final exam assignment miaha s international marketing plan

2.3: Juice Beverage Market Size in China: According to data from China Business Industry Research Institute, the data shows that in recent years, the market size of China's juice industr

TABLE OF CONTENTS

1 Executive Summary? oo cố cố ẽẽ 4

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4.4: Social and Cultural an ố 15

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6 Target Market Description: .0.00 occ ố ẽ 22

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7 International marketing goals and ObJe€CfIV€S: - á-< k1 12 HH H1 H1 HH tê 26 LEO ao n6 cố 26

8.1 Product strategies nh ố ố 26

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8.4 Promotion StateQies? oe 32

9 Evaluation, Measurement and COnTOÌL - <6 S22 611%231 111461 31841 11823 11851 351116255; 33 li on 33

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1 Executive Summary:

The China market is regarded as one of the most promising for both local and foreign enterprises China is the 1th greatest trade power in the world, According to data from the General Administration of Customs of China (GAC) released on July 13, From January to June in 2022, import and export turnover increased by 9.4% compared to

2021 to 19.8 trillion yuan (about 2.94 trillion USD) In particular, exports increased

by 13.2% compared to 2021 to 11.14 trillion yuan, while imports increased by 4.8%

to 8.66 trillion yuan Besides, When it comes to drinks, consumers are no longer satisfied with making the thirst, but pursuing a better taste experience and higher

health needs The drinks with common flavor such as carbonated water, tea water and

other types are "immediately removed" As consumers are increasingly interested in the health of drinks, botanical protein and fruit juice and vegetables also occupy a foothold in the market Canned sugarcane juice of MIAHA is one of the most promising and rapidly expanding goods in China, with several rival brands Our team will investigate and develop MIAHA of TTC Co., Ltd in the China market over the next 5 years under the theme "INTERNATIONAL MARKETING PLAN FOR MIAHA IN CHINA” At the same time, it addresses concerns concerning the product's market potential, product supply, competition, the political climate, and Korea's advantageous qualities for developing tea goods 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 Internal Environment, Analysis of the External Environment, Target market description, International Marketing Goals and Objectives, Marketing Program, Evaluation, Measurement and Control

2 Introduction:

2.1: Company overview:

Thanh Thanh Cong Co., Ltd (abbreviated: TTC Sugar) is the leading producer of cane sugar in Vietnam The company currently accounts for about 30% of the sugarcane market share in our country Currently, TTC is the leading sugarcane company in the country in terms of vision and product portfolio with an area of nearly

64,000 hectares in 3 countries Vietnam, Laos and Cambodia

The company was founded in 1995 In 2017, the company officially changed its name

to Thanh Thanh Cong — Bien Hoa Joint Stock Company The head office of the company is located in Tay Ninh, Vietnam

TTC Sugar Company specializes in sugar cultivation and production with a material area of 12,000 hectares and plans to expand to 25,000 hectares With a large raw material area, the company has gradually conquered consumers and affirmed its

position in the market Over 23 years of construction and development, the Company always aims at ‘Sustainable development with Vietnam sugarcane’ TTC sugar's products always receive the love of consumers because of their quality and reasonable price Popular products of Thanh Thanh Cong - Bien Hoa Sugar Co., Ltd include: Premium Refined Sugar, High Grade White Sugar, Molasses Products, TTC Miaqua Bottled Water, Bagasse

“+ Mission: Creating modern, sustainable agriculture and bringing energy - nutrition of natural origin, non-GMO

“+ Visson: Become a leading provider of agricultural product solutions with the leading sustainable product

“+ Core values: Effective, creative, integrity, spirit of mastery, pioneering

2.2: About MIAHA:

Miaha - Vietnam's first canned sugarcane juice was born from the aspiration of TTC sugar to bring this "national" beverage to consumers in a more fashionable, convenient form and thoroughly solve the problem of "clean sugarcane juice" With the current trend of caring about health, people who love sugarcane juice will hesitate Therefore, curbside sugarcane juice is no longer the most optimal beverage choice Seeing this great potential, TTC sugar has invested in researching and deploying the most advanced technology line to completely sterilize freshly pressed sugarcane juice and canning, allowing to "pack" 100% of the essence from nature With modern production technology, Sugarcane juice retains all flavors and minerals and VitaminC helps antioxidants and promotes health for the body Sugarcane will be widely distributed in 3 flavors: Sugarcane clogged, peach sugarcane and apple cane 2.3: Juice Beverage Market Size in China:

