MARKETING PLAN FOR KOIKEYA COMPANYS KARAMUCHO POTATO SNACK IN VIETNAM MARKET

THE MINISTRY OF FINANCE THE UNIVERSITY OF FINANCE MARKETING MARKETING DEPARTMENT CLASS: CLC-19DMA07 MARKETING MANAGEMENT MARKETING PLAN FOR KOIKEYA COMPANY'S KARAMUCHO POTATO SNACK IN VIETNAM MARKET HO CHI MINH CITY, 2021 0 THE MINISTRY OF FINANCE THE UNIVERSITY OF FINANCE MARKETING MARKETING DEPARTMENT CLASS: CLC-19DMA07 MARKETING MANAGEMENT MARKETING PLAN FOR KOIKEYA COMPANY'S KARAMUCHO POTATO SNACK IN VIETNAM MARKET Captain: NGUYEN TRAN BAO NGHI Phone number: 0983.026.083 Email: baonghinguyen11072001@gmail.com HO CHI MINH CITY, 2021 0 COMMENT OF THE PRACTICE GUILINES TRAINER i 0 TABLE OF CONTENT Executive Summary Introduction .2 SWOT & Macro - Environment Analysis 3.1 SWOT model company analysis 3.2 Market summary 3.2.1 Overview of snack market in Vietnam 3.2.2 Macro - Environment Analysis 3.2.3 SWOT model of Karamucho potato snack 3.3 Segmentation & positioning strategy 4.1 Segmentation 4.2 Targeting .9 4.2.1 Target customers: 4.2.2 Potential customers: 10 4.3 Competitors Positioning 10 Marketing Mix Strategies 11 5.1 Product 11 5.2 Pricing 12 5.3 Place 12 5.4 Promotion 12 5.4.1 Advertising: .12 5.4.2 Sales promotion 12 5.4.3 Direct Marketing : .13 5.4.4 Event and experience 13 5.4.5 Public relations 14 Action plan 14 Conclusion .18 7.1 Implementation 18 7.2 Marketing Organization 18 7.3 Contingency Planning 19 ii 0 LIST OF TABLES Table 1.1: Introduction of Karamucho Table 2.1: SWOT model company analysis Table 2.2: SWOT model of Karamucho potato snack Table 3.1: Karamucho Market Segment table Table 5.1: Stage 1: New product development and brand awareness .14 Table 5.2: Stage 2: Building and developing the brand 16 Table 5.3: Stage 3: Capture market share and make a profit 17 iii 0 LIST OF FIGURES Figure 3.1: Snack group revenue diagram over the years Figure 3.2: Karamucho's market share and competitors in Vietnam market (Source: Koikeya) (Data as of December 2020) .8 Figure 4.1: Karamucho positioning diagram in VietNam snack market (The author's selfsuggested model) 10 Figure 5.1: The authors' proposal to change the packaging of karamucho potato snacks 11 Figure 5.2: Illustration for paper towel gifts when using Karamucho potato snack .13 Figure 7.1: Marketing Organization of Karamucho 19 iv 0 REPORT Executive Summary One of the food and beverage industries is the snack industry The demand for snacks tends to increase over the years According to a Nielsen report, 13,000 billion VND spent on snacks each month by Vietnamese youth is a statistic that all businesses must really pay attention to Junk food is considered a potential market for businesses to exploit in Vietnam Vietnamese snacks are rich and diverse, with attractive flavors and relatively cheap prices, attracting many customers, especially young people Dishes like chicken wings, potato chips, etc are selling well Fast, convenient, affordable has opened up new experiences for young people and helped foreign snack brands increasingly dominate the Vietnamese market Recognizing the potential market in Vietnam, we have proposed a Marketing plan for the new Karamucho potato snack product, which is about to hit the market To ensure the success of the new Karamucho potato snack product line, a detailed Marketing plan is needed to develop the right marketing strategy to bring Karamucho potato chips to the vast majority of consumers Vietnam In the Marketing plan, we use the SWOT model to analyze the internal environment of the company, as well as to analyze the products that the company has produced before and see the competitors in Vietnam, which is in the snack food market to create differentiating strategies that competitors offer In addition, we also offer STP strategies to segment, select target markets and position our products Next, we will propose a Marketing Mix 4P strategy and create an action plan in each stage for product development and distribution to consumers In addition, budgeting for the Marketing plan helps us to control the cost of the company and ensure that the Marketing Plan goes on schedule 0 Introduction Table 2.1: Introduction of Karamucho About us Company Information Name: Koikeya Vietnam Co Ltd Location: N3-2 Street, Long Duc Industrial Park, Long Duc Commune, Long Thành District, Dong Nai Province, Viet Nam Field: Manufacturing and sales of snack foods and