MARKETING PLANNING FOR NEW PRODUCTS NESCAFES CHOCOLATE BUBBLE BY NESTLÉ VIETNAM COMPANY

THE MINISTRY OF FINANCE UNIVERSITY OF FINANCE- MARKETING oOo MARKETING PLANNING FOR NEW PRODUCTS - NESCAFE'S CHOCOLATE BUBBLE BY NESTLÉ VIETNAM COMPANY Major: Marketing Specialization: Marketing Management Ho Thanh Phu Tran Thanh Tuyen 2021008522 2021008587 Class: CLC_20DMA09 EVALUATION TABLE Full name Student ID Ho Chi Minh, 14 December 2021 0 Percent Ho Thanh Phu 2021008522 50% Tran Thanh Tuyen 2021008587 50% Total 100% GROUP ii 0 INSTRUCTOR'S COMMENTS ………………………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… ………………………………………………………………… Score in numbers Instructor's signature Faculty of Marketing M.S NGUYEN XUAN TRUONG GROUP iii 0 ASSURANCE Our team declares that the topic: "Making a Marketing Plan for a New Product Nescafe's Chocolate Bubble Coffee under Nestlé Vietnam" is an independent research work under the guideline of the instructor We also not have any copying by others The topic and content of the internship report are the products that I have researched hard during my study at the school The data and results presented in the report are truthful, we would like to take full responsibility and discipline of the subject and the school if there is a problem." GROUP iv 0 THANK YOU First of all, we would like to express our sincere thanks to the School Board, teachers of the University of Finance - Marketing in general and the teachers of the Marketing Department in particular, who enthusiastically taught and passed on to us Our valuable lessons and experiences make us have a piece of solid luggage and put it into practice in the future In particular, we would like to express our sincere thanks to Mr Dang Huynh Phuong who has wholeheartedly helped and guided me in the process of practicing my profession With the detailed and thorough comments, she conveyed to me It is a valuable lesson for us to complete our Marketing Management report In the process of making the Marketing Management report, because of the limited time and knowledge, mistakes will inevitably be made, I hope to receive the advice of teachers so that I can improve more and more and have good knowledge to apply to work after that Finally, I wish Mr Dang Huynh Phuong and all other teachers of the University of Finance - Marketing have a lot of health, always be happy and successful in life Thank you sincerely TABLE OF CONTENT GROUP v 0 EVALUATION TABLE ii INSTRUCTOR'S COMMENTS iii ASSURANCE .iv THANK YOU v TABLE OF CONTENT vi LIST OF FIGURES .viii LIST OF TABLES ix LIST OF ACRONYMS x I EXECUTIVE SUMMARY: II INTRODUCTION: 1 MISSION STATEMENT .1 Strategic objectives for the first year: Financial Objectives .2 III SITUATION ANALYSIS: .2 MARKET SUMMARY: .2 1.1 Market Size: 1.2 Market Growth: 1.3 Market Share 1.4 Market Trend MACRO ENVIRONMENT: 2.1 Political Analysis: 2.4 Technological analysis: COMPETITORS: 3.2 Competition on brand: .7 3.1 Substitute products: SWOT SEGMENTATION - TARGET - POSITIONING STRATEGY 11 5.1 Segmentation 11 5.2 Target: .13 5.3 Positioning: .14 MARKETING MIX STRATEGIES: 15 GROUP vi 0 6.1 Product: 15 Price: 19 Place 21 6.4 Promotion: .24 ACTION PLAN: 31 FINANCIAL: .33 Break even analysis: 33 Sales Forecast: 33 Expense Forecast: .34 CONTROLS: 37 Implementation: 37 Backup plan: .37 REFERENCES .40 LIST OF FIGUR GROUP vii 0 Figure 1: Market of instant coffe in Vietnam Figure 2: Vietnam Coffee - Cocoa Association Figure 4: Inside the decaffeinated instant coffee production area in Dong Nai .6 Figure 5: Positioning map 14 Figure 6: Design of Egg Coffee product 16 Figure 9: Supermarket quantity in Vietnam (source: damac.com.vn) 22 Figure 10: convenience/mini store quantity in Vietnam (source: damac.com.vn) .23 Figure 11: ranking of the leading e-commerce enterprises in Vietnam (source: iprice.vn) 23 Figure 12: Channel structure of Chocolate Bubbles Coffee 24 Figure 13: access data of Kenh14 (source: kenh14.vn) 27 Figure 14: Plastic cups layers lock & lock capacity 750ml .28 Figure 15: High-class cloth bag 29 Y LIST OF TABLES Table 1: Copetition on industry GROUP viii 0 Table 2: Nescafe's competitors in terms of brand Table 3: SWOT of Nescafe 11 Table 4: Segmentation of Nescafe 13 Table 5: Chemical composition of Chocolate Bubble coffee .18 Table 6: Pricing structure 20 Table 7: Product’s price of Nescafe 21 Table 8: Total advertising cost 25 Table 9: Advertising on Facebook 26 Table 10: The prize structure of Nescafe Contest on Facebook 29 Table 11: Timeline of action plan 31 Table 12: Sale forecast 32 Table 13: Expense Forecast: 35 Table 14: Negative