According to data from China Business Industry Research Institute, the data shows that in recent years, the market size of China's juice industry is comparable relatively

stable, increasing from RMB 115.33 billion in 2016 to RMB 127.20 billion in 2020,

with an average compound annual growth rate of 2.5% With deeper penetration into the juice beverage market, the China Business Industry Research Institute predicts that the market size of China's juice beverage industry will reach 137.58 billion people RMB by 2022

2.4: Competitive background of fruit beverage market

Currently, the competition in China's fruit juice beverage market is relatively fierce Figures from the China Business Industry Research Institute show that the market share of the leading enterprises in China's beverage industry exceeds 10%, and the top three enterprises in the industry are Coca-Cola (China) , Weiquan Foods and

Huiyuan Juice accounted for 14.6%, 11.6%, respectively , and 11.0% In addition,

Master Kong, Uni-President, "GuoBinFun", and Nongfu Spring are also behind, accounting for 9.8%, 9.2%, 8.5% and 8% respectively

Fruit beverage market share in China 2022

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Pic 1: Source China Business Intelligence Network (www.askici.com) The latest data shows that the top 10 fruit beverage brands in my country are Minute Maid, Nongfu Spring, Weiquan Daily C, Uni-President, Tropicana, Master Kong,

Vita Coco, Dole, Nongfu Orchard, SUNQUICK New In which, Minute Maid ranked

first with a brand index score of 9.9; second, Nongfu Spring and Weiquan Daily C have a brand index of 9.8 and 9.5, ranking second and third respectively

China's fruit beverage brand index 2022

= China's fruit beverage brand index 2022

Pic 2: Source China Business Intelligence Network (www.askici.com) 2.5: Competitors:

2.5.1; Uni-President

Uni-President Enterprise was established in Tainan, Taiwan in 1967 After many years, Uni -President has developed into a comprehensive industry group in the mainland mainly focusing on instant noodles, beverages, dairy products, cakes, soy sauce and other products The fruit juice drink was awarded the title of "China Brand", and the Uni-Present brand was recognized as "China Famous Brand" Uni- President Enterprise owns fruit beverage brands and products such as Fresh Orange, Uni-President Fresh Orange, Uni-President Kumquat Lemon, Uni-Pie Rock Sugar Sydney and Fruit Duo

2.5.2; Nongfu Spring

Nongfu Spring was established in 1996 and the company is headquartered in Hangzhou, Zhejiang The company's main business includes packaged beverage products, tea-based beverage products, functional beverage products, fruit beverage products and other products Nongfu Spring holds a 25% market share in China's drinking water industry, ranking in the top three of the world's top drinking water markets Its juice products mainly include Nongfu Orchard, water-soluble C100, 17.5° and Nongfu Spring NFC juice line 100% non-concentrated juice

2.5.3 Master Kong

Master Kong is mainly engaged in the production and sale of instant noodles, beverages and instant foods The company started producing instant noodles in 1992,

and expanded its business into instant food and beverage since 1996; In March 2012, the company further expanded its beverage business, completed a strategic alliance with PepsiCo's beverage business in China, and began to become the sole responsible PepsiCo's manufacturing and filling, packaging, sale and distribution of non- alcoholic beverages in China In 2020, Master Kong's overall juice market share is 17.3%, ranking second in the market The company mainly owns beverage brands and products such as Master Kong fruit juice IP brand "Juice Master", Qingyang Guohui, Mango Cheese, 100% Tropicana and Guobinfen

in the world for "Minute Maid" This is the first product of Coca-Cola's "Minute

Maid" brand to be launched in China, is one of the series brands under the Coca-Cola

Company and one of the largest juice brands world by sales Currently, it has been distributed in more than 100 countries

2.5.5: Famous House:

