(Tiểu luận) midterm assignmentgroup reportsubject international business

FOREIGN TRADE UNIVERSITY HO CHI MINH CITY CAMPUS *** MIDTERM ASSIGNMENT GROUP REPORT SUBJECT: INTERNATIONAL BUSINESS Class Group Topic : K60CLC5 :4 : Lafooco - Strategy to penetrate the UK's market with roasted cashew nut Ho Chi Minh City, 23th March 2022 GROUP’S MEMBER ML221 - Group No Student ID Fullname 2114533013 Đỗ Lê Ánh Ngọc 2112533050 Đào Ngọc Trâm 2114533004 Hoàng Nữ Thảo Duyên 214533010 Nguyễn Thị Khánh Huyền 2114533015 Phạm Thị Thanh Ngọc 2114533019 Nguyễn Trần Diệu Tiên TABLES OF CONTENT Chapter 1: Analyze current business situation 1.1 Company background 1.2 Lafooco’s current activities and opportunities in a foreign market 1.2.1 Lafooco's current activities 1.2.2 Opportunities in a foreign market 1.3 About cashew nuts of lafooco: Chapter 2: Market penetration goals 2.1 Core goals when entering the market 2.2 Product categories for market penetration .5 Chapter 3: Market analysis 3.1 Environment analysis 3.1.1 PESTLE (External macro environment) 3.1.2 Five Forces (External micro environment) .8 3.1.3 SWOT 10 3.2 Customer Analysis 11 Chapter 4: Market penetration strategy 14 4.1 Product strategy 14 4.1.1 Quality: 14 4.1.2 Label: 14 4.2 Pricing strategy 14 4.3 Distribution strategy 15 4.3.1 Distribution strategy .15 4.4 Products promotion strategy 17 Word-of-mouth marketing (WOM marketing) 19 Chapter 5: Evaluate market penetration strategy 21 REFERENCES 23 Chapter 1: Analyze current business situation 1.1 Company background Lafooco was established in 1985 Lafooco - a member of pan group - is a punional enterprise in cashew nutrition and procession production in Long An province, VietNam As a leading manufacturer, processing and exporting nuts and dried fruits in Vietnam, supplying our products to major markets such as the United States, Europe, China, Australia, Japan and the Middle East and proud to be the only nuts manufacturing and processing company listed on Vietnam stock market With significant growth, Lafooco has expanded its portfolio with nuts, dried fruits and other health products for consumers.With the motto of devoting our whole heart to the cashew industry, customers, farmers and the red land where the cashew tree bears fruit, we are always committed to bringing the highest quality products to satisfy the needs of our customers most demanding market Their passion “Doing things with all your heart” is embedded in the heart-shaped cashew symbol in the LAFOOCO brand logo 1.2 Lafooco’s current activities and opportunities in a foreign market 1.2.1 Lafooco's current activities Accumulated in 12 months of 2022, LAF's net revenue reached VND 509 billion net revenue, an increase of 22% compared to 2021 As of December 31, 2022, LAF's total assets stood at VND 403 billion, an increase of 44 % compared to the first day of the year Production capacity of 20,000 tons of raw cashew nuts/year In the year of Covid, the company still maintained good sales in both domestic and export markets In the cashew kernel processing industry for export, there are more than 60 enterprises, of which LAFOOCO is one of the four largest enterprises Lafooco was honored by Forbes Magazine as one of the 200 best small and medium enterprises in Asia As an enterprise that is always in the top 10 largest trading and exporting companies of cashew kernels (semi-finished products) in Vietnam Document continues below Discover more from: Business Economics KTEE312 Trường Đại học… 618 documents Go to course 31 44 29 BÁO CÁO THỰC TẬP TẠI NGÂN HÀNG… Business Economics 100% (33) Giải bài tập môn Kinh tế kinh doanh thầy… Business Economics 100% (9) Các yếu tố ảnh hưởng tới số hạnh phúc… Business Economics 100% (8) Đề cương Hướng dẫn 56 17 ôn tập môn Kinh tế… Business Economics 100% (6) Business Economics C1,2,3 Business Economics 100% (4) Burger King Case 1.2.2 Opportunities in a foreign market Study Analysis 34 In 2009, Lafooco ranked 3rd among enterprises with the largest export turnover of cashew Business 100% (4) in Vietnam More than 90% of the Company's revenue now comes from cashew exports Economics The major export markets of Long An Lafooco export processing joint stock company are the US, China, the Netherlands, Australia, Japan, Israel, Canada, Russia and Taiwan Lafooco is currently one of the first Vietnamese consumer product brands to be branded "Climate Pledge Friendly" on Amazon, helping shoppers identify and select products that meet sustainability and conservation standards natural world out of types of Lafooco cashew nuts entered the top 10 best-selling new cashew