Trang 1 MINISTRY OF EDUCATION AND TRAINING HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY AND EDUCATION FACULTY FOR HIGH QUALITY TRAINING GRADUATION THESIS INDUSTRIAL MANAGEMENT SOLUTIONS F
Reasons for choosing this topic
The Internet has rapidly evolved over the past few decades, becoming an indispensable element of our daily lives across various sectors such as fintech, education, and shopping This growth has also significantly impacted marketing, leading to the swift rise of online marketing as a fundamental component of business strategy.
As online marketing continues to offer numerous advantages, an increasing number of businesses, including Hoang Anh Flavors and Food Ingredients Company Limited, are eager to enhance their marketing strategies With over 20 years of experience in the food and beverage industry, Hoang Anh has built a solid reputation for product quality and advanced technology Historically guided by the philosophy that "Good wine needs no bush," the company relied on traditional marketing methods, believing that superior products would naturally foster a strong reputation However, recognizing the need for adaptation due to both external and internal factors, Hoang Anh is now embracing online marketing By integrating cutting-edge technologies and high-quality products, the company aims to enhance its communication efforts and strengthen its market position.
Navigating changes can be challenging, especially for Hoang Anh as it strives to master online marketing, a relatively new domain for the business To support Hoang Anh’s marketing efforts, I have chosen to focus on the topic: “Solutions for Online Marketing Activities at Hoang Anh Flavors and Food Ingredients Co., Ltd (2022-2023).”
Research objectives
The objectives of this thesis are:
- Presenting the basic information about Hoang Anh
- Analyzing online marketing activities at Hoang Anh
- Evaluating achievements as well as pros and cons of Hoang Anh’s online marketing activities
- Suggesting suitable solutions for Hoang Anh’s online marketing activities in
Research subject and scope of research
- Research subjects: Hoang Anh Flavors and Food Ingredients Company Limited and Hoang Anh’s online marketing activities
- Time range: The study focuses on researching and evaluating online marketing activities at Hoang Anh during the period from May of 2021 to May of 2022
- Space range: online marketing activities on online media used at Hoang Anh
Research method
Desk research involves collecting data from business reports, internal documents, and previous studies related to the topic Once the data is gathered, the author analyzes and evaluates it to identify key characteristics and insights.
- Comparative method: Comparing criteria with competitors to analyze Hoang Anh’s advantages and disadvantages.
Thesis structure
Chapter 1 Introduction to Hoang Anh Flavors and Food Ingredients Company
Chapter 3 Analyzing Hoang Anh Flavors and Food Ingredients Company Limited’s online marketing activities
Chapter 4 Proposing solutions for Hoang Anh Flavors and Food Ingredients Company Limited’s online marketing activities
INTRODUCTION TO HOANG ANH FLAVORS AND FOOD
Overview of Hoang Anh Flavors and Food Ingredients Company Limited
1.1.1 About Hoang Anh Flavors and Food Ingredients Company Limited
Company name: Hoang Anh Flavors and Food Ingredients Company Limited
(Hoang Anh Co Ltd for short)
Type of legal entity: Multi members limited liability company
Legal representative: PHAM THI DUY
Headquarter address: 134A Le Van Luong Street, Phuoc Kien Commune, Nha Be
Email: info@hoanganh.com.vn
Hoang Anh Flavors and Food Ingredients Co., Ltd, established in 1999, is the first Vietnamese flavor house specializing in B2B services that encompass the creation, consultation, manufacturing, and distribution of high-quality flavors and food ingredients With a commitment to authenticity and flavor, Hoang Anh seeks to become a strategic partner for leading companies and businesses in Vietnam, focusing on long-term growth and collaboration in the food industry.
4 way to achieve a huge ambition: to raise Hoang Anh’s standing and to gain new customers from other Asia countries
Vision: Heading towards a well-being world where people can enjoy flavors of nature and other cultures
Mission: Bringing authentic taste to life
Hoang Anh partners with approximately 120 companies across various sectors, including pharmaceuticals, beverages, confectionery, and food products, both in Vietnam and internationally Notable clients include Vinamilk, Masan, Nutifood, Acecook, Highlands Coffee, SPM, Asia Food, and Calofix.
Figure 1.2 Some of Hoang Anh’s products
Field of activity: Hoang Anh participates in the FMCG industry, particularly the F&B section Hoang Anh's products can be used in food products, beverages, drugs, functional foods and pharmaceuticals
Introduction to Hoang Anh’s competitors:
Nationalities Year of entering Vietnam
Switzerland 1998 Flavors; food and pharmaceutical ingredients Perfumes, scents for household products
Switzerland 1996 Flavors; food and pharmaceutical ingredients Perfumes, scents for household products
Germany 2010 Flavors; food and pharmaceutical ingredients Perfumes, scents for household products
Germany 2010 Flavors; food ingredients; industrial chemicals
Vietnam Flavors; food ingredients; industrial chemicals
Vietnam Flavors; food and pharmaceutical ingredients Perfumes, scents for household products
(Source: Compilation) 1.1.2 History and development
Since its inception in 1998 as a small distributor of flavors and food ingredients, Hoang Anh has evolved into a leading force in the Vietnamese market, aspiring to become the pioneer in the flavors and food ingredients sector Throughout its journey, Hoang Anh has reached several significant milestones, solidifying its position in the industry.
1998: Hoang Anh was founded by Mrs Pham Thi Duy and her associates In the beginning, the company focused on trading flavors and food ingredients
1999: Hoang Anh built a small factory in District 7, HCMC, where Hoang Anh’s very first distinct products were created
2003: Hoang Anh received the first order from the Bangladesh market
2004: The company built a factory in Hiep Phuoc Industrial Park, Ho Chi Minh City
In 2007 and 2008, Hoang Anh was honored with the Excellent Food Safety and Quality Culture Award by the Vietnamese Ministry of Health as part of the National Food Safety Program By 2010, the company expanded its reach by opening a representative office in Myanmar and began exporting to the Cambodian market.
