MARKETING PRINCIPLES

INDIVIDUAL ASSIGNMENT

Analyzing the marketing environment of

Masan Consumer in Vietnam

Full name: Nguyễn Trung Thành

Class: IB1902

Student ID: HS180795

Lecturer: Vương Tiểu Oanh

Date: March 10th 2024

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 Table of Content
I. INTRODUCTION:................................................................................................................. 3
COMPANY:.........................................................................................................................3
VISION, MISSION, CORE VALUE, CHARACTERISTICS, PRINCIPLES:.........................3
TARGET CUSTOMERS:.................................................................................................... 4
PRODUCTS LINE:............................................................................................................. 4
II. Microenvironment.............................................................................................................. 6
The company:.....................................................................................................................6
Suppliers:..........................................................................................................................11
Marketing Intermediaries:................................................................................................. 11
Competitors:..................................................................................................................... 12
Publics:.............................................................................................................................12
Customers (behavior, spending power, characteristics,… )............................................. 13
III. The Macroenvironment (In Vietnam)............................................................................. 14
- The demographic........................................................................................................... 14
- The economic.................................................................................................................14
- The natural..................................................................................................................... 15
- The technological........................................................................................................... 16
The political and social..................................................................................................... 17
- The Culture.................................................................................................................... 20
IV. Discuss how companies can react to the marketing environment............................ 21
V. Reference..........................................................................................................................25

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I. INTRODUCTION:

Masan Consumer is one of Vietnam's largest local diversified FMCG companies. They
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.
In this essay, I will analyze the marketing environment of Masan Consumer. Firstly, I will
introduce Masan Consumer. Secondly, I will analyze several factors of the microenvironment.
Thirdly, I will analyze some factors of the macroenvironment of Masan Consumer in
Vietnam. Finally, I will discuss how the company can react to the marketing environment.1

COMPANY:

Masan Consumer Joint Stock Company or Masan Consumer was established in 1996 and is
one of two subsidiaries of Masan Consumer Holdings - a member of Masan Group
Corporation, headquartered in Ho Chi Minh City, Vietnam. Masan occupies the 7th position
in the list of Top 50 most valuable brands in Vietnam 2016 and ranks 2nd in the consumer
goods industry. Masan Consumer's brand value is valued at about 305 million USD, an
increase of 113%, and is considered the company with the strongest growth percentage.2

VISION, MISSION, CORE VALUE, CHARACTERISTICS, PRINCIPLES:

Each day, there are more than 100 million Vietnamese people using Masan Consumer’s
branded products and services. All Masan Consumer employees are committed to working
hard to improve the material and spiritual lives of Vietnamese consumers.
At Masan Consumer, the vision is: to be Vietnam’s pride by uplifting the material and
spiritual lives of Vietnamese consumers. The mission is: to provide quality products and
services for Vietnam’s population of nearly 100 million people, enabling them to get more
value for money on their daily basic needs. Masan Consumer Holdings expects the talented
leaders along with all of the passionate, dedicated employees with high expertise will bring
steady advances along the journey of becoming the leading FMCG company in Vietnam and
bringing Vietnam consumer products to the world. Masan Consumer prides itself on five
core values that underpin operations, decisions, and company ethos: Leadership qualities,
Ownership spirit, Integrity, Winning spirit, and Trust each other. These values shape the way
the company approach business and interact with all stakeholders. Masan Consumer’s ideal

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employee embodies six intrinsic characteristics of Masaners: Intelligence & problem-solving
ability, Leadership ability & Highest aspiration, Integrity & Transparency, Responsibility &
Results Oriented, Excellent expertise & lifelong learning, Together & For the Consumers.
Additionally, the company operates under seven guiding principles that shape actions and
corporate culture: We respect individuals, Company interests & personal interests are
inseparable, We put our efforts strategically into value creation, Breakthrough is the
foundation of success, The battle is outside, the battlefield is outside, We must always learn
in striving to be the best, We believe in one word “Together”3.

TARGET CUSTOMERS:

Masan Consumer has adopted an umbrella brand strategy to reach a broad range of
consumer groups. Each of the principal product lines has a premium brand (Chin-su brand,
the Omachi brand, Vinacafe) and a mass-market brand (Nam Ngu, Tam Thai Tu, Kokomi,
Wake Up) meeting the demands of customers of different levels of affluence. Masan
Consumer's target customers are mainly final buyers who focus on the health benefits, taste,
and affordable price of the product4.

PRODUCTS LINE:
Masan Consumer manufactures and distributes a range of food and beverage products,
including soya sauce, fish sauce, seasoning, chili sauce, instant noodles, instant congee,
instant coffee, instant cereals, bottled beverages, processed meat, and beer.
Masan Consumer's product lines can include:

Division Seasoning:
Fish Sauce: Nam Ngu Fish Sauce Fresh Anchovies, Nam Ngu Fish Sauce Salmon flavor, …
Soya Sauce: CHIN-SU Premium Fermented Soy Sauce, CHIN-SU Shiitake Soy Sauce, …
Granule: CHIN-SU Shiitake Mushroom & Kombu Algae Gralune, CHIN-SU Shrimp Granule, …
Condiment & Dressing: CHIN-SU Meat Stew, CHIN-SU Fish sauce flavor fried chicken, …
Chili Sauce: CHIN-SU Wasabi Chili Sauce, CHIN-SU Chili Sauce, …
Tomato Sauce: CHIN-SU Ketchup 500g, CHIN-SU Ketchup 250g, …

