Final exam assignment international marketing plan for bach coffee in the japanese market

17 Trang 6 ii EXECUTIVE SUMMARY Bach Coffee is a Vietnamese coffee brand that utilizes modern coffee production technology, carefully selects high-quality coffee beans, and follows a s

THE MINISTRY OF FINANCE

UNIVERSITY OF FINANCE MARKETING –

FACULTY OF MARKETING

FINAL EXAM ASSIGNMENT INTERNATIONAL MARKETING PLAN FOR

Course Name: International Marketing

Course Code: 2321702031202 Lecturer : Đặng Huỳnh Phương Class : CLC_21DMA02 Members:

4 Trần Nguy n B ễ ạch Dương 2121000363

Ho Chi Minh City, 2023

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THE MINISTRY OF FINANCE

UNIVERSITY OF FINANCE MARKETING –

FACULTY OF MARKETING

FINAL EXAM ASSIGNMENT INTERNATIONAL MARKETING PLAN FOR

Course Name: International Marketing

Course Code: 2321702031202 Lecturer: Đặng Huỳnh Phương Class: CLC_21DMA02 Members:

4 Trần Nguy n B ễ ạch Dương 2121000363

Ho Chi Minh City, 2023

iii

MEMBERS AND CONTRIBUTION RATE

No Members Student ID Contribution rate

iv

LIST OF FIGURES

Figure 1 Population of Japan from 1980 to 2022, forecast to 2027 (million people) 3 Figure 2 The chart shows the structure of Japan’s population by age group _ 4 Figure 3 Percentage of coffee consumers in Japan by age group in 2022 5Figure 4 Map of major cities in Japan 8 Figure 5 The chart of Japan's GDP per capita in the period 1960 - 2021 10 Figure 6 Structure of the coffee supply market to Japan (% by volume) 11 Figure 7 Inflation in Japan highest in 41 years 11 Figure 8 Japan was the only G7 country that did not spend more on infrastructure from 1996 2019– _ 12 Figure 9 Coffee market in Japan _ 15 Figure 10 Types of coffee exported to Japan in the first quarter of 2022 16 Figure 11 Bach Coffee logo _ 20

LIST OF TABLES

Table 1 Product lines _ 22 Table 2 Packaging and classify _ 23 Table 3 Bach Coffee’s action plan 29 Table 4 Promotion budget _ 30 Table 5 Measurement 31 Table 6 Control 32

CONTENTS

EXECUTIVE SUMMARY ii

I Company overview 1

1 Introduction of the company 1

3 Vision and mission 1

II Country selected 2

1 Brief discussion of the country's relevant historical developments 2

2 The National Business Environment 3

2.1 People 3

2.2 Government 5

2.3 Geography 7

3 Market and Size Potential 9

3.1 Economy 9

4 Competitive Environment 13

5 Market Summary 15

III Entry mode selection 17

IV Target market 18

V Marketing objective 19

VII Marketing strategies 19

1 Product 19

2 Price 24

3 Distribution 25

4 Promotion 25

4.1 Advertising 26

4.2 Sale promotion 27

4.3 Public Relations 27

4.4 Action plan 27

4.5 Promotion budget 29

VIII Final recommendations 30

1 Evaluation 30

2 Measurement 30

3 Control 31

REFERENCES 33

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EXECUTIVE SUMMARY Bach Coffee is a Vietnamese coffee brand that utilizes modern coffee production technology, carefully selects high-quality coffee beans, and follows a strict roasting and grinding process to deliver fresh and robust coffee experiences to its customers Bach Coffee is actively expanding its coffee exports to international markets with the aim of introducing the Vietnamese coffee brand to diverse cultures, offering high-quality coffee products with the rich flavors of Vietnam to a global audience

Bach Coffee has successfully penetrated the Indonesian market and made a distinct mark there Next, Bach Coffee intends to bring the Vietnamese coffee brand to Japan, one of the largest importers of Vietnamese coffee in the world Japan ranks third globally in annual coffee imports, with Vietnam being the second-largest exporter of coffee to Japan after Brazil The coffee market

in Japan is estimated to generate revenues of up to 6 billion USD in 2023, with a projected annual growth rate of 0.39% (CAGR 2023-2028) (Statista,2023) In particular, the soluble coffee product market in Japan is expected to reach 5 billion USD in 2023, with an estimated annual growth rate

of 1.11% (CAGR 2023-2028) (Statista,2023) This is considered a highly potential and rapidly developing market, offering significant opportunities for businesses to establish their reputation and presence

