MARKETING PLANNING FOR PRODUCTS FAMI JELLY OF VINASOY

THE FINANCIAL UNIVERSITY OF FINANCE AND MARKETING FINAL REPORT MARKETING MANAGEMENT MARKETING PLANNING FOR PRODUCTS FAMI JELLY OF VINASOY Teacher advisor: Mr Dang Huynh Phuong Team: ALL STARS Thành phố Hồ Chí Minh - 2021 0 TABLE OF CONTENTS 1.0 EXCUTIVE SUMMARY 2.0 SITUATION ANALYSIS 2.1 Market Summary 2.1.1 Market Demographics 2.1.2 Market Needs 2.1.3 Market Trend 2.1.4 Market Growth 2.2 SWOT Analysis 2.2.1 Strengths 2.2.2 Weaknesses 2.2.3 Opportunities 2.2.4 Threats 2.3 Competition 2.4 Product Offering 2.5 Keys to Success 3.0 MARKETING STRATEGY 3.1 Mission 3.2 Marketing Objectives 3.3 Financial Objectives 3.4 Target Markets 3.5 Positioning 10 3.6 Strategies 11 3.7 Marketing Program 12 3.8 Marketing Reaserch 19 4.0 FINANCIALS 19 4.1 Break-Even Analysis 20 4.2 Expense Forecast 20 5.0 CONTROLS 20 5.1 Implementation 21 5.2 Marketing Organization 21 5.3 Contingency Planning 21 0 FAMI JELLY 1.0 EXCUTIVE SUMMARY Vietnam Soy Milk Company – Vinasoy is a member of Quang Ngai Sugar Joint Stock Company, established in 1997 and specializes in soy nutritional products Vinasoy which has developed for 20 years, is currently the leading company in the paper packaging soy milk industry nationwide with more than 84% market share Vinasoy's product lines focus on dairy products which are called: Fami, Fami Go, Vinasoy To suffie many consumer tastes of a nutritious snack by developing a variety of product lines for all ages, Vinasoy launches a new product called "Fami Jelly" - a soy milk which is softness, pure smoothness, is frozen enough Vinasoy have advantage of equipment which called Vinasoy Bac Ninh Soy Milk Factory, is the most modern and largest soy milk factory in Southeast Asia (area over 61,000m2; equipped with technology of Tetra Pak Group (Sweden)) This is the only system of synchronized soy milk production in Vietnam Vinasoy will initially update the product information about the new product on the company's website The direct method of communication is to use mass advertising such as television, newspapers, social media (content video, KOL-Community Group) Thanks to those tools of advertising, Vinasoy not only could reach every household which is from city and countryside but also attract young consumers As a result, Vinasoy could achieve higher profits and maintain a close relationship with customers Vinasoy will distribute firstly new products at large supermarkets such as Coopmark, BigC, sales chains and small stores In additon, Vinasoy sells its merchandise at convenience stores such as Mini Stop, Circle K, GS25, ect to reach out more consumers who are between 15 and 30 0 2.0 SITUATION ANALYSIS Vinasoy is the market leader in soymilk industry According to Nielsen Vietnam, while the spread of Covid-19, Vinasoy still hold 85% of market share in 2020 The firm’s productivity reached 250 million litters of soy milk last year, which falls for approximately 10% in comparision with the previous year Yearly, Vinasoy’s factory produce more than billion products to serve over 80 million consumer 2.1 Market Summary In the context of the Covid-19 pandemic, Vietnam is one of the few countries in the world with positive economic growth (+2,91%) According to AC Nielsen Vietnam, Vietnam is Top countries6 consume most soy milk in the world Vietnamese consume more than 1,7 million litters of soymilk everyday, of which more than 32% are canned products •Target Markets - Family - Consumer who have interest in healthy diet - Vegetarian 2.1.1 Market Demographics ▪ Geographics5 + The area of Vietnam is 331,212 km² Vietnam is a tropical country with most of the area being hilly terrain (accounting for 3/4 of the territory), most of the area is mainly low hills, and the plain accounts for only 1/4 of the area 0 + Vietnam is divided into regions: North, Central and Southern ▪ Demographics + According to the results of the Vietnam Census in 2019, 55.5% of the population is under 35 years old, with an average life expectancy of nearly 76 years, higher than other countries with similar income in the region But the population is aging rapidly The middle class is forming - currently 13% of the population and expected to reach 26% by 2026 + The per capita income of Vietnamese people is about 3,000 USD/person/year ▪ Behavior factors + Consumer want to buy a healthy option which is organic and less sugar + Consumer tend to use plant-based product instead of diary product + Consumer also want a canned product for covenience and easy to buy in covenient store, supermarket,… 2.1.2 Market Needs Fami Jelly target consumer who have interest in healthy lifestyle