situations and cases may occur that affect the business - Signs 37 Table 15: Negative situations and cases may occur affecting the business - Solution, Remedial plan .38 GROUP ix 0 LIST OF ACRONYMS FMCG: Fast Moving Consumer Goods PR: Public Relations VND: Vietnam Dong TVC: Television Commercial ADS: Advertising GROUP x 0 6.4.1.2 Selection of advertising channels: Implementation of activities  TVC Advertising ideas: Take, for example, the image of a beautiful, talented, and fatigued young girl due to job She was under a lot of stress and wanted something to cheer her up Then a representative from Nescafe knocked on her house and presented her with a new Nescafe product, chocolate bubbles coffee, which is Introduced a one-of-a-kind combination of coffee, chocolate, and bubbles Then she became inquisitive and gave it a shot She was clear-headed and felt revitalized after using it, acquiring a fresh enthusiasm to resume her task “Chocolate bubbles coffee – double sweetness in life” Apply for a license to television advertising Profile permit TV advertising: - Application for a TV advertising license - The script of the commercial - Promotional product samples - Promotional voucher from advertising agency (television station) Content Paid Script Company Actors A female cartoonist: Singer My Anh Employee of Nescafe: Actor Tran Duoc Equipment Professional camera lights, lights, sound Production Director, artist, casting actor, photographer, voice organization dub Techniques 3D drawing business introduction, product, logo GROUP 23 0 Sounds Music Total amount of Composing songs/songs/music copyright tvc 70 million VND Table 8: Total advertising cost Because VTV and HTV are the two most popular Vietnamese television stations in Vietnam, Nescafe will choose these channels to advertise on  Online advertising: We will focus on the prominent online channels that people visit a lot, including: news websites, and social networks - News websites: we choose Kenh14 Figure 13: access data of Kenh14 (source: kenh14.vn) Reason: Most of channel14's readers are mostly students, are one of the generations keeping up with the times, is an advertising channel worth promoting our egg coffee products  Location: Top banners, in the categories Life size 300x250 Posted within weeks  Cost: One-time advertising price 12 million / 1-week, total payment weeks 48 million GROUP 24 0 - Social network: We choose Facebook and Youtube  Facebook: Number Description FB ads-page like FB ads-Page post engagement of Run ads to increase fan base on fanpage Units 20,000 Fan 30 Post 9000 Click Approximate amount of interaction 20,000 fans Run ads Advertisement to increase interaction/stimulate consumers with the 20,000 interactions/likes/share content posted on Fanpage FB ads-click to website Run ads to display the user's newsfeed Commitment total click:9000 Table 9: Advertising on Facebook - Ads on Youtube: TrueView-in-stream ads Appearance: promotional videos appear before other videos on Youtube Activities: video ads play first, after 5s users can skip Charge: Only pay when viewers watch 30s advertising video - Advertising on Tiktok: Form: Invite famous Kols on TikTok: Bong Tim, Ong Anh thich nau an, Hoang Lam Foodie Activities: product advertising with video on TikTok Cost: 10 million per person GROUP 25 0  Outdoor advertising: - Bandroll: Form: at retail points Expected production: 2000 pcs Cost: 30000 VND/piece => total cost: 60 million VNĐ  Promotion: - The first months: Promotion of gifts directly on products and preferential prices at major supermarkets in Ho Chi Minh City + Quantity of promotional products: 5000 pieces + Gifts: Plastic cups layers lock & lock capacity 750ml - Figure 14: Plastic cups layers lock & lock capacity 750ml The next months period: + Form: buy product boxes with 20 packs, get a high-end fashion cloth bag right away + Quantity: 10,000 + Gift: high-class cloth bag Figure 15: High-class cloth bag  PR: Create a distinct and innovative image for chocolate bubbles coffee through public relations - Advertorial - Press Conference courtesy of kenh14 and vietcetera GROUP 26 0 - Tiktok "choco bubbles dance - double sweetness" video contest Dates: 15 November 2022 - 15 December 2022 Format: Each contender will develop and dance to the music that is offered After drinking a great cup of Chocolate Bubbles Coffee, Nescafe displays enthusiasm and vigor Add the hashtags #vudieucaphesocolatranchaunhanddoingotngao #Nescafe to help the video go viral and get more wonderful dances from you! - Scoring method: point Equals view, points = heart All shared