healthy foods (potato chips, corn snack, etc.) Karamucho snack information History and development: Karamucho is a long-standing spicy snack brand of Koikeya that was launched in 1984 in Japan Up to now, KARAMUCHO has had a history of development for more than 30 years in Japan, but the fever of the name KARAMUCHO as well as the signature spicy products of this brand still captures the hearts of all consumers With a remarkable development momentum, Karamucho is now present in many countries around the world such as Belgium, Hong Kong, Taiwan, Thailand and most recently, it has been on the Vietnamese market for years Types of product: KARAMUCHO Potato Strong Tokyo BBQ flavour KARAMUCHO Potato Strong Hot Spicy flavor KARAMUCHO Potato Spicy Seaweed flavor KARAMUCHO Potato Hot spicy flavor KARAMUCHO Corn Hot spicy flavor Brand character: KARAMUCHO’s brand character is Tomi-chan from Japan In spite 0 of her age, Tomi-chan always keeps the young spirit and lives to the fullest She loves to travel, explore new things, wear colorful clothes and especially word-play Accompanying Tomi-chan are Chi-chan and Doraemon, who are close friends from Vietnam Mission With advanced manufacturing technology and top experts from Japan, Karamucho is proud to carry its mission of providing premium products to the customers that are the original, flavorful taste, especially the hot spicy flavor which is like no other existing snacks in the market before Ultimately, those products are about enjoying life, connecting family and friends, and cheering the loving moments together Vision In the future, Karamucho at the same time to expand the distribution network in order to introduce the Japanese authentic, original taste to more potential customers.am wishes to diversify the KARAMUCHO product range to develop more new and attractive flavors Strategic - Develop some new product flavors suitable for Vietnamese people in the next months Objectives - 80% of customers in the target market know about Karamucho potato snacks - Achieve a high level of customer satisfaction, approximately 95% of the target customers - 25% profit on total invested capital within one year 0 SWOT & Macro - Environment Analysis 3.1 SWOT model company analysis Table 3.2: SWOT model company analysis Strength - - Weakness As a long-standing snack company - Snacks are not a necessity, not and a famous brand in Japan serve the essential needs of people, Having relationships with foreign and there are many other products to companies is quite wide, such as the use instead, so people's purchasing USA, Taiwan, Canada, Singapore, power decreases, which will impact Thailand, Malaysia, China, on the decline of the company's Development cooperation with revenue many major suppliers and - Every year the Company has to distributors in Vietnam such as BigC, import some raw materials for Coop mart, production such as flour, flavoring, milk powder Therefore, when the exchange rate fluctuates, input costs change, affecting the production and business results of the company - The company's brand in Vietnam is not known to many people Opportunity - - Threat - Vietnam's economy in recent years When Vietnam joins AFTA, the has grown by 7-8% per year, this import tax rate for confectionery will stimulate people's demand for products will be reduced The selling consumption, which will be an price of these products may be more opportunity for Koikeya to grow its competitive, thus affecting the business Company's business - "Young people aged 15-23 are Imported raw materials and raw snacking all day long," Decision sugar account for about 20% of the Lab's recent report said about the Company's product cost Therefore, trend of young people going out to changes in import-related circulars 0 GEOGRAPHIC OCCUPATION Students, office workers GENDER Male, Female GENERATION Gen Z, Gen X FAMILY LIFE CYCLE Married, single REGION North, Central, South of Vietnam PSYCHOGRAPHIC DENSITY Urban, rural LIFESTYLE Young, dynamic, modern, interested in quality, and loves Japan 4.2 Targeting According to a recent report by Decision Lab, the trend of snacking among young people has been identified as "Young people aged 15-23 are snacking all day." So the target market that Karamucho's snacks are targeting is the demographic segment 4.2.1 Target customers: Age: 15-23 years old Gender: 20% male, 80% female Occupation: 