Hảo Hảo FINAL
Hảo Hảo FINAL
CHAPTER 1. INTRODUCTION..............................................................................................1
BUSINESS INTRODUCTION – ACECOOK GROUP.................................................1
1. Business overview – Acecook group:.....................................................................................1
2. History of formation......................................................................................................................1
3. The main products..........................................................................................................................2
PRODUCT INTRODUCTION - HAO HAO BRAND...................................................2
1. Origin..................................................................................................................................................2
2. Brand positioning...........................................................................................................................3
CHAPTER 2. CASESTUDY: COMMUNICATION CRISIS OF HAO HAO...4
1. Overview............................................................................................................................................4
1.1. Summary of crisis developments:.........................................................................................4
1.2. Determining the impact and scope of the crisis...............................................................4
2. Analyze Acecook's media crisis management plan...........................................................5
2.1. Determination of objectives and public objects of the communication plan.......5
2.2. Specific actions & Specific Evidence.................................................................................6
2.3. Strategy and tactics...................................................................................................................11
2.4. Associated Actions...................................................................................................................13
2.5. Appoint a spokesperson..........................................................................................................14
2.6. Public Reaction..........................................................................................................................15
3 .Evaluation of the Crisis and Acecook's Crisis Management........................................16
4..Lessons Learned............................................................................................................................17
TÀI LIỆU THAM KHẢO..............................................................................................................18
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CHAPTER 1. INTRODUCTION
BUSINESS INTRODUCTION – ACECOOK GROUP
1. Business overview – Acecook group:
Acecook Group (Acecook Co, Ltd.) is a multinational corporation headquartered in
Suita, Osaka, Japan. Established on January 20, 1954, Acecook specializes in manufacturing and
supplying instant noodles, spices and foods globally. Owning 2 foreign subsidiaries (Vietnam and
Myanmar), the brand is currently present in 47 countries, of which the most success is in the
Vietnamese market.
Slogan: Cook happiness - Through the company's products, we want to create products
that bring joy, surprise and a feeling of peace of mind and happiness to consumers.
2. History of formation
Early stage:
Acecook started by establishing Umeshin Confectionery Co., Ltd. with soft biscuit
products in 1954. In the years after the war, to solve the food shortage and immediately meet the
urgent needs of the people, the company decided to expand the potential instant noodle segment,
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launching Beijing Ramen instant noodles (1959) and instant wonton noodles (1963). In 1964, the
company changed its name to Acecook Group as it is today.
In 2014, to celebrate the company's 60th anniversary, Acecook Group opened its second
branch in Myanmar and invested in completing a new production factory.
In fact, Vietnam is Acecook's strongest export base abroad, exporting to more than 40
countries around the world, including Southeast Asia, capturing difficult markets in Europe and the
United States. Meanwhile in the home country, Acecook Japan exports to about 20 countries,
including the United States, Hong Kong and Taiwan.
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popular with Vietnamese consumers. , becoming a familiar product to consumers in both urban and
rural areas. Up to now, Hao Hao has launched many diverse noodle lines including: Hao Hao spicy
and sour shrimp, Hao Hao Purple Onion Satay, Hao Hao fried garlic pork ribs, Hao Hao fried
noodles with shrimp and onion flavor , Hao Hao fried noodles with sweet and sour shrimp flavor,...
Currently, Hao Hao is holding the position of the leading instant noodle brand in Vietnam
focusing on the mid-range segment, Hao Hao's products have also been exported to more than 40
countries around the world. According to the 6th annual Brand Footprint report conducted by Kantar
Worldpanel, in 2018, Hao Hao noodles officially entered the top 1 "Most chosen fast-moving
consumer brand" in Vietnam in the food industry in Vietnam. area of four major cities (Ho Chi
Minh City, Hanoi, Da Nang, Can Tho). Acecook's Hao Hao noodles product has set a Vietnamese
record with 30 billion packages consumed in 21 years, from 2000 to 2021. At its peak, Acecook
with Hao Hao noodles occupied nearly 50% of the market share. However, in recent years,
Acecook's market share has only been 35%.
2. Brand positioning
Based on differentiation:
Acecook Vietnam has the principle of "always producing and providing delicious,
quality, safe and secure products, meeting customer needs" through "using advanced production
techniques". made in Japan, machinery and equipment ensure quality and strictly manage the
production process."
