MKTG 1253 - g7 - Product Analysis - Omachi 2

XYZ Noodle
Table of Content
XYZ NOODLE – Product Analysis & Marketing Plan 2010
Executive Summary...........................................................................................3
Introduction........................................................................................................4
Target Markets and Positioning.........................................................................6
Primary target markets...........................................................................6
Potential target markets..........................................................................6
Perceptual map.......................................................................................7
Consumer decision making process...................................................................9
Purchase Involvement Level and Decision Making Type.....................9
Information search...............................................................................10
Evaluative criteria................................................................................11
Outlet selection....................................................................................12
Postpurchase dissonance......................................................................13
Product disposal...................................................................................13
Internal Influences............................................................................................14
Perception.............................................................................................14
Type of learning...................................................................................15
Motivation............................................................................................16
Evaluation............................................................................................17
Recommended strategies..................................................................................19
Product development............................................................................19
Package design.....................................................................................19
Advertising...........................................................................................20
Promotion strategy...............................................................................21
Distribution strategy.............................................................................21
References........................................................................................................25
Appendices.......................................................................................................26
Executive summary
This paper provides an insight into product analysis of XYZ Noodle instant noodles
manufactured by Massan Group. In 2009, despite having aggressive competition from other
brands in the same product category, XYZ Noodle’s market share accounted to 45 percent in
premium instant noodle line.
Target and otential markets are also identified. XYZ Noodle targets at middle-income customers
who have active and busy life style but express health concern for fast food products. Two
potential market segments are middle-class restaurants using noodles for hotpot and Vietnamese
customers living in the US.
Based on consumer’s perceptual map, XYZ Noodle is highly positioned in terms of
quality and taste. However, due to the nature of the product and variations of quality, price, and
flavors, XYZ Noodle products have low purchase involvement level in which consumer decision
types range from habitual to limited decision making.
Consumers use internal search while also receiving information about XYZ Noodle
through its marketing activities. Four evaluative criteria are considered important among XYZ
Noodle consumers, including quality, price, package, and flavors. When making purchase
decision, consumers may follow the sequences of outlet first, brand second, or brand first, outlet
second, and there is rarely serious post purchase dissonance.
Overall, it is recommended that XYZ Noodle should incessantly engage in product
development, changing package design, creating unique advertising jingle, promotional
campaign and distribution strategy to improve consumer’s experience toward using XYZ
Noodle.
Introduction
XYZ Noodle is a brand created by Massan Group which is founded in 1996 with ten
employees. Currently, Masan group is one of the largest enterprises in Vietnam with more than
fifteen subsidiaries and 2,000 employees, generating about 110 millions USD of annual revenue
(Fortinet, 2009).
Some well-known brands in Sauce and Seasoning Category and Convenient Food
Category include Chin-Su, Nam Ngu, Tam Thai Tu, Rong Viet, Tien Vua and XYZ Noodle
(Massan Group, 2010). Masan Food was voted the #1 brand in the sauce and seasoning category
by Saigon Tiep Thi (Saigon Marketing) for four continuous years. The market share of Masan
Food’s products is showed in figure 1.
Figure 1. Reproduced from: HSC 2010.
Prior to the launch of XYZ Noodle, the manufacturer presented in instant noodle market
with two brands, Kokomi and Chinsu that were not successful. Firstly, XYZ Noodle was priced
at 3000 VND with four types of flavors, Salmon, Thai Oyster, Korean Hotspot, and Pork
(Massan Food, 2010) However, they currently produce only three types, XYZ Noodle pork, beef,
and shrimp priced at 5000 VND. Previously, the slogan was “Delicious potato-made noodles”
that has now been changed to “Delicious and not afraid of inner heat”. Also, the design of the
package was modified from horizontal to vertical layout.(Figure 2,3)
Figure 2. Reproduced from: Masan Food 2010 Figure 3. Reproduced from: Masan Group 2010
According to Masan Group (2010), XYZ Noodle’s market share in premium instant
noodle line in 2009 accounted to for percent with more than 140 distributors and 126,000 points
of sales, representing a 32.2% year‐over‐year increase.
XYZ Noodle has been encountering a number of major
brands which are Hao Hao, Hao 100, Gau Do that spend
more than 50 percent of communication budget of the
product category and the high level of present in the
market (CPI, 2009). The first and foremost
competitor considered is Vina Acecook, the leading
brand in instant noodle category. In its
communication activities, Vina Acecook emphasizes on
product high quality standardized by Japan technology. Following
Acecook, A Chau is another huge competitor who consistently promotes its well equipped
factory and latest instant noodle production lines by Japanese modern technology.
Target Markets and Positioning