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Division Convenience Food:
Self-boiling Instant Hotpot: Omachi Self-boiling Instant Hotpot
Mashed Potato: Omachi Mashed Potatoes with Beef & Truffle Sauce
Cooked Noodle: Omachi Noodles Spicy Beef Stew Flavor
Mixed Noodle: Omachi Cold Potato Noodles with Apple Sauce, Omachi Potato Noodles
Spaghetti, …
Meals from rice: CHIN-SU Noodles with braised beef, CHIN-SU Chicken Vermicelli, …
Instant Noodle: Omachi Diamond, Kokomi Beef, …
Bowl of Noodle: Omachi Potato Steamed Beef, Omachi Potato Stewed Ribs, …
Cup of Noodle: Kokomi Dai, Omachi Potato Thai Spicy, …
Division Home meal replacement:
Cereal: Nutrition Instant Cereals B’fast, Calcium Nutrition Instant Cereals B’fast, …
Division Home and Personal Care:
Dishwashing liquid: Homey Orange Satsuma dishwashing liquid 400g bottle, Homey Orange
Satsuma dishwashing liquid 2kg bag, …
Washing powder: NET Extra washing powder, Joins 2 in 1 washing powder, …
Washing liquid: NET Matic Washing Liquid Flower Scent, NET Matic Concentrated Washing
Liquid, …
Shower gel: La’petal ANTIBACTERIAL & SOFTEN SKIN shower gel for normal skin, La’petal
ANTIBACTERIAL & SOFTEN SKIN shower gel for dry skin, …
Division Drink, Coffee and Beer:
Beer: White Lion King Beer, Red Ruby Beer, …
Coffee: Vinacafe Gold Original Milk Coffee, Phil Deli 2 in 1 Instant coffee, …
Mineral Water: Quang Hanh natural mineral water, Vivant bottled natural mineral water, …
Energy Drink: Ho Van Energy drink, Compact Energy drink Red Cherry, …
Nut Milk: B’fast Energy Nut Milk Cacao 170ml, B’fast Energy Nut Milk Cacao 105ml, … 5

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II. Microenvironment

The company:

Top management:
Chairman: Danny Le.
General Manager: Truong Cong Thang.
Deputy General Manager: Nguyen Hoang Yen.
Deputy General Manager: Pham Hong Son.

Finance:
The year 2023 promises to bring both opportunities and challenges. Vietnam’s GDP growth
in 2023 is forecast to be 6.2% due to the world economic recession, causing a stronger
impact than expected on the manufacturing and export sectors of Vietnam. Given that
situation, Masan Consumer has made a budget for net sales and net profit after tax growth
from 20% to 30%. On the other hand, the prolonged war between Russia and Ukraine has
caused a high increase in the price of crude oil, materials, and packaging while inflation still
shows no sign of sustained subsiding, affecting consumer spending behaviors. As a business
operating in the consumer staples industry, we realize that high inflation will potentially
affect the Company's revenue and profit plan. Therefore, the budget plan for the fiscal year
2023 is tentative6.

R&D:
Our in-house research and development team, Masan Consumer R&D is comprised of
approximately 75 employees tasked with improving the range and quality of our products.
The R&D team works closely with our marketing team to develop products that meet the
demands of Vietnamese consumers, such as the Omachi noodles with spaghetti sauce that
we introduced in 2010 to target customers in the premium segment, B’sfast congee with real
chicken and mushroom that we introduced in 2013 to provide the complete breakfast
solution for consumers.

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Masan R&D aims to enhance Masan Consumer’s competitive position and reputation as one
of the most unique and effective food companies in Southeast Asia by providing high-value
and superior-quality products.

Masan Consumer’s ability to innovate is proven by numerous successful developments,

which include:

​ "Low-salt” Chin-su sauce

​ "No-urea” Nam Ngu sauce
​ "Zero trans-fat oil” and "No color chemical dyes” for Tien Vua noodles
​ "Chewy noodles strand" for Kokomi
​ "Real chicken & mushrom retort pouch" for B'fast

Masan R&D is one of the most advanced R&D centers in Vietnam. The R&D division has
developed seven new formulas to date that previously did not exist in the seasoning
processing industry and has the capability to launch approximately 30 new products each
year7.

Purchasing:
Our purchasing division at our Ho Chi Minh City headquarters is responsible for sourcing and
negotiating with suppliers for all of our raw materials. Our subsidiaries then enter into
agreements with our suppliers negotiated by the purchasing team.

Our purchasing team is also responsible for developing and maintaining the optimal number
of reliable suppliers to meet our requirements8.

Revenue:
In 2022, Masan Consumer Holdings reach 28.1 trillion VND in revenue, contributing
significantly to the parent company Masan Group's 76 trillion VND (3 billion USD) revenue9.
In the first half of 2023, Masan Consumer continues to record revenue of nearly 13 trillion

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VND, an increase 4.7% over the same period last year10.

Growth Rate:
According to the 2020 annual report, Masan Consumer recorded growth in most industries,
despite the impact of COVID-19 thanks to increased demand for essential goods.

In particular, the convenience food industry grew significantly by 38.5% compared to 2019,
reaching a revenue of VND 6,882 billion thanks to the expansion of the premium product
portfolio. By the end of 2020, Masan Consumer owned 5 brands with revenue of over 2,000
billion VND: Chinsu, Omachi, Kokomi, Nam Ngu and Wake-up 247.