products on this platform Particularly, product lines of Caramelized Sea Salt Roasted Cashews and Coconut Sea Salt Roasted Cashews are among the top 100 cashew products at Amazon's store in the US The United Kingdom is a unitary state with devolution that is maintaining within the framework of a democracy under a constitutional monarchy The United Kingdom's economic freedom score is 72.7, making its economy the 24th freest in the 2022 Index The United Kingdom is ranked 17th among 45 countries in the Europe region, and its overall score is above the regional and world averages 1.3 About cashew nuts of lafooco: With a clear source of cashew raw materials, grown on the red land of Long An, carefully monitored and selected, Lafooco is always committed to bringing the best quality cashew products to customers Up to now, the company has successfully built an organic cashew growing area in Binh Phuoc province and has been certified organic by the US and Europe Lafooco's organic cashew products also successfully passed the strict censorship round of FDA, Control Union and received positive feedback from international customers, expanding the way to reach the big sea for domestic agricultural products Chapter 2: Market penetration goals 2.1 Core goals when entering the market Two core goals Lafooco sets we want to focus Firstly, Lafocoo will increase the revenue of roasted cashew's Lafooco The UK is a potential market for salted roasted cashews for many reasons that we will analyze in Consumer Analysis Secondly, increasing brand awareness of lafooco in the UK market is also a significant condition Lafooco has never entered the UK market, but this entry may make UK consumers that have a better impression of Vietnamese products Lafooco's first priority is to cooperate with major supermarkets in the UK, exporting products to supermarkets with large market shares such as: Tesco, Sainsbury's, Asda, and Morrisons Besides, selling via e-commerce like Tesco can also be an option and Lafooco will probably expand to take care of this channel after stabilizing In addition, Lafooco can also apply some products promotion strategies when launching products such as: Create an image and seek out customers and trade partners in the UK, Develop media promotion channels, Word-of-mouth marketing (WOM marketing) 2.2 Product categories for market penetration Lafooco’s products have specific important characteristics that differentiate them from the competitors in the foreign market First of all, cashew nuts and other types of nuts include various amounts of nutritious ingredients that are natural and good for health Besides, not only the price of these products is reasonable but also the categories of cashews nuts of Lafooco are really varied The cashew nuts of this brand are processed according to different flavors, so people can experience all of them without getting bored This point is also relatively new for UK consumers because mainly the nuts here are only roasted or processed into butter or milk We also aim to focus on all ages of consumers to attract sales and regard them as our target customers because these nuts are good for health, and children to older can use them Also, UK people usually have grain cereals for breakfast so the consumption of nuts here is enormous, and Lafooco's cashews products can be used as a cereal for people's mornings Chapter 3: Market analysis 3.1 Environment analysis 3.1.1 PESTLE (External macro environment) ● Political - The Brexit event had a profound effect on the country's socio-politics The most obvious is the internal divisions of the people - The duty-free trade deal Johnson signed with EU leaders two years ago has caused a significant increase in customs paperwork, leading to difficulties for businesses in importing and exporting - Brexit has negatively impacted UK socio-economic and public support for this option has diminished Several agreements signed with other countries have hardly brought significant change Although additional trade with other countries could partially offset the decline in trade with the EU - Brexit has led to a procedural split between Northern Ireland and the rest of the UK ● Economics - Imports of Vietnamese cashew nuts to the UK market increased dramatically in the early months of 2022, capturing the lion's share of the market in the first months of 2022 - The market share of Vietnamese cashews left a huge gap between them and other suppliers such as India (2.83 percent), the Netherlands (2.12 percent), and Côte d'Ivoire (156 percent) " - Explaining the cause of the UK's economic decline, analysts