Because the price segmentof Tuong An is suitable for all audiences.German consumers are very interested in product quality, how products are made.Therefore, businesses need to pay more a
EXECUTIVE SUMMARY
Regarding products, Tuong An needs to improve packaging and product materials to suit the needs of German consumers In addition, prioritizes healthy products as well as diversifying models and sizes to attract diverse customer segments.
In terms of price, businesses need to promote this strength Because the price segment of Tuong An is suitable for all audiences.
German consumers are very interested in product quality, how products are made. Therefore, businesses need to pay more attention to the production stages by using modern, environmentally friendly technologies,
Launched marketing strategies to increase brand awareness in the German market by increasing website engagement, social media strategies, etc.
Tuong An needs to promote its strengths in distribution through indirect and direct sales channels.
Increase brand competition with domestic and foreign competitors.
COUNTRY SELECTED
Brief discussion of Germany’s historical developments
After the Second World War (1939–45) and after the occupation of the victorious powers (the United States, the Soviet Union, Great Britain and France), Germany consisted of two countries, East Germany and West Germany While East Germany fell further and further behind economically, West Germany was a resounding success Within two decades of its defeat, it had become one of the wealthiest countries in the world, with prosperity extending to all walks of life The economy developed so successfully that eventually several million foreigners also came to West Germany to work On July 1, 1990, this was a turning point in the world economy as both countries merged into one After Germany's reunification, the economy showed signs of transformation For example, GDP in 1990 grew at a rate of 4.6%.The unemployment rate also fell to 7.2% This significant improvement is due at the same time to the opening of a large new market of about 16 million people and the availability of a large new workforce.
The National Business Environment
The German-speaking peoples—which include the inhabitants of Germany as well as those of Austria, Liechtenstein, and the major parts of Switzerland and Luxembourg; small portions of France, Belgium, the Netherlands, and Italy; and the remnants of German communities in eastern Europe—are extremely heterogeneous Standard German itself is something of a hybrid language in origin, drawn from elements of the dialects spoken in the central and southern districts but with the phonetic characteristics of the north predominating.Indeed, the pronunciation of standard German is an arbitrary compromise that gained universal currency only in the late 19th century
Germany has long played an important role in Western culture, and the arts have been central to German bị bị ny’s idea of itself Popular festivals continue to abound in the west, southwest, and south, the regions that have clung most to the practices of a traditional, preindustrial age For example, the donning of elaborate wooden masks during the pre-Lenten celebrations in the southwest remains unchanged despite being televised; hundreds of smaller towns and larger villages in the south still commemorate an anniversary from the Thirty Years’ War with a parade in 17th-century costume or, in Roman Catholic areas, march in full procession on Corpus Christi Day.observance 2.2.1.4 Population
Christianity is currently the dominant German religion with over 50% of the population identifying as Christian, while roughly 20–30% are nonreligious Other religions such as Islam, Buddhism, Hinduism, and Judaism each make up 5% or less of the population.
The current population of Germany in 2023 is 83,294,633 (83 M, 294T 633) people. Here is the population growth chart.The following is a chart of population growth It can be seen that Germany's population fluctuated quite strongly in 2010 and gradually stabilized, increasing slightly in recent years
As of the beginning of 2023 according to our estimates Germany had the following population age distribution:
Image 2.1 Population growth for Germany
As we can see the Germany population pyramid has a contracting type This type of pyramid is more common for highly developed countries with low birth and death rates. Usually countries with such kind of population age distribution model have long life expectancy, high level of education and good health care.
Germany is a democratic and federal parliamentary republic, where federal legislative power is vested in the the parliament of Germany and the representative body of Germany's regional states
Germany is a Federal Republic and parliamentary democracy The German government, led by the Chancellor, is elected by the public and holds executive power.Two chambers exercise legislative power: the Bundestag (German parliament); and the Bundesrat, which represents the 16 federal German states.
The current German Chancellor is Olaf Scholz, from the Social Democratic Party (SPD) He worked as vice chancellor to Angela Merkel and Minister of Finance from 2018– 2021.