To promote exports to the Japanese market, experts say that businesses and industries in general and the coffee industry in particular need to research and specifically survey the needs

of the marke.To achieve these goals, Bach Coffee needs to develop the most suitable and effective marketing strategy To approach and meet the demands of consumers and create an identity in the market, Bach Coffee develops valuable strategies based on product strategy, price strategy, distribution strategy, and promotion strategy

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I Company overview

1 Introduction of the company

Bach Coffee, a Vietnamese coffee brand,was established in 2009, representing modern coffee production technology for discerning individuals who understand and appreciate the specialty coffee offerings of Vietnam

Bach Coffee prides itself on the selection of high-quality coffee beans and rigorous roasting

to bring customers fresh and rich flavors cups of coffee They source their coffee beans from reputable coff -producing regions in Vietnam, including ee Đa Lak, Lam Đong, and Cao k Bang, using both Arabica and Robusta coffee bean varieties

Bach Coffee is a young coffee company producing what they are decided to call Vietnamese coffee 'neat' Whereas 'traditional' Vietnamese coffee has oil, sugar, and a touch of salt added during the roasting process to produce a very distinctive caramelly taste, Bach Coffee is roasted with no other ingredients, more of a "western" style of roasting This provides a great alternative for coffee fans who want to enjoy the unique terroir of Vietnamese coffees without the traditional

"butter roast" style, and is suitable for vegans

For Bach Coffee, quality isn't merely "controlled", it is "crafted." It's a daily, repetitive endeavor that involves everyone and is an integral part of every production stage

Address: 24 Street 16 Him Lam, Quarter 5, Hiep Binh Chanh Ward, Thu Duc District, Ho Chi Minh City

Product line: Powdered coffee Moc 1 Robusta Ground Coffee, – 3 in 1 Instant Coffee, Black Instant Coffee, Coffee filter bag (Paper Filter)

3 Vision and mission

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professional service At the same time, Bach Coffee also guides eco-community responsibility through taking advantage of natural resources and implementing charity programs in the society

II Country selected

1 Brief discussion of the country's relevant historical developments

The history of Japan dates back to the Jomon period, around 10.000 BC, when the Japaneseprimarily relied on hunting, gathering, and pottery Later, around the 3rd century BC, Japan made trade with China and Korea, acquiring elements of their civilizations

In the late 19th century, Japan paved the way through exchanges with Western countries through the Meiji renaissance Japan rapidly developed into a superpower, making significant advancements in industry, defense, and military capabilities

During World War II, Japan invaded several countries in the Asia-Pacific region However, after being defeated in 1945, Japan went through a period of reconstruction and was placed under the governance of the Allied Powers

In March 2011, Japan faced a dual disaster with a devastating earthquake and tsunami, leading

to severe hardships for the nation Japan has carried out comprehensive economic reform and recovery With diligence, hard work, advanced scientific and technological capabilities, and abundant resources, Japan's economy has recovered rapidly, solidifying its position as a global economic powerhouse

Currently, Japan is a country located in East Asia, on the Pacific Ocean, east of the Sea of Japan, the East China Sea, China, North Korean Peninsula, and the Russian Far East, extendingalong the Sea of Okhotsk in the north to the East China Sea from the island of Taiwan down south The kanji in Japanese is "origin of the sun", so people are used to calling Japan with the title "Land

of the Rising Sun"

Regarding the relationship between Japan and Vietnam: it began in the late 16th century when Japanese merchants engaged in trade with Vietnam Vietnam established diplomatic relations with Japan on September 21, 1973 In 1992, Japan officially began providing aid to Vietnam Currently, bilateral relations between Vietnam and Japan are developing strongly in various aspects and have entered a new phase in terms of quantity and depth The relations of friendly cooperation and people- -people exchanges are constantly strengthening, evolving into a global and trustworthy torelationship that continues to advance

Population - population growth rate

According to the 2023 statistics, the current Japanese population is 124,998,527 people, accounting for 1.55% of the world's population, the 11th largest population in the world

In 2023, Japan's population is expected to decrease by -503,523 people Natural population growth

is projected to be negative because the number of children born will be less than the number of deaths to -761,114 people According to estimates, daily change of population rate of Japan in 2023:

• 2,229 babies are born every day on average

• 4,315 people die on average every day

• 706 migrants on average per day

The Japanese population will decrease on average -1,380 people per day in 2023 Japan is facing the risk of decline in the population

Figure 1 Population of Japan from 1980 to 2022, forecast to 2027 (million people)

Source: Japan General Statistics Office

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Japan is a country with a highly aging population, the population under the age of 15 accounts for 13.1%, the population aged 15-64 accounts for 64%, the population aged 64 and over accounts for 22.9%

