(TIỂU LUẬN) CRAFTING AND EXECUTING STRATEGY FOR FIZZIE BEVERAGE IN VIETNAM AND CHILE MARKET

NATIONAL ECONOMICS UNIVERSITY SCHOOL OF ADVANCED EDUCATION PROGRAMS TOPIC: CRAFTING AND EXECUTING STRATEGY FOR FIZZIE BEVERAGE IN VIETNAM AND CHILE MARKET GROUP Students: Class: Supervisor: Ha Noi, October 12, 2021 CONTENTS Nguyễn Thảo My Lê Tố Uyên Tô Minh Loan Lê Minh Khuê Vũ Thị Thu Uyên Nguyễn Thị Trang IBA 60A PhD Nguyễn Anh Minh PART A I OUR COMPANY AND PRODUCT Our company .3 Our products .4 II THE INDUSTRY’S ENVIRONMENT Macro Environment in Vietnam .6 1.1 Political factor .6 1.2 Economic factor .6 1.3 Social factor 1.4 Technological factor 1.5 Environmental factor .6 1.6 Legal factor Industry’s Environment in Vietnam - Five forces analysis .7 2.1 Suppliers 2.2 Substitute products 2.3 Rival firm .10 2.4 New entrants… 10 2.5 Customer… 11 III COMPETITIVE STRATEGY 11 About the Best Cost strategy 11 Reasons to use Best Cost strategy 12 2.1 Buyer diversity .12 2.2 Positioning advantage 12 2.3 Resources and capabilities… 12 PART B 14 I GLOBAL STANDARDIZATION STRATEGY… .14 II MARKET OVERVIEW 14 PEST… 14 1.1 Political 14 1.2 Economic .15 1.3 Socio-cultural 15 1.4 Technological .15 1.5 Beverage market in Chile 15 SWOT Analysis… 16 2.1 External Opportunities 17 2.1.1 Chilean demand for healthy food increases 17 2.1.2 Modern transportation infrastructure .17 2.1.3 High income economy .17 2.1.4 Young population 17 2.2 External Threats 18 2.2.1 Competition from rivals 18 2.2.2 Chile implements the New Food Law .18 2.2.3 Demand for clean label products 18 III ENTRY STRATEGY TO EMPLOY 19 PART C 21 FROZEN FRUIT………… 21 Buying in bulk and saving money 21 Business’s scale .21 Customers’ tastes 21 REFERENCES 22 PART A I OUR COMPANY AND PRODUCT Our company Company name: FIZZIE BEVERAGE CO Ltd The company was established in 2021 in Vietnam, which is a start-up company in the carbonated drink industry We are the original company focusing on renewing carbonated fruit drinks to be delicious and good for health in Vietnam Our company’s strategic vision is “To provide consumers worldwide affordable drinks, convenient, delicious, good for health Bring benefits and refreshment for everyone who is served” The mission statement of our company: ● Building the position of Fizzie Beverage in the Vietnam market, making roots to grow in the international market ● Creative and serving customer health, consumption needs, minimizing environmental impacts ● Respect customers, diversify products to serve each customer object Business model Customer value proposition Revenue generation Fizzie Beverage The first thing when a customer uses Fizzie products they are interested in its use value that is the refreshment feature of a gas drink and a deeply fruit flavor Besides being convenient with many different designs, cans and various capacities suitable for many customers Along with the development of a wide distribution system, customers can get products in a convenient way Store location : Wide distribution of branches: wholesale and other distributors, catering services, grocery stores, convenient shops, large retailers, and e-commerce retailers Selling carbonated drinks products, gas juices with affordable prices in bulk to achieve revenue Price can be used, including the real value of products and spending for services and guarantee Cost structure Fixed and variable costs related to the number of products that customers purchase Profit margin Profitability depends on the number of products sold to cover the cost and provide attractive profits Our products Products name : ● Fizzie carbonated drink in can 350ml( peach, grape, watermelon, pineapple ) ● Fizzie carbonated drink in glass bottle 450ml ( peach, grape, watermelon , pineapple) Material : CO2 saturated water, HFCS road, sugar cane, acidity regulator (330), emulsifier (1450,444),, Pure natural tropical fruits, preservatives (211) and food colors (110) Production technology : Aseptic The advantages of Fizzie : ● Products are made from pure fruit juice, have delicious and attractive, natural flavors ● Fizzie beverages contain many essential vitamins for the body to provide energy for the body in a long day of activity ● In addition, with modern production technology, ASEPTIC technology creates a completely superior product compared to other technology, ensuring strict requirements for food safety and not lose the nutrients that are healthy by the impact of high temperature, and keep the most natural flavor o Raw materials before being put into nutrient extraction will be strictly controlled for quality o The water used in the extraction must meet the standards of the Ministry of Health o The extraction process is strictly controlled in terms of temperature