EXECUTIVE SUMMARY
Brief overview of the company
Cholimex Food Joint Stock Company is one of the leading companies in the industry of spices, frozen seafood in the domestic and international market, which has been established for a long time
(1981) Cholimex is well known for its products such as chili sauce, ketchup, instant fish sauce, spring rolls, dumplings, seafood hotpot and so on
Cholimex Food considers comprehensive quality and sustainable development as the main goals for the company's activities Continuous improvement and constant development in turning ideas into effective solutions in the business Moreover, the company is constantly developing and nurturing the trust of society in the company's brand
Currently, Cholimex Food branded products are present in more than 30 countries in Asia, Europe, and America with processed products with added value and penetrated into leading supermarket systems in the world
Cholimex has become one of the reputable brands in the domestic and international market with quality products, ensuring food safety and hygiene
Currently, the company has three main product lines: sauce - condiments, sauce - dipping sauce, and frozen food
Sauce - Condiments: chili sauce, ketchup, sweet and sour chili sauce, instant fish sauce, shrimp satay, seafood sour hot pot, fish sauce marinated, seasoning with pepper, various kinds of soup powder, etc
Sauce - Dipping sauce: Huong Viet soy sauce, Huong Viet fish sauce, ready-made fish sauce, etc
The first group - Frozen seafood: frozen shrimp, frozen crab, frozen fish, frozen squid, frozen crab, Amaebi shrimp
The second group - Value-added refined foods: spring rolls, grilled shrimp on sugarcane, dumplings, wontons, little bare cakes, breaded shrimp, fish sauce hot pot, seafood hot pot, squash stuffed with meat, shumai, banh khot, banh nam, fish cakes, shrimp cakes
According to the ITPC, Thailand is currently Vietnam's largest trading partner in ASEAN Vietnam's goods export turnover to Thailand always accounts for about 1/5 of the total export
2 turnover to ASEAN Thailand has always maintained its position as the number 1 export market of Vietnam in ASEAN (Nhan Dan newspaper, 2020) The tastes of Vietnamese and Thai people have some similarities (due to their proximity to each other and similar soil) Most of the restaurants in Thailand are praised for their dishes with lots of fresh vegetables such as spring rolls, mixed salads, grilled pork sausage, etc (Kenh14.vn, 2019) Therefore, grilled pork sausage that Thai people call
"namnueng 1 " is one of the favorite dishes from Vietnam that has become a familiar and very popular dish in this country Therefore, Thailand is the ideal country for Cholimex to export grilled pork sausage (Vien Dong Daily News, 2019).
SITUATION ANALYSIS
Cholimex Food also modernizes the production process, builds a closed supply chain from raw materials to processing, provides high-quality food, ensures monitoring and traceability
Enterprises invest in automatic machinery and equipment at stages to increase labor productivity and save labor such as shrink wrapping machines, automatic cartoning machines, and freezing machines Sauce - condiment factory has a production capacity of 500 million bottles per year, frozen food factory has a production capacity of 5,000 tons per year At the same time, applying DMS technology to product distribution management systems
The company is also equipped with a freezing system and modern machinery to replace manual processes, both ensuring quality and bringing high economic value to products, gradually improving the brand competitiveness on the global market
Core activities: Producing, processing and trading food products, industrial meals, frozen foods, seafood of all kinds for domestic market and export
With the goal of prestige and quality, the company force all processes to be strictly controlled to ensure quality and delivery on time
- The enterprise is certified to meet the quality management standard ISO 9001:2000
- Products meet food hygiene and safety standards such as BRC, ASC
- Received a certificate of food safety for export to the European Union (EU)
- The company develops HALAL standards for Muslim countries and Kosher for Jews to diversify export markets
1 Namnueng: This dish is "Grilled pork sausage" In the Vietnamese sense it means "Nem Nuong"
- Cholimex's products do not use synthetic colorants or additives outside the permitted list of the Ministry of Health, meeting the strict demands on food safety and hygiene of the international market and so on.
MARKET ANALYSIS
Human Resources
Cholimex has attracted, created jobs and stable income for more than 1,500 employees Re- training existing and experienced staff In additon, the company always focusing on improving professional knowledge and skills for managers and professional staff
The company focuses on training to improve skills for employees through promotion exams and knowledge tests on food safety Therefore, Cholimex has a team of young, qualified, and skilled workers combined with a team of experienced technicians with a high sense of responsibility
Cholimex has labor policies such as ensuring the health, safety, and welfare of employees In addition, the company also has reasonable rewards, support policies and creates a friendly working environment to attract employees to stick with the company.
Material Resources
Constantly investing in new machinery and equipment in parallel with improving existing ones to increase labor productivity and product quality Many savings programs have been applied to reduce the amount of labor used and the norm of packaging materials, contributing much to the increase in profits
With an area of 3.7 hectares, the Company has built 5 production workshops with a capacity of 400 million bottles of sauces, spices, and 5,000 tons of frozen food per year.