80% students, other 20% 4.2.2 Potential customers: Age: 24-32 Family life cycle: 50% Single, 50% Married 0 4.3 Positioning Figure 4.3: Karamucho positioning diagram in VietNam snack market (The author's self-suggested model) - From the above positioning map, it can be seen that: About price: Karamucho snack is on par with Lays snack - a snack brand that has appeared for a long time in the Vietnamese market Besides, although it has only appeared on the Vietnamese market for nearly years, the price of Karamucho is still too expensive compared to three competitors Oishi, Ostar and Toonies About the spicy flavor attribute: As a famous spicy snack brand in the Japanese market, its spicy flavor is superior to the spicy product lines of rival companies → Therefore, we need to promote the positioning strategy for Karamucho snacks by product attributes to expand market share and increase brand awareness of consumers Positioning strategy: Positioning by product attributes: When it comes to Karamucho snacks, consumers will immediately think of the special spicy flavor that the product brings 10 0 Marketing Mix Strategies 5.1 Product - Improve product variety size + Should develop more spicy potato snacks with low calories for dieters, or for consumers with diseases that consume less fat such as obesity, blood fat, etc + Add new flavors such as Potato Snack with Rib Rice, Potato Snack with Fried Chicken, Potato Snack with Tomato Flavor, + Improved shape of potato cakes Potato snacks Karamucho mostly have a very monotonous shape, looking very boring to consumers Therefore, the product shape should be improved Ex: Potato thread, spiral potato, Doraemon, Tomichan, - Proposal to change the packaging + Combining putting Tomichan on the packaging, the characters join hands, showing the spirit of solidarity and close friendship Figure 5.4: The authors' proposal to change the packaging of karamucho potato snacks +Emphasizing that this is a product created by the Japanese, and the Japanese are very concerned about personal health, so potato cakes will be somewhat inclined to protect consumers' health Therefore, the product should be imprinted with a health safety certificate from the Ministry of Health, thereby helping consumers feel more secure when using Karamucho potato chips 11 0 5.2 Pricing Cost-based pricing: Based on the break-even point and the cost of production for a unit of product to calculate the cost of a unit of product (Details are in the Appendix) 5.3 Place - Distributing at convenience stores such as: Coop Smile, GS25, Family Mart, near schools - Increase distribution at grocery stores so that products can reach more customers, expand the scale of products - Distributed to amusement parks, gyms, - Snack Karamucho should be displayed at eye-level positions with customers such as cash registers, on third or fourth shelves, - Add more distribution location: It is distributed to the canteens of boarding schools (Signed with the school) (May be for meals) 5.4 Distribution on e-commerce platforms Promotion Karamucho potato snacks will take advantage of all five components of the promotional mix: advertising, sales promotion, event and experiences, public relations, and direct marketing By blending all five components we will create effective and integrated marketing communications (IMC) Because we are a new product, we must start out with a strong IMC to ensure market penetration 5.4.1 Advertising: - Place electronic billboards at roundabouts or red light stops - Advertise on TV at the time frames where customers have a snack such as from am to 11 am, from pm to pm - Advertising on social networking platforms such as Facebook, TikTok, Instagram, Youtube (Snack review and advertising on food video clips with recipes combined with Snack Karamucho) 5.4.2 Sales promotion - Comes with small tissue in the snack bag (worth less than 1,000 VND) to solve the real problem (after eating snacks, get dirty hands), we'll meet customer needs, help 12 0 customers see the thoughtfulness and originality of Japanese products, in order to ensure hygiene before and after eating + Tomichan photo tissue paper packaging with a thank you note when using the product - Winning scratch cards (winning phone scratch cards, winning Doraemon teddy bears, Tomichan, funny puzzles, collecting scratch cards to win gifts, ) Figure 5.5: Illustration for paper towel gifts