SUBJECT: MICROECONOMIC
FULL NAME: MAI HƯƠNG GIANG
CLASS: IB18B
INDIVIDUAL 3
PROBLEM: Analysis of 3 Mien Noodles market of UNIBEN Joint Stock
Company in Vietnam.
SOLUTION:
COMPANY: UNIBEN
Uniben Joint Stock Company was officially established on June 1, 1992, with the
name Viet Hung Food Industry Company Limited, mainly producing instant noodles
for domestic and export markets. On September 27, 2014, the company officially
changed its name to Uniben Joint Stock Company. The company inaugurated
UNIBEN Hung Yen factory, a modern food factory designed according to European
standards in 2015. A year later, the brand "3 Mien" became one of the selected brands
to buy in Vietnam 2016 as announced by the world's leading market research company
Kantar Worldpanel. Uniben company with the brand name 3 Mien and Reeva,
provides products: instant noodles, pho, porridge, fish sauce, seasoning seeds for
domestic market and export. Uniben aims to become a "Multi-product, multi-brand,
multi-national" company with instant noodles as the leading industry for growth.
Uniben, with nearly 25 years of development, always strives to bring nutritious,
delicious, diverse, and food-safe products at the most reasonable prices, and at the
same time strives to bring the best value to customers. the best for customers,
employees, partners, investors, and the whole society. To do that, “Customers,
Cooperation, Perfection, Integrity, Discipline” are the 5 core values of Uniben.
I/ PRODUCT: 3 MIEN NOODLES
3 Mien Noodles is not only a well-known brand of instant noodles in Vietnam, but it
also enjoys recognition and a significant following abroad. The brand's success can be
credited to its dedication to offering top-notch goods with genuine flavors. The wide
variety of products that 3 Mien Noodles offers genuinely sets it apart from its rivals
especially taste the dedication and passion that went into making these extraordinary
instant noodles with every bite. From the classic instant noodle packs that we all know
and love, to unique variations like chewy noodles and soft noodles, 3 Mien Noodles
brings innovation and excitement to each customer. Beyond its commercial success, 3
Mien Noodles actively gives back to its community through social support initiatives.
The business supports philanthropic causes, provides local employment possibilities, and
supports educational activities. Through these initiatives, 3 Mien Noodles has evolved
from a simple food brand to a fixture in people's daily lives. It continues to earn the trust
of its clients by firmly committing to providing top-notch goods and outstanding
culinary experiences. 3 Mien Noodles has established itself not only on the home market
but also on a global scale. Delicious noodles from the brand have been exported to many
nations, making it a well-known international participant in the instant noodle business.
II/ ANALYSIS THE SUPPLY AND DEMAND
[Link]:
One of the important factors bringing the success of 3 Mien Noodles is the strategy of
"Customer-oriented development". UNIBEN company always takes understanding and
meeting the needs of consumers as a guideline for all production and business activities, and
must start from practical research to be able to offer new products. With nearly 30 years of
experience in the instant noodle industry, Uniben has been gradually realizing its goal of
becoming a pioneer in the trend of products that are beneficial to consumers' health. Tens of
millions of delicious, nutritious, and healthy products of the company have "covered" the
whole country and are present in many countries around the world.
1.1. Ingredient:
It might be possible for 3 Mien Noodles to investigate export prospects to overseas markets.
This necessitates that the business adheres to export laws and standards as well as locates and set
up international distribution networks. Key raw ingredients must be readily available and
accessible in order for 3 Miền noodles to be produced. These might contain wheat flour, water,
different flavors, and other ingredients found in the flavoring packages and noodles. To maintain
production levels and satisfy market demand, it is essential to guarantee a steady supply of high-
quality raw materials.
[Link] technology
The production technology that 3 Mien Noodles employ significantly affects how much it can
produce. Adopting cutting-edge technology can also increase production capacity by reducing
costs and streamlining processes. 3 Mien Noodles can take advantage of economies of scale by
increasing production, which lowers the cost per produced unit and might be passed on to
customers. Besides, the fact that each 3 Mien Noodles product is made on contemporary lines
makes it distinctive, advanced packaging, and pasteurization technology so that the noodles are
always golden, chewy, and crispy with the quintessential flavor in the rich juice package.
Additionally, a greater manufacturing scale offers the adaptability to adjust to changes in
demand and more successfully satisfy market requirements.
[Link] system
Uniben's 3 Mien Noodles is one of the Vietnamese brands with a strong and widespread
distribution system with more than 300,000 modern and traditional channel selling points with
the advantage of owning a cooperative distribution system of more than 500 agents, 1,000
supermarkets, and 150,000 stores nationwide plus a methodical investment in infrastructure to
improve product quality in a safe and healthy way. A firm can only be said to have developed
when many people use its products, to achieve this, a company's distribution system must be
built with efficiency and in accordance with the enterprise's product qualities. UNIBEN has
used a mass distribution strategy with nationwide coverage in a level 2 distribution channel
system: Manufacturer -Wholesaler- Retailer- Consumer
● Effective inventory management is vital in a distribution system. 3 Mien Noodles needs
to maintain optimal inventory levels to meet demand while minimizing the risk of out-of-
stock or overstock. Advanced inventory management systems, such as real-time tracking
and demand forecasting, can support inventory levels and distribution workflows.