Target Market
Based on the four variables of segmentation, XYZ Noodle’s target markets are people
whose age ranges from 18-30 years old, living in urban areas or big cities like Ho Chi Minh or
Hai Phong, having middle income with young, active and in-hurry lifestyle, especially ones
looking for solution to inner heat caused by instant noodles. Moreover, XYZ Noodle also aims at
people who tend to become loyal customers.
Figure 4. Segmentation and Target Markets
Potential Market Segments

In the behavioural segment, specifically benefits sought, a potential market segment for
XYZ Noodle includes customers who need noodles for hotpot in their meals or middle-class
restaurants serving hotpots in their menu. Instead of buying low-quality noodles, the cooking
chiefs may prefer XYZ Noodle instant noodles since XYZ Noodle is not only convenient but
also made of excellent ingredients.
Another attractive market segment, or geographical unit, locates in the states of USA,
where there are a lot of Vietnamese American and students studying abroad. The fact that many
Vietnamese, especially Vietnamese students studying in the US, purchase instant noodles in the
supermarket should be considered while expanding consumers market. With the population of
1,642,950 Vietnamese American in 2007 and 13,000 Vietnamese students abroad in America
(Ha 2009), this country is a promising land for XYZ Noodle high-quality products.
Perceptual Mapping
Good taste, many flavours
HAO HAO XYZ NOODLE

GAU DO
TIENG VANG
Low-quality High-quality
Ingredients A-ONE Ingredients
MILIKET
Bad taste, few flavors
Figure 5.based
The perceptual map is constructed Perceptual
on twoMap
evaluative criteria: Quality and Taste of
instant noodles. In term of quality, XYZ Noodle is regarded as a product with high-quality
ingredients along with Hao Hao and A-One. Most consumers are pleased with the potato-made
instant noodle of XYZ Noodle. In contrast, Gau Do and Tieng Vang are not rated high in their
quality. Miliket seems to be the worst brand in consumers mind regarding ingredients quality.
On the other hand, XYZ Noodle, Gau Do, Hao Hao and Tieng Vang all score high in
term of taste and flavours. Among these, Hao Hao and XYZ Noodle both provide satisfactory
flavours and awesome taste to the consumers. On the contrary, Miliket and A-One with little
development and research on flavours and consolidated sauces do not meet the customers’
demand.
Generally, consumers have positive perception about XYZ Noodle instant noodles.
Consumer decision making process