Figure 2 The chart shows the structure of Japan’s population by age group

Source: danso.org

• Japan's low birth rate

The number of children born each year in Japan has dropped dramatically, and the birth rate

in Japan is forecast to fall even further

• High average life expectancy

Life expectancy in Japan is 84.9 years, higher than the average life expectancy of the world population (72 years)

Culture uses Japanese coffee

In Japan, the coffee drinking culture from Europe has positively influenced the consumption

of hot drinks, leading to an increasing demand for coffee among young people

Coffee culture not only encourages young Japanese to consume instant coffee at specialty cafes and branded coffee shops but also encourages them to make their instant coffee at home, creating increasing demand for instant coffee In addition, making coffee with filter paper is also considered a feature in the way of enjoying the country of the rising sun The Japanese have a habit of drinking roasted, bold coffee Later, the presence of Espresso coffee shops created a new habit, giving Japanese people the excitement of brewing coffee Japanese consumers usually drink coffee between waking up and starting work or to improve their concentration at work They also drink coffee alone or to relax with friends

Vietnam's Robusta coffee beans are very popular in Japan with stable quality, price, and highly appreciated coffee flavor Vietnam's coffee also affirmed its value and position in the Japanese market when it surpassed Brazil, the taste gradually consolidated and became familiar

to Japanese consumers

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According to statistics from the International Coffee Organization on the category of coffee consumption in countries around the world in 2022, the Japanese market ranks 3rd in terms of consumption of this item Above all, Vietnam is one of the countries with the highest market share of imported coffee in Japan, It can be seen that, with coffee from Vietnam, the Japanese trust and satisfy their pure coffee taste

Coffee is a commonly preferred beverage that people can also consume at work For instance, tNational Coffee Association (NCAUSA) revealed that coffee consumption among 18-24 year oldsabout 34% and that about 66% of Americans over 18 consume regular coffee and 28% of coffedrinkers Coffee in this country accounts for coffee outside the home as of January 2022 (MordoIntelligence, 2022)

Picture 3 Percentage of coffee consumers in Japan by age group in 2022

Source Mordor Intelligence, 2022:

In addition, Japanese people's consumption trend towards consumer goods such as coffee has always paid special attention to the health factor guaranteed by Japan's strict regulations on food hygiene and safety, then comes the cost and convenience of the product (Mordor Intelligence, 2022)

2.2 Government

Type

Japan is a country with a constitutional monarchy and a parliamentary republic (representative monarchy), in which the Prime Minister holds the role of head of government Although Japan still maintains the Emperor's regime, the Emperor of Japan is only "a symbol

of the country of Japan and for the unity of the nation", had no political power, and only performed a role at important Japanese ceremonies as the head of the nation The government

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three branches: legislative, administrative, and judicial, and is based on people's sovereignty It

is a unitary country consisting of 47 administrative units

Japan has a multi-party system, with many active political parties The Liberal Democratic Party (LDP) is considered the most influential political party, but other parties also play an important role

Tokyo is the capital of Japan Japan has a post-war pacifist constitution It plays a considerable role in international community and is a major aid donor (BBC, 2021) While the internal political environment is generally stable, it has some very powerful neighbours with a long history of diplomatic challenges

Japan has a strong and compliant legal system, with a set of rules and regulations widely applied to maintain social order and govern political activity

Currently, Vietnam and Japan are signing many trade agreements, including the Vietnam - Japan Economic Partnership Agreement (VJFTA), and the ASEAN - Japan Comprehensive Economic Partnership Agreement (AJCEP), and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) Therefore, the two countries' participation

Social security

The Japanese government strives to maintain and improve people's lives based on ensuring social welfare and public health, providing social security through a system of insurance and social benefits

This includes social insurance, employment, health care, unemployment benefits, pensions, and other forms of assistance

Japan is facing the challenge of a growing aging population, which puts pressure on the social security system, leading to ongoing discussions about measures to reform and ensure its sustainability this system

2.3 Geography

Type of surface areas

Japan (日本) is located in the East of Asia, the West of the Pacific Ocean is an island country, so the country is surrounded by the sea on all sides The country is located on the eastern edge of Korea, Russia, and China and stretches from the Sea of Okhotsk in the north to the East China Sea and the island of Taiwan in the south Geographically, Japan's territory has

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mainly forests and mountains, accounting for about 97% of the total area

Japan's total land area is 379,954 km², ranking 60th in the world and accounting for less than 0.3% of the world's total land area Japan has a total of 47 prefectures, of which Hokkaido province has an area of more than 83 million square meters, and the province with the smallest area, Kagawa prefecture, is just over 1 million square meters This is also understandable because the terrain of Japan is mainly large and small islands, and the land area is extremely small

