group assignment marketing strategy of chocopie

Orion Business Overview3.1 Introducing Orion CompanyOrion was known as the "King of Vietnamese Chocopie" when it was producedThis sponge cake product of the company has continuously held

GROUP ASSIGNMENTMarketing strategy of

● Full name:

○ Đỗ Thị Minh -HS170414○ Trần Phương Tuyền -HS170883○ Tạ Thị Thu Thắm -HS173023 ○ Nguyễn Duy Đạt -HS176221○ Nguyễn Thị Ngọc Oanh -HS170468 ○ Nguyễn Thị Thùy My -HS170820 ○ Mai Hoàng Ánh Dương -HS180180

● Class: MKT1815● Lecturer: Nguyễn Thu Hà

● Course: MKT304 - Integrated Marketing Communications● Date: Fall 2023

Table of contents:

I.Title page

III Orion Business Overview

3.1 Introducing Orion Company

Orion was known as the "King of Vietnamese Chocopie" when it was producedThis sponge cake product of the company has continuously held the leading market share in Vietnam for many years.

Korea's leading confectionery group - Orion has established a representative office in the city HCM in 1990 and in Hanoi in 2002 Orion began advertising and bringing its products to the Vietnamese market in 1997 In 2005, Orion officially opened a branch in Vietnam under the company name Orion Foods Ltd In December 2006, Orion inaugurated its first factory in My Phuoc 2 Industrial Park, Binh Duong province, and 3 years later established its second factory in Yen Phong Industrial Park, Bac Ninh province Head office: Lot E-13-CN, NA3 Street - My Phuoc 2 Industrial Park - My Phuoc Ward - Ben Cat Town - Binh Duong Province

Currently, Orion Company accounts for 58% of the industrial cake market sharein Vietnam In addition, Orion Food Vina has won many awards and certificatesvoted by consumers and awarded by prestigious organizations such as "High-quality Vietnamese goods", and "Top 500 largest enterprises in Vietnam" Orion company's products are distributed throughout 64 provinces and cities in Vietnam and some products are exported to foreign countries.

Historical milestones

had a new company Confectionery production line

- 1969: Conquered the domestic market with chocolate products● Hard Times - 1970s:

- 1974: Mega brand “CHOCOPIE” was born, creating a new page in corporate history.

- 1976: Bringing chewing gum products to the European market, continuing to research and develop many diverse products● Period of outstanding development:

- In 1993, a representative office was established in Beijing

- In 1994, the Chung Lu factory was built and diversified investment fields were developed - In 1995, the Orion Food factory was built in China.- In 1996 founded a basketball team (Orions Pro) and established

Mediaplex (film production)

- In 1997, the Foreign Business Department was established● Re-establishment period:

- In July 2001, a chewing gum factory in China was completed

- On September 1, 2001, the Orion Group was established, separated from Tongyang Group Reorganize the global confectionery business system and develop the entertainment business With the Strategy of "Key product manufacturing company" and "World class company"

- In August 2002, the construction of Orion Food Company was completed- In September 2003, the company name was changed to Orion

Corporation and achieved cumulative revenue exceeding 1,000 billion Won.

- In December 2004, OFL separated from Pepsico and changed its name to Orion Snack International

- In August 2005, construction of the Orion Food factory in China began

- In October 2005, Orion Vina company was established and achieved great success in China in phase 1 Orion continued to expand its investment market into Russia and Vietnam.

● Present:

- In 2015, Mediaplex was renamed Showbox.

- In 2017, it acquired Jeju Lava Mineral Water Company and opened Choco Pie House.

- In 2019, Jeju Volcanic Water launched, not only stopping at the confectionery industry but aiming to gradually transform itself into a global food company.

3.2 Vision, mission, and business ethics of Orion Food Vina company:

a Vision

Orion aims to become the No 1 confectionery manufacturer in Vietnam Furthermore, the company is trying to transform itself towards sustainable business development through transparency in production and business reporting, actively participating in environmental protection activities by reducing printing colors on packaging, limiting advertising costs, and instead, striving to research and improve products that are good for consumers' health, and at the same time carry out social responsibility activities.

b Mission

Orion always especially remembers that the food industry is an industry of conscience Because candy is something that goes into the human body and when developing any product, Orion always remembers that these are the thingsthat our children will eat Orion's Mission is to produce food that ensures food hygiene and safety with the best quality for consumers.

c Business Ethics

Orion Vietnam is committed to not compromising on quality to achieve high profits The business philosophy of the company is "Only Orion" which represents the spirit of promoting "difference" in business because difference is Orion's main competitiveness.

