NATIONAL ECONOMICS UNIVERSITY MARKETING FACULTY FINAL REPORT TOPIC MARKETING PLAN FOR A NEW COMPANY KẾ HOẠCH MARKETING CHO DOANH NGHIỆP GRANOLA BEE ORGANIC GẢNG VIÊN LÊ THỊ THU MAI ĐẠI HỌC KINH TẾ QUỐC DÂN MÔN TIẾNG ANH NGÀNH MARKETING
NATIONAL ECONOMICS UNIVERSITY MARKETING FACULTY -*** - FINAL REPORT TOPIC: MARKETING PLAN FOR BEE ORGANIC Class: Marketing Management CLC 62D Subject: English for Marketing Group: Group Vuong Hoang Minh Ngoc – 11202896 Doan Thi Mai Linh - 11202114 Vu Quynh Trang – 11207288 Nguyen Phung Thao My – 11206191 Vu Mai Anh – 11204567 Phung Minh Hoang – 11205365 Nguyen Thi Nam Phuong - 11203196 Ha Noi, 11/2022 TABLE OF CONTENTS CHAPTER 1: MARKET ANALYSIS I About Bee Organic .2 II Macro environment III Analyze the competitive marketing strategy IV SWOT Analysis .6 CHAPTER 2: SEGMENTATION, TARGETING AND POSITIONING I Segmentation II Targeting III Positioning .10 CHAPTER 3: MARKETING PLAN 11 I Product 11 II Price 12 III Place 12 IV Promotion .14 CHAPTER 4: MARKETING EVALUATION 16 I Evaluation criteria on social networking platforms .16 II Other metrics 16 CONCLUSION .17 REFERENCES 17 OPENING In recent years, thanks to the development of the globalization concept, more and more Vietnamese consumers are adapting lifestyle from the other culture, one of them is the eating habit Instead of consuming rice and other high-carbohydrates products, many customers tend to choose products that are low in fat and calories They are inspired not only by the foreign culture but also by popular figures in Vietnam Healthy eating lifestyle has led to the emergence of several high quality products, one of them is the granola- a mixture of oatmeal and nuts such as cashews, walnuts or almonds This product offers customers not only a high amount of nutrients but also delicious flavor Recognizing the benefits from Granola and its potential in the Vietnamese market - Bee organic - a new enterprise in Vietnam has decided to develop its own granola product with several unique features In this report, the team is going to analyze several marketing environment factors that may affect the development progress of Bee organic, therefore conducting a marketing mix plan in order to introduce the Bee organic granola to the market CHAPTER 1: MARKET ANALYSIS I About Bee Organic Our product category is healthy food Granola is considered a healthy breakfast cereal It’s a toasted mixture of rolled oats, nuts, dried fruit, seeds, and other grains, It is caloriedense, as well as rich in protein, fiber, and micronutrients Company issue: Bee Organic is a new face to the market Plus, its products are also newreleases Therefore, the company does not have much understanding of market place, customer behavior and exact estimation of customers’ demand Data collection: Primary data is accumulated through interviews, surveys and taste tests with consumers Secondary data is online reviews from other products in the same product category, information about healthy lifestyle and articles about consumers’ eating and shopping habits Objectives: - Finding the best ways to approach company’s target market - Identifying significant traits of the market - Illustrating customer behavior and demands - Making product decisions (flavors, weight per pack, ) - Deciding on feasible content promotion platforms II Macro environment Demographics According to the General Statistics Office, the urban population of more than 33 million accounts for 34.4% of the total population of the country The average annual population growth rate of urban areas is 2.64%/year, more than twice the average annual population growth rate of the whole country and six times higher than the average population growth rate of rural areas in the same period According to data from the National Institute of Nutrition, the adult obesity rate in Vietnam is 6.6% The highest is in the age group 45-54 accounting for 8.95%, especially in women is 8% This is a favorable factor for the development of the cereal industry in our country and in fact shows that the annual consumption of cereals is strongly concentrated in urban areas, aged 18-5 Economy Income has been reduced due to the COVID-19 epidemic situation But it’s getting stabilized now Legal and political Institution: Market economy In 1995, it joined ASEAN and established diplomatic relations with 171 countries The most important turning point is 2007 Vietnam officially became the 150th member of WTO The above events have had a significant impact on market expansion, revenue growth, to come up with appropriate marketing strategies Bee Organic fully meets the regulations on food hygiene and safety such as: Having an appropriate location and area, having a safe distance from toxic sources, pollution sources and other harmful factors; Having enough water to meet technical standards for food production and trading; Having adequate equipment suitable for raw material handling, processing, packaging, preservation and transportation of various foods; have sufficient equipment, tools, means of washing and disinfecting, antiseptic water, equipment for prevention and control of insects and harmful animals; Has a waste treatment system and is regularly operated in accordance with the law on environmental protection; Maintain conditions to ensure food