group assignment marketing strategy of chocopie

Vision, mission, and business ethics of Orion Food Vina company:54.3.1: Where do customers look for Chocopie products?17... Orion Business Overview3.1 Introducing Orion CompanyOrionwaskn

GROUP ASSIGNMENT Marketing strategy of

● Lecturer: Nguyễn Thu Hà

● Course: MKT304 -Integrated Marketing Communications

● Date: Fall 2023

Table of contents:

3.2 Vision, mission, and business ethics of Orion Food Vina company: 5

4.3.1: Where do customers look for Chocopie products? 17

I.Title page

II Executive summary

TheOrionCompanyisaleadingconfectionerygroupknownforitsChocopieproducts.ItholdsthemajoritymarketshareinVietnamandhasestablishedastrongpresenceinthecountrysince1997

1 OrionhastwofactoriesinVietnamanddistributesitsproductsthroughoutthecountry,withsomeexportstoforeigncountries

2 ThecompanyaimstobecomethetopconfectionerymanufacturerinVietnamandiscommittedtosustainablebusinessdevelopmentandsocialresponsibility

3 Themacro-environment,includingdemographics,economy,

environment,andpoliticalandsocialfactors,influencesOrion'soperations.Vietnam'spopulationisgrowing,andthecountry'sstablepoliticalsystemandimprovingeconomyprovideopportunitiesforbusinessexpansion

4 OrionfacescompetitionfrombothdomesticandforeignconfectionerycompaniesinVietnam.Pricecompetitionandchangingconsumerpreferencesposechallengestothecompany

5 Orion'sstrengthsincludetheuseofqualityrawmaterials,alarge

investmentcapital,effectivecommunicationstrategies,andawidedistributionnetwork.However,thecompanyfacesweaknessesinitsmanufacturingcapacityanddistributionchannelsystem

6 Consumerbehaviorisinfluencedbyfactorssuchasprice,productquality,andchangingpreferences.Orion'sChocopieproductsstrivetomeetconsumerdemandsandbuildtrustthroughadvertisingandpromotion

7 Orionanditscompetitors,suchasLotte,bothfacechallengesina

competitivemarket,changingconsumerneeds,andcompliancewithlawsandenvironmentalstandards

Overall,OrionisaprominentplayerintheVietnameseconfectionerymarket,focusingonqualityproducts,sustainabledevelopment,andconsumersatisfactionwhilenavigatingcompetitivechallengesandmarketdynamics

III Orion Business Overview

3.1 Introducing Orion Company

Orionwasknownasthe"KingofVietnameseChocopie"whenitwasproduced

Korea'sleadingconfectionerygroup-Orionhasestablishedarepresentativeofficeinthecity.HCMin1990andinHanoiin2002.OrionbeganadvertisingandbringingitsproductstotheVietnamesemarketin1997.In2005,OrionofficiallyopenedabranchinVietnamunderthecompanynameOrionFoodsLtd.InDecember2006,OrioninaugurateditsfirstfactoryinMyPhuoc2IndustrialPark,BinhDuongprovince,and3yearslaterestablisheditssecondfactoryinYenPhongIndustrialPark,BacNinhprovince.Headoffice:LotE-13-CN,NA3Street-MyPhuoc2IndustrialPark-MyPhuocWard-BenCatTown-BinhDuongProvince

Currently,OrionCompanyaccountsfor58%oftheindustrialcakemarketshareinVietnam.Inaddition,OrionFoodVinahaswonmanyawardsandcertificatesvotedbyconsumersandawardedbyprestigiousorganizationssuchas

"High-qualityVietnamesegoods",and"Top500largestenterprisesinVietnam" Orioncompany'sproductsaredistributedthroughout64provincesandcitiesinVietnamandsomeproductsareexportedtoforeigncountries

Historicalmilestones

● Establishmentperiod-1956s:

- April20,1956:AcquiredFungKukCompany-the2ndlargestconfectionerycompanyintheconfectioneryfieldinKorea