● 3 Miền noodles products from manufacturing facilities or distribution centers to
wholesalers, distributors, and retailers require an efficient logistics network. This
involves selecting reliable logistics partners, managing shipping routes, coordinating
delivery schedules, and ensuring proper product handling and storage.
● Here, the business uses wholesalers and retailers as distribution middlemen. Choosing
wholesale and retail distributors makes sense for the quality of instant noodle products
that are well-liked and accessible to consumers, saving on intermediate costs and
bringing about high efficiency. The company also has 2 additional branches at Km 24,
National Highway 5, Vinh Khuc Commune, Van Giang District, Hung Yen, and Hapro
Food Industrial Park, Le Chi Commune, Gia Lam District, Hanoi, in addition to its main
production facility in Phan Van Do Street, Tien Lan Hamlet, Ba Diem Commune, Hoc
Mon District, Ho Chi Minh City, Vietnam.
● Opening more branches is essential for every business because it makes it easier to
supply and distribute goods. UNIBEN Joint Stock Company regularly strives to become a
leading company in the instant food industry in Vietnam, and at the same time promotes
operations to regional countries and foreign markets. The market of UNIBEN Joint Stock
Company has expanded both domestically and internationally after more than thirty years
of expansion and construction, from urban centers to rural and isolated regions. UNIBEN
Joint Stock Company expands trade with partners in Eastern Europe, Asia, the USA,
Sweden, and Finland, not just on the domestic market.
1.4. Competitor companies
Our country has about 50 companies producing instant noodles, including domestic and foreign
enterprises. At the top is Hao Hao of Acecook, followed by Omachi and Kokomi instant noodles
of Masan, followed by Red Bear, 3 regions, Vifon,...
=> As noodle brands with stable market share in the market, mid-range brands such as Hao Hao,
Kokomi, 3 Mien, Red Bear, Vifon,... have much more advantages than the other domestic and
foreign brands are present in the market. However, the special acompetitive point like the
current situation, these big guys still need to work hard to be able to maintain position and
develop in this competitive market.
2. Demand:
- Instant noodles are a popular consumer product that anyone can use, so they can be included in
many segments such as occupation, gender, and age, but elderly people still buy them for
customers of the target age group of 3 Mien noodles used. The age group from 12-25, is a low-
income group, specifically students, they tend to choose according to the criteria of "Delicious -
Supplement - Cheap", so the product line 3 Mien Spicy Sour and 3 Mien Gold Special Spicy
Sour is a familiar choice for them. Reeva 3 Mien noodles, with brand-emphasized qualities such
innovative flavors and solid traditional flavours, are the product for those with ordinary
incomes.
- Kantar Worldpanel announced that in the second quarter of 2016, the 3 Mien Noodles brand
was leading in rural areas, accounting for 26% of instant noodles consumption, contributing
22% of the market value. This is the result of CAMP's spectacular comeback of 3 Mien Noodles
when continuously growing at double digits during the past 2 years, during a period when the
market grew only a few percent, even negative.
- 3 Mien noodles account for nearly 30% of the noodle packages consumed (According to
Kantar Worldpanel – Rural - P9/2017), with many different product lines “rich with Vietnamese
flavor” which are very popular with consumers. In non-urban areas, the amount of 3 Mien
Noodles consumed accounts for 80% with 63% of households using it. Particularly in the central
region, 3 Mien Noodles account for half of the noodles consumed.
- The Covid-19 pandemic changed shopping habits from grocery stores to supermarkets and
mini-marts. At the same time, making consumers' habits tend to shift from buying things at
home to preferring online purchases, e-commerce channels develop. The COVID-19 pandemic
that appeared in 2020 has become a strong driving force for the instant noodles business,
consumers tend to cook and store dry food themselves.
+According to Statista data, the quanity of instant noodles consumed in urban areas of
Vietnam increased by 67% over the same period. This number is much higher than frozen food
(40%) and processed meat products, sausages (19%).
+ In which, 3 brands of instant noodles are used the most by consumers : 3 Mien, Hao Hao,
and Red Bear. In terms of market share of 3 Mien brand in the market, according to Retail Data
statistics (data as of the first 9 months of 2020), Acecook Vietnam holds 35.4% market share in
terms of revenue, followed by Masan with 27.2%, Uniben 14.9% and Asia Foods 10.1%. This
shows that Uniben occupies a relatively large portion of the instant noodles market in Vietnam.
+ In addition, Vietnam's "noodle quartet" accounted for about 88% of output and 84% of the
instant noodles market's income in 2020, earning a combined total of nearly 24 trillion VND, or
over 1 billion USD. Accordingly, Uniben's sales fell by just 1.3% in 2019 but picked up steam
in 2020, surpassing VND 3000 billion and increasing by 6.3% compared to the year before.