safety and keep records on the origin and origin of food materials and other documents on the entire process of food production and trading; Comply with regulations on health, knowledge and practice of people directly producing and trading food Culture The trend of going green and using plant-based products is becoming popular in Vietnam In the context of the raging Covid-19 epidemic, people are required to social distance Consumers tend to spend time taking care of themselves, following a scientific and healthy diet (Healthy - Eat clean) According to statistics of a market research company, up to 80% of Vietnamese consumers are willing to pay more to buy products with environmentally friendly materials, branded "green" and “clean” One of the characteristics of Vietnamese people's concept is that they often use what they feel secure about prestige and quality, so they rarely change Therefore, when Bee Organic creates trust with consumers, there will be many loyal customers with the product Technology Bee Organic use organic farming processes that not use chemicals We also use technology to prevent the influence of temperature, humidity, insects, animals, dirt, strange odors and bad impacts of the environment; ensure enough light; have specialized equipment to adjust temperature, humidity, ventilation equipment and other special storage conditions according to the requirements of each type of grain So we can keep the taste of nuts to the maximum Natural elements Binh Phuoc, Dak Lak, Central Highlands, have climates and natural conditions suitable for growing, preserving and processing nuts III Micro Environment Internal publics Bee Organic has established an overall marketing strategy: Initially approach consumers, increase brand awareness in the first months Then launch new products, drive sales to break even and start turning a profit Bee Organic is expecting to become the leading brand in the cereal industry in years Bee Organic has a young staff capable of catching up quickly with social trends and adapting quickly to changes in the environment However, the position in the market has not been confirmed because it is a new business The team is unmature, so if there is a communication crisis, they may not have the experience to handle it Suppliers Bee Organic has strong relationships with suppliers in Binh Phuoc, Đak Lak, Tay Nguyên… such as Andy’s Farm, Nhà Đậu, HTFood,… Seeds purchased from farms must always undergo rigorous testing according to the following criteria: sensory (form, color, ), freshness, grain quality, These suppliers are all Vietnamese businesses, so they have competitive shipping and storage prices Marketing intermediaries Equipment and machinery were purchased by Bee Organic from domestic enterprises specializing in the production of baking materials For service and raw material suppliers, Bee Organic offers a reasonable price for importing raw materials, which is beneficial for both parties In addition, Bee Organic uses media publication production services such as videos and website banners from advertising agencies Customers Bee Organic targets a group of customers who are interested in healthy eating trends, want to supplement nutrients from plant-based products, people who participate in sports activities, people who want to lose weight vegetarian In addition, this group of customers are often exposed to information on social networks and quickly update trends Competitior Direct competitors of Bee Organic are Nofa Healthy Food, Post Great Grains, Quaker These brands have years of experience in the organic food industry and have strong brand awareness Indirect competitors of Bee Organic are business providing organic food alternatives, such as Pete’s Luxury Wholefoods and Dalia Natural Public For investors, Bee Organic offers a reasonable return, regularly updates the sale process to help investors understand that their money is placed in the right product and is profitable For consumers, Bee Organic also offers increased incentives to turn them into loyal customers and promote the company's products For commercial organizations and government organizations, Bee Organic transparently discloses financial plans and complies with regulations on food safety and hygiene III Analyze the competitive marketing strategy Competitor product and pricing analysis Competitors: Some granola brands are becoming popular today such as Madegood, Superfood, Quaker, Calbee However, most of them not have official stores or distributors across the country, so they cannot guarantee quality and build the trust of customers Some brands have high prices Representative competitor: NoFa Healthy Food • Products: Granola (185,000vnd) and Extra Nut Granola (198,000vnd) • Quality (based on consumer reviews): Good • User Attitude: Positive Price: Average high Strengths in pricing policy: Mid-range and high-end product lines have high prices, so for each product sold, profits will be higher Weaknesses in the price policy: The price is high, so it can't reach many customers, customers will only buy once and have no intention of buying again because there is no price policy for customers who buy more than times Determining the position for the product In the first stage, the product strategy is to increase brand awareness > The