When people talk about the confectionery market in Vietnam, Orion with its main brand product, Choco pie Cake are usually mentioned.. After more than 15 years of presence in the Vietname
MARKETING SITUATION ANALYSIS
Macro economic
According to the Population and Housing Census in 2019, Vietnam is home to 96.2 million people, ranking third in the Southeast Asia area and at 15th in the world. Population density of Vietnam is 317 person/km2 (2019) In 2019, the population growth rate of Vietnam increased 1.56% compared to 2018.
In addition, in 2019, the population of urban areas in Vietnam is 33,059,735, accounting for 34.4% In rural areas is 63,149,249, accounting for 65.6% The proportion of the population in rural areas tends to decrease Because this is the result of migration from rural to urban areas and rapid urbanization in big cities Despite the speed of urbanization, the population lives in rural areas make up 65.5%, with low income Therefore, it also greatly affects revenue and price strategy.
Besides, Vietnam's sex ratio is more and more increasingly: 111.5 boys/ 100 girls (2019) According to UNFPA (the United Nations Population Fund), Vietnam has entered the “golden population” period and will end in 2040 The population aged 15-
24 years old accounts for the majority up to 70% population.
To sum up, Vietnam’s population is increasing over the years, we realize that the domestic market is very potential for the food industry and the confectionery industry
In the first 9 months of 2021, GDP only increased by 1.42% over the same period last year, because of the Covid-19 epidemic That seriously affects all sectors of the economy, many areas had to implement social distancing to prevent disease Moreover, inflation is controlled at a low level Similarly, Vietnam's GDP in 2021 is expected to decrease 2% due to the negative impact of the current COVID-19 outbreak on economic activity Therefore, Orion needs to come up with timely policies to stimulate purchase in the first 3 months of the year.
Furthermore, the status of income is different in each region The income disparity between classes is very large Besides, this gap also occurs between urban and rural areas, plains and mountains, and remote areas Now, the income level of the city is 5-7 times from that of the countryside, while there are more than 60% of the population lives in the countryside.
Vietnam's economy is on the development with many new opportunities for cooperation and integration The current economic growth rate of our country is quite high, which creates opportunities for Orion to invest in expanding production and business activities related to Choco Pie With variety of patterns, Choco Pie is more and more popular with consumers and has promising future.
However, apart from the development opportunities, Orion also faces many challenges Currently, Vietnam's economy is quite unstable due to the epidemic situation That causes many difficulties in business activities, especially in the procurement of raw materials In addition, the income disparity between the population classes is very large, making it difficult to price products in line with the income of the majority of the population Furthermore, Vietnam joined the WTO, Orion not only faced domestic competitors but also faced strong foreign competitors.
Environmental pollution: environmental conditions are getting worse and worse Besides, air and water pollution has reached dangerous levels The chemical wastewater has not been treated carefully.
Confectionery products are affected by hot and humid climate Therefore, it also adversely affects the quality and labor productivity, and it is difficult to transport and preserve products.
Consequently, Orion needs to find some solutions to overcome objective factors and improve product quality as well as measures to protect the environment.
In recent year, the rapid scientific and technical revolution has made the life cycle of technology increasingly shortened If they do not want to fall behind, they must constantly innovate technology Especially, in the confectionery industry, consumer tastes often change Thus, the life cycle of products is increasingly shortened
The international economic integration situation has created very favorable conditions for Orion to easily access new technology and modern machinery of the world to strengthen the stature and capacity of the company.
Micro economic
Orion Vina Food's Choco pie hold 58% market share (2017), and leave far behind competitors such as Bibica and Kinh Do, etc However, company is also facing stiff competition from competitors in the industry as Lotte pie (Bibica), Phaner pie (Pham Nguyen company), Chocovina (Biscafun), Frest pie (Kinh Do), etc According to the Orion Vina Food, the three main competitors are Lotte pie, Chocovina and Phaner pie.
