Instant Noodle Market: Domestic Goods Take the Lead

11:22:15 AM | 3/23/2010

Instant noodle, which was originated from Japan, has quickly become a favourite food in Vietnam and domestic producers are also rapidly controlling the market; keeping foreign brands at bay.
 
Miliket instant noodle, shrimp flavour, made by Vifon Foods Company and packaged in “cement” paper was a phenomenon of the Vietnamese food industry in the 1990s. Although the design was simple and the spice consisted of salt, onion and pepper, Miliket was the king in nearly a decade in the northern market no matter how many new eye-catching brands were introduced.
 
Right to consumer tastes
Explaining the success, Mr Bui Khanh Dung, Director of Centre for Market Information and Research, Investconsult Group, briefly commented: “Maybe at that time, the market did not have many choices but I think the core is not so. Miliket studied and knew how to please northern customers. The success is clear with the support of customers.”
 
Miliket only conceded its market share to Hao Hao product made by Vina Acecook in early 2003. The products quality and price were similar to Miliket but good-looking designs and diversified tastes helped Hao Hao score points.
 
Defining market segments for orienting business, product quality and reasonable prices were sound choices and the successes of Miliket and Hao Hao are typical examples.
 
PR technology works?
Vietnam is one of largest instant noodle markets in Asia. According to incomplete statistics, the country is home to some 50 instant noodle producers with hundreds of brands. Most market leaders are Vietnamese firms like Vina Acecook, Asia Food, Vifon and Uni-President, etc which take up to more than 90 % of market share with 5 billion bags a year. The remainder belongs to foreign brands.
 
Competition amongst domestic brands is intensified. Noodle producers are exerting PR technology as an instrument to orient tastes after improving designs and quality. Omachi instant noodle manufactured by Massan Group kicked off the trend. It is a real challenge for the producer to turn out potato noodle because of production costs. It seems that everyone understands this but, with the delivery of a practical message “do not fear hot” amid concerns over the body heat caused by eating instant noodles, Omachi wins. Similarly, Tien Vua (pay tribute to the king) noodle, without much excellent designs, tastes and quality, knows to touch the most concerning issue of consumers. The producer confirms that it never uses second-time oil for the product, thus protecting and strengthening the health. With the handsome advertisement budge, Tien Vua is making success.
 
Unlike the past, consumers now do not only care fullness but also deliciousness and goodness to health. To be the winner on the market, companies must have good PR strategies from the start.
H.M