Financial Resources
Net revenue from sales: 2,263,329,000,000 (VND)
Analysis of the External Environment
Macro environment
Thailand is a constitutional monarchy combined with direct democracy The current political situation in Thailand is unstable, which makes it difficult for investors to do business in this country
The Foreign Investment Law in Thailand stipulates limited business activities for foreigners (unless obtaining an operating license from the relevant ministries) Companies incorporated in Thailand are also governed by this act if they have foreigners or foreign legal entities owning half or more than 50% of the shares are also governed by this act Foreign investors cannot buy property or real estate in Thailand According to current law, there is no specific charter capital, but at least 3 shareholders are required to establish a company Foreign investors can still set up a company with 100% foreign ownership, but the procedure will be very difficult and the outcome is uncertain However, under the current new preferential policy package, foreign businesses investing in Thailand will receive an additional 50% reduction in corporate income tax for 5 years, doubling the discount for expenses for foreign investors for training, and corporate tax exemption for 5 years upon establishment of skills development facilities
Harmonized Tariff Schedule of Thailand
Thai Customs Tariff Decree B.E 2530 states that “goods imported or brought into, exported, or taken out of the Kingdom shall be chargeable with and liable to duty” For dutiable goods, payment can be made at the Customs Department of the port of entry or via the e-Payment section of the e- Customs system
The Tariff Schedule of Thailand can be searched both by HS Code and by Thailand agreements with other countries
Prior notice of imported foods
The laws and regulations governing the Thai food industry are confined to the scope of the Food Act B.E 2522 The Food Act authorizes the Ministry of Public Health’s Food and Drug Administration (FDA) to implement and administer the Food Act
Under the Act, all establishments producing food for sale or importing food for sale must be licensed by the Food Bureau of the FDA The application and granting of licenses must be complied with the principles, procedures, or conditions prescribed in the Ministerial Regulations, which are periodically elaborated, modified, and issued by the FDA’s Food Bureau
Imported frozen products must be certified to one of the following standards to be sold in Thailand
Attention should be paid to regulations on packaging, labeling, import certificates, and import permits For products imported into Thailand, the Thai government has very strict regulations
As a rule, the packaging of products should be made of safe materials and are resistant to heat and moisture Exporters should also pay attention to the possibility that the goods will be stored in open warehouses, so the packaging should use waterproof materials The use of hay and straw should be avoided for packaging
Import certificates and import permits are also necessary conditions for Vietnamese goods to be circulated on the Thai market Import certificates include certificates of origin and special certificates These types of documents must be issued from competent authorities For certificates of origin, in some cases, if two countries have signed a Free Trade Agreement, goods with a certificate of origin will enjoy a preferential tax rate
Frozen foods must be registered with the Food and Drug Administration, Ministry of Health before being imported When carrying out the registration procedure, the importer must submit 2 samples for each type of goods, accurate information on the composition in percentages, along with six product labels
ASEAN Trade in Goods Agreement (ATIGA)
Countries in ASEAN including Thailand signed the ASEAN Trade in Goods Agreement (ATIGA) In addition to tariff commitments, ATIGA also includes many other commitments such as elimination of non-tariff barriers, rules of origin, trade facilitation, customs, standards and conformity, sanitary measures Most of the products in the tariff schedule will be eliminated or reduced by countries to less than 5%, except for some sensitive products such as unprocessed agricultural products, sensitive products such as firearms and ammunition, explosives, garbage, etc
GDP growth rate: The BoT's Monetary Policy Committee (MPC) decided to cut the GDP growth forecast for 2021 to 0.7% from 1.8% last month In addition, the Thai economy for 2022 was projected to expand 3.7%, a decline from its previous forecast of 3.9% (Bangkok Post, 2021)
Inflation rate: The annual inflation rate in Thailand fell to 0.45 percent in July 2021 from
1.25 percent a month earlier and compared with the market consensus of 0.97 percent This was the lowest reading in four months, amid coronavirus-related restrictions, with food prices falling for the first time in four months (-0.47 percent vs 0.29 percent) (Trading Economics, 2021)
Currency: Thai Baht is the currency in circulation in Thailand (symbol THB - read as Baht)
Thailand circulates both banknotes and coins Banknotes in Thailand have the following denominations: 20฿, 50฿, 100฿, 500฿, and 1000฿ Coins with denominations of 10฿ or less Besides, compared to Vietnamese Dong, the conversion rate between the two currencies of the two countries is 1 Thai Baht (THB) = 684.62 VND (The Bank, 2021)
Economic relations between Vietnam and Thailand: According to a reporter of TTXVN newspaper in Bangkok, Deputy Prime Minister and Minister of Commerce of Thailand Jurin Laksana Wisit on June 7 affirmed that the cooperation in the field of the economy - trade - investment between Thailand and Vietnam is getting better Bilateral trade turnover in the first 4 months of 2021 increased by 20% over the same period last year The two countries have signed agreements and arrangements such as the Agreement on Avoiding Double Taxation between Vietnam and Thailand, the Agreement between Vietnam and Thailand on the Promotion and Protection of Mutual Investment, etc (TTXVN newspaper, 2021)
The primary language spoken in Thailand is Thai or “Phasa Thai” meaning “language of the free” Over 80% of Thailand’s population speaks Thai as their primary language and almost everyone else speaks it as a second language But Thai is not the only language spoken in Thailand where at least 62 local languages from 5 language families exist (Autolingual, 2020)
The Thai language is a language from the Kra-Dai family of languages and the Tai subbranch It’s spoken by close to 35 million people as a first language and more than 45 million as a second language (Autolingual, 2020)
English is the most common second language, and many Thais have studied some level of English either at school or through practice with foreign friends In Bangkok, where the major business and commercial transactions are held, English is widely spoken, written, and understood Further, in most hotels, shops, and restaurants of major tourist destinations, English and some European Languages are spoken, written, and understood
- The current population of Thailand is 69,993,027 as in 2021, based on Worldometer elaboration of the latest United Nations data
- Thailand's population is equivalent to 0.9% of the total world population
