MAMA

Instant Noodle

Introduction

Thai President Foods Public Company Limited, the manufacturer instant noodle
brand of “Mama” was established 18 April 1972, is a Thai company based in Bangkok.
Mama is the leader in the instant noodle market in Thailand with over 45% market share.

The first product was "chicken soup". At that time, it sold for 2 baht per pack and
instant noodles were still new to Thai society. Over time, "Mama" has become a generic
name for instant noodles of Thai people today, and with a "price" that is easily accessible
since 2008, which was the last price adjustment 14 years ago, the current price is still the
same for a package 6 baht, a cup for 13 baht and ready to distribute accessing all sales
channels.(WP, 19 February 2022) There are both popular flavors and new flavors make
Mama become a part of Thai people's way of life and every Thai household.

The beginning of the name Mama. There are two meanings. The first is Mama,
which means “mother” and another meaning is Mom is the one who always cooks
delicious food for us to eat. Mama brand is like the food that mom made us eat. (You
Mooc, March 18, 2022)

Over the past 50 years, everyone faces problems whatever in 1997 Asian Financial
Crisis and the COVID-19 pandemic, Mama made it through with little impact because of
the company has focused on good products, good partners and good management and
team. Focusing on economical investments, not overinvesting, which has made Mama
grow up to this day.

“Mama” has created a brand that is widely known in the market (Mass), with main
products in the form of “sachets” to meet the needs of target groups, but consumer
behavior changes all the time. People travel to study abroad, travel abroad make a
lifestyle that loves more convenience. Therefore, Mama has produced Mama Cup or
Mama Plastic Cup in 1997. When consumers are aware of the environment. The launch
of an eco-friendly product that replaced plastic cups with paper cups occurred in 2004.
That's what brands develop and adapt in their marketing all the time. The flavors that are
considered Mama's selling point are Tom Yum Kung (Shrimp Tom Yum) and Minced
Pork.

Each year, Mama launches many new flavors among the changing market trends.
Especially in the past several years, "premium" noodles have become popular because
"Ramyon" or Korean noodles help open a way to break down the "price" barrier for
consumers to dare to buy a pack of 30 baht up to 50-60 baht more. That means consumers
are paying more for the benefits of more nutrients as well. So, marketing in this group
began to have the effect of taking the market share of the instant noodle business in
Thailand.

Mission Statement

 Maximize the consumer’s benefit with quality and nutritious, convenient, safe
food products with reasonable price.
 Develop human resources capabilities, leading the company to be learning
organization for everyone.
 To increase production efficiency with modern technology, support research
and development to initiate foods innovation and efficient management system
from Big Data information.
 Search for marketing opportunity and channel for continuously growth of our
business around the world.
 Build trust among stakeholders by emphasizing social responsibility and
protecting natural resources through good governance for sustainable
development.


Values

 Participation, Organization, World Class, Ethics, Responsibility, Sustainability.

The company's vision is to be a global leader in producing food products and

brands that consumers accept and appreciate in every household. It is a food product that
is safe and quality according to international standards. Under creative business
operations and social and environmental responsibility for sustainability. Their instant
noodles must be delicious, convenient, have a long shelf life. Save time, cost and safety.

Corporate Objective

 Increase consumers and profit by introducing new product to market.

 Increase annual operating income by 7-10% in 2023.
 Focus on premium product and the premium target group customers.

Current Audience

Mama Instant Noodle categorized its marketing strategies into several categories
by using the STP model, which consists of Segmentation, Targeting, and Positioning.
Marketing Segmentation (product), targeting(place), and positioning (promotion) is STP
marketing categories that Mama used to analyze the market and make understand its
business. These three crucial elements support a business's ability to be successful.

STP Model is a marketing tool that analyzes information about market segmentation,
determines the target audience, and positions the product that the data obtained from the
analysis will be used in marketing strategy planning to achieve the set business goals.
The STP procedure used by the Company is as follows:

1. Mama’s Segmentation

a. Geographic
 Thailand
 All areas

b. Demographic
 Consumer groups with all levels incomes: High, Middle and Low incomes.
 Consumer groups according to preferences for a variety of flavors, such as the
Tom Yum flavor that focuses on people who like spicy flavors.
 The consumer group by age range, with the largest group of consumers being
teenagers.

c. Psychographics
 Divided into groups according to individual taste preferences.
 Cheap price.
 New experience, change according to trend.
 d. Behavioral
 Convenience to buy.
 Convenience to eat.
 Loyalty consumer.

2. Mama’s Target

- Mainly consumers with low-income.

- Workers who value speed and convenience.

3. Mama’s Positioning

A brand that is famous among instant noodles. that is popular with consumers

In the past, Mama is a brand that has been with Thai people for more than 50
years. Therefore, in terms of product development and brand communication, it has been
adapted to suit consumers of all eras. Their customers are both male and female. Starting
from the age of 4 years. The income group ranges from the middle to the lower level
because it is a cheap product. Especially the main consumer group that is the heavy user
of instant noodles is the group of teenagers. And these customers also like the product
because of it is easy to find in general stores. Easy to eat by adding hot water and closing
the lid. Wait just 3 minutes then you can eat. Which this group of people enjoy very
much because it can be carried around and is suitable for a hurry, and there are numerous
flavor options.