Founded in 1982, has extensive professional experience and has launched a variety

of entertaining drinks with unique local characteristics , Mainland China and Global China region, becoming an international brand with global marketing capabilities Adhering to the concept of ‘safety and hygiene, pure quality’, in line with the integrity and pragmatism of the business, from the selection of raw materials to quality inspection, Famous house ensure that every operating process follows the high standards of strict quality control, in accordance with the principles of hygiene and safety., which have been certified by the government and international standards For

a long time, the Famous House has always focused on quality and taste, has long focused on international vision and grasping market trends, just to create a popular

entertainment drink, closer to the tastes and needs of consumers

+ Vietnam has favorable natural

conditions for development for

sugarcane production

« Affordable and reasonable price for

customers

- Fullingredients 100% natural

- Being the first enterprise to produce

canned sugarcane juice in Vietnam

« Modern sterilization technology

production line

+ The company has a lot of

experience in exporting to foreign

countries

« Brand awareness is not high Vietnamese people are used to sugarcane juice sold on the roadside

Opportunities Threats

« With the current trend of health

concerns, people who love sugar

cane juice have to hesitate, no

matter how much they love

sugarcane juice Sugarcane juice is

no longer the most optimal

beverage choice

« High demand Chinese market for

healthy fruit drinks

+ Convenience goods are becoming

more and more popular among

Vietnamese soft drinks in China

have no place in China

Unusual weather, unpredictable,

difficult to supply raw materials

(Source: https://danso.org/trung-quoc/)China's population will increase on average 11,658 people per day in 2022 Based on the current population analysis in China, it

is predicted that the demand for consumer fruits is beneficial to health in general and the country Fruit in particular is still constantly increasing in the market of juice has

a great chance of growing

4.2: Polictics & Law:

Standing Committee of the National People’s Congress: the permanent working apparatus of the National People’s Congress, headed by the Chief Commissioner

State Council (synonymous with the constitution as the "Central People’s Government"): executive body, equivalent to the Cabinet, headed by the Prime Minister

The Prime Minister is the head of the State Council and manages ministries and ministerial-level agencies

26 ministries, 2 ministerial-level agencies, 13 affiliated organizations and 2 offices under the State Council; at the head of each Ministry is the Minister Central Military Commission: military branch, headed by the Chairman and commander-in-chief of the national armed forces including the People's Liberation Army (PLA), People's Armed Police (PAP) and Militia

Supreme People’s Court: judiciary, headed by the Chief Justice

Supreme People’s Procuracy: prosecutorial body, headed by the Director

o State Supervisory Commission: branch that monitors and investigates corruption in other agencies, headed by the Chairman

The Legal Power of the Communist Party is guaranteed by the Constitution and its position as the supreme political body in the PRC is exercised through comprehensive control over the state, military and media

1982, China's People's Congress recognized a new constitution that emphasized the rule of law under which any party leader who came to power was theoretically responsible

Since efforts to establish a legal system began in 1979, more than 300 laws and regulations, mostly in economic sectors, have been enacted The use of mediation committees — citizens’ notice groups that resolve about 90 percent of China's civil disputes and some small criminal cases free of charge to parties — is one of the

creative tools There are more than 800,000 such committees in both rural and urban

areas

Legal reform became a priority for the government in the 1990s The law was designed to modernize and professionalize the nation's lawyers, judges, and enacted prisons

In 1994 the Administrative Procedure Law allowed citizens to sue officials for abuse

of power or dishonesty In addition, criminal laws and regulations relating to criminal procedure were amended to introduce important reforms The criminal law abolishes

"counterrevolutionary” crimes, although many people are still incarcerated for such crimes Criminal procedure reform also encourages the establishment of a more

transparent vetting process

China's constitution and laws provide basic human rights, including demands for fairness, but these are often overlooked in practice In addition to other judicial reforms, the Constitution was amended in 2004 to include both the protection of

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individual rights and legal private property rights, but it is unclear how these provisions are implemented

Since this amendment, there have been new publications in bankruptcy law and antitrust law, and amendments to corporate law and labor law Although the new criminal and civil law adds protections for citizens, previously debated political reforms, including extending elections to the town beyond the current testing facility, have yet to be implemented

