MINISTRY OF FINANCE UNIVERSITY OF FINANCE MARKETING INTERNATIONAL MARKETING FINAL EXAM MARKETING PLAN OF AFC CRACKERS TO PENETRATE SINGAPORE MARKET OF MONDELEZ KINH DO JOINT STOCK COMPANY Member of gr[.]
MINISTRY OF FINANCE UNIVERSITY OF FINANCE - MARKETING INTERNATIONAL MARKETING FINAL EXAM MARKETING PLAN OF AFC CRACKERS TO PENETRATE SINGAPORE MARKET OF MONDELEZ KINH DO JOINT-STOCK COMPANY Member of group 2031702031210 Võ Thị Hoài Thương 1921005692 Phan Trang Linh 1921005498 Dương Nguyễn Anh Tuấn 1921005748 Bạch Tú Uyên 1921005760 Ho Chi Minh city, 2021 MINISTRY OF FINANCE UNIVERSITY OF FINANCE - MARKETING INTERNATIONAL MARKETING FINAL EXAM MARKETING PLAN OF AFC CRACKERS TO PENETRATE SINGAPORE MARKET OF MONDELEZ KINH DO JOINT-STOCK COMPANY Member of group 2031702031210 Võ Thị Hoài Thương 1921005692 Phan Trang Linh 1921005498 Dương Nguyễn Anh Tuấn 1921005748 Bạch Tú Uyên 1921005760 Ho Chi Minh city, 2021 INDEX EXECUTIVE SUMMARY 1.1 Essay Content 1.2 Company And Product Introduction SITUATIONAL ANALYSIS ANALYSIS OF THE INTERNAL ENVIRONMENT ANALYSIS OF THE EXTERNAL ENVIRONMENT STP STRATEGIES 10 INTERNATIONAL MARKETING GOALS AND OBJECTIVES 12 MARKETING PROGRAM .14 7.1 Product strategy 14 7.2 Price strategy .18 7.3 Place strategy 20 7.4 Promotion strategy 21 7.5 Action plan 22 EVALUATION, MEASUREMENT AND CONTROL 23 EXECUTIVE SUMMARY 1.1 Essay Content The group's topic is to develop a marketing strategy for AFC cake products under the Kinh Do brand when entering the Singapore market Our marketing plan will show that this will be an opportunity for AFC bakery products to enter and expand internationally The Kinh Do brand is known as the largest confectionery brand in Vietnam Through more than 20 years of product and brand development, Kinh Do has become close to Vietnamese consumers Kinh Do's products have been present in over 30 countries, in which AFC products have been exported to Japan and are well received With that success, our team decided to choose Singapore as the next market to bring AFC bakery products to international consumers The team has developed a marketing strategy that helps products and brands quickly reach the consumer market and target customer segments, becoming the main source of supply for this market Before planning the marketing, we conducted research and analysis on the brand, consumer market, and competitive market, identifying strengths, weaknesses, opportunities, and challenges of AFC bakery products in the confectionery market in Singapore In addition, there are micro and macro factors affecting the brand's marketing strategy The next step, which we have selected and come up with the STP strategy for AFC bakery products, is choosing the right customer segments, target customers, and brand positioning, which we have studied very carefully The importance of planning, incorporating the 4Ps (product, price, distribution, promotion) is an important component of a strategy to bring products to new markets and attract consumers Finally, a specific marketing plan, certain milestones, methods of implementing constraints, expected revenue and profit, and budget for advertising activities to better define goals when put into operation 1.2 Company And Product Introduction 1.2.1 About Kinh Do Joint Stock Company 1.2.1.1 Brief introduction about Kinh Do joint stock company Founded in 1993 with a total investment capital of VND 1.4 billion, the number of workers is 70 people Over 20 years of product development and branding, Kinh Do has become closer to customers From daily confectionery products, food products, and Tet gifts to ice cream, milk, dairy products, and expanding equipment products, Kinh Do has become a famous and powerful company action in Vietnam Currently, the group has factories and 11 member companies specializing in the production of confectionery, ice cream, and soft drinks, building an address with more than 7600 employees In addition, the company also owns a retail chain with more than 200 distributors and 70,000 retail outlets Kinh Do's products are present in 30 countries: the USA, Canada, Mexico, Japan, Taiwan, etc Kinh Do's main market is Vietnam, which accounts for 90% of sales In addition, it is also exported to countries such as the US, Cambodia, Japan, and Taiwan Each specific product line Kinh Do always identifies a specific target customer Kinh Do's products are suitable for many different customers, with different income levels, but mainly medium and high-class Brands ranked No in the top 10 favorite brands in Vietnam Kinh Do's factory system is invested with the leading scale and modern technology in Southeast Asia: Kinh Do factory in Binh Duong Kinh Do factory in the North KIDO Ice Cream Factory Vision: “For a more beautiful life every day”; “Taste for Life” Kinh Do recognizes the increasing requirements of customers' food products, which must be of high quality and ensure safety Therefore, Kinh Do has brought to consumers safe products in terms of quality as well as convenience when using With the best meeting the needs of customers, Kinh Do wants to become a leader in the food industry Mission Kinh Do's mission to consumers is to create suitable and convenient products, including common and essential foods, supplements, and beverages The business provides safe, delicious, nutritious, and convenient foods for everyone to stay at the forefront of the food market For shareholders, Kinh Do's mission is not only to bring maximum profit in the long term, but also to perform well in risk management, making shareholders feel secure in their investment With partners, Kinh Do's mission is to create sustainable value for all members of the supply chain by ensuring a reasonable level of profit through innovative