Marketing Plan: Vifon Cup Noodles

Group 2 – Kieran Tierney

Nguyen Thanh Ha – s3325167 Nguyen Thu Giang – s3310197 Hoang Thu Trang – s3325076 Hoang Tuan Duong – s3324115 Pham Minh Chinh – s3325106 31/08/2011

Contents
Contents......................................................................................................................2 1. EXECUTIVE SUMMARY..............................................................................................4 2. CURRENT MARKETING SITUATION............................................................................5 2.1. Introduction.......................................................................................................5 2.2. Situation analysis...............................................................................................5 2.2.1. Microenvironment........................................................................................5 2.2.2. Macroenvironment.......................................................................................6 3. SWOT ANALYSIS.....................................................................................................10 4. OBJECTIVES............................................................................................................11 4.1. Corporate objectives........................................................................................11 4.2. Financial objectives..........................................................................................11 ...............................................................................................................................11 4.3. Marketing objectives........................................................................................11 5. SEGMENTING, TARGETING AND POSITIONING........................................................12 5.1. Segmentation table..........................................................................................12 5.2. Targeting.........................................................................................................12 5.2.1. Evaluating Market Segment.......................................................................12 5.2.2. Target marketing strategy.........................................................................13 5.3. Positioning.......................................................................................................13 5.3.1. Positioning map.........................................................................................13 5.3.2. Possible value different and competitive advantage..................................13 5.3.3. Choosing the right competitive advantages...............................................14 5.3.4. Overall positioning strategy.......................................................................14 5.3.5. Positioning statement................................................................................15 6. MARKETING MIX STRATEGIES ................................................................................15 6.1. Product strategy..............................................................................................15 6.1.1. Brand Life cycle stage................................................................................15 6.1.2. Levels of Products and Product strategy....................................................16 6.1.3. Brand Development Strategies – Line extension........................................17 2 | Page

6.2. Price Strategy..................................................................................................17 6.2.1. Product Mix Pricing Strategies ...................................................................17 6.2.2. Price-Adjustment Strategies.......................................................................18 6.3. Place strategy..................................................................................................18 6.3.1. Administered Vertical Marketing System ...................................................18 6.3.2. Multiple distribution channels....................................................................19 6.3.3. Channel design..........................................................................................20 6.4. Promotion .......................................................................................................21 6.4.1. Promotion mix strategies ..........................................................................21 6.4.2. Promotion tools..........................................................................................22 7. ACTION PROGRAM..................................................................................................25 8. CONTROL PROGRAM..............................................................................................29 REFERENCES..............................................................................................................30

3 | Page

direct marketing. We are not just any instant noodle company. This will also improve customer awareness of our brand and confirm its position. our company also plans to intensively expand our distribution network following Multichannel distribution system in order to optimize the availability of products to our customers. These key strategies are the highlights of the plan and play crucial roles in helping us accomplishing our objectives in a one year timeline through building customer satisfaction and brand loyalty. approaches and programs that we use in order to achieve our objectives. Products at lower prices aim at economic customers while products with a lot of extra benefits (extra meat package and sauce. This will grant us another advantage over our competitors in the extremely competitive environment where all market players strive to get a bigger piece of the share market pie and the economic downturn with consecutive financial crisis have seriously affect consumers’ confidence and purchasing behaviour. Nonetheless. Product-mix pricing and Price-Adjustment strategies are well integrated to create a “more for the same” brand perception as we concentrate on satisfying our targeted segment with the best deals at competitive prices through niche marketing. 4 | Page . We also hope to achieve a growth of additional 23% in sales revenue compared to the last year. to make the most out of this advantage. We firmly believe that it is possible for us to deeply and beneficially penetrate this marketing niche. Push and Pull Promotion strategies with a carefully blended mix of promotion tools (advertisements.4% by the end of next year before the market competition becomes too harsh. We are one of the pioneers in introducing cup noodle products to the Vietnamese market and our ambition is to attain 100% customer satisfaction and build long-term customer relationships. we aim to perform large scale promotion and distribution to raise our brand awareness and gain a brand share of 8.5 million VND per month who embrace simplicity. public service activities and sales promotions) will be used to drive up demands from customers at the same time pushing goods down the channels in the most effective way. Our demographic is young. Thus. flavours and cup sizes to offer more choices and satisfy a wider range of customers. our objectives can only be accomplished successfully with well-developed marketing mix strategies for our products and their prices as well. we will apply the Product Line Extension strategy and introduce more varieties of noodle types. Beside heavy promotion. bigger size) at higher prices target consumers who prefer quality over price and they are predicted to be perceived as “good value”. To accomplish these objectives. EXECUTIVE SUMMARY Vifon (Vietnam Food Industries Joinstock Company) seeks to provide a perfect solution for an increasing and changing demand of a targeted market segment through our cup noodle brand NgonNgon.1. convenience and quality products at competitive prices. The purpose of this plan is to illustrate our targeted market segment and outline the strategies. In detail. Our selling prices range from as low as 4900 VND to the highest 8500 VND. busy office workers aged 24 to 34 with middle income ranging from 3 to 5.

