Im plan

marketing quốc tế - trường đại học tài chính marketing - kế hoạch chi tiết các bước chi tiết Tham gia vào các sáng kiến toàn cầu: Tham gia vào các sáng kiến và tổ chức quốc tế về trách nhiệm xã hội doanh nghiệp để học hỏi và áp dụng các thông lệ tốt nhất. Chia sẻ kinh nghiệm: Chia sẻ kinh nghiệm và bài học từ các doanh nghiệp khác trong và ngoài nước về việc thực hiện trách nhiệm xã hội.

7952 Tran Minh Thanh 1209

International Marketing (Trường Đại học Tài chính - Marketing)

7952 Tran Minh Thanh 1209

International Marketing (Trường Đại học Tài chính - Marketing)

The evaluation results are agreed and summarized as follows

N.o First and last name Student’s ID Contribution (%)

TABLE OF CONTENT

1 Executive Summary 1

2 Company’s mission statement and a short profile of the company 2

3 Country Selected 2

3.1 Brief discussion of the country’s relevant historical developments 2

3.2 The National Business Environment 3

3.2.1 People 3

3.2.2 Government 4

3.2.3 Geography: 7

3.3 Market and Size Potential 10

3.3.1 Market share in HMR 2021 of Korea's economic 10

4 Entry Mode Selection 23

4.1.Wholly Owned Subsidiary 23

7.2 Pricing strategies 28

7.2.1 Customary markups 28

7.2.2 Types of discounts available 28

7.2.3 Compare these to competitors’ prices 29

7.3 Promotion strategies 30

7.3.1 Media used to reach the target market 30

7.3.2 Sales promotion used 34

7.3.3 Value of personal selling 34

7.3.4 Compare it to competitors’ promotions 35

7.4.5 Typical retail outlets 38

7.4.6 Product sales by middlemen 39

7.4.7 Compare it to competitors’ distribution 39

8 Final Recommendations, Evaluation, Measurement, and Control: 39 LIST OF REFERENCES I APPENDIX III

TABLE OF FIGURES

Figure 2.1: Saigon Food’s logo 2

Figure 3.1: Korean major cities 9

Figure 3.2: Competitors market share in HMR 2021 10

Figure 3.3: Korea's GDP growth from 2010 to 2021 11

Figure 3.4: Korea's GDP per capita growth from 2010 to 2021 12

Figure 3.5: Korea’s inflation from 5/2020 to 5/2021 13

Figure 3.6: Incheon port of Korea 15

Figure 3.7: The statistics on the number of retail systems in Korea 16

Figure 3.8: Advertising on Kakaotalk 17

Figure 3.9: Naver search engine 18

Figure 3.10: CJ CheilJedang HMR stats 19

Figure 3.11: Ottogi HMR statistics 20

Figure 3.12: HMR market share in Korea by 2021 20

Figure 3.13: Chungjungone's position 21

Figure 3.14: homing home page 21

Figure 3.15: Curry Queen home page 22

Figure 3.16: Anjuya website 22

Figure 5.1: Compare the nutrition and convenience of Saigon Food with competitors 25

Figure 7.1: Trio of Saigon Food new product 27

Figure 7.2: Saigon Food Advertising on Kakaotalk 30

Figure 7.3: The crowded streets in Korea 31

Figure 7.4: The area around the school 31

Figure 7.5: Website of e-newspaper Korea.net 32

Figure 7.6: The reality show in Korea - Running Man 33

Figure 7.7: Website of Saigon Food in Korean 34

TABLE OF TALBES

Table 3.1: The latest United Nation Asia-Pacific Trade and Investment Trends Report