products and services Satisfy consumer trends and satisfy customers' wishes In order to contribute to the development and support of the community, Kinh Do always actively creates and also wishes to participate and contribute to community-and social-oriented programs 1.2.1.2 History of Kinh Do Joint Stock Company: 1993: Established Kinh Do company 1994: Launching snack products 1996: Built a factory in Thu Duc 1997: Launching fresh bread products 1998: Launching mooncakes and chocolate candy 2000-2001: Building Kinh Do factory in the North 2003: Acquired Wall ice cream factory from Unilever and established KIDO'S Company 2004: Established Kinh Do Binh Duong Company, Kinh Do Northern is officially listed on the stock exchange 2005: Kinh Do (KDC) is officially traded on the stock exchange Kinh Do invests in the Tribeco company In the same year, KC launched the Sollie cake product 2007: Kinh Do and Eximbank become strategic partners Kinh Do and Nutrifood became strategic partners In the same year, KC invested in Vinabico KDC has launched the Wel Yo yogurt product 2010-2012: Kinh Do merged Kinh Do companies in the North, KIDO and Vinabico, into KDC, shaping a new strategic direction on the group scale 2012: Kinh Do signed a strategic partnership with Ezzaki Glico Japan For the third time in a row, KDC was voted as a National Brand Also in the same year, Kinh Do launched Pocky cakes and Sachi rice cakes 1.2.2 AFC crackers Established in 1999, AFC quickly affirmed its position when it quickly appeared at all large and small retail locations across the country and is loved by many consumers occupying about 56% of the market share in Kinh Do Bringing a significant source of revenue for the business Features: The perfect combination of premium ingredients and European production technology has created excellent quality AFC cakes AFC is a savory cake with the characteristics of a thin, crispy, and spongy cake This is a low-sweet, low-fat cake which is supplemented with many healthy nutrients, such as calcium, Vitamin D, fiber, etc So, it is very suitable for the trend of enjoyment of today's consumers In AFC cakes, in addition to calcium, which is a fundamental nutrient, good for bones and roasting, each AFC cake line is supplemented with specific nutrients In addition, the ingredients in AFC cake are also very suitable for those who care about their body shape The amount of calcium in 100 grams of AFC cake meets about 50% of the body's daily calcium needs Therefore, consumers will be comfortable and secure about their body or health needs and their families Origin: Produced directly at Kinh Do's factories Classification: The newly improved nutritional AFC cake is added with potatoes to make the cake more delicious and crispier with many attractive flavors AFC also meets specific nutritional needs with healthy nutrients Depending on their taste and nutritional needs, consumers can easily choose the right cake for them AFC Original supplement with Vitamin D to help the body absorb calcium best AFC Hi-Fibre adds fiber to help the digestive system work well and maintain a slim figure AFC Western is rich in DHA to help enhance thinking and memory AFC Active adds Vitamin E for youthful skin AFC Plain is low in sugar and helps protect the cardiovascular system SITUATIONAL ANALYSIS Strengths Cakes have many different flavors such as: seaweed, wheat, vegetables, beef steak, green tea, cheese Each flavor or ingredient offers a different benefit, such as: AFC vegetables, seaweed: double the amount of fiber to maintain a healthy digestive system for a slim fit AFC wheat flavor, beef steak flavor: calcium and vitamin supplements for strong bones ð Meet many needs, different preferences of customers in Singapore There are many types of bags, cake boxes with different weights: 300g bags, 200g paper boxes, 100g paper boxes, 60g mini boxes => many suitable choices for each family As a light food but with many nutrients such as calcium and fiber, it is very suitable for the quite busy lifestyle of Singaporeans The parent company is Mondelez international - an American multinational food company, very strong in snacks Weaknesses Not really active in machinery, equipment and materials Oppotunities With increased income, Singaporeans are willing to pay to buy higher quality products or food which saves labor and processing time As the 2nd highest per capita income in Asia, Singapore is one of the most open economies in the world, with no tax rates imposed on food items except for alcoholic beverages Singapore's food source is completely dependent on imports, with no domestic production The country does not impose any import taxes on foods and beverages, except for alcoholic beverages and tobacco On supermarket shelves in Singapore, we can see a growing number of convenience and ready-to-eat foods Customs clearance for feed products is done electronically and the process is completed in less than 48 hours Expanding overseas market Young population, busy lifestyle and attention to health, very suitable for AFC cake to penetrate into Singapore market Threates Singapore is a multi-ethnic country, leading to difficulties in consumption, difficulty in meeting demand because of many different needs of each country Compete with many other famous confectionery in Singapore The initial penetration will be new, so it will be difficult to meet the needs of customers in Singapore The cost of raw materials, raw materials also change somewhat Difficulty in creating a cake flavor suitable for Singaporean culinary culture ANALYSIS OF THE INTERNAL ENVIRONMENT Internal enterprise Kinh Do is one of the leading confectionery companies in Vietnam The company's senior human resources are powerful, the