2014: Hoang Anh received "Golden F&B Brand" awarded by the Ministry of Health in Vietnam
2016: Signing a strategic partnership with Vietnam National Institute of Nutrition; receiving sponsorship from Innofund (Belgium) for Gac fruit oil extraction, which is an
7 important part of the Business Incubation Policy Project (BIPP) between the Government of Vietnam and Belgium
In 2017, Hiep Phuoc Factory enhanced its production capabilities by installing a state-of-the-art spray dryer, significantly tripling the capacity for powdered product output and offering a diverse array of solutions.
2021 – Present: Hoang Anh went through changes of brand identity as the company aim for being a partner of choices in Asia.
Organizational structure
Figure 1.3 Hoang Anh’s organization structure chart
(Source: HR dept.) 1.2.2 Department functions and duties
The General Director is responsible for overseeing company operations, implementing internal management regulations, signing contracts, and setting quarterly and annual objectives for the organization Additionally, they approve significant plans and projects to ensure the company's success.
Vice General Directors: Supporting the General Director to run the company with authorization granted by the General Director; urging and supervising the activities of
8 departments in the company; taking responsibility for their work before the General Director and the law
The QA/QC department is responsible for testing and inspecting product quality, ensuring compliance with the company's quality assurance program They stay updated on food safety regulations and ISO standards, integrating new guidelines into existing QA/QC protocols Additionally, the team advises on quality goals for each product type, develops strategic plans to meet these objectives, and implements solutions to enhance overall product quality.
The R&D department focuses on exploring new flavors and ingredients from both domestic and international markets, including influences from countries like Korea, Japan, China, Thailand, the US, and the UK It investigates advanced food technologies globally and aims to localize certain materials to enhance value while optimizing costs to meet customer demand Additionally, the team is dedicated to creating unique products tailored to specific customer needs and developing strategic plans for implementing new technologies and initiatives.
Manufacturing teams are responsible for producing products according to established processes and plans They ensure the cleanliness, operation, and maintenance of assistive equipment on the assembly line, while also checking product quality to meet specified factory safety standards and guidelines.
Inventory: A place for preservation of finished products, semi-finished products and raw materials; maintaining a stable supply for production and trading
The business department focuses on fostering strong relationships with loyal customers while actively seeking to establish connections with new clients This includes managing order approvals and developing strategies for product launches and market expansion to engage customer interest Additionally, the team plans and executes business activities, calculates costs, and generates reports on products and services, providing essential data for contract negotiations with customers.
The Accounting Department is responsible for preparing monthly, quarterly, and annual financial statements, which are reported to the General Director They lead and coordinate with relevant departments to develop the company's business plan and establish annual and long-term financial strategies Additionally, they ensure the timely and comprehensive execution of statistical work and financial planning in accordance with company regulations.
The HR department plays a crucial role in recruitment, aligning personnel numbers with the company's needs It develops training programs to enhance professional skills and establishes salary scales and KPIs for various positions Additionally, the HR team creates effective policies on rewards, discipline, welfare, and capacity assessment to boost employee morale and foster a positive work environment.
Marketing dept consists of four members, each of them serves different tasks:
The Marketing Director is responsible for overseeing comprehensive marketing operations within the company, which includes developing strategic decisions, establishing marketing objectives, and managing the budget for various marketing campaigns.
A Marketing Manager is responsible for overseeing marketing campaigns for specific products and developing brand identity This role involves managing and leading various tasks necessary for successful campaigns while supervising the work of team members throughout the process.
As a Marketing Specialist, you will oversee social media management, including content creation and post updates, while closely following the Marketing Manager's direction to implement marketing campaign strategies Additionally, you will be responsible for weekly updates on emerging food trends and monitoring competitor activities to stay ahead in the market.
- Designer: Designing posters, banners, figures, art elements, etc and editing videos for social media posts, marketing campaigns and other art products required by other departments.
Overview of business performance
According to Hoang Anh, the revenue and profit-to-revenue ratio of Hoang Anh in 2019 and 2020 are (respectively):
In 2019: The revenue was approximately 96.8 billion VND and the profit-to- revenue ratio reached 24.22%
In 2020: Revenue was approximately 102.1 billion VND, profit-to-revenue ratio was 25.3%
It can be seen that Hoang Anh has reaped positive results from the company’s activities since the company’s 2020 revenue and profit-to-revenue ratio are better than those of 2019
The years 2019 and 2020 were significant for Hoang Anh, marked by a diversification in consumer demands that heightened expectations from customers However, the outbreak of COVID-19 in 2020 posed numerous challenges, limiting business operations Despite these obstacles, Hoang Anh's staff demonstrated resilience, successfully navigating difficulties and contributing to the company's achievements With a track record of positive results, Hoang Anh is positioned for growth and possesses the strength to overcome critical challenges.
LITERATURE REVIEW
Definitions
Marketing, as defined by the American Marketing Association (2017), encompasses the activities, institutions, and processes involved in creating, communicating, delivering, and exchanging valuable offerings for customers, clients, partners, and society as a whole.
Marketing is defined by Kotler et al (2001) as a social and managerial process that enables individuals and groups to fulfill their needs and desires through the creation and exchange of products and value.
Although there are lots of definitions out there and the amount of them might be overwhelming, in general, definitions of Marketing all have these characteristics:
- Marketing is a process of exchanging items/ services
- Marketing anticipates and fulfill customers/ consumers’ demands
- Marketing brings about profits to the businesses/ companies
According to Kotler & Armstrong (2012), as referenced by Bostanshirin (2014), online marketing encompasses the strategies used to promote products and services while fostering customer relationships via the Internet Additionally, Chaffey (2007), also cited in Bostanshirin (2014), offers a more detailed definition of online marketing, highlighting its multifaceted nature.
Online marketing utilizes digital technologies and various online channels, such as websites, email, databases, and mobile platforms, to enhance marketing efforts focused on profitable customer acquisition and retention By improving our understanding of customer profiles, behaviors, and loyalty drivers, businesses can effectively engage with customers throughout their multi-channel buying journey and lifecycle.