> Regulatory environment

Although China's economy has expanded rapidly, the regulatory environment has yet

to keep pace Since Deng Xiaoping's open market reforms, the number of new businesses has grown rapidly beyond the government's ability to regulate This has created a situation that businesses are facing including increasing competition and neglect of the poor, willing to take drastic measures to increase profits, often at the expense of consumer safety

* China and some laws on opening up to foreign direct investment (FDI)

In December 1978, the XI Third Plenum of the Communist Party of China marked a change in foreign policy, implementing an open-door policy with foreign countries

On January 10, 2002, China officially became a member of the World Trade Organization (WTO) Subsequently, China has made adjustments and adjustments accordingly in attracting FDI

China always attaches importance to developing policies to attract FDI, actively amending and supplementing relevant laws in order to attract and effectively use this capital Between 1979 and 1986, China promulgated three basic laws related to FDI: the Law on Joint Venture between Foreign Investors and China; The Law on Joint Venture in Business Cooperation Contracts between Foreign Investors and China; Law on Enterprises with 100% foreign capital To make the implementation of the law more uniform and effective, China agreed on the three laws into a common investment law known as the Law on FDI Enterprises in April 1986 After many

revisions and additions, on March 15, 2019, the XIII People's Political Consultative

Conference of China passed the Law on Foreign Investment of the People's Republic

of China replacing the above three laws After the new law takes effect on January 1,

2020, the Foreign Investment Law will be the basic norm in open foreign affairs, protecting legitimate interests, attracting, promoting and protecting Chinese foreign investment Therefore, China has spent more than 40 years attracting and using FDI and accumulating many successful experiences

> Fiscal & Monetary Policy:

China's Politburo, the country’s top decision-making body, said the country would continue to implement proactive fiscal policy and prudent monetary policy in 2022

As a result, China will keep economic activities within a reasonable range by 2022 Especially given that the asset downturn is expected to continue into the first half of this year, with the recent spread of the Omicron variant posing a new challenge

* China's social security system

China's social security system dates back to 1951 with the promulgation of the Labor Insurance Regulation

In the early period from 1951-1978, the social insurance system was operated during the period of central planning (without unemployment insurance) In rural China built

a basic health system to care for 90% of the rural population at that time

In the following period from 1978 to 2002, along with the process of opening up reforms and developing the market economy, China developed social insurance programs based on employment and contribution Unemployment, maternity and work accident insurance schemes began to be applied in 1986, 1995 and 1996 respectively In 1998 and 1999, respectively, China adopted nationwide pension and basic health msurance

The third period is a period of rapid expansion of coverage from 2003 to the present China opts for a multi-tiered, broad-coverage, moderate and sustainable beneficiary model, aiming to cover the entire population by 2020, with a focus on the pension system, health insurance and minimum income support system

Throughout the development process, China's current social security model is based

on the main pillars of social insurance (retirement, health, unemployment, maternity and work accidents), assistance and social welfare

4.2.2: Laws:

China bans the use of food additives in beverage processing

The Food and Drug Administration of China (SDA) on 04/08 issued a draft regulation banning the use of food additives in the processing of beverages made from fruits, vegetables and cereals

The draft regulations prohibit the labeling of fresh juices on beverages made from refined flour; it is forbidden to use withered, ripe or wormed vegetables for the preparation of beverages; Fresh juice beverages must be stored in sealed bottles and used within 2 hours after production

The regulation also prohibits beverage factories from recruiting workers with infectious and other dangerous diseases because they could affect food safety

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procedures Workers must wear masks and disinfect their hands before preparing drinks

On the same day, China's Ministry of Health announced plans to step up its food safety campaign, asking supervisory agencies to step up inspections to prevent the use of additives and non-food ingredients in food and beverage processing Labeling requirements for imported beverages

According to Article 66 of the Chinese Food Safety Law, imported food bags and packages must have Chinese labels and Chinese manuals Labels and instructions must comply with the provisions of this and other relevant laws and administrative regulations of China and the requirements of national standards for food safety, and must indicate the origin of the food and the names, addresses and contact information

of domestic dealers Prepackaged foods that do not have labels or instructions in Chinese or if the labels and instructions do not conform to the provisions of this article will not be imported

