end of marketing course assignment marketing plan for choco pie cake of orion company in the first 3 months of 2022

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

THANG LONG UNIVERSITYENGLISH DEPARTMENT

-o0o -END-OF-MARKETING COURSE ASSIGNMENTMARKETING PLAN FOR CHOCO PIE CAKE OFORION COMPANY IN THE FIRST 3 MONTHS OF 2022

STUDENTS’ NAME: 1 PHAM THI TU ANHA34468

2.1.2 Analysis of the status of marketing activities that Orion has carried outin the first 3 months of 2022 of Choco pie cake 9

CHAPTER 3 MARKETING PLAN FOR CHOCOPIE CAKES IN THE

FIRST 3 MONTHS OF 2022 30

3.1 Marketing plan for Chocopie Cake in the first 3 months of 2022 30

3.1.1 ORION's strategic marketing goals 30

THE LIST OF TABLES OR FIGURES

Table 1.1 Comparison between the Choco pie and other products 4

Table 2.1 Swot analysis of Choco pie cake products 9

Ficture 2.1 Choco pie 11

Ficture 2.2 Brand logo 11

Ficture 2.3 Choco pie cake 13

Ficture 2.4 Choco pie Dark 13

Ficture 2.5 Choco pie Yogurt 14

Ficture 2.6 Choco pie Matcha 14

Table 2.2 Compare the price of Choco pie cakes and competitors' cakes 15

Table 2.3 Compare prices of Choco pie cakes at different selling locations 15

Diagram 2.1 Orion's product distribution channels 17

Ficture 2.7 TVC campaign advertises Choco pie cake with Orion's "Love like Choco pie" message (2010) 19

Ficture 2.8 TVC ad for Chocopie cake tells the touching story of 2 grandchildren-"Love like Chocopie" 19

Ficture 2.9 The most moving advertisement about father and son - "Love like Choco pie" 20

Ficture 2.10 Brand Ambassador for Choco pie Dark Cakes – actor Lee Kwang So 21

Ficture 2.11 Choco pie on Facebook 21

Ficture 2.12 Influencer Marketing- Soobin Hoang Son 22

Ficture 2.13 YouTube Channel: Orion World- Shortening the gap with consumers 23

Ficture 2.14 Inside the Orion factory in Binh Duong (Ho Chi Minh City) 23

Ficture 2.15 Choco pie appeared in the television show Running man Vietnam 24

Ficture 2.16 Version of "Orion's Tet Gift Set 2020 and 2021" 24

Ficture 2.17 Choco Pie cakes painted with the word "healthy" 25

Table 2.5 Customer group of Choco pie cake products 27

Diagram 2.2 Orion positioning 29

Ficture 3.1 BCG matrix of Chocopie cakes 31

Table 3.1 Mixed Marketing Strategies 34

Table 3.2 Detailed marketing plan (Unit:VND) 35 Table 3.3 Prize (Unit: VND) 37 Table 3.4 Timetable for the plan 39

Orion Food Vina, a totally Korean-owned company focusing on candy production, was founded in 2006 Orion Food Company has grown to become one of Vietnam's largest companies, with numerous well-known items such as Choco pie, Custas, Goute, O'star, etc Orion is constantly researching and developing many nutritious and tasty products for all ages, with two factories and four locations and almost 4,000 people dispersed around the country Orion products are exported and distributed in over 65 countries worldwide

Besides, in order to be self-sufficient in raw materials for potato snack products, Orion established O'star Farm in Vietnam, specializing in supplying fresh potato ingredients to produce O'star potato snacks Orion annually invests millions of dollars in upgrading production lines, equipment, and machinery to increase production capacity, helping to provide consumers with quality products, diverse designs, and suitable price Orion's employees are well-trained before starting to work at the workshops According to Orion, the company currently accounts for 58% of the industrial processing market share in Vietnam Orion Food Vina has won many awards such as: "Vietnamese high-quality goods", "Top 500 largest enterprises in Vietnam", etc In 2020, according to the Ministry of Industry and Trade expected that by 2030, the national output of confectionery will reach about 6 million 800 thousand tons, basically meeting the needs of domestic consumption and export This shows that the domestic confectionery market is very potential and growing There have been many businesses participating in the above confectionery market and achieved outstanding achievements

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 Vietnamese market, the product "Choco pie Cake" has a certain position in the hearts of consumers, achieving that result thanks to effective marketing campaigns built by Orion Furthermore, apart from the factors of product quality, marketing is considered as a tool to support sales activities mainly to achieve sales goals for the year rather than a competitive strategic orientation of the enterprise

Therefore, we decided to choose "Building a Marketing plan for the product “Choco pie cake” of ORION VINA Food Co., Ltd in the first 3 months of 2022 to boost revenue as well as increase the coverage of all distribution

CHAPTER 1 MARKETING SITUATION ANALYSIS1.1 Macro economic

1.1.1 Demographic

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

1.1.2 Economic

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.

1.1.3 Natural

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.

1.1.4 Technological

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

Page 2

1.2 Micro economic

1.2.1 Competitors

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.

Similarities:

The products from 4 company are round cakes,

Soft and sponge cakes is covered with chocolate in the outside, The filling is Marshmallow

The packaging is inflated with air to prevent the cake from breaking when long time to peel the cake, the cake is still soft and delicious rectangular with red and white and white letters with logo of Orion Food Vina

product, but it has not yet impressed

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.

1.2.2 Customers

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.

1.2.3 Suppliers

The company pays attention to choose the suppliers with great reputation: Kerrybio -science B.V Dairy Company (Netherland)

Nutribo Dairy Company (France)

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.