Recognising this advantage.1.2.. .2. Vifon introduced a new product line of cup noodles to the market under the brand name “Ngon Ngon”. with the constant growth in demand. 5 | Page . we aim to use Ngon-Ngon as one of our main focuses to raise our sales. due to too much concentration on exporting and an inability to compete. Malaysia.Reseller Markets: Mainly supermarkets and over 32000 local stores across the whole country.D. Customers Vifon’s cup noodle products concentrate on 3 types of customer markets: . However. Introduction Having a high reputation of 47 years of operation in the Vietnamese noodle market. N. The brand has since then been proved to be one of Vifon’s best competitive advantages and has been dominating the cup noodle market with a significant brand share of 3.International Market: the company products have been exported to over 50 countries including Germany.etc. Our targeted consumers are mainly young office workers with middle to upper middle income living in all areas of the country but mainly those from urban areas that do not have a lot of time or could not be bothered to cook a proper meal. 2. Situation analysis 2.) • Strength : diverse groups of customers contributing to sales growth • Weakness: The domestic market has not been successfully penetrated due to past high concentration on exportation.. CURRENT MARKETING SITUATION 2. This was a swift and wise decision in the situation where there has been a continuous rising demand for convenient foods and the cup instant noodle market is still underdeveloped due to its “premium-segment” prices and limited number of offers. in realising the changing needs of a particular segment of urban office workers. the promising instant noodle market is becoming more and more competitive. From the mid-90s.9% and an average growth in sales revenue of 80 billion VND per year. In 2005. becoming the leader of the domestic cup noodle market. our market share as well as gain back the lead position in the instant noodle market in this coming year. Vifon has been able to achieve certain success and gained a relatively good share in the Vietnamese instant noodle market. Vifon started losing its market share slowly. bringing over 10% of the total sales revenue for the company every year. age ranging from 22 to 34. 500 wholesalers and over 32000 local shops and exported to over 50 countries around the world.1. . Microenvironment a. The export sales augment averagely 10% per year (Vifon.Consumer Markets: purchase goods from retailers. and the USA .2. Vifon products are distributed across the whole country through extensive distribution channels with 14 exclusive distributors.

local grocery stores) which are still predominant and contributed to 89% of total sales revenue in 2010 (Euromonitor International 2010). The later is particularly important in facilitating customers’ purchases and reaching our consumers effectively in an information technology era. Even though Ngon-Ngon has lost 1. The Japanese company Acecook penetrated the Vietnamese noodle market in 1995 via a joint venture with Vifon.. o High quality reputation. Hai Phong. Vifon has lost its market share down to only 11. Big C.d. Macroenvironment a. Intimex. However.2.7% of the market share since 2006. Since then. currently dominating the cup noodles’ market with lower price compared to the competitor ones. MKT intermediaries Our company has an extensive distribution channel with 500 retailers across the country including 14 exclusive distributors in 6 big cities (Ha Noi.9% of the market share and is dominating the cup noodle market. namely selling directly to businesses through our sales force and to consumers through online channel. Vina-Acecook currently has 2 cup noodle product lines (Modern and 24h) with a total of 10 flavours. • Strength: Large distribution network • Weakness: Inadequate distribution channels (only 1) to fully cover the marketing niche. With the advantages of having 100% foreign investment of 6 million dollars and coming from Japan – the birth place of instant noodles. Da Nang. Vifon focuses on both modern distribution channels including supermarkets (Citimart. Dong Nai and Can Tho) and around 32000 local shops (Vifon 2011). Metro. providing better chances to satisfy a wider segment of customers while Vifon only has 1 cup product line (Ngon-Ngon) with 4 flavours.. Competitors The biggest competitor of Vifon at the moment is Vina-Acecook.. the Honour Flag by Prime Minister. c. In 2010. Vifon has always been in the top 10 of the top 100 “High Quality Vietnamese Products” and has been able to gain various achievements such as the international certificate HACCP.b. Weaknesses o Limited fund. it still occupies a 3. Demographic environment 6 | Page . o Limited product design compared to the competitors. Acecook dissipated from the incorporation with Vifon in 2004 to become a new company VinaAcecook and quickly positioned itself to occupy 42% retail value share of the market. one of Vifon brand has received the Global Food Industry Award (Vifon n. • 2.9% in 2009 (Euromonitor International 2010). Baomoi 2010) • Strengths: o Gain customers’ preferences.2. Vifon still has not been able to develop alternative distribution channels. Fivimart.) and traditional channels (wet markets. Vina-Acecook cup noodle brands have not been able to gain a noticeable market share (Euromonitor International 2010). successful application of ISO 9001:2000 quality control. Vinh.

busier and have more freedom to make decisions. Ho Chi Minh. 31% of the Vietnamese will live in metropolitan areas. which in turn causes a sharp fall in the number of traditional “four-generation” households and a significant rise in the number of small –sized families. in the big cities like Ha Noi. especially in convenient foods. The majority of the working population in these big cities that we aim to serve are professionals. This geographical shift suggests that in 3 years time. Da Nang. There were approximately 20. Threat: The promising unsaturated market means that there will be harsher competition in the industry among businesses b. This generation with mostly single people and some small families in modern busy society have particular high demand in packaged foods • Opportunity: Increase in demand for fast and simple meals (convenient foods). Can Tho and Vinh.6 times faster than the suburban population’s. From 2004 to 2009. Nielson 2010). They have long working hours with short lunch breaks and limited amount of time to prepare meals. Noodles were among the most popular packaged foods Euromonitor report (2010) also reveals that Vietnam is going through rapid urbanisation. namely office workers. This group is also our targeted market as most of them have jobs and are busy so they have limited time to prepare and serve meals (Euromonitor 2010. Economic environment 7 | Page . meaning there will be more purchasing power. • • Opportunity: The urban market can still be potentially deeply penetrated due to the new geodemographic market. Figure 1: Adapted from Vietnam Employment Trend 2010 • Opportunity: Increasingly large targeted market segment The rise of Vietnamese economy and the family planning legislation have created young generations who are becoming more westernised.15 million people aged between 22 and 34 in 2009 and 88.7% of people this age group participate in the labour force.Vietnam has a young and dynamic population which has grown progressively by 1 million per year since the 90s (post-war). the urban population has grown 9.