12 targeted communications and online services that match their individual needs”
In summary, online marketing inherits the core fundamental from Marketing, with the difference is that online marketing exists in the Internet.
Common methods of online marketing
Website marketing involves utilizing online platforms to promote a business, leveraging tools such as social media, search engines, blogging, video content, and email marketing Essentially, it focuses on using a website as a primary channel to advertise products and services effectively.
Website marketing effectively disseminates a company's information and message to a vast online audience With millions of internet users daily, businesses can showcase their products or services to those who need or desire them This approach not only enhances consumer interest but also increases the conversion rate, transforming engaged visitors into loyal customers.
E-mail marketing is a direct marketing strategy that utilizes email to communicate commercial or fundraising messages to a specific audience (Fariborzi & Zahedifard, 2012) According to Kotler (2011), as cited in Ivanova (2011), this approach effectively delivers highly targeted and personalized messages, fostering strong relationships with customers.
Social media has transformed our daily lives by allowing us to express our ideas, beliefs, and behaviors in innovative ways As a result, social media marketing has become a crucial strategy for promoting businesses due to its accessibility and effectiveness.
In the context of marketing, social media are “considered platforms on which people build networks and share information and/or sentiments” (Kaplan and Haenlein,
2010), therefore, social media marketing is a practice that happens on social media sites,
13 this practice help businesses spread their information and build virtual relationship with the audiences (who can be the businesses’ potential loyal customers) Some common forms of social media are:
- Social network/ channel: Facebook, Instagram, etc
- Video-sharing sites: You Tube, Tik Tok, etc
- Blog/ Microblog: Weibo, Twitter, Tumblr, etc
Content marketing is a strategic approach that emphasizes the creation and distribution of valuable, relevant, and consistent content to engage a clearly defined audience and drive profitable customer actions, according to the Content Marketing Institute The key elements of a successful content strategy are the principles of being valuable, relevant, and consistent.
Content marketing is used by many businesses because it works nicely Some of Content marketing benefits are:
- Can be done without the help of big budget
- Attract customers when they are looking for information
SERP, or Search Engine Result Page, refers to the strategies and techniques aimed at boosting website traffic by achieving high rankings in search engine results According to Parikh and Deshmukh (2013), as cited in Bostanshirin (2014), these methods are essential for enhancing a website's visibility and attracting more visitors.
The primary objective of SERP is to achieve a high ranking for a website in search engine results, as elevated positions can significantly increase website traffic With consumers increasingly relying on search engines like Google and Bing for information, the importance of SERP has grown for businesses seeking to enhance their online visibility.
Benefits and limitations of online marketing activities
According to Bostanshirin (2014), some of online marketing’s benefits and limitations are:
Online marketing is a cost-effective solution for businesses, enabling them to execute campaigns with minimal or no financial investment, unlike traditional advertising methods such as television and radio This flexibility allows businesses to adjust their advertising budgets at any time, leading to significant savings Consequently, many companies value online marketing for its ability to deliver impactful results without necessitating large upfront investments.
The internet provides easy tracking of all activities, allowing marketers to measure metrics such as click rates and website traffic This capability enables them to analyze visitor behavior effectively, leading to informed marketing strategies.
Online marketing fosters high communication rates, enabling manufacturers and service providers to quickly meet specific customer needs and build loyal relationships The immediate interaction creates an engaging experience, making customers feel valued and appreciated This personalized attention enhances the company's reputation, contributing to a positive brand image.
Online marketing eliminates geographic barriers, allowing for seamless buying and selling with just a few clicks This creates a global reach that is both extensive and cost-effective, making it easier for businesses to connect with customers around the world.
Online marketing is essential for businesses as it allows them to identify and engage their target audience, leading to significant cost savings With individuals actively sharing their thoughts and interests online, marketing tools can effectively gather this data and connect companies with potential customers through targeted advertisements This approach is both straightforward and highly effective in reaching the right audience.
Privacy and security: Data protection is one of the most important issues to consider It's clear that customers’ data can be easily shared with other companies
Unauthorized access to personal information, including usernames and passwords, poses significant risks from hackers and viruses Additionally, spamming and intrusive pop-ups create frustration for internet users To combat these issues, it's essential to raise awareness about cybersecurity threats and the importance of antivirus tools, as well as to prioritize obtaining user consent before collecting personal data.
In today's highly competitive online marketing landscape, it is essential for brands to develop well-crafted strategies that capture the attention of their target audience Ineffective or uninspired techniques can lead to a brand's swift decline in relevance To stay ahead, companies must ensure their messaging aligns with customer needs and adapts quickly to market changes.
One significant drawback of online marketing strategies is the time commitment required, as disorganized approaches can lead to inefficiencies that hinder campaign effectiveness This can ultimately result in negative outcomes for businesses To mitigate these issues, it is advisable for companies to concentrate on a key initial strategy and subsequently tailor their content development and selection to align with that focus.
ANALYZING HOANG ANH FLAVORS AND FOOD
Overview of Marketing Mix 4P at Hoang Anh Flavors and Food Ingredients
Hoang Anh's products prominently feature the company's logo, which is inspired by a DNA chain, reflecting its philosophy of fostering innovation, positivity, and uniqueness derived from nature This logo is consistently used across all products and activities to strengthen brand identity in customers' minds Additionally, Hoang Anh names its products using the format "Product + Product Code," enabling both customers and the company to easily identify and locate each item.