price needs to be low to be able to reach a large number of consumers and sell more For promotion strategy: A discounted and psychological pricing strategy (But still guaranteed to be greater than production cost) will be an attractive promotion strategy -> Bee organic products are at the low price segment and good quality -> Cost leadership: attempt to control the market through being a low-cost producer IV SWOT Analysis Strenghs Service: Bee Organic offers a wide variety of products at various prices to serve the unique needs of each customer, along with detailed instructions for use to improve the effectiveness of the product or a reasonable diet during the use of the product if the customer has a need Idea: The business name inspired by the phrase "Be organic" is replaced by the homonym "Bee" to make a difference and impress customers The logo is a bee to identify with the brand name, building a certain identity in the minds of customers “Bee Organic” has the meaning of bringing life closer to organic products, using the image of a bee in both the name and the symbol to represent the hard work and development efforts of the business Along with the slogan "Gift for health", Bee organic is committed to giving customers the experience of organic living through completely natural products Besides, Bee Organic aspires to become a leading brand in the field of healthy food Products: Bee Organic's cereal products are of organic origin, are beneficial for health, supplement vitamins and substances, support the digestive process, prevent diseases and are low in calories All seeds are carefully selected with a highly reliable supply, ensuring both internal and external grain quality Packaging uses environmentally friendly materials or can be recycled or reused The packaging is designed to be minimalistic but still beautiful, while ensuring the aesthetics of the product, saving costs and protecting the environment Diverse packaging design serves the needs of customers Weaknesses Products are not diverse and rich because this is only a small model that is gradually improving and developing Our products not really have unique selling points to attract customers to purchase Opportunity Healthy food and organic food is becoming a trend, so our product is accessible to everyone This is the right diet for people to keep their health balanced Challenges This is a new and small model, so there may be errors in the product packaging process as well as the delivery process to the customer The product is not yet rich, so it is likely that customers will get bored and picky eating with that product There are many competitors in the market and some potential competitors in the future because this kind of food is a growing trend, so the competition between Bee Organic and other companies is very extreme CHAPTER 2: SEGMENTATION, TARGETING AND POSITIONING I Segmentation Demographic segmentation Based on age and gender criteria Women from 16 to 29 years old : People in this age group have a need to lose weight and take care of themselves, so they tend to choose to use organic products that provide enough nutrition for the body without gaining weight Women from 30 to 45 years old: People in this age group focus on health and especially aging over time Therefore, they will find products that help us to control cholesterol Men aged 18-40: People in this age group tend to actively participate in bodybuilding and fitness activities, especially the gym Therefore, they will look for products that help speed up the training process Based on income criteria With the characteristics of a mid-range product, Bee Organic targets customers with average income II Targeting Age Bee organic targets female customers with age ranges from 16 to 45 years old Young customers at the age from 16-29 years old: They are conscious about losing weight and keeping fit However, many people not have enough time to spend much on preparing healthy meals and have the habit of eating instant and convenient foods because they are often quite busy with work and study Older consumers from 30-45 years old: They are aware of taking care of their health and want to have a healthy lifestyle They tend to buy products that are highly nutritious and low in fat, calories This age group often buys products rationally That means they would consider carefully before buying, therefore the product with most noticeable feature or benefit would catch their attention Also, both age groups focus on goods that are affordable, and eye-catching in appearance Targeted customers’ lifestyle Women at the age from 16-45 tend to maintain or at least, have the intention to maintain a healthy lifestyle Healthy lifestyle includes main parts: Diet and Practice Even though most women at this age have eating habits with snacks, sweet, they are concerned that having a good diet will help them have a better life Almost every woman has gone on a diet regardless how skinny they are Dieting and cutting weight have become a trend How women go on a diet: They know they could not get rid of their eating habit - therefore they go for an alternative - healthier, lower in fat Their usual favorite alternatives are: chicken breast for protein, more vegetable, nuts and grain for carb instead of rice - mainly used for