Masan sector business corporation in Vietnam. It owns
Masan Group is one of the leading private sector business corporation in Vietnam. It owns a portfolio of many fast-growing consumer goods, animal protein, resources, and financial services businesses. Masan Group’s predecessor was established in 1996 to produce Asian foodstuff and other consumer goods in the Eastern European market. In 2000, Masan Group shifted the focus from the international market towards the domestic one with launch of its premium fish sauce brand – Chin-su. Later in 2007, Masan Group entered the domestic convenience food industry and quickly took the second largest market shares in domestic convenience food category and the first place in the premium instant noodle market. (Masan Group Annual Report 2016)According to Masan report (2016), Masan Group is divided into smaller companies which includes Techcombank, Masan Resources, Masan Consumer Holdings (85.71%) and Masan Nutri-science. Under Masan Consumer Holdings are Masan Consumer and Masan Brewery and in this report, we will focus on Masan Consumer which is the company directly in charge of OMACHI. In 2016, Masan Group Net sales increased by 41.4% from VND 30,628 billion in 2015 to a record VND 43,297 billion in 2016 and Masan Consumer Holdings contributed 600 millions US dollars.Its vision is to lead the market in terms of sales, profitability, and powerful brand recognition by meeting the daily needs of 90 million consumers for the less price. The motto is “Doing fewer but bigger”, Masan aims to fulfill the daily big unmet needs of Vietnamese customers. With the innovative spirit, massive application of technology and economies of scale, Masan aims to cut the price of basic need products into half and create more impacts to more lives and by 2020, every household will have at least one Masan’s product. Masan also wants to be the best workplace in Vietnam and become a symbol of quality and a source of pride among Vietnamese. (Masan Annual Report 2016) c. Founder and Chief executive officerIn the first 1990s, Mr. Nguyen Dang Quang came back to Vietnam with the ambition to contribute to the country after years of studying abroad. Since the Vietnamese economy at that time was not suitable for a highly educated person and a new start-up, he came to Russia to build his business. He and his friends came together and built the company called “Masan Rus Trading” in 1996 to produce instant noodles for Vietnamese people living in Russia. After some small success, Masan built a factory with the capacity of 30 million packs per month. Besides exporting instant noodles to Russia, Masan Group started to bring soya sauce, fish sauce, and chili sauce to the Russian market, an idea deemed as “crazy” due to the fact that Russian people do not like spicy food. Amazingly, Masan Group was successful. The company now owns more than 2000 containers and a wide distribution channel with products available at large supermarkets, traditional markets, and 68,000 retail stores all over Vietnam. Masan Group is also distributing its products to international markets including but are not limited to Russia, Italy, Cambodia, Czech, Canada, Central America, and Asian Countries (Masan Report, 2016).d. The noodle industry and OmachiInstant noodles originated from Japan and was brought into Vietnam quite early and Omachi is one of Masan Group’s umbrella products for other instant noodle brands such as: Kokomi, Sagami, and Tien Vua. Launched in 2007, it has since then occupied 7.56% LBN Brand shares of noodle (Euromonitor 2018) (See appendix 3). It focuses on differentiating itself from other brands by leveraging the customers’ fear of food safety to win market shares. Omachi is the instant noodle made of potato and fried at a specific temperature, resulting in noodles that contain the nutrient called kukoamine which is good for skin and health. Whenever customers hear the word “Omachi”, they will think of “potato-made noodles, delicious and not heaty”. Initially, Omachi was packed in packets and sold at 3,000 VND for 4 flavors: Oyster, Korean Hotspot, Pork, and Salmon (Masan Food 2010). However, they changed the strategy and sell Omachi at 7,000 VND for 4 flavors: pork, spaghetti, beef, and Thailand hotspot. Omachi also launched new cup noodle with meat to meet the need of customers. The prior slogan “Omachi, potato-made noodle, delicious and not heaty” is now added with the emphasis on real meat.Since the launch of Omachi, the brand shares have increased from 1.9% in 2008 to 7.4% in 2012 and decreased to 4.9% in 2017 (Euromonitor 2018). During this competitive time, Omachi needs new strategies to maintain and grow its market share, thus different analyses and suggestions will be illustrated later in the report.