Since 2016, Uniben's profit after tax has climbed consistently. However, in 2020, it increased
dramatically by 451% over 2019, hitting 216.3 billion dong. The largest gross profit margin
among businesses in the same sector is held by Uniben, with a margin of 37.0%.
- Consumer expectations:
Customers expect 3 Mien Noodles to be manufactured and packaged to safe and reliable
standards. They want to make sure that the product contains no harmful additives or
preservatives, is quality tested, and has a variety of varieties, flavors, and sizes to choose from
according to your taste and dietary needs.
III/ MARKET SURVEY OF 3 MIEN NOODLES
1. Coopmart supermarket
Product Price Promotion
3 Mien Spicy Sour Shrimp Flavor Instant Noodles 65G 3.500 VNĐ 2.800 VNĐ
3 Mien Lobster Flavor Instant Noodles 65G 3.500 VNĐ 2.800 VNĐ
3 Mien Beef Flavor Instant Noodles 65G 3.500 VNĐ 2.800 VNĐ
3 Mien Gold Special Spicy Sour Shirmp Flavor Instant 5.100 VNĐ
Noodles 75G
3 Mien Gold Spicy Sour Thai Hot Pot Flavor Instant 5.100 VNĐ
Noodles 75G
3 Mien Gold Herb Beef Flavor Instant Noodles 75G 5.100 VNĐ
2. GO! supermarket
Product Price Promotion
3 Mien Spicy Sour Shrimp Flavor Instant Noodles 65G 3.000 VNĐ 2.500 VNĐ
3 Mien Lobster Flavor Instant Noodles 65G 3.000 VNĐ 2.500 VNĐ
3 Mien Beef Flavor Instant Noodles 65G 3.000 VNĐ 2.500 VNĐ
3 Mien Gold Special Spicy Sour Shirmp Flavor 4.800 VNĐ 3.900 VNĐ
Instant Noodles 75G
3 Mien Gold Spicy Sour Thai Hot Pot Flavor 4.800 VNĐ 3.900 VNĐ
Instant Noodles 75G
3 Mien Gold Herb Beef Flavor Instant Noodles 75G 4.800 VNĐ 3.900 VNĐ
3. Thanh Nữ Grocery Store
Product Price
3 Mien Spicy Sour Shrimp Flavor Instant Noodles 65G 3.000 VNĐ
3 Mien Lobster Flavor Instant Noodles 65G 3.000 VNĐ
3 Mien Beef Flavor Instant Noodles 65G 3.000 VNĐ
3 Mien Gold Special Spicy Sour Shirmp Flavor 5.000 VNĐ
Instant Noodles 75G
3 Mien Gold Spicy Sour Thai Hot Pot Flavor 5.000 VNĐ
Instant Noodles 75G
3 Mien Gold Herb Beef Flavor Instant Noodles 75G 5.000 VNĐ
IV/ ANALYZE CUSTOMERS FROM TIME TO TIME:
1. Target customers of 3 Mien Noodles:
Age: 3 Mien noodles‘s target customers do not focus on a specific age range, however, the age
group from 12-45 will be the main customers that 3 Mien target.
Occupation: student, office worker, freelance worker.
Income: have a source of income from low or higher.
Psychology: Prioritize choosing low-cost products from familiar brands.
Lifestyle: customers have a busy lifestyle and they prioritize convenience and quickness in
meals. Or with the age from 18 to under 30 - age of students, newly graduated employees,...tend
to be frugal in spending so most will choose instant noodles in meals.
Benefits Seek:
● Find affordable products.
● Using the product is convenient,it is easy to buy the product because it is almost possible to find it
everywhere.
● Ensure the energy you need to provide during meals.
● Tasteful products.
2. Consumer buying time
● Time of week:
Monday - Friday: During the working week, consumers often buy instant noodles in the evening
after work. With today's busy life, quick and convenient meals like instant noodles become a
favorite choice to save cooking time.
Saturday - Sunday: Weekends are often times when consumers have more time to prepare more
complex meals. However, instant noodles are still bought on weekends because of their
convenience and simplicity.
● Time of day:
Morning: Although instant noodles are not a popular breakfast food, there are consumers who
buy instant noodles for convenience in preparing breakfast.
Lunch: In some cases, instant noodles can be a quick and easy lunch option.
Evening: Evening is the main time when consumers buy instant noodles. At this time, they can
enjoy instant noodles in the family or enjoy it as a temporary meal when they don't want to cook
big.
● Economic status and consumption scale:
Cheap option: When considering the economic factor, instant noodles are often an option for
families with limited books. So consumers can buy instant noodles in time when a salary or a
monthly income has been received.
while shopping at the market or supermarket: Many consumers buy instant noodles while
preparing their daily purchases. When they pass through the convenience store area, they can see
instant noodles and decide to buy them immediately for convenience.
Promotions and discounts: Promotions and discounts can have a big impact on instant noodles
consumption. When there is a promotion or discount on instant noodles, consumers can buy more
than usual time to save money.
Signature
Giang