At the same time, China has also published GB 7718-2011 "National Food Safety Standard on Prepackaged Food Labeling", GB 10344-2005 "General Rules for Labeling Prepackaged Beverages and Alcohol", and GB 10789-2007 "General Rules for Beverages" These labeling standards are mandatory standards that companies must adhere to

Enhanced monitoring and management of fruit and vegetable juices

Do not use spoiled fruits and ingredients such as expired fruits and syrups for processing and preparing beverages such as milk tea, fruit juices, vegetables The use

of "Sugar-free, low-fat", "fresh milk, fresh fruit" and other content in product

advertising must be consistent with the actual situation Complaints and reports should be requested by the operator for immediate correction It is necessary to promptly update their list of illegal and legal operators

4.3: Geography:

For more than a decade, the yield per unit of China's sugarcane production has fluctuated around 4.2 tons, in recent years due to rising production costs, the development of the sugarcane industry is not competitive enough It is understood that sugarcane cultivation in China basically uses sugarcane with few varieties, this way of growing not only spreads pathogens but also leads to a decrease in yield and sugar signatures, and it is difficult to unify the supply of varieties, which can become

a bottleneck limiting the development of the sugar industry

Sugarcane is native to India and is now widely cultivated in tropical and subtropical regions The country with the largest sugarcane growing area is Brazil, followed by

India and China ranked 3rd Countries with larger planted areas include Cuba,

Thailand, Mexico, Australia, and the United States China's main sugarcane-

producing regions are mainly distributed in tropical and subtropical regions south of latitude 24°N, including 12 southern provinces such as Guangdong, Taiwan,

Guangxi, Fujian, Sichuan, Yunnan, Jiangxi, Guizhou, Hunan, Zhejiang, Hubei, and

Hainan., Autonomous Region Since the mid-1980s, China's sugar-producing regions have rapidly shifted to western regions such as Guangxi and Yunnan By 2018, sugar production in Guangxi and Yunnan provinces accounted for 83% of the country's total output (excluding Taiwan province) With the development of production technology, there has also been scattered greenhouse cultivation in the central plains

of mainland China (such as Henan, Shandong, Hebei and others)

The biggest threat to sugarcane is disease on sugarcane Once the disease occurs, even with the use of preventive chemicals, the effect is not positive, because the pathogen enters the tissue, the sugarcane first undergoes pathological changes in physiology, organization and morphology, then various symptoms appear, and most fungicides are impenetrable Sugarcane tissue works inside Therefore, the prevention and control of diseases on sugarcane should comply with the principle of "comprehensive prevention and control", in order to eliminate all factors beneficial to the growth, development, reproduction, transmission and disease of pathogens, using biological and physical measures, chemistry and mechanics to prevent epidemics in order to control to the maximum extent the disease on sugarcane

4.4: Social and Cultural:

4.4.1 Social environment:

Innova 2022 surveyed the factors that consumers consider food and beverages over the past 12 months 49% of them have the importance of food safety, 44% of respondents pay attention to health factors, 42% of respondents see advantages of nutritional components Consumers no longer just meet the general needs of ‘healthy’ and have clearer functional needs When investigating the categories of Chinese consumers are most anticipated in terms of food and beverages

According to sohu 2021, Gen Z not only tends to use a pure juice but also loves to combine many fruits together, firstly to increase nutrients for that drink to suit the needs of each user, secondly, the combination of flavors will create a unique new flavor, attracting consumers to try it and lead to the decision whether to love the product or not

Sugarcane juice is clearly a drink that meets this criterion when pressed directly from sugarcane, does not need any flavoring additives but still possesses a cool sweet taste, containing a series of beneficial nutrients for the body However, sugarcane juice will

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be very susceptible to microbiological contamination when left under normal conditions, leading to many inadequacies when enjoying At small shops, due to the nature of the business model, the press often does not ensure regular cleaning, sugarcane after scraping off the shell is often piled under a damp background, or is picked up by flies, so it is easy to create conditions for bacteria to enter