Executive Board has a vision, avoiding risks in the supply chain Most of the companies are highly skilled and well-trained workers, which is Kinh Do's strong point to compete with other companies With the management divided into strategic subcommittees, human resources subcommittee, salary and bonus subcommittee, audit subcommittee, the company has clearly defined ranks and in each division will fulfill its responsibilities and duties its service The rhythmic coordination of staff, employees, and leaders according to the core values set out by the company has helped Kinh Do build its image not only in Vietnam but also in other countries export company Competitors Currently, in the confectionery industry, there are many domestic and foreign manufacturers The categories of cakes and candies on the market are also diverse and rich in categories Confronting Kinh Do are manufacturers such as Bibica, Hai Ha, Orion, Huu Nghi, etc In Vietnam, although the market is very large, companies are still unable to capture the full domestic market share for themselves The current market leader Kinh Do only accounts for 20%, followed by companies like Bibica and Huu Nghi with about 14-15%, the rest belongs to foreign companies, importers and small companies other It can be seen that the confectionery market not only has domestic competition, foreign companies have also begun to enter the Vietnamese market, the cake models are also more diverse, but the taste is also favored by the majority of Vietnamese people Vietnam is the 15th most populous country in the world with nearly 100 million people, of which the population under 30 years old accounts for 51.8%, this is the age with the highest demand for confectionery Besides, the average income of Vietnamese people is gradually improving, which is also a factor that makes the food production industry increase Because of the high growth rate along with fierce competition from other companies, the company will have many opportunities to meet the market demand and gain a number of loyal customers Kinh Do's products not have much difference compared to other suppliers, so customers choose based on the price and the age of the company This makes it more difficult for the company to compete both domestically and abroad Currently, many confectionery companies have entered the market with preferential prices Not only competing with domestic competitors, when exporting to Singapore, the company also has to compete fiercely with other crackers brands such as Ritz, Plain, Levain, Pepperidge Farm, etc These are brands specializing in the production of cakes crackers are favored by Singaporean consumers In Singapore, the confectionery industry is invested by many companies, from domestic enterprises to international enterprises It can be seen that Kinh Do will encounter many competitors in the Singapore market However, AFC crackers also have the outstanding advantage of diverse taste and are good for health Suppliers Most of Kinh Do uses domestic and imported raw materials in large quantities Raw materials account for up to 70% of the product's cost, so fluctuations in the supply of raw materials will greatly affect the company's profit In recent years, the price of raw materials in Vietnam has increased sharply, especially the price of flour, which has had a period of extreme fluctuations, causing difficulties for some businesses Customers In the market, customers are an important competitive goal for Kinh Do, it affects all production and business activities The company's customers are divided into groups: consumers and distributors (wholesale and retail) With the group of customers as consumers, the company is divided into main areas depending on the needs and purposes of the customer group Urban market area, rural market area, and mountainous market area Each market area, based on different income levels and needs, the company also offers a diverse product portfolio to meet all needs of customers With the group of customers being distributors, this is the company's main customer group, consuming most of the company's products Kinh Do owns a large distribution system, second only to Masan and Vinamilk With more than 300 distributors and 200,000 retail points, Kinh Do has become the company with the largest distribution system in the industry In addition, the company's distribution network also includes large supermarket chains such as Co-op Mart, Big C, Metro, along with its own chain of stores, Kinh Do Bakery Thanks to the large distribution network, customers can access the company's products easily and conveniently ANALYSIS OF THE EXTERNAL ENVIRONMENT Demographic Singapore is a country with a large number of people of working age or older, in addition to international students and immigrants coming here to work Demand for nutritious, convenient, and quick-to-use foods has also increased to meet Singapore's rapid growth AFC crackers will become a great choice to meet the convenience and nutritional needs of Singaporeans AFC is not only a snack for young people but also a nutritious dish with high calcium content and fiber source from oats, which helps in digestion and helps keep bones strong The population in Singapore in the future is predicted to have an aging population However, the number of immigrants such as workers and international students is the young audience that the product targets Economic Vietnam's economy is developing and has a certain position as one of the most dynamic countries in the Asia Pacific It is a condition for Vietnamese enterprises to develop and bring their products to penetrate international markets Singapore is a target that many businesses aim for Singapore is an economically developed