Purchase Involvement Level and Decision Making Type
The act of purchasing XYZ Noodle is considered low purchase involvement level
because instant noodles are convenient and inexpensive products. Simply, when consumers have
concern or desire to buy instant noodles, they go for convenience stores or supermarkets to buy
them.
Recently, consumers have been enjoying the benefits from the tense competition among
instant noodle brands with different qualities, prices and flavours, which leaves consumers
confused about choosing among brands. Therefore, instant noodles including XYZ Noodle at
first are bought through limited decision making. However, the high-quality and delicious taste
of XYZ Noodle encourage consumers to make purchase again and again, which contributes to
habitual decision making in grabbing XYZ Noodle instant noodles on the shelves.(see figure 6)
Figure 6. XYZ Noodle Decision Making
Actual and desired staterning, feeling cold and in a need of a hot meal, being tired of
preparing meals etc.
(Noodles with vs
without ‘hot’ effect)
Based on customer’s desired state, which is consuming the kind of instant noodle without
causing inner heat, XYZ Noodle activates their selective problem recognition. It means in the
consumer’s mind, XYZ Noodle is the only brand that can provide them that kind of healthy
product and this creates great competition advantage for XYZ Noodle.
Information search
Internal search
Most consumers of XYZ Noodle use the relevant information from long term memory
such as past purchase or prior experiences to make purchase decision. The good feeling
generated from eating XYZ Noodle in the past can be an effective source of internal search.
External search
Generally, the consumers know about XYZ Noodle through marketing sources such as
TV commercials, advertisings on the internet or newspapers. Besides, consumers also depend on
the direct experience through trials, or refer to the opinions and recommendations from their
friends about XYZ Noodle.
Brand Awareness
XYZ
Noodle, Hao Hao, Trung Vang, Unif and Topa are top five of instant noodle that customers often
recall. Hence, XYZ Noodle uses the maintenance strategy which maintains the consistent
quality of the noodle and pays much attention to POP display attracting the attention from the
consumers about XYZ Noodle. Consequently, they immediately think of XYZ Noodle whenever
needed. In case XYZ Noodle and other top five instant noodles are not available because of
stockout or other reasons, the consumers could use Tien Vua, Aone or Gau Do in the inert set to
replace.
Evaluative criteria
The combined results of quick survey on

20 RMIT students on 10 August, 2010
There are four criteria that those students using the most in choosing instant noodles
brands: price, quality, taste and package design.
Quality
Fifty percents of surveyors regards quality as the most important criterion and are willing
to purchase the instant noodle with good quality. Therefore, Masan Food does not use the
chemical to process the noodles but natural spices to protect the consumers’ heath. Moreover,
potato-made noodles contribute to improve this quality indicator.
Price
Consumers also want to choose the brands that offer high quality with lower price, not
the lowest price (mid level brands). Comparing with other brands, XYZ Noodle has the
affordable price with high quality.
Package
To most new consumers, packaging could be a good start to determine which brand to
buy. Normally, consumers are captivated by the products with novel design and appealing
appearance. XYZ Noodle’s package is perceived cautchy, modern and stylish.
Flavor and Taste
Flavour and taste are a critical criterion. Masan Food differentiates itself by making XYZ
Noodle from potato. Hence, the flavor of XYZ Noodle is absolutely dissimilar from other
brands’. This is the just-noticeable difference of XYZ Noodle.
Surrogate indicators
People can regard price and celebrity as indicators for quality of instant noodles. XYZ
Noodle fall into middle price level and has famous actors in commercial clips, which contributes
to XYZ Noodle’s competitve advantage.
Outlet selection
Outlet first, brand second

Since XYZ Noodle’s target segment is people living in big cities and being in hurry, they
tend to stop at any convenience store or supermarket they see first and then choose among brands
available in the stores.
Brand first, outlet second
At first, loyal customers of XYZ Noodle usually think of buying XYZ Noodle and then
consider which stores really have XYZ Noodle. According to Nguyen (2010), there are about
65% of Vietnamese who do not have the habit go to the super market, which means people often
think of the type and the brand before that going to the convenience stores.
In store influences
Store image plays an important role in consumer store choice. Therefore, XYZ Noodle
has used point of purchase (POP) display (see appendix) to attract the attention from the
customer.
Shopping-orientations
 Time-staved: busy people who never have enough time
 Traditionalist: middle-class housewives with children
Post purchase dissonance
Low purchase dissonance High purchase dissonance
Figure 8
For XYZ Noodle instant noodle, there is no serious purchase dissonance because of:
Low involvement purchase decision
Low level of the importance of decision
Low degree of commitment to the decision
Moreover, XYZ Noodle package is designed to be opened easily, which reduces post
purchase dissonance. However, post purchase dissonance can happen because of consumers’
tendency to experience anxiety while trying new products like XYZ Noodle.
Product Disposal
Because of the consumers’ increasing concerns for ecology, the costs and scarcity of raw
materials, and the changing laws, marketing manager is paying attention to the prouduct disposal
behaviour of consumers. However, people mostly get rid of packages by throwing them to the
bin. Few people think of recycling XYZ Noodle’s packages that are plastic-based, small-sized
and almost useless.
Internal Influences
Perception
Regarding exposure, most of consumers expose to XYZ Noodle’s advertisement through

