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 TIEU LUAN MOI download : skknchat123@gmail.com 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 TIEU LUAN MOI download : skknchat123@gmail.com COMMENT OF THE PRACTICE GUILINES TRAINER i 0 TIEU LUAN MOI download : skknchat123@gmail.com TABLE OF CONTENT Executive Summary Introduction SWOT & Macro - Environment Analysis 3.1 SWOT model company analysis 3.2 Market summary 3.2.1 Overview of snack mar 3.2.2 Macro - Environment A 3.2.3 SWOT model of Karam 3.3 Competitors Segmentation & positioning strategy 4.1 Segmentation 4.2 Targeting 4.2.1 Target customers: 4.2.2 Potential customers: 4.3 Positioning Marketing Mix Strategies 5.1 Product 5.2 Pricing 5.3 Place 5.4 Promotion 5.4.1 Advertising: 5.4.2 Sales promotion 5.4.3 Direct Marketing : 5.4.4 Event and experience 5.4.5 Public relations Action plan Conclusion 7.1 Implementation 7.2 Marketing Organization 7.3 Contingency Planning ii 0 TIEU LUAN MOI download : skknchat123@gmail.com 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 .9 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 TIEU LUAN MOI download : skknchat123@gmail.com 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) 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 TIEU LUAN MOI download : skknchat123@gmail.com 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 TIEU LUAN MOI download : skknchat123@gmail.com 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 History and development: snack Karamucho is a long-standing spicy snack brand of Koikeya that was information 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 TIEU LUAN MOI download : skknchat123@gmail.com of h full and Do Mission Wit Kar pro esp the tog Vision In t netw mo pro Strategic Objectives 0 TIEU LUAN MOI download : skknchat123@gmail.com 5.1 Marketing Mix Strategies 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 TIEU LUAN MOI download : skknchat123@gmail.com 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) - Distribution on e-commerce platforms 5.4 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 TIEU LUAN MOI download : skknchat123@gmail.com 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 TIEU LUAN MOI download : skknchat123@gmail.com 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 and brand awareness months (From the beginning of July 2021 to the end of August 2021) Plan Complete the Before July 1, 2021 Marketing plan and prepare to launch new products - Launching new July 15, 2021 products such as Potato Snack with Ribs Rice, Fried Chicken, Doraemonshaped Potato Snack, Spiral Potato Snack at retail locations 14 0 TIEU LUAN MOI download : skknchat123@gmail.com 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 growth opportunity for the snack market Understanding this consumer market trend, along TIEU LUAN MOI download : skknchat123@gmail.com with advertising and promotion strategies for afe a d healthy products, will br ng success to businesses 3.2.3 SWOT model of Karamucho potato snack Table 3.3: SWOT model of Karamucho potato snack Weakness Strength - Is the number product in - Products are only distributed in Japan Nhật certain places, making it difficult - It is a product made from potatoes for customers to find and buy - As a convenient product - Promotion is not really effective, (easy-to-open packaging) 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 + Being competed by many strong in Vietnam competitors such as Lays, O'star, Oishi, etc + 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 TIEU LUAN MOI download : skknchat123@gmail.com 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 In the potato chip snack segment, there is0 Oishi - a brand of Liwayway (Philippines) company TIEU LUAN MOI download : skknchat123@gmail.com with diverse products in ingredie ts 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 TIEU LUAN MOI download : skknchat123@gmail.com 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 TIEU LUAN MOI download : skknchat123@gmail.com 4.3 Positioning TIEU LUAN MOI download : skknchat123@gmail.com 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 TIEU LUAN MOI download : skknchat123@gmail.com 5.1 Marketing Mix Strategies 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 TIEU LUAN MOI download : skknchat123@gmail.com 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 TIEU LUAN MOI download : skknchat123@gmail.com ...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