The current President is Frank-Walter Steinmeier of the Social Democratic Party(SPD), who won 74.3% of the vote in 2017 He was re-elected in February 2022
Foreign Direct Investment in Germany increased by 1594.81 million EUR in May
Germany of course no longer has direct control over its monetary policy, being a major constituent of the Eurozone However, the European Central Bank ECB, is located in Frankfurt and is based upon the principles of the German Bundesbank Given the size and importanc,k along the lines that what is good for Germany is good for the rest of the EU
All Germans and legal residents of Germany are entitled to free “medically necessary” public healthcare, which is funded by social security contributions However, citizens must still have either state or private health insurance, covering at least hospital and outpatient medical treatment and pregnancy
As well as statutory health insurance, the German government’s social security system also provides several different benefits and allowances such as Housing benefit, child benefits, maternity benefit, parental allowance, sickness benefit, child sickness benefit…
Germany's surface area for 2020 was 357,590 km2 Germany has five distinct geographical areas and widely varying landscapes From north to south, these are the flat north German lowlands, the hills and the low mountains of the Mittelgebirge, the west and south German plateaus and mountains, the south German Alpine foothills and lake country,and the Bavarian Alps with the Zugspitze (Germany's highest mountain, 9,717 ft.) nearGarmisch
Four cities have a population of over 1 million, yet another ten cities have more than 500,000 inhabitants About 80 cities have a population of more than 100,000 people some of the largest cities such as: Berlin,Hamburg, Munich , Cologne…
Germany is in the Temperate Zone and enjoys frequent weather changes, sometimes daily The country has four distinct seasons with rainfall frequent in most months, especially in the autumn Winter temperatures and snowfall tend to be more extreme in the southern part of the country where the average elevation is higher, but even low-lying Berlin has snowfalls and winter temperatures that occasionally dip below 10°F.
Market and Size Potential
Germany is the largest economy in Europe and the fourth largest in the world. According to World Bank data, in 2020, Germany's total GDP will reach 3.806 billion USD (second only to the US: 20,937 billion USD, China: 14,723 billion USD, Japan: 5.065 billion USD) GDP also represents an economy's purchasing power, and so it's not surprising that Germany is one of the world's largest markets for purchasing power.
Image 2.3 GDP of Germany (Source: World Bank, 2021)
Over the past decade, Germany's GDP has fluctuated unevenly over the years and increased slightly from $3.744 billion in 2011 to $3.806 billion in 2020 In the past two years, the country's economy has also tended to decline decrease due to many reasons, including the impact of trade tensions between major economies (EU - US, US - China ), the UK's departure from the EU, and especially since 2020 is due to the outbreak of the COVID-19 pandemic On average in the period 2011-2020, Germany's GDP growth rate is 1.39%, higher than the EU's average GDP growth rate for this period (0.72%).
Germany's economy is quite stable with macroeconomic indicators such as inflation rate, Germany's unemployment rate being maintained at low levels During 2011-2020, the average German inflation rate was 1.64% and the average unemployment rate was 4.47%
In terms of population, Germany is one of the developed countries with a relatively large population size, with about 83.2 million inhabitants - ranked 19th in the world and 2nd in Europe in 2020, according to data from the World Bank World goods Germany also belongs to the group of high-income countries in the world with GDP per capita reaching 45,724 USD/year in 2020, ranking 16th in the world (Statisticstimes.com) As a result, German consumers have a high ability to pay for consumer goods.
For many years, Germany has maintained the 3rd largest exporter and importer of goods in the world (after the US and China) According to statistics of ITC Trademap, in
2020, Germany's total import and export turnover of goods is 2.550 billion USD (accounting for about 67% of Germany's GDP), of which exports reach 1.378 billion USD and imports reach 1,172 billion USD.
Germany is home to the world's leading manufacturing industry, and although it is able to meet some of its demand, it still has a large demand for imports of manufacturing products such as machinery and equipment , raw materials, fuel besides the demand for importing consumer goods.
For agricultural products, although the share in total imports is not large,Germany is still the EU country that imports the most fresh and processed fruit and vegetable products (USD 23.1 billion), tea - coffee - spices (US$ 23.1 billion) 4 billion USD),processed seafood (1.65 billion USD), honey (274 million USD)… in 2020
Regarding the road transport system, Germany currently owns 650,000km of roads, of which the local road system accounts for 231,000km The German road system is the largest in Europe by volume In 2015 alone, the total distance traveled by all cars in Germany amounted to 02 trillion kilometers, a staggering number compared to 76 billion kilometers traveled by rail and 35 billion kilometers traveled by road air.