when using Karamucho potato snack 5.4.3 Direct Marketing : - Marketers give the product to students to try the product at the school gate, maybe combine some games at the marketing place to attract students / students and impress the product - Marketers market to customers at supermarkets, cinemas, amusement parks + Time: days/place + Number of marketing staff: 2-4 employees/location + Appearance: Beautifully decorated mini stall/stroller +Game poster + Method: Hand out a sample snack on a plate (~2 pieces/person) + Quantity: At location (Total locations can be considered) ~ 50 packs of size 44g ~ 500 users try the product - Content: Let customers try the product, introduce the product, introduce the point of sale - Requirements: Products need to be available at stores near the marketing location - Text customers gmail about newly launched products 5.4.4 Event and experience - Sponsorship for game show programs Ex: Food programs, children's programs, - Collaborate with influencers to review the Karamucho potato snack experience - Open "Vietnam Japan Festival" for customers to take pictures with Japanese Kimono 13 0 and introduce products 5.4.5 Public relations - Organize charity activities towards the community and society, especially for disadvantaged children - Organize health counseling seminars - Write PR articles in gourmet magazines In summary, all five of these tools are important when it comes to creating an effective promotional strategy As a new product our funds for promotion are quite limited, but hopefully as we expand and become more profitable we will also be able to expand our promotions as well Action plan Divided into stages Stage 1: New product development and brand awareness Table 6.5: Stage 1: New product development and brand awareness Content Stage Time New product development months (From the and brand awareness beginning of July 2021 to the end of August 2021) - Complete the Before July 1, 2021 Marketing plan and Plan prepare to launch new products - Launching new products such as Potato Snack with Ribs Rice, Fried Chicken, Doraemonshaped Potato Snack, Spiral Potato Snack at retail locations 14 0 July 15, 2021 3.2.2.4 Social and cultural environment Like technological changes, social change also creates opportunities and threats to a business and the obvious tendency is health According to Maslow's scale of needs, when people satisfy the lowest needs from eating, wearing, sleeping, then a new higher need is born that is the need for safety and security When people's income is improved, but basic needs of life are met, people's needs also change to a higher direction In the past, when the income was low, eating only to be full, now eating is not only full but also good for health, snacking not only satisfies hunger, but the products used must also be of quality and safe This is a strong Understanding this consumer market trend, along growth opportunity for the snack market with advertising and promotion strategies for safe and healthy products, will bring success to businesses 3.2.3 SWOT model of Karamucho potato snack Table 3.3: SWOT model of Karamucho potato snack Strength - Weakness Is the number product in Japan - Products are only distributed in Nhật certain places, making it difficult for - It is a product made from potatoes customers to find and buy - As a convenient product (easy-to- - open packaging) Promotion is not really effective, not many people know and use it - There are many price options - High price compared to the ground - Rich taste - Poor brand awareness Opportunity Threat + The trend of developing fast food and + Difficulty in expanding the market entertainment food is gradually increasing in + Being competed by many strong competitors such as Lays, O'star, Oishi, etc Vietnam + High demand for entertainment, many common malls, movie theaters, grocery stores, … results in high demand for snacks + Effective marketing opportunities on the Internet platform during Pandemic 0 3.3 Competitors Figure 3.2: Karamucho's market share and competitors in Vietnam market (Source: Koikeya) (Data as of December 2020) The snack market segment can be divided into main categories based on processed ingredients: Chips, nuts, and processed snacks with other ingredients such as fruit or starch The revenue structure by product in Vietnam is clearly divided, processed snacks accounted for 