Hoang Anh's product system is described in the diagram below:
In terms of portfolio width: Hoang Anh focuses on manufacturing and trading two main product lines: Flavors and Food Ingredients
In terms of portfolio length: Hoang Anh owns more than 2000 products for both of the above product lines
In terms of portfolio depth:
The “Flavors” line is divided into two subcategories:
- Sweet flavors: Fruit flavor; cream & milk flavor; confectionery flavor; fragrance of flowers & leaves; flavors of nuts
- Savory flavors: Meat flavor, seafood flavor, aromatic herbs & vegetables; culinary flavor
The “Food ingredients” line is divided into these subcategories:
- C-Realnutri: Hoang Anh extract powder includes grains such as brown rice, purple brown rice, corn, etc
- B-Nulnutri: Crushed emulsion extracted from nuts and beans
- O-Captrition: Powdered product used in milk, dairy products and other beverages
- X-Trameaty: Meat extract powder from beef, chicken, broth, etc
Hoang Anh has two main types of packaging:
The 10ml and 50ml black bottles, crafted from plastic imitation glass, are designed to minimize damage from drops while providing essential information on the packaging in a simplified format Primarily used for storing flavors, these small bottles are frequently utilized by Hoang Anh for exhibitions and product launches They serve effectively as samples and can cater to customers with low-to-moderate demand.
Hoang Anh offers its products in three convenient can sizes: 1kg, 5kg, and 10kg These white plastic cans are designed for cost efficiency and ease of transportation, featuring clear labeling of essential information Ideal for storing flavors and food ingredients, the can packaging is particularly favored by customers with large volume needs, making it a popular choice for mass production.
(Source: Marketing dept.) Product quality
Hoang Anh has invested in advanced production technologies to enhance product quality Notably, the company utilizes microencapsulation technology, which protects sensitive ingredients from environmental factors, and heat reaction technology, which involves heating proteins or amino acids with sugar at precise temperatures to achieve a rich and rounded flavor profile.
19 tasting); bio-extraction technology (optimum extraction technology in terms of time compared to traditional extraction technology) and so on
Hoang Anh excels in delivering authentic culinary flavors by deeply understanding local tastes The company invests in employee training programs that enhance knowledge of local culinary culture, enabling flavorists to innovate and create high-quality, genuine products.
Hoang Anh prioritizes food safety by adhering to regulations set by the Ministry of Health and factory protocols Since 2016, the company has partnered with the National Institute of Nutrition, which conducts testing and examinations of Hoang Anh's products prior to their release This collaboration guarantees the clinical effectiveness and nutritional benefits of their offerings.
Figure 3.4 Certificates gained by Hoang Anh as of 2021
Hoang Anh employs a strategic pricing approach that leverages the strengths of its company system This optimal pricing strategy is designed to enhance both the production and distribution processes while reducing the reliance on intermediaries As a result, Hoang Anh can achieve greater efficiency and cost-effectiveness in its operations.
20 come up with a good selling price for customers but still be able to bring about fine profits
Conditions allow Hoang Anh to apply the optimal pricing strategy:
Hoang Anh enjoys a significant geographical advantage over foreign competitors like Givaudan, Firmenich, and Symrise, as its location in Vietnam and Southeast Asia allows for reduced shipping costs This strategic positioning enables the company to enhance its competitiveness in the regional market.
With 20 years of experience in evaluating and developing supply chains, Hoang Anh has established an effective supply chain system that enhances production efficiency and optimizes transportation to customers.
In its early days, Hoang Anh implemented a selective distribution strategy by establishing a kiosk at Kim Bien Chemical Market, a well-known hub for chemicals since 1960 This strategic choice allowed the newly formed company to effectively reach potential customers and build brand awareness in a location recognized for its relevance to the industry By securing a presence in Kim Bien, Hoang Anh aimed to leverage the market's advantages to enhance its visibility and reputation among consumers.
Hoang Anh has adopted an exclusive distribution strategy that aligns with its established market presence after 21 years of operation To reduce intermediary costs, the company manages storage and distribution directly from its inventory, benefiting from a spacious warehouse capable of accommodating large volumes of goods This approach is particularly advantageous as many of Hoang Anh's clients are large corporations and businesses with significant purchasing needs, making direct transportation from the inventory an ideal solution.
In-person marketing, or face-to-face marketing, involves salespeople directly presenting and selling products to customers When launching new products, Hoang Anh’s direct sales team actively announces these launches, gathers information from interested customers, and introduces the products This approach to direct selling offers significant advantages, enhancing customer engagement and driving sales.
- There is a direct interaction between the company and the customers This allows Hoang Anh to poll customers to the fullest extent
- Gaining customers’ interest and favor
- Tightening Hoang Anh and customers’ relationships
Hoang Anh applies discount policies for first purchase and large-quantity purchases:
Hoang Anh offers a 5% discount on total orders for new customers to create a positive first impression and encourage repeat business For bulk purchases, typically in tons, customers can benefit from a discount ranging from 10% to 15%, depending on the product type This pricing strategy not only helps customers save on shipping, warehousing, and labor costs but also incentivizes businesses to order larger quantities.
This is a communication activity used to build and to protect Hoang Anh’s reputation before the public The target audience are organizations, government ministries, customers, partners and finally consumers
Contracting with authorities: Hoang Anh attended the signing ceremony of cooperation with the National Institute of Nutrition and Universities in Vietnam to learn knowledge as well as build connections
Since 2015, Hoang Anh has actively participated in F&B fairs and exhibitions in Vietnam, including prominent events like Food Expo and Viet Food & Beverage These exhibitions provide excellent opportunities for Hoang Anh to enhance brand visibility and showcase products to both domestic and international audiences, allowing for direct interaction and meaningful discussions with potential customers from across Asia and beyond.
Figure 3.5 Hoang Anh’s stand in VietFood & Beverage 2019
Sponsorship and donations play a crucial role in brand promotion and societal contribution In light of the recent COVID-19 outbreak in Vietnam, Hoang Anh has made significant contributions, donating over 650 million VND to the Covid-19 Prevention Fund and more than 191 million VND to the Ho Chi Minh City Vaccine Fund Through these efforts, Hoang Anh demonstrates a commitment to supporting the community during challenging times.