and time to optimize all nutrients beneficial to health The product is sterilized through the UHT system at 140 degrees Celsius for 30 seconds and lowered cooling temperature at 25 degrees Celsius to help the product have the highest purity while maintaining the nutritional value o After filling and capping, the product will go through an electronic camera system to identify and eliminate bottles with warping errors during the capping process The last step is automatic product labeling and packaging II THE INDUSTRY’S ENVIRONMENT Macro Environment in Vietnam - PESTLE Analysis 1.1.Political factor ● Political stability, no risk of military invasion => Economic stability ● The Government is quite supportive toward the Soft Drink industry ● Intellectual property protection World Health Organization (WHO) experts have expressed strong support for a new tax on sugary drinks proposed by the Ministry of Finance The proposal will impose a 10 percent special consumption tax on different types of beverages, including sweetened drinks The new 10 percent special consumption tax would also accrue to other beverages, including carbonated or non-carbonated soft drinks, juices, flavored water, energy drinks, instant tea, pre-packed coffee and flavored milk 1.2 Economic factor ● Developing country with stable economic growth ● GDP growth is at 2.6% per year, for particular 2.91% in 2020 ● Low inflation (2.7%) The Vietnamese economy is likely to gradually recover from the fourth quarter of 2021 and escape the minus growth seen in the third quarter thanks to the activeness of the business community and the Government’s efforts to remove obstacles facing enterprises The fourth resurgence of COVID-19 in several northern industrial hubs such as Bac Ninh and Bac Giang, and later in southern localities including Ho Chi Minh City, Binh Duong and Dong Nai, as well as the capital city of Hanoi in the third quarter has caused numerous difficulties to the business sector which generates 60 percent of the country’s GDP Meanwhile, 80 percent of businesses involved in the survey said that they saw rises in input cost, 54.2 percent pointed to increases in material prices, 49.5 percent complained about higher logistics cost, 33 percent encountered a worker shortage, and 40.8 percent faced a lack of materials for production 1.3 Social factor ● Vietnamese people, especially the young generation, are very willing to adapt new types of drinks ● Vietnamese people usually prefer soft drinks when having a gathering or holding a party ● They tend to care more about the quality rather than the brand nowadays The Covid-19 pandemic has made Vietnamese consumers more conscious of healthy food and drinks and increased their consumption, studies show The consumers are also more aware of specific health benefits of particular products, according to a new report by market research firm Nielsen Vietnam The consumption of healthy food has been a rising trend for several years now, as seen in the "clean-eating" drive in western European countries and America; as also macrobiotic diets in Asian countries But the Covid-19 pandemic has provided added impetus For many, it has been a wake-up call to adopt a healthy lifestyle and consume healthy products Researching post Covid-19 consumer behavior, a survey conducted by Nielsen Vietnam shows a sharp increase in demand for products that boost health and immune system Even after society returned to a more or less normal life, people still have shown increased attention to health issues, thereby generating a major change in the consumption of food, beverage and fast moving consumer goods Among items that have seen robust consumption recently, consumers are prioritizing healthy food along with essential items There is a stronger focus on measures to boost the immune system and maintain health, including fresh foods, healthy foods and drinks with immune boosting ingredients 1.4 Technological factor ● The domestic technology in the drink industry is not advanced ● Outdated technology makes it impossible to optimize the product production line, it costs money to import foreign technology Experts said that the abundant supply of farm produce, a young population, and increasing demand could help Vietnam grow into one of the largest fast moving consumer goods (FMCG) markets in the region This also poses a good opportunity for producers to develop brands for their products and increase the application of technological advances into producing and diversifying products, thus helping to win both domestic and foreign users For instance, Tan Hiep Phat’s VND4 trillion ($173 million) new plant is situated on an area of 40 hectares (99 acres) in the Mekong Delta province of Hau Giang Its construction