mktg 1253 - g7 - product analysis - omachi 2

Table of Content

XYZ Noodle

XYZ NOODLE – Product Analysis & Marketing Plan 2010

Executive Summary.................................................................3

Introduction..............................................................................4

Target Markets and Positioning................................................6

Primary target markets...................................................6

Potential target markets.................................................6

Perceptual map...............................................................7

Consumer decision making process.........................................9

Purchase Involvement Level and Decision Making Type.9

Information search........................................................10

Evaluative criteria.........................................................11

Outlet selection.............................................................12

Postpurchase dissonance..............................................13

Product disposal............................................................13

Internal Influences..................................................................14

Perception.....................................................................14

Type of learning............................................................15

Motivation.....................................................................16

Evaluation.....................................................................17

Recommended strategies......................................................19

Product development....................................................19

Package design.............................................................19

Advertising....................................................................20

Promotion strategy.......................................................21

Distribution strategy.....................................................21

References.............................................................................25

Appendices.............................................................................26

Executive summary


This paper provides an insight into product analysis of XYZ Noodle instant noodles

manufactured by Massan Group. In 2009, despite having aggressive competition from other

brands in the same product category, XYZ Noodle’s market share accounted to 45 percent in

premium instant noodle line.

Target and otential markets are also identified. XYZ Noodle targets at middle-income customers

who have active and busy life style but express health concern for fast food products. Two

potential market segments are middle-class restaurants using noodles for hotpot and Vietnamese

customers living in the US.

Based on consumer’s perceptual map, XYZ Noodle is highly positioned in terms of

quality and taste. However, due to the nature of the product and variations of quality, price, and

flavors, XYZ Noodle products have low purchase involvement level in which consumer decision

types range from habitual to limited decision making.

Consumers use internal search while also receiving information about XYZ Noodle

through its marketing activities. Four evaluative criteria are considered important among XYZ

Noodle consumers, including quality, price, package, and flavors. When making purchase

decision, consumers may follow the sequences of outlet first, brand second, or brand first, outlet

second, and there is rarely serious post purchase dissonance.

Overall, it is recommended that XYZ Noodle should incessantly engage in product

development, changing package design, creating unique advertising jingle, promotional

campaign and distribution strategy to improve consumer’s experience toward using XYZ

Noodle.

Introduction


XYZ Noodle is a brand created by Massan Group which is founded in 1996 with ten

employees. Currently, Masan group is one of the largest enterprises in Vietnam with more than

fifteen subsidiaries and 2,000 employees, generating about 110 millions USD of annual revenue

(Fortinet, 2009).

Some well-known brands in Sauce and Seasoning Category and Convenient Food

Category include Chin-Su, Nam Ngu, Tam Thai Tu, Rong Viet, Tien Vua and XYZ Noodle

(Massan Group, 2010). Masan Food was voted the #1 brand in the sauce and seasoning category

by Saigon Tiep Thi (Saigon Marketing) for four continuous years. The market share of Masan

Food’s products is showed in figure 1.

Prior to the launch of XYZ Noodle, the manufacturer presented in instant noodle market

with two brands, Kokomi and Chinsu that were not successful. Firstly, XYZ Noodle was priced

at 3000 VND with four types of flavors, Salmon, Thai Oyster, Korean Hotspot, and Pork

(Massan Food, 2010) However, they currently produce only three types, XYZ Noodle pork, beef,

and shrimp priced at 5000 VND. Previously, the slogan was “Delicious potato-made noodles”

that has now been changed to “Delicious and not afraid of inner heat”. Also, the design of the

package was modified from horizontal to vertical layout.(Figure 2,3)


According to Masan Group (2010), XYZ Noodle’s market share in premium instant

noodle line in 2009 accounted to for percent with more than 140 distributors and 126,000 points

of sales, representing a 32.2% year‐over‐year increase.

XYZ Noodle has been encountering a number of major

brands which are Hao Hao, Hao 100, Gau Do that spend more

than 50 percent of communication budget of the product

category and the high level of present in the market

(CPI, 2009). The first and foremost competitor

considered is Vina Acecook, the leading brand in

instant noodle category. In its communication

activities, Vina Acecook emphasizes on product high quality

standardized by Japan technology. Following Acecook, A Chau is another huge competitor who

consistently promotes its well equipped factory and latest instant noodle production lines by

Japanese modern technology.