Based on that principle, Hao Hao positions itself differently from other noodle brands
on the market through the slogan "Japanese quality for delicious meals". Manufactured according to
Japanese standards and technology, with continuous and meticulous management, support and
supervision of Japanese human resources and a well-trained Vietnamese staff at Acecook itself. is a
guarantee for the quality of each package of Hao Hao noodles before being released to the market.
This is also the principle that helps the Hao Hao noodle brand always be a safe, quality and suitable
choice for Vietnamese consumers since its launch in 2000.
Based on price:
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Hao Hao does not position itself as a high-end noodle brand. Closely attached to
millions of Vietnamese people for many generations, Hao Hao has been present in the daily lives of
every family, from frugal kitchens to sumptuous parties, from simple thatched houses to Modern
office buildings, from remote countryside to bustling cities. After nearly 20 years of development,
the price of today's noodle packages on the market is only 4,200 VND, a cheap price, suitable for
consumers' budgets.
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Acecook Vietnam's brand reputation has been damaged due to concerns about product
safety, leading to a less favorable perception among consumers. This has resulted in a loss of
customer trust, causing consumers to hesitate to purchase their products, affecting loyalty. The
negative public perception of Acecook has also led to decreased consumer confidence and
reluctance to buy their products. Leading to have severe financial consequences, including
decreased sales, potential costs for product recalls, regulatory fines, and efforts to rebuild trust.
Impact:
Target audience
Consumer Groups:
The consumer public group targeted in the plan is Vietnamese consumers, foreigners (EU)
and foreigners living in Vietnam.
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- In terms of gender: including both men and women, male customers are more likely to
use Hao Hao noodles than female customers (60% and 40%)
- In terms of age: all customers have the need to use Hao Hao noodles. However, the
customers that Hao Hao targets are from 6-35 years old.
- Occupation: target customers are students, office workers, employees.
- Income: aimed at customers with an income of 1-5 million/month.
- Reason: customers have in common that they do not have much time to cook as well as
prefer items with moderate prices for income reasons.
Instant noodles are a popular and essential item, used daily, consumed quickly, with a wide
distribution network, easily serving consumers of all ages and conditions. The program will
implement tactics such as advertising, promotions, etc., to attract the attention of this large public
group to both increase market share and boost company revenue. Additionally, the program will
focus specifically on the loyal and passionate consumer group of Hảo Hảo to enhance the program's
effectiveness, as this group will always support Acecook even during crises and rumors about the
company's products and services.
The program will also target the press and media public group through articles, images,
reports, and organizing press conferences to correct rumors in major newspapers or television
channels. With the support of this public group, the brand will strongly impact consumer
psychology, reduce confusion, and reassure public opinion. Through this, the company hopes to
restore consumer and investor trust, contributing to making the brand more popular and creating a
special appeal. If done well, it can attract more distributors and diversify distribution methods to
make Hảo Hảo products more approachable.
Company Employees
Company employees are also a public group that needs to be targeted because they are the
decisive factor affecting the program's outcome and the company's activities and image. Employees
are the company's internal customers, the first group to work with when a crisis begins to emerge.
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2.2. Specific actions & Specific Evidence
One day after the announcement from the FSAI, Acecook held a press conference to
inform consumers, confirming that the two products, Hảo Hảo vermicelli and spicy shrimp noodles
produced by this company, were indeed recalled by the Irish Food Safety Authority for containing
banned substances.
Apology to customers and the public.
Acecook's press release: "The above-mentioned products are export items, specifically for
the European market, not domestic products. Acecook guarantees that all products circulating in
the Vietnamese market comply with Vietnamese regulations and laws, ensuring consumer health
safety."
Acecook also emphasized that it has worked with ingredient suppliers, who confirmed that
Ethylene Oxide (EO) is not used in their production processes. On the morning of August 28, the
Ministry of Industry and Trade requested Acecook Vietnam to urgently report on its production
process and clarify the differences between the domestic and export batches of the two products to
assess the presence of Ethylene Oxide.
Additionally, Acecook affirmed absolute compliance with regulations (from Vietnam,
Europe, Japan, Australia, and New Zealand) regarding the non-use of EO at any stage of ingredient
preservation, production, or storage. Acecook is currently analyzing, inspecting, investigating, and
working with ingredient suppliers to quickly determine the cause.
Explaining the reason for the recall of the two batches in the EU due to the substance 2-
CE: firstly, because their regulations combine EO and 2-CE into one category; secondly, explaining
that the presence of this substance was due to a supplier using EO for sterilizing some ingredients.