is being done in three phases The first phase, with an Aseptic filling line, has begun operation with a capacity of 48,000 bottles per hour or 130 million liters a year With the Aseptic, closed-loop production system, THP produces nature-based beverages including Dr.Thanh Herbal Tea, Zero Degree Green Tea with Lemon, Number Energy Drink and Zero Degree Macchiato MilkTea They are produced in completely sterile conditions and with no preservatives or artificial coloring The Hau Giang plant is the first in Vietnam to use the Aseptic production technology for cup filling and sealing lines Instead of filling and capping only PET bottles, THP’s investment in Aseptic technology for cup filling and sealing lines aims to increase the convenience factor of their products This technology can be used for various drinks including Zero Degree Macchiato Milk Tea, milk coffee and corn milk 1.5 Environmental factor ● A tropical climate country with rich vegetation, providing a wide variety of different and exotic fruits ● In Vietnam, you can also find fruits coming from colder climates in Dalat and other mountainous areas in the Central and Northern regions There is an incredible amount of good looking and tasting fruit found in Vietnam The availability of different fruits is influenced by climate and landscape The northern part of the country is closer to the mountains and experiences colder weather The southern Vietnam climate is tropical, and includes very warm weather and monsoons 1.6 Legal factor ● The legal system is relatively good ● Have Copyright, patents / Intellectual property law ● Consumer protection ● Employment law 1.7 Beverage market in Vietnam Vietnam is a very potential food and beverage (F&B) market, according to the Business Monitor International(BMI) F&B categories currently account for the highest proportion of consumers’ monthly spending, about 35 percent F&B spending is equivalent to about 15 percent of the country’s GDP and the figure is on the rise Like many other countries, Vietnam is seeing an upward trend in consumption of soft drinks In 2000, its consumption of soft drinks per capita stood at six liters, but climbed to 44 liters in 2016 In terms of ready-to-drink tea products, the market research company Euromonitor reported that Vietnamese people annually consume more than two billion liters Most market research has a joint stance that Vietnamese consumers are willing to pay more for higher-end drinks, increasingly prefer trusted brands and healthy products, and value convenience Five most popular non-alcoholic beverage makers in Vietnam saw last year’s revenues rise 13 percent year-on-year to over $1.7 billion Suntory PepsiCo, a venture between the U.S.’s PepsiCo and Japan’s Suntory Holdings Ltd, continued to lead the market with revenues of VND 18.3 trillion ($793 million), up 14 percent year-on-year The company offers a variety of products including soft drinks, water, energy drinks and Oolong tea Coca-Cola followed with VND 9.3 trillion, its product range also comprising soft drinks, water and energy drinks Vietnamese company Tan Hiep Phat Group (THP) came in third at VND 9.2 trillion, up 10 percent, focusing only on two types of drink: tea and energy drink The fourth and fifth places were taken by Vietnamese firm Masan Consumer and Thai company Red Bull, both having recorded growth in recent years SWOT Analysis Internal Strengths Healthy product line Excellent customer service & modern production technology Known for ethical business Advertising Internal Weakness Weak brand image & reputation in domestic market External Opportunities Vietnamese demand for healthy food increases Modern transportation infrastructure Young population S.O Run advertising campaigns to introduce healthy product line on social media (S1,S4,O1,O3) Provide excellent delivery service ( S2, O2) W.O Advertising the product frequently about the special characteristic, using the ad to enhance the company’s image External Threats Competition from rival brands Quick change in consumer’s taste Strong competition S.T Marketing the ethical image of the business to reduce competitive pressure (S3,S1) Increase product quality to differentiate from competing brands (S1,S2,T3) Put a lot of effort in developing new products to attract customers ( S1,T2) W.T Invest in brand image and packaging to compete and meet the new demand of consumers 8.000 vnd per 310ml can or 330ml bottle ● Although these domestic brands have difficulties competing with the foreign big guys in the cities, they can survive in the rural areas thanks to their amazingly cheap prices and wide range of flavors => High availability of substitute products 3.3 Rival firm The four biggest names in Vietnam’s sweetened beverage