international marketing final exam assignment marketing entry strategy of simply oil products of calofic company to germany

Since its establishment until now, CALOFIC has continuously promoted product quality, invested in building and íntalled modern machinery and equipment, and automated the production of hi

MINISTRY OF FINANCE

UNIVERSITY OF FINANCE – MARKETING FACULTY OF MARKETING

INTERNATIONAL MARKETING

FINAL EXAM ASSIGNMENT

MARKETING ENTRY STRATEGY OF SIMPLY OIL PRODUCTS OF CALOFIC COMPANY

TO GERMANY

Class Code: 2221702031204 Team’s members names and IDs:

Nguyễn Hồng Ngọc - 2021001654 Phan Ngọc Linh Nhi - 2021006454 Trần Thị Minh Thoa - 2021007962 Nguyễn Mai Khanh - 2021001688 Mai Thị Thu Hương – 2021001770

Phạm Đức Thành Ngọc Anh - 2021006484

TABLE OF CONTENTS

1 EXECUTIVE SUMMARY 1

2 SITUATIONAL ANALYSIS 1

2.1 Industry overview 1

2.1.1 The situation of exporting cooking oil in the world 1

2.1.2 Market demand for cooking oil by region 2

4.2 National business environment 11

4.2.1 Politics and Law 11

4.7 Porter’s Five Forces 21

5 ENTRY MODE SELECTION 23

5.1 Market penetration method 23

8.1.3 International product mix management 29

8.1.4 International product standardization and adaptation 31

8.2 Pricing strategies 33

8.2.1 Pricing objectives 33

8.2.2 Strategies 33

8.3 Distribution strategies: 37

8.3.1 International Marketing Channels: 37

8.3.2 International Marketing Channel Decisions 37

8.3.3 Managing International Distribution Channels 38

8.4 Promotion strategies 42

8.4.1 International Advertising 42

8.4.2 International Sales Promotions 46

8.4.3 International Public Relations 48

9.3 Control: 57 10 LIST OF REFERENCES: 60 11 APPENDIX a 11.1 Financial papers and Expense Budget: a 11.1.1 Financial paper a 11.1.2 Expense Budget a 11.2 Member’s group work assessment b

LIST OF TABLES:

Table 2 1: Table of exported cooking oil products 5

Table 3 1: Model SWOT 8

Table 6 1: Simply 's segmentation 24

Table 6 2: Simply 's targeting 25

Table 8 1: Listed price for retails 33

Table 8 2: Fixed cost within 1 year 34

Table 8 3: Variable cost within 1 year 35

Table 8 4: Pricing policy for intermediaries 35

Table 8 5: Pricing policy for key accounts 36

Table 8 6: Penetration Pricing within the first 6 months 36

Table 8 7: Promotional Pricing 37

Table 8 8: Action plan 49

Table 8 9: Timeline 52

Table 9 1: ROI of CALOFIC 56

Table 11 1: Expense Budget a Table 11 2: Member’s group work assessment b

LIST OF FIGURES:

Figure 2 1: Logo of CALOFIC 3

Figure 4 1: Germany's GDP in the period 2018 - 2021 12

Figure 4 2: German cooking oil imports in the last 10 years 13

Figure 4 3: Languages spoken by the German population 14

Figure 4 4: German cooking oil market share in Europe 16

Figure 4 5: : German cooking oil revenue 16

Figure 4 6: The production of vegetable oil has grown over the years 20

Figure 6 1: Location map of Simply 27

Figure 8 1: Simply’s packaging 29

Figure 8 2: Simply’s labels 30

Figure 8 3: the Price Perceptual Map 34

Figure 8 4: The channel length of Simply 38

Figure 8 5: Logo of Viet Nam Ship Agents and Brokers Association – VISABA 39

Figure 8 6: Entrepreneur Nguyen Thi Trung Hoa, Vietnamese Entrepreneur in Germany 39