- ThenchangeditsnametoTongyangConfectioneryCompany.Startedproductionofcandyandcaramelproducts

● Growthperiod–1960s:

- 1960:Researchandproductionofthenewproduct-"MamiBiscuit"biscuits

- 1965:Continuouslylaunchingproductsatthebeginningofthenewyear

- 1968:BecamethefirstchocolatemanufacturingcompanyinKoreaandhadanewcompanyConfectioneryproductionline

- 1969:Conqueredthedomesticmarketwithchocolateproducts

● HardTimes-1970s:

- 1974:Megabrand“CHOCOPIE”wasborn,creatinganewpageincorporatehistory

- InAugust2002,theconstructionofOrionFoodCompanywascompleted

- InSeptember2003,thecompanynamewaschangedtoOrion

Corporationandachievedcumulativerevenueexceeding1,000billionWon

- InDecember2004,OFLseparatedfromPepsicoandchangeditsnametoOrionSnackInternational

- InAugust2005,constructionoftheOrionFoodfactoryinChinabegan

- InOctober2005,OrionVinacompanywasestablishedandachievedgreatsuccessinChinainphase1.Orioncontinuedtoexpandits

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

a Vision

Furthermore,thecompanyistryingtotransformitselftowardssustainablebusinessdevelopmentthroughtransparencyinproductionandbusiness

reporting,activelyparticipatinginenvironmentalprotectionactivitiesbyreducingprintingcolorsonpackaging,limitingadvertisingcosts,andinstead,strivingtoresearchandimproveproductsthataregoodforconsumers'health,andatthesametimecarryoutsocialresponsibilityactivities

b.Mission

Orionalwaysespeciallyremembersthatthefoodindustryisanindustryof

conscience.Becausecandyissomethingthatgoesintothehumanbodyandwhendevelopinganyproduct,Orionalwaysremembersthatthesearethethingsthatourchildrenwilleat.Orion'sMissionistoproducefoodthatensuresfoodhygieneandsafetywiththebestqualityforconsumers

c.BusinessEthics

OrionVietnamiscommittedtonotcompromisingonqualitytoachievehighprofits.Thebusinessphilosophyofthecompanyis"OnlyOrion"which

representsthespiritofpromoting"difference"inbusinessbecausedifferenceisOrion'smaincompetitiveness

IV Current Situation Analysis

4.1: Macro Environment

The macro-environment includes the larger social forces that influence themicroenvironment - 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

BasedonWorldometer'slatestdataconstructionbytheUnitedNations,

Vietnam'scurrentpopulationis99,066,525asofSaturday,March2023

Chocopie'smottointheVietnamesemarketis"Thetasteoffriendship".ThismottorepresentsChocopie'sdesiretobecometheNo.1confectionerymanufacturerinVietnamandamanufacturerofsnacksassociatedwithmomentsofintimacyandlovebetweenpeople

4.1.2: Economic

Vietnam'sdevelopmentoverthepast35yearshasbeenremarkable:GDPincreasedfrom446trillionVNDin1986to3,847millionbillionVNDin2020,agrowthrateamongthehighestintheregion.aswellasintheworld

(infographics,2023)

OrioningeneralandChocopieinparticularhavebuiltasolideconomyintheVietnamesemarketthroughthedevelopmentofhigh-qualityproducts,investmentininfrastructure,andeffectivemarketaccessstrategies

4.1.3: Environment

Airpollutionthreatensthehealthofpeopleinmanypartsoftheworld.Newestimatesin2018showthatnineoutof10peoplebreatheairwithhighlevelsofpollutants.Bothambient(outdoor)andindoor(indoor)airpollutionareresponsibleforapproximately7milliondeathsgloballyeachyear;About2.2millionpeopledieeachyear.InVietnam,eachyearthereareabout60,000deathsrelatedtoairpollution.(WHO,2023)

environmentinVietnamincluding:

Since2015,OrionVinahasreducedtheamountofinkusedforpackagingdesignsto88tons

In2018,12OrionVinaproductpackagingreceivedgreencertificationfromtheKoreanMinistryofEnvironment

Twoproductlineslabeled"GentlePackaging"ofOrionVinabegantobeavailableintheVietnamesemarketinSeptember2023

OrionVinahasorganizedrecyclingpackagingcollectionprogramsatschoolsandpublicareas

4.1.4: Political And Social

Vietnamhasastablepoliticalsystem,violenceandterritorialdisputesrarelyoccur,andhumansecurityindicatorsareincreasinglyimproving.(Vietnamissafebecauseofpoliticalstability,2019)

Politicalstabilityisoneoftheindispensablefactors,contributingtoVietnam'sabilitytopersevereineconomicdevelopmentpolicies.(VOVVN,2010)

WiththestablepoliticalsituationinVietnam,Orioncantakeactiontoexpandanddevelopitsbusinessinthismarket:

IncreaseinvestmentinmanufacturingfactoriesinVietnam.Withastablepoliticalsituation,OrioncancontinuetoinvestmoreinthesefactoriestoincreaseproductionandmeetthegrowingdemandofVietnameseconsumers

ActionsOrionhastakenrecently:

In2023,OrionexpandeditsdistributionsysteminVietnambycooperatingwithlargeretailerssuchasVinmart,BigC,

In2023,OrionhasincreasedbrandpromotionbyparticipatinginmajoreventssuchastheMid-AutumnFestival,andLunarNewYear,

4.2: Competitors

1.AnalysisofChocopie'scompetitors

-Firstisthepolicyofnotincreasingproductprices.Althoughrawmaterialcostsaccountforabout70%ofproductcostsintheconfectioneryandice

-ThecurrentVietnameseconfectionerymarkethasfiercecompetitionwithmanynamesparticipatingsuchasHuuNghi,BaoNgoc,PhamNguyen,HaiHa besidesmajorforeigncompetitorssuchasOrion,Lotte,MondelezKinhDo.Recently,thereturnofKidoJointStockCompanywithanewbrand

"KIDO'sBakery"

-Afternearly16yearsofoperationintheVietnamesemarket,OrionhasachievedmanymemorablemilestonessuchasholdingtheroleoftheleadingconfectionerymanufacturinggroupinVietnam,holdingnearly67%ofthemarketshare

-Pricecompetition:Nowadays,pricecompetitionandinflationinthemarketareincreasing.Largemanufacturerssuchas:PhamNguyenConfectioneryJointStockCompany,DongAFoodJointStockCompany,BiscafunConfectioneryCompanycontinuouslyexpandanddominatethedomesticmarketshare.-Competitorsareincreasinglyexpanding:OrioningeneralandChocopieproductsinparticulararefacingindirectcompetitionfromfamouscompetitorsincludingKinhDoGroup,HuuNghiFoodJointStockCompany,HuuNghiFoodJointStockCompany,ThanhHoaCompany.VinabicoConfectioneryJointStockCompany,TrangAnInvestmentandTradingJointStockCompany,

Orion LotteStrengths -Qualityrawmaterialsfor

processingareguaranteedtobesafebecausetheyareimportedmainlyfrommilkproducerMurrayGoulburn(Australia),KerryBio-ScienceB.VCompany(Netherlands),andNutriBioCompany(France)

-OneoftheenterpriseswiththefirstcakefactoryinVietnam,holdingalargemarketshareandhavingastablegrowthrateovertheyears

-Possessingalargeinvestmentcapital,theproductionprocesssystemisalwaysimprovedandthecompanyalsofocusesonbuildinginfrastructure

-TherearemanyeffectivecommunicationstrategieswhensponsoringTVshowsandsomerealityprograms,especiallypromotingstronginvestmentinadvertising