Target Markets and Positioning

Figure 2. Reproduced from: Masan

Food 2010

Figure 3. Reproduced from: Masan Group

2010


Target Market

Based on the four variables of segmentation, XYZ Noodle’s target markets are people

whose age ranges from 18-30 years old, living in urban areas or big cities like Ho Chi Minh or

Hai Phong, having middle income with young, active and in-hurry lifestyle, especially ones

looking for solution to inner heat caused by instant noodles. Moreover, XYZ Noodle also aims at

people who tend to become loyal customers.

Potential Market Segments

In the behavioural segment, specifically benefits sought, a potential market segment for

XYZ Noodle includes customers who need noodles for hotpot in their meals or middle-class

restaurants serving hotpots in their menu. Instead of buying low-quality noodles, the cooking

Figure 4. Segmentation and Target

Markets

Low-quality Ingredients

High-quality Ingredients

Good taste, many flavours

Bad taste, few flavors

XYZ NOODLE

A-ONE

HAO HAO

MILIKET

GAU DO

TIENG VANG


chiefs may prefer XYZ Noodle instant noodles since XYZ Noodle is not only convenient but

also made of excellent ingredients.

Another attractive market segment, or geographical unit, locates in the states of USA,

where there are a lot of Vietnamese American and students studying abroad. The fact that many

Vietnamese, especially Vietnamese students studying in the US, purchase instant noodles in the

supermarket should be considered while expanding consumers market. With the population of

1,642,950 Vietnamese American in 2007 and 13,000 Vietnamese students abroad in America

(Ha 2009), this country is a promising land for XYZ Noodle high-quality products.

Perceptual Mapping

The perceptual map is constructed based on two evaluative criteria: Quality and Taste of

instant noodles. In term of quality, XYZ Noodle is regarded as a product with high-quality

ingredients along with Hao Hao and A-One. Most consumers are pleased with the potato-made

Figure 5. Perceptual Map


instant noodle of XYZ Noodle. In contrast, Gau Do and Tieng Vang are not rated high in their

quality. Miliket seems to be the worst brand in consumers mind regarding ingredients quality.

On the other hand, XYZ Noodle, Gau Do, Hao Hao and Tieng Vang all score high in

term of taste and flavours. Among these, Hao Hao and XYZ Noodle both provide satisfactory

flavours and awesome taste to the consumers. On the contrary, Miliket and A-One with little

development and research on flavours and consolidated sauces do not meet the customers’

demand.

Generally, consumers have positive perception about XYZ Noodle instant noodles.

Consumer decision making process


Purchase Involvement Level and Decision Making Type

The act of purchasing XYZ Noodle is considered low purchase involvement level

because instant noodles are convenient and inexpensive products. Simply, when consumers have

concern or desire to buy instant noodles, they go for convenience stores or supermarkets to buy

them.

Recently, consumers have been enjoying the benefits from the tense competition among

instant noodle brands with different qualities, prices and flavours, which leaves consumers

confused about choosing among brands. Therefore, instant noodles including XYZ Noodle at

first are bought through limited decision making. However, the high-quality and delicious taste

of XYZ Noodle encourage consumers to make purchase again and again, which contributes to

habitual decision making in grabbing XYZ Noodle instant noodles on the shelves.(see figure 6)

Actual and desired staterning, feeling cold and in a need of a hot meal, being tired of

preparing meals etc.

Figure 6. XYZ Noodle Decision

Making


Based on customer’s desired state, which is consuming the kind of instant noodle without

causing inner heat, XYZ Noodle activates their selective problem recognition. It means in the

consumer’s mind, XYZ Noodle is the only brand that can provide them that kind of healthy

product and this creates great competition advantage for XYZ Noodle.

(Noodles with vs without ‘hot’ effect)


Information search

Internal search

Most consumers of XYZ Noodle use the relevant information from long term memory

such as past purchase or prior experiences to make purchase decision. The good feeling

generated from eating XYZ Noodle in the past can be an effective source of internal search.

External search

Generally, the consumers know about XYZ Noodle through marketing sources such as

TV commercials, advertisings on the internet or newspapers. Besides, consumers also depend on

the direct experience through trials, or refer to the opinions and recommendations from their

friends about XYZ Noodle.

Brand Awareness

XYZ

Noodle, Hao Hao, Trung Vang, Unif and Topa are top five of instant noodle that customers often

recall. Hence, XYZ Noodle uses the maintenance strategy which maintains the consistent


quality of the noodle and pays much attention to POP display attracting the attention from the

consumers about XYZ Noodle. Consequently, they immediately think of XYZ Noodle whenever

needed. In case XYZ Noodle and other top five instant noodles are not available because of

stockout or other reasons, the consumers could use Tien Vua, Aone or Gau Do in the inert set to

replace.