Image 2.4 AutoBahn Unlimited Speedway Route
In addition, Germany also owns the Autobahn highway system, with a total length of up to 12,996 km and is one of the highway systems with the largest density in the world A special feature of the Autobahn network lies in the regulation that does not limit the speed of vehicles However, the recommended limit is always 130 km/h
For inland waterway traffic, according to 2012 statistics, the total length of inland waterways and canals that are regularly used is 7,500km The main linking channels include the Elbe River with the Emsi River, Dortmund and the Baltic Sea with the North Sea The most important inland waterway consists of the Rhine and its tributaries, with a larger volume of freight passing through it than any other European waterway The Kiel canal system is of particular importance in connecting the Baltic Sea and the North Sea Major ports and ports include Berlin, Bonn, Brake, Bremen, Bremerhaven… Currently, Germany has a fleet of 427 merchant ships.
Regarding air traffic, Germany currently has 539 airports, of which 318have been paved with asphalt and 23 helipads In 2013, Germany was the country with the fifth largest civil aircraft market in the world with 105,016,346 passengers and 7,026 million tons of cargo in circulation However, the introduction of a new high-speed railway has made the aviation industry in Germany face fierce competition.
Germany's television market is the largest in Europe, with about 38( thơ ty ei) million households watching TV About 90% of German households have cable and satellite
TV (2012), a wide variety of free mass TV channels and commercial There are more than
500 public and private radio stations in Germany, of which Deutsche Welle is the main German radio and television agency broadcasting in foreign languages Germany's national radio network is Deutschlandradio, while ARD stations cover local service.
Many of Europe's best-selling newspapers are published in Germany The newspapers (and internet versions) with the largest circulation are Bild, Die Zeit, Süddeutsche Zeitung, Frankfurter Allgemeine Zeitung and Die Welt, the largest magazines are Der Spiegel, Stern and Focus
Technology: Germany ranks 4th( for) in the technology rankings of countries around the world is one of the leading countries in many fields such as the automobile industry, space science and military technology Germans are also rated as leading experts in military technology, engineering, medical research and infrastructure development.
Germany is home to three of the world's leading scientific and technological research organizations: the Fraunhofer Association, the Max Planck Society and the Gottfried Wilhelm Leibniz Scientific Community Besides, Germany is also the birthplace of famous global car manufacturing companies such as BMW, Volkswagen, Mercedes, etc.
Meizan cooking oil: has a variety of cooking oils that are beneficial to health such as: Meizan Vegetable Oil, Meizan Soybean Oil, Meizan Margarine, Mainly aimed at housewives. products and brings delicious flavors to meals for millions of Vietnamese families Features: Neptune Light is produced from high quality natural oil ingredients: Soybean Oil
ENTRY MODE SELECTION
Favorable
Germany is the main export market in the European region for many key export products of Vietnam such as shoes, clothing, vegetables, seafood, coffee, furniture, etc. Although most of these products are accounting for only a small market share in Germany's total import turnover, the growth rate of exports to Germany is increasing, many Vietnamese goods have acquired a certain position in this market.