particularly quality products. they belong to the premium segment of instant noodle with the highest price range. the GDP growth rate of the economy in Vietnam was 7% and this promises a growth of minimum 12% by 2013. Sharp increases in electricity. TNS 2010). causing a gradual growth of 44% of the middle class over the period of 7 years (Nielsen 2009. Inflation was shockingly high in 2008 (23%). (Nielsen 2011) • Opportunity: offer products with more benefits at competitive prices and various selections of economy (value) packs • Threats: insecure economy and financial crisis negatively affect the market and spending patterns Figure 3: Reproduced from Nielsen Vietnam Grocery Report 2010 8 | Page . fuel and gas prices have seriously restrained the economic growth (60% reduction in purchasing power) as well as consumers' confidence. People with income above this range often choose better solutions such as eating out in restaurants • Opportunities: Increase in purchasing power of the growing affluent consumers group (middle class) will lead to increase in sales of convenient (packaged) food. Nielson 2011. 36% of the consumers interviewed look to switch to cheaper groceries or seek more valuable products. We aim to serve this growing middle class with the income at the lower end of the range (from 3. Vietnam has one of the highest inflation rates in the world. Figure 2: Adapted from Nielson Omnibus (Modern trade and the Retail Business) 2009 Nonetheless.In 2010. Although the figure has dropped significantly to 7% in 2009. it started to increase dramatically again to 12% in 2010.5 to 5 million VND per month) as although our products cost much less than proper meals in restaurant. Average urban household income has also increased significantly by 158% from 2002 to 2008.

Cultural environment Noodles are a staple diet in many Asian cultures. • Opportunity: Advantage to position better in people’s mind and increase the market share. “Vietnamese people use Vietnamese brands” is considered to be a major trend in the purchasing behaviour pattern.c. 95% people interviewed considered health as their top priority. Unfortunately. posing risks to the business • Threats: unstable prices and supply due to the shortages of wheat in China. Natural disasters are happening more frequently around the world in recent years. China’s worst drought has been continuing throughout the spring. Vietnamese people are increasingly concern about health. providing a promising market for noodle manufacturers (WINA 2011). Vietnam is 4th on the list of highest demanding countries for noodles and the demand is still growing at a steady rate. 51% consumers claimed they would buy more products on promotion (Neilsen 2011). Consumers have changed their perceptions about Vietnamese goods in a positive way. healthy products. • Opportunity: retaining loyal customers as well as attracting new customers by advertising and offering more promotions. Electricity supply for the country depends on the hydroelectric power which is the only inadequate source. threatening Vietnam wheat supply for noodle production. Especially during this financial crisis. Natural environment Vietnam noodle production relies significantly on imported wheat from China. The incident causes loss to many businesses. The research of Nielson (2011) shows that advertising has dramatic effects on Vietnamese people (87%) within which 56% are loyal to their brand but actively search for promotions. d. within which 88% of people interviewed said that they are ready to pay a higher price for healthier foods (TNS 2010) • Opportunity: Promising market for organic. • Threats: loss and reduction in production capacity due to power cut without prior warning. 9 | Page . According to the World Instant Noodles Association report. 90% of consumers in HCMC and 83% in Hanoi said they will possibly/definitely buy more Vietnamese goods ẻ(Nielsen 2011). This in turn produces unavoidable power cuts during the long dry season in Vietnam every year.

Diverse groups of customers 2. Professional design to create environmental-friendly packages 4. Spending pattern change due to financial crisis 3. Limited product designs 4. Create bundles of products for cheaper prices. Significant effects of advertising and promotions during recession 5. Rise of household income to shop for more quality goods 3. flavours and cup sizes to cover more shops’ shelves and satisfy various demands to offer more values/benefits. Extend the product line by adding more variety of noodles. Use push strategy to maximize Weaknesses 1. Penetration Pricing strategy is integrated with product mix pricing (bundle pricing) and adjustment pricing (discount & psychological pricing) strategies to create “valuable products” thus deeply penetrate the marketing niche and gain more market share. environmentalfriendly products Threats 1. Heavy promotion and PR (public service activities. High quality reputation 3. press conference etc) to increase customers’ awareness of the brand 3. Inadequate distribution channels W-O Strategies 1. coupons.create more channels (online. Constant uninformed power cut creating loss and reduced production capacity . magazines. 3. 2. Extend the distribution network to increase products’ availability to customers 2. Current popularity and domination of the cup noodle market. Apply multichannel distribution model. Customers are pricesensitive during the financial crisis time 4. this also encourage consumers try different products of our company 3. Restricted resources (fund) 3. Increase in demand for convenient products from large and growing targeted market from urban areas 2. Large distribution network S-O Strategies 1. outdoors) & promotion tools (sample. 3. Wisely invest in promotion using various efficient advertising media channels (internet. Monitor the environment closely to be able to swiftly adapt with its changes 10 | P a g e Opportunities 1. Cut down unnecessary additives and improve the quality of ingredients to produce healthy goods. The market has not been successfully penetrated. patronage rewards & games) as well as build good relationship with the public to drive up sales and enhance brand position S-T Strategies 1. 4. Shortage of raw material (wheat) supply 4. Promising market for Vietnamese brands and healthy. sales force) at the same time extend the existing channel to effectively reach consumers W-T Strategies 1.3. Extremely competitive market 2. premiums. Invest more in R&D by carrying on surveys with free samples for consumers to find out preferences in different geographic areas to make changes 2. SWOT ANALYSIS Strengths 1. 2. Choose the right brand position (more benefits for the same price) to compete with other brands during this recession time 2.