TV, magazine or internet randomly, which means it often happens just after they finish watching
a movie or while scrolling down the page without their intention searching for it.
What get their focus during the exposure are the full page size and attractive colors of
paper-based advertisement, the movement of lips kissing noodles and just enough information
provided to cause awareness and curiosity in commercials. People pay attention more to XYZ
Noodle's advertisement basically because of their interest in trying or tasting something new,
something different rather than the need to know.
The interpretation of XYZ Noodle’s consumers occurs in a cognitive way. This means
the paper-based advertisement and commercials all use captions and speeches in fundamental
words such as ‘XYZ Noodle – irresistible deliciousness’, providing semantic meaning for a vast
number of buyers to understand properly, therefore, get familiar to XYZ Noodle noodles and feel
like purchasing the product.
Types of Learning
Classical conditioning is mentioned due to the reason that the main way customers are
aware of the product is through advertisement or commercials, and they would have positive
feeling towards about it, which after that, forces them to buy and try out XYZ Noodle noodles.
Moreover, buyers tend to think of XYZ Noodle products immediately when they hear
about instant noodle that does not cause inner hot effect. This means they use iconic rote
learning, the process of learning the association between two concepts (inner hot and XYZ
Noodle noodles) or more without the conditioning presented.
Last but not least, another way consumers learn about this brand is through vicarious
modeling. The celebrities’ eating behaviour, shown with their appearance of being pretty and
well shaped, that
XYZ Noodle
uses in the
advertisement
views to
consumers the
positive result
of using the
product, so
they may
adjust their
purchasing
behaviour and
start to buy
XYZ Noodle instant noodles. (figure 9)
Figure 9
Motivation
In regard to Maslow Hierarchy of Needs (figure 10), besides meeting physiological
needs with fast and convenient meals, they try to activate safety and security need by
stimulating awareness of “inner heat
prevention” from XYZ Noodle
products.
As for McGuire Theory, Figure 10
utilizing cognitive motives, marketers

firstly adopt cues in cognitive
preservation. To illustrate, the
advertisement employing celebrity
endorsement exhibits a surrogate
indicator, which gets customers infer
XYZ Noodle’s quality to be high as
they’re young and easily influenced. In
addition, nice package design is also
considered as one of observable cues to customers.
In terms of cognitive growth, XYZ Noodle tries to diversify its products to meet novelty
motives which relate to the need of variety and difference (Quester et al. 2007). Again, solving
“inner heat” illustrates marketers’ effort in satisfying utilitarian needs. This also builds a
connection to tention reduction of effective preservation needs as customers are free from the
concern caused by inner heat.
Finally, regarding affective growth motives, observing positive effect famous people
have after using XYZ Noodle allows customers to feel confident and likely to perform the same
behavior, which has fulfilled their modeling needs.
Attitudes
The combined results of quick survey on
20 RMIT students on 10 August, 2010
Figure 10. Adapted from: Quester et al. 2007
Cognitive component
Most surveyors have a good attitude towards XYZ Noodle’s price, taste and package
design, which is the result of XYZ Noodle’s huge investment in R&D team including 50 food
technologists (HSC 2010). Moreover, XYZ Noodle succeed in spreading out and educating the
customers of its potato-made noodles. Nevertheless, some consumers are still not sure about the
chemicals put into XYZ Noodle.
Affective component
According to Quester et al. (2007), continued repetition of advertisements for low-
involvement products may increase the liking for the product. This is proved when XYZ Noodle
used TV commercials - part of 20-million-USD advertising campaign (HSC 2010) - and mere
exposure to improve the affective components.
.
In commercials of
XYZ Noodle, the two
famous actor and
actress acting in the
same popular film
series eat XYZ
Noodle in an
enjoyable and
romantic way. Figure 11
Behavioural component
15 out of 19 surveyors who have purchased XYZ Noodle will purchase XYZ Noodle next
time. This figure points out the remarkably positive intention to purchase behaviour of XYZ
Noodle. This success is also attributable to XYZ Noodle’s effective use of POP and premiums in
wide range of supermarkets.
Recommendation strategies
Product development
Regarding McGuire’ motivation theory, since customers’ novelty motive stimulates their
desire for variety and difference, adding new flavors or ingredients continuously will serve as
surrogate indicators that influence their buying decisions. Additionally, diversifying product
forms involving making Noodle Cup, Noodle Bowl can benefit different types of consumers
such as travelers and so on. Lastly, by doing research on customer demand, the company will
be continuously updated about their new expectation and able to satisfy them in a timely manner.
Package Design
Using paper-based packages brings some competitive advantages. Firstly, it enables