country, ranked 4th in Southeast Asia Strongly developing in two fields of industry and service, attracting a large number of domestic and foreign workers People's quality of life has increased, and health protection is also a need that people pay attention to AFC crackers is a brand that brings essential nutrients to consumers at a reasonable price Socio-Cultural Singapore is one of the Southeast Asian countries possessing many ethnicities, religions, and rich cultures, this diversity creates strengths for this country These cultural features are harmoniously mixed to create the characteristics of Singapore but still have bold Asian beauty Seizing the strength from Singapore, Mondelez Kinh Do Company can develop AFC crackers product line here With the advantage that AFC biscuits are rich in nutrients, convenient, easy to use, and bring many familiar and delicious Asian flavors, it will be a great choice for Singapore consumers Besides, this diversity can also become a barrier to be able to meet the huge demand of the market Technology Singapore is one of the most modern cities in the world With its modern system and technology, it has helped the country to develop more, the quality of life of the people is more assured This is an opportunity to create a premise for businesses to develop AFC crackers when coming to Singapore will be improved production thanks to this country's modern technology Not only ensure product quality but also enhance value and attract consumers here Ecological 10 Singapore is a country with a fairly rich ecosystem, meeting the tourism needs of the market However, the natural factors to meet the agricultural industry are not enough, this is also the reason why this country focuses on developing industry and services The issue of sourcing quality and reasonable ingredients became a challenge for Mondelez Kinh Do when bringing AFC crackers to the Singapore market Political forces Vietnam is a country under a socialist regime, a political system with one Party as the leader A stable political environment is a condition for free enterprises to develop Besides, Vietnam's role in the world is increasingly being consolidated, which is an opportunity for businesses to promote the import and export of goods Kinh Do is a bright candidate with many years of experience and rich nutritional products The Singapore market is a welcoming place for businesses with quality products from other countries This is an opportunity for Kinh Do to expand its market in general and the consumer market for AFC crackers in particular STP STRATEGIES Segmentation Segment Segment 11 Segment Pupils and Workers Demographic students Housewife Age: 25-40 Age: 25-50 Age: 15-24 Income: financial Gender: the majority Income: financial independence are married women dependence or < and manage 2000 SGD per household chores month Income: financial hic Georap independence Living and working in Singapore Physchographic Often interested and Often interested and The majority will be want to try new want to try new interested in the products products price and quality of Pay attention to The majority will be the product product packaging interested in the Pay attention to The majority will pay price and quality of the product attention to the product origin and price of the product Share and product safety recommend good products to others 12 Behavioral Choose products Choose products Select products by according to taste, according to price price, taste price and be and convenience attracted by product because there is not They are interested packaging much time Can actively learn Less actively learn have little time to product information product information learn but pay little and pay little attention to them attention to them They are the ones Try the product as They can buy the directly, but many many times as the product again members of taste of the product Recommend to different ages in the is varied Share with friends friends and colleagues in product information but who buy the product family use it together and recommend Recommend the good products product to friends, family members Targeting AFC crackers are delicious and nutritious products suitable for consumers of all ages However, the target customer that the brand is targeting AFC is housewives These are difficult customers when it comes to choosing products, but they are the ones who help the product get closer to other customer segments through the introduction and common use of family members In addition, with the right quality and price of AFC crackers, it will easily conquer housewives when using the right marketing methods Positioning The AFC crackers brand has defined for itself two visions "For a better life every day" and "Taste for life", intending to bring the product closer to consumers Therefore, the positioning of the AFC crackers brand is quite cheap with excellent quality, suitable for many ages, delicious taste, and many healthy nutrients 13 INTERNATIONAL MARKETING GOALS AND OBJECTIVES International Marketing Goals Increase brand awareness: businesses have just entered a new market The most important thing is the awareness of customers about the brand and products in the market This will help the product be used by many people have access to the company's AFC cake products and attracts consumers to look for AFC cakes when intending to buy confectionery products Kinh Do's goal is to increase the level of product advertising and popularize the AFC cake brand among users and customer segments Through campaign communication, marketing can measure the level of brand awareness and product interest of users in this country This condition determines the success of the product when entering a new