market coverage and cast out weak competitors. 4.5% 23% 77% 3% 20% Figure 4: Expected sales revenue by February 2012 and August 2012 4.5% to 8. Marketing objectives Increase in brand share. Financial objectives The average growth rate in sales value of Ngon-Ngon up to this point is 16.1.9% in brand share • By August 2012: increase by 4. we aim to push it up to 23% compared to the last year’s figure and establish more distribution channels. 1st September 2011 1st February 2012 – 1st February 2012 – 1st September 2012 Growth in sales revenue (Compared with last year) Resellers Chann el Online Sales force 15% 87% 1. Corporate objectives To be the leader in the instant noodle industry in term of percentage market share. 4.3.5% 11.our current brand share is 3.25%. This year.4% in brand share Increase in brand awareness – assessed by rank position in top 20 Vietnam’s largest food companies and in top 1000 Vietnamese largest enterprises (Bach Thien Media 2011) • By February 2012: rank the 8th in top 20 and 200 in top 1000 11 | P a g e . OBJECTIVES 4.9% (Euromonitor 2011) • By February 2012: aim to increase by 2% to occupy 5.2. value proposition and sales growth.

Aware. Segmentation table Variables Geographic Regions Age Family life cycle Gender Occupation Income Social class Lifestyle Personality Occasions Benefits Behavioural User status User rates Loyalty status Readiness stage Fields Country Content Vietnam Mainly 6 big cities (Ha Noi. TARGETING AND POSITIONING 5. some married Both male and female Officials VND 3. SEGMENTING.7%) In 2009.3 million people in jobs with incomes ranging from 3. cup noodles have seen the fastest growth in instant noodle category (17%) and still have a lot more potential for growth due to the rising demand for packaged/convenient groceries from single people and small-sized families in a busy. These figures show a steady rise in size of our large target market. affordable. Can Tho) 22-34 Young. Hai Phong. single. some upper Middle Simple. we had approximately 16.2% increase compared with the figure in 2007 and this young population will continue to grow steadily. Moreover. first time.5 million to 5 million VND.000/month Mainly Middle.2.a 13. Busy (office working) Economical.000. Segment size and growth According to Vietnam Employment trends 2010 report. regular. quality Potential. medium and heavy users None.000.2. heavy users Light.1. Da Nang. the average labour force participation rates from 22 to 34 years old was among the age groups with highest participation rate (88. Interested Demographic Psychographic 5.• • By August 2012: rank the 3rd in top 20 and 120 in top 1000 Maintaining current rank in top 10 high quality products of Vietnam (Vifon 2011) 5. Segment structural attractiveness 12 | P a g e . Targeting 5. Ho Chi Minh. Evaluating Market Segment a. absolute Unaware. medium.1. Active Regular occasions Convenient. Vinh.5. aged from 22 to 34 . strong. modern society (Euromonitor International 2010) b.500.

2.Level of competition • We are in an extremely competitive market with many national and international competitors due to the characteristic of the “super category” (Food-FMCG) • The bar has been raised even higher in time of economical crisis when people are well aware of the recession and take a lot of effort to compare prices versus benefits of similar products prior purchasing 5. Product differentiation • Competitive quality based on healthy ingredient manufactured with the strictest quality standards of Vietnam and of the world such as the HACCP. Target marketing strategy After evaluating market segment and consider our situation (weaker position) and well as resources (limited fund).3. 2009 5.2. concentrated (niche) marketing seems to be the best solution for us. We try to focus on serving and satisfying only 1 segment of customers to increase the number of loyal customers. ISO 9000:2000. Possible value different and competitive advantage a. Figure 5: Reproduced from: Kotler et al.3. Positioning map Figure 6: Positioning Map We aim to position our brand as a high quality brand with wide range of varieties (more benefits) at competitive prices. 5.2.3. Positioning 5.1. ISO 9001:2008 and Global Food Industry Awards • Minimize the use of additives and only the ones that are listed in Ministry of public health’s allowed list 13 | P a g e .