In the coming time, Vietnam's goods exports to Germany are forecasted to continue to grow thanks to favorable factors such as:
The number of Asians in general and Vietnamese in particular are living, working and studying in Germany has been increasing in recent years These consumers tend to use a lot of Asian products, including Vietnamese products;
German consumers are also more and more open to using Asian products in general and from Vietnam in particular They are willing to use products imported from developing countries if the product has clear origin, good quality and competitive price Meanwhile, Vietnam has many strong products that German consumers have high demand or are increasing demand for such as wooden furniture,garment, footwear, coffee, tropical vegetables…;
Vietnamese products are of increasingly high quality and are gradually conquering difficult markets, including the EU market in general and Germany in particular Many large Vietnamese enterprises have invested methodically and for a long time limit for the production and export of high-standard goods for export to developed markets, with strict requirements on product quality and design Vietnam is also focusing on attracting high-tech investment in potential industries but with outdated technology such as vegetables, fruits, seafood, etc to improve the quality of export products;
Vietnam is one of the few countries in Asia (Japan, Korea, Singapore, ) that has anFTA with the EU, so Vietnamese goods have an advantage over competitors from many other countries in the region when enjoying preferential tariffs as well as other advantages from the EVFTA Agreement Moreover, with Vietnam implementing its commitments on labor, perspective (e.g boycott campaigns using products manufactured by workers in a substandard environment, or being exploited );
Under the negative effects of the COVID-19 pandemic, the German economy was severely affected, leading to a decrease in the income of a part of consumers This leads to an increase in demand for more affordable products from developing countries like Vietnam,especially for essential goods such as food, clothing, shoes, etc Therefore, Vietnam has the strength to produce these products, the prices are often lower than from developed countries,plus the advantage of tariffs thanks to the EVFTA, so there will be many opportunities to increase market share in Germany.
Hard
The mandatory import requirements on food hygiene and safety, technical standards and other import regulations of Germany/EU are very strict and difficult to meet than many other export markets of Vietnam Sanctions for violations of import regulations are also very strict Goods found to be in violation of mandatory German import requirements are at risk of return or on-site destruction In particular, in some cases, if the frequency of violations is high (several times in a certain period of time), the importing country may apply strict control measures or handle them severely (increasing the frequency, rate of inspection, import ban for a period of time );
German consumers have very high requirements for the quality, appearance, brand, and reputation of imported products These requirements are often much higher than that of consumers in many of Vietnam's traditional exporting countries such as China, ASEAN, and even some other EU members Meanwhile, many Vietnamese products have not yet ensured stability and consistency in quality, are often limited in form, design, and variety, and pay little attention to building images and brands In addition, the German people are increasingly interested in sustainable consumption, choosing consumer products that ensure health, protect the environment, protect workers Therefore, German importers often require imported products to have additional certifications/certifications (which are not mandatory import regulations) such as some certificates of food safety, social certificates, etc association, green label, eco-label… These requirements cost Vietnamese enterprises more time and cost to meet, thereby also reducing their interest in the German market;
Germany has a geographical distance far from Vietnam, so the cost of transporting and preserving goods exported to this market is high, leading to increased product costs and difficulty competing with goods from countries with geographical locations near Germany. Especially in the recent period of the COVID-19 epidemic, the high costs of transportation and logistics made Vietnam's exports to markets as far away as Germany significantly affected;
The level of competition in the German market is relatively high Up to now, the EU has had a total of 42 FTAs in effect with 79 partners, and reserved GSP preferential mechanisms for 67 developing and least-developed countries In addition, Vietnam's export goods also have to compete fiercely with Chinese goods - the country that exports the most to Germany up to the present time China and many countries enjoying preferential tariffs in the
EU have similar export product structure to Vietnam, leading to a high level of competition.
Opportunity
Especially, with a difficult market like Germany, Vietnamese enterprises need to pay attention to improve the competitiveness of export products.
In the book "Business Handbook of Taking advantage of EVFTA to import and export goods between Vietnam and Germany" compiled by the Center for WTO and Integration (VCCI), one of the biggest opportunities that EVFTA brings to Vietnam's exports Vietnam's access to the German market is the EU's (including Germany's) preferential tariff commitments in this Agreement Although before the EVFTA came into effect, when exporting to Germany, Vietnam enjoyed tariff preferences under the EU's GSP mechanism, but not all products were eligible for tax reductions and most of the preferential tax rates were also reduced not as good as EVFTA.
Moreover, GSP is a unilateral preferential mechanism, the EU can stop or adjust tariff preferences and conditions for preferential enjoyment at any time, while the EVFTA tariff commitment is a reciprocal commitment between Vietnam and the EU, is stable and predictable.
In addition, the preferential tariff rate that the EU offers to Vietnam is also the highest level of tariff commitment that Vietnam has achieved from an FTA partner up to the present time (the rate of tax elimination to the end of the roadmap is up to 10 percent) up to 99.2%,the remaining products also enjoy tariff quotas) The key export products of Vietnam that are considered to have the most opportunities from the EVFTA's tariff reduction commitments the EU (including Germany) maintains relatively high MFN and GSP tariffs on these products.