accounts must be genuine; the owner must not employ spam accounts to engage in interactive spam In the event that detects fraud contestants who are eligible will be dropped from the program NOTE: - All entries are original and may not be duplicated in any form - Entries are video snippets that have never been broadcast on television or in any other kind of media The truthfulness of entries is the responsibility of the contestants - The organizers will publicly review and evaluate the prizes before transferring them to the winning candidates through bank or e-Wallet  The prize structure: Award Content Award First Prize 10 million VND Second Prize 5,000,000 VND Third Prize 3,000,000 VND League four 1,000,000 VND League Years 500,000 VND GROUP 27 0 Consolation Prize 100,000 VND 100 Total prize value 30,000,000.VND Table 10: The prize structure of Nescafe Contest on Facebook ACTION PLAN: Jan- Feb- Mar- Apr- May Jun- Jul- Aug- Sep- Oct- Nov- DecJob Time Week 22 22 22 22 -22 22 22 22 22 22 1/1/2022 January 20 / 2022 Press conference to introduce January 20, products 2022 Show TVC on VTV and HTV channels February 22, 2022 April 22, 2022 Product offer 6/2/2022 Banner on 1/2/2022- channel 14 1/3/2022 Outdoor 1/2/2022- Bandroll 1/3/2022 Advertise on 1/2/2022- Youtube 1/3/2022 22 4 4 4 4 4 4 Filming TVC 22 GROUP 28 0 Advertise on 1/2/2022- Facebook 1/3/2022 Contact KOLs 1/2/2022- to advertise on 1/3/2022 Tiktok Promote Marketing at 10/2/2022- Universities 10/3/2022 Promotion phase Promotion phase March 8, 20228/5/2022 June 30, 202230/8/2022 Post PR on channel14 and 10/9/2022Vietcetera 10/10-2022 Information about the Video Creation Contest On tiktok 1/11/2022 Organized 11/15/2022- contest 15/12/2022 Announcement of the contest results 22/12/2022 Award for the contest 29/12/2022 Table 11: Timeline of action plan GROUP 29 0 10 FINANCIAL: Break even analysis: Total first-year sales revenue for Nescafe Egg Coffee is projected at 40.000 million VND, with an average whole-sale price of 49.000 VND per unit and variable cost per unit of 5.000 VND for unit sales volume of 800.000 Break-even calculations indicate that Nescafe Egg Coffee will become profitable after the sales volume exceeds 518,181 during the product's first year Our break-even analysis assumes per-unit wholesale revenue of 49.000 VND per unit, variable cost of 5.000 VND per unit, and estimated first-year fixed costs of 22,800 billion VND With these assumptions, the break-even calculation is: Sales Forecast: Number of products Cash (VND) Expected revenue 800,000 40,000,000,000 Variable costs 800,000 4,000,000,000 Fixed costs 800,000 22,800,000,000 Profit before tax 13,200,000,000 Tax accounted for 20% 80% Profit after tax 10,560,000,000 Marketing budget 4,051,500,000 Backup plan 2,000,000,000 Total 4,508,500,000 Table 12: Sale forecast GROUP 30 0 Section Expense Forecast: Frame Contents hours Frequency Quantity Unit Advertising TVC Construction TVC TVC on HTV 17h Post-20h Post TVC on VTV times /time p.m top.m times/hour Price Cost TVC 70,000,000 70,000,000 month 180 000 000 180 000 000 81 month 200,000,000 200,000,000 Online ads Total TVC advertising costs Put banners on channel 14 450,000,000 months 40,000,000 Total online advertising costs Face-book ads page like 40,000,000 80,000,000 20,000 fans 2,650 53,000,000 30 post 220,000 6,600,000 9000 click 2,000 18,000,000 video 35000 000 35,000,000 10 people 10,000,000 100,000,000 Face-book ads page post engagement Face-book ads click to website Video Trueviews instream ads KOLS GROUP 31 0 Outdoor Ads Total Social Media Costs and a half Bandroll month 2000 212.600.000 pieces 30,000 Total Outdoor Advertising Costs 60,000,000 60,000,000 Lock&Lock plastic cups 10,000 pieces 100,000 1,000,000,000 Design posters piece 1,500,000 1,500,000 Hire staff 40 people 2,500,000 100,000,000 10,000,000 400,000,000 50,000 1,000,000,000 Promotions 750ml Rent Location 40 in 40 supermarkets High-quality canvas bags Video contest on Tiktok superm arkets 20,000 pieces prizes 30,000,000 PR Total promotion costs 2,531,500,000 Press conferences Advertorial on channel 14 terms/month Advertorial on ZING.VN terms/month Marketing at 1 time 300,000,000 300,000,000 post 30,000,000 120,000,000 post 15,000,000 60,000,000 20,000 boxes 49,000 980,000,000 GROUP 32 0 universities term/month Total PR costs 1,460,000,000 Total costs 4,051,500,000 Table 13: Expense Forecast: 11 CONTROLS: The following areas will be monitored to gauge performance: Revenue: monthly and annual Expenses: monthly and annual Customer satisfaction New-product development Implementation: The following