Evaluative criteria

The combined results of quick survey on20 RMIT students on 10 August, 2010

There are four criteria that those students using the most in choosing instant noodles

brands: price, quality, taste and package design.

Quality

Fifty percents of surveyors regards quality as the most important criterion and are willing

to purchase the instant noodle with good quality. Therefore, Masan Food does not use the

chemical to process the noodles but natural spices to protect the consumers’ heath. Moreover,

potato-made noodles contribute to improve this quality indicator.

Price

Consumers also want to choose the brands that offer high quality with lower price, not

the lowest price (mid level brands). Comparing with other brands, XYZ Noodle has the

affordable price with high quality.

Package

To most new consumers, packaging could be a good start to determine which brand to

buy. Normally, consumers are captivated by the products with novel design and appealing

appearance. XYZ Noodle’s package is perceived cautchy, modern and stylish.


Flavor and Taste

Flavour and taste are a critical criterion. Masan Food differentiates itself by making XYZ

Noodle from potato. Hence, the flavor of XYZ Noodle is absolutely dissimilar from other

brands’. This is the just-noticeable difference of XYZ Noodle.

Surrogate indicators

People can regard price and celebrity as indicators for quality of instant noodles. XYZ

Noodle fall into middle price level and has famous actors in commercial clips, which contributes

to XYZ Noodle’s competitve advantage.


Outlet selection

Outlet first, brand second

Since XYZ Noodle’s target segment is people living in big cities and being in hurry, they

tend to stop at any convenience store or supermarket they see first and then choose among brands

available in the stores.

Brand first, outlet second

At first, loyal customers of XYZ Noodle usually think of buying XYZ Noodle and then

consider which stores really have XYZ Noodle. According to Nguyen (2010), there are about

65% of Vietnamese who do not have the habit go to the super market, which means people often

think of the type and the brand before that going to the convenience stores.

In store influences

Store image plays an important role in consumer store choice. Therefore, XYZ Noodle

has used point of purchase (POP) display (see appendix) to attract the attention from the

customer.

Shopping-orientations

Time-staved: busy people who never have enough time

Traditionalist: middle-class housewives with children


Post purchase dissonance

For XYZ Noodle instant noodle, there is no serious purchase dissonance because of:

Low involvement purchase decision

Low level of the importance of decision

Low degree of commitment to the decision

Moreover, XYZ Noodle package is designed to be opened easily, which reduces post

purchase dissonance. However, post purchase dissonance can happen because of consumers’

tendency to experience anxiety while trying new products like XYZ Noodle.

Product Disposal

Because of the consumers’ increasing concerns for ecology, the costs and scarcity of raw

materials, and the changing laws, marketing manager is paying attention to the prouduct disposal

behaviour of consumers. However, people mostly get rid of packages by throwing them to the

bin. Few people think of recycling XYZ Noodle’s packages that are plastic-based, small-sized

and almost useless.

Figure 8

Low purchase dissonance High purchase dissonance


Internal Influences

Perception

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

TV, magazine or internet randomly, which means it often happens just after they finish watching

a movie or while scrolling down the page without their intention searching for it.

What get their focus during the exposure are the full page size and attractive colors of

paper-based advertisement, the movement of lips kissing noodles and just enough information

provided to cause awareness and curiosity in commercials. People pay attention more to XYZ

Noodle's advertisement basically because of their interest in trying or tasting something new,

something different rather than the need to know.

The interpretation of XYZ Noodle’s consumers occurs in a cognitive way. This means

the paper-based advertisement and commercials all use captions and speeches in fundamental

words such as ‘XYZ Noodle – irresistible deliciousness’, providing semantic meaning for a vast

number of buyers to understand properly, therefore, get familiar to XYZ Noodle noodles and feel

like purchasing the product.


Types of Learning

Classical conditioning is mentioned due to the reason that the main way customers are

aware of the product is through advertisement or commercials, and they would have positive

feeling towards about it, which after that, forces them to buy and try out XYZ Noodle noodles.

Moreover, buyers tend to think of XYZ Noodle products immediately when they hear

about instant noodle that does not cause inner hot effect. This means they use iconic rote

learning, the process of learning the association between two concepts (inner hot and XYZ

Noodle noodles) or more without the conditioning presented.