The products from 4 company are round cakes,
Soft and sponge cakes is covered with chocolate in the outside,
The packaging is inflated with air to prevent the cake from breaking when dropped.
Chocolate coating is smooth, eye-catching and glossy.
After taking a long time to peel the cake, the cake is still soft and delicious
Marshmallow layer is highly elastic and flexible.
Chocolat e coating is smooth and even.
For a long time when we peel the cake, it is often stuck to the package (due to high humidity).
Chocola te coating is not smooth and even.
For a long time when we peel the cake, it is often stuck to the package (due to high humidity).
Chocolat e coating is not smooth and even.
For a long time when we peel the cake, it is often stuck to the package (due to high humidity). Pac king
Packing is rectangular with red and white and white letters with logo of
Currently, the packing has been improved according to the taste of the
Packing is rectangular with a variety of colors depending on the taste of the cake, white letters and printed with
Packing is rectangular with red, white, and yellow and the white letters with the Phanner’s logo
Packing is rectangular with red background, white letters and ChocoVina’s logo.
ChocoVin a (Biscafun) product, but it has not yet impressed consumers.
Currently , the packing has been improved according to the taste of the product.
57.000 VND depending on the taste of the product
“Sẻ chia vị ngọt - chi ân cộng đồng”
Table 1.1 Comparison between the Choco pie and other products.
Therefore, Choco pie Orion has an advantage compared to its competitors in term of effective communication and good quality Besides, Orion also needs to pay attention to measures to deal with competitors.
The company's products are cakes and snacks so that customers are from all ages, but mainly young people Vietnam's population is 96.2 million people (2019) with a young population structure That will be a great potential market.
The company pays attention to choose the suppliers with great reputation:
Kerrybio -science B.V Dairy Company (Netherland)
Murray Goulburn Dairy Company (Australia)
The Choco pie cake is processed according to the AIB That is globally recognized for setting standards for food safety, AIB International performs inspections to ensure that food manufacturing facilities uphold strict food safety and quality requirements.
In general, the supplier factor has little negative influence on the production and business situation However, this element plays an important role for Orion's business.
The public can be for or against the business
Pressure on prices: Life is more and more developing, people have a lot of choices in purchasing goods, food, etc Besides, consumers always want to buy products with low prices, which always puts pressure on price for company
Pressure on quality: Although Orion's position in Choco Pie production has been confirmed not only in Vietnam but also in major markets such as Korea, Russia, China, Canada; the enterprise has been under pressure from competitors' products.
Distributors, transportation company, organizations providing marketing services, banks are bridges and catalysts for businesses to exist and develop Moreover, Orion contracts with intermediaries very closely Thus, the delivery schedule is always guaranteed.
In addition, Choco pie cake is too famous and familiar to consumers in Vietnam. This cake is available at most supermarkets and grocery stores; even with small-scale business shops such as sidewalk iced tea vendors
1.2.6 The marketing environment inside the business
These are the internal factors of the business affecting resources, marketing quality: Shareholders, management, employees, trade unions, other functional departments
With 2 factories and 2 branches with nearly 3000 employees spread across the country, Orion Vietnam always strives and strives to continue developing nutritious and quality products to serve consumers of all ages Orion Food Vina understands that behind the success and development of the company, human resources are invaluable assets Therefore, Orion Vietnam always gives special attention to building and developing talented varieties for the company Orion aims to develop long-term and nurture the success of employees at the company.
In the recent covid-19 pandemic, Binh Duong is one of the cities that has been heavily affected, the human resources of enterprises have been cut to be able to continue to survive the epidemic season Specifically, at Orion Vina Food Co., Ltd.,
My Phuoc II Industrial Park, Ben Cat town, implementing the plan to organize safe production, prevention, and control of Covid-19 epidemic at the factory, when relevant agencies issue documents guiding the prevention and control of epidemics and on-site production arrangement plans, The company has arranged for about 400 employees to stay together, eat and sleep at the company according to the motto of creating the best possible conditions for employees to stay.