IV Current Situation Analysis

4.1: Macro Environment

The macro-environment includes the larger social forces that influence the microenvironment - demographic, economic, natural, technological, political, and cultural forces (Philip Kotler & Gary Armstrong, 2012).

(Philip Kotler, Gary Armstrong (2012) Principles of marketing)

4.1.1: Demographics

Based on Worldometer's latest data construction by the United Nations, Vietnam's current population is 99,066,525 as of Saturday, March 2023 Vietnam's population is equivalent to 1.% of the world's total population Vietnam ranks 16th on the list of countries by population (Vietnam People's Worldometer, 2023)

Chocopie's motto in the Vietnamese market is "The taste of friendship" This motto represents Chocopie's desire to become the No 1 confectionery manufacturer in Vietnam and a manufacturer of snacks associated with moments of intimacy and love between people.

4.1.2: Economic

Vietnam's development over the past 35 years has been remarkable: GDP increased from 446 trillion VND in 1986 to 3,847 million billion VND in 2020, a growth rate among the highest in the region as well as in the world

(infographics, 2023)

In the period 2002 - 2020, GDP per capita increased 3.6 times, reaching nearly 3,700 USD The poverty rate (according to the standard of 3.65 USD/day, according to PPP in 2017) decreased from more than 14% in 2010 to 3.8% in 2020 (World Bank, 2022)

Orion in general and Chocopie in particular have built a solid economy in the Vietnamese market through the development of high-quality products, investment in infrastructure, and effective market access strategies.

4.1.3: Environment

Air pollution threatens the health of people in many parts of the world New estimates in 2018 show that nine out of 10 people breathe air with high levels of

pollutants Both ambient (outdoor) and indoor (indoor) air pollution are responsible for approximately 7 million deaths globally each year; About 2.2 million people die each year In Vietnam, each year there are about 60,000 deaths related to air pollution (WHO, 2023)

Recognizing this, Orion Group in general and Chocopie products in particular have carried out four specific activities of Chocopie in protecting the environment in Vietnam including:

Since 2015, Orion Vina has reduced the amount of ink used for packaging designs to 88 tons.

In 2018, 12 Orion Vina product packaging received green certification from the Korean Ministry of Environment.

Two product lines labeled "Gentle Packaging" of Orion Vina began to be available in the Vietnamese market in September 2023.

Orion Vina has organized recycling packaging collection programs at schools and public areas.

4.1.4: Political And Social

Vietnam has a stable political system, violence and territorial disputes rarely occur, and human security indicators are increasingly improving (Vietnam is safe because of political stability, 2019)

Political stability is one of the indispensable factors, contributing to Vietnam's ability to persevere in economic development policies (VOV VN, 2010)With the stable political situation in Vietnam, Orion can take action to expand and develop its business in this market:

Increase investment in manufacturing factories in Vietnam With a stable political situation, Orion can continue to invest more in these factories to increase production and meet the growing demand of Vietnamese consumers.

Expanding distribution system: Orion currently has a nationwide distribution network, with more than 100,000 sales points With a stable political situation, Orion can continue to expand its distribution system to reach more customers.(brandsvietnam,2023)

Actions Orion has taken recently:

In 2023, Orion expanded its distribution system in Vietnam by cooperating withlarge retailers such as Vinmart, Big C,

In 2023, Orion has increased brand promotion by participating in major events such as the Mid-Autumn Festival, and Lunar New Year,

4.2: Competitors

1 Analysis of Chocopie's competitors

- First is the policy of not increasing product prices Although raw material costs account for about 70% of product costs in the confectionery and ice

industry, prices have continuously increased over the past year, the company has not increased the selling price of all products from 2014 to the present - The current Vietnamese confectionery market has fierce competition with many names participating such as Huu Nghi, Bao Ngoc, Pham Nguyen, Hai Ha besides major foreign competitors such as Orion, Lotte, Mondelez Kinh Do Recently, the return of Kido Joint Stock Company with a new brand "KIDO's Bakery"

- After nearly 16 years of operation in the Vietnamese market, Orion has achieved many memorable milestones such as holding the role of the leading confectionery manufacturing group in Vietnam, holding nearly 67% of the market share