According to Masan Consumer, the Covid-19 pandemic has changed consumer behavior,
sales growth of the convenience food industry is not only concentrated in the mid-range
segment but also in the high-end segment when Masan launched the Chinsu breakfast
products with real meat including: Beef pho, chicken vermicelli stewed with bamboo shoots,
Nam Vang noodles, braised beef noodles, crab cakes, rib porridge, heart and liver porridge.

Seasoning industry revenue increased by 12.4% in 2020, reaching VND 8,147 billion thanks
to the growth of high-end fish sauce products and the doubling of sales of premium
seasoning products. This is the industry that brings the greatest profit to Masan Consumer.

The drink, coffee, and beer industry grew by 5% with revenue of VND 3,724 billion, mainly
thanks to energy drinks. Among them, the coffee-flavored energy drink Wake-Up 247 won
10% of the national market share, Compact Cherry increased by 81% to reach 1% of the
market share and Ho Van reached 0.6% of the market share after nearly 1 year of launch. On
the contrary, coffee sales decreased slightly by 4.4% compared to 2019.

The new product was just launched in September 2020, but the home and personal care
(HPC) industry contributed 5.3% of sales to Masan Consumer after purchasing a controlling
stake in NET Detergent Joint Stock Company.

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The processed meat industry achieved a breakthrough growth rate of 104.4%, reaching a
revenue of 840 billion VND thanks to the Ponnie sausage product.

As a result, Masan Consumer's net revenue recorded a growth of 26.3% compared to the
previous year, reaching VND 23,343 billion. This is the first year Masan Consumer has
exceeded 1 billion USD in revenue since operating in the F&B industry.

The gross profit margin in 2020 is 42.5%, lower than 43% in 2019 due to the low profit
margin of cosmetic products. However, net profit after tax in 2020 still increased by 14.2%
compared to the previous year, reaching VND 4,598 billion thanks to optimizing
transportation, sales, and marketing costs.

In the first 9 months of 2023, Masan Consumer Holdings' net revenue reached VND 20,376
billion, growing 10.5% over the same period. The categories with outstanding business
results are seasoning, convenience foods, home and personal care products, recording
growth of 21%, 8.3%, and 39.4% respectively.

Spotlights:
Masan Consumer is a subsidiary that has contributed significantly to the achievements that
the parent company - Masan Group has achieved, such as: Top 1 Enterprise with typical
M&A strategy in the period 2009-2023, Top 1 Enterprise Excellence & Sustainability Asia
2021, Top 50 Best Listed Companies in Vietnam, Top 50 Sustainable Development
Enterprises 2023, Top 10 largest private enterprises in Vietnam and Top 10 Strong Brands in
Vietnam 2023.

With more than 26 years of establishment and growth, Masan Group stands as the leading
enterprise in Vietnam's consumer and retail sector.
Currently, the company operates a network exceeding 3,500 sales outlets, catering to vital
consumer requirements.

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The group further champions inventive strategies and technological investments, fostering
the creation of diverse, top-tier products to meet domestic demands and facilitate exports
to key markets including the United States, Japan, Australia, South Korea, and Canada.

Masan Consumer is currently promoting the "Go Global" strategy - bringing Vietnamese
brands to the world. The latest step in "Go Global" in 2023, in addition to Chin-su fish sauce
products that are already popular in the international market such as: Chin-su salmon, VIP
East Sea anchovies, October 2023, Chin-su fish sauce product East Sea anchovy 720 - the
newest product line in the Chin-su fish sauce "collection", has also been exported to many
markets such as the US, Canada, Australia, Europe, Japan.

The event not only marked a memorable milestone in Masan Consumer's around-the-world
strategy but also carried the mission: Consumers anywhere can enjoy the rich flavor of
Vietnamese fish sauce.

During a year of focusing on the "Go Global" strategy, the Chin-su brand has achieved certain
successes.

In March 2023, during its debut at Foodex Japan (Asia's largest international food and
beverage exhibition), the Chin-su seasoning set immediately took the spotlight and attracted
diners. The land of cherry blossoms because of its unique and new flavor.

As a result, just over a month after the event, the seasoning set was officially released on
Japanese supermarket shelves and received an enthusiastic welcome from the people and
high praise from culinary experts.

After Japan, in May 2023, Chin-su seasoning continued to be present at Seoul Food and was
highly praised by Korean people. Many diners expressed their hope that the seasoning set
will soon be available in this country so they can use it and combine it with many dishes of
the land of kimchi11.

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Suppliers:

Masan Consumer currently procures raw materials from over 160 suppliers under long-term
contracts to ensure consistency and high quality. Suppliers whose long-term performance
record with the company demonstrates reliability are considered "approved suppliers” and
will continue to be engaged under long-term contracts. This strategy helps the company to
minimize the risk of working with suppliers who underperform by missing deliveries,
supplying materials of inconsistent quality or that are not in conformance to specifications,
or unexpectedly increasing prices12.