Situation Analysis

Identify Opportunity

Nowadays, Korean instant noodles have a market share in Thailand of about 10%
because in the past 3-4 years, the new generation of Thai people has become increasingly
popular with Korean instant noodles from that flat lines, soft chews, concentrated soup
and it is looks more premium than Mama. Although the price is more expensive than
instant noodles in Thailand like Mama more than 4-5 times. Therefore, Mama should pay
attention to the “premium market” of that tends to increase in the future as well.

5C Analysis

Mama is the largest instant noodle brand in Thailand under the Thai President
Foods company which offers a wide range of instant noodles, about 50 different flavors.
It is also contracted to produce noodles for leading companies in Europe, America and
Australia to export international brands such as MAMY, PAPA, PAMA, HANDI RICE
and PRESIDENT RICE with a total production of 6 million packs per day.(Jan, 16
August 2022)

In 2021, Mama achieved sales of 14,710 million baht, divided into domestic sales
of 10,386 million baht and foreign sales of 4,324 million baht. In the first half of
this year, the revenue reached 15,870 million baht which is more than the total income of
the previous year for the whole year

Mama set a 22,000 million baht sales goal for 2027, with 12,000 million baht of th
at coming from domestic sales and 12,000 million baht from exports.(Thansettakijdigital,
26 September 2022)

Company
The financial position of the company is strong and it can afford to spend
significant amount of resources on marketing to launch new products and to be better
position existing brands. The company owns several brands of instant noodle and people
know this company very well from several advertise such as TV shows, radio, newspaper
and so on.

Customers
Mama has a variety of flavors to supply customers of all genders and ages
including children, teenagers, adults, or even the elderly. Mama is a brand that has been
around for 50 years, resulting in a dense customer base. And Mama's products have
become regular products of many households in Thailand.

Competitors
In Thailand, there are many instant noodle
brands. The brand that is the first competitor to
Mama is Wai Wai which is the second largest
market share in this business, followed by Yum
Yum which hold the third market share and

Source : Ready to eat food, Krungsri Research

Korean brand that has grown rapidly and become very popular in the past few years Even
though it's 4-5 times more expensive than Mama.

Collaborators
Mama has many distributors across the country. you can be found in small shops
convenience store mall Supermarkets, restaurants, etc. Mama's partners are numerous.
because the company supports various activities for a long time. Therefore, it is a way to
find partners and create good marketing.

Climate

SWOT Analysis

Strengths: It describes what an organization excels at and what separates it from the
competition as following;

 Strong brand and company profile.

 Loyal customer base.
 Quality of the product that gives an advantage over other competitors.
 More flavors than other brands.
 Leaders who keep bringing innovation to the new products.
 There are efficient distribution channels and coverage throughout the country.

Weaknesses: It stops an organization from performing at its best level. These are the
areas that organizations need to improve in order to remain competitive.

 It is difficult to adjust the price to match the cost price as a market leader.
 Indifference compared to competitors' products.
 There are no products to support the premium customer base.
 It was viewed as food for the underprivileged because of its low price and dated
packaging.

Opportunities: It refer to favorable external factors that represent potential growth or

improvement areas for a business:

 Nowadays, consumers are becoming more health conscious. Therefore, it is an

opportunity to develop products to meet the needs of consumers.
  Satisfying and delicious products are not enough. Because the market trend is the
benefit and the premium character of the product that customers will receive as
well.

Threats: It refers to the factors that have the potential to harm an organization.

 Competitors like Brand Wai Wai, Yum Yum and Korean instant noodles Start
doing more aggressive marketing while Mama focuses on reactive marketing.
 At present, raw materials have higher prices such as wheat flour and oil, resulting
in higher production costs. It's difficult to adjust the price.
 The government is open to allow competitors from abroad to bring their products
to market immediately without having to go through the Thai FDA.
 Being a market leader is a target to take market share from both domestic and
foreign competitors.

PEST Analysis

*** Bases on information analysis, Mama plans to create a new product with a SEA
FOOD Flavor and expand the target market to include Thai consumers of all ages
who are interested in the flavor and personality of the high-end food. ***

หากจะพูดถึงส่ วนแบ่งทางการตลาดของบะหมี่ก่ ึงสำเร็จรู ปในปี 2565 จากการสำรวจพบว่ามาม่ายังถือครองส่ วนแบ่งกว่า

ร้อยละ 45 รองลงมาคือไวไว ร้อยละ 24 และยำยำร้อยละ 22 ซึ่งตลาดบะหมี่ก่ ึงสำเร็จรู ปยังโตต่อเนื่องจากวิกฤตทางเศรษฐกิจ มี
อัตราการเติบโตเฉลี่ยร้อยละ 3-4 ต่อปี และมีการบริ โภคโดยรวมของคนไทยอยูท่ ี่ 3,700 ล้านซองต่อปี ตกอยูท่ ี่คนละ 1 ซองต่อวัน
เลยทีเดียว (Kritanan Ditbunchong, 20 June 2022)

https://themodernist.in.th/noodle-thailand2021/

https://www.brandbuffet.in.th/2022/08/tfmama-reported-net-profit-decreasing-in-
first-half-2022/