-Multi-industrycorporation:Lotteisamulti-industrycorporation,withbusinessactivitiesspanningfromretail,hotel,andentertainmenttofood.ThishelpsLottehavefinancialresourcesandsolidmanagementexperience,supportingthecompany'sfoodbusiness

-Widedistributionnetwork:Lottehasawidedistributionnetworkaroundtheworld,includingtheKoreandomesticmarketandinternationalmarkets.ThishelpsLotteeasilyreachcustomersandboostsales

-Diverseproducts:Lotteprovidesadiverseproductportfolio,includingconfectionery,snacks,cannedfoods,drinks, ThishelpsLottemeettheneedsofmanycustomers.differentgoods

-EffectiveCSRactivities:LottehasaneffectiveCSR

outstandingasLotte's

Weaknesses -InVietnam,Oriononly

hastwomanufacturingplantsinBinhDuongandBacNinh,whichcannotmeetthevolumeofmass-producedgoodsfordistributioninmanyprovinces

-Theorganizationalstructureandoperationofthedistributionchannelsystemstillhasmanylimitations.Inparticular,thecompanypayslittleattentiontothemarketinremoteprovinceswitharelativelysmallnumberofdistributionagentscomparedtocompetitors

-Lessadvertisingandpromotion

-Thetextureoftheproductisquitedry

Opportunities -TheVietnamesemarket

hasabundant,cheapandexperiencedhumanresourcesinproductionandprocessingthatneeds

-Theboominthemarket,especiallyinthefastfoodsegment,makeshigh-incomeconsumersmorelikelytogoglobal

-Weakandsmalldomesticcompetitorsdonothavestrongpromotionalstrategies.OriontakesadvantageofitsresourcestoadvertiseandpromoteproductandbrandimagesonSocialMedia,television,newspapers,etc.,whichistrustedandsupportedbyalargenumberofconsumers

-Increasedconsumerincomeleadstoincreasedmarketdemand,creatingpotentialopportunitiesforOriontoincreasesales

-Developmentofscienceandtechnologycreatesconditionsforapplyingandimprovingscienceandtechnologyinproductionactivitiestoincreaseproductivityandproductqualitytomeettheincreasingdemandsofthemarket

-Intheruralmarket,confectioneryconsumptionisstillverylimited,promisingmanygrowthopportunitiesinthefuture

brandsthanregulareateries

-Theissueoffoodhygieneandsafetyisincreasingconcernbyconsumers.-Consumerincometendstoincrease

-Scienceandtechnologydevelopmenthelpsimproveproductquality

Challenges -Pricecompetition: -Increasedcompetition:

-Changingneeds:Changingconsumerpreferencesanddemandsforhealthier,organic,vegan,gluten-free,orsugar-freechocolateproducts.Lottemayneedtoinvestmoreinresearchanddevelopment,innovationandqualityassurancetomeettheseexpectationsanddifferentiateitselffromothercompetitors.-Compliancewiththelaw:Legalandenvironmentalissuesrelatedtosourcing,manufacturing,packaginganddistributionofchocolateproducts.Lottemayfacechallengesincomplyingwithvariouslawsandstandardsindifferentcountries,ensuringethicalandsustainablepracticesthroughoutitssupplychain,andreducingemissions.

-Culturalbarriers:

LanguageandculturaldifferencesbetweenJapanandVietnammaycausebarriersinoperatingOrion'soperationsinnewmarkets

carbonemissionsandwastegeneration

Withdifferentrequirementsandinformationsources,thenextstepwillbetoevaluateandselectoptionsfortheproduct.Today,consumerswillrelyonbasiccharacteristicssuchasprice,quality,andhowtopreservecakes

➢ Price:Chocopiecakeisacakewithirresistibledeliciousnessbutthepriceforeachproductonlyrangesfrom4,500VND/piece-5,500VND/piece,54,000VND/boxof12pieces-66,000VND/boxof12pieces

➢ Quality:Chocopiecakeislovedbymanypeoplethankstoitscocoacrust,coveredwithalayerofsweetchocolate,andinthemiddleisalayerof

- Customerattitude:Chocopieisconsideredaproductwithgoodquality,delicioustasteandreasonableprice.Therefore,customersoftenhaveapositiveattitudetowardsthisproduct

- Location:Chocopieiswidelysoldatgrocerystores,supermarkets,conveniencestores,etc.CustomersoftenbuyChocopieondemandorwhentheyseetheproductonsale.