Figure 8 7: Daco Logistics Company 41

Figure 8 8: Simply product distribution channel 42

Figure 8 9: Eat Smart magazine in Germany 43

Figure 8 10: Poster of Simply’s products 44

Figure 8 11: Lightbox at the bus stop 45

Figure 8 12: Lightbox along the way 45

Figure 8 13: Vietnamese at Multicultural Festival in Germany 46

Figure 8 14: Website of Calofic 47

Figure 8 15: Asia Sky Tours displays Vietnamese goods in Germany 48

Figure 8 16: Chef Tim Raue 48

Figure 8 17: Interview with Tim Raue 49

Fugure 9 1: Recommend 10l oil can 54 Fugure 9 2: Recommend simply maca oil 55

1 EXECUTIVE SUMMARY

Simply vegetable oil belongs to CALOFIC Co., Ltd (CALOFIC) - a multinational company with extensive experience in exporting to many different countries and territories Currently, the company focuses on developing and perfecting cooking oil products - an indispensable ingredient in every kitchen With the outstanding potential of being a 100% pure seed product manufactured according to European technology, it is the only brand recommended by the Vietnam Heart Association as good for health With the advantages of product characteristics, the factor that helps Simply cooking oil can convince consumers

Our group decided to develop a plan to export Simply vegetable oil to German market Germany - a potential market when the demand for cooking oil is increasing every year, the culinary trend is increasingly diverse Besides, the distribution system is expanded, multi-level, multi-channel modern, opening up many opportunities for Simply to reach customers In addition, Germany is a fastidious market but is willing to open up and accept innovation in quality products

The export plan will be studied to meet export standards to help Simply overcome strict barriers when entering the German market Through the steps of analyzing the company's internal resources, analyzing the target market, building penetration plans, business organization, marketing strategies and finding partners and assessing new business opportunities Simply is a quality product with a potential market like Germany, we will penetrate the market to bring success in the first year

2 SITUATIONAL ANALYSIS 2.1 Industry overview

2.1.1 The situation of exporting cooking oil in the world

The global edible oil market is forecast to reach a CAGR of 3.25% during the forecast period (2020 - 2025) The global edible oil market is driven by strong demand for health-based establishment products, with high consumption of high-

quality cooking oils/oils by health-conscious users on a daily basis the better and the growing demand from different applications

The size of the world's cooking oil supply is shrinking because of the Ukraine conflict Now, this supply is at risk of further scarcity due to the ban on the export of palm oil and raw materials related to palm oil production by Indonesia

Russia-According to Bloomberg, Indonesia now accounts for more than a third of the world's vegetable oil exports, with China and India being two of the top customers Since November 2021, palm oil in Indonesia has become scarce as producers increase exports due to rising prices of this commodity worldwide

The Russia-Ukraine conflict has thrown the sunflower oil trade into chaos while squeezing supplies of other vegetable oils used in food, biofuels and personal care products Weather uncertainties in major cooking oil producers around the world are adding to fears of shortages The drought has reduced the size of soybean harvests in South America, the world's largest supplier of soybeans The lack in Canada has diminished rapeseed production, leaving little available supply

2.1.2 Market demand for cooking oil by region

 Asian market

In Asia - Pacific, China is miserable because of the lack of cooking oil: People wait in long lines to buy goods The main cooking oils are in shortage due to the influence of the weather and the Russia-Ukraine crisis The suspension of Indonesian exports will put a strain on price-sensitive consumers Indonesia is currently the leading oil producer The country's oil accounts for about a third of its total vegetable oil exports

 Europe

Whether the war is big or small, the export of raw materials has stalled, causing Europe to fall into a severe shortage of cooking oil Regardless of which brand produces, the goods are sparse on the shelves of cooking oil at supermarkets This phenomenon appears more and more often as the conflict in Ukraine continues to

drag on They are causing European manufacturers to struggle because of a lack of supplies Including Germany, this is also the reason we should export cooking oil to this potential country

The conflict in Ukraine has shaken the global sunflower oil market, pushing up prices for other vegetable oils War broke out, supply was cut off, and production completely stopped Finding another source is also not easy

 Americas

Europe has also suffered from additional weather uncertainties, adding to fears of shortages The drought has reduced the size of soybean harvests in South America, the world's largest supplier of soybeans The lack in Canada has diminished rapeseed production, leaving little available supply This is also the reason that pushed the price of rapeseed oil futures delivery in early May to the highest level in trading history