more nutritious -extra pack of meat. Our current products' prices are cheaper than the competitors' ones. Overall positioning strategy By practicing a "more for the same" value proposition.3. d. We will extend the product line to provide premium products with more benefits (more flavours and type choices. 5. food safety and sanitation column available to update the latest information about current health issues and concerns. offering award scholarships) 5.• Offer customers wide selections of sizes. b. • Hotlines for consultant services available in Hanoi. Channel differentiation • 500 authorized retailers covering 64 provinces of Vietnam with more than 32000 local shops (Vifon. Choosing the right competitive advantages Based on analysis of the differences between Vifon and its competitors. e. attractive design and discount for buying in bulk) at a similar price to our competitor's. People differentiation • Senior staff collaborates with young & enthusiastic employment. ingredients and flavours that suit Vietnamese people’ preferences with competitive prices. 14 | P a g e .4. • Customer can contact the company through email on the website. creating jobs for the locals. we hope to become the first-choice solution for busy customers who embrace convenience.com. healthy and environmentalfriendly products that are highly available and affordable. HCM and Danang c. Image differentiation • Products for customer health • Products are environmentally friendly • Brand value benefits of public and society (doing charity works. 3 big competitive advantages that we should consider most are: • Product differentiation • Channel differentiation • Image differentiation Vifon is trying to provide a first-choice solution for busy people with quality.3.vn) • Customers can purchase large orders online through the official company’s website and choose the delivery options at their own cost. • Hold training courses frequently. • Customer can leave the email address to receive latest promotions and offers.3. phone or fax. healthiness and competitive prices. Service differentiation • Official website with high level of loading information and graphics.

It also confirms our brand position in the BCG Grow-Share matrix as a question mark and we will need to invest efficiently to build it into a star.1. However. Let Ngon-Ngon inspire and set you free to succeed now! 6.07 billion VND. This can be explained by the increase in people and brand awareness as well as the rise in consumption of convenient products in busy modern society.5. This indicates that we are in the growth stage of our brand life cycle with a low market share (3.9%) but high growth rate. economic and healthy solution for consumers with a variety of different flavours and noodle types based on the very traditional Vietnamese cuisine. Ngon-Ngon is a convenient. Between 2005 and 2009.1. MARKETING MIX STRATEGIES 6.1. Product strategy 6. allowing you to enjoy your meal while at the same time working efficiently.5. price and food quality seem to be insolvable problems. the instant noodle sector in Vietnam has not yet reached the maturity and is experiencing tough competition among companies to fully penetrate the market. 15 | P a g e . its sales almost doubled from 372.85 billion VND to 683. According to Euromonitor International report (2010). noodles continue to grow strongly and instant cup noodles are seen to have the fastest growth in sales (20%). Positioning statement To all young busy professionals who feel time. Brand Life cycle stage Figure 7: Reproduced from Euromonitor 2010 Ngon-Ngon cup noodles’ sales have increased progressively by average 77.5 billion VND per year.3.

1 fork included .1.Plastic cup 60g .Improve taste quality and variability Actual product Packaging Quality level . Vegetable. impact and improve the heat-proofing property.Different colours for different biodegradable) to lessen the environmental flavours. we could add more benefits to the product and still keep the price at a competitive level compared to our competitors to gain more market share.More serving method: with water or stirfry with sauce .Top 10 of top 100 “High . . produce healthier noodles (plus meat package. cellophane noodles .Convenience . no food colouring tartrazine or MSG.Extra plastic lid to keep noodles warm or .More varieties: rice vermicelli.More flavours: Thai hot pot.Noodles made from wheat flour package of meat with sauce. oil and . noodle types.Important information highlighted (no trans-fat.2.Focus more on healthiness .Improve the quality by adopting more Quality Vietnamese Products” modern technology. have achieved . • Price strategy: Use the Penetration Pricing strategy as our sales increase which in turn reduce the production cost per unit.Favourable taste Design Product Improvement “ Let’s go healthier and tastier” . nutrition values) High quality. Seafood . minimal use of additives) and improve the packaging design to cover more supermarket shelves and satisfy wider range of target consumers.Separate packages for different for later use ingredients. Place: Expand the distribution network using Multichannel Distribution and Intensive Distribution strategies to reach target consumers effectively • • 6. with dry vegetable.3 more different sizes 90g.HACCP and ISO 9001-2000 unnecessary additives (especially MSG and certificate gums) 16 | P a g e .Healthier ingredients: 1 more separate .Use paper cup with PE liner (10% . 120g and 150g . we have developed appropriate strategies for our products: • Product strategy: Extend the product line with varieties of noodle flavours. Promotion: Use both Push & Pull promotion strategies to create demand as well as more brand interest and awareness. potato seasoning noodles. cup sizes.From the analysis above.Affordable Features . using more natural the whole time ingredients and minimizing the use of . Persuasive advertising will be used intensively to attract more customers. Levels of Products and Product strategy Level of Detail of product product Core “Simple and quick solution for busy lifestyle” benefit .