market include the US’ Coca-Cola Vietnam, Suntory PepsiCo (a fully foreign-owned joint venture between 12 PepsiCo and Japan’s Suntory Holdings Limited), URC Vietnam from the Philippines, and Vietnam’s Tan Hiep Phat – all of which have grand designs in Vietnam Their products are used by millions of Vietnamese and favored for their cheap price (only about 8.000 - 20.000 vnd per product ) and refreshing flavors However, since their products contain some artificial chemicals that might have bad effects on people’s health, a lot of consumers have decided to use other products which are more ‘natural’ and healthier => High rivalry intensity among competitors in domestic soft drink market 3.4 New entrants Since there aren't any formulas for others to imitate exactly the flavors of any specific brands, there are high chances that the firms can maintain their signature features However, others can easily create their own formulas That is the reason why there are such a wide range of flavors in the market nowadays And unfortunately, this situation tends to go on for a long-term in the future => The threat from potential entrants is high 3.5 Customer The target customers are students, office workers who always work and study for 6-8 hours a day and need something to temporarily refresh after a hard-working day Another group of target customers is the families who want to hold a gathering and worry about getting drunk after that Instead, they prefer soft drinks because they are not only alcohol-free but also able to make them feel more comfortable after being too full The number of customers demanding these products are increasing, partly because of the young population However, the loyalty of the consumer is not high, since these products have existed in the market for a very long time and the customers are always keen on trying new things Since there are many articles about the disadvantages of having soft drinks, many people are now more into finding new types of drinks that are refreshing like fruit juice but also can restore for a relatively long time => The high demand for this product Conclusion: Based on all the analysis above, including the PESTLE, SWOT and Five Forces, although both the rivalry among competitors and availability of substitute products are high, we still consider Vietnam soft drink market as a very potential 13 industry for Fizzie At first, these factors make the market seem unappealing but, actually, the high availability of substitute products is very beneficial for a start-up company like ours Moreover, if we can apply proper competitive strategy, we would definitely gain our success in this intense domestic beverage market Strategic Group Map of Fizzie in the Soft Drink Industry of Vietnam III COMPETITIVE STRATEGY About the Best-Cost strategy • The best-cost strategy is the strategy of increasing the quality of products while reducing costs This strategy is applied to give customers “more value for the money.” • It is achieved by satisfying customers’ expectations on key attributes of products At the same time, prices are charged lower than that of the competitors • The best-cost strategy is a hybrid It balances a strategic emphasis on low-cost against a strategic emphasis on differentiation It is considered as the most powerful competitive strategy of all Reasons to use Best-Cost strategy 2.1 Buyer diversity: As from the previous part, according to the forces model for the industry’s environment analysis, it is already stated that the Vietnamese market is large which increases the diversity in demand for different types of products Specifically, as the need for healthy carbonated fruit drinks arose recently, it is likely to be an opportunity for Fizzie In this case, according to the research, the company’s 14 product is also differentiated from the other rivals with sugar-free and no preservation products, which is little to be seen in the market at the moment 2.2 Positioning advantage The best-cost strategy will work very well in a market where product differentiation becomes the norm because of buyer diversity, and also a substantial number of buyers are sensitive to price and quality This is a part of Fizzie strategy, as the company focused directly on a specific segment of the market Fizzie expects its product to be used widely at offices, restaurants, grocery stores, cafeterias, supermarkets, convenience stores, In other words, it can be concluded that Fizzie target customers should be the people from the age of 21-50, as most of them are young and middle age people who are looking for a healthy, refreshing and not too sweet drink And although people in this group have different ranges of salaries, their common point is that they both dislike