provides additional information on FDI in South Korea in Asia-Pacific 5

Table 3.2: Korean tax lines removed for Vietnam in VKFTA 6

Table 5.1: Saigon Food's target market segments in Korea 23

Table 6.1: Saigon Food Marketing objectives in the next 2 years 26

1 Executive Summary

The Korean market is regarded as one of the most promising for both local and foreign enterprises According to Pulse News, Korea is currently the 8th greatest trade power in the world, with a record $1.26 trillion in trade turnover and exports of $64.45 billion in 2021 Korea is well known by everyone because the cuisine in this country is diverse as it converges from other countries’ from East to West In addition, Korean people are highly recognized as productive, hard-working workers, and they have high levels of responsibility Recently, as COVID 19 pandemic and other crises have affected this country's economy, inflation has risen significantly, and people must work overtime to earn enough salary to cover their expenses Also, there is currently a trend in Korea that young people tend to be busier and do not have time to prepare their meals They look to the solutions for their convenient meals, which are HMR products at supermarkets and convenience stores This creates a high demand in Home-meal replacement (HMR) products at reasonable prices Saigon Food is a well-established company in Vietnam that specializes in HMR products Our team will investigate and develop Saigon Food Meal-ready-to- Prepare products of Saigon Food Joint Stock Company in the Korean market over the next 2 years under the theme "INTERNATIONAL MARKETING PLAN FOR SAIGON FOOD READ-TO-PREPARE PRODUCT IN SOUTH KOREA” At the same time, it addresses concerns concerning the product's market potential, product supply, competition, the political climate, and Korea's advantages for developing Meal-ready-to-Prepare of the company and difficulties that may arise while entering the market The study consists of the following main parts: Situational analysis; Analysis of the Marketing Environment, Target Market Description; International Marketing Goals and Objectives, Marketing Program, Evaluation, Measurement, and Control

2 Company’s mission statement and a short profile of the company

Figure 2.1: Saigon Food’s logo

Source: saigonfood.com

Saigon Food Joint Stock Company was established on July 18, 2003 with the initial name of Saigon Seafood Joint Stock Company (SG Fisco) In 2011, SG Fisco officially changed its name to Saigon Food Company Since its establishment until now, Saigon Food has continuously developed, built its brand and become a prestigious company in the field of manufacturing and trading cold seafood and processed foods Saigon Food shows there are no domestic markets throughout the entire system of large supermarkets in major cities in Vietnam The company also exports products to fastidious markets such as Japan and the US.

The company's goal is to become the number one fresh meal manufacturer and supplier in Vietnam To achieve that goal, Saigon Food always strives to provide optimal solutions for women in designing family meals

Saigon Food brings optimal solutions in home meal equipment work, built with the goal of customer satisfaction and by 5 core values: Commitment; Share; Truly love; Improve; Professionally

3 Country Selected

3.1 Brief discussion of the country’s relevant historical developments

- Korea is a country in the southern half of the Korean peninsula between China and Japan Over the past 50 years, Korea has experienced rapid economic change, being named one of the four "golden dragons" of Asia It is a country that attracts tourists with great scenic spots and both the diverse cuisine and the unique culture of Korea

- South Korea has one of the strongest economies in the world: it has the 4th largest GDP in Asia and the 10th largest in the world Koreans have high disposable income, which makes them willing to pay more for convenient and high-quality products - Korea is an interesting but difficult market to penetrate due to a number of factors: there is a close connection between importers and exporters, which means that trust is a key criterion in any business in Korea Furthermore, Korean business culture is notoriously difficult to navigate, as personal recommendations, references, and reliability are all important factors

3.2 The National Business Environment 3.2.1 People

• Language

About language: the official language used is Korean (Korea)

About writing: Koreans use the Korean alphabet, called Hangul This alphabet consists of 51 characters, with 24 single and 27 double characters Learning about the language and script will help Saigon Food come up with suitable packaging for consumers in Korea

• Culture

About lifestyle: Culture is heavily influenced by Chinese and Japanese culture The process of industrialization and urbanization of Korea, especially Seoul, has brought about many changes in the way of life of the Korean people The increasing trend of living single and unmarried among young Koreans and the aging of the population makes consumption demand also change Spending less time on cooking and opting for more prepackaged foods, caterers are also embracing this new wave

About cuisine: In addition to traditional Korean dishes, Vietnamese cuisine is also very popular in this country As commented by Park Hong-in, editor-in-chief of Bar & Dining, said: "Pho is well-liked by Koreans because it appeals to the local taste that favors soup"

The lifestyle and culinary culture of Koreans have created great advantages for Saigon Food's product development in this country