19 protective kits to doctors and nurses at Hiep Phuoc Commune Health Center and Pham Ngoc Thach Medical University
Figure 3.6 Hoàng Anh’s sponsorship for COVID-19 doctors and volunteers
(Source: Hoang Anh Facebook) Online marketing: This part will be elaborated clearly in Section 3.2.
Analyzing online marketing activities of Hoang Anh Flavors and Food
Reasons for practicing online marketing at Hoang Anh
Since Hoang Anh’s establishment (in 1998) until around 2007, Hoang Anh has had certain attempts in traditional marketing to promote products to customers Still, the online method wasn’t applied due to:
- Around the 2000s, online marketing was a rather new and unfamiliar concept to Hoang Anh
- The branding motto at that time was “Good wine needs no bush” as Hoang Anh wanted to use the products’ quality to popularize Hoang Anh rather than active propaganda
As a B2B company, Hoang Anh focuses on cultivating strong relationships with corporate clients rather than seeking widespread consumer recognition By prioritizing connections with businesses and organizations, Hoang Anh effectively enhances its market presence and reputation within its target audience.
Hoang Anh initially relied on traditional promotional methods, including in-person sales, exhibitions, conferences, and product testing sessions However, several factors have shifted Hoang Anh's view on advertising strategies, particularly regarding the importance of online marketing.
The rapid growth of online communication channels in Vietnam during the 2010s saw Facebook rise to prominence, with the first Vietnamese accounts created and the launch of Business Manager in 2014, enabling businesses to establish official accounts; by that year, Facebook had amassed 1.34 million users YouTube, which entered the Vietnamese market in 2005, gained significant traction, reaching 1.3 million followers annually by 2014 Additionally, other social networks like LinkedIn, Twitter, and Instagram emerged and expanded in Vietnam, making social media an integral part of daily life and creating new opportunities for internet marketing.
Utilizing online marketing tools offers numerous advantages over traditional advertising methods One key benefit is the significant reduction in costs, as online marketing platforms often provide more affordable options for businesses to reach their target audience Additionally, online marketing enables companies to reach a wider and more diverse range of people, increasing their potential customer base Furthermore, the effectiveness of online marketing tools can be easily measured and tracked, allowing businesses to make data-driven decisions and optimize their marketing strategies for better results.
The fragrance and flavor industry faces significant pressures from established competitors like Givaudan, Firmenich, Brenntag, and Symrise, all of which boast over a century of experience These industry giants possess substantial financial resources and extensive expertise, making it challenging for newer companies to compete effectively.
In 2015, the online platforms utilized by competitors like Givaudan, Firmenich, Symrise, and Brenntag, who participated in seven platforms, starkly contrasted with Vietnamese companies such as Hoang Anh and Viet Huong, which only engaged in three to four platforms For years, these international competitors have leveraged their established reputations, financial resources, and advanced technologies, now enhanced by effective online marketing strategies If Hoang Anh fails to keep pace with these competitors, the company risks falling behind and losing its competitive edge.
Table 3.1 Online platforms used by companies in 2015
Companies Facebook LinkedIn Instagram Website Email YouTube Online
With the above reasons, Hoang Anh now holds a different attitude towards online marketing Since 2014, Hoang Anh has started to put efforts into utilizing online marketing tools
Objectives of practicing online marketing at Hoang Anh
- Objective 1: Create a youthful, resourceful, understanding, natural and professional impression of Hoang Anh in the minds of customers and partners
- Objective 2: Reinforcing Hoang Anh’s relationships with loyal customers and partners
- Objective 3: Raising brand awareness among the field and promoting brand identity to potential customers
Domain name: hoanganh.com.vn
(Source: Hoang Anh’s website) Self-assessment:
Using “Five Criteria for Evaluating Web Pages” provided by Kapoun (1998), the author will make a quick evaluation of Hoang Anh’s website: o Accuracy
Hoang Anh offers accurate business contact information, including licenses, phone numbers, addresses, emails, and links to social media platforms This information has been meticulously verified against internal documents, ensuring its reliability prior to publication.
The Vietnamese version of the article is meticulously crafted, free from any grammar or spelling errors In contrast, the English version contains several misspellings and grammatical mistakes, suggesting that Hoang Anh may have relied on the Google Translate extension for its creation As a result, the English translation lacks clarity and comprehensiveness.
Publisher: The content is published by Hoang Anh’s Marketing team and the website’s structure is developed by an out-source IT company
URL domain: The domain “hoanganh.com.vn” has two parts, “hoanganh” which gives visitors a sense of Hoang Anh’s authority and “com.vn” is a trustworthy domain o Objectivity
Hoang Anh's website serves as a comprehensive introduction to the company, featuring essential information such as the company name, logo, contact details, achievements, and history It also highlights the services offered by Hoang Anh, including consultation, food research, manufacturing, and material provision Additionally, the website provides an effective communication channel for customers to connect with Hoang Anh.
Website advertising: Hoang Anh does not have any advertisement sections on the company’s website, which is a good decision since it helps visitors to focus on Hoang Anh’s contents only
Level of details: The website introduces branches of their products, but lack of a product catalogue o Frequency
The contents are not regularly posted Hoang Anh does not have a fixed and consistent posting schedule
Deadlinks: There are 2-3 deadlinks and questionable link direction Seach box is not proficient o Coverage
The website does not require any other applications, extensions or specific browser, it is totally free to visit
Hoang Anh's website has been verified as mobile-friendly through the Google Mobile Friendly Test Tool, ensuring seamless accessibility across all electronic devices.
Content of the website & Posting frequency
This article analyzes and compares the content sections of the websites of Hoang Anh, Givaudan, Symrise, and Viet Huong The comparison highlights the distinct differences between the websites of international companies and those of Vietnamese firms.