say that the UK is still paying the price for Brexit (UK leaves the EU) - At the moment, the British pound also depreciates more than the euro against the dollar in the money market - The United Kingdom (UK) is a net importer of cashew nuts 4.3.1.2 Analysis In 2021, the total market value of grocery retailing came to approximately 211.9 billion British pounds (GBP) in the United Kingdom Of the five major sales channels, supermarkets had the largest share of the market value with 91 billion pounds Supermarkets had more than twice as big a market value as the convenience channel, the second largest channel By 2027, the value of grocery retailing is expected to increase to over 241 billion British pounds Figure: Market value of grocery retail in the United Kingdom (UK) from 2020 to 2027, by channel (in billion GBP) Some 88 percent of surveyed grocery shoppers stated that they regularly shopped at supermarkets in the UK Online retailers ranked in second place, with 27 percent Market leader Tesco held just over one-quarter of the market share of all grocery stores in Great Britain in September 2022 Together with Sainsbury's, the two retailers had a combined market share of 41.5 percent Tesco operated roughly 4,050 stores in the United Kingdom and the Republic of Ireland in 2022 With this presence the company regularly reached 56 percent of shoppers according to a recent survey 4.3.1.3 Where to distribute the cashews of Lafooco? ● Supermarkets: The United Kingdom’s grocery landscape has traditionally been dominated by the ‘big four’ supermarket chains: Tesco, Asda, Sainsbury’s, and Morrisons + Market leader Tesco, which we can have the goods distributed here Tesco Plc (Tesco) is a multinational retailer of general merchandise The company carries out business through multi-format stores and online It operates stores in various formats differentiated by size and range of products sold, including large, small, dotcom only and one-stop + Asda operates over 600 stores across the United Kingdom, and it offers a wide range of products, including nuts, dried fruits, and other snack items so it is impossible for LAfooco food to sell their cashew nuts to be sold here + Sainsbury's has over 600 supermarkets and over 800 convenience stores, located in 281 retail stores in the biggest city in the UK like London + There are 980 Morrisons retail stores in the United Kingdom as of February 20, 2023 The country with the most number of Morrisons locations in the UK is England, with 816 retail stores, which is about 83% of all Morrisons retail stores in the UK ● Convenience Stores: out of every dollars is used in a convenience store Therefore, the distribution of cashew nuts here can easily reach customers and bring more profits Co-op Food: Co-op Food stores are a chain of convenience stores operated by the Cooperative Group They offer a range of groceries, fresh produce, and household items, as well as a selection of ready-to-eat meals and snacks 4.4 Products promotion strategy Create an image and seek out customers and trade partners in the UK - Participate in trade shows, exhibitions, or events in the UK related to food, cuisine, health, and nutrition to introduce LAfooco food's cashew nut products to potential trade partners and customers For example, The Natural Food Show - This show is the UK's biggest trade event for natural and organic food and drink It takes place annually in London and features exhibitors from all over the world; Vegfest UK - This event is an annual celebration of veganism and plant-based living It takes place in several locations across the UK and attracts thousands of visitors every year - Actively engage in social activities, such as charity campaigns, and environmental and community activities in the UK For example, they can use environmentally friendly packaging to help the environmental problems This helps to create a positive image with customers and trade partners in the UK, strengthening their trust and confidence in the product Develop media promotion channels - Understand and adapt to the UK market, customs, and culture to tailor the promotion strategy accordingly This will help LAfooco food effectively communicate the product's value proposition and resonate with UK consumers - Develop a website dedicated to LAfooco food's cashew nut products in both English and Vietnamese, which includes information about the product, its origins and production process, nutritional value, and usage instructions Thence the customer and trade partners in the UK can reach and research the product easily In addition, create engaging