Overview

• Our branding and marketing strategies have been instrumental to the success of our business. As at December 31, 2012, our marketing department consisted of more than 80 full-time employees divided into two groups: brand development and market operations.
  

Branding Strategy

• We have adopted an umbrella brand strategy to reach a broad range of consumer groups. Each of our principal product lines has a premium brand ( Chin-su brand for sauces, the Omachi brand for instant noodles and Vinacafe for instant coffee) and a mass-market brand (Nam Ngu brand and Tam Thai Tu for sauces, Sagami and Kokomi for noodles, and Wake Up and Phinn for instant coffee), meeting the demands of customers of different levels of affluence. The introduction of product variants further permits us to sell to consumers in different regions and with varying tastes.
• We actively defend our brands from infringement and reselling by third parties. We also monitor the products of our competitors through our distribution network. Should we learn of material infringement of our trademarks, we will take all necessary steps, including legal action, to protect our brand image.
  
  

Marketing Strategy

•  Our primary means of reaching our target consumers is television advertisements, which are generally 15 or 30 second commercial spots that focus on the health benefits, taste and affordability of our products. Our marketing department works with media agencies to evaluate the number of commercial spots required to effectively market our products and arranges the purchase of applicable time spots nationwide. In 2012, Masan Consumer had more than 52,696 television commercial spots nationwide with an average viewing frequency of 507 times per person.
• Additionally, we market our products with a variety of other activities such as outdoor campaigns and in-store promotion events.
  
  

Product Management Strategy

• Our product management strategy has been fundamental to our success. We manage our current portfolio of brands by product segment and, within each product segment, by target market.
• We have a common branding strategy, for instance, using Chin-su as an umbrella brand for premium soya, fish and chili sauces and Omachi as an umbrella brand for instant noodles. This maximizes the value of our brands, establishes a reputation for premium quality across our products, and generates economies of scale in advertising and promotion.