.4 variety of noodles wheat noodle. . Ngon-ngon cup noodles with 4 different flavours cost around 5000 VND per cup and our company is trying to practice good-value pricing strategy to offer consumers quality products with a wide range of choices at fair prices. Specifically.Customer consultant service . Danang Vinh and Can . 17 | P a g e . 6. 6. . we will combine several products and offer the bundle at a lower price to save from 3000 VND to 7000 VND. Price Strategy 6.2. Noodle cups with extra package of meat or sauce for “stir-fry” flavour will cost 1000 VND extra.Expiration date products Delivery .Hotline service in HCMC Tho Augmented product After sale .International food standard .90g.Provide more consultant service lines service (phone.3. bigger sizes of the basic noodles .Instructions on how to prepare .VN best quality certificate . seafood and vegetables. 120g and 150g cups will cost 5900 VND. beef. potato noodles and cellophane noodles -2 forms of noodles: normal and stir-fry noodles.Not available Provided for large orders within the cities.Globalfood award 2010 .1. chicken. pork. 6900 VND and 7500 VND respectively. Brand Development Strategies – Line extension Strategy Brand Line Existing extension Product Detail Line Introducing more variable products in term of size and ingredient.1.Provide more online service and more and serve the products hotlines for Hanoi. Product line pricing At present. Product bundling pricing In order to promote the sales of our products as well as encourage customers to experience different products of our company that they might not buy otherwise. The company should set different prices for the extended products in the product line.Production date .Installation . extension flavour and form: .Cup sizes ranging from 60g – 150g for wider selection. fax. Product Mix Pricing Strategies a.More natural and healthy ingredients. Thai hot pot.2. tom-yum. email) . flavours or types of noodles. soy sauce or soup powder of different flavours (these products are frequently used when serving noodles) • OR: A combined set of cups with different sizes. b.8 different flavours: chicken curry. rice vermicelli.Exchange and refund for under-qualified Warranty . The basic bundle will contain • A set of 6 cups with one pack of chili sauce.

3. Administered vertical marketing system will be the optimal solution. Ideally. Our distributors will give chances to customers to purchase our products at lower prices for a short amount of time. 6900 VND and 7500 VND as mentioned above. Similarly. every purchase of 4 packs of 6 noodle cups will give customers 1 free cup of the same size of any type or any flavour they wish.3. To deliver superior value in the products of Ngon-Ngon to the customers. Vifon needs to maintain a tight relationship with each stage of its channels. We will price our current basic product (60g) 4900 VND instead of 5000VND. By doing this. the extended products will be priced 5900 VND. Administered Vertical Marketing System Our company can be considered powerful with regard to the market share.1. we offer discounts once every quarter during the first weekend only in the big supermarkets 6. Discounts Vifon should apply the Discount and Allowance Pricing strategy by: • • Giving promotional allowances to reward resellers in participating in advertising and sale support programs. Place strategy 6. For example. particularly its downstream members including wholesalers and retailers who make up the dominant channel that deliver our goods to our proliferating segment of customers. b.6. As a result. 18 | P a g e . psychological pricing play an important role in drawing consumers’ attentions.2. c. our products will be pushed down the channels much more efficiently Giving customers lower prices (discounts) when they purchase the products in bulk. Promotional Pricing Vifon should coordinate well with its retailers to perform this strategy effectively. These will be more likely to be seen as a bargain price compared to our competitors’ prices. The frequency of the promotions will need to be high enough to raise customers’ loyalty level and attract potential buyers but not too often to just raise the numbers of deal-prone customers up.2. Price-Adjustment Strategies a. Psychological Pricing In a competitive market and current financial crisis situation.

3. we also need to apply the concept of “Multichannel distribution system” to efficiently reach our target market. Multiple distribution channels Besides strengthening our main distribution channel.2. 2009 6.Figure 8: Reproduced from Kotler et al. 19 | P a g e .

3. 2009 6. Channel design 20 | P a g e .3.Figure 9: Reproduced from Kotler et al.

we also need to apply Pull strategy to drive up demand and promote our products to consumers.4. we will use Push strategy to maintain and improve the connection with our intermediaries in order to push our goods downstream faster and more efficiently. Promotion 6.1. 21 | P a g e . However. These 2 strategies when integrated properly will be a powerful promotion tool.4. 2009 6. Since our business relies mainly on the Business-to-Business practice where we distribute our products through a wide network of market intermediaries.Figure 10: Adapted from Kotler et al. Promotion mix strategies Push – Pull strategies: Our brand is in the growth stage of the brand life cycle where promotion plays a crucial role in increasing sales.

Persuasive Advertising should be the finest choice.5 million users per day. Outdoors Setting Advertising Objectives We are facing a high level of competition in the domestic market. Promotion tools a.6 million page views each month . Magazine.com Facebook.com Internet Dantri. Our aim is to efficiently utilize the promotion tools to achieve maximal outcomes at lowest possible budget. we have to try to convince consumers that our products deliver superior values and they should purchase our products instead of others’. In order to compete against strong competitors. Developing advertising strategy Create Advertising Message The image we endeavour to create is young.for the whole year Description 1 thread for visitors to discuss about noodle products Reason -More than 2 million users and about 4. Thus.com Dep (a fashion magazine) Tiep thi & Gia Dinh (Marketing & Family) Suc khoe & Doi Song (Health & life) Banner painted on the buses Top banner-all the time Right Banner 1 (180x270 pixels) Create our own page Standard single left hand placement-once/month 1/2 page (11x27) .two main bus routes that go through the busiest areas in Hanoi with many traffic lights that have long waiting time 22 | P a g e Magazines Outdoor . Advertising Objective setting Persuasive Advertising Budget decision Objective-andTask Media Decision Internet. promotion strategies will need to be chosen and applied carefully.4.once per month Twice per month On buses number 22 and 32.2. Selecting Advertising Media Medium Specific medium channels Webtretho. Vifon cup noodle products will provide convenience to help you catching up with the hectic lifestyle at the same time offer quality and healthy products at competitive prices. modern and professional office workers who are busy and happy to use our cup noodle products on a daily basis. Setting Advertising Budget Objective-and-Task method is used where we estimate the cost based on our set objectives.Many people have family from 22 to 34 years old -About 62% of people visit -More than 2. -60% readers from 25 to 45 years old -180000 issues per month -Popular in young official people . -Target young people well and free -Popular among young professional women -120000 issues per month -72% readers from Ho Chi Minh city and 18% from Hanoi. Therefore.6.