• Age Structure

In 2021, roughly 74,9 percent of the population in South Korea was between the ages of 15 and 64, with those over the age of 64 accounting for approximately 15,1 percent The youngest generation made up an even lower percentage than the elderly, but they were the only group that did not grow in number during the previous decade, owing in part to a drop in births since 2007

3.2.2 Government

● Type

Government of the Republic of Korea, or The Government of South Korea, is the union government of the Republic of Korea Like in many other countries around the world, this body is divided into 3 branches: legislative, executive, and judicial

● Economic freedom

Korea's economic freedom score of 74 ranks 24th in the world and 7th in the region Its total score did not change too much, with the increase in government spending being offset by a decrease in investment and financial freedom

● Legal system/regulations:

The legal system of the nation is based on civil law Every five years, the President is elected by a public vote, and the Prime Minister is selected by the President South Korea is split into nine provinces, with a total of 232 lower-level administrations operating in major cities This makes it easier for businesses as there will be no difficulty in distributing products in different cities in Korea

● Openness to foreign direct investment (FDI)

Table 3.1: The latest United Nation Asia-Pacific Trade and Investment Trends Report provides additional information on FDI in South Korea in Asia-Pacific

FDI Inward Flow (milion USD) 12,138 9,634 9,224

FDI Stock (milion USD) 237,238 241,657 264,920

Number of Greenfield Investments* 136 117 81

Value of Greenfield Investments (milion

USD)

Soucre: Santander Trade

Global foreign direct investment (FDI) flows in the first half of 2021 reached an estimated USD 852 billion, showing stronger than expected rebound momentum, with an increase of 78% of the partial-year growth rate on the previous year, according to UNCTAD’s Investment Trends Monitor released on October, 2021 The global FDI outlook for the full year 2021 has also improved from earlier projections Looking at the growth rate as well as foreign direct investment capital flows, we can see the prestige and potential of Korea when a business decides to invest in it

● Currency: Won

● Financial stability index:

As of November 2021, the financial stability index (FSI) of South Korea reached 5.1 points, showing an increase compared to the previous months The index value reached its highest level in April 2020 and fell thereafter Although the outbreak of the COVID-19 pandemic led to an initial economic downturn in 2020, South Korea's financial system has proven stable and resilient during this period

● VKFTA

In the VKFTA agreement (effective December 20, 2015), Korea gives Vietnam more preferences than in the AKFTA agreement in the fields of goods, services, and investment Combining the two agreements, VKFTA and AKFTA, Korea will remove 11,679 tariff lines for Vietnam (accounting for 95.44% of the tariff and equivalent to 97.22% of the total import turnover from Vietnam to Korea in 2012) Immediately after this agreement comes into effect, Vietnamese and Korean businesses will have the opportunity to exploit the trade and investment incentives that the two countries give each other in the agreement, further strengthening the cooperative relationship between bilateral trade and investment

Saigon Food's products belong to a category that enjoys 0% tax when exported to Korea if the product has a certificate of origin, such as a C/O certificate.

Table 3.2: Korean tax lines removed for Vietnam in VKFTA

N.O Branch Number of tax lines cut

Import turnover from Korea (2012) / Current

import tax of Korea

(Applicable tariff limit)

canned) includes fish

(except squid)

(dry, frozen)

from 27 to 300-400%

Source: Center for WTO and Integration

- E-commerce:

The signing of the free trade agreement between Vietnam and Korea opens a path for cooperation to develop in the field of e-commerce for both countries Small and medium-sized enterprises will receive support from their experience in e-commerce laws and regulations and help overcome barriers to using e-commerce (VKFTA, Chapter 10, Article 10) 10.8, item 2)

- Export business support:

By the end of 2020, Vietnam and Korea will make efforts to increase bilateral trade Specifically, to achieve this goal, Korea will support and improve competitiveness to facilitate Vietnamese enterprises exporting to Korea items such as textiles, footwear, furniture, agricultural and aquatic products, and processed foods