There are not only opportunities from tariff reduction, the opportunity to cut production costs, but in EVFTA there are other opportunities from reducing non-tariff barriers For example, commitments on non-tariff measures of the EU (including Germany) for Vietnamese goods such as transparency and facilitation of customs clearance and release procedures, and exemption from inspection procedures SPS for qualified Vietnamese production facilities, on facilitating the recognition of equivalence of Vietnam's SPS measures, on encouraging recognition of conformity assessment results in terms of Vietnam'sTBT will make it easier for Vietnamese goods to access the German market
Challenge
Need to learn in detail, regularly update and ensure full compliance with German import regulations and procedures; carefully study the German market (especially the niche market), find out in detail about the tastes and consumption needs of the people of this country, thereby researching to improve the quality and design of products to suit the market. market and consumer tastes in this country.
Learn the mechanisms and methods of accessing channels/distributors of goods in Germany, especially e-commerce channels, which are becoming more and more popular and becoming the mainstream shopping trend of consumers Virtue.
Especially, with a difficult market like the German market, businesses need to pay attention to improving the competitiveness of their products.
Target market
German consumers are looking for cooking oil products that are healthy, natural and free of harmful additives Products with high nutritional value, cholesterol-free and produced using environmentally-friendly processes are also popular
In addition, German consumers are also looking for cooking oil products with diverse features and suitable for their needs For example, cooking oil products can be used for a variety of purposes, from food processing to beauty and health care.
According to statistics of Euromonitor International, the total value of the cooking oil market in Germany will reach about 1.7 billion USD by 2020 In which, vegetable cooking oil accounts for the majority of the market share, with oils such as sunflower oil and oil. horseradish, canola oil, and soybean oil Alternatively, olive and canola oils can be found in specialty stores.
Local producers account for about 45% of the total cooking oil market share in Germany, while foreign producers account for about 55% The largest cooking oil producers in Germany include: Unilever, Nestle, Deoleo, and Borges International Group
Some differences between Vietnam and Germany cooking oil market: In short, the difference between Vietnam and Germany cooking oil market is very clear and should be noted when trading and importing cooking oil products Businesses need to understand and meet market requirements and comply with regulations and legal frameworks to ensure the quality and food safety of their products.
Consumer behavior: In Vietnam, cooking oil is one of the essential products in people's kitchens, so price is an important factor for consumers Vietnamese consumers often prefer cheap cooking oil products and rarely care about quality Meanwhile, German consumers have a higher average income, so they tend to look for high-quality and food-safe cooking oil products, even though the prices are higher.
Vietnam: The cooking oil market in Vietnam is making strides to improve food quality and safety, but there is still room for improvement in product
Germany: The German cooking oil market has strict regulations on food safety, including control of product quality and origin of ingredients, which help ensure that the products sold on the market meet the standards safety and quality.
Price: According to statistics from online retailers in Vietnam and Germany, the price of cooking oil in Germany is often much higher than the price in Vietnam This is largely due to differences in product quality and food safety, as well as quality testing and certification.In addition, the price of cooking oil in Germany is also affected by the cost of transporting and storing the product.Germany is a developed country, transportation and storage costs are more expensive than Vietnam, so the price of the product is also higher.However,the price of cooking oil in Vietnam also varies depending on the brand and quality of the product.
Market Segment
Families: Families with young children are an important segment for Tuong An cooking oil in Germany Consumers in this group are often concerned with the quality and safety of products and use cooking oil for home cooking.
Singles and people living alone: This is a relatively small segment of consumers, often more concerned with price than product quality.
Elderly people often have a need to use healthy and healthy cooking oil products, to reduce heart problems and cholesterol.
Young people: Young people are often more concerned with price than product quality, and tend to buy products with prices that fit their budget.
High class: This is the main target audience of Tuong An cooking oil in Germany.This class has a high income and is interested in product quality, diverse features and product safety.
Middle class: For the middle class, the price of the product is also an important factor, but the quality of the product is still appreciated.
4.2.4 According to lifestyle, values and buying behavior:
Consumers care about the environment: This is an important consumer group for Tuong An cooking oil in Germany They care about product quality and also care about how the product is made, so products tend to be produced using environmentally friendly methods.