the soft drinks that contain too much chemicals and artificial sweeteners, but are willing to pay more as long as the drink matches their taste and does no harm to their health Therefore, Fizzie with a differentiated product at the average price with high quality is definitely a great choice 2.3 Resources and capabilities According to the previous reports, the amount of GlobalGAP fruit suppliers in Vietnam is moderately small, which might cause difficulties for any company in the industry to find a stable fruit supply source This might result in the strengthening of the supplier bargaining power, therefore the suppliers hold the right to decide the prices, usually have to be high to benefit their business Additionally, Fizzie also aimed to conduct different types of advertising methods to enhance the company’s image as well as innovate the product’s formulas with diversity in flavor and ingredients to match with the purpose of the customers This also means that the manufacturing cost will increase and undoubtedly, it will lead to the rise in the product price, compared to the general market How to use Best-Cost strategy ● Our company strives to find other suppliers who can respond to the requirements Furthermore, we always buy fruits from at least two suppliers In case one supplier is not able to supply fruits on time, the company can ask the 15 ● ● ● ● ● ● ● others Our products are sugar-free and made from Vietnamese fruit specialties so it can bring some new exotic flavors to the market Soft drinks are always considered as unhealthy drinks However, since our products are sugar-free, the consumer can be less worried about health problems when using ours Advertising the product frequently about the special characteristic, using the ad to enhance the company’s image Innovating to improve flavor, changing in ingredients to have a better match with customer orientation Put a lot of effort in developing new products to attract new customers but still need to maintain the quality of the original products to keep the old customer The company continues improving not only the quality to differentiate from others The company researches the demand of the customer frequently to manufacture a suitable amount of the products 16 PART B I GLOBAL STANDARDIZATION STRATEGY According to the Harvard T.H Chan School of Public Health, there are 4.2 grams of sugar in a single teaspoon, and a typical can of soda has about to 10 teaspoons Just picture that amount of sugar in a glass.The Dietary Guidelines for Americans recommends you limit added sugar to no more than 10 percent of your daily caloric intake, which is about 12 teaspoons on a 2000-calorie diet Per the CDC, drinking sugar-sweetened beverages is associated with weight gain obesity, type diabetes, heart disease, kidney disease, non-alcoholic liver disease, tooth decay and cavities, and gout For that reason, Fizzie decided to come up with a non-sugar carbonated fruit drink Fizzie drinks will still give you the fizziness - the flavor of soda without the crazy amounts of sugar We want our global customers to enjoy the excited feeling of carbonated drinks and to keep healthy at the same time with Fizzie, which doesn’t have high sugar levels and artificial ingredients II MARKET OVERVIEW Target Market : ChiLe Reason to choose Chilean Market: - DYNAMIC ECONOMY Chile has the most dynamic economy in Latin America with per capita income reaching its highest level in many years - ATTRACTIVE BUSINESS ENVIRONMENT Chile has an attractive and dynamic business climate It is the first country in Latin America and 10th among 179 countries worldwide for economic freedom - TAX-FRIENDLY Taxes in Chile are the lowest in Latin America Chile has bilateral agreements to avoid double taxation with many countries, including Viet Nam - LOW RISK Chile is a reliable and safe place to business It is the only nation in Latin America to receive the lowest political risk rating from Aon Corporation, a Chicago-based organization offering risk management services for corporations looking to invest overseas - OUTSTANDING QUALITY OF LIFE Chile offers a perfect mix of natural beauty, public safety, political stability and modern infrastructure - A REGIONAL PLATFORM Chile is a good jumping off point for regional operations Chile’s tax system benefits enterprises that administer businesses in other Latin American countries - 17 PEST analysis 1.1 Political Chile consists of three separate and independent agencies: ● ● ● Law enforcement authorities Legislature Judicial authorities Although there are various political Parties in Chile, in general, Chilean Politics are relatively stable, which is better for a stable economy Foreign Policy: Chile implements an independent foreign