breakfast and brunch/supper Moreover, women at this age tend to use social media and usually share their thoughts, lifestyle there with pictures of their meals They care about aging therefore they are fond of food that contains antioxidants There’s a group of customer go on a half or full vegetarian diet Targeted customers’ motivation Health motivation: There are several mains health motivation: prevent aging, prevent obesity and illness that are fat-related such as cardiovascular diseases Environment protection: Many consumers are concerned that eating meat may cause damage to the environment and biological diversity: they choose vegetables to be more ecofriendly External factors that affect customer’s buying behavior Through studying and researching the target customer of the brand, the team learned their food consumption culture as follows: Reference group: Granola consumption has been ubiquitous in many Western countries, it has become a trend in the Vietnamese healthy lifestyle community in recent years People who are interested in a healthy lifestyle regularly consult nutritionists, fitness trainers, and kols in the field of health and sports for training and food choices Some of the most famous influencers in this area are Hana Giang Anh, Chau Bui, Ngoc Khanh, These figures are opinion leaders because they can guide others’ mindset and behaviors about products they mention, as they have built reputation for a long time Once the opinion leaders know and use the product, other consumers can imitate or follow their advice Customers' behavior in each step of buying process - Need Recognition Customers' need emerges because of two reasons: + Internal stimuli, normal physiological or emotional needs, + External stimuli, like an advertisement, the smell of yummy food, etc Need recognition, whether prompted internally or externally, results in: “a want” Customers are affected by models, KOL, and KOC on social media or find themselves needing to follow healthy lifestyles to improve their physical appearance or having health issues and then spark a need for nutritious food Once consumers recognize a want, they would gather information to understand how they can fulfill that want, which leads to step two - Information search In the information stage: along with the improvement of modern search engine, consumers have plenty of ways to search for information about the product they want to buy Online platforms such as Facebook, Instagram, Youtube, and especially Tiktok are popular research methods Vietnamese are heavily affected by word-of-mouth reviews from their friends or family members Granola's targeted customers will basically search information about "diet meals" or "healthy food" at first and then seek for quality product brands by searching or reading reviews Being introduced on Koc's review TikTok clip or named in qualified health blogs will be an advantage for any granola brand - Evaluation of alternatives At this point in the consumer decision-making process, prospective buyers have developed criteria for what they want in a product Now they will evaluate their choices and see if there are any promising alternatives to minimize the risk of investing poorly Their evaluation is influenced by two major characteristics: Objective: Features, functionality, price, ease of use Subjective: Feelings about a brand (based on previous experience or input from past customers) Customers will compare Bee Organic to any other competitor's products Alternatives may present in the form of lower prices, nutrient content, higher quality of ingredients, additional product benefits, and product availability, - Purchase decision After gathering all facts and considering alternatives, customers will arrive at a logical conclusion on purchasing products if they recognize granola from Bee Organic is the best option They can buy products from supermarkets, e-commerce platforms (Shopee, Lazada, ), Bee Organic’s social media and website - Post-purchase evaluation Customers make reflective assessments: + Are they happy with the products? + Does the product quality live up to their expectations? + Is the price compatible? + Will they re-buy granola from Bee Organic? They can review products and even recommend to other people if they feel satisfied with them III Positioning Granola or mixed oatmeal and nuts has become a trend recently, especially on Tiktok - a platform which helps customers have a deep insight into the benefits as well as production progress of Granola Therefore the granola products in the market offer a wide range of prices for customers Popular competitor includes: Foreign imported granola - Post Great Grains: Appear earliest, usually sold at supermarket and convenience store, high quality and high price (160.000 VND for a package of 400gr) Vietnamese granola NOFA: Sold on ecommerce and other social media platform (average quality with medium price - normally these product contain mainly oatmeal or 2nd grade nuts to cut down on production expense) Bee’s organic granola: High amount of quality nuts with affordable price, normally it would take customers quite expensive to purchase the nuts such as cashews or walnuts individually (as they are exported products in Vietnam) Meanwhile Bee organic granola offer high amount of