and seek to a instant dessert made by soy and low sugar, provide nutrients7 + Healthy product: Consumer want a product which contain low-sugar, organic and provide them nutrients such as Omega-s, Vitamins,… + Convenience, easy to use and buy: Consumer want a easy-to-use product and can buy easily due to their busy life 0 + New healthy dessert: With the taste of cool, smooth, Fami Beancurd could be a good dessert for tropical country like Viet Nam 2.1.3 Market Trend According to market research reports in recent years, consumers are tending to choose healthy and plant-based products They are also interested in limiting the amount of sugar in the product as well as adding essential nutrients Fami Jelly is beancurd which the product that can meet those new trends With ingredients from organic soybeans, non-GMO with high nutrient content (omega, vitamins, minerals, ) At the same time, Fami Jelly is also interested in the amount of sugar in the product In particular, Fami Jelly also has more options to combine with nuts such as walnuts, almonds, chia, to increase the nutritional content Not only that, this is also the first canned beancurd product in Vietnam, which can be easily used and widely distributed throughout the retail locations across the country 2.1.4 Market Growth - The potential of the market is still great for Vinasoy to explore more on the way to conquer the target of billion USD in revenue - The current consumption of branded soymilk products in Vietnam accounts for only 45% of total soy milk consumption, much lower than 70% in Thailand - In particular, although accounting for more than 84% of the market share, more than 50% of rural households and 65% of urban households have not yet approached Vinasoy This rate is equivalent to the figure of more than 52 million Vietnamese people who still not use Vinasoy products 0 2.2 SWOT Analysis 2.2.1 Strengths - Strong branding and setup experience In the years 1997 - 2002 Vinasoy had to compete with many other big companies in Vietnam (Vinamilk, Dutch Lady, ) - Vinasoy has proven to be a major impact in the domestic market It is the foundation and springboard for international market entry - Technology: Modern technology, with the first Vietnam soymilk factory in the top largest soy milk factories in the world and Vinasoy Soybean Research & Application Center is the first and only center most in Vietnam - The Vinasoy brand name has captured the hearts of Vietnamese people We were able to start distributing our products through Vietnamese people living in China - Vinasoy has an enthusiastic human resource as well as the courage to learn and change 2.2.2 Weaknesses - Vinasoy has never created beancurd to compete with other pre-produced manufacturers, especially Soya, and customers are still familiar with pre-existing Beancurd types in the market - Beancurd is a food that is difficult to preserve in the long term 2.2.3 Opportunities - Compete with Soya Garden which is already a well-known brand with delicious beancurd 0 - No experience in producing canned foods 2.2.4 Threats - Demand and trend, consumers increasingly prefer natural, safe and convenient products Beancurd is also one of the current Gen Z favorite desserts - The number of customers who have demand for beancurd is increasing day by day So if Vinasoy can create a canned beancurd product that can be preserved for a long time with good quality, then this will be a good opportunity 2.3 Competition Vinasoy is one of the most well-known enterprises in Viet Nam for their Soybean product and all of them is milk With the new Canned beancurd product, they will join the dessert market which there is a lot of competitors one of them is Yogurt, Flan which is very popular nowadays But Vinasoy will be the first one to mass production canned beancurd which no one has ever done before that will be a big advantage that vinasoy had in this dessert market But other big companies that mass production Yogurts like Vinamilk and TH True Milk and Anh Hong's Flan have been in this market for a long time so customers are more familiar with them and that is one of the advantages they have 2.4 Product Offering ✓ THE SCENE OF NATURE Maybe you not know, Beancurd is a famous dessert from the island nation of Singapore and there is a legend that "anyone who comes to Singapore but has not tried Beancurd has never been to this island nation" 1000 km 2, but Singapore has hundreds of shops specializing in bean milk 0 ✓ EASY TO FIND INGREDIENTS Still a familiar main ingredient from 100% organic soybeans, fragrant soy milk blends with some natural flavors like pineapple leaves or Japanese green tea, and