Marketing Intermediaries:

Masan Consumer has a leading advantage in offline distribution channels when participating
in the consumer-retail ecosystem from its parent company - Masan Group. Masan
Consumer's marketing intermediaries include:

Resellers:
Marketing intermediaries in the ecosystem - WinCommerce operates the largest nationwide
grocery modern trade retail platform in Vietnam through its supermarket chain: WinMart,
WinMart+, Phuc Long, …
In addition, more than 300,000 traditional points of sale (dealers, small supermarkets, ...)
thanks to Masan Consumer's close relationship.
E-commerce partner: Lazada Group is an international e-commerce company and one of the
largest e-commerce operators in Southeast Asia.
Physical distribution firms: Masan Consumer operates five distribution centers, strategically
located in the Binh Duong, Tan Binh, Da Nang, Hung Yen and Hai Duong provinces to provide
distributors with products within 24 hours of an order being placed. These distribution
centers collectively handled more than 800,000 pallets in 2012.
Marketing services agencies: MCM Corporation.
Financial intermediaries: Marketing intermediaries in the ecosystem - Techcombank is
currently one of the largest joint stock commercial banks in Vietnam in terms of total

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operating income, assets, loans, deposits, customers and distribution network.13

Competitors:

In the instant noodle market, Masan Consumer's competitors are: Acecook, Asia Food, Vifon,
Uniben, ... According to Retail Data statistics (2021), Acecook Vietnam holds 35.4% market
share in terms of revenue, followed by Masan (27.9%), Uniben (12.2%) and Asia Foods
(8%)14.

In the seasoning market, Masan Consumer faces a series of international corporations

entering Vietnam with many outstanding products such as Knorr seasoning powder
(Unilever, UK), Aji-ngon (Ajinomoto, Japan), Miwon (Taiwan). Loan), Maggi (Nestlé - the
world's largest food and beverage corporation, Swiss headquarters)...15

Publics:

At Masan Consumer, the company focuses on opportunities for human development,

promoting positive changes in society, and sharing with all partners the value of sustainable
growth and development.
Responding to the campaign "For the homeland's seas and islands - For the front line of the
Fatherland" of the Vietnam Fatherland Front - Ho Chi Minh City in 2022, Masan Consumer
Joint Stock Company has donated 5 billion VND to create resources and conditions to
organize meaningful activities such as: "Organize a delegation to directly visit and encourage
officers, soldiers and people in Truong Sa island district, DK1 Platform and the southwest
islands Country"; "Implementing the construction of a multi-purpose cultural house on
Thuyen Chai B island worth 40 billion VND"; "Organizing visits, encouragement, and giving
gifts to units training new soldiers enlisted in 2022"; "Organizing the Border Charity
Program, implementing the Border Freshwater Project, donating charity houses to ethnic
minorities in the border areas of the Central provinces"; "Caring for scholarships and means
of livelihood for disadvantaged households in communes and towns with maritime borders
in Can Gio district" and many other meaningful activity programs...
On October 2, Ky Son mountainous district had heavy, localized rainfall, causing a historic
flash flood, causing heavy damage in Ta Ca commune and a number of other areas in the
district. The flood damaged more than 100 households and government offices in Ca Ta

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commune, Ky Son district, Nghe An province. In order to share difficulties with the
government and people of Ky Son district affected by flash floods, Masan Company
coordinated with Nghe An Provincial Police to visit and give gifts of essential food and cash
to help. Support the government and people with a budget of 01 billion VND.
In December 2022, the Ho Chi Minh City Farmers' Association organized the Tet of Gratitude
- Spring Quy Mao Program with the aim of raising funds to organize social security care for
4,000 poor, near-poor and poor farmer member households. households in difficult
circumstances in the city with a total estimated care budget of 2023 of 10.21 billion VND.
Accompanying this program, Masan Consumer Joint Stock Company contributed VND 2
billion to support the Ho Chi Minh City government to help households in difficult
circumstances welcome a warm Tet season. full enough.
Also in the program of taking care of Tet for people in remote areas, on January 9, 2023,
Masan Consumer Company in collaboration with Nghe An Provincial Party Committee visited
and gave Tet gifts to 600 households in 3 mountainous districts of Nghe An. An includes
Tuong Duong, Quy Hop and Tan Ky. Here, Company representatives sent gifts and envelopes
to people to celebrate Tet with a total budget of over 400 million VND.
In 2022, Masan Consumer continues to accompany the Sponsoring Association of Poor
Patients in Ho Chi Minh City to carry out an eye surgery program for 1,000 cataract cases in
difficult circumstances in Ham Tan District, Binh Thuan Province and Vinh Thuan District, Ha
Tien City, Kien Giang province. This is the 5th consecutive year Masan has participated in
supporting community health programs such as heart surgery for children with congenital
heart disease, and eye surgery for people in difficult circumstances in Ho Chi Minh City and
other areas. southern province16.

Customers (behavior, spending power, characteristics,… )

Masan Consumer has adopted an umbrella brand strategy to reach a broad range of
consumer groups. Each of the principal product lines has a premium brand (Chin-su brand,
the Omachi brand, Vinacafe) and a mass-market brand (Nam Ngu, Tam Thai Tu, Kokomi,
Wake Up) meeting the demands of customers of different levels of affluence. Masan
Consumer's target customers are mainly final buyers who focus on the health benefits, taste,

13
and affordable price of the product. In the business market, Masan Consumer has more than
300,000 traditional points of sale (dealers, small supermarkets, ...)17.