such nuts in per container of product to customers at the price of the 159.000, with high amount of nuts and dried fruits such as mango, strawberry 10 CHAPTER 3: MARKETING PLAN I Product Type of product: Shopping products Product: Granola, Granola mix oats, flax seeds, chia seeds, quinoa seeds, almonds, macadamia nuts, sesame seeds, etc., dried fruits with flavors; other healthy nuts products like nuts powder, granola bar, Product mix Three levels of product: 2.1 Core product Granola is considered as a snack to be consumed at any meal of the day to fulfill the hunger It is a quick energy provider as it contains nutritious organic ingredients such as oatmeal, nuts and honey, which provide essential minerals and substances 2.2 Actual product Organic food is not just about vegetables Organic foods are diverse from fresh foods derived from animals and plants such as vegetables, meat, fish, eggs to processed products such as cereals, dairy products A common feature of organic food is naturalized care Specifically in the type of granola that the store serves, the main ingredients are oats, peanuts (peanuts), honey and a little rice It is combined with nuts such as flaxseeds, chia seeds, quinoa seeds, almonds, macadamia nuts, sesame seeds, etc., dried fruits and other flavors to add variety to the product and bring more choices for users 11 2.3 Augmented products When customers buy 500 grams of product or more (equivalent to large box / regular bags / 15 small bags) they will receive a special attractive gift of boxes of nut milk or boxes of yogurt In addition, if customers buy a combo of 500 grams of granola + pack of yogurt (4 boxes) + pack of nut milk, they will be given a gift box at a discount II Price Healthy food is a highly competitive market because consumers pay more attention to their health after the COVID-19 pandemic, it can be hard for new companies to get a foothold Bee Organic is new in this market, so we attempt to push new products by offering prices that are lower than the competition So we decided to choose penetration pricing, So we decided to choose penetration pricing, discounted and psychological pricing strategy, reasonable price with good quality, creating high brand awareness reasonable price with good quality, creating high brand awareness Our price for each product will be: ● 500g pack: 159,000 VND ● 250g pack: 89,000 VND ● 1kg gift box: 299,000 VND III Place Recommend the channel system Direct channel: Producer -> consumer: Online: - E-commerce: shopee mall, lazada mall, Tiktok shop - Social media: genuine facebook fanpage, Instagram - Genuine website Indirect channel: Manufacturer -> Retailer -> consumer: Online: shopee/facebook/instagram of distributors Benefit After the COVID-19 pandemic, many people changed their buying habits to online shopping These e-commerces/websites/social medias have a huge number of users, besides, everyone can get access to the Internet nowadays so it is easy to reach customers 12 across the country, convenient and easy to use It is easier to reach the customers and customers from all areas across the country are able to buy our products With this distribution strategy, Bee Organic can optimize the expenses such as rent, labor, decorate the stores, By excluding those expenses, the price that we provide to customers can be lower Challenges Larger marketing budget is required due to the fact that more efforts need to be made and resources need to be allocated in order to target the right audience and attract customers Customer relationship management also demands concentration as it is challenging to build meaningful interaction with customers via online channels with no real-face interaction A lack of inventory management: retailing on multiple marketplaces like shopee, lazada, complicates inventory management as the brand has to monitor and update each and every inventory This will eventually lead to overselling or overstocking because you won’t be able to strike the ideal balance when it comes to allocating your list When demand is high on one marketplace (sold out), but the performance is poor on another, even distribution may lead to overstocking On the other hand, ignoring the inventory count may lead to overselling, where the sum of orders from multiple marketplaces exceeds existing inventory Risk of plagiarism: other online stores can easily steal photos or information about the products, then sell different inferior quality ones to customers It is easy for them to mistake the fake for the authentic Action plans E-commerce: shopee mall, lazada mall, Tiktok shop Social media: genuine facebook fanpage, Instagram Product introduction posts are posted on Bee Organic’s social media These posts have a Call to Action button which leads customers directly to the main fanpage of Bee Organic, where they receive a personal consultant through online messaging The Customer Service Department takes charge of consulting and creating orders for customers Orders are 13 packaged by Bee Organic and delivered by contract delivery companies: Viettel Post, Giao hang nhanh, Giao hang tiet kiem, Ninja Van, J&T Express,… Genuine website: Bee Organic will develop a website which provides customers not only with shopping products but also blog posts or infographics related to “healthy