4.4.2 Cultural environment

According to Baidu, through the development of the ages, China processes sugarcane into sugar for use, they use sugarcane to make sugar mainly China is a major producer of sugarcane, sugarcane is the main raw material for sugar production, in the process of producing sucrose sugar from sugarcane also needs to go through the process of clarification The efficiency of the sugarcane juice filtering process is the most important factor affecting the yield and quality of cane sugar products, and the consumption of the filtering process also accounts for a large proportion of the entire sugar production process, so sugarcane Juice filtration is always the focus of the sugar industry, the focus is also on the difficulty of the sugar production process Ancient Chinese medicine also regarded sugarcane as a ‘useful’ medicine Chinese medicine claims that sugarcane enters the meridians of the lungs and stomach, has a special effect on clearing heat, promoting physical, lowering air, drying moisture, nourishing the lungs, and stomach gums

1978 that helped China launch a prolonged boom of expansion that continues to this day

-> Because China's rapidly rising income levels and massive rural-to-urban migration have created a large number of sophisticated consumers in developed cities such as Beijing, Guangzhou and Shanghai, until the growing middle class in lesser known inland cities In addition, foreign enterprises are also encouraged to invest in key areas such as advanced manufacturing, energy saving, environmental protection and modern services Strict regulations on energy saving and environmental protection also create opportunities for businesses

¢« Income Distributor:

According to the annual report released by the World Inequality Laboratory last month, 50% of adults in China earn an average of about 25,520 yuan ($4,000) per year, while the top 10% of the population earns an average of 14 times as much at 370,210 yuan This gap is greater in most developed economies

Regarding income disparity, China's Gini coefficient and high-low income ratio are relatively high, but in recent years, due to poverty reduction and other reasons, it has been narrowed China's income Gini coefficient peaked at 0.491 in 2008 and has remained between 0.46-0.47 in recent years The middle-income group has gradually become a “sandwich”, and the income growth rate lags behind the high and low income groups

TRADINGECONOMICS.COM | WORLD BANK

Pic3: GDP per capita of China

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of the world economy Gross domestic product per capita in China was last recorded

at 11188.30 US dollars in 2021 GDP per capita in China is equivalent to 89% of the world average China's economy is forecast to slow down in 2022 After a strong start

in early 2022, the biggest COVID-19 wave in two years disrupted China's growth normalization

+ Consumer spending

Data source: Zhimeng Consulting Agency's "China Consumption Trends Report 2022", targeting consumers aged 15-60 in 15 major cities including Beijing, Shanghai, Guangzhou, etc By 2022, consumers will be more interested in “exploring introspection” Survey shows that studying, conditioning your body, cultivating hobbies, traveling and spending more time with family members will become the top

5 plans in personal life in 2022 Belonging to the country with the world’s second largest economy and high middle income, consumers are constantly searching for truth and pragmatism, and at the same time pursuing a way of consumption that is more suitable for themselves, especially from 2020 to 2021, due to the impact of the epidemic, consumers are also pursuing a more stable, controllable, and reasonable consumption experience and more health protection

TRADINGECONOMICS.COM | NATIONAL BUREAU OF STATISTICS OF CHINA

Pic 5: Inflation rate of China (source: tradingeconomics.com) Against the backdrop of high food prices, China's annual inflation rate rose to 2.7%

in July 2022 from 2.5% in June and compared to a market forecast of 2.9% This is the fastest consumer price increase since July 2020

« Unemployment rate

China's surveyed urban unemployment rate fell to 5.4% in July 2022 from 5.5% in June This is the lowest unemployment rate since January, as the government continues to work to revive the economic recovery by further easing COVID restrictions For this year, the government has set the unemployment rate target at around 5.5% In July, the unemployment rate of the 25-59 years old fell to 4.3% from 4.5% in June, while the unemployment rate of the 16-24 age group increased to 19.9% from 19 .3% of the previous month Meanwhile, the unemployment rate surveyed in

31 major cities and towns fell from 5.8% to 5.6%

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