Japan is famous for its long and high mountain range, of which Mount Fuji (Mount Fuji) is the highest peak This mountain is a famous symbol of Japan

Japan is located in the Southern Hemisphere, in a temperate climate area, but geographically stretching to the subtropical region, Japan's climate is unevenly distributed Being an intermediate between hot and cold zones, the weather changes erratically, with 4 distinct seasons, but each region has a different climate along the length of the country

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last longer than usual)

• Southern Japan has a subtropical climate, with mild winters, hot summers, and often heavy rains

3 Market and Size Potential

3.1 Economy

Economic growth rate

The Japanese economy is a developed free market economy Japan is the third largest economy

in the world by nominal GDP and the fourth largest by purchasing power parity (PPP) It is also the second largest economy in Asia It is a member of the G7, G20, APEC, and ASEAN.At the same time, Japan is also the secose-largest economy among developed countries

The Japanese government announced that real GDP grew by 1.6% in the first quarter of 2023 compared to the same period in 2022 One of the key factors leading to this positive result is the growth rate of consumption strong individual, which is an assessment of a new signal that the impact of the COVID-19 pandemic tends to decrease Statistics show that Japan's real gross domestic product (GDP) adjusted for inflation increased by 0.4% compared to the fourth quarter

of 2022 In fiscal 2022 Japan's real GDP expanded by 1.2% marking the 2nd consecutive year of growth After that, Japan's adjusted GDP in the first quarter of 2023 increased to 2.7% Japan's economy grew positively in the second quarter of 2023 according to data released by the Japanese Government, marking the third consecutive quarter of impressive recovery with

an annual growth rate of 6% This is considered a higher-than-expected number, the fastest increase since the October-December quarter Japan's gross domestic product (GDP) saw a quarter-on-quarter increase of 1.5%, above economists' average predictions of 0.8%, and positive data boosted growth annual growth rate of the economy ranked 3rd to 6%, much higher than the previous forecast of 2.9% The main reason for Japan's economic growth was the strong recovery of exports at 3.2%, in addition, the positive recovery of tourism and services also contributed greatly to GDP growth In recent years, the number of tourists and tourism spending in Japan has increased, partly due to the weaker ¥ currency against other currencies However, there is still a dark spot in the overall economic picture of the Japanese economy when personal consumption, which accounts for more than a quarter of GDP,

In 2021, data from the International Trade Center (ITC) shows that Japan will reach 409.8 thousand tons of imported coffee, worth approximately 1.32 billion USD, up 2.7% in volume and 2.7% in volume an increase of 11.6% in value compared to 2020 Notably, Japan reached an average import price of coffee of 3,212 USD/tons, which is known to have an increase of 8.7% compared to that previous year 2020 Especially in 2021, Japan increases the source of coffee imports from Vietnam, which makes Japan a potential country for coffee producers in Vietnam to focus on and pay more attention to

According to statistics, in 2021, Vietnam's coffee exports to Japan will reach approximately

101 thousand tons, worth 182.9 million USD, compared with 2020 it will increase by 0.2% in volume and 7.7% in value There is a decrease in the percentage of Vietnam's coffee market sharebetween 2020 and 2021 in Japan's total imports falling from 25.25% (2020) to 24.62% (2021)

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Source: ITC, 2021 Currently, many businesses tend to develop processed coffee production rather than other types of coffee This shows that in the first quarter of 2022, Vietnam has sharply increased the proportion of processed coffee exports to Japan and earned $16.3 million, an increase of 63.6% over the same period last year In addition, it is known that the market share of Vietnamese coffee in the Japanese market in the first quarter of 2022 increased to 30.32% According to information from Japan Customs in the first quarter of 2022, Japan imported 117,230 tons of coffee worth $413 million Among them, Vietnam accounted for the largest import volume, reaching 35,598 tons

Inflation rate

The year 2022 is considered to be the year with the highest inflation rate in 41 years in Japan with the core consumption index (CPI) increasing by 4%, which also makes people here get used to falling prices

Figure 7 Inflation in Japan highest in 41 years

Source: Internet

In Japan in May 2023, inflation continued to rise uncontrollably as per the intended target

of 2%, the core consumption index did not include fresh foods but included energy products increased by 3.2% over the same period last year Although this increase was lower than the