33&, nuts accounted for 30%, and potatoes accounted for 24% Karamucho is a potato chip snack Oishi - a brand of Liwayway (Philippines) company In the potato chip snack segment, there is with diverse products in ingredients such as: Seafood, corn, pumpkin, from sweet to salty Currently, Liwayway is holding market share the largest: 53% Oishi has become a familiar brand, occupying a high position in the hearts of Vietnamese consumers PepsiCo's Poca, by 2019, was changed to Lay's brand to share the same name with the world, ranked 3rd on the market share table with 16% Born at the same time as Poca, Orion's O'star brand (Korea) and later Toonies is currently the "ACE" of Orion in the market accounted for 22% market share 4.1 Segmentation & positioning strategy Segmentation Table 4.4: Karamucho Market Segment table SEGMENTATION DEMOGRAPHIC AGE 12-35 years old 0 GEOGRAPHIC OCCUPATION Students, office workers GENDER Male, Female GENERATION Gen Z, Gen X FAMILY LIFE CYCLE Married, single REGION North, Central, South of Vietnam PSYCHOGRAPHIC DENSITY Urban, rural LIFESTYLE Young, dynamic, modern, interested in quality, and loves Japan 4.2 Targeting According to a recent report by Decision Lab, the trend of snacking among young people has been identified as "Young people aged 15-23 are snacking all day." So the target market that Karamucho's snacks are targeting is the demographic segment 4.2.1 Target customers: Age: 15-23 years old Gender: 20% male, 80% female Occupation: 80% students, other 20% 4.2.2 Potential customers: Age: 24-32 Family life cycle: 50% Single, 50% Married 0 4.3 Positioning 0 Figure 4.3: Karamucho positioning diagram in VietNam snack market (The author's self-suggested model) - From the above positioning map, it can be seen that: About price: Karamucho snack is on par with Lays snack - a snack brand that has appeared for a long time in the Vietnamese market Besides, although it has only appeared on the Vietnamese market for nearly years, the price of Karamucho is still too expensive compared to three competitors Oishi, Ostar and Toonies About the spicy flavor attribute: As a famous spicy snack brand in the Japanese market, its spicy flavor is superior to the spicy product lines of rival companies → Therefore, we need to promote the positioning strategy for Karamucho snacks by product attributes to expand market share and increase brand awareness of consumers Positioning strategy: Positioning by product attributes: When it comes to Karamucho snacks, consumers will immediately think of the special spicy flavor that the product brings 10 0 Marketing Mix Strategies 5.1 Product - Improve product variety size + Should develop more spicy potato snacks with low calories for dieters, or for consumers with diseases that consume less fat such as obesity, blood fat, etc + Add new flavors such as Potato Snack with Rib Rice, Potato Snack with Fried Chicken, Potato Snack with Tomato Flavor, + Improved shape of potato cakes Potato snacks Karamucho mostly have a very monotonous shape, looking very boring to consumers Therefore, the product shape should be improved Ex: Potato thread, spiral potato, Doraemon, Tomichan, - Proposal to change the packaging + Combining putting Tomichan on the packaging, the characters join hands, showing 0 the spirit of solidarity and close friendship Figure 5.4: The authors' proposal to change the packaging of karamucho potato snacks +Emphasizing that this is a product created by the Japanese, and the Japanese are very concerned about personal health, so potato cakes will be somewhat inclined to protect consumers' health Therefore, the product should be imprinted with a health safety certificate from the Ministry of Health, thereby helping consumers feel more secure when using Karamucho potato chips 11 0 ...THE MINISTRY OF FINANCE THE UNIVERSITY OF FINANCE MARKETING MARKETING DEPARTMENT CLASS: CLC-19DMA07 MARKETING MANAGEMENT MARKETING PLAN FOR KOIKEYA COMPANY'S KARAMUCHO POTATO SNACK IN VIETNAM MARKET. .. and helped foreign snack brands increasingly dominate the Vietnamese market Recognizing the potential market in Vietnam, we have proposed a Marketing plan for the new Karamucho potato snack product,... sales of the snack market grew by $3.4 billion, while in Vietnam, snack products increased by 21% in 2017 Revenue for the snack market increased by 21% in 2017 The Vietnam Snack market in 2017 reached