policy, diversifying and expanding relations with countries inside and outside the region In November 2011, Chile and Vietnam signed a Free Trade Agreement (FTA) As of 2017, Vietnam is Chile's second largest trading partner in the ASEAN Vietnam and Chile are both members of the Comprehensive and Progressive Agreement for TransPacific Partnership (CPTPP) (low tariff and non-tariff barriers - tax friendly) The two countries have been deepening their trade and economic relations 1.2 Economic Chile is characterized by a developed foreign trade economy and strong financial institutions Since the 1990s, Chile's economy has grown quite steadily (average 6%/year) and is one of the leading high and sustainable growth countries in Latin America In 2011, Chile was ranked 31/133 in competitiveness by the World Economic Forum Before the Covid-19 epidemic, GDP in 2020 was 252.94 billion USD, declined due to lockdown measures However, entering the third quarter, the positive signs are positive amid the easing of Covid-19 restrictions, strong economic activity growth and business sentiment increased sharply According to forecasts, the Chilean economy will continue to recover not only in the last months of 2021 but also continue to grow in the following years 1.3 Socio-cultural Chile has unique cultural features spread throughout its territory The interesting feature in this country is the young population Therefore, sports and outdoor activities are very popular In daily life, Chilean demand for healthy food products continues to grow with 18 increasing health awareness and disposable incomes Consumers have an increasing interest in premium products which contain natural ingredients such as processed foods with natural ingredients, low cholesterol foods, fat free foods and low salt/sodium and low/no sugar The country's growth has enabled consumers to have better quality products Price remains the main factor in purchasing decisions but other determinants are quality, durability, technology, customer service, customer experience, and availability Respect for the environment is becoming increasingly important in consumption decisions In Latin America, Chile is considered the most aware of environmental issues Consumers are paying increasing attention to labels on the products they consume 1.4 Technological Chile ranked 1st place in Latin America in the logistics performance with great connectivity It has modern transportation infrastructure This gives a privileged position as a platform of services and technologies 1.5 Beverage market in Chile According to an article published by the “Food and Beverages Trade Association” (AB Chile) between January 2015 and March 2016 the formulas of 1,550 products were altered because of the nutritional labeling law In the soft drinks sector, some companies took the new labeling laws as an opportunity to expand their offer and improve distribution of reduced sugar variants and other health-oriented product types “Light” beverages represent 22 percent of the total beverages market According to post contacts there has been a strong increase in water consumption and a decrease in the consumption of carbonated beverages Most carbonated drinks in Chile have high levels of sugar and artificial ingredients, which are harmful to customers’ health In fact, bottled water is at its best, registering a 138 percent increase in 10 years in sales volume of total liters in the country Annual consumption of healthy beverages in Chile went from 13 liters per capita in 2006 to 31 liters per capita in 2020 In contrast, carbonated beverages have been experiencing a steady decline According to estimates by Euromonitor International by 2025, an average Chilean will buy 100 liters of soft drink per year, which will mean a percent decrease per year People spend much more money on bottled water than before and the challenge from now on is to ensure a healthier product while maintaining the taste and quality Regular cola carbonates will 19 also likely lose ground to flavored bottled water, with many Chileans viewing these products as offering a good balance between health and refreshment at an affordable price SWOT Analysis Internal Strengths Healthy product line Excellent customer service & modern production technology Known for ethical business Advertising Internal Weakness Weak brand image & reputation in global market Lack of strong competition No experience in Chile's market External Opportunities Chilean demand for healthy food increases Modern transportation infrastructure High income economy Young population S.O W.O Run advertising campaigns to Hire Chilean experts with introduce healthy product line on experience to exploit Chile’s social media (S1,S4,O1,O4) high income