3.2.3 Geography:

● Surface areas

South Korea is a peninsula between the East China Sea and the Sea of Japan The land has a total area of 100,339 km² (38,741 mi²) and a total coastline of 2,413 km (1,499.4 mi) This land area is approximately 96% of the area of Kentucky South Korea is thus the 22nd smallest country in Asia and is ranked 109th in the world With 516 inhabitants per km², it is also one of the most densely populated countries

An exceptionally high proportion of residents (81%) belong to the urban population Almost every fifth resident lives in Seoul The time zone of Vietnam and Korea is only 2 hours apart, very similar to Vietnam in some aspects, besides that Korea has a high population density, has a large urban population rate, which is very convenient for SaiGonFood can offer strategies to build a suitable distribution channel to reach customers quickly

● Major bodies of water:

Korea has four major rivers: the Han River, the Kum River, the Naktong River, and the Somjin River This is one of the outstanding features of Korea that can attract foreign investors because there is a very large waterway transportation route that is convenient for bringing goods and goods to Korea at a low cost

● Major cities

The current population density of Korea in 2022 is 516.30 persons/square kilometer, a decrease of 0.03% compared to 2021 The population size of Korea is about 52 million people, or nearly 10 million people (approximately 10 million people) 20% of the total population lives in the capital, Seoul There are 11 cities in Korea with more than 1 million people and 6 big cities, such as: Busan, Daegu, Daejon, Kwangju, Incheon, Ulsan This is where many of Saigon Foods' target customers gather People's lives are always hectic, so they often prefer to use products or items quickly and conveniently

Figure 3.1: Korean major cities

Source: Enunce 2021

● Climate

The climate is mild, with four distinct seasons

The climate of South Korea is continental, with hot, wet summers and chilly winters Summer temperatures vary from 22°C to 29°C (71°F to 83°F) while winter temperatures range from -7°C to 1°C (19°F to 33°F), with warmer winter temperatures towards the southern shore and lower ones in the interior (Geography of South Korea, 2022)

From the foregoing, it can be seen that Korea is a country with a large population, large and modern cities, and a relatively mild climate with four distinct seasons At the same time, Korea also has 3 sides bordering the sea and is one of the countries with the largest seaports in the world, making the transportation of goods to Korea more convenient and easy for trade by road Therefore, Saigon Food has chosen

Korea as a destination, where it can develop its distribution channel to this country

quickly

3.3 Market and Size Potential

3.3.1 Market share in HMR 2021 of Korea's economic

The HMR industry in Korea is a potential industry with extremely wide market opportunities for businesses to penetrate Saigon Food's main rivals are CJ Group's CJ CheilJedang, Ottogi Co., Ltd 's Ottogi, and Daesang's Chungjungone Besides, there are a number of other small and medium enterprises that are also doing this business in Korea, but the potential of the market is still very large with about 60% Therefore, Saigon Food, with its reputation for food quality and products with special flavors of Vietnam, can completely find a place for itself in the minds of Korean consumers and develop effectively

Figure 3.2: Competitors market share in HMR 2021

3.3.2 Economic Korea

South Korea's economy is under pressure from the fight against the Covid-19 pandemic and strict restrictions on business activities and the movement of people However, the Korean government's recent decision to lift most of the social

distancing measures, after the vast majority of people were fully vaccinated and the infection rate plummeted, raised hopes for spending and higher investment

● GDP:

- In 2021:

Korea's GDP growth in 2021 will reach 4% The Bank of Korea (BOK) on January 25, 2022, announced that Korea's real Gross Domestic Product (GDP) in 2021 had grown by 4% over the previous year Specifically, private consumption and exports, two sectors that once decreased due to the impact of the COVID-19 epidemic, increased by 3.6% and 9.7%, respectively, compared to 2020 Equipment investment and consumption The government continues its uptrend

- In 2022:

Statistics from the Central Bank of Korea (BoK) released on June 8 showed that the growth of the economy in the first quarter of 2022 was slower than previously expected due to investment and weak spending amid concerns about the Covid-19 pandemic Specifically, Korea's gross domestic product (GDP) in the first quarter of 2022 increased by 0.6% compared to the fourth quarter of 2021, slightly down from the 0.7% estimated in April

Figure 3.3: Korea's GDP growth from 2010 to 2021

Source: Bank of Korea 2021

● GDP per capita:

South Korea's Gross Domestic Product (GDP) per Capita reached 34,983.700 USD in December 2021, compared with 31,727.100 USD in December 2020 The South Korea GDP Per Capita data is updated yearly, available from Dec 1953 to Dec 2021, with an average number of 3,555.300 USD The data reached an all-time high of 34,983.700 USD in December 2021 and a record low of 64.090 USD in December 1955

Figure 3.4: Korea's GDP per capita growth from 2010 to 2021

Source: The Bank of Korea 2021

● Inflation:

South Korea's consumer price index (CPI) in June increased 2.4% year-on-year, according to data released today, lower than analysts' forecast for a 2.5% increase CPI in May was 2.6%, the fastest increase since April 2012 Specifically, prices of agricultural, livestock, and fishery products increased by 10.4% and gasoline by 19.9% As inflation nears a 9-year peak, Korea faces pressure to raise interest rates soon

Figure 3.5: Korea’s inflation from 5/2020 to 5/2021

Source: Statistics Korea 2021

● Principal Industries:

In 1980, the manufacturing sector alone provided 23% of the total 34% contribution of industry to Korea's GDP In 1991 and 2014, manufacturing contributed 25% of the 39% share of the industrial sector to GDP, while manufacturing contributed 30% of the 38% contribution of the industrial sector to GDP Manufacturing contributed about 28% of GDP by 2021 Electronics, automobiles, telecommunications, shipbuilding, chemicals, and steel are the most important industries in Korea For the food processing industry, Korea does not focus too much on investment in the development of leading self-manufacturing but combined with strong import activities One of the long-term import partners is Vietnam Therefore, the potential for growth can be seen when Vietnamese companies bring their special foods to the Korean market (Economic of Korea, 2021)

=> South Korea is no exception also affected by Covid-19 but the economy as well

as people's income are still receiving positive signs of recovery recently The focus

on manufacturing and manufacturing industries and the state of inflation show the potential of processed food goods when imported into the country

3.3.3 Infrastructure:

● Road / highway

South Korea's paved national road network is approximately 13,865 kilometers long as of 2019 National highways in Korea are roads that connect major cities, ports, airports, and tourist attractions and are supervised by Korea's Ministry of Land, Infrastructure and Transport (MOLIT) The Korean government plans to invest a total of 28.9 trillion won ($24.4 billion) in road infrastructure by 2020, in the hope that its social projects will not only relieve traffic congestion but also help the country's stagnant economy Thereby creating favorable conditions in the development of convenience stores, large and small supermarkets to distribute Saigon Food's products widely to customers

● Airport

South Korea has 35 operational civilian, military and paramilitary airports Includes 8 international airports: These Korean airports serve domestic and international passengers on all continents (List of airports in Korea, 2021)

● Rail

Depending on the type and number of amenities provided on board, trains can be classified as “KTX Express, KTX-Sancheon, Saemaeul, ITX-Saemaeul, ITX-Cheongchun, Mugungwa and KORAIL cruise ships"

South Korea's two main high-speed KTX railways are known as the Gyeongbu and Honam lines Gyeongbu travels from Seoul to the southeast region with a stop in Busan Honam travels along the western part of the Peninsula to Mokpo Both pass through the central part of the country

● Seaport:

Korea has a total of 60 seaports In which there are 31 commercial seaports (national ports and local ports) and 29 coastal ports (directly managed by the locality) Incheon

port is considered the most important port in the Republic of Korea Most international shipping will pass through this port Currently, Incheon port is doing trade with 187 countries And it has a great influence on the Korean economy and politics Up to now, Incheon port has operated with 8 berths, which can receive 45 ships of 50,000 tons at the same time

Figure 3.6: Incheon port of Korea

Source: The container News 2021

● Distribution channel

In terms of the number of stores in Korea, Hanaro Mart, Lotte Super, and GS Supermarket are the top supermarkets EMART, Home Plus, and COSTCO are the three major hypermarkets Finally, the biggest convenience stores are CU, GS25, and Seven Eleven

