Product Innovation with Masan Consumer Holdings

Product Innovation: Masan unleashes the synergy of hybrid research with qual and quant to accelerate growth Masan is focused on innovation and meeting the changing needs of consumers in the market How important is it to gather feedback from both the product and retailer sides before implementing innovations before launch How did they change the strategy for a product launch from being unsuccessful to successful What is the synergy between qualitative and quantitative research used for innovation in the food industry Nguyen Ngan Huong , Consumer Insight Head, Masan Consumer Holdings Video transcript below  (This is an AI generated summary. There may be inaccuracies.) Nguyen from Masan Consumer Holdings provides an overview of their company and the market in Vietnam. Masan is the leading food and beverage company in Vietnam, playing in nine categories, including seasoning, convenient food, meat, beverages, and personal care. They have 14 factories across Vietnam and a large innovation center with specialists. Masan is a member of the Masan Group, which owns a modern retail platform called Lazada that is rapidly expanding. The retail industry in Vietnam is facing challenges due to the pandemic and economic downturn, with many businesses closing down or moving online. However, consumer interest in health and hygiene products has increased, with strong demand for products like Yakun that promote immunity and everyday health. Masan has responded to this trend by launching healthier energy drinks like Enerti with less or no sugar and salt content. Overall, Masan is focusing on innovation and meeting the changing needs of consumers in the market. She talks about the rise of in-home cooking in the Vietnam market, driven by cost savings and an increased importance of family values. They mention how consumers save money by cooking more often, including breakfast, and then talk about how they prioritize their families. They also talk about the trend of sharing meals and holding family moments together. One previous obstacle to capturing this need from consumers was the lack of readily-to-cook products, but the speaker notes how these products, like meal makers and seasonings, are now readily available. They mention foods like fish sauce and tiger suju as examples. The speaker then talks about the synergy between qualitative and quantitative research used for innovation in the food industry. They discuss their company’s efforts to capture this trend with a traditional beef and BN stew soup noodle that has failed in the past because of a focus on quantity over traditional taste. They note that they have now produced an instant version of the soup and plan to launch it first on their story. They mention that this is a journey to maintain a truly traditional taste offer that is popular among many generations. Nguyen discusses the approach taken to launch Masan Consumer Holdings’ three new instant food products. They aimed to appeal to consumers by offering a variety of ingredients and flavors. The first product focused on taste and added a pouch of real meat, while the second product emphasized the unique ingredients. The third product focused on the noodles themselves. Despite initially launching with higher prices, sales were low due to competition in the market. To address this, Masan conducted interviews with food writers, journalists, and shop owners to gain insight into consumer preferences. They found that consumers valued uniqueness in the recipe and nostalgia for longstanding shops with a “secret recipe.” Masan then collaborated with a famous shop owner in Hanoi to co-create a new brand, First Story, which launched with a series of rice noodle products. In the previous section, the speaker discussed Masan’s initial failure to launch a sterilized sausage brand in 2015 due to a lack of clear strategy. She discusses the successful launch of a product called “Source and Shake” sausage box, which was launched the following year after a three-month trial period. The product was designed by observing young children’s eating habits and snacking preferences, and is marketed as a fun and do-it-yourself product for kids that meets their nutritional and hygiene needs. The speaker also emphasizes the importance of creating a supportive environment for innovation at the company level, including having strong project leaders and clear communication plans. Masan Holdings discusses their approach to sustaining innovation in the face of failures. They pointed out the importance of monitoring the launch from the very first day and immediately addressing any issues through interviews and observations. Masan also shared that they try to gather feedback from both the product and retailer side before letting go to Innovation. The company emphasizes the need to evaluate whether the innovations have secured enough support before implementing them. Additionally, Masan shared how they apply a pilot approach by launching products in their affiliate partner, vmar for one or two months, to see the initial feedback, before launching it nationwide. Masan believes that understanding the Vietnamese market deeply, their strong background in seasonings, and their own resources give them an advantage in the market. Explore QUAL360 EU vision for the future of qualitative market research! Discover the latest in technology and analytics with leaders from Booking.com, BBC, Babbel, eBay, Swarovski, Google, Hello Fresh, Reddit, Bose, Mars Wrigley, RBI and more. Don’t miss out – secure your spot now!