and informative product videos and share them on the website This can help educate customers on the product and its uses - Use online channels such as Google Adwords, Facebook Ads, Instagram Ads, etc to promote LAfooco food's cashew nut products to potential customers in the UK - In 2022, there are 46.5 million users of social media platform Facebook in the United Kingdom In 2027, the number of monthly active Facebook users is projected to reach 49.2 million individuals Besides, The number of Instagram users in the United Kingdom was forecast to continuously increase between 2022 and 2028 by in total 13 million users So it will help to increases the product's online presence on social media platforms and online search tools Especially nowadays, Tiktok is also a very developed social networking platform Based on forecasts released in May 2021, the number of TikTok users in the United Kingdom is expected to reach almost 15 million users in 2025 The app's growth is expected to keep increasing, reaching 16.8 million users in 2024 So collaborating with UK influencers and bloggers as well as KOL or KOC to introduce LAfooco food's cashew nut products to their followers Influencers and bloggers can help reach a wider audience and increase brand awareness, or Vietnamese KOL and KOC may help to advertise LAfooco’s product to the Vietnamese community living in the UK - Partner with local restaurants, cafes, and supermarkets to showcase and sell LAfooco food's cashew nut products, also offering product samples or trial packs to potential customers in the UK This strategy helps increase the product's visibility, reach in the UK market, and allows customers to experience the product, and increases the likelihood of repeat purchases Word-of-mouth marketing (WOM marketing) This is a form of product promotion where existing customers share information about the product with others without having to go through traditional communication channels Word of mouth is often very effective, as consumers trust the opinions and reviews of people who have experience using the product Having customers recommend your product can lead to increased sales and attention to LAfooco’s product There are some ways to use this form of marketing: - Create high-quality products and meet customer needs: If LAfooco’s products meet customer needs and have good quality, customers will feel satisfied and automatically recommend cashew nuts to someone else - Create a positive customer experience: If LAfooco can create a positive customer experience, for example, by offering a flexible return policy or providing good customer service, customers will feel better and feel friendly to the company and will recommend their products to others - Build customer relationships: Create relationships with customers by communicating with them, listening to their opinions, and answering all their questions If customers feel they are cared for, they will be more inclined to recommend the product to others - Encourage customers to post your product reviews: If customers are satisfied with the product, encourage them to post product reviews on the company’s website or another product review site Positive reviews will help increase the credibility of the product and customers will recommend the product to others - Give promotional gifts to customers: Giving promotional gifts to customers will help customers feel appreciated and motivate them to recommend the products to others Chapter 5: Evaluate market penetration strategy Overall, the company’s and the products readiness to penetrate the UK Market is Medium.Besides some weaknesses that need to be concerned, LAFOOCO also has certain strengths that help them to be successful in the UK Market In general, in the Vietnamese market, Lafooco was very competitive in the market Because, established in 1985, Lafooco is always in the top 10 largest cashew nut production and trading companies in Vietnam Over the years, Lafooco has demonstrated its leading role in the industry, not only bringing in revenue but also creating jobs with good benefits for employees.In the last years, Lafooco followed the trend of reducing the export of semi-finished kernels, focusing on producing value-added products for export to high-end markets The company chooses a strategy of sustainable development, being responsible for the environment and the community according to international standards in addition to improving revenue and profit The potential as well as the opportunity for Lafooco to promote its strengths in the international market, especially the UK, will be high