Figure 3.7: The statistics on the number of retail systems in Korea

Source: Statista 2021

Korea is a developed country with a modern and developed infrastructure, creating extremely favorable conditions for the activities of importing and distributing products to international partners The early establishment of a base 5G network infrastructure and building infrastructure to collect, accumulate, and use data will be prioritized as national projects The contactless sectors related to health services,

education, and retail food distribution will be strongly promoted

3.3.4 Media & Technology:

● Television:

Terrestrial television is prevalent and popular in Korea There are five terrestrial television stations, each with four television stations: KBS 1TV, KBS 2TV, MBC, EBS, and SBS According to DTV Korea, about 60% of digital TVs are in use

● Mobile phone:

A search result from the Pew Market Research Center (USA) shows that up to 94% of adults in South Korea use smartphones, and this country has become the world's leading country in terms of billions of dollars smartphone usage rate

On mobile phones, Koreans have a habit of using Kakaotalk a lot in their daily lives This is a platform where Saigon Food can effectively advertise

Figure 3.8: Advertising on Kakaotalk

Source: The Interad 2022

● Network users:

2020 is the year of the Internet boom in Korea The report also said that the number of people owning personal computers (laptops) and tablets increased sharply in 2020, as South Korea launched more distance education services to prevent the spread of the epidemic sick

The proportion of people aged 10-19 with a tablet increased by 23.8 percentage points to 35.7% in 2020, while the percentage of people in this age group increased by 14.1 percentage points to 39.8%

Korea ranked third in the world in terms of Internet usage rates in 2003 According to data from the Korean Ministry of Information and Communications, 78.5% of households have a computer, and 93.6% use the Internet (2005) In Korea, many companies use the Internet for services including news, social networking, retail, banking, games, and documentation through Google and Naver

Figure 3.9: Naver search engine

Newspapers: Today, Chosun Ilbo, Dong-A Ilbo, and Jung-Ang Ilbo are the leading conservative newspapers; Hankook Ilbo is just right; and Kyunghyang Shinmun and The Hankyoreh are major freelance newspapers Conservative newspapers are read more often in South Korea The largest business newspapers are Maeil Business Newspaper and Korea Economic Daily Newspaper subscriptions are decreasing in Korea as well as in many other countries

Cable: There are many cable operators in Korea, such as Tbroad, C&M, CMB, and CJ HelloVision

The remarkable development of technology and the communication system, as well as the widespread and popular development of social networks among Korean people of all ages, help in accessing and transmitting advertising information Marketing to customers can take place quickly and smoothly Therefore, a new brand imported from the country also has the potential to effectively penetrate the market

● Ottogi

Ottogi was established in May 1969 and is now a well-known food brand in Korea, producing a variety of HMR items such as Ottogi 3 Minute Meals, Ottogi Mayonnaise, Ottogi Cooked Rice, Jin Ramen, and Ottogi Frozen Pizza Ottogi HMR's sales in 2021 were 378 billion won, or almost 13 percent, according to Statista

Figure 3.11: Ottogi HMR statistics

the ranking of most preferred food brands, with roughly 7% of the HMR market in Korea

Figure 3.13: Chungjungone's position

Source: Kantar, 2022

Chungjungone offers a wide variety of packaged foods that are classified into three primary groups, each of which has distinctive qualities:

flavors and include rice, soups, porridge, stews, meat, eel, lamb, and dumplings

Figure 3.14: homing home page

Source: Chungjungone, 2022

special additions such as cheese, coconut, roasted garlic and onion, as well as the necessary meat and chicken to provide flavor and nutrition to each meal

Figure 3.15: Curry Queen home page

Source: Chungjungone, 2022

that are easy to make at home and pair well with alcoholic beverages, such as fried boneless chicken feet, fried zucchini, and pork odol bone

Figure 3.16: Anjuya website

Source: Chungjungone, 2022

Saigon Food will face off against well-known HMR rivals like CJ CheilJedang, Ottogi, and Chungjungone in the Korean market Saigon Food, however, will boldly compete with the competitors above due to a lower price and the well-maintained quality of traditional Vietnamese dishes like Bun Bo and Pho, which are perfect for Korean consumers' tastes