- Thailand ranks number 20 in the list of countries (and dependencies) by population
- The population density in Thailand is 137 per Km2 (354 people per mi2)
- The total land area is 510,890 Km2 (197,256 sq miles)
- 51.1 % of the population is urban (35,698,325 people in 2020)
Age: The median age in Thailand is 40.1 years (Worldometer, 2021)
Per capita income: The Gross Domestic Product per capita in Thailand was last recorded at
6094.43 US dollars in 2020 The GDP per Capita in Thailand is equivalent to 48 percent of the world's average (Trading Economics, 2021)
Figure 3.1 The Gross Domestic Product per capita in Thailand
(Source: Tradingeconomics.com/ World Bank)
Microenvironment
Customers are Thai people with needs and preferences for Vietnamese culinary dishes, especially grilled pork sausage Thai people especially love grilled pork sausage with rich flavor and especially love the dipping sauces and fresh vegetables served with them Thai people want reasonable food prices and guaranteed food quality
Distribution intermediaries in Thailand: convenience store system 7-Eleven, Makro Sathorn supermarket, Big C Go supermarket In addition, there are other retail outlets in the local area to cater to neighboring households
Finding the source of raw materials and checking the quality of imported raw materials are carried out by the Company under a very strict process First, the Company must determine the farming area and survey of the production process of these material areas, check with equipment to ensure the production process is safe, and ensure the right quality as required The Company then
10 signs a long-term contract and regularly inspects their production process, checks the input materials of the suppliers, and determines the origin of the breeding stock Therefore, the Company's source of raw materials is always stable, ensuring to meet the required quality and ensure the traceability of products
The Company's raw materials are mainly aquatic products, agricultural products, and meat The company mainly imports from aquaculture areas in Ho Chi Minh City, Bac Lieu, Ca Mau, Soc Trang provinces
The agricultural products the company imports from the northern provinces, the central provinces are mainly chili, garlic, especially the provinces: Hai Duong, Hung Yen, Thai Binh, Quang Binh, Quang Tri, Thua Thien Hue, Lam Dong, and the southwestern provinces
● List of main raw material suppliers:
Packaging: Ngoc Nghia Plastic Joint Stock Company; Malaysia Glass Company Limited Agricultural products: Phuoc Thanh Da Lat Cooperative (Da Lat Coop)
Accessories: Brenntag Vietnam Co., Ltd; Thanh Thanh Cong Tay Ninh Sugar Company Limited; Tuong An Vegetable Oil Joint Stock Company
Products that can replace grilled pork sausage such as spring rolls, grilled chopped fish, surimi, etc., these products can pose a threat to businesses
- Current competitors in Thailand are brands specializing in selling grilled pork sausage such as Daeng Namnuang and VT Namnueng, ตรา สุทธิลักษณ์ (Suthiluck)
- Grilled pork sausage is sold at traditional Thai markets
Figure 3.2 Current competitors in Thailand
Frozen food manufacturers in Thailand may launch grilled pork sausage to compete with such products as บริษัท นายฮั่ง อินเตอร ์ฟู้ดส ์ (Mr Hang Interfoods Co., Ltd.), เจริญโภคภัณฑ ์อาหาร (Charoen Pokphand Foods Public Company Limited) and so on
Large frozen food company in Vietnam such as Vissan, CP, Cau Tre, etc., which have a lot of experience in production as well as a large capital, can easily enter the market and become potential competitors with business
Cholimex Namnueng is one of the frozen foods loved and accepted by Thai and Vietnamese According to the latest report by market research agency Technavio, the global frozen food market size is forecasted to grow at a record CAGR (Compound Annual Growth Rate) of around 11% in the period 2020-2024 In addition, according to a report from Mordor Intelligence, the market is primarily driven by rising disposable income, the introduction of longer shelf-life products, increasing impulse purchasing, and huge demand for frozen food products, due to the lack of time (Mordor Intelligence,
Size and Extent of demand
Thais spend 25% of their total spending on food and beverages, and about 38 million middle- and upper-income consumers are eager to buy imported food products (Food Export, 2020)
Opportunities in Thailand's food processing sector continue to grow as domestic processed food sales increase due to a major shift in consumption patterns towards convenience foods With the increasing demand for processed foods, Thai food processors have to import a large amount of food ingredients that are not available domestically
The Thai frozen food market is expected to reach a CAGR of 5.9% during the forecast period 2017-2022 (Cision PR Newswire, 2018) The market is expected to continue to be driven by the increasing use of canned food and online retail in Thailand As a result, it has boosted demand for Thai frozen products globally and will continue to do so in the long term
The capacity of grilled pork sausage in the current market: Currently, large stores are specializing in producing and selling famous grilled pork sausage in Thailand, which proves that the large market capacity will attract many competitors and it is difficult to attract the attention of customers
Price fluctuation: Like other items, grilled pork sausage is also affected by supply and demand factors Moreover, the price of a grilled pork sausage product is a composite price from many costs such as transportation costs, packaging, purchasing raw materials, etc., so just one of the above changes will lead to a change in the product cost
Import and export policies: Management mechanisms, economic policies and external partnerships directly affect the export of grilled pork sausage Especially in Thailand, there are many strict regulations in the selection of goods to import such as regulations on quality, packaging, labels, import certificates and import permits
Exchange rate: Encouraging imports opens up export opportunities for Vietnam Although
Thailand's exchange rate fluctuated significantly in recent years, it tended to increase during 1971-
2020 (Knoema, 2020) Therefore, the appreciation of Thailand's domestic currency makes domestic goods more expensive relative to foreign goods, which will encourage the import of foreign goods and limit the export of domestic goods This country leads to a decrease in net exports Based on these conditions, export opportunities for Cholimex Namnueng products are opened
Quality: Grilled pork sausage quality is one of the determinants of competition in the market and also improves export efficiency Moreover, Thai do not like products containing preservatives
Global Frozen Food Market is valued approximately USD 214.03 billion in 2019 and is anticipated to grow with a healthy growth rate of more than 5.3 % over the forecast period 2020-
SWOT ANALYSIS
Table 4.1 Swot Analysis of Cholimex Namnueng
- Input materials are available, regularly checked to ensure that they demand the required quality and ensure product traceability
- The workforce is highly skilled and regularly trained to adapt to the changing environment
- Products with guaranteed quality and reasonable prices come from a brand that has a long-standing reputation in the Vietnamese market