market Provide excellent delivery service ( S2, O2) Offer flexible product prices to different classes in Chile (S1, O3) External Threats Competition from rival brands Implement of the New Food Law Demand for clean label products S.T Marketing the ethical image of the business to reduce competitive pressure (S3,S1) Increase product quality to differentiate from competing brands (S1,S2,T1) Creating label products with clean ingredients and in low calories ( S1,T2,T3) W.T Invest in brand image and clean labels to compete and meet the new demand of consumers 2.1 External Opportunities 20 2.1.1 Chilean demand for healthy food increases ( mentioned in PEST ) 2.1.2 Modern transportation infrastructure Transantiago, the public transport system in Santiago, Chile, which comprises a bus rapid transit (BRT), feeder bus lines and a metro system, completed its fourth year of operation in February 2011 It is considered the most ambitious transport reform undertaken by a developing country according to the World Resources Institute 2.1.3 High income economy The economy of Chile is a market economy and high-income economy as ranked by the World Bank The country is considered one of South America's most prosperous nations In May 2010, Chile became the first South American country to join the OECD 2.1.4 Young population Chile has a young population structure As we can see the Chile population pyramid in 2020, the population is concentrated in people from 15 to 65 years old 2.2 External Threats 2.2.1 Competition from rivals The main largest rivals are Coca-Cola, Pepsico and Bilz y Pap Bilz y Pap is the combined marketing name of the two most popular and highest selling domestically- 21 produced soft drinks in Chile Bilz y Pap is owned by Compía de las Cervecerías Unidas (CCU) - a Chilean producer of diversified beverages founded in 1902 2.2.2 Chile implement the New Food Law In June 2016, the Chilean government implemented the Law of Food Labelling and Advertising The package of evidence-based food policies includes mandatory frontof-package warning labels on unhealthy foods and beverages, restrictions on childtargeted marketing of these foods and beverages, and a ban on sales of unhealthy foods and beverages in schools → Changes in people’s purchases of foods and beverages in calories, sugar, sodium and saturated 2.2.3 Demand for clean label products Consumers are paying increasing attention to labels on the products they consume III ENTRY STRATEGY TO EMPLOY From our analysis, exporting seems to be the most feasible way to deliver the product to our valuable Chilean customers ● All the manufacturing stages will be done in Vietnam to keep the lowest cost and lower compared to doing that in Chile Moreover, keeping all the stages in a developing country would lower the cost of logistics as well as it would better the risk management among stages ● Moreover, positive agreements between the countries, especially VCFTA and CPTPP have allowed exporting goods to Chile to face low tariff and non-tariff barriers Therefore, the price of the product can be even more competitive ● With the vision of exporting, entering the market would be challenging The company would have to stand on its own for a long period to gain loyal customers with trust-worthy products bit by bit On the other hand, this is a safe move to gain extra revenue and profits to take over the market share over time There could be many tactics leveraging this strategy, one of them can be smart and persuasive marketing and advertising actions to make the customers try and love the products Fizzie’s export plan: Product or Service ● Sugar-free carbonated fruit drink (peach, grape, watermelon, pineapple) ● Clean label packaging to adjust Chile’s Law of Food Labelling and Advertising and healthy consumer trends Promotion 22 Fizzie will the following activities: ● Advertise on traditional & new medias: ⚬ Traditional media such as broadcast television, cable and satellite, print, and billboards ⚬ Popular social media platforms like Facebook, Instagram, Twitter, and YouTube to build brand awareness ● Launch influencer marketing campaigns ● Use free samples, sales coupons to boost sales Distribution channels Fizzie will the following activities: ● Sell products on the E-commerce market: international e-commerce retailers present in the Chilean market like Alibaba, Groupon, the E-commerce and Shopping websites like Falabella, Cencosud and Ripley ● Sign a deal with Walmart Chile, the largest supermarket chain in the country in terms of revenue with a market share of approximately 41.9%, operating around 363 stores under the Líder and Express de Líder brands 23 Part C FROZEN FRUIT Reasons to choose Frozen Fruit : There are some primary reasons