During the outbreak, Orion saved as many capitals as possible to hold on, distribute in a reasonable way, control, and limit unnecessary expenses The company has applied an additional allowance policy for each employee of VND 100,000 per day while increasing the salary by 200% for workers working on Saturdays and Sundays. Machinery and technology:
ORION FOOD VINA Co., Ltd has 2 production lines according to AIB's strict food safety and hygiene standards Choco pie products achieve quality management certification according to iso 9001 international standards, HACCP distributed throughout provinces and cities throughout the country, winning many awards and certifications voted by consumers and prestigious organizations such as "High-quality Vietnamese goods", "Top 500 largest enterprises in Vietnam".
Orion's machinery and equipment in the first months of this year were almost dormant, not working, only food processing plants and the essential consumer industry had the opportunity to operate at full capacity Machinery stopped working along with the source of depreciation of fixed assets zero, the business has difficulty even more difficult.
Orion owns a distribution chain that stretches across the country, we can see Choco pie cakes appearing in supermarkets large and small across the country During the period of social distancing, Orion had difficulty distributing products leading to a large backlog of goods.
ANALYSIS OF THE MARKETING SITUATION AFFECTING ORION'S MARKETING
Analysis of the marketing situation affecting Orion's marketing
Eye-catching, luxurious product designs.
Large market share (60% market share with Orion Chocopie products) and steady growth rate.
Large investment capital focuses on infrastructure.
Many customers rate the product as too sweet for some people. The number of factories in Vietnam is limited, currently only two factories in Vietnam are in Binh Duong and Bac Ninh.
The distribution channel system is limited.
The price is relatively high compared to products of the same type of other brands on the market.
International cooperation, investment attraction are promoted in Vietnam in general and Binh Duong in particular.
Human resources in Vietnam are abundant, favorable for
Taking advantage of the strong market rate expanding market share.
Continue to use bold positioning strategies to make your own mark in the consumer village.
Take advantage of abundant human resources to develop more manufacturing plants in Vietnam.Diversifying products to satisfy needs thereby attracting more customers. the development of production
Market demand in Vietnam is growing strongly.
The number of competitors in the market is increasing
Since Vietnam joined the WTO, the expanded market has many international businesses that want to enter the market.
Vietnam's human resources are abundant, cheap but high-quality human resources; It is necessary to retrain skills to improve the skill level.
Promoting marketing to build a brand, increase competitiveness with competitors in the market, maintain and lead the pie market.
Improve product quality and have policies to train human resources development, especially production human resources and human resources for distribution channel system.
Improve product quality, research and develop more product flavors to meet the increasing demand of consumers.
Promote the development of online sales on e-commerce platforms to overcome the complex epidemic situation that consumers cannot buy directly in supermarkets and dealers.
(Sources of self-study and synthesis) Table 2.2 Swot analysis of Choco pie cake products
2.1.2 Analysis of the status of marketing activities that Orion has carried out in the first 3 months of 2022 of Choco pie cake
Orion's goal is to become one of the world's leading snack groups Orion seems to have succeeded for the past six years, as it has been in the top 15 of the world's top
100 confectionery companies by the global confectionery industry magazine Candy
Industry In addition to South Korea, Orion has production facilities in China, Vietnam and Russia, and currently exports products to more than 60 different countries around the world And in the Vietnamese market, Choco pie cakes are seen "SIGNATURE" products of Orion.
Orion Vina has invested a lot and focused on packaging selection: the name must be eye-catching, both preserve the product, and easy to read easily Choco pie packaging has 3 layers:
The first layer is a direct layer containing products with a grooved PE bag that will be easy to use, peel the box, the color is red is the main combination with brown and white very eye-catching, attracting buyers. The information on the packaging includes product name, composition, tool, weight, storage attention.