- The company has experience in making dipping sauces suitable for Thai people's preference for grilled pork sausage with dipping sauce and vegetables Delicious dipping sauces can give a company a competitive advantage
- The company has no experience in producing grilled pork sausage
- The shelf life of the product is short
- There is no reputation for grilled pork sausage in Thailand
- The product is difficult to store at normal temperature because it is a frozen product
- The product is not too different from the competitors
- The trend of consuming convenient frozen food is increasing, because it helps to save time, is convenient and quick to use by Thai people
- According to Cision PR Newswire, Thailand's frozen foods market is expected to register a positive CAGR of 5.9% during the forecast period to 2022
- Grilled pork sausage is a favorite dish which is chosen by many Thai families and people
- Grilled pork sausage originates from Vietnam and has been present in Thailand, so this is an opportunity when Cholimex exports Vietnamese products to
- The taste of Thai people is quite similar to that of
- Vietnam has been participating in the ASEAN which has opened up a lot of opportunities for businesses in the food industry to develop and increase export opportunities
- The company has to compete with famous brands of grilled pork sausage in Thailand
- Thai consumers are price sensitive, so they often compare prices with other brands
- There are many substitute products for Thai consumers to choose from
- There are two seasons in Thailand: the dry season, and the rainy season, with frequent storms and floods, which can pose challenges for transportation and storage
- This is the first time Cholimex has exported to Thailand, so understanding the culture here is also a challenge
- The market has many cases of making low quality grilled pork sausage, counterfeiting products will cause loss of trust for consumers when using new products
- Ensuring supply is difficult if there is a case of African swine fever or other diseases
TARGET MARKET DESCRIPTION
Table 5.1 Market Segmentation of Cholimex Namnueng
No income/ depend on parents
Low or no come (26000 Baht/ month)/Low or no income (depend on pension)
Status Single Single/Married Single/Married/
Depending on family/ Working/ Middle/ Upper class
Anywhere in Thailand, but a lot more people in urban areas and large cities
Anywhere in Thailand, but a lot more people in urban areas and large cities
Anywhere in Thailand, but a lot more people in urban areas and large cities
Anywhere in Thailand, but a lot more people in urban areas and large cities
Actives, Participate and express their opinion, like to play with friend
Energetic, willing to try out new things, price-sensitive
Normal, simple, busy with work, convenient, spend more time with family, price-sensitive
Spend more time with family, price-sensitive
Like catching-eye appearance, cartoon character, color, self- assertion, sensitive
Like catching-eye appearance, following trends, self- confidence, like to explore
Mature, pay a lot of attention to the price and taste of the product and work hard
Need respect, grumpy/ pay attention to health
Prioritize delicious, eye-catching appearance
Prioritize delicious, convenience, fast, and cheap
Prioritize delicious, convenience, fast, ensure food safety, and cheap
Prioritize good quality, healthy, ensure food safety
Suitable for their interest, colorful, complimentary gift, imitating their friends
Suitable for their interest, new product, famous product
Suitable for appetite, family, and children
Suitable for appetite, family, and children
Convenience store, supermarket, near school, grocery store
Convenience store, supermarket, near school, grocery store, e-commerce, market
Supermarkets, groceries, convenience stores, market, e-commerce, near office
Usage Rate Light (1-2 times/week)
Taste Aromatic, no spicy Highly-seasoned, aromatic, stinging
Delicious, fast food, eye-catching
Convenience, quality, delicious, eye- catching
Friend, family, media, influencer, idol
Friends, family, media, influencers, idols (celebrities)
Friends, colleagues, family, relatives, word of mouth, media
Family, friends, relatives, word of mouth
Target Marketing Identification and Segmentation Strategy
- Status: Single, married, married with one or two kids
- Social class: Working class, middle class, upper class
• Geographics: Anywhere in Thailand, but a lot more people in urban areas and large cities are willing to buy the product
- Personality: Mature, pay a lot of attention to the price and taste of the product and work hard
- Perception: Prioritize delicious, convenience, fast, ensure food safety, and cheap
- Lifestyle: Normal, simple, busy with work, convenient, spend more time with family, price- sensitive
- Motivation: Suitable for appetite, family, and children
- Buying places: Supermarkets, groceries, convenience stores, market, e-commerce, near office
- Usage rate: Medium (3-5 times/ week)
- Taste: Highly-seasoned, aromatic, stinging
- Benefit Expectation: Convenience, quality, delicious, eye-catching
- Information sources: personal sources (friends, colleagues, family, relatives, word of mouth), commercial sources (sellers, advertising, internet and so on), and public sources (radio stations, television stations, newspapers, electronic newspapers, and websites/web portals, social networks)
Marketing positioning: Convenient, fast, cheap
Cholimex Namnueng will apply both ways of exporting including
- Direct sales (business or customers can buy the product directly and have it shipped to their locations)
- Use of an intermediary (Cholimex Namnueng will distribute the product to some wholesalers and retailers)
INTERNATIONAL MARKETING GOALS AND OBJECTIVES
- Improve profit margin by 20% compared to previous years
- Diversifying the company's products: Cheese tofu, shumai, etc
● Monthly: the official price for Cholimex Namnueng will be 250 baht for 5 sticks We set out the goal that every month the total revenue for store selling would be 1,364 billion VND for 2000kg And for online selling, the total income for a month will be 342 million Vietnam dong for 500kg
● Yearly: the money earned from the store selling will be 16,379 billion Vietnam dong and for online shopping will be 4,047 billion Vietnam dong In total, the estimated revenue from the first year would be 20,426 billion Vietnam Dong
- We’ll reach the break-even point after 3 years
● Increase the brand awareness by 5%
- Revenue of 4th year: 28,026 billion VND
- Revenue of 5th year: 30,015 billion VND
● Occupying 20% of the export market of grilled pork sausage in Thailand
● Become the leading exporter of grilled pork sausage in Vietnam market
● Raise the brand awareness up to 25%
MARKETING PROGRAM
Product Positioning
Figure 7.1 Positioning map between Cholimex Namnueng and the opponent
The company will implement the benefit positioning for positioning the product The company will continuously add new features as well as more nutritious elements in the product to improve it.
Type of product
Convenient food: Cholimex Namnueng (Cholimex แหนมเนือง) is an inexpensive, frequently purchased, time-saving and effortlessly purchased products which can be found and bought everywhere such as markets, supermarkets, grocery stores, convenience stores.