market Increase sales: improving the level of consumer awareness about the product will contribute to an increase in sales When sales increase, it means that the strategies and goals of the 14 business are correct In addition, the product quality and taste are suitable for the needs of consumers in the market This is it Increased sales are the first step to the success of the business later Customer satisfaction with the company's products and services: with advanced technology production lines, product quality is carefully tested before reaching consumers AFC bakery products will satisfy customers with the quality and taste of products, as well as provide peace of mind when using AFC cakes Besides, the service quality of the business will be constantly improved to give customers the best shopping experience This will retain customers, bring trust and a good image in the minds of customers Increase revenue: the revenue target will determine the level of income that the business expects through sales and promotion strategies Profitability is the main goal of the business activities of enterprises Profitability determines the ability of the organization to maintain business operations Maintaining revenue growth is essential for businesses, so measuring revenue will help track brand growth and product sales Expand the product distribution area: after developing in the target market that the enterprise offered in the first stage, there is a stable customer base and consumption level Kinh Do's next goal is to develop the AFC cake to many other areas in Singapore Instead of only distributing at large retail supermarkets in the central area, the business wishes to bring AFC widely to smaller distribution points and rural areas To reach more customers, increase the popularity of the product International Marketing Objectives Those are all goals the company wants to accomplish, but the main purpose of the company is to focus on promoting goals: giving brand recognition in the first year and expanding distribution channels to increase revenue These are the two goals that Kinh Do wants to accomplish when entering the Singapore market International marketing goals For the goal of increasing customer recognition in the first year, the company will implement the following strategies: In the first year, the company will promote marketing activities and marketing activities through forms such as outdoor advertising, increasing 15 advertising on the Internet, and giving samples to large and small supermarkets With the desire to increase 60% brand awareness of consumers in Singapore coming to the company Implementing the market penetration pricing strategy is an opportunity for more customers to know about AFC cakes Promote communication about products, companies, and production scale of products from Vietnam to Singapore Branding in newspapers, TV, Internet For the next year's goal of expanding the market to increase sales, the company implements the following strategies: To expand the market, the company will not market Singapore into the following groups: Group 1: includes people who often spend and buy products of the company called loyal customers In this group, the company needs to strengthen trust, maintain product quality and brand image Group 2: The group of people who both buy the company's products and also buy the competitors' products is called the mixed customer group Group 3: includes customers only Often buys a competitor's product, called a competitor's customer group Group 4: includes current customers who not have much information and opportunities to buy products, called potential customers Group 5: includes those who never buy and consume products including Buddhist monks, Hindus, dieters, etc The expansion of the retail market into groups helps the company to clearly determine which market to expand in Groups 2, 3, will be potential customer groups that the company needs to pay attention to expand To increase sales, the company also sets specific KPIs as follows: Attracted more than million customers in the first years 16 Get 500,000 interactions on Fanpage and on the Internet Selling 700,000 products per year MARKETING PROGRAM 7.1 Product strategy With modern technology lines, long experience and strong development in the confectionery market in Vietnam Taking product quality as the core of its business has helped AFC cakes gain the trust of consumers in the Vietnamese market In order to expand the market and develop further, Kinh Do's AFC cake will penetrate into the Singapore market Product Dimensions Core Product AFC cake is a light food but brings high nutritional value and is convenient for consumers There are different flavors to meet the needs of customers, and different cultures in Singapore AFC vegetable flavor, seaweed flavor: double the amount of fiber to maintain a healthy digestive system for a slim fit body AFC wheat flavor, beef steak flavor: calcium and vitamin supplements for strong bones Meet many different needs and preferences of customers in Singapore Packaging Visual Elements Each different flavor will bring a product packaging with different colors to help customers easily distinguish the type of flavor they need to buy But especially still blue, yellow and red, these three colors are used mainly Especially, these colors are very suitable in Singaporean culture because they are eye-catching, the packaging of AFC cakes will not use purple and black because these two colors are symbolic colors for bad luck in Singapore The main packaging shape of the cake will be in the form of a rectangular box and a bag, making it easy to arrange on store shelves in Singapore supermarkets, easy to print the logo and name of the cake on 17