Table 3.2 Checklist of Hoang Anh and competitors’ website sections
Sections Givaudan Symrise Viet Huong Hoang Anh
(Source: Compilation from companies’ websites)
All companies have the basic sections like “Company information”, “Product introduction”, “Awards” and “Career” These sections are well-designed as they give visitors a quick look at the companies’ profiles
“Catalogue” and “Sustainability” sections are Givaudan and Symrise’s differences compared to Hoang Anh and Viet Huong In which:
- “Sustainability” section is dedicated to competitors’ humane acts like donations, helpful acts, raising awareness of climate, environment and society, etc
- “Catalogue” is an in-depth version of the “Product Introduction” section While
“Product Introduction” section only introduces product usages, catalogue allows visitors to explore products’ details like boiling points, textures, colors, scents, tastes, etc
Givaudan and Symrise maintain a high posting frequency, updating their news 7 to 12 times per month, while Hoang Anh and Viet Huong lag behind with only 5 to 7 posts every two months, indicating a significantly lower engagement rate in comparison to their competitors.
Figure 3.8 Comparison between Hoang Anh and competitors’ website engagements from April 2021 to June 2021
Hoang Anh and Viet Huong both recorded fewer than 5,000 monthly visitors, as Similarweb.com does not disclose figures below this threshold In contrast, Symrise attracted over 35,000 visitors, while Givaudan surpassed 65,000 This indicates that Hoang Anh's monthly traffic significantly lags behind that of its international competitors.
Givaudan and Symrise are leading global companies in the market, while Hoang Anh and Viet Huong are emerging businesses focused on Vietnam and the Asia region As a result, the influence of international companies like Givaudan and Symrise surpasses that of Hoang Anh and Viet Huong, leading to a higher rate of visits to their platforms.
In 2020, Vietnam's food and beverage (F&B) market was valued at approximately 975.87 trillion VND (around 42 million USD), significantly smaller than the global F&B market, which reached a staggering 5,943.6 billion USD.
USD in 2019 (Bridgehead, 2021) This means global F&B market’s value is nearly 200 times Vietnamese F&B market
Achieved objectives and incomplete objectives of online marketing activities of
Hoang Anh successfully enhances relationships with loyal customers and partners through effective online marketing on Facebook and LinkedIn, as evidenced by impressive average engagement rates on both platforms These metrics reflect a strong performance compared to competitors, highlighting Hoang Anh's commitment to fostering connections.
Objective 1: “Create a youthful, resourceful, understanding, natural and professional impression of Hoang Anh in the minds of customers and partners” is not fulfilled yet Some of Hoang Anh’s loyal customers and partners mentioned that Hoang Anh’s one of the main content angles was “old-fashioned and technical” This means that Hoang Anh’s conveyance is not impressive to a group of customers and partners Hoang Anh’s content elements (content pillars, tone of voice, content angles) are also weak compared to competitors This means Hoang Anh needs to fix their contents to achieve this objective in the future
Objective 3: “Raising brand awareness among the field and promoting brand identity to potential customers” is incomplete as well Although Hoang Anh has some new followers on Facebook and LinkedIn now and then, the number of new followers
Hoang Anh's performance is lacking compared to competitors, with a low score of 52 The website struggles to attract unique visitors, and the brand fails to utilize effective email strategies to enhance brand awareness.
The analysis reveals that the existing online marketing efforts have yielded both successes and shortcomings, highlighting the need for enhancements In the subsequent chapter, the author will present solutions to address these identified issues.
PROPOSING SOLUTIONS FOR HOANG ANH FLAVORS AND
Business environment
Vietnam is a country with a stable political background, thanks to which, Vietnam has developed policies to support workers and businesses In the 4th COVID-
In response to the COVID-19 outbreak, the Vietnamese government implemented support packages tailored to individuals' employment and financial circumstances In November 2021, a new initiative was proposed to assist workers in returning to their jobs These support policies aim to provide essential aid to workers while fostering the overall recovery of the economy and society.
The Vietnamese government has been actively supporting the food and beverage sector through initiatives such as the F&B Enterprise and Product Development Support Program in Ho Chi Minh City, set to run from 2020 to 2030 As noted by Van Minh (2021), this program focuses on enhancing the food industry by providing access to modern machinery, advanced technologies, human resource training, and various promotional activities to foster enterprise growth and product innovation.
Vietnam has established itself as a key player in global trade by signing various treaties worldwide As a member of the Association of Southeast Asian Nations (ASEAN) since 1995, Vietnam has benefited from the ASEAN Trade in Goods Agreement (ATIGA), which has facilitated smoother trade between Southeast Asian countries Additionally, Vietnam actively engages in Free Trade Agreements with other nations, further enhancing its trading capabilities and opportunities for businesses like Hoang Anh.
- EU (EVFTA); Vietnam - Korea Free Trade Agreement (VKFTA); These treaties help Hoang Anh by creating chances for the company to penetrate in other markets in the long-term future
The Asian food and beverage (F&B) sector, a specialized segment of the fast-moving consumer goods (FMCG) industry, is anticipated to grow significantly, with projections indicating a compound annual growth rate of 11% This growth is expected to elevate the market value to US$277 billion from 2020 to 2024, according to Leaderhead Food Research.
2020) In Vietnam, Ngoc Quynh (2021) pointed out the F&B industry in Vietnam has always been an important and potential economic sector with a forecasted growth rate of 5%-6%/year in the period 2020- 2025
The COVID-19 pandemic presented both challenges and opportunities for the food and beverage (F&B) industry, as highlighted in a 2021 report by Phu Hung Securities Most manufacturing enterprises faced significant economic shocks, with over 85% struggling with inventory, supply chain, and human resources However, 94.7% recognized their shortcomings and adapted their manufacturing systems Notably, 68.4% of businesses leveraged modern technologies to enhance production, distribution, and customer experience Hoang Anh, a resilient company, maintained production during the outbreak despite difficulties in material supply and distribution, allowing it to create valuable products and generate profits Furthermore, the pandemic provided Hoang Anh an opportunity to contribute to society through donations and promoting health awareness via online channels.