2.2 Overview

2.2.1 Company CALOFIC

Figure 2 1: Logo of CALOFIC

 History of formation and development

CALOFIC Company TNHH (CALOFIC) is a joint venture between Vietnam Vegetable Oils Industry Corporation (VOCARIMEX) and Wilmar International Group, Singapore

Founded in 1996 with an initial capital of $22 million and a total investment of $261 million to date, CALOFIC is one of the leading joint venture companies that have laid the foundation for the manufacturing and vegetable oil processing in Vietnam Currently, CALOFIC has 2 production factories located in Quang Ninh province, Ho Chi Minh City Ho Chi Minh City with a total capacity of up to 2,300 tons/day and night, with two representative offices in Hanoi and Ho Chi Minh City In Ho Chi Minh City, the total number of employees nationwide increased to 1,000 people

Since its establishment until now, CALOFIC has continuously promoted product quality, invested in building and íntalled modern machinery and equipment, and automated the production of high-quality cooking oil products to serve customers domestic consumption and export needs

 Business areas:

In addition to consumer products, CALOFIC also offers specialized oils and fats, packaged in a variety of different sizes, for the food processing industries, pharmaceutical and other industries

 Mission: to enhance customer and consumer satisfaction through providing

world-class quality products at optimal costs

 Core values:

- Integrity: Trust - exemplary loyalty, lasting values - Excellence: Continuous efforts, an outstanding success - Passion: Passion for dedication and global progress - Creativity: Creative innovation, reaching for success - Cooperation: Agree to cooperate, and conquer the peak - Safety: Safe and secure work

 Achievement:

Thanks to constant efforts, CALOFIC's products are very popular with customers and recognized by government agencies, ministries and prestigious organizations at home and abroad through many certificates of merit and awards such

as the Third Class Labor Medal awarded by the President; Emulation flag, Certificate of the value of the Prime Minister; Emulation flag, Certificate of Merit from the Ministry of Industry and Trade, Golden Dragon Award, Top 10 prestigious companies in the food and beverage industry in Vietnam and many awards for brands such as Neptune, Simply… such as Top 50 Top Brands Vietnam, Top 20 Vietnamese Gold Products…

- Simply Pure Soybean Oil:

+ Rich in Omega 3-6-9 polyunsaturated fats + Rich in Vitamin E & Natural Phytosterols + Vitamin A Supplement

+ Helps protect heart health - Simply Pure Sunflower Oil:

+ Rich in natural Vitamin E + Rich in unsaturated fats (> 85%) + Helps slow down the aging process + Protect heart health

- Simply Pure Canola Oil:

+ Rich in unsaturated fats (>88%) + Vitamin A Supplement

+ Protect heart health

 Table of exported cooking oil products

Table 2 1: Table of exported cooking oil products

Product Type 1L Type 2L Type 5L Type 400ML

Simply Pure Rice Bran Oil

Simply Pure Soybean Oil

Simply Pure Sunflower Oil

Simply Pure Canola Oil

2.3 Business situation

It is estimated that the annual revenue of the cooking oil market in Vietnam is about VND 30,000 billion, and the growth rate is still considerable because the average consumption is still low That attraction makes domestic and foreign businesses increase investment

According to the Ministry of Industry and Trade, the consumption of cooking oil per capita/year in Vietnam is currently about 9-10 kg, lower than the WHO recommended level of 13.5 kg/year However, this consumption is forecasted to increase to about 18.5-19 kg/person/year by 2025 The situation of domestic enterprises accelerated Currently, the market has nearly 40 enterprises producing and trading cooking oil Palm oil is the main vegetable oil product, accounting for 70%

of the market share, soybean oil for 23%, and other vegetable oils for 7%

3 INTERNAL ENVIRONMENT ANALYSIS (CALOFIC) 3.1 Micro environment

3.1.1 Supplier

CALOFIC selects input materials from rice bran, fresh sunflower seeds, and soybeans of American origin and produces them by modern European refining technology, strictly following international standards on food safety and hygiene: FSSC 22000, HACCP and AIB Therefore, we are committed to bringing global quality standard products to ensure the health of users

CALOFIC continuously invests in building and installing modern machinery and equipment, automating the production of high-quality cooking oil products to serve domestic consumption and export demand CALOFIC offers specialized oils and fats, packaged in various sizes, for food processing, pharmaceutical and other industries