Acecook expressed its clear understanding of its mission, role, and influence in the market
and extended gratitude and thanks to customers for their trust and support of Acecook.
Specific evidence
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Evidence for the recall in Ireland
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Results of testing EO and 2-CE in domestic products::
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Results of testing EO and 2-CE in products exported to the EU:
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2.3. Strategy and tactics
Time
Purpose Strategy Tactics
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Press release and letter to customers
declaring there is ABSOLUTELY NO
ETHYLENE OXIDE (EO) IN THE
12/09/2021
PRODUCT HAO HAO DOMESTIC
SPICY AND SURGERY SHRIMP
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create goodwill 02/2022 Children's Fund to organize the
for long-term + program "Music Box - Give
cooperation. 03/2022 excitement, create love"
Raised 1.2 billion VND, hand-delivered
gifts to children affected by the
pandemic in Thanh Hoa, Binh Duong
and Tien Giang provinces
-Awarded to the Vietnam National
Women's Football Team with a bonus
of Five hundred million VND and 1
year of free Hao Hao noodles
2.4. Associated Actions
Cease exports to European countries
When the incident occurred in the European Union market, Acecook Vietnam implemented a
temporary solution by suspending exports to the EU market. Simultaneously, the company engaged
with distributors in EU countries regarding halting shipments of products that do not meet EU
standards for EO and 2-CE (a metabolite of EO). Acecook also committed to strictly fulfilling its
responsibilities as a manufacturer and cooperating with distributors to carry out recalls as required
by regulatory authorities in the affected countries.
Require all suppliers to strictly commit to not using EO for disinfection.
Based on Acecook Vietnam's initial verification, some of its suppliers had used EO for
disinfection in certain raw materials. Additionally, analysis of supplier materials detected trace
amounts of 2-CE. Therefore, Acecook concluded that this might have contributed to the EU's
determination that the company's products did not comply with its market regulations. Immediately
thereafter, Acecook re-engaged with suppliers, insisting on their absolute commitment to refrain
from using EO for disinfection. They also pledged to further tighten controls over raw materials,
production processes, and distribution both domestically and internationally to prevent similar
incidents.
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Provide evidence of testing results for 2-CE, EO of domestic and export products.
Acecook Vietnam proactively sampled some domestically consumed and exported products
for testing at Eurofins Analytical Center - a leading global scientific group specializing in food
testing. Eurofins operates a network of over 1,000 independent companies in more than 50
countries, managing more than 900 laboratories worldwide.
Their test results indicated that domestically consumed "Hao Hao Spicy Shrimp Flavor
Noodles" did not contain EO (with detection limits at 0.003 mg/kg) but did contain a small amount
of 2-chloroethanol (2-CE, a metabolite of EO) at 1.17 mg/kg. According to Acecook Vietnam, the
level of 2-CE in "Hao Hao Spicy Shrimp Flavor Noodles" was significantly lower than the standards
of the US, Canada (940 mg/kg), and some other countries. Therefore, Acecook Vietnam affirmed
that the domestically sold "Hao Hao Spicy Shrimp Flavor Noodles" fully complied with Vietnamese
legal standards, ensuring consumer safety.
As for export products, Acecook Vietnam's testing revealed the presence of 2-CE, with "Hao
Hao Spicy Shrimp Flavor Noodles" at 0.62 mg/kg and "Good Noodles" at 5.98 mg/kg - prompting
some European countries to issue warnings and request the recall of certain batches. Acecook
Vietnam stated that these levels were much lower than the standards of the US, Canada (940
mg/kg), and several other countries..
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public panic. Following FSAI, the Maltese Health Authorities also issued warnings against using
"Hao Hao Spicy Shrimp Flavor Noodles" due to potential contamination. Adding fuel to the fire,
Vietnam's Ministry of Industry and Trade confirmed the recall orders and urgently requested
Acecook to report on the production processes of these products.
Numerous large online groups with millions of members spread information and
advised consumers. The public was alarmed upon receiving news of harmful substances in a popular
domestic product. Netizens widely shared and reacted strongly, demanding a boycott of "Hao Hao"
noodles domestically.
Just one day later, Acecook held a press conference to clarify the situation and
reassure the public. The company admitted the truth of the rumors that "Hao Hao Spicy Shrimp
Flavor Noodles" were recalled in Ireland. However, "Hao Hao" continued to receive positive
feedback and regained customer trust on social media platforms.