Figure 4.1 Impact of COVID-19 pandemic on production of enterprises
Environmental pollution from agricultural and industrial production poses a significant challenge, with Vietnam's industrial zones producing approximately 8,000 tons of solid waste daily, totaling around 3 million tons annually, according to the Ministry of Natural Resources and Environment As a production-focused enterprise, Hoang Anh must prioritize sustainable development by implementing effective measures that enhance environmental protection and showcase the company's commitment to sustainability Additionally, promoting these efforts on social media can help raise awareness and reinforce Hoang Anh's dedication to environmental stewardship.
Vietnam's population is approximately 98.5 million and is expected to grow, reaching around 98.6 million by 2025, according to Danso.org (2021) This population growth indicates a rising demand for food in the Vietnamese market, presenting significant production and business opportunities for Hoang Anh.
According to Vietnam Report (2018) as referenced by Quang Hung (2018), food consumption accounts for 35% of a household's monthly budget in Vietnam In the first nine months of 2018, the consumption index for food and beverage production rose by 8.1% and 10.2%, respectively, compared to the same period in the previous year These statistics highlight Vietnam's potential as a thriving market for food and beverage products.
A 2020 survey by Vietnam Report revealed that 50% of consumers are spending more on immune-boosting foods, while 63.7% have reduced alcohol purchases due to the COVID-19 pandemic This trend extends globally, with a 600% increase in vegetarianism in the US over the past three years and a 350% rise in the UK over the last decade Additionally, in China, meat demand has plummeted by 50% following government encouragement for a vegetarian diet As a result, many food and beverage brands are now focusing on offering vegan, healthy, plant-based, and functional food options to meet this growing demand.
56 menus Because of that, Hoang Anh needs to promote healthy products to respond to the increasing demands
The food and beverage industry is rapidly expanding, driven by emerging consumption trends and innovative techniques Key developments include functional foods, lab-grown meat, plant-based alternatives, and virtual reality technology that recreates scents and flavors based on individual experiences.
Hoang Anh has successfully implemented cutting-edge microencapsulation technology in its O-Captrition products, enhancing stability and minimizing air interaction to preserve scent and quality The company is committed to staying current with food technology trends, with the Marketing department receiving weekly updates on culinary trends, flavors, and technological advancements This proactive approach has equipped the Marketing team with valuable insights into modern technologies.
Technology 4.0 strongly influences Hoang Anh’s marketing As mentioned in Section 3.1, Hoang Anh is aware of the benefits and potentials that the digital age brings
In the near future, Hoang Anh needs to consider the advantages and disadvantages of online marketing activities to achieve the goals
Hoang Anh specializes in producing natural flavors and food ingredients, sourcing raw materials from local farmers and gardeners in Vietnam With its factory located in Nha Be district, the company prioritizes suppliers from nearby areas, including Nha Be, Cu Chi, and the Tay Nam Bo regions, to optimize costs, reduce transportation time, and enhance efficiency.
Under normal circumstances, Hoang Anh faces minimal pressure from suppliers However, during the social distancing period from July to early November 2021, the costs associated with transporting and preserving goods surged by 5-6 times due to the impact of COVID-19.
To effectively address future outbreaks, Hoang Anh should strategically forecast inventory levels and prepare both mentally and in terms of raw materials Additionally, fostering strong, sustainable relationships with suppliers, both in real life and on social media, will be essential for resilience and success.
During 20 years of operation, Hoang Anh has worked with more than 120 customers In terms of Hoang Anh’s strategic customers, it is worth to mention huge brands such as Vinamilk, Acecook, Masan, Being the first-domestic and cultured flavor house in Vietnam, customers have high hopes for Hoang Anh:
Solutions for Hoang Anh
4.3.1 Solutions for Hoang Anh’s contents
Hoang Anh’s content marketing strategy is the first and foremost thing that Hoang Anh should work on Owen (2021) suggests that:
Content marketing is essential as it serves as the central hub of your online marketing strategies, connecting and supporting various elements The content you create can be utilized across multiple platforms, including your blog, email marketing, social media, and PPC ads By implementing a robust content marketing strategy, each channel can effectively leverage the marketing tactics you choose to meet your marketing goals and increase sales revenue.
Hoang Anh's situation exemplifies the challenges faced when a company's content marketing strategy is limited to basic, verbal-only formats This lack of diverse content for the website, social media platforms, and email campaigns restricts the effectiveness of other online marketing efforts, ultimately hindering overall success.
- Hoang Anh cannot design a consistent posting frequency on the website and social media if the company cannot decide what to write
- Hoang Anh cannot conduct an efficiency measuring plan for online marketing methods if their posting frequency is not established or too scattered
- Time consuming whenever marketing team wants to try new content pillars or new topics
Hoang Anh's reliance on a limited range of content pillars results in repetitive messaging, leading to a monotonous and predictable audience experience This lack of variety hinders their ability to engage effectively, ultimately stifling creativity and diminishing overall content diversity.
In short, solving the problem in Hoang Anh’s content strategy will benefit greatly to Hoang Anh’s whole online marketing practice
Problem no 1: Hoang Anh’s contents are judged by some partners and customers to be “boring, irrelevant”
✓ Examine Hoang Anh’s current mindset when publish contents:
Here is a comparison between Hoang Anh and Givaudan:
“Not only do we make deliciousness and interestingness imbued in each dish and drink, but also convey culture through culinary experiences” – Excerpt from Hoang Anh’s website
“We go beyond great tastes to create food experiences that do good and feel good, for your body, mind and planet” – Excerpt from Givaudan’s website
Givaudan demonstrates a commitment to competence and societal contribution through a human-to-human approach In contrast, Hoang Anh's focus on the company's capabilities lacks a clear connection to customer benefits and emotional engagement This company-centered mindset renders Hoang Anh's content irrelevant, as it fails to prioritize the audience's needs and experiences Consequently, the absence of personal expression in Hoang Anh's communications prevents meaningful connections with customers and audiences.