Product Dimensions
➢ Core Product: Products demand the needs of customers for food, convenience, and fast
• Brand names: The new product has been launched under the brand name Cholimex Namnueng (Cholimex แหนมเนือง) registered for a protection license at the Department of Intellectual Property Thailand (DIP)
Our target customers prefer simple, convenient packaging The packaging will be made from hard plastic for better preservation, avoiding damage during long distance transportation When shipped to Thailand, the product will be packed in a foam box to ensure a low temperature for the product, to prevent rancid and unqualified grilled pork sausage during transportation
Since this is a new product on the market, nutritional information as well as an introduction will be added to the back of the product for more information easily found
There will be 2 pack sizes: 250g (17.2x 11.1 x 2.5cm) and 500g (17.2x 11.1 x 5.5cm)
Figure 7.2 Packaging design of Cholimex Namnueng
• Trademark: The slogan “Cholimex Namnueng - 100% real pork” written in Thai will be the message that helps the company to affirm that the product has quality ingredients This will create a trust for customers and help Cholimex distinguish it from other brands in the market
Table 7.1 Ingredients information of the product
Company contact information: Free consultation, receive comments via hotline
Instructions: Information on storage temperature (-18 degrees Celsius or in the freezer), instructions for use (baking at 180 degrees Celsius for 5-6 minutes or frying at 160-170 degrees Celsius, no need to defrost), instructions on how to make the dish more delicious (with sauce and raw vegetables, better when eaten hot) are printed on the package to help customers know and preserve the product properly to avoid damage.
Branding approach: Product line extension
New products are introduced that they are in a related product category which is frozen products These types of products all serve the “convenient product” need of the market.
Develop new products
New products and new flavors will be added later on when entering the market
• Frozen food: Cheese tofu, shumai, etc
• Sauce: Grilled pork sausage marinade, grilled pork sausage sauce, etc
Cholimex Namnueng will sell for 250 baht for 5 sticks and 350 baht for 10 sticks As a new product, the price objective of Cholimex Namnueng is to gain market share quickly, because the company just began selling products there The product price will be determined according to competition–based price
Table 7.2 Competitor's Grilled Pork Sausage Price
VT Namnueng 260 Baht (5 sticks), 380 Baht (10 sticks)
Daeng Namnuang 260 Baht (5 sticks), 380 Baht (10 sticks)
Suthiluck 180 Baht (5 sticks without vegetable), 260 Baht (5 sticks with vegetable)
• To meet this objective, the company chooses the penetration pricing strategy that charges the lowest price the company can afford
• This method discourages entry by competitors It also helps the company quickly build sales figures and establish a larger market share and provides time for consumers to develop a brand, product, and company loyalty
• Each year the firm will increase its price by 5% while price elasticity remains low
The company can buy insurance for in order to prevent risks that can happen at any time Causes can be objective from natural conditions e.g storms, floods, or can also be subjective causes due to human carelessness such as fires, explosions, collisions
The company's delivery condition is CIP (Carriage, Insurance paid to) Specifically, we will contract with Service Export Insurance to ensure that if something goes wrong during transportation, the insurance company will have to deal with the customer
CIP can be used for any mode of transport, including sea and multimodal transport such as road, air, water
Businesses and customers can pay in many different forms such as cash, credit cards, etc
- For businesses buying in large quantities (over 1 ton): 50% payment in 7 days before receiving goods, payment of the remaining 50% in 3 days after receipt of goods
- For businesses buying in small quantities (500kg to under 1 ton): 30% payment in 7 days before receiving goods, payment of the remaining 70% in 3 days after receipt of goods
- Customer: Direct payment by cash or credit card upon purchase for wholesaler and retailer
Define distribution goals
Building relationships and goods into many supermarket chains and convenience stores such as Big C Go, 7-Eleven in Bangkok
Expanding distribution channels to provinces and cities in the North, Northeast, Central, East and South of Thailand (Pattaya, Phuket, Chiang Mai, Nonthaburi, Hat Yai, Khon Kaen, etc) and retailers, market.
Channel and marketing decisions
Channel Decisions: Using the intensive distribution strategy in which products are distributed through as many wholesalers and retailers as possible This doesn't only allow consumers to purchase the products everywhere, easily search and choose while not spending too much effort to buy but it also has longer international marketing
Channel Strategies: The company opts for a push strategy We’ll aim at wholesalers and retailers such as supermarkets and convenience stores in Bangkok first, then those intermediaries will promote the product to the end-consumer.
Distribution channels
Cholimex Company will distribute through 2 channels: Consumer Channels and Business-to- Business Channels
Firstly, the company will distribute the product to wholesalers and retailers Cholimex Namnueng will be displayed in more than 1,374 Big C Go supermarkets, 130 Makro supermarkets, and 12,000 7-Eleven stores all over Thailand There, the customers will then come to pick up the product in those stores
Second, Cholimex Namnueng will be distributed in the retail form to grocery stores or traditional markets and then the product will be delivered to the end-consumer
For customers who prefer only online shopping, Cholimex company collaborates with Shopee, Lazada, etc., will act as an independent agent or broker helping businesses, non-profit organizations and the community to expand through e-commerce to foreign countries Shopee, Lazada will operate as an online retailer working on a commission basis and facilitating international sales They will not own the product, but only help connect foreign customers with Cholimex company
Table 7.3 Cost of means of transportation of goods from Vietnam to Thailand
Cost 913.300 VND/20’DC 60.000 VND/kg
Speed about 3 days about 4-5 days
Capacity Larger quantity Smaller quantities
Container 20'DC: 6m long, 2.4m wide, 2.6m high
Communication message: “Cholimex Namnueng - 100% real pork” This message is consistent with the excellent product quality that the brand will bring to Thai consumers.