for selecting Frozen Fruit as a Related Business Diversification The Global Frozen Fruits Market size was assessed to be USD 27.1 billion in 2021, and it is estimated to reach a value of about USD 30.7 billion by 2026 at a CAGR of 5.3% over the prophesized period Frozen fruits have been kicked out of the food category immediately as the demand for convenience is increasing worldwide Buying in bulk and saving money Buying in bulk is one of the easiest ways for businesses to reduce their spending When you buy in bulk, the price per unit tends to go down, which means that you may be paying more in the present , but you’re saving over time Customers can’t buy perishables in bulk because the amount of their stock will go bad before they get the opportunity to use it But the frozen fruits can solve this problem Freeze dried fruit is both economical and convenient It enables us to take advantage of bargains and purchase large quantities of fruits that can be stored and defrosted whenever we need it and almost any fruit can be frozen Using the same trademark also allows Fizzie to reduce the cost of marketing and advertising owing to the present brand's awareness, as well as the work for doing market research Business’s scale Furthermore, given Fizzie's commercial scale, the company should pursue this sort of diversification Fizzie is not a huge firm, with relatively limited market segments and target clients, according to the corporation Fizzie attempted to avoid the dangers associated with the minimal investment needs and the security of the recognized opportunities and threats in the specialized sectors of business operations by moving into Frozen Fruit Customers’ tastes Frozen fruits are gaining popularity with consumers because they offer many advantages over fresh produce It has also revitalized the industry as awareness of the nutritional value and clean eating habits increase Furthermore, the increase in preferences for frozen fruit among people due to various benefits, such as shorter cooking time, convenience, no need to peel, wash and cut,etc It also ensures that Fizzie is offering up a wide variety of healthy options with fresh taste and low calories 24 REFERENCES: VietnamPlus (2021, October 11) Vietnam's economic growth to recover from Q4: Economist Available at: https://en.vietnamplus.vn/vietnams-economic-growth-torecover-from-q4-economist/209515.vnp (Accessed: 11 October 2021) VnExpress (2018, June 26) WHO backs Vietnam's new tax proposal on sugary drinks VnExpress International – Latest news, business, travel and analysis from Vietnam Available at: https://www.intelligentcio.com/apac/2021/10/12/vietnamstechnology-expertise-set-to-make-global-impression/# (Accessed: 11 October 2021) VnExpress (2020, May 27) Pandemic prods Vietnamese consumers toward healthy food and drinks VnExpress International – Latest news, business, travel and analysis from Vietnam Available at: https://e.vnexpress.net/news/business/pandemic-prodsvietnamese-consumers-toward-healthy-food-and-drinks-4105866.html (Accessed: 11 October 2021) Yang, S (2020, October 28) It's time to ditch the unhealthy sodas for these 16 alternatives The Thirty Available at: https://thethirty.whowhatwear.com/healthycarbonated-drinks/slide3 (Accessed: October 2021) Chile age structure (n.d.) IndexMundi - Country Facts Available at: https://www.indexmundi.com/chile/age_structure.html (Accessed: October 2021) Red Metropolitana de Movilidad (2005, July 14) Wikipedia, the free encyclopedia Available at: https://en.wikipedia.org/wiki/Red_Metropolitana_de_Movilidad (Accessed: October 2021) Sugary drink consumption plunges in Chile after new food law (n.d.) EurekAlert! Available at: https://www.eurekalert.org/news-releases/924895 (Accessed: October 2021) Bilz Y pap (2006, November 17) Wikipedia, the free encyclopedia Available at: https://en.wikipedia.org/wiki/Bilz_y_Pap (Accessed: October 2021) 25 Student’s Names Nguyễn Thảo My Vũ Thị Thu Uyên Tô Minh Loan Nguyễn Thị Trang Lê Tố Uyên Lê Minh Khuê 9 9 9 9 9 Nguyễn Thảo My Vũ Thị Thu Uyên Tô Minh Loan 9 Nguyễn Thị Trang 10 Lê Tố Uyên 9 9 Lê Minh Khuê 9 8 9.2 8.8 8.8 Average marks 8 26 ... coloring The Hau Giang plant is the first in Vietnam to use the Aseptic production technology for cup filling and sealing lines Instead of filling and capping only PET bottles, THP’s investment in. .. as the demand for convenience is increasing worldwide Buying in bulk and saving money Buying in bulk is one of the easiest ways for businesses to reduce their spending When you buy in bulk, the... life, Chilean demand for healthy food products continues to grow with 18 increasing health awareness and disposable incomes Consumers have an increasing interest in premium products which contain