- Price competition: Nowadays, price competition and inflation in the market are increasing Large manufacturers such as: Pham Nguyen Confectionery Joint Stock Company, Dong A Food Joint Stock Company, Biscafun Confectionery Company continuously expand and dominate the domestic market share.- Competitors are increasingly expanding: Orion in general and Chocopie products in particular are facing indirect competition from famous competitors including Kinh Do Group, Huu Nghi Food Joint Stock Company, Huu Nghi Food Joint Stock Company, Thanh Hoa Company Vinabico Confectionery Joint Stock Company, Trang An Investment and Trading Joint Stock Company,

Orion Lotte Strengths - Quality raw materials for

processing are guaranteed to be safe because they are imported mainly from milkproducer Murray Goulburn(Australia), KerryBio - Science B.V Company (Netherlands), and NutriBio Company (France).

-One of the enterprises with the first cake factory in Vietnam, holding a largemarket share and having a stable growth rate over the years.

- Possessing a large investment capital, the production process system is always improved and thecompany also focuses on building infrastructure.-There are many effective communication strategies when sponsoring TV shows and some reality programs, especially promoting strong investment in advertising.

- Multi-industry corporation: Lotte is a multi-industry corporation, with business activities spanning from retail, hotel, and entertainment to food This helps Lotte have financial resources and solid management experience, supporting the company's food business.

- Wide distribution network: Lotte has a wide distribution network aroundthe world, including the Korean domestic market and international markets This helps Lotte easily reach customers and boost sales.

- Diverse products: Lotte provides a diverse product portfolio, including confectionery, snacks, canned foods, drinks, This helps Lotte meet the needs of many customers different goods.

- Effective CSR activities: Lotte has an effective CSR

strategy, focusing on contributing to the community and protecting the environment Orion alsohas a CSR strategy, the company's CSR activities are not really as outstanding as Lotte's.

Weaknesses - In Vietnam, Orion only has two manufacturing plants in Binh Duong and Bac Ninh, which cannot meet the volume of mass-produced goods for distribution in many provinces.

- The organizational structure and operation of the distribution channel system still has many limitations In particular, the company pays little attention to the market in remote provinces with a relatively small number of distribution agents compared to competitors

- Less advertising andpromotion.

- The texture of the productis quite dry.

Opportunities - The Vietnamese market has abundant, cheap and experienced human resources in production and processing that needs to be stimulated and promoted.

- The boom in the market, especially in the fast food segment, makes high-income consumers more likely to go global brands than regular eateries.

- Weak and small domesticcompetitors do not have strong promotional strategies Orion takes advantage of its resources to advertise and promote product and brand images on Social Media, television, newspapers, etc., which is trusted and supported by a large number of consumers.- Increased consumer income leads to increased market demand, creating potential opportunities for Orion to increase sales.- Development of science and technology creates conditions for applying and improving science and technology in production activities to increase productivity and product quality to meet the increasing demands of the market.

- In the rural market, confectionery consumptionis still very limited, promising many growth opportunities in the future.

-The issue of food hygiene and safety is increasing concern by consumers.-Consumer income tends toincrease

-Science and technology development helps improveproduct quality.

Challenges - Price competition:Competitors in the chocolate and

confectionery industry in

-Increased competition:Global companies such as Hershey, Ferrero, Nestle and Orion These

Vietnam can easily lower product prices to compete with Orion This could reduce Orion's profits Orion needs a suitable pricing strategy to compete.-Inflation crisis:

High inflation in Vietnam will cause input costs such as raw materials, labor, andtransportation to increase This will reduce Orion's profit margin if costs are not well controlled.-Major competitors:Companies such as Kinh Do, Hai Ha, Vinabico have a solid position in the Vietnamese market They have advantages in brand, distribution channels and market understanding Orion needs a lot of resources to compete head-to-head.

-Shortage of human resources:

Vietnam lacks highly skilled labor Orion may have difficulty finding quality personnel for production and management operations.-Cultural barriers:

competitors may offer similar or better products, lower prices, or more effective marketing strategies to attract customers.-Changing needs:Changing consumer preferences and demands for healthier, organic, vegan, gluten-free, or sugar-free chocolate products Lotte may need toinvest more in research anddevelopment, innovation and quality assurance to meet these expectations anddifferentiate itself from other competitors.-Compliance with the law:Legal and environmental issues related to sourcing, manufacturing, packaging and distribution of chocolate products Lotte may face challenges in complying with various laws and standards in different countries, ensuring ethical and sustainable practices throughout its supply chain,and reducing emissions carbon emissions and wastegeneration.