Health-conscious consumers: For health-conscious consumers, Tuong An cooking oil products are manufactured using modern technology and do not contain preservatives,meeting the requirements of quality and consumer safety in Germany.
MARKETING OBJECTIVES
Marketing Objective in the 3 year
5.1.1 Increase potential customers in 12 months
The goal is to increase the number of customers by increasing the number of leads by 25% in the next year by running two new lead generation channels on the website of Tuong
An company by the customers who have purchased and used it will be able to recommend the product to friends and family
5.1.2 Increase brand awareness in 12 months
Improve brand awareness in the German market by increasing social media engagement by 50% in the next twelve months through a combination of organic and paid social media campaigns This objective is specific because it outlines a clear target to increase social media engagement by 50% in the German market It is measurable because Tường An can track its progress towards achieving this target It is achievable because the objective is realistic It is relevant because it is aligned with Tường An's overall goal of increasing brand awareness And it is time-bound because it has a specific timeframe of six months To achieve this objective, Tường An can develop a social media strategy that is tailored to the German market This can include creating engaging content that resonates with German customers, leveraging influencers and partnerships to reach a wider audience, and investing in paid social media campaigns to increase reach and engagement.
Tuong An is a long-standing company and has a very good sales channel in Vietnam, but when entering the German market, it has difficulty in finding and retaining customers (Vietnamese customers living in Germany, Vietnamese international students) Because with customer retention, the cost to sell the product will be much cheaper than the cost to attract new customers (customers are German).
Your goal could be the following: 5% reduction in the rate of customers who do not buy by reducing customer service wait times by 15% (customers can order online on the company's official website) and attracting customers through email automation.
5.1.4 Increase website traffic in 6 months
Although Tuong An is a large enterprise in Vietnam, when entering the German market, not many people know about it Drives website traffic, increases brand awareness, which in turn increases sales and overall growth.
Goals could be: increase the number of customers accessing the Website by 20% half of the year through guest posts, social media advertising, and return links More specifically will include metrics on the number of guest posts, types of social ads, link building strategies.
STRATEGIES
Product adaptations
Market demand: constantly changing and developing Because the market is constantly changing, the product must also constantly innovate to adapt Therefore, it is necessary to research the market carefully before renovating the product.
Thorough understanding of cultural characteristics to promptly adapt products to the cultural characteristics of each German market.
Economic development level: the level of economic development is associated with the living standard and income of consumers, thus directly influencing the market's wants and needs German consumers are quite picky, so they care more about product quality than price.
Compare Tường An Oil to competitors’ products
Board 6.1 Board compare Tường An Oil with competitor
Creating a product can be the key to success or failure Even if international marketers manufacture the right product, promote the right product, and initiate the right distribution channels, they will fail if the product is priced incorrectly The pricing is affected by many factors such as production costs, transportation costs, market demand, competitive situation,influence of laws, tariffs, etc Therefore, the pricing can be determined Consider it one of the hardest jobs.
The goal of the pricing strategy
Germany is a country with a large population and high income The demand for cooking oil and food products is huge The stable economic development and high income of the people create a potential market for the consumption of cooking oil.According to data from the Food and Agriculture Organization of the United Nations (FAO), the average German consumption of cooking oil in recent years has ranged from about 12-15 kg/person/year.
According to Vietnam Report's consumer survey conducted in August 2020, Tuong
An was honored as the brand most chosen by consumers in the field of cooking oil InVietnam, Tuong An has become a familiar cooking oil brand and holds a certain position in the hearts of customers But in the German market is still quite a strange name, so businesses need a reasonable penetration price policy to attract the attention and trust of customers in this new market Tuong An will apply an aggressive pricing strategy to expand the consumption market to meet the broad needs of customers.
Price selection facility
6.2.2.1 Domestic production and shipping costs a Investment in technology, production lines
Tuong An uses a variety of advanced and modern production technologies such as European refining technology (which is one of the important factors determining the quality of cooking oil, helping to remove impurities and keep omega 3, 6 nutrients) ,9; vitamins A,E) with high investment costs The lines are synchronized, belong to the new and modern generation, scale and investment according to the leading standards of Japan, America andEurope. b Cost of input materials
Raw materials sources to produce bottles of Tuong An premium cooking oil are imported directly from agricultural powers such as Australia, Brazil, Argentina, ThaiLand, Malaysia and Materials account for 85-90 proportions % cost of cooking oil products. c Transportation costs
Since the target market is Germany, shipping costs will be high and there will be many stages of transportation.