then "molded" with extracts 100% frozen is known as the essence of the sea Carrageenan algae, and so on, every mold of pure white beancurd was born ✓ TASTE The sweet and refreshing taste of organic soy milk, the pure aroma of the pineapple leaves, a little smoothness of the tongue, the cool 2.5 Keys to Success The key is to make the most delightful, delicious and healthiest beancurd that no one have ever made in Viet Nam Ensure the customer satisfaction with the flavors of the beancurd when they have the first taste of the beancurd that was made by Vinasoy 3.0 MARKETING STRATEGY Vinasoy will definitely not be missed in terms of creativity and breakthrough It is considered as a "gold" brand and put its name on the list of companies operating effectively, sustainable development and daring business strategies in the market If 20 years ago, when large enterprises raced to produce cow's milk, Vinasoy chose a separate niche with a strategy focused only on soy milk production Then with the advantage of going ahead, Vinasoy focused on exploiting the potential of the soy milk market and now, when the trend of nutritious plant-based beverages is rising worldwide, Vietnamese people also start to pay attention to this folk but nutritious drink, Vinasoy has almost completely dominated the carton of soymilk segment with 0 more than 80% market share of a trillion-dollar industry_ a desirable ideal figure of any business in the FMCG industry 3.1 Mission Vinasoy’s mission is to offer the highest quality nutritional products to their customers in all markets where they operate “We resolve to continuously research and refine production of nutritional soy-based foods and drinks to provide the best quality for a discerning consumer group This will enable not only ourselves and our partners but also the community at large to enjoy a higher quality of life, with meaning and prosperity” 3.2 Marketing Objectives ▪ Focus on developing the soy milk industry through expanding raw material areas and diversifying products ▪ Restructure sales and marketing strategies in a streamlined direction, increasing efficiency ▪ Aim to produce other products derived from soybeans ▪ Increase promotion and distribution activities in the country and the world 3.3 Financial Objectives ▪ A billion USD sales target in 2027 ▪ Maintain growth of at least 20% per year ▪ Maintain marketing and promotion expense about 7-8% of total costs, the average level of FMCG industry ▪ Focus on highly profitable activities and suspend unsatisfactory channels 3.4 Target Markets 0 With the trend of consuming organic food, healthy eating and plant-based nutrients, Vinasoy is constantly researching and innovating to diversify products to meet the increasingly demanding needs of consumers Currently, people's eating habits gradually focus on product quality, prioritizing the selection of "green – clean – healthy" products is gradually becoming a trend and can create a revolution in the field of food and beverages around the world According to Nielsen's research report2, up to 86% of Vietnamese consumers are prioritizing the use of organic, naturally sourced products for daily meals because they are safe, rich in nutrients and environmentally friendly Therefore, Vinasoy’s new products will target the consumer trend of the market, how to match the nutritional needs and tastes of users Although, Vinasoy is leading the soymilk market, about 50% of rural households and more than 65% of urban households have not yet access to Vinasoy products3 Vinasoy determines that the focus of its market share expansion strategy is to conquer this new group of potential customers Especially in the South, consumers prefer new, sensitive and rapidly changing manufacturers 3.5 Positioning Vinasoy will position itself as a leader in the domestic soybean production and processing industry This positioning will be achieved by leverage Vinasoy’s competitive edge: the first and only enterprise in Vietnam specializing in soybean only Vinasoy's commitment is always bring customers the best health as well as the best taste of natural soybean Unlike competitors who have made flavored soy bean products, Vinasoy only focuses on making natural soy bean or if there is an additional flavor, it still uses the traditional cereal flavor 10 0 3.6 Strategies The goal objective is to position Vinasoy as the premier producing and processing of soy products Sustainable development of Vinasoy is always rooted in the original This is a successful lesson for a business strategy focusing solely on soybeans and a methodical and scientific branding approach A good product is the core of a