Overall Coco Industry In Vietnam : Market; Economy Although evaluated by the International Coconut Community ICC: Vietnamese coconut has the highest yield and quality in the world, the v
lOMoARcPSD|39459588 UNIVERSITY OF ECONOMICS AND FINANCE TP HO CHI MINH CITY FINAL PROJECT SUBJECT : PRODUCT MANAGEMENT LECTURER : NGUYEN THI NGOC DUNG TEAM : TRY – ANGLE PRODUCT : COCONUT – BETRIMEX Ho Chi Minh City, October 25, 2022 Downloaded by NHIM NHIM (nhimbien2@gmail.com) lOMoARcPSD|39459588 TEAM MEMBERS STT Name ID Position 1 Vuong Van Hieu 205042142 Supply Chain 2 Tran Khanh Linh 205041063 Product Manager 3 Hoang Long 205043138 Customer Service 4 Nguyen Thi Kieu My 205043046 Product Development 5 Mai Thien Thao 205044896 Marketing 6 Doan Viet Tung 205043387 Sales Downloaded by NHIM NHIM (nhimbien2@gmail.com) lOMoARcPSD|39459588 1 Excutive Summary With the goals and vision of the company's mission, based on which we decide to create new products The product "Honey Coconut Water" with the right amount of properties and vitamins will supplement nutrition and energy for a long day of activity In Marketing: we develop advertising campaigns and campaigns based on the insights we have researched on the target audience With the message "Drink fast and healthy", we want to spread to everyone the values that Betrimex brings to customers Along with that is the combination with other departments such as Sale to ensure supply to distribution channels and expand existing markets Along with that is the attention of customer service to help customers have the best shopping experience And finally, it is the combination with the supply chain to ensure the supply of goods to the market and the source of goods is always guaranteed from ingredients to product packaging Downloaded by NHIM NHIM (nhimbien2@gmail.com) lOMoARcPSD|39459588 2 Business Case 2.1 Industry Profile 2.1.1 History of Coconut Coconut is scientifically named Cocos Nucifera, thanks to its light fruit and floating on the water, coconuts follow ocean currents around the world Hawaiian islanders claim that coconuts were brought by Polynesian seafarers from the South Pacific Vietnamese coconut trees are abundantly grown in the Southwest and South Central According to ancient documents, Vietnamese coconut originated in the Champa kingdom, more than 2,000 years ago At that time Champa had a coconut tribe, called Cham Dua in the Binh Dinh region now Link – In Vietnam coconuts still grow very popular With over 175,000ha of coconuts grown, in nearly all parts of the country In particular, the Mekong Delta accounts for nearly 80% of the country's coconut area with about 130,000ha; provinces with a large coconut Downloaded by NHIM NHIM (nhimbien2@gmail.com) lOMoARcPSD|39459588 growing area: Ben Tre (over 72,000ha) is considered the capital of Vietnamese coconut trees with an area of >72,000 ha, Tra Vinh (nearly 20,000ha), Tien Giang (over 14,000ha), Vinh Long (over7,000 ha) Coconut is identified as an important crop that provides raw materials for many industries Overall Coco Industry In Vietnam : Market; Economy Although evaluated by the International Coconut Community (ICC): Vietnamese coconut has the highest yield and quality in the world, the value brought from this tree is not commensurate with that statement Coconut trees are very familiar and useful for human life Almost all parts of the plant are useful such as home use, making handicrafts, household items such as chopsticks, tables, shelves, carpet weaving, More than 200 coconut products are produced, processed for consumption and export such as : Desiccated coconut rice; coconut milk; canned coconut water; coconut candy; coconut jelly; activated carbon; coir thread; coconut oil; coconut mask The export market for coconut products continues to be maintained and expanded Up to now, Ben Tre's coconut products have been exported to nearly 90 countries and territories Downloaded by NHIM NHIM (nhimbien2@gmail.com) lOMoARcPSD|39459588 Some coconut products have high value : grated coconut rice has an export value 5 times higher than fruit coconut; coconut milk powder is worth 4 times higher than grated coconut rice; coconut milk costs 2 times more than grated coconut rice; coconut cream value 2 times higher than grated coconut rice; pure coconut oil has a value 10 times higher than crude coconut oil; hardened coir thread (impregnated with glue) the export value is 3-4 times higher than coarse fiber thread; single and double fibers export value is 3.8 times higher than raw fiber only This is one of the potentials coconuts The price of raw dried coconut in many localities in the Mekong Delta is currently only 5,000 to 10,000 VND/dozen (12 fruits), the lowest price in many years making life difficult for farmers (Vietnam Communist Party Newspaper - 14/07/2022) Seeking to process organic coconuts At the same time, the industry will coordinate with the Department of Industry and Trade to strengthen support for enterprises to promote coconut processing activities into coconut oil products, canned coconut water, fine arts, cosmetics to serve export needs For example, Cocoxim has been present in many stores and supermarkets in the UK, Germany, Italy, Czechia, Netherlands, Sweden, etc., meeting the increasing demand for enjoyment of the European market 2.1.2 Customer Needs (Demands) Coconut water is gaining popularity as a drink used for rehydration, but is also an ingredient in low – calorie beverages Leading beverage companies are driving the demand further by creating innovative products based on coconut water China is the leading market for Vietnam's coconut imports with 30.4% market share, reaching 33.2 million USD On the Belgian market, Cocoxim Vietnam is gradually becoming the preferred coconut water brand in Asian supermarkets and restaurants here Betrimex's Cocoxim canned coconut water products have enough quality certification to be exported to any country in the world 2.2 - Environment – Porter's Forces 2.2.1 Definition Downloaded by NHIM NHIM (nhimbien2@gmail.com) lOMoARcPSD|39459588 Is a model that identifies and analyzes the 5 competitive forces in every industry and helps identify industry weaknesses and strengths Purpose : • Measuring the impact of 5 competitive pressures on business development • Identify the strengths and weaknesses of each industry so that appropriate development strategies can be devised in the future 2.2.2 Analysis of Betrimex's five forces Potential of New Entrants • The attractiveness of the industry o Demand for products increases by nearly 35% per year with more than 50% of city consumers gradually