- Customersatisfaction:AccordingtoaNielsensurvey,80%ofcustomersaresatisfiedwithChocopieproducts.Theyappreciatethedelicioustaste,goodqualityandreasonablepriceoftheproduct.(Chocopie's''love''forVietnameseconsumers,10yearswithoutpriceincrease)

V Segmentation, Targeting And Positioning

5.1 Segmentation

Consumer Children and

adolescents

Young Adults Adults

Demographic Age 6 - 22 Age 23 - 35 Age above 35

Gender: Male, FemaleIncome: Low Income: Average

Occupation:having stable job

Geography City and countryside

Mentality Social class:

middle tohigh-class

Social class:

middle tohigh-class

Social class:middle tohigh-classLifestyle:

youthful,dynamic,creative, eager tolearn

Lifestyle:

independent,adaptable,modern,responsible andconcerned aboutthe environmentand health

Lifestyle: manyexperiences,likes to be innature, spends alot of time withfamily

Personality:

cheerful, lots ofenergy

Personality:

optimistic, active,passionate

Personality:tolerant,understanding,rationalBuying occasion Snacks Snacks, gifts Holidays,

offerings, giftsBenefits Attractive

packaging, goodquality, cheapprice

Reasonableprice, good forhealth, beautifulpackaging

Affordable price,eye-catchingpackaging

Behavior Loyalty level:

Low

Loyalty level:

Average

Loyalty level:HighFrequency of

use: high

Frequency ofuse: average

Frequency ofuse: low

(4-7 times/week) (4-7

times/month)

(1-3times/month)

5.2 Targeting:

Thetargetistoreachyoungpeopleaged23-35yearsold

Companiesoftenfocusonthecustomerstheybelievewillbemostlikelytobuytheirproducts.Theagegroupof23-35oftenhasastableincomeorhasenoughincometospendmoneyonproductslikeChocopie

Averagebrandloyaltyhelpsmaintaincustomerrelationships

Inthissegment,theyoftenhaveahighneedforgratitudeandfamilylove.Buyinggiftsforfamilyandfriendsisverysuitableforthelove-giving

campaign,asitwillstronglyimpacttheirpsychology.Buyerswillthen

contributetothemostsuccessfulcampaign

The23-35agegrouptypicallyusesalotofonlineandsocialmedia,whichcanmakereachingthemthroughthesechannelseffective

5.3 Positioning

Brandpositioningattributes:

● Productclassification:Thenewproductwillchangeitspackagingformtobecomeespeciallynovel,whichwillhelpattractpotentialcustomersaged23-35tobuymoreproductstogiveasgiftstorelatives

● Price:Orioncandecidetheproductpricetopositionitinwhichmarketsegment.Chocopieispricedappropriately,itcantargetabroadersegmentofthemarket

● Qualityandvalue:Orioncanfocusonprovidinghighqualityandgoodvaluetocustomers.ThiscanpositionChocopieproductsinthe

high-qualityconfectionerymarketsegment

● Uniquecharacteristics:OrioncanidentifyChocopie'sunique

characteristicsforproductpositioning.Auniquemediacampaignthattapsintothefamilylovementalitywillattractthisagegrouptobuyproductstogiveasgiftstotheirfamilies

● Marketingstrategy:Orioncanusemarketingstrategiessuchas

advertising,socialmedia,orcooperationwithpartnerstopositionChocopieproductsandcreateawarenessinthemarket.The23-35age