business During nearly 20 years of working with only soubeans, Vinasoy has gathered the secrets to creating the best quality products for consumers The message that Vinasoy seeks to communicate is that it provides the best quality and most nutritious soy products This message is transmited through a variety of methods The first is the Vinasoy Corp web site, which provides a reliable source of Vinasoy and offers a rich source of product information For instance, Vinasoy's products are well received by consumers because of the manufacturer's 11 0 understanding when creating products suitable for each customer segment: products for families, children, women and recently Soymen - the first soy milk for men in Vietnam It can be said that Vinasoy's command and foundation for all business activities revolves around the philosophy of "An Lành" The second medthod of communication is that constantly hold international scientific conferences on "healthy nutrition" – soy milk These are valuable industry workshops, rare in Vietnam to update the latest knowledge about soybeans in the world to help people better understand this precious food At the same time, Vinasoy is constantly researching and creating some unique new "soy milk" products In addition, marketing activities in the past years are very impressive such as Vinasoy's brands have built their own place in the hearts of consumers through clearly portraying and impressive identity of each specific brand: Vinasoy's parent brand is a source of healthy nutrition, Fami is a family-friendly product, Vinasoy is the product representing nutrition with beauty The last marketing method is using mass media such as television, newspapers, and Internet media to reach each household from city to countryside and reach young customers who use the Internet more than watch tivi 3.7 Marketing Program Vinasoy' commercial strategy includes the following Marketing-Mix strategy (4P) Product: Fami's strategic foundation is based on a large-scale business plan for new products - Before launching new products on the market, Fami always polls customers whether old products are accepted by consumers or not, consumers are not satisfied 12 0 with current products Since then, launched new features for products such as calcium-fortified Fami, launched Fami Jelly_ canned beancurd or organized a lot of attractive marketing programs to attract customers' attention - Currently, Vinasoy products in general and Fami line in particular are showing their orientation, they always have a breakthrough in products, focus on increasing value and benefits for customers All product messages are aimed at the right target customers 13 0 Pricing: is an important consideration This will be focused on a retail price per unit - According to the agency model, agents will buy goods directly from the Company at the prices offered by the Company After that, agents raise prices themselves to sell to the distribution middlemen And finally, consumers will buy at a ceiling price or possibly a floating price depending on the market area - According to the distributor model, distributors will purchase goods directly from the Company at the price offered by the Company with a deduction of a part of the discount Distributors while redistributing the wholesale and retail intermediaries to make the discount at the rate required by the Company Consumers will purchase at a price sold in retail outlets Place: FamiJelly products are distributed through channels: direct channel and indirect channel Promotion: The campaign will be carried out in a variety of ways - Vinasoy’s direct distribution channels include the Company's sales staff, the product introduction store placed in front of the Company's portal - Distribution model: Besides using traditional distribution channels, the company uses modern distribution channels as supermarkets and Horeca (Hotel – Restaurant - Cafe) - Futhermore, we will use e-commerce as Tiki, lazada, shopee to reach more young customers Promotion • Advertising 14 0 - We use some available advertising tools such as product packaging, product introduction documentary which will inform on our company website and pages on Facebook - At the point of sale: Posters, banners, product displays, and on the street: Panel, banner, steam gate, - We also conduct campaigns to introduce new product and attract customers’ attention Those campaigns are described in master plan • Sales promotion: We will implement both consumer promotions and point-of-sale promotions - Promotion for customers: We will organize programs such as "Lucky draw" with attractive rewards to create attention for customers