●Sign: circle with stars around
●Box case: red bordered white sliced Choco pie cake, using red as the color that symbolizes victory according to the concept of Asians in general
●Weight information and quality indicators
●Cake storage packaging: PE material, printed with Choco pie cake.
The second layer is the cake protection packaging, on the inside of the first packaging and the second packaging will be discarded when we use the product It's both a layer of protection, both complementary and advertising.
In recent years, Choco pie cakes have come up with many different types and flavors, but the packaging design has not changed too much Brand name, logo, cake shape remains the same and only change the color of the shell.
(Source: Choco pie Vietnam) Branding
A mark is a sign capable of distinguishing goods or services produced or supplied by a business from goods or services of other enterprises Understanding the importance and great influence of the brand on the product, brand and reputation of the business, from the moment it officially comes to the market, Orion has constantly built and developed its brand to become one of the most famous confectionery brands not only in Korea but all over the world.
Ficture 2.2 Brand logo(Source: https://www.lecarreasiatique.com/orion-choco-pie-360gc2x21396573)
Orion is a constellation, symbolizing the excellent quality beam, always reaching the top of customer satisfaction Here use inconsistent writing and blood red and the success of the heat highlights the youthful personality for the product.
The circle represents the earth, for globality, international comparison The stars around the circle and facing up and up the earth show that the company always strives to reach the quality of high-vang, distant wines and towards the good future Reach for the gold quality of the product.
The logo and brand name are consistently and impressively linked through the circular icon and the star blends together to rise to the top.
Choco pie-Orion trademark review
Choco pie is named after the commercial name of the business (Orion) accompanied by the name of the product (Choco pie) Whenever people refer to Orion Vina Food Co., Ltd., people refer to Choco pie products according to the slogan:
"Orion is Choco pie, Choco pie is Orion" Thus, along with the quality, the easy-to- read, easy-to-remember name has helped Choco pie-Orion create a place in the minds of consumers.
Choco pie consists of two chocolate crusts sandwiched between marshmallows and the main ingredients: flour, sugar, malt, shortening, oxidized vegetable oil, whole milk powder, salt, gelatin, cocoa powder, chicken eggs, etc
Basecake: soft and very porous sponge biscuits made from sugar dough. Mashmallow cream: a flexible and elastic cream, sandwiched between 2 layers of cake.
Chocolate coating: the outside increases the quality and taste of the cake.When packing products for distribution, the cake is cooled, sterilized to stabilize the quality of the cake and destroy microorganisms All products produced and distributed by Orion Vina Co., Ltd in Vietnam market are free of melamine toxins, which is safe for consumers' health The raw materials for processing the company's products are imported from large factories to ensure the quality is always uniform.
Ficture 2.3 Choco pie cake (Source: http://khonguyenlieu.com/san-pham/banh-choco-pie-orion-hop-396g/) Customer reviews
The product policy that Orion Vina applies to Choco pie is the product development policy Orion develops the Choco pie product line with a variety of flavors, evolving the product over time.
Chocopiedark: 70% more cocoa in each cake than traditional Choco pie cakes It makes chocolate taste darker, more attractive.
MONTHS OF 2022
Marketing plan for Chocopie Cake in the first 3 months of 2022
Maintaining and leading the ChocoPie market in Vietnam
According to the Ministry of Industry and Trade, the revenue growth of the confectionery group is about 15% per year, with total market sales estimated at 51 trillion VND and it is estimated that by 2030, the country's confectionery output will reach about 6 million 800 thousand tons, basically meeting the needs of domestic consumption and export Confectionery consumption per capita in Vietnam is less than
In 7/ 2021, according to the World Population Review website, Hanoi's population reached 8,418,883 people, 55% of urban residents.
In 2020, Orion's growth rate in Vietnam is 15.7%.