Last but not least, another way consumers learn about this brand is through vicarious

modeling. The celebrities’ eating behaviour, shown with their appearance of being pretty and

well shaped, that XYZ Noodle uses in the advertisement views to consumers the

positive result of using the product, so they

may adjust their

purchasing

behaviour and

start to buy XYZ

Noodle instant

noodles. (figure

9)

Figure 9


Motivation

In regard to Maslow Hierarchy of Needs (figure 10), besides meeting physiological

needs with fast and convenient meals, they try to activate safety and security need by

stimulating awareness of “inner heat

prevention” from XYZ Noodle

products.

As for McGuire Theory,

utilizing cognitive motives, marketers

firstly adopt cues in cognitive

preservation. To illustrate, the

advertisement employing celebrity

endorsement exhibits a surrogate

indicator, which gets customers infer

XYZ Noodle’s quality to be high as

they’re young and easily influenced. In

addition, nice package design is also considered as one of observable cues to customers.

In terms of cognitive growth, XYZ Noodle tries to diversify its products to meet novelty

motives which relate to the need of variety and difference (Quester et al. 2007). Again, solving

“inner heat” illustrates marketers’ effort in satisfying utilitarian needs. This also builds a

connection to tention reduction of effective preservation needs as customers are free from the

concern caused by inner heat.

Finally, regarding affective growth motives, observing positive effect famous people

have after using XYZ Noodle allows customers to feel confident and likely to perform the same

behavior, which has fulfilled their modeling needs.

Figure 10


Attitudes

The combined results of quick survey on

20 RMIT students on 10 August, 2010

Cognitive component

Most surveyors have a good attitude towards XYZ Noodle’s price, taste and package

design, which is the result of XYZ Noodle’s huge investment in R&D team including 50 food

Figure 10. Adapted from: Quester et al. 2007


technologists (HSC 2010). Moreover, XYZ Noodle succeed in spreading out and educating the

customers of its potato-made noodles. Nevertheless, some consumers are still not sure about the

chemicals put into XYZ Noodle.

Affective component

According to Quester et al. (2007), continued repetition of advertisements for low-

involvement products may increase the liking for the product. This is proved when XYZ Noodle

used TV commercials - part of 20-million-USD advertising campaign (HSC 2010) - and mere

exposure to improve the affective components.

.

Behavioural component

15 out of 19 surveyors who have purchased XYZ Noodle will purchase XYZ Noodle next

time. This figure points out the remarkably positive intention to purchase behaviour of XYZ

Noodle. This success is also attributable to XYZ Noodle’s effective use of POP and premiums in

wide range of supermarkets.

Recommendation strategies

In commercials of

XYZ Noodle, the two

famous actor and

actress acting in the

same popular film

series eat XYZ

Noodle in an

enjoyable and

romantic way. Figure 11


Product development

Regarding McGuire’ motivation theory, since customers’ novelty motive stimulates their

desire for variety and difference, adding new flavors or ingredients continuously will serve as

surrogate indicators that influence their buying decisions. Additionally, diversifying product

forms involving making Noodle Cup, Noodle Bowl can benefit different types of consumers

such as travelers and so on. Lastly, by doing research on customer demand, the company will

be continuously updated about their new expectation and able to satisfy them in a timely manner.

Package Design

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

XYZ Noodle to produce this type of package from recycled paper and offers a convenient way

for customers to dispose after use. With this strategy, the company expresses its concern for

environmental issues, building a good image in customer mind. In addition, expenses on package

production can reduce considerably due to paper-based strategy’s implementation (figure 12).

Reversely, creating a fresh attractive look for the new package can become an obstacle.

Marketers need to be aware that package is one of observable cues which buyers base on to

choose among a variety of noodle brands.

To make this strategy work, marketers should

educate customers about the advantages of this strategy, how it can benefit them in a long term

Figure 12


and the international trend of environment friendly materials through advertisements on TV or

newspaper, which is also a good way to attract customer attention to XYZ Noodle.

Advertising

Including advertising jingle in the commercials can be a wise strategy to keep the ad

stay longer in consumer’s mind. Music has great impact on consumers’ short-term memory as

they get familiar with the sound, with or without their awareness, reminding them of the ad

whenever they hear the ad jingle. With this tactic, the advertisement can perfectly serve its role.

Promotion Campaign

Nowadays, customers have become more and more concerned about social issues. Using

the promotion tool “Buy 5 packs - Give out 1 pack for charity”, marketers not only try to

increase sales by encouraging customers to buy in bulk but also get customers involved in social

activities, which consequently engages them in good feelings since they can contribute to

community development.

With an emphasis on marketing for XYZ Noodle’s new paper-based package, a press

conference can be hold in order to introduce its new look and give explanation of its advantages

to environment.