Provisions in tariff barriers
The EU-Vietnam Free Trade Agreement (EVFTA) is the "door" for Vietnamese goods to expand their market share in the German market, especially, opportunities from tariff cuts and production costs , improving competitiveness and reducing non-tariff barriers thatEVFTA brings.Specifically, Germany's EVFTA preferential tariffs for products imported fromVietnam are as follows: As of August 1, 2020, when the EVFTA comes into effect:eliminating tariffs on 85.6% of tariff lines; As of January 1, 2027, tariffs will be eliminated for a total of 99.2% of tariff lines.
Competitor's price
The German cooking oil market has high competition from domestic producers and products imported from other countries Average price for cooking oils in Germany:
Sunflower Oil: The average price ranges from around 1.5 EUR to 3 EUR for a 1-liter bottle of sunflower oil.
Olive oil: The average price ranges from about 4 EUR to 10 EUR for a 500ml to 1 liter bottle of olive oil However, prices can be higher for premium olive oils or from well-known producing regions.
Vegetable oils (such as canola oil, canola oil): The average price ranges from about 2.5 EUR to 5 EUR for a 1-liter bottle of vegetable oil
Price list of VAT 19% TND 20%
Board 6.2 Price list of Tường An
Tuong An Vegetable Oil 1000ml 60k-90-125000 (4.8UER)
Tuong An Soybean Oil 1000ml 70k-105-146000 (EUR 5.61)
Tuong An Extra Virgin Olive Oil 500ml 175-262500-365000 (14 UER) Tuong An Golden Cooking Oil 1000ml 85k-127500-177000 (6.8 UER)
In the short term (in the first year): Tuong An can apply a penetration pricing strategy, offering prices lower than competitors in the same industry to attract customers to experience the product.
In the long-term (2 years later): after the product is stable and has a certain number of customers, Tuong An will raise the price and combine with promotional strategies that strongly emphasize product quality Let customers know that this is a product with a price that goes hand in hand with quality.
In general, compared to the average price in Germany, the selling price of Tuong An will be a bit higher But with high quality requirements and not too concerned about price,this is still a stable price for Tuong An to penetrate the German market.
Promotion Strategies
Market survey and brand identity building
Create awareness and initial interest with consumers
Build relationships with customers and intermediaries
Create interaction and engagement of customers and intermediaries
6.3.1.1 State 1 (last 3 months) a Main activity
Build a creative, trustworthy and valuable brand image.
Conduct surveys, interviews, or collect data to better understand the market b Execution plan
Create a brand name, logo and core message suitable for the German market
Message: "Proud to bring you the best selection of healthy cooking oils"
Organize the program "Secrets of a healthy heart from Tuong An cooking oil" at German culinary activities such as Berlin Food Week or street food activities The main activity in the program is to interview the participants about their preference for cooking oil and their understanding of the health effects of cooking oil And give useful information about vegetable oils to consumers' health.
Prepare 250ml bottles of Tuong An cooking oil to give to those who participated in the interview program.
Image 6.5 Logo and message of Tường An
6.3.1.2 Phase 2 (Last 5 months) a Main activity b Execution plan
Producing TVCs advertising Tuong An cooking oil, and posters
Contents of the TVC: Evidence of an expert's statement about the blockage of arteries due to high cholesterol in the blood Thereby talking about the Tuong An Premium cooking oil line that does not contain cholesterol, which is very good for the heart At the end of the paragraph TVC will state the message "Take care of your family's health by choosing natural and healthy cooking oils."
Advertising media: TVC will be enhanced with advertising on television with a frequency of 3 times a day and on Youtube with a frequency of many times on many different videos.