turning to healthy beverages, derived from nature o A series of products were born from large and small brands such as Twister cam of Sunstory PepsiCo, C2 of URC efforts to seize the opportunity of this lucrative non-carbonated beverage market to gain significant market share • Barriers to entry o Technical : The product line of convenient drinking water, specifically coconut water, has been on the market quite a lot Therefore, technology is no longer a problem, especially for brands that already have convenient beverage products available o Capital : ▪ Low cost of entry ▪ The cost of production is constant compared to old products o Low product differences between businesses o There are still many market gaps for new businesses • Commercial factors : o Distribution system, brand, customer system are important factors to evaluate the competitiveness of competitors Downloaded by NHIM NHIM (nhimbien2@gmail.com) lOMoARcPSD|39459588 o In the convenient beverage industry, there are many businesses that have strengths in brand, have a loyal customer base and the distribution system is always a formidable competitor of Betrimex • Other factors : o Ingredients o External links o Manpower o Government protection Based on the analyzed factors, my team identified dairy enterprises such as Vinamilk, TH Truemilk, Tan Hiep Phat, Lavie, although they have not focused on the beverage industry in terms of health and convenience, but based on their economic potential, experience, production scale and existing distribution channels, they will easily enter the health beverage market, convenience in the future Threat of Substitutes Definition : Alternative products are products that have a demand equivalent to products in the industry The main competitive pressure of substitutes is the ability to meet demand compared to products in the industry, in addition to price, quality, other environmental factors such as culture, politics, technology also affect the threat of substitutes In the beverage industry, especially non-carbonated beverages such as green tea, herbal tea, orange juice, the threat from alternative products is higher because this is a common and popular product in the market Currently on the Vietnamese market, there are more than 300 types of soft drinks of all kinds, each of which hits different tastes such as: cooling, healthy, beautiful skin, slimming In the past, our country's beverage market was usually water products with gas, very few products extracted from nature, fruits and no gas But in recent years, because Downloaded by NHIM NHIM (nhimbien2@gmail.com) lOMoARcPSD|39459588 customers are gradually favoring beverage products derived from nature, beverage businesses have boldly invested in new production lines to meet the needs of customers In the past, our country's beverage market was usually water products with gas, very few products extracted from nature, fruits and no gas But in recent years, because customers are gradually favoring beverage products derived from nature, beverage businesses have boldly invested in new production lines to meet the needs of customers These substitutes completely affect the competitiveness and competitive intensity of the product, the more replacement products, the lower the competitiveness, the higher the intensity requires non-gas beverage manufacturers to focus more on their marketing Power of Customers Definition : According to Porter, a customer is a competitive pressure that can directly affect the entire business of the industry According to BMI, Vietnam is one of the most attractive food and beverage markets globally (ranked 10th in Asia) in 2019 According to estimates, there will be about 17 million middle – C lass households in Vietnam by 2030, Vietnam is expected to become the 3rd largest market in terms of the number of consumers and the 5th largest in terms of total spending in Southeast Asia by 2030 Therefore, the beverage market in Vietnam is focused by the people and won great attention Buyers are much larger than sellers According to competitor analyses, alternative customer sources are readily available Betrimex's customer conversion costs are high and customer supplier conversion costs are low In this day and age, customers have an extremely high ability to link, which can knock down any business Customer power is high Power of Suppliers Definition : The number and size of suppliers, the ability to replace suppliers and their products will determine their competitive pressure, negotiating power for the industry or Downloaded by NHIM NHIM (nhimbien2@gmail.com) lOMoARcPSD|39459588 business In addition, the reputation of suppliers also greatly affects the choice of inputs for businesses Raw materials: For Coconut products from Betrimex, it can be seen that the bargaining power of suppliers is not great because the main source of raw materials for producing products mainly comes from coconut, sugar and some other flavorings, but the above ingredients have many different suppliers in the market, can completely meet the needs of Betrimex Source : Coconuts are sought after from farmers in the local area of the province and are famous It is easy to see that the bargaining power of farmers in Vietnam is very small or even nonexistent For other suppliers of raw materials, it is not too difficult, for example, sugar materials, in Vietnam, there are dozens of sugar factories, not to mention imported sugar suppliers, from outside Therefore, competitive pressure and negotiating power from suppliers of sugar materials in particular or other raw materials in general is not great As an advantage for the non-gas beverage industry in general and the Coconut beverage industry inparticular to develop respect Competition in the Industry The number of businesses operating in the beverage industry has increased quite a lot Specifically, this is an industry that has an average number of users per day at nearly 50% According to vietnam beverage market statistics in 2020 : 85% of the annual production and consumption of Vietnam's beverage market comes from soft drinks, instant tea, fruit juices of all kinds, energy drinks The remaining 15% is due to mineral water accounting for the rest At the same time, the beverage market is growing quite fast, so businesses now focus on expanding production capacity and distribution systems such as Tribeco, Betrimex, Coca Cola In the current beverage market, there are two product lines : carbonated soft drinks and soft drinks in the fruit industry group, products with differences in the same industry to Downloaded by NHIM NHIM (nhimbien2@gmail.com)