III. The Macroenvironment (In Vietnam)

- The demographic

Vietnam's demographic environment is large population size and young population

structure. By the end of 2023, the country's population is estimated to be 99.19 million
people, an increase of about 672 thousand people compared to 2022. According to the
General Statistics Office, in the fourth quarter of 2023, the average population in urban
areas is 38.2 million people accounting for 38.1%; Rural areas have 62.1 million people,
accounting for 61.9%. Vietnam is the third most populous country in Southeast Asia and
ranks 15th in the world. Vietnam's population structure belongs to the young population
structure group, this is considered the golden structure. According to data from the General
Statistics Office in 2023, the number of people under 15 years old accounts for 23.9%, the
population aged 60 and over accounts for 13.9%, and the group from 15 - 59 years old
accounts for 62.2%. The average population growth rate in 2023 is 0.84%. With a large
population size, relative growth rate, and young population structure, the fast-moving
consumer goods (FMCG) market in Vietnam is always considered to have great potential.
This gives fast-moving consumer goods (FMCG) companies in Vietnam in general and Masan
Consumer, in particular, a large market, creating opportunities to increase product
consumption and breakthrough revenue18.

- The economic

According to the report on the socio-economic situation in the fourth quarter and 2023 of
the General Statistics Office. Gross domestic product (GDP) in the fourth quarter of 2023 is
estimated to increase by 6.72% over the same period last year, higher than the fourth
quarter of 2012-2013 and 2020-2022, and with a positive trend, the next quarter will be
higher19. previous quarter (first quarter increased by 3.41%, second quarter increased by

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4.25%, third quarter increased by 5.47%). Of which, the agriculture, forestry, and fishery
sector increased by 4.13%, contributing 7.51% to the increase in the total added value of the
entire economy; The industrial and construction sector increased by 7.35%, contributing
42.58%; The service sector increased by 7.29%, contributing 49.91%. Regarding GDP usage in
the fourth quarter of 2023, final consumption increased by 4.86% over the same period last
year, contributing 53.18% to the overall growth rate of the economy; Asset accumulation
increased by 6.21%, contributing 44.18%; Export of goods and services increased by 8.68%;
Imports of goods and services increased by 8.76%; The difference between import and
export of goods and services contributes 2.64%. Gross domestic product (GDP) in 2023 is
estimated to increase by 5.05% compared to the previous year. GDP in the fourth quarter is
estimated to increase by 6.72% over the same period last year, higher than the fourth
quarter of 2012-2013 and 2020-2022. The positive trend is maintained, the next quarter is
higher than the previous quarter (first quarter increased by 3.41%, second quarter increased
by 4.25%, third quarter increased by 5.47%). The scale of GDP at current prices in 2023 is
estimated to reach 10,221.8 trillion VND, equivalent to 430 billion USD. GDP per capita in
2023 at current prices is estimated to reach 101.9 million VND/person, equivalent to 4,284.5
USD, an increase of 160 USD compared to 2022. This creates a great opportunity for Masan
Consumer to continue to move forward in its product premiumization strategy and
development of value-added products. Consumers may be willing to pay higher costs to
access more diverse, creative, quality, and high-end product lines of Masan Consumer. The
rapid growth of the middle class, with households with middle-class income or higher
accounting for more than 50% of households (from 35% in 2012 to 54% in 2019 according to
Kantar Worldpanel), has boosted demand giant in "premiumization" of consumer products.
Consumers are also willing to pay more for quality products in the food industry20.

- The natural

The global environment is suffering from the negative impacts of climate change and a
country with a long coastline like Vietnam will suffer the most adverse impacts. Masan
Consumer is committed to reducing carbon emissions through saving energy and optimizing
existing resources.

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At Masan Consumer, the company has implemented the program "Energy Saving Ideas" and
has achieved the following results:
Optimize production processes, minimize energy consumption by taking advantage of heat
lost during frying and product sterilization, avoid using heat-changing processes, and apply
energy-saving technologies. save energy.
Train employees on the benefits of electricity saving habits by regularly cleaning machinery
and tools to achieve the best output and minimize damage, and more actively use naturally
generated electricity. Use generators, save water, and increase the use of recycled materials.
The company applies biogas technology from rice husk and sawdust to create energy for the
entire factory. This is an energy source that is not only environmentally friendly and low-cost
but also helps create jobs and increase income for local people.
In 2022, the company used more than 102 million tons of steam from burning boilers
running on DO oil or Biomass (from sawdust, rice husks...). The company also consumed 45
million kWh of electricity. Masan Consumer believes that the above initiatives help factories
improve energy efficiency and protect the environment21.

- The technological

Masan Consumer believes that product and service quality plays a very important role in
developing brands and attracting consumers. This belief motivates Masan Consumer to
constantly research, invest and apply high technology and modern automation equipment,
reduce labor costs, and save energy to meet production and maintenance needs.
competitive advantage while providing products of outstanding quality to Vietnamese
consumers.
2022 is a difficult year due to the slow recovery after the COVID-19 pandemic and the
prolonged Russia-Ukraine war. Rising inflation leads to reduced consumption as people
tighten their spending; Equipment prices increased globally and delivery schedules were 1.5
to 3 times longer than in 2020 and before. However, with the efforts of the entire Board of
Directors and employees, the company has turned this difficult period into an opportunity to
find solutions to save costs and shorten time to ensure efficiency. investment, thereby
producing high-quality products at reasonable costs for consumers.