XYZ Noodle to produce this type of package from recycled paper and offers a convenient way
for customers to dispose after use. With this strategy, the company expresses its concern for
environmental issues, building a good image in customer mind. In addition, expenses on package
production can reduce considerably due to paper-based strategy’s implementation (figure 12).
Reversely, creating a fresh attractive look for the new package can become an obstacle.
Marketers need to be aware that package is one of observable cues which buyers base on to
choose among a variety of noodle brands.
Figure 12
To make this strategy work, marketers should
educate customers about the advantages of this strategy, how it can benefit them in a long term
and the international trend of environment friendly materials through advertisements on TV or
newspaper, which is also a good way to attract customer attention to XYZ Noodle.
Advertising
Including advertising jingle in the commercials can be a wise strategy to keep the ad
stay longer in consumer’s mind. Music has great impact on consumers’ short-term memory as
they get familiar with the sound, with or without their awareness, reminding them of the ad
whenever they hear the ad jingle. With this tactic, the advertisement can perfectly serve its role.
Promotion Campaign
Nowadays, customers have become more and more concerned about social issues. Using
the promotion tool “Buy 5 packs - Give out 1 pack for charity”, marketers not only try to
increase sales by encouraging customers to buy in bulk but also get customers involved in social
activities, which consequently engages them in good feelings since they can contribute to
community development.
With an emphasis on marketing for XYZ Noodle’s new paper-based package, a press
conference can be hold in order to introduce its new look and give explanation of its advantages
to environment.
Distribution Strategies
Regarding the importance of high level of product avalability to XYZ Noodle’s target,
who is active and always in hurry, prolonging Intensive distribution strategy is necessary as it
allows XYZ Noodle’s products available any time and anywhere customers want them.
Besides intensive distribution, XYZ Noodle marketers can think of exclusive distribution
style such as utilizing Noodle mobile van campaign, which can be an innovative way to
distribute its product. XYZ Noodle mobile vans will sell only Massan products including XYZ
Noodle, along with materials necessary for making a highly nutritious meal with instant noodles
(Figure 13). These vans move around cities and may stay longer at amusement parks, trade fairs,
sport match venues, stadium and even music concerts owing to a high demand of fast and
convenient meals in these places.
Also, opening XYZ Noodle outlets in universities and high schools can be beneficial.
Illustrating a huge consumption of this product, students play as one of the most important target
of XYZ Noodle.
Though these tactics may or may not be profitable to Massan Group, the company
should avoid possible big losses from operating these vans or outlets. Regardless of profitability,
the company aims at reinforcing XYZ Noodle’s reputation together with promoting positive
feelings of customers for XYZ Noodle.
References
CPI 2010, ‘Cuoc chien my an lien tren thi truong Chau A’, viewed 5 August 2010,
<http://vietbao.vn/Kinh-te/Cuoc-chien-my-an-lien-tren-thi-truong-chau-A/10803623/87/>.
Fortinet 2009, ‘Vietnam-based manufacturing company adopts Fortinet’s security solution to