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inflation market excluding raw materials and fresh food However, including energy items increased by 3.2% y/y Although, this increase was lower than the 3.4% increase in April, but higher than the 3.1% increase forecast in the core consumer inflation market excluding raw materials and fresh food in May 2023 at 4.3%, higher than 4.1% in April and the highest level since June 1981 The reason for the increase was mainly due to the steady increase in the price

of daily necessities and food, making it difficult for families to spend

Figure 8 Japan was the only G7 country that did not spend more on infrastructure

from 1996 2019 –

Source: OECD, Japanese Cabinet Office

In addition, the Japanese government also believes that about 40% of tunnels need to be repaired and rebuilt to ensure the safety of the people and the transport industry

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infrastructure investments, giving priority to projects suitable for Japan's dwindling population.The 50-year period is considered the usual life cycle of most infrastructure According to Japan's Ministry of Land, Infrastructure, Transport and Tourism, about 63% of road bridges, 62%

of flood embankments and other river structures, and 42% of tunnels in Japan will reach the age limit there in 2033 (Duc Anh, 2022) During the period from 2016 to 2020, the Japanese government's eye inspection showed that 36% of tunnels, 9% of bridges and 14% of road ancillary works such as signs and traffic lights were in urgent need of repair

Media & Technology

Japan is considered to be the third largest e-commerce market in the world, closely following giants such as China, the US, the UK with more than 74% of the population or 88 million consumers on the trading floor Paying e-commerce in 2020

Economically, according to the World Bank, Japan is in the top 30 richest countries Total GDP in 2021 is over 5 trillion US dollars; GDP per capita is 40,246 USD The e-commerce market value brought to this country is more than 150 billion US dollars

In terms of population factors, the overall scale of Internet use of the people has covered 90.7% Smartphone usage rate is 82% and is expected to increase to 92% by 2025 Social mediausage rate is 83% LINE is currently the dominant social platform in the market, followed by Twitter and Facebook, and local social network Mixi is also vying for market share

According to statistics, there are currently 100 million e-commerce users in Japan and an additional 13 million users are expected by 2025; Over 70% of Japan's population shop online, expected to reach 89% by 2025 As discussed in current reports, Japan's E-Commerce market isexpected to surpass 25 billion dollars in 2026 as the country makes its digital journey from street-side retail to online stores The current e-commerce markets in Japan include: amazon Japan, rakuten, Yahoo! Shop Japan, DMM, Zozotown, wowma, rakuma (Dan Viet newspaper, 2021)

In which Amazon Japan, Yahoo Japan and Rakuten are the top three e-commerce markets with the highest frequency of use in Japan These platforms currently account for 50% of total eCommerce revenue

4 Competitive Environment

Coffee Blendy Mellow

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Company

Blendy is considered a coffee with a deep and clear flavor With the modern "T2ACMI roasting" technology from Ajinomoto AGF, the quality is controlled from the time to the temperature of the roasted coffee beans to create a rich, aromatic coffee flavor and eliminate the bitterness and taste sour Blendy Mellow Rich Instant Coffee of Blendy brand is favored by many Vietnamese consumers because of its fresh aroma and rich taste This is the outstanding differencebetween BlendyTM and its product lines on the Japanese market today

Suntory's Boss Coffee

Boss Coffee is a coffee brand of Suntory Company in Japan The brand was launched in 1992 and is one of the most popular coffee brands in Japan Distilled with the essence of 100% pure coffee beans according to Japanese technology, Boss coffee has a unique aroma and pure taste tha

is no less than traditional coffee Suntory's ready- -drink coffee lines are distributed throughout toJapan's convenience stores and department stores

Starbucks

When arriving in Japan, the starbuck coffee brand has won the hearts of many consumers in Japan because of its premium quality In particular, the popularity of starbuck's arabica beans is increasingly appreciated Starbucks premium whole-grain arabica coffee packages are divided into

3 types with different roast levels: Light Roast (Blonde Roast), Medium Roast (Medium Roast), and Dark Roast (Dark Roast) The degree of roasting of each type will affect the intensity, acidity, taste, and aroma of coffee beans when enjoying

Vinacafe

In addition to importing coffee from Brazil, the Japanese market also favors Vietnamese coffee Japan's coffee imports from Vietnam in 2021 will reach approximately 101 thousand tons, worth 182.9 million USD, up 0.2% in volume and 7.7% in value compared to 2020 Vinacafe is one of the successful brands in exporting coffee to the NB market Recently, Vinacafé also made

a lot of buzz when it appeared at the international food event Foodex Japan 2023 with a series of events innovative formula products specifically aimed at Japanese users (According to Tuoi Tre newspaper, 2023)

The factor that helps the Vinacafé brand to conquer Japanese users is the excellent quality and aromatic taste of each coffee bean harvested in the lands in Buon Ma Thuot, Cau Dat - Lam Dong

- the land that is destined It is known as the coffee capital of Vietnam