2% discount for total 10 points . -Taking care of 6 Vietnamese heroic mothers  Announcement on TV or on the internet through Vifon company website. This will also have an impact on our stock price and the media. .After a period of time. Sales Promotions Tools Specific channels Sample Offering trials of products for customers Coupons Coupons on magazines Premium Goods offered for free for resellers and customers Patronage Special customer Rewards discounts and trade discounts as loyalty incentives Games Lucky draw Strategies Pull Pull Push & Pull Push & Pull Description Giving to each bypassing workers in front of few biggest companies/ office buildings 1 free Vifon cup of noodles size smallest (60g) with different flavours Discount 5% of the invoice when customers bring the coupons to the resellers or local shops -B2B: Giving free display shelves or patio umbrellas with Vifon logo for every purchase of 500 boxes. e-newspaper and Vietnam television Written materials -Articles written by PR / Marketing Manager and sent to editors Scholarship program: Providing a number of scholarships for poor university students. Public Service Activities 23 | P a g e . Each year. Pull c.B2C: Giving 1 free bowl for every box of 24 cups -B2B: 1 point for every 1. proving 50 scholarships for poor university students -Giving free noodle to support victims. Public Relations Tool Specific channels Special events . Charity program -Helping victims in natural disasters -Taking care of Vietnamese heroic mothers Description Delivering descriptive information about new products and answering all questions of the press and customers by spokeman Inform public about what and how Vifon is doing.Organise press tours for journalists from popular newspapers.Holding press conference when launching new products. Customers will fill in their details and send back to Vifon. celebration of the new factory going into operation.b.B2C: 1 free cup of the same size for every 4 packs of 6 cups Every noodle cup will have 1 special code. . Vifon will draw a lucky number to win prizes: -special prize: 1 motorbike Honda wave alpha -1st prize: 2 tickets for a trip to Singapore -3 2nd prize: TV Sony LCD -10 3rd prize: Samsung Star mobile phone -10000 consolation prize: 1 free cup noodle set of 6.2 million VND spent.

+ Emails sent to customers as it is cheap + Mails with catalogue used for businesses and resellers as they are more professional. . This will encourage customers to buy more of our company’s products. . convenient and attractive. The catalogues have all of Vifon products and brands including our cup noodle brand Ngon-Ngon.Printed catalogue for businesses and resellers.To build long-term customer relationships in an effective way. Reason . 24 | P a g e .d.People are likely to shops for more when they have time and can absorb the information from the catalogue at their own pace. Direct marketing Tools Direct-email/mail Marketing Description -Use direct email marketing to target customers (B2C). Information is collected through membership registration. promotional letters and announcement about new products. .Web-based catalogue for customers. Customers’ information is collected when they register on our website and fill in the lucky cards in the noodle cups and send back to us.Use direct mail marketing to target businesses and resellers (B2B).The printed catalogue option seems to be a bit costly but they will only be sent to selected businesses and resellers. -Send catalogue. promotion offers or campaigns . events. Catalogue Marketing .

Can Tho Create prices for sets of noodles cups/ cups and other products for “Product Bundle Pricing” strategy Price Reset the prices for “Psychological Pricing” and “Discount Pricing” 70 million/ 09 10 11 12 01 02 03 04 05 06 07 08 year 50 million/ year 09 10 11 12 01 02 03 04 05 06 07 08 15 million/ 09 10 11 12 01 02 03 04 05 06 07 08 time 25 | P a g e . sizes and design 250 million/ 1 million 09 10 11 12 01 02 03 04 05 06 07 08 products Register customer services hotlines in Hanoi. ACTION PROGRAM Tasks Extend the product line with more flavours and more types of noodles Responsibility • Top management • R&D • Purchasing • Manufactur ing • Accounting • R&D • Purchasing • Manufactur ing • Accounting • Top management • Marketing • Purchasing • Manufactur ing • Top management • Marketing • Marketing • Purchasing • Designing & Manufacturing • Top Timeline (month) Cost (VND) 09 10 11 12 01 02 03 04 05 06 07 08 20 million/ flavour 35 million/ 09 10 11 12 01 02 03 04 05 06 07 08 noodle type Product Add healthier ingredients and minimize the use of additives 30 million/ 1 million 09 10 11 12 01 02 03 04 05 06 07 08 products Improve the packages’ material. Danang Vinh.7.

strategies Promotional Pricing (Special lowprice weekends) Upgrade the official website with new products and features allowing customers perform purchasing actions. Sales staff training management • Marketing/ Sales • Marketing/ Sales • Top management • IT • Marketing • Top management • Human resource • Marketing • Accounting • Top management • Marketing/ Sales • Top management • Marketing • Public Relations • Accounting 20 million 09 10 11 12 01 02 03 04 05 06 07 08 /time 48.4 million/year 09 10 11 12 01 02 03 04 05 06 07 08 30 million/ time/ area 09 10 11 12 01 02 03 04 05 06 07 08 Place Extend distribution channels to more resellers and local shops 10 million/ 09 10 11 12 01 02 03 04 05 06 07 08 reseller/ year Advertising through media 145 million /month for magazines 09 10 11 12 01 02 03 04 05 06 07 08 25 million/ month for websites 80 million/ bus route /year 500.000/ 09 10 11 12 01 02 03 04 05 06 07 08 retailer/ month 26 | P a g e Promotion Offer sales promotion tools • • Accounting Marketing .