eating lifestyle” In these posts there will be buttons or hyperlinked words which navigate customers to the main product There will be a purchasing site for customers if they want to buy online via website The difference between genuine websites and other online platforms that Bee Organic has distributed is: product display will be personalized based on own customers’ cookies, therefore they are likely to come across products that fit their taste and preference IV Promotion Goals • Increase brand awareness • Raise conversion rate and sales revenue • Attract new customers Public relation: PR activity is planned to be carried out in weeks Booking KOLs/ KOCs Bee Organic will collaborate with KOLs or KOCs who care for healthy eating habits and healthy lifestyles They will try granola from Bee Organic, then review them through their social media platforms (Instagram or Tiktok, ) Influencers that we decide on co- working with are Loan Hoang, Dino Vu In every weeks, one of them will upload a review post attaching pictures of them with Bee Organic products And we will also share their posts to Bee Organic’s social media and website Sales Promotion Sales discount: Bee Organic can discount its product for 10% in the first month the company joins the market This will attract more customers to buy Bee Organic products Another Sales promotion method that Bee Organic can use is buy more get more Customers can get up to 30% sales in price with a minimum bill of 500,000 VND Bundle Gift: Bee Organic can sell its product with a gift such as a spoon or food containers with Bee Organic logo on This not only attracts customers but also does marketing for the brand 14 Membership Discount: Customers can provide Bee Organic personal information to be members of the brand Membership is divided into many levels like Bronze, Silver, Gold, Platinum and Diamond Each level requires a specific amount of spending and comes with a specific number of discounts for the member Membership level Sales discount Bronze 5% Silver 10% Gold 25% Platinum 40% Diamond 50% Advertising activities Online Platform: Bee Organic can use advertising on social networks to attract more customers as customers nowadays research for information on multiple social platforms such as Facebook, Instagram and Tiktok Budget Activities Description Budget KOL, KOC Co working with Loan Hoang, Dino Vu to review products on social platform 50.000.000 VNĐ Bundle Gift Gift that goes with the products 20.000.000 VNĐ Ads Online platform advertisements 30.000.000 VNĐ 100.000.000 VNĐ Total 15 Timeline Stage Objectives - Awareness Engagement - Amplify Draw attention to the brand Bee Organic and the product Granola Attract new customers Time Activities - 01/01 31/1/2023 - Run advertisements on social media platforms (Facebook, Instagram, Tiktok) 10% discount Increase conversion rate Stimulate customers’ impulse buying Raise customers’ awareness 01/02 31/03/2023 - Product reviews from Loan Hoang and Dino Vu 30% discounts with a minimum bill of 500,000 VND Increase brand loyalty Encourage present customers to rebuy and new customers to purchase products 01/04 01/05/2023 - Bundle gifts Membership discounts - CHAPTER 4: MARKETING EVALUATION I Evaluation criteria on social networking platforms The effectiveness of communication campaigns can be measured through the following metrics: • Measure by media tools through metrics such as: Reach, viewing frequency, impression frequency, visits, interactions, hashtags used, • Social Listening indicators such as: SMCC.vn, TalkWalker • Measure website metrics such as traffic, paid traffic with Google Analytics II Other metrics • ROI: (sales/investment costs including marketing costs) x 100 • Conversion rate: This indicator can be calculated through websites or advertising software on social networking platforms • Profit calculated on advertising costs 16 CONCLUSION Healthy food is seen as a potential market, especially after the COVID-19 pandemic People are more aware of their health and this may help this market to develop significantly Bee Organic wants to use this opportunity to promote our products and build a strong brand awareness Through this report, we presented some analysis to bring out the Marketing Mix plan for the product and showed what we will in the future We hope that with this plan, Bee Organic will succeed in raising the awareness of customers about a healthy food brand with low price but the quality is still good We want to be the number company in granola category in Viet Nam so we must take action now REFERENCES Pham Thi Huyen Assoc.Prof., Nguyen Thu Lan, PhD (2022) - English for Marketing Future Market Insights – Granola Market Overview 17 ... eating habit - therefore they go for an alternative - healthier, lower in fat Their usual favorite alternatives are: chicken breast for protein, more vegetable, nuts and grain for carb instead of... need for nutritious food Once consumers recognize a want, they would gather information to understand how they can fulfill that want, which leads to step two - Information search In the information... consider carefully before buying, therefore the product with most noticeable feature or benefit would catch their attention Also, both age groups focus on goods that are affordable, and eye-catching