As a result, expected growth rate to increase by 25% over the same period last year. Expanding distribution channel
The distribution system has spread to all provinces and cities The objective is to expand more markets in the Central and Central Highlands provinces and to expand the market to rural areas such as around the Mekong Delta In the face of difficulties caused by the impact of the epidemic and drastic market challenges, the Company still deploys and expands its distribution channel system to several key points and potential market areas, the annual budget for the development of the distribution channel system has increased significantly Besides, qualified young human resources are also added to the distribution channel system Existing investment in distribution channel has increased but still slow Therefore, the company will focus on distribution channels soon.
Selling price: keep the same but improve the quality
In general, the selling price of ORION Choco pie products on the market is relatively high because this is a high-class confectionery product Therefore, theCompany focuses on improving product quality as a core factor.
Revenue: In 2018, there were about 600 million Chocopie cakes sold in Vietnam, with sales reaching 92 billion won ($80.9 million) In Vietnam, Orion Choco Pie is a very popular cake.
In 2021, Orion's full-year revenue in Vietnam increased by 15.7%.
Therefore, Target for the first 3 months of 2022 to reach 36,000 (million VND).
3.1.2 Mixed marketing strategies (4Ps) will be implemented in the first 3 months of 2022
Ficture 3.18 BCG matrix of Chocopie cakes
(Source: Sinh viên nghiên cứu và tổng hợp) From the above BCG matrix, the team comes up with the following marketing strategies:
Marketing goals in the first 3 months of
Increase market share of red bean matcha
Chocopie from question mark box to star box
The cake is covered with sweet chocolate, the layer of marshmallow is chewy and greasy with milk.
► Special edition: The filling layer is supplemented with a cool amount of matcha and a layer of fragrant red bean cream.
Continue to maintain the retail price policy for consumers, besides applying high discounts and many incentives to retailers, supermarke ts, and trade centers.
Continue to maintain sales through Orion's
Increase the discount rate for these large supermarket chains so that the items are displayed in an eye-catching and attractive position.
Expand and develop distribution channels through intermediaries:
- Promote distribution intensity, upgrade means of transportation, create a beautiful image for ORION- VINA
- Develop vertical distribution channel system
Promote strong advertising and communication Specifically:
- Advertise on traditional channels + TV:
Continuing to maintain current advertising, advertising on prime time frames on channels VTV, VTC,
+ Appear on trending videos on Youtube.
+ Maintain ads on Facebook, Google and especially appear more on special occasions like Tet 2022.
This type of product continues to hold the leading position in the Vietnamese market despite the Covid-19 epidemic Orion also has the right development direction and catches up with the current trend of young people who like new things and want to experience unique flavors This version has
"hit" the psychology of GenZ and quickly received great support from
Sales in the first 3 months of the year were
Focusing more on quality, and designing new and unique packaging for products, preparing appropriate designs according to the upcoming
Implement strategies in P2 as objective 1.
Implement strategies in P3 as objective 1.
Implement strategies in P4 as objective 1.
+ Organize promotions with prizes that are valuable gifts.
+ Organize promotions on e-commerce products such as Tiki, Shopee,
Focus on maintaining the market share of Chocolate cake with cocoa flavor in the star box, traditional flavor, and yogurt in the Dairy cow box (BCG matrix) and try to achieve target number 1.
Strategy on action program divided into 2 stages:
Stage Time Action program Implementation department Cost
1 Promotion program "Mua Choco pie rước ngay xế đẹp"
2 Promotion 15.1 on the e- commerce platform from Tiki
6 Collaborate with KOLs to promote the product
Table 3.6 Detailed marketing plan (Unit:VND)
Discounts and promotions at 3 Aeon Malls
Venue: Aeon Mall Ha Dong (Hanoi)
Aeon Mall Tan Phu (HCMC) Aeon Mall Binh Tan (HCMC) Expected quantity of promotional products 50,000 boxes
Time: January 1, 2022 - March 22, 2022, the program period may end soon if the quantity of promotional products is exhausted
Promotion: buy 2 boxes of Choco pie cakes (box of 12) of any flavour and get 1 box of 2 red bean Choco pie cakes for free
Run ads on Facebook for articles, banners, videos about products
→ Total estimated cost is 400,000,000 VND
Promotion program "Mua Choco pie rước ngay xế đẹp"
Time: from January 1, 2022 to December 31, 2022
Participants: All customers who buy promotional products during the program period
Program rules: During the promotion period, customers who buy Chocopie cake products will receive a reward stamp in the product The customer sends the winning code to the 1857 switchboard, according to the syntax TETCHOCO_XXXXXXXX (where XXXXXXXX is the customer's prize code)
How to determine prizes: The first, second and third prizes will be randomly drawn by the organizers using the program's system and livestream on Facebook fanpage Chocopie Vietnam As for the consolation prizes, customers can bring winning stamps to exchange at the nearest Orion agent stores.