Advertising
- Create brand and product awareness by 15%
- 10% increase in popularity in 3 months
- 5% increase in purchase intent and experience in 3 months
Figure 7.4 Business to Business Channels
The stage of creating awareness and influencing considerations
Offline Advertisement: Supermarket, convenience store, (Big C Go, 7-Eleven at Bangkok)
• TrueView in-stream ads/ Overlay+remarketing
Stage of push action and commercial loyalty
Offline Advertisement: Supermarket, convenience store, (Big
C Go, 7-Eleven, Makro Sathorn supermarkets), grocery store in Thailand
• TrueView in-stream ads/ Overlay+remarketing
• Advertising at Convenience Stores - Supermarkets: hang billboards around the store, decorate with the dominant earthy orange tone, sponsoring banners, hanging boards on high positions for consumers to easily spot, models of inflatable Cholimex Namnueng, people wearing Cholimex Namnueng costumes standing in front of the booth to greet customers, etc
- Media Channel: Bangkok Post, Thai Rath (ไทยรัฐ), Daily News (เดลินิวส ์)
- Social network: Fanpage Facebook, Instagram, Youtube (Cholimex แหนมเนือ)
- Content Facebook: 10s giphy design shows an image of Cholimex Namnueng rolling on the grill, there is an oil brush for Cholimex Namnueng to look more delicious And the name Cholimex แหนมเนือง appeared with the slogan: Cholimex Namnueng - 100% real pork
- Youtube: using TrueView in stream ads and Overlay + remarketing
+ Advertising agent: A family is having a picnic and enjoying delicious Cholimex Namnueng
In the ad, the father is grilling Cholimex Namnueng, while the mother and child are preparing a meal (raw vegetables, dipping sauce)
+ Message: Cholimex Namnueng provides your family with a delicious meal to energize for a good day
• Support media: People use subways (MRT), and buses as one of their most frequent means of transportation, so posters will be put in the many crowded subway tunnels and on the bus body
Sale Promotion
➢ Goal: Reach a brand awareness level of 45% among people who use grilled pork sausage In addition, the Cholimex Namnueng product preference level is 30% and the Cholimex Namnueng product experience and purchase level is 20% out of 45% of the brand awareness people
There will be 2 premiums in 2 years:
Year 1: For offline - Customers who buy Cholimex Nannueng products will receive a small bottle of Cholimex brand chili sauce This program will last throughout the first year For online - When customers buy an invoice of Cholimex Nannueng over 350 baht, they will receive a 10% discount voucher on the invoice value when buying on e-commerce platforms Shopee, Lazada This program will last throughout the first year
Year 2: For offline - First, customers will be given a bottle of Cholimex's small barbecue sauce when purchasing Cholimex Namnueng products This applies to the first 6 months in year 2 Second, get a free ceramic plate when customers buy 1 pack of Cholimex Nannueng This applies to the next 6 months in year 2 For online - For wholesale customers, when buying over 100 bags, customers will get 15 extra bags (bought on the company's website) which will take place in the 2nd and 4th quarters of year 2
One of the best ways for customers to recognize grilled pork sausage 's quality is to let them experience by themselves Booths will be set up at the supermarket, where Cholimex staffs to distribute at the booth for customers to try right away and other staffs are standing at the stall to consult customers.
PR
There will be 2 main methods to execute this strategy:
Firstly, the company held a contest at 2 Big C Go supermarkets and 2 Makro Sathorn supermarkets in Bangkok The contest consists of 2 rounds of answering questions and making the most eye-catching Cholimex Namnueng There is also a performance in the competition to attract people to attend The program will take place in the first 6 months of the first year
Secondly, The Cholimex company considers giving back is a very important to do In the first year, the company will organize a charity event for the province with the poorest people in Thailand, Mae Hong Son At this event, Cholimex will give the poor here a gift including food and drink and a
28 pack of Cholimex Namnueng It will take place in the fourth quarter of year 1 and the third quarter of year 2.
Direct Marketing
Online marketing on media such as replying to messages directly via messenger, email, website, replying comments, etc., displaying ads in online search results
Sales face to face through brand staff at supermarkets.
Promotional budget
Youtube Trueview ads - 20s (300.000 baht) Overlay + remarketing (180.000 baht)
Media channel Thai Rath (90.000 baht/ 1.000.000 prints)
BangKok Post (73.200 baht/ 72.000 prints ) Daily News (126.000 baht/ 850.000 prints)
In the convenience store, supermarket 400.000 baht (banner, poster, etc)
Poster on buses (107.500 baht/ 5 buses)
Offline 35.000 baht/ 6000 Chili sauce 21.900 baht/ 3000 sauce bottle
Total 2.502.200 baht (1.707.688.769 VND) 1.493.900 baht (1.019.549.298 VND)
PLANNING BUDGET
Product
Table 8.1 Expenses of product Name of expenses Spending (1st year) Spending (2nd year)
Documents (exclusive trademark registration, FDA license, etc) 192.000 Baht
Place
Table 8.2 Expenses of place Name of expenses Spending (1st year) Spending (2nd year)
Shipping cost 87.915 Baht/ton 80.000 Baht/ton
Discount for distributors 1.600.750 Baht 1.650.000 Baht
Promotion
Youtube Trueview ads - 20s (300.000 baht) Overlay + remarketing (180.000 baht)
Media channel Thai Rath (90.000 baht/ 1.000.000 prints)
BangKok Post (73.200 baht/ 72.000 prints ) Daily News (126.000 baht/ 850.000 prints)
In the convenience store, supermarket 400.000 baht (banner, poster, etc)
Poster on buses (107.500 baht/ 5 buses)
Offline 35.000 baht/ 6000 Chili sauce 21.900 baht/ 3000 sauce bottle