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New investment production lines from 2021-2022 have been completed and put into
operation as planned in 2022. To meet the increasing demand for chili sauce consumption -
especially in restaurant channels (HORECA ), the company has upgraded its automated chili
sauce line with a capacity of 30-35 tons/day. In addition, the B'fast nutritional boxed milk
production line has also been upgraded to a capacity of 12-12.5 million boxes/month.
Processed meat products are a key industry for Masan Consumer. The company has
completed and put into operation a meat processing factory in Ha Nam with a capacity to
process pasteurized and sterilized sausages up to above. 14,000 tons/year; Chicken and pork
jerky processing lines with an operating capacity of 210 tons/year have also been operated
throughout, providing a large amount of goods to the market to meet consumer needs.
In 2023, the company continues to invest in factories and production lines, quickly
completing them and putting them into use to meet market demand with new products
such as: 1 fruit milk production line B 'fast can produce both nut milk/cocoa milk with a
capacity of 12-12.5 million boxes/month, completed in Q1/2023 for nut milk/cocoa milk
products and in Q3/2023 for fruit milk; The company continues to increase the capacity of
chili sauce production line No. 3 at the factory in Binh Duong to 2,400 tons/month and
completed in Q3/2023. In addition, new products from the spice industry (mayonnaise,
satay, cooking sauce...), beverage (canned), personal care industry such as shower gel, facial
cleanser, shampoo... . is being prepared and implemented to meet the Company's 2023
business goals.
In addition, Masan Consumer is actively using clean energy, through projects: converting
forklifts at factories to run on electricity and inviting investment in rooftop solar power at
southern factories has the additional goal of saving electricity costs in addition to being
environmentally friendly22.

The political and social

At the annual Vietnam Business Forum 2023 (VBF 2023) with the theme "The business
community accompanies the Vietnamese Government in promoting green growth", Prime
Minister Pham Minh Chinh said that Vietnam is building the country based on three pillars:
Socialist democracy, socialist rule of law state, socialist-oriented market economy; along with

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building an independent and self-sufficient economy. Integrity is associated with proactive,
active, deep, substantive, and effective international integration. In that process, people as
the center, the subject, the goal and the driving force for development and thought. The
guiding idea is to determine that internal resources are fundamental, long-term, and
decisive strategies; external resources are important and groundbreaking.

Vietnam is focusing on implementing three strategic breakthroughs in building and

perfecting institutions; Building synchronous and modern infrastructure and administrative
reform, and training human resources to meet the development requirements of the new
era. Along with that, Vietnam continues to build corporate and national brands; Promote
prevention and fight against corruption, negativity, and waste; Reform administrative
procedures, streamline and clean the apparatus, and reduce troubles for people and
businesses.

“Over the past time, the Government of Vietnam has always asked to listen and focus on
handling and resolving difficulties and problems of businesses, including focusing on building
and promulgating tax policies. global consumption, more liberal regulations on visas, work
permits, issues related to land, housing, issues related to investment and bidding...", the
Prime Minister said.

The Prime Minister said that today's world situation is changing very rapidly and
unpredictably, with increasing risk factors and major impacts on a global scale. However,
with a long history of cooperation and development, the Prime Minister believes that the
business community will work with Vietnam to overcome difficulties and continue to
cooperate effectively and sustainably.

The Prime Minister emphasized that green growth is a world trend; is a major and important
policy of the Party and State of Vietnam to ensure fast, effective, sustainable economic
development and make an important contribution to implementing the 10-year
socio-economic development strategy 2021-2030.

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Facing the trend of sustainable development on all three economic, social, and
environmental pillars, Vietnam's National Green Growth Strategy has been issued and
implemented with many remarkable initial results, contributing Actively contribute to the
efforts of the international community in responding to climate change.

At the COP26 Conference, Vietnam made strong commitments, including bringing net
emissions to "zero" by 2050. In addition, commitments to sustainable development have
also been included in the Agreements. new generation free trade agreements such as:
CPTPP and EVFTA.

According to the Prime Minister, Vietnam is focusing on restructuring the economy

associated with innovating the growth model, including the economical and efficient
exploitation and use of energy and resources based on science and technology. technology
and digital transformation; Green economic development needs to be implemented
drastically at the national, regional and global levels; Taking people as the center, the
subject, both the resource and the most important driving force and the highest goal of
development, especially in green development.

The Prime Minister said that green growth needs an appropriate roadmap, taking into
account the different conditions and capacities of each region, locality and business;
Encourage the response and participation of all actors in society, especially businesses and
people, and further promote projects in the form of public-private partnerships (PPP) in
green growth; upholding the spirit of solidarity, responsibility, mutual respect for common
interests, promoting peace, stability, cooperation and development, beneficial to economic
recovery and international cooperation...

“Recently, some businesses invested in energy in Vietnam inappropriately, so there were

difficulties; We must unite, sit together to discuss, and come up with solutions to solve the
problem. Vietnam does not want either side to suffer; cooperate from the perspective of
harmonious benefits, shared risks and difficulties; Your success is our success," the Prime
Minister affirmed.

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The Vietnamese Government continues to strongly commit to creating favorable conditions
for businesses to develop. Accordingly, continue to improve institutions, mechanisms, and
policies to create a favorable and equal business environment and improve national
competitiveness; remove difficulties for businesses; Pay attention to cutting costs for
businesses; increase transparency and equality in access to resources; Strengthen the
protection of the legitimate rights and interests of businesses, business owners, employees
and related parties; Synchronously and effectively deploy policies to support businesses in
terms of capital, technology transfer, training, human resource development.