Number of prizes Total value
1 First prize Car KIA Morning
1 Sharp Inverter 182 liter refrigerator SJ-X201E-DS
Promotion 15.1 on e-commerce platform Tiki
Estimated time: From January 14, 2022 to January 16, 2022
Choco pie products on Orion Official Store will be 10% off starting from 0:00 on January 15 In addition, there will be an additional discount voucher of VND 20,000 for an invoice of VND 150,000 when buying Orion products, with an ORIDEC20K voucher The total number of vouchers is expected to be 5000 vouchers
Filmed TVC advertising in 30 seconds, of which 20 seconds about TVC products and 10 seconds introduced about Tet promotions
Broadcast schedule from: From January 1, 2022 to January 15, 2022, advertising 2-3 times a week on the first days of the week, the middle of the week and the weekend
Broadcast at: 19:55 (after 24/7 sports news: VND 100,000,000)
(Advertisement price list VTV3: https://bookingquangcao.com/quang- cao/vtv3/bang-gia-quang-cao-dai-truyen-hinh-vtv3.html)
Run ads on Facebook for articles, banners, videos about products
Period from January 8, 2022 to January 30, 2022
Collaborate with KOLs to promote the product
Marketing KOL, Influencers make videos to experience Chocopie products and post them on KOL's official Youtube, Tiktok, and Facebook.
Select KOL/ Influencers: Duc Phuc, ERIK, Hoa Minzy are quite famous singers recently In particular, 3 of them are known as the Hibiscus family. They own a large number of followers on social networking platforms The number of followers on their Social Media platforms is:
→ Total estimated cost of KOL marketing products: 150.000.000đ
=> Total marketing expenses for stage 2: 2.566.500.000 đ
Table 3.8 Timetable for the plan
CONCLUSION
To evaluate the business success of an enterprise not only based on product quality, but also requires the company to build a marketing strategy that stands out and surpasses its competitors in the industry, even the brightest create, innovate, and pioneer It can be said that, so far, Orion has been quite successful in marketing Chocopie products, customers in Vietnam are really attracted and attracted by the advertising TVCs and viral videos that the company releases to the market However, in the face of a volatile market in the past 2 years due to the impact of the Covid-19 epidemic as well as the competition of competitors inside and outside the industry, Orion needs to increase specific marketing strategies in this period The first 3 months of this 2022.
Accordingly, Orion continues to maintain some of the applied marketing strategies such as launching viral clips, advertising TVCs on Tet holiday to hit the psychology of target customers, advertising golden hours on channels wave, outdoor large screen, etc In addition, with the goal of boosting sales for the first 3 months of
2022, the company should promote the strategy of mixed promotion Specifically, Orion can organize promotions on the Tiki 15.1 e-commerce platform, or the promotion program "Mua Chocopie rước ngay xế đẹp" on the occasion of the 2022 Lunar New Year,
Thus, with the current market position, along with Orion's marketing activities that have been improved, not only in the first 3 months of 2022 but also in the long- term vision of the next 10 years, Orion will have a new look in the future constantly innovating and differentiating Chocopie products, and thereby boosting the company's revenue and profi