Open press conference when launching new products Catalogue design and printing Maintain catalogue on the website • Top management • Marketing • Public Relation • Top management • IT • Marketing 14 million/area/ 09 10 11 12 01 02 03 04 05 06 07 08 time 35 million/ time 09 10 11 12 01 02 03 04 05 06 07 08 27 | P a g e .

28 | P a g e .

Meet the managers of our competitors to share information and assess the market’s situation How to control Review our price and promotion strategies Growth in market share Raise customer awareness Improve customer relationship management Our rank position of popularity in the lists of trustworthy agents/organisations Customer satisfaction Arrange meetings with marketing department plus carry out surveys to assess brand awareness Carry out surveys (email. CONTROL PROGRAM Goals Growth in sales revenue Measure Performance Sales revenue increases by . and market coverage by our distribution network Re-consider our promotion strategies Examine quality controls and customer services 29 | P a g e .Increase by 2% by February 2012 .8.Increase by 4. the performance of our promotional activities. market acceptance to our pricing. allow customers to vote on our website. Build company database to be used in complement with Knowledge Management System.5% by August 2012 Action Arrange monthly meeting with accounting department to evaluate sales and profit figures Look at competitors’ financial reports. Investigate the quality controls for our products.23% by August 2012 . Assess ability to push products down the channels.15% by February 2012 . on street).

<http://www. Singapore. 2011. O 2009. International Labour Organization. < http://vn. Amstrong.php? option=com_content&view=article&id=1361%3Atop-1000-doanh-nghip-ln-nht-vit-nam-20091&catid=61%3Aclb1000ty&Itemid=115&lang=en> Bach Thien Media 2010. 2010. Ang.co.com/noodles-in-vietnam/report> Institute of Labour Science and Social Affairs. viewed 26 July 2011.php? option=com_content&view=article&id=1532%3Ag20tp--top-20-doanh-nghip-ln-nht-vit-nam-nganh-sn-xutthc-phm&catid=37%3Acau-chuyen-thuong-hieu&Itemid=103&lang=en> Baomoi 2010. <http://www. Neilsen Vietnam.baomoi. viewed 13th July 2011. BBC. P. Vietnam Employment Trend 2010 . National Center for Labour Market Forecast and Information Bureau of Employment. Leong. Invalids and Social Affairs 2010. G. Bach Thien Media.ilo. viewed 15 July 2011. <http://www. <http://www.html?orderby=dmdate_published> Neilsen Vietnam 2009. Baomoi. viewed August 3. China droughts threaten wheat crops. viewed 13th July 2011. S. viewed 2 July 2011. Principles of Marketing: A global perspective. Instant Pho makes top 10.pdf> 30 | P a g e .euromonitor. viewed in August 3. Vietnam 2009 Modern Trade and the Retail Business.nielsen.epi> BBC News 2011. Top 20 Vietnam's largest food industry Companies.com/Tag/Vifon. Euromonitor Vietnam.doanhnghiep1000ty. Ministry of Labour.uk/news/world-asia-pacific-12497459> Euromonitor 2010.REFERENCES Bach Thien Media 2010. S.org/wcmsp5/groups/public/---asia/---ro bangkok/documents/publication/wcms_142174.doanhnghiep1000ty. <http://www. Top 1000 Vietnam's largest enterprises. <http://www. Labour and Social Trend in Vietnam 2009/10. viewed 2 July 2011.bbc.pdf> Kotler. 2011. Tan. Bach Thien Media. <http://en. Pearson Education South Asia.com/site/documents/Modern_Trade.com/index. 12th edn.org.com/index. C & Hon-Ming.vn/en/component/docman/cat_view/126-un-publications-by-agency/93-ilopublications. Noodles in Vietnam.un.

pdf> Neilsen Vietnam 2011.census. Vietnam’s shifting consumer landscape.. Vietnam Grocery Report 2010.< http://www.com/site/Nielsen_VietnamGroceryReport_2011Update. <http://vn.<http://english. Introduction.gov/population/international/data/idb/country. chart. viewed 28 July 2011.aspx> US census Bureau. < http://www. Neilsen Vietnam. viewed 2 July 2011.com. viewed 2 July 2011. viewed 2 July 2011.vietnamnet.vn/> World Instant Noodles Association. < http://instantnoodles. <http://vn.org/> 31 | P a g e . Power Cut inevitable-says Electricity of Vietnam.com/global/alm/vietnam/847B46F7416E418994742423E1CF431F.d. TNS Vietnam. Vifon Vietnam. Expanding Market.tnsglobal.html> Vifon n.nielsen. viewed 2 July 2011.php> viewed 3 August 2011.vn/en/society/5681/power-cut-inevitable--says-electricity-of-vietnam. Vietnamnet.pptx> TNS Global Market Research 2011.vifon.nielsen. “Vietnam 2007-Population”. viewed 27 July 2011. <http://www. Neilsen Vietnam.com/site/documents/NielsenVietnamGroceryReportAugust2010.Neilsen Vietnam 2010. Vietnamnet 2011. Vietnam Grocery Report 2011.