milestones identify the key marketing programs It is important to accomplish each one on time and on budget Backup plan: Negative situations and cases may occur that affect the business - Signs Negative situations and cases may occur that affect the Signs business  Natural disasters  The Source of supply decreased sharply, (rainstorms, epidemics, causing production output to decrease, diseases, etc), loss of supply unable to meet customer demand of main raw materials  Marketing activities not  Monthly and quarterly sales not meet have much impact on expectations GROUP 33 0 customers - The taste of coffee is not well received by customers - Disease outbreak, making it difficult for production and transportation  Customers tend to stay away from caffeinated products  Unintentionally arise  There are more and more bad news negative news about parent articles appearing, strongly affecting company Nestle, or Nescafe- customer psychology, causing customers to related businesses boycott Competing brands quickly stepped up to capture market share Table 14: Negative situations and cases may occur that affect the business - Signs Negative situations and cases may occur affecting the business - Solution, Remedial plan Negative situations and cases may occur affecting the business  Solution -plan Disaster(Storms, epidemics),  loss of main raw material supply Prepare other suppliers in neighboring countries such as Indonesia, India so that the shortage of coffee is not too large  Provide support to coffee supply areas GROUP 34 0 in difficulty so they can quickly reinvent the product  Invest, and upgrade product supply to further improve the quality of coffee beans   Marketing activities not  The Marketing team needs to meet have much impact on customers carefully, eliminate the weaknesses and The taste of coffee is not well weaknesses, then learn from experience and received by customers replace it with more suitable strategies  Research the right psychology of customers to get the best results  Use enough campaigns to not waste financial resources on ineffective activities  Regain customer trust through promotional offers The staff, PG - PB are well trained to have the best buying experience  Unintentionally negative  news about arise  Speak up through newspapers, parent television, and social networking sites to company Nestle, or Nescafe- regain your reputation and position as related businesses quickly as possible The epidemic broke out,  The packaging is sturdy, the making it difficult for production warehouses are guaranteed to be able to and transportation preserve the products well GROUP 35 0  Staff precedence injected vaccine, work zone safety, not infection  Customers tend to stay away  from products that contain Product information, packaging specified ingredients, and commitment to caffeine safety effort health for consumers Table 15: Negative situations and cases may occur affecting the business - Solution, Remedial plan  After carefully studying the risk situations and cases and proposing solutions to overcome them, then estimate the maximum loss cost of billion VND GROUP 36 0 REFERENCES Economic analysis is sourced from https://www.worldbank.org/vi/country/vietnam/overview#1 Technological analysis is sourced from https://thesaigontimes.vn/nestle-duaviet-nam-thanh-trung-tam-cung-ung-ca-phe-gia-tri-cao-cho-the-gioi/ Environmental analysis is sourced from http://baochinhphu.vn/Doanhnghiep/Nestle-Viet-Nam-duoc-nhan-Giai-thuong-Moi-truong-VietNam/418117.vgp Nescafe’s logo is source from https://1000logos.net/nescafe-logo/ Marketing Mix (Place) is sourced from http://damac.com.vn/tin-tuc/bao-caoxu-huong-thi-truong-ban-le-viet-nam-trong-nam-2020.html Marketing Mix (promotion) is sourced from https://www.brandsvietnam.com/congdong/topic/25569-7-chien-thuat-giup-giatang-brand-awareness-mot-cach-hieu-qua and https://radiovietnam.com.vn/top11-dai-phat-thanh-truyen-hinh-co-luong-khan-gia-lon-nhat-hien-nay-a764.html GROUP 37 0 ... Faculty of Marketing M.S NGUYEN XUAN TRUONG GROUP iii 0 ASSURANCE Our team declares that the topic: "Making a Marketing Plan for a New Product Nescafe's Chocolate Bubble Coffee under Nestlé Vietnam" ... effective marketing strategy to differentiate its products Differentiated market stategy: Nescafe uses a differentiated marketing strategy for all of its products by creating a wide variety of products. .. "global coffee flavor" to Vietnamese people with the worldwide tagline "A New Day Begins." Chocolate Bubbles Coffee, Nescafe's newest product, debuted with the phrase "Chocolate Bubble Coffee – Double