This is completely consistent with Masan Consumer's sustainable development strategy with
commitments to the environment and human resources. Thereby, Masan can continue to
accompany the government in implementing green development projects and solutions as
well as implementing internal sustainability campaigns23.

- The Culture

According to survey data at some supermarkets in Hanoi such as Co.opmart, Winmart,

Hapro... shows that Vietnamese goods account for an overwhelming proportion of 90-95%.
In supermarket systems of foreign enterprises such as AEON, Mega Market, Big C,
Vietnamese goods also account for 60-96%. In the distribution channels, which are markets
and convenience stores, the proportion of Vietnamese goods is 60% or more.
This has shown that consumer awareness has changed, not only is the movement
"Vietnamese people prioritize using Vietnamese products" but now "Vietnamese goods have
become an indispensable choice for people." Vietnamese consumption".
Masan's strategy of developing strong brands through a deep understanding of Vietnamese
consumers, combined with absorbing the operating models of multinational corporations,
thereby creating unique products. competitor. Masan Consumer is proud to be able to
transform products that were previously considered common goods into strong brands,
winning the trust of consumers in different segments and meeting the needs of consumers.

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diversity of Vietnamese consumers24.

IV. Discuss how companies can react to the marketing environment.

To be able to respond to the marketing environment, Masan Consumer has built a

breakthrough growth platform based on 4 cores:

Building a Strong Brand:

Masan Consumer has transformed its food and beverage platform to become a market
leader in its operating sectors with strong brands. The company chooses to develop or
acquire strong brands trusted by customers, which is consistent with the company's strategy
of focusing on serving the basic daily needs of consumers. Thanks to that, the company's
spice and coffee products are leading products in the markets. Meanwhile, in the instant
noodle industry, the company occupies the number one position in the high-end segment.
The company's beverage business is growing rapidly thanks to its strong brand in the energy
drink segment. Masan Consumer has developed strong brands by deeply understanding
Vietnamese consumers, combined with absorbing the operating models of multinational
corporations, thereby creating unrivaled products. defense. In a market where price is the
dominant factor in consumer behavior, the company is proud to be able to transform
products that were previously considered common goods into strong brands that have won
trust. of consumers in different segments and meet the diverse needs of Vietnamese
consumers. Masan Consumer's key brands include Chin-Su, Nam Ngu, Tam Thai Tu, Omachi,
Kokomi, Ponnie, Heo Cao Boi, Vinacafé, Wake-Up, Wake-Up 247, Compact Cherry, Vinh Hao,
Vivant, Lemona and Quang Hanh..., including many brands that have been voted the fastest
growing brands and most trusted by many Vietnamese consumers for many years in a row.
In 2022, Masan Consumer has developed the high-end dishwashing liquid brand Homey,
La'Petal skin-brightening and antibacterial shower gel, Chanté premium laundry detergent
and Sopa laundry detergent, and Super Net laundry detergent with cleaning technology.
Smart cleaning is loved by consumers. By the end of 2022, Masan Consumer owns 5 brands
with revenue of over 2,000 billion VND, proud to be strong brands in major product
categories. The company's brands are always associated with innovations that bring real

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value to consumers. In 2022, the Product Research and Development (R&D) team launched
more than 30 new products, including many breakthrough products, leaving strong marks in
the hearts of Vietnamese consumers.

Present everywhere for everyone:

Masan Consumer operates one of the largest food and beverage distribution networks in
Vietnam. This provides significant competitive advantages, such as the ability to deliver
goods to consumers efficiently while reducing transportation costs. This is very important
because nearly 70% of Vietnam's population currently lives in rural areas and the retail
industry still depends mainly on traditional sales channels. From 2020, consumers will have a
major transition from traditional sales channels to modern sales channels. This is clearly
shown due to the COVID-19 pandemic occurring at the same time as the urbanization trend
in rural areas. The company believes it is well positioned to take advantage of this consumer
trend as Masan Consumer is part of The CrownX Corporation, the retail-consumer platform
of Masan Group. CrownX is the owner of one of the largest and most modern retailers in
Vietnam, WinCommerce General Trading Services Joint Stock Company (“WCM”, which
operates the WinMart supermarket system and small stores WinMart+). The company does
not expect to receive any special commercial advantages, but it does gain access to
consumers wherever they are and reinforces its strategy of increasing market share in the
modern sales channel.
Masan Consumer is currently one of the few companies in Vietnam that owns distribution
systems for both the food and beverage industries. The company has developed retail points
to about 300,000 points, including 194,000 points for all product lines produced and traded
by Masan Consumer with nearly 2,700 sales staff. This large network shows the strength of
the company's distribution network in rural areas, where the company has the strongest
market access and coverage strategy, and also helps the company gain speed to reach the
market faster when launching new products and promotions.