Total 2.502.200 baht (1.707.688.769 VND) 1.493.900 baht (1.019.549.298 VND)
EVALUATION, MEASUREMENT, AND CONTROL
Cholimex Namnueng product meet the taste and current trends of the target customer group and market
Packaging using both English and Thai helps to reach the most customers
Weaknesses: Packaging design entirely from plastic is an environmentally unfriendly product and current green consumer trend
Solution: Improve packaging to become recyclable or degradable materials that protect the environment
Low price strategy can help the company to sell the maximum number of products
This strategy also helps the company prevent new competitors from entering the same market, while increasing the competitiveness of existing brands, promoting the strong development of the company
Consistent with AFTA provisions, Thailand grants preferential tariff treatment to ASEAN Member States, which eliminate all tariffs and quotas on virtually all goods imported into Thailand, as thus reducing product costs
Because the company chooses to enter at a low price that the company can afford Because of this, the first time the company enters a new market, the company may experience initial losses
Low pricing will attract many customers, but if not careful, the company will be undervalued and difficult to raise prices Discount-hunting customers may withdraw when the company starts raising prices
Solution: To maintain low pricing and then raise prices without fear of losing potential customers The company should raise prices slowly with customer incentive strategies to build loyalty or increase the price of substitutes
Strengths: Cholimex's distribution strategies are diverse, this distribution strategy combines both direct and indirect distribution channels flexibly
Weaknesses: It is difficult to strictly control the situation where retailers may dump prices Solution:
A strategy is needed to incentivize channel members
Regularly evaluate the members of the distribution channel to make timely adjustments
It is necessary to actively pursue lawsuits if there is a situation of dumping by retailers In addition, perfecting the system of accounting books and documents in accordance with the provisions of the law, keeping full records of the business situation in order to prepare evidence and arguments to prove the lack of information, dumping of enterprises, organization of personnel, budget estimates, development of plans to protect the interests of enterprises
Strengths: Cholimex is a large company and has implemented many successful marketing strategies for export products, so continuing to plan to promote Cholimex Namnueng products can still reach many customers
Weaknesses: When entering the Thai market, Cholimex encountered competitors with long- standing and prestigious brands Therefore, Cholimex must make efforts to invest in promotion to be able to create an image in the hearts of customers This makes the company spend a lot of money on promotion
Solution: Diversify promotional activities Choose a cheaper form of advertising when customers are already aware of the brand image
(2021, 07, 03) Could the future of frozen foods be plant-based? Retrieved from OctoFrost: https://thienlocphat.asia/tuong-lai-cua-thuc-pham-dong-linh-co-the-dua-tren-thuc-vat-
Tan, C (2020, 10, 15) Support businesses to export to Thailand Retrieved from Nhan Dan: https://nhandan.vn/tin-tuc-kinh-te/ho-tro-doanh-nghiep-xuat-khau-sang-thai-lan-620546/
Minh, N (2014, 01, 21) Thai market and opportunities Retrieved from VietNamexport: http://vietnamexport.com/thi-truong-thai-lan-va-co-hoi/vn
Dao, District (2019, 06, 30) Vietnamese cuisine in Thailand: "balanced and healthy" soul-soothing dishes Retrieved from Kenh 14.vn: https://kenh14.vn/am-thuc-viet-nam-o-thai-lan-nhung-mon-an-an-ui-tam-hon-rat-balance- va-healthy-20190630120126343.chn
Harmonized tariff Retrieved from Osmep: https://sme.go.th/en/page.php?modulekeyB6
Things to keep in mind when setting up a company in Thailand Retrieved from Golbal Links Asia: https://globallinks.asia/vi/thanh-lap-cong-ty/tu-van-thanh-lap-cong-ty-tai-nuoc-ngoai/tu-van- thanh-lap-cong-ty-tai-thai-lan/nhung-dieu-can-luu-y-khi-thanh-lap-cong-ty-tai-thai-lan
(2019, 04, 18) Food and Agricultural Import Regulations and Standards Report Retrieved from:https://agriexchange.apeda.gov.in/IR_Standards/Import_Regulation/FoodandAgricultu ralImportRegulationsandStandardsReportBangkokThailand4182019.pdf
FDA REGISTRATION THAILAND Retrieved from Chaninat&Leeds: http://www.chaninatandleeds.com/thai-fda-registration.html
(2021, 08, 05) BoT cuts 2021 GDP rise to 0.7% Retrieved from Bangkok Post: https://www.bangkokpost.com/business/2160111/bot-cuts-2021-gdp-rise-to-0-7-
(2021) Thailand Inflation Rate Retrieved from Trading Economics: https://tradingeconomics.com/thailand/inflation-cpi
Hien, N V., & Hien, N T (2021, 08 20) How much is 1 Baht in Vietnamese Dong? Where to change
Baht for the highest price? Retrieved from The Bank: https://m.thebank.vn/blog/16968-1- bath-bang-bao-nhieu-tien-viet-doi-bath-o-dau-gia-cao-nhat.html
Thomas, D (2020, 05 23) What Languages Are Spoken In Thailand? (Other Than Thai) Retrieved from Auto Lingual: https://autolingual.com/thailand-languages/
What languages are spoken in Thailand? Retrieved from Royal Thai Honorary Consulate General: https://thaiconsulate.hr/en/what-languages-are-spoken-in-thailand-s79
(2021) Thailand Population Retrieved from Worldometer: https://www.worldometers.info/world- population/thailand-population/
(2021) Thailand GDP per capita Retrieved from Trading Economics: https://tradingeconomics.com/thailand/gdp-per-capita#
VT Namnueng Thailand – the largest chain of grilled pork sausage in Thailand Retrieved from J9
Journey: https://jgjourney.com/vt-namnueng-thai-lan-chuoi-nha-hang-nem-nuong-lon-nhat- thai-lan/