Distribution Strategies

Regarding the importance of high level of product avalability to XYZ Noodle’s target,

who is active and always in hurry, prolonging Intensive distribution strategy is necessary as it

allows XYZ Noodle’s products available any time and anywhere customers want them.

Besides intensive distribution, XYZ Noodle marketers can think of exclusive distribution

style such as utilizing Noodle mobile van campaign, which can be an innovative way to

distribute its product. XYZ Noodle mobile vans will sell only Massan products including XYZ

Noodle, along with materials necessary for making a highly nutritious meal with instant noodles

(Figure 13). These vans move around cities and may stay longer at amusement parks, trade fairs,

sport match venues, stadium and even music concerts owing to a high demand of fast and

convenient meals in these places.


Also, opening XYZ Noodle outlets in universities and high schools can be beneficial.

Illustrating a huge consumption of this product, students play as one of the most important target

of XYZ Noodle.

Though these tactics may or may not be profitable to Massan Group, the company

should avoid possible big losses from operating these vans or outlets. Regardless of profitability,

the company aims at reinforcing XYZ Noodle’s reputation together with promoting positive

feelings of customers for XYZ Noodle.

Figure 13. NOODLE MOBILE


ReferencesCPI 2010, ‘Cuoc chien my an lien tren thi truong Chau A’, viewed 5 August 2010, <http://vietbao.vn/Kinh-te/Cuoc-chien-my-an-lien-tren-thi-truong-chau-A/10803623/87/>.

Fortinet 2009, ‘Vietnam-based manufacturing company adopts Fortinet’s security solution to protect its entire WAN infrastructure’, viewed 5 August 2010, <http://www.fortinet.com/doc/cases/masan_group.pdf>

Ha, A 2009, ‘Sinh viên Việt Nam học ở Mỹ xếp thứ 9 thế giới’, Vietnamnet, 17 November, <http://vietnamnet.vn/giaoduc/200911/Viet-Nam-lot-top-10-luong-sinh-vien-du-hoc-My-879150/>.

HSC 2010, ’Masan Food’s market share’, table, in HSC, Company Report: Masan Group, p. 6.Masan Foods 2010, ‘XYZ Noodle Ngheu’, image, viewed 14 July 2010, <http://www.masanfood.com/chinsu/product.php?id=27&cid=2>.

Masan Group 2010, ‘XYZ Noodle Beef’, image, viewed 14 July 2010, <http://masangroup.com/businesses/products.html#>.

Massan Food 2010, ‘Instant Noodle Products’, viewed 30 July 2010, <http://www.masanfood.com/chinsu/product.php?cid=2>.

Nguyen, DB 2010, “ Xep hang thi truong ban le toan cau 2010”, Dantri, viewed 6 August 2010. <http://dantri.com.vn/c76/s76-413533/xep-hang-thi-truong-ban-le-toan-cau-2010-viet-nam-dang-roi-tu-do.htm>.

Quester, Q, Neal, C, Pettigrew, S, Grimmer, M, Davis, T & Hawkins, D 2007, Consumer Behaviour: Implication for Marketing Strategy, 5th edn., McGraw-Hill Irwin, Australia.

Appendices


MKTG 1253 – Buyer Behaviour

XYZ Noodle Group _ Lecturer: Fiona Dewis

SURVEY FORM 1

HOW YOU CHOOSE INSTANT NOODLES ?

Criteria Use it or not ? Most Important one !

Quality (Ingredients/Healthy)

Price

Package Design

Flavour, Taste

Way of preparation (Bowl,

Cup, plastic box)

Promotion campaign

SURVEY FORM 2

TELL US YOUR OPINION ABOUT XYZ NOODLE !

Cognitive Component (Measure beliefs about specific attributes)


Level of agreement

Low price High price

Good design Bad design

Distinctive in taste Similar in taste to most

Chemical-free High in chemical

Potato-made Not at all

Affective Component (Measure feelings about specific attributes or the overall brand)

Strongly

agree

Agree Neither

agree nor

disagree

Disagree Strongly

disagree

I like the taste of

XYZ Noodle

XYZ Noodle is

good for your heath

I like XYZ Noodle’s

commercials

I like XYZ Noodle

Behavioral components (Measuring actions or intended actions)

Have you ever purchased XYZ Noodle? Yes

No

What is the likelihood you will buy XYZ Noodle the

next time you purchase instant noodles?

Definitely will buy

Probably will buy

Might buy

Probably will not buy

Definitely will not buy

Thank you very much for your help

mktg 1253 - g7 - product analysis - omachi 2

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