and stimulate them to buy products - Promotion for retail outlets: By purchasing base promotional vouchers (applied in peak months when consumption is large), for example: if they buy 03 boxes of FamiJelly, we will give them box of other diary milk products • Personal selling: Annually, we organize sales conferences and participate in fairs and exhibitions, sell over the phone • Public Relations: VinaSoy organizes talks and seminars about company’s nutritional products We also sponsor game shows on television such as Fast like lightning (Nhanh 15 0 chớp), Running Man (Chạy chờ chi), Challenging comedians (Thách thức danh hài) 16 0 17 0 18 0 3.8 Marketing Reaserch Vinasoy has always maintained its leading position in the industry with more than 84% market share, which is a brand that is well received by many Vietnamese families After the campaign "Home is Where I Live" of Fami soy milk helped Vinasoy strengthen the company's image in the hearts of the public In addition, Vinasoy has many fanpage of brands and product review sites to help the company better understand the customer's reaction to the newly launched product Through those pages and website, Vinasoy will have many design changes 4.0 FINANCIALS This section will be evaluated based on financial report of the Duong Quang Ngai Company4 This financial statements articles for the fiscal year ended December 31, 2020 The Company (QNS) has 16 subordinate units dependent accounting Of those, there are units of the divison Vinasoy ❖ Vinasoy (2020) ▪ Gross revenue: 3875 x 109 VND ▪ Cost of goods sold: 2165 x 109 VND ▪ Gross profit: 1709 x 109 VND ❖ Fami Jelly is estimated at 1/5 Vinasoy ▪ Gross revenue: 775 x 109 VND ▪ Cost of goods sold: 433 x 109 VND ❖ Fami Jelly belong to a FMCG product _ convenience goods The raw material for the product is mainly soymilk Therefore, the actual cost to create the product is not high ▪ Unit cost: 9,000VND (= Product price + Other costs incurred, if any (shipping, packaging, marketing, labor ) 19 0 ▪ The COGS of the product unit is 9,000 VND, the expected gross profit is 40%, the retail price will be: Retail price = [9,000 / (100 - 40)] x 100 = 15,000 VND 4.1 Break-Even Analysis Break-Even Analysis Monthly Units Break-Even 2405556 Monthly Sales Break-Even 36 x 109 VND 4.2 Expense Forecast Jun-21 Marketing Expense Budget 32 Billions VND Advertisement 10 Billions VND Billboard Billions VND Social Media 12 Billions VND Newspaper Billions VND Talkshow 5.0 CONTROLS Fami Jelly will monitor these areas in order to gauge performance: • Revenue: monthly and annual 20 0 • Expenses: monthly and annual • Customer satisfaction • New-product development 5.1 Implementation Milestones Start End Date Budget Manager Department Date Marketing plan 1/3/2021 21/3/2021 1/4/2021 1/6/2021 12 Billions All-star VND Team 20 Billions All-star VND Team campaign #1 Advertisng Marketing Team completion Advertising All-star 7/6/2021 7/8/2021 campaign #2 32 Billions VND Totals 5.2 Marketing Organization All-stars team will be responsible for the marketing activities 5.3 Contingency Planning - Difficulties and Risks 21 0 Marketing Marketing + Price high, customer not like the savour + Perishable (not contain preservative) - Worst-Case Risks + Warning not to use for people who have allergy to soy bean + Manage expiry date 22 0 APPENDIX Vinasoy lạc quan với mục tiêu doanh thu tỷ USD vào năm 2027 | Công ty Sữa đậu nành Việt Nam Vinasoy (vinasoycorp.vn) Báo cáo Hành vi NTD Nielsen tháng 7/2020: Người tiêu dùng Việt quan tâm đến sức khỏe, chuộng hàng nội địa mua sắm trực tuyến hậu COVID-19 | Tomorrow Marketers Vinasoy lạc quan với mục tiêu doanh thu tỷ USD vào năm 2027 | Công ty Sữa đậu nành Việt Nam Vinasoy (vinasoycorp.vn) bao-cao-tai-chinh-nam-2020-da-duoc-kiem-toan-1614693755-16146937552.pdf (qns.com.vn) Địa lý Việt Nam – Wikipedia tiếng Việt Việt Nam tiêu thụ sữa đậu nành thứ giới | Công ty Sữa đậu nành Việt Nam Vinasoy (vinasoycorp.vn) Lãi tháng “ông chủ” sữa đậu nành Vinasoy, Fami giảm 83 tỷ đồng (baodautu.vn) 23 0 ... features for products such as calcium-fortified Fami, launched Fami Jelly_ canned beancurd or organized a lot of attractive marketing programs to attract customers' attention - Currently, Vinasoy products. .. information For instance, Vinasoy' s products are well received by consumers because of the manufacturer's 11 0 understanding when creating products suitable for each customer segment: products for families,... lines focus on dairy products which are called: Fami, Fami Go, Vinasoy To suffie many consumer tastes of a nutritious snack by developing a variety of product lines for all ages, Vinasoy launches