The human-centric approach emphasizes treating consumers as whole individuals with emotions and reasons, urging brands to adopt a more human-like demeanor by being approachable, vulnerable, and authentic This method encourages brands to connect emotionally with consumers through compelling storytelling that resonates on a personal level According to Kotler et al (2016), this human-to-human interaction represents a significant shift in marketing philosophy To effectively implement this strategy, companies like Hoang Anh should transition from a company-centered focus to a more human-oriented approach, guided by thoughtful questions that enhance consumer connection.
“1 What are your audience’s needs, goals, and values?
2 What are the issues that your audience is facing or should be aware of?
3 Are you speaking in a clear and accessible manner?
4 What are the company’s traits you want to express?
5 What emotions do you want to convey?”
To effectively engage with customers, it is essential to analyze data to identify their needs and preferences Hoang Anh can gather valuable insights by conducting surveys or polls with customers and monitoring competitors’ posts to determine which types of content generate the highest engagement.
Problem no 2: Content pillars are not diverse compared to competitors
To enhance brand awareness, Hoang Anh should explore all the trendy content pillars outlined in Section 3.2.2 By selecting 3-5 of these appealing pillars to create weekly content, Hoang Anh can effectively engage the audience and strengthen the brand's presence Recommended content pillars will help in achieving these goals.
✓ Food & Consumers’ Health → caring image
✓ Sustainability (Raising awareness about environment) → caring image
Problem no 3: Changes for content angles and tone of voice o Content angles
Solutions: Alongside with Hoang Anh’s current content angles, the company can try these new content angles These content angles are frequently used by Givaudan, Firmenich and Symrise
Storytelling transforms information into an engaging narrative that allows the audience to visualize and connect emotionally For instance, consider the tale of a French Catholic missionary who aspired to establish a modest business in Vietnam Recognizing the untapped potential of this charming and unassuming land, he decided to introduce Arabica coffee, setting the stage for a rich cultural and economic exchange.
70 tree to southern Vietnam That was the modest beginning of nowadays flourish business of Vietnam coffee.”
✓ “Did you know?”: This is a fun and creative way to give fun facts about technologies, ingredients or trends Example: “Did you know? Tomatoes are actually a type of fruit!”
Understanding new terminology is essential for educating an inquisitive audience For instance, "snackification" refers to the emerging trend where consumers opt for multiple snack sessions throughout the day instead of adhering to the traditional three meals.
✓ “Problems & solutions”: Hoang Anh can provide hard situations that customers are facing and provide them with the company’s unique solutions Example:
Introducing Hoang Anh's T 0 Pearls, the ultimate solution for adding gelatin pearls to beverages without the hassle of boiling and preservative regulations Our innovative product maintains its chewy texture even under heat, ensuring a delightful experience while being completely safe for consumption.
Solutions: According to Kate Moran (2016), there are four dimensions of tone of voice, they are:
- Enthusiastic vs matter-of-fact
As Hoang Anh wants to build a youthful, resourceful, understanding, natural and professional image, their tone of voice should:
✓ “Serious” tone can be preferable as the audiences are there for business, but occasionally, Hoang Anh can use “Funny” tone for a nice laugh and convey Hoang Anh’s humanly side
✓ Prior “Casual” voice in casual occasions like “Fun fact about ingredients”,
“Lives at Hoang Anh”, and use “Formal” voice on formal occasions like Hoang Anh’s big ceremonies
✓ Avoid “Cheeky” tone of voice as it might be offensive towards audiences
✓ Prior “Enthusiastic” for most contents as it creates an uplifting, youthful feeling
Problem no 4: Has not utilized social media Analytics Tools’ advanced features
✓ Expand the Marketing dept.’s knowledge on analytics tools:
- Assign classes for Marketing employees to learn about analytics tools
- Reading blog posts on “How to utilize Facebook Insight/ LinkedIn Analytics” by HubSpot, MailChimp and other professional blogs
✓ While measuring, take notes and identify elements that affect greatly social media activities: such as timing, hashtag, algorithms,
- Testing those factors, algorithms in order to confirm if they can help boost posts
- Record and observe weekly/monthly metrics
- Apply and maintain beneficial factors, remove harmful factors
Problem no 5: English grammar and spelling mistakes
✓ Manually check for grammar and spelling mistakes During writing and mistakes checking sessions, consider using utilities like Grammarly, ProWritingAid, etc for better writing and comprehension
✓ Write an own soulful English version for the website instead of relying solely on Google Translate
Problem no 6: Deadlinks and unavailable buttons
✓ Manually check for deadlinks and buttons that do not work
✓ Contact the outsource for fixing process
Problem no 7: High bounce rate & Low visit duration
To understand why visitors are quickly leaving the website, Hoang Anh can utilize tools like the fishbone diagram to identify root causes This diagram will aid in conducting a self-assessment, allowing Hoang Anh to pinpoint any potential mistakes on the site.
Figure 4.2 Example of analyzing high bounce rate’s root causes using fish bone diagram
To enhance Hoang Anh's website performance, it is essential to analyze competitors with lower bounce rates By identifying the strengths and weaknesses of these competitors, Hoang Anh can implement effective strategies to improve user engagement and retention on their own site.
✓ Create helpful and relevant contents
Problem no 8: Low number of monthly visits and low number unique visitors
To enhance website traffic, Hoang Anh should tag backlinks in social media posts, promoting content across both platforms By sharing concise snippets on social media that link to the full articles, audience engagement increases as users seek more detailed information This strategy effectively drives unique visitors to Hoang Anh's website.
Hoang Anh effectively utilizes online PR by booking articles in F&B newspapers, incorporating backlinks that enhance brand visibility This strategy not only attracts potential customers but also facilitates easy access to Hoang Anh's services, ultimately increasing the number of unique visitors to the website.
✓ Create helpful and relevant contents
Problem no 9: Lack of an in-depth catalogue
Hoang Anh recognizes the importance of creating a product catalog, as over 70% of today's B2B buyers are tech-savvy millennials who prefer conducting their own research to determine if a company aligns with their project needs In the competitive landscape of industrial products and components, lacking an online product catalog could drive potential customers to seek alternatives with competitors.