XYZ Noodle

XYZ NOODLE Product Analysis & Marketing Plan

2010

Table of Content
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

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XYZ NOODLE Product Analysis & Marketing Plan

2010

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.

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XYZ NOODLE Product Analysis & Marketing Plan

2010

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 ³Delicious potato-made noodles´

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XYZ NOODLE Product Analysis & Marketing Plan

2010

that has now been changed to ³Delicious 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.

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XYZ NOODLE Product Analysis & Marketing Plan

2010

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

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XYZ NOODLE Product Analysis & Marketing Plan

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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 HAO HAO XYZ GAU DO

TIENG VANG
Low-quality Ingredients High-quality Ingredients

A-ONE MILIKET

Bad taste, few flavors Figure 5. Perceptual Map 7

XYZ NOODLE Product Analysis & Marketing Plan

2010

The perceptual map is constructed based on two 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.

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XYZ NOODLE Product Analysis & Marketing Plan

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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

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XYZ NOODLE Product Analysis & Marketing Plan

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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.

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XYZ NOODLE Product Analysis & Marketing Plan

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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

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XYZ NOODLE Product Analysis & Marketing Plan

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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.

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XYZ NOODLE Product Analysis & Marketing Plan

2010

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.

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XYZ NOODLE Product Analysis & Marketing Plan Flavor and Taste

2010

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.

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XYZ NOODLE Product Analysis & Marketing Plan

2010

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 y y Time-staved: busy people who never have enough time Traditionalist: middle-class housewives with children

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XYZ NOODLE Product Analysis & Marketing Plan

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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.

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XYZ NOODLE Product Analysis & Marketing Plan

2010

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 µXYZ 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.

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XYZ NOODLE Product Analysis & Marketing Plan

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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 their and instant adjust purchasing behaviour Noodle start to buy XYZ noodles. (figure 9)

Figure 9

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XYZ NOODLE Product Analysis & Marketing Plan

2010

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 ³inner heat prevention´ from XYZ Noodle products. As for McGuire Theory, 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 ³inner 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. Figure 10

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XYZ NOODLE Product Analysis & Marketing Plan

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Attitudes The combined results of quick survey on 20 RMIT students on 10 August, 2010

Figure 10. Adapted from: Quester et al. 2007 20

XYZ NOODLE Product Analysis & Marketing Plan

2010

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 lowinvolvement 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 Noodle enjoyable eat in XYZ an and 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.

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XYZ NOODLE Product Analysis & Marketing Plan

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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 22

XYZ NOODLE Product Analysis & Marketing Plan

2010

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 ³Buy 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

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XYZ NOODLE Product Analysis & Marketing Plan

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(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.

Figure 13. NOODLE MOBILE VAN

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.

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XYZ NOODLE Product Analysis & Marketing Plan

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References
CPI 2010, µCuoc 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, µVietnam-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, µSinh viên Vi t Nam h c M x p th 9 th gi i¶, 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, µXYZ Noodle Ngheu¶, image, viewed 14 July 2010, <http://www.masanfood.com/chinsu/product.php?id=27&cid=2>. Masan Group 2010, µXYZ Noodle Beef¶, image, viewed 14 July 2010, <http://masangroup.com/businesses/products.html#>. Massan Food 2010, µInstant Noodle Products¶, viewed 30 July 2010, <http://www.masanfood.com/chinsu/product.php?cid=2>. Nguyen, DB 2010, ³ 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-dangroi-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.

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XYZ NOODLE Product Analysis & Marketing Plan

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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

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XYZ NOODLE Product Analysis & Marketing Plan SURVEY FORM 2 TELL US YOUR OPINION ABOUT XYZ NOODLE ! Cognitive Component (Measure beliefs about specific attributes) Level of agreement Low price Good design Distinctive in taste Chemical-free Potato-made High price Bad design

2010

Similar in taste to most High in chemical Not at all

Affective Component (Measure feelings about specific attributes or the overall brand) Strongly agree 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? What is the likelihood you will buy XYZ Noodle the next time you purchase instant noodles? Yes No Definitely will buy Probably will buy Might buy Probably will not buy Definitely will not buy Agree Neither agree disagree nor Disagree Strongly disagree

Thank you very much for your help
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