protect its entire WAN infrastructure’, viewed 5 August 2010,
<http://www.fortinet.com/doc/cases/masan_group.pdf>
Ha, A 2009, ‘Sinh viên Việt Nam học ở Mỹ xếp thứ 9 thế giới’, Vietnamnet, 17 November,
<http://vietnamnet.vn/giaoduc/200911/Viet-Nam-lot-top-10-luong-sinh-vien-du-hoc-My-
879150/>.
HSC 2010, ’Masan Food’s market share’, table, in HSC, Company Report: Masan Group, p. 6.
Masan Foods 2010, ‘XYZ Noodle Ngheu’, image, viewed 14 July 2010,
<http://www.masanfood.com/chinsu/product.php?id=27&cid=2>.
Masan Group 2010, ‘XYZ Noodle Beef’, image, viewed 14 July 2010,
<http://masangroup.com/businesses/products.html#>.
Massan Food 2010, ‘Instant Noodle Products’, viewed 30 July 2010,

<http://www.masanfood.com/chinsu/product.php?cid=2>.
Nguyen, DB 2010, “ Xep hang thi truong ban le toan cau 2010”, Dantri, viewed 6 August 2010.
<http://dantri.com.vn/c76/s76-413533/xep-hang-thi-truong-ban-le-toan-cau-2010-viet-nam-dang-
roi-tu-do.htm>.
Quester, Q, Neal, C, Pettigrew, S, Grimmer, M, Davis, T & Hawkins, D 2007, Consumer

Behaviour: Implication for Marketing Strategy, 5th edn., McGraw-Hill Irwin, Australia.
Appendices
MKTG 1253 – Buyer Behaviour
XYZ Noodle Group _ Lecturer: Fiona Dewis
SURVEY FORM 1
HOW YOU CHOOSE INSTANT NOODLES ?
Criteria Use it or not ? Most Important one !
Quality  
(Ingredients/Healthy)
Price  
Package Design  
Flavour, Taste  
Way of preparation (Bowl,  
Cup, plastic box)
Promotion campaign  
SURVEY FORM 2
TELL US YOUR OPINION ABOUT XYZ NOODLE !
Cognitive Component (Measure beliefs about specific attributes)
Level of agreement
Low price        High price
Good design        Bad design
Distinctive in taste        Similar in taste to most
Chemical-free        High in chemical
Potato-made        Not at all
Affective Component (Measure feelings about specific attributes or the overall brand)
Strongly Agree Neither Disagree Strongly
agree agree nor disagree
disagree
I like the taste of     
XYZ Noodle
XYZ Noodle is     
good for your heath
I like XYZ Noodle’s     
commercials
I like XYZ Noodle     
Behavioral components (Measuring actions or intended actions)

Have you ever purchased XYZ Noodle? Yes 
No 
What is the likelihood you will buy XYZ Noodle the Definitely will buy 
next time you purchase instant noodles? Probably will buy 
Might buy 
Probably will not buy 
Definitely will not buy 
Thank you very much for your help 

MKTG 1253 - g7 - Product Analysis - Omachi 2

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

MKTG 1253 - g7 - Product Analysis - Omachi 2

Uploaded by

Copyright:

Available Formats

XYZ Noodle

Figure 1. Reproduced from: HSC 2010.

Target Markets and Positioning

Figure 4. Segmentation and Target Markets

Potential Market Segments

Good taste, many flavours

HAO HAO XYZ NOODLE

Bad taste, few flavors

Consumer decision making process

Purchase Involvement Level and Decision Making Type

Figure 6. XYZ Noodle Decision Making

The combined results of quick survey on

Outlet first, brand second

Post purchase dissonance

Low purchase dissonance High purchase dissonance

Regarding exposure, most of consumers expose to XYZ Noodle’s advertisement through

As for McGuire Theory, Figure 10

utilizing cognitive motives, marketers

Figure 10. Adapted from: Quester et al. 2007

Using paper-based packages brings some competitive advantages. Firstly, it enables

Fortinet 2009, ‘Vietnam-based manufacturing company adopts Fortinet’s security solution to

Massan Food 2010, ‘Instant Noodle Products’, viewed 30 July 2010,

Quester, Q, Neal, C, Pettigrew, S, Grimmer, M, Davis, T & Hawkins, D 2007, Consumer

Behavioral components (Measuring actions or intended actions)

Thank you very much for your help 

You might also like