if domestic production is improved.Because the climate in Vietnam is very suitable for the development of cashew nuts, the quality of cashew nuts will be greatly improved through the process of fertilization and irrigation Vietnam's economy is still at the bottom of the smile chart (focusing on production), so product quality will be more focused British people are very interested in healthy food, so they will often focus on potential products like Lafooco's cashews There are some weaknesses when the company chooses to develop in this market in the future First of all, It impact on the environment if produced in large quantities Cashew nut production is not easy Cashew nut shell contains a mixture of oils that are quite toxic and can affect the health and safety of workers if they are negligent or not follow safety rules In addition, cashew workers have not yet enjoyed benefits at work, but have to suffer from low-income jobs, long working hours, a toxic and unsafe working environment, benefits and benefits incomplete benefits The situation is even worse in small businesses or factories where the employer is not concerned with employee interests and corporate responsibilities Cashew nut production by less modern methods also contributes to environmental pollution due to the stench from the production process, wastewater and shells discharged For example, the technology of extracting cashew oil in the past not only adversely affects the health of workers, but also has a potential risk of environmental pollution due to wastewater However, about years ago, steam steaming technology was born, helping to solve these problems with the effect of no longer harmful wastewater into the environment Regarding sterilization, the traditional method is also replaced by a method that does not use any chemicals The Low Oxygen technology applied to Lafooco's processes is so safe that it is accepted for use in organic products With those efforts, the company has been continuously certified to standards such as HACCP, BRC, SEDEX for many years and passed the monitoring and evaluation programs of many international customers.Second, In recent years, the biggest challenge of Vietnam's cashew industry is the large fluctuation in the price of raw cashew nuts and exported finished products Some cashew nut production and processing establishments suffered losses and went bankrupt due to price pressure According to statistics in June 2018, 80% of business enterprises with losses had to close factories Cashew acreage also tends to decrease Moreover, not to mention the difficulties of entry due to high tax prices and competition in the consumption of cereals and cashew nuts in the UK Thirdly, the company has no clear strategy about financial and human resources In summary, the market with many difficulties also has potential for development, so the UK market is also an effective strategy of Lafooco in the future REFERENCES Chi phí sản xuất tăng, lợi nhuận Lafooco tăng trưởng âm quý IV/2022 (2023, January 31) Việt Nam Index https://vietnamindex.vn/chi-phi-san-xuat-tang-loi-nhuanlafooco-tang-truong-am-trong-quy-iv2022-a204135.html Điền, K.- L K (n.d.) 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Tin tài http://mof.gov.vn/webcenter/portal/btcvn/pages_r/l/tin-bo-tai-chinh? dDocName=MOFUCM092166 27 Kinh tế Anh bị ảnh hưởng Brexit nào? (n.d.) Bnews https://bnews.vn/kinh-te-anh-bi-anh-huong-cua-brexit-nhu-the-nao/270533.html 28 Kinh tế Anh sau rời EU (2022, December 1) VnExpress https://vnexpress.net/kinh-te-anh-sau-khi-roi-eu-4541972.html 29 Một số điều cần biết xuất vào thị trường Anh Quốc (2021, September 8) luật Minh Khuê https://luatminhkhue.vn/mot-so-dieu-can-biet-khi-xuat-khau-vao-thitruong-anh-quoc.aspx More from: Business Economics KTEE312 Trường Đại học Ngo… 618 documents Go to course BÁO CÁO THỰC TẬP 31 TẠI NGÂN HÀNG TMC… Business Economics 100% (33) Giải bài tập môn Kinh 44 tế kinh doanh thầy Việt Business Economics 100% (9) Các yếu tố ảnh hưởng 29 tới số hạnh phúc… Business Economics 100% (8) Đề cương Hướng dẫn 56 ôn tập môn Kinh tế… Business Economics 100% (6) More from: Tiên Nguyễn Trần… 223 Trường Đại học Ngoại… Discover more BAZ 5-19 - vfdbbe Environmental Economics 100% (1) 32X - dbdb 44 Kinh tế trị None 5-19t WAZ - zvgb 70 Environmental Economics None GT học phần Lịch sử Đảng cộng sản VN (C)… Lịch Sử Đảng None Recommended for you Midterm with answers 11 Business Economics 100% (1) Chapter 01-STS 13 business english tatm Business Economics 100% (1) KLE - BIG4 Practice 23 TEST accounting 100% (2) ACCA AFM Note 146 Opentution accounting 100% (1)