Page 4

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.

1.2.4 Publics

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.

1.2.5 Intermediaries

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

1.2.6.1 Human

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.

1.2.6.2 Finance

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.

Supply of materials, exams:

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.

In the face of the complicated development of covid-19, the import of processing materials abroad such as from manufacturers of Australia, the Netherlands, France makes it difficult to produce Choco pie.

Page 6

Marketing System:

Orion uses a highly effective communication strategy:

Participating in sponsoring television game shows and meaningful activities: Orion sponsored the audition game in 2008 for $ 100,000, VTC game has boarded the image for Orion In addition, Orion also sponsored the Golden Bell Ringing program of Vietnam Television This is a very effective way to advertise because it reaches consumers.

Strong advertising investment: We are no strangers to Chocopie cake advertisements with all kinds of flavors from buses, gas fields, or even on television associated with famous Korean actors and professional staging investment.

CHAPTER 2 ANALYSIS OF THE MARKETING SITUATIONAFFECTING ORION'S MARKETING

2.1 Analysis of the marketing situation affecting Orion's marketing luxurious product designs.

Large market share (60% market share with Orion Chocopie products) and steady growth rate 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 the same type of other brands on the market the strong market rate expanding market share.

Continue to use bold products to satisfy needs thereby attracting more customers.

Page 8

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 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 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 outin 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.

2.1.2.1 Product Strategy

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.

●Product Name: Choco pie

●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.

Page 10

Ficture 2.1 Choco pie

(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.

Brand name: ORION Brand logo: graphic pattern.

Ficture 2.2 Brand logo

(Source: https://www.lecarreasiatique.com/orion-choco-pie-360gc2x21396573)

Brand typeface: inconsistent Brand name meaning:

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.

Explain the logo

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.

Cake quality

Nutritional composition

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,

Page 12

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.

Ficture 2.4 Choco pie Dark

(Source: Choco pie Vietnam) Yogurt flavor Choco pie: in addition to the smell of chocolate covering the outside of the cake, it is quite fragrant yogurt and strawberries Like the

previous Choco pie cakes, the cake also has 3 layers, the outer layer is covered with chocolate, the inside is the yogurt flavor cake, accompanied by a fragrant chewy marshmallow layer.

Ficture 2.5 Choco pie Yogurt

(Source: Choco pie Vietnam) Explaining the choice of matcha, red beans for the new chocopie, Orion representative said: "Because matcha and red beans are inherently very healthy ingredients Matcha - high-end ingredients from Japan help the spirit relax, comfortable and red beans help increase the antioxidant content, help beautiful skin, bright eyes So combining these two ingredients into one cake will bring many times the health value to consumers."

Ficture 2.6 Choco pie Matcha

(Source: Choco pie Vietnam)

Page 14

As a result, Orion Vina modernizes Choco pie's product lines to suit the tastes of different customers This attracts new customers.

2.1.2.2 Price Strategy

Orion follows a leading product quality strategy, thus setting high prices aimed at middle- to high-income customers

Compare prices with cake products of the same type on the market

Choco pie Lotte pie Choco vina Phaner Pie 55.000 VND 41.000 VND 36.500 VND 36.000 VND

Table 2.3 Compare the price of Choco pie cakes and competitors' cakes (Source: https://websosanh.vn/)

Price 1 box Choco pie 360g (12 cakes)

43.900 VND 55.000 VND 49.300 VND Table 2.4 Compare prices of Choco pie cakes at different selling locations

(Source: https://websosanh.vn/) Consequently, every channel sold, the price of Chocopie cakes is different Therefore, the company chooses a price adjustment strategy: Due to the characteristics of the confectionery industry along with the company's general strategy, ORION now applies a discount price strategy to the system of large distributors, the distribution system directly from the factory and level 1 agents Accordingly, the method of pricing based on the cost of producing the product is the main.

Since Vietnam is a country with low GDP per person, the price must be suitable for the spending level of Vietnamese people The price of Choco pie cakes is higher

than other companies' pies but this price Vietnamese consumers can still accept and spend money to buy products Because the price and quality of Choco pie are commensurate with each other While low prices will stimulate demand, for Choco pie, when its competitors value their products low, it does not have too much of an impact Through the above example, Choco pie’s position in the hearts of Vietnamese people accounts for a large part Therefore, Orion is not focused on a low-cost strategy but focuses on product development so that consumers can use good quality cakes.

2.1.2.3 Distribution Channel Strategy (Place)

Choco pie has an extensive distribution network, always ensuring the product is everywhere to serve customers Orion's distribution channels make it quicker and easier for your products to reach customers

Types of distribution and trends

Orion distributes products through two channels: direct distribution channels and indirect distribution channels Accordingly, in the direct distribution channel, the participating components are only Orion and consumers

Secondly, Orion builds indirect distribution channels (also known as intermediary distribution channels), including traditional distribution channels (groceries, agents) and modern distribution channels (supermarkets, convenience stores, e-commerce).

Description of Orion's distribution channel

Page 16

Diagram 2.1 Orion's product distribution channels

(Source: Research and Synthesis Students) Analysis of distribution channel system

Manufacturer (Orion)

Choco pie cakes are produced directly in factories in Binh Duong and Bac Ninh After that, the product is stored and stored before being put on the market.

Exclusive agents and distributors

Distribution intermediaries have the right on behalf of the manufacturer to sell the product.

As a system of level 1 agents, level 2 agents and wholesale supermarkets in Vietnam market that have signed contracts to sell Choco pie cake products and other types of Orion vina products

Retailers