Some newspapers and online platforms began discussing regulations on the level
of Ethylene Oxide (EO). Each country has different regulations on EO levels in food; for example,
Europe sets a limit of not exceeding 0.1 mg/kg, Canada allows up to 500 mg/kg. Asian countries
like India, China, South Korea, and Vietnam have not yet established regulations on EO levels in
food.
However, there still lingered some anxiety among certain segments of the public.
Overall, the incident subsided, but the brand's image was somewhat affected.
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3. Evaluation of the Crisis and Acecook's Crisis Management
Advantages:
A bright spot for Acecook is their compliance and active cooperation with
relevant parties and authorities during the investigation and product testing process. This partly
calmed public opinion and reassured consumers while awaiting product testing results,
demonstrating professionalism in handling the communication of a longstanding brand.
The communication message in press releases was reasonable and tailored to the
relevant audience groups, including reassurance, apologies, affirmations, evidence presentation, and
explanations of the issues.
Decisive and smart actions were taken by providing evidence of Acecook's
product testing and announcing the temporary halt of exports to affected markets, along with re-
engaging with authorized agencies.
Commitments were made to tighten control over the supply chain, production
processes, and distribution of products both domestically and internationally. Acecook affirmed
absolute adherence to regulations (in Vietnam, Europe, Japan, Australia, New Zealand, etc.)
regarding the non-use of EO in any stage of the raw material preservation-production-storage
process.
Disadvantages:
The enterprise, as a manufacturer, also bore responsibility stemming from
insufficient consideration of consumer psychology and rights. It took a whole week after the recall
notice from Ireland, and subsequently, Amazon UK and Germany had to issue product recall letters
before Acecook responded with clarifications. Failing to proactively issue an explanation and
declare a resolution strategy from the outset, the company overlooked an important aspect of
communication management. They did not take necessary measures to control and anticipate the
crisis in a timely manner, allowing the media to discover and publish objectively, which amplified
the "fear factor" and spread the issue.
Furthermore, after issuing clarifications, Acecook did not undertake any post-
crisis communication activities emphasizing the standard quality of "Hao Hao" noodles to enhance
customer confidence. If the company only asserted product quality during the crisis without
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reiterating any commitments afterward, consumers may still not be completely reassured or might
perceive Acecook's previous statements as mere attempts to suppress public opinion.
4. Lessons Learned
Prompt Response:
- It is crucial to provide a quick response to information to prevent users from
being alarmed or worried about daily consumer product components. Businesses should issue
announcements and plans to investigate and clarify the reasons within a short period with fully
verified information.
- Reassure the domestic market by affirming that EO is not present in batches of
products consumed domestically.
Reassuring the Public:
- Commit to product quality, ensuring that products are truly safe for consumers,
and promise customers that the company has been, is, and will continue to tighten control over raw
materials, production processes, and product distribution both domestically and internationally.
- Provide evidence confirming that the substance found in the batch was 2-CE, not
EO. However, the levels of 2-CE in products such as "Hao Hao" and "Good Noodles" were very
low, at 0.62 ppm and 5.98 ppm respectively, much lower than the standards of the US (940 ppm),
Canada (940 ppm), and some other countries.
- After testing for EO levels in "Hao Hao" noodles, Acecook presented evidence
that EO and 2-CE levels in the noodles were significantly lower than the standards of European
countries. They partnered with Eurofins Analytical Center, a leading global scientific group, to
enhance the company's credibility.
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Market Adaptation Flexibility:
CONCLUSION
During the process of building and developing a brand, businesses inevitably face certain
crises in communication. This is an issue no enterprise desires to encounter, yet it is an essential law
of market economics. With the current technological advancement, the speed of information
dissemination through media channels and social networks is stronger than ever before. Alongside
its positive aspects, these factors also pose significant threats to businesses in terms of potential
communication crises, leading to immense damage to their brand and financial strength, and in
extreme cases, even bankruptcy and dissolution. Therefore, businesses must always be prepared to
confront inherent risks and pay particular attention to developing crisis management measures and
strategies for brand recovery and business operations. This research helps businesses be more
proactive in handling negative information to minimize unwarranted risks while aiming for
sustainable development.
Through analyzing crisis management plans for the "Hao Hao" noodle brand of Acecook, it is
evident that rather than focusing on assigning blame, businesses must handle communication crises
with effective responses. It is not merely about issuing apologies but more importantly,
demonstrating sincerity and a willingness to learn. Businesses need not only to rectify mistakes but
also to better meet the demands of consumers and the market.
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