Poster advertising medium: Advertising on led screens at supermarkets and in famous magazines such as magazinesFocus, Brigitte or Bilt magazine
Image 6.6 Poster of Tường An
6.3.1.3 Stage 3 (lasts 4 months) a Main activity
Building websites and social networks
Collaboration with chefs and food bloggers b Execution plan
Create a professional and attractive website with information about cooking oil products, uses and values Create and manage social media accounts to interact with customers, share recipes, and provide helpful information about healthy eating.
Invite them to test and share their experience using the company's cooking oils in delicious recipes and dishes Film the testing process and share it on the company's homepage and social media channels
6.3.2.1 State 1 (last 5 months) a Main activity
TV ad campaign continues b Execution plan
Implement 2 years 1 phase but promote more on mass media channels such as Facebook, Youtube
6.3.2.2 Phase 2 (last 3 months) a Main activity
Partnering with retailers and restaurants b Execution plan
For distribution agents: Agents will enjoy a wholesale price
15% lower than the retail price In addition, when importing from
600 bottles or more, you will receive an additional 5% discount on the total bill.
For retail intermediaries: Intermediaries will be deducted
5% commission rate on the selling price of each product
For consumers: When you buy 2 bottles of 1 liter cooking oil, you will get 1 400ml bottle for free at a discount
Collect customer information such as phone number, email
6.3.2.3 Stage 3 (last 2 months) a Main activity
Enhance your social media presence b Execution plan
Boost your social media activity by sharing a variety of recipes, information on the company's health benefits and uses of cooking oils.
Organize a recipe creation contest on the Tiktok platform and cooperate with tiktokers to call for everyone's participation
Image 6.8 Cooking Contest of Tường An
6.3.3.1 State 1 (last 5 months) a Main activity
Building an online community b Execution plan
Promote online advertising on social media platforms such as Facebook, Youtube, Tiktok or website and mobile application.
Organize live streaming sessions on the company's official platforms such asFacebook, Tiktok to talk about the benefits and useful features that Tuong An cooking oil brings Thereby opening shopping carts and encouraging purchases right across platforms.Create a forum for consumers to share their own recipes and the company has multiple sources of customer data
Create feedback links and post them across platforms to listen to customer feedback. When participating in customer feedback, customers will be given a 1 euro discount voucher for their next purchase (The voucher has a limited time and is not cumulative)
6.3.3.2 Phase 2 (lasts 4 months, during the food festival season) a Main activity
Building branding awareness b Execution plan
Participating, and sponsoring at culinary events in Germany such as Berlin Food Week, Cheat Day Balingen - Street Food Festival or Cannstatt folk festival.
Call or email to listen to customer comments and feelings about the quality and service that Tuong An brings Show interest and prioritize customer feelings Also, give them a voucher for their next purchase.
Measure and evaluate campaign effectiveness b Execution plan
Join, and sponsor the fund to support heart surgery and cardiovascular care such as German Heart Center Berlin or the German Society of Cardiology.
Producing and using environmentally friendly products, Waste treatment and recycling or Waste management and reduction are activities that Tuong An should follow in order to raise the spirit of caring for the surrounding environment around.
Measure the results of advertising campaigns through metrics such as social media engagement, sales growth, website traffic, online community growth, and customer feedback.
Recommendations
Offer a diversified product strategy to suit a wide range of needs
Planning the right pricing strategy, hitting the right target market segment
Focus on effective communication activities because the budget is limited
Investing in technology development in production
Evaluate
With the current potential, enterprises can fully implement the above recommendations within 3 years and can achieve the set target of market penetration.
Measure
Make good use of state support measures and have a development strategy
Developing human resource development strategy
Always innovate and apply digital transformation, develop technological processes.
Control
In order to minimize the risks of exchange rate and fuel price, the Company always closely monitors the fluctuations of world raw material prices and demand for raw materials to have a plan to reserve raw materials every day At the same time, the Company also regularly updates and monitors the fluctuation of USD in the world
The Company monitors liquidity risk by maintaining a certain amount of cash and cash equivalents, bank loans
The Company manages interest rate risk by analyzing the competitive situation in the market to obtain interest rates that are beneficial to the Company's purposes and remain within its risk management limits.
Customs documents for export to Germany normally include:
Business registration of the exporting enterprise (if exporting for the first time, the next time is not necessary)
Certificate of change of business registration information.
Certificate of tax code (if exporting for the first time)
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