World-class manufacturing factory:

Masan Consumer believes that product and service quality plays a very important role in
developing brands and attracting consumers. This belief motivates Masan Consumer to
constantly research, invest, and apply high technology and modern automation equipment,

22
reduce labor costs, and save energy to meet production and maintenance needs.
competitive advantage while providing products of outstanding quality to Vietnamese
consumers.
2022 is a difficult year due to the slow recovery after the COVID-19 pandemic and the
prolonged Russia-Ukraine war. Rising inflation leads to reduced consumption as people
tighten their spending; Equipment prices increased globally and delivery schedules were 1.5
to 3 times longer than in 2020 and before. However, with the efforts of the entire Board of
Directors and employees, the company has turned this difficult period into an opportunity to
find solutions to save costs and shorten time to ensure efficiency. investment, thereby
producing high-quality products at reasonable costs for consumers.
New investment production lines from 2021-2022 have been completed and put into
operation as planned in 2022. To meet the increasing demand for chili sauce consumption -
especially in restaurant channels (HORECA ), the company has upgraded its automated chili
sauce line with a capacity of 30-35 tons/day. In addition, the B'fast nutritional boxed milk
production line has also been upgraded to a capacity of 12-12.5 million boxes/month.
Processed meat products are a key industry for Masan Consumer. The company has
completed and put into operation a meat processing factory in Ha Nam with a capacity to
process pasteurized and sterilized sausages up to above. 14,000 tons/year; Chicken and pork
jerky processing lines with an operating capacity of 210 tons/year have also been operated
throughout, providing a large amount of goods to the market to meet consumer needs.
In 2023, the company continues to invest in factories and production lines, quickly
completing them and putting them into use to meet market demand with new products
such as: 1 fruit milk production line B 'fast can produce both nut milk/cocoa milk with a
capacity of 12-12.5 million boxes/month, completed in Q1/2023 for nut milk/cocoa milk
products and in Q3/2023 for fruit milk; The company continues to increase the capacity of
chili sauce production line No. 3 at the factory in Binh Duong to 2,400 tons/month and
completed in Q3/2023. In addition, new products from the spice industry (mayonnaise,
satay, cooking sauce...), beverage (canned), personal care industry such as shower gel, facial
cleanser, shampoo... . is being prepared and implemented to meet the Company's 2023
business goals.
In addition, Masan Consumer is actively using clean energy, through projects: converting
forklifts at factories to run on electricity and inviting investment in rooftop solar power at

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southern factories has the additional goal of saving electricity costs in addition to being
environmentally friendly.

Personnel team "Financially serving consumers":

Masan Consumer is led by talented domestic and foreign experts with a track record of
building sustainable business platforms and iconic brands in emerging markets. Many of the
company's leaders are also shareholders who support the entrepreneurial culture with the
spirit of "can do". To continue promoting its achievements, Masan tries its best to become
the most loved workplace in Vietnam, building a culture of passion for serving consumers
and putting consumers at the center.
With the strategy of putting people at the center of all organizational activities, the company
believes that the most valuable asset of the Company is its people. The company is proud to
be one of the best places to work in Vietnam, with a long-term vision to attract talent and be
a workplace where every employee can build their future. The company's mission is not only
to improve the lives of consumers but also to build and develop the next generation of
entrepreneurial leaders.
https://static2.vietstock.vn/data/HNX/2022/BCTN/VN/MCH_Baocaothuongnien_2022.pdf

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V. Reference
1.
https://masangroup.com/masanconsumer/about-us/overview#:~:text=Overview,instant%20
cereals%20and%20bottled%20beverages.
2.
https://dantri.com.vn/kinh-doanh/masan-consumer-dung-vi-tri-thu-7-trong-top-50-thuong-
hieu-gia-tri-nhat-viet-nam-2016-20160918120950568.htm
3. https://careers.masanconsumer.com/about-us/
4. https://www.masangroup.com/masanconsumer/business/marketing
5. https://masanconsumer.com/en/product-category/gia-vi/
6.
https://masanfood-cms-production.s3-ap-southeast-1.amazonaws.com/medialibrary/9eb/9
eb2ac1780ecacd404417fde1e93645e/9050b4a0c1a39771ed47cf47064bd108.pdf
7. https://www.masangroup.com/masanconsumer/business/research-and-development
8. https://www.masangroup.com/masanconsumer/business/supply-chain
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https://www.masangroup.com/news/masan-news/Masan-net-profits-top-usd152point5-mill
ion-in-2022.html
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https://e.vnexpress.net/news/business/masan-records-over-1-57b-revenues-in-first-half-463
6085.html
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https://baochinhphu.vn/2023-mot-nam-dai-thanh-cong-cua-chin-su-voi-chien-luoc-go-globa
l-102231029091538863.htm
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14.
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n%20th%E1%BB%8B%20tr%C6%B0%E1%BB%9Dng%20m%C3%AC%20%C4%83n%20li%E1%
BB%81n%20Vi%E1%BB%87t%20Nam,-Do%20nhu%20c%E1%BA%A7u&text=Theo%20th%E1
%BB%91ng%20k%C3%AA%20c%E1%BB%A7a%20Retail,(8%25)%20%5B4%5D.
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https://www.gso.gov.vn/du-lieu-va-so-lieu-thong-ke/2023/12/thong-cao-bao-chi-ve-tinh-hin
h-dan-so-lao-dong-viec-lam-quy-iv-va-nam-2023/
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https://www.gso.gov.vn/bai-top/2023/12/bao-cao-tinh-hinh-kinh-te-xa-hoi-quy-iv-va-nam-2
023/
20.
https://theleader.vn/qua-ngot-tu-chien-luoc-cao-cap-hoa-san-pham-cua-masan-consumer-1
612154373963.htm

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21.
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https://hanoimoi.vn/thu-tuong-pham-minh-chinh-tao-moi-dieu-kien-thuan-loi-de-cac-doanh
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https://thanglong.chinhphu.vn/hinh-thanh-van-hoa-thoi-quen-tieu-dung-hang-viet-1032311
20125135787.htm

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