masan Food is able to
expand its market share by capturing the non-branded product segment, which has a lot of potential for many small and
separate manufacturers. discrete.
- The company has set clear goals and orientations: "Becoming a company that owns 3 leading food brands in Vietnam, is a
company with sales of over 100 million USD, highly attractive to organizations. , Big investor "
- The enterprise produces a variety of products: soy sauce, water, wedge seeds, instant
noodles and a certificate for each product.
- Masan has the advantage of a domestic company, understand the situation and know
how to handle problems than foreign investors.
- Organize many promotions for consumers.
- The distribution network of the business (especially la Chinsu) is very strong including
5 distribution centers throughout Vietnam, a strong sales force with 162 exclusive
distributors and 1,628 sales staff, helping us. bringing the product to over 164,000 points
of sale nationwide.
- Complete, modern machinery, using production technology, closed equipment line, high
automation of AVE_ITALIA, applying strict standards on food safety. Efficient
production system with the highest quality standard
- Masan Consumer currently operates a total of 19 production lines at 4 factories in Binh Duong, Tan Binh, Phu Quoc, and
Hai Duong. These factories allow us to produce products with consistent taste and quality that strengthen and protect our
brand. Masan Consumer does not outsource or hire third parties to control the quality and quantity of our products.
We are currently expanding our factory in Binh Duong to meet the growing sales trend over the past few years. This factory
became our main production base in 2011. The first phase of this expansion plan was completed in 2010 with the main task
focusing on the production line automation project. fish sauce.
- Trained, highly qualified and experienced management team Masan Food has an experienced management team who have
worked at multinational companies such as Unilever, P&G, Nestle. . At the same time have a thorough understanding of the
domestic market. ,. Responsible staff and work enthusiasts
- Regularly organize internal and external training courses on professional skills, working skills, life skills ... Internal
training in many forms: skill training, thematic talk, general training through Meet & Read reading culture, team
building, ...
C. Marketing objective
- Facilitate commodities with large market opportunities and potential market size.
- Branding and making a difference to other brands.
- Optimizing profit.
- Maintain and develop business, renew production lines.
- The market can add value, focusing on consumer tastes and health.
- Entering into the market and launching products through a strong marketing strategy.
- Maintain and improve relationships with customers.
- Create a widespread distribution system to bring products to consumers fastest and most
convenient.
- Make optimal use of distribution platform and brand value to penetrate into market segments.
- Improve competitive advantage and meet customer needs.
c.Opportunities:
- Products are essential consumer goods, so there are many potential groups of customers, able to expand
the market and market share.
-Habit of using condiments during meals
d. Threats:
-The issues of food safety are increasingly being strictly inspected and tightened
-A part of consumers is increasingly thorough and knowledgeable in product selection