(2020) Frozen food market - growth, trends, covid-19 impact, and forecasts (2021 - 2026) Retrieved from Mordor Intelligence: https://www.mordorintelligence.com/industry-reports/frozen- food-market
(2021, 03 02) Could the future of frozen food be plant-based? Retrieved from Thien Loc Phat: https://thienlocphat.asia/tuong-lai-cua-thuc-pham-dong-lanh-co-the-dua-tren-thuc-vat-
209.html แหนมเนือง Retrieved from THAILANDPOSTMART.com: https://www.thailandpostmart.com/index.php/app/tag/name/173035 ปอเปี๊ยะกุ้ง Retrieved from Makro คู่คิดธุรกิจคุณ: https://www.siammakro.co.th/en/horeca_food_detail/80/ ไส้อั่วมินิ แพ็ค Retrieved from NHF: http://transfernaihunginterfood.makewebeasy.com/product
Zoo, H (2017, 02 13) [SR] แกะกล่องแหนมเนืองพร ้อมทาน มารีวิวกัน!! Retrieved from Pantip: https://pantip.com/topic/36109227
(2019, 06 18) Highways Retrieved from Thailand Board of Investment: https://www.boi.go.th/index.php?page=highways
Geier, C (2019, 01 09) How technology is reducing poverty in Thailand Retrieved from The Borgen
Project: https://borgenproject.org/how-technology-is-reducing-poverty-in-thailand/
Ken, R (2018, 06 04) Thailand Frozen Foods Market is Expected to Reach Over THB 147 Billion by 2022 Retrieved from Cision PR Newswire: https://www.prnewswire.com/news- releases/thailand-frozen-foods-market-is-expected-to-reach-over-thb-147-billion-by-2022- ken-research-869777308.html
(2021, 08 06) Frozen Food Market Trends and Forecast 2028 Retrieved from MarketWatch: https://www.marketwatch.com/press-release/frozen-food-market-trends-and-forecast-2028- 2021-08-06?siteid=bigcharts&dist=bigcharts&tesla=y
(2020, 02 19) The Minimum Wages For Thai People Retrieved from Thailand Red Cat: https://www.thailandredcat.com/the-minimum-wages-for-thai-people/ สถานการณ์สินค้าสุกรที่ส าคัญและแนวโน้ม ปี 2564 Retrieved from The Swine Raisers Association of
Thailand: https://www.swinethailand.com/
Quan, T (2019, 10 26) Everything you need to know about import and export cargo insurance
Retrieved from SEC Saigon Express: https://sec-warehouse.vn/bao-hiem-hang-hoa-xuat- nhap-khau.html
HPTOANCAU (2020, 10 10) Group C – CPT, CIP, CFR, CIF – Incoterms 2020 Retrieved from
HP Global Co., Ltd: https://hptoancau.com/nhom-c-cpt-cip-cfr-cif-incoterms-2020/
Newspaper Web Ranking (2019) Top newspapers in Thailand Retrieved from 4International
Media & Newspapers: https://www.4imn.com/th/
Skye (2016, 10 14) A series of Thai newspapers turned black to mourn King Bhumibol Adulyadej
Retrieved from Kenh14.vn: https://kenh14.vn/hang-loat-trang-bao-thai-lan-chuyen-mau-den- de-tang-vua-bhumibol-adulyadej-20161013220123042.chn
Ngan, N (2019, 11 07) Sea freight rates and how to calculate sea freight rates Retrieved from DHD logistics: https://dhdlogistics.com/cac-yeu-to-chi-phoi-bang-gia-cuoc-van-tai-bien/
(2021, 06, 02) Frozen food market growth with two different growth gathers pace | Grupo bimbo sab de cv, nestle sa, Unilever Retrieved from Icrowdnewswire: https://ipsnews.net/business/2021/06/02/frozen-food-market-double-digit-growth-as-boom- gathers-pace-grupo-bimbo-s-a-b-de-c-v-nestle-sa-unilever/
(2021) The 2021 State of the Industry Report: A Mid-Year Snapshot Retrieved from
Refrigerated&Frozen Food: https://www.refrigeratedfrozenfood.com/articles/100485-the- 2021-state-of-the-industry-report-a-mid-year-snapshot
Vu, V (2021, 03, 15) Vietnamese people everywhere - (Lesson 4): Hue grilled pork sausage help
Vietnamese women become billionaires in Thailand Retrieved from Phap luat Vietnam: https://baophapluat.vn/nguoi-viet-muon-phuong-bai-4-mon-nem-nuong-hue-giup-nguoi- phu-nu-viet-thanh-ty-phu-tren-dat-thai-lan-post385156.html
Thailand - Official exchange rate Retrieved from Kpoema: https://knoema.com/atlas/Thailand/topics/Economy/Financial-Sector-Exchange- rates/Exchange-rate
(2018, 06, 08) MRT บอกรักโอปป้า Retrieved from Prachachat: https://www.prachachat.net/marketing/news-171807
(2021, 04, 10) Instagram Ads Services: บริการบริหารจัดการโฆษณาผ่าน Instagram ads Retrieved from
Nextrix: https://www.nextrix.com/online-advertising/instagram-ads-services.html โฆษณาบน Facebook (Facebook Ads) Retrieved from Nipa: https://nipa.co.th/th/service/facebook-ads a
Table 1 Cost statistics used in a year
Table 2 Expected sales table in the first year of Cholimex Namnueng
Table 3 Expenses of product Name of expenses Spending (1st year) Spending (2nd year)
Documents (exclusive trademark registration, FDA license, etc) 192.000 Baht
Table 4 Expenses of place Name of expenses Spending (1st year) Spending (2nd year)
Shipping cost 87.915 Baht/ton 80.000 Baht/ton
Discount for distributors 1.600.750 Baht 1.650.000 Baht
Table 5 Promotional budget of Cholimex Namnueng
Youtube Trueview ads - 20s (300.000 baht) Overlay + remarketing (180.000 baht)
Media channel Thai Rath (90.000 baht/ 1.000.000 prints)
BangKok Post (73.200 baht/ 72.000 prints ) Daily News (126.000 baht/ 850.000 prints)
In the convenience store, supermarket 400.000 baht (banner, poster, etc)
Poster on buses (107.500 baht/ 5 buses)
Offline 35.000 baht/ 6000 Chili sauce 21.900 baht/ 3000 sauce bottle
Total 2.502.200 baht (1.707.688.769 VND) 1.493.900 baht (1.019.549.298 VND) e
Figure 1 Product packaging design image f
APPENDIX 3 MEMBER’S GROUP WORK ASSESSMENT
Evaluation Criteria – The members all support each other to perform, so the evaluation of completed work will divided as follows:
M: Main grip c: complete with the main holder
Table 1 Member’s group work assessment
No Name/Work My Diep
1.1 Brief overview of the company M c M c
3.1 Analysis of the Internal Environment
3.2 Analysis of the External Environment
3.4 Size and Extent of Demand M c c M
3.5 Product category Stage of product life cycle c M c c
5.2 Target Marketing Identification and Segmentation Strategy M M M M