3.1.2 Customer

Consumers tend to choose a clean - green - healthy lifestyle, especially in the concept of cooking and prefer natural products such as ingredients in the kitchen In Q1/2020, 49% of consumers ranked health as a top concern According to a survey by W&S on behaviors and essential factors to be considered when choosing to buy cooking oil in Ho Chi Minh City and Hanoi, in which: No cholesterol (accounting for 74%), Plant origin (accounting for 73.8%), Prestigious brands (70.3%), Vitamin and nutrient supplements (accounting for 51%),…

CALOFIC has changed the consumption habits of "safe, quality" products that make a difference in the cooking oil market CALOFIC launches a product line of 100% pure natural beans: rice bran, soybeans, sunflower, and canola oil Therefore, the brand is loved by both domestic and international consumers when products have been exported to Japan, New Zealand, Korea, China, Mongolia, Laos and Cambodia

- Famous for many familiar cooking oil brands with consumers Neptune, Meizan, Kiddy, Cai Lan, Simply

- Technology production line according to European standards 2 large factories with human resources of 1000 people

- In Vietnam, Simply cooking oil's price is still quite high because the product has European technology and a professional process The price is not attractive to Vietnamese consumers

- Foreign

+ Germany is a newly penetrated market and is initially exploring the market

+ Competitive pressure from German domestic products + Brand promotion campaign but

- Recognized by state agencies, governments, ministries and prestigious organizations at home and abroad, recognized through many certificates of merit

- The company is a pioneer in community-oriented social activities with many contributions

- Simply the Brand of Soybean Oil is the Most Selected To Buy For 10 Consecutive Years

- Simply is proud to be the only cooking oil brand recommended by the Vietnam Heart Association

- The brand is growing, gaining consumers' trust when providing world-class quality products at optimal costs

cannot reach consumers or leave a brand mark in the subconscious of foreign consumers

- The demand for vegetable oil at home and abroad is increasing Vietnamese cooking oil is increasingly popular in the export market

- The German market has witnessed an exhausted supply of cooking oil, an opportunity to develop in this market - The export market is increasingly open for Vietnamese cooking oil in general and vegetable cooking oil in particular

- Many direct competitors, such as Tuong An of Kido Group Joint Stock Company, Marvela of Golden Hope Nha Be, Vocarimex, etc., increase the competitiveness of the domestic market and export

- Export markets set high standards for imported products

- The SPS Agreement causes difficulties with technical barriers (SPS) Food quality, safety and hygiene are

- CALOFIC's production scale is expanding, more likely to meet market demand around the world

increasingly strict

- The export process costs a lot of production, packaging, and transportation,

- Meeting export rules in EVFTA, increasing business costs from commitments on intellectual property, labor, sustainable development and other frequent challenges such as non-tariff measures

4 COUNTRY SELECTED 4.1 Development history

The Federal Republic of Germany is made up of 16 states that border 9 other nations in the center of Europe Each of these states has distinctive cultural traits that highlight the nation's diversity The German economy, which is the biggest and most important economy in Europe and ranks fourth in the world in terms of PPP (Purchasing power parity), is a distinctive feature of Germany

There are 83.865 million people living in Germany, of which 6.17 million are foreigners These immigrants make up 7.7% of the country's population, including roughly 130,000 Vietnamese and 15 million other immigrants who make up 18.9% of the country's population The culture is quite diversified here because there are so many different types of Germans living here

Germany is a highly developed nation with a long and rich history Germany is known for having a strong "reading culture," and it employs many highly skilled and intellectual workers The locals are continually trying, growing, and learning There are frequent book festivals, and the German library is a great place to study and conduct research

4.2 National business environment 4.2.1 Politics and Law

All of Germany's laws pertaining to food, commodities, and feed are based on EU rules and directives All domestic and imported goods must comply with the general laws governing food safety, health protection, handling of labeling requirements, regulation of inspection standards, detention and seizure of suspect foods, and handling of labeling requirements

The German states will be responsible for enforcing these standards, and all foreign enterprises are accountable for any violations of food laws In other words, a food infraction can be permitted in one state but not in another Therefore, in order to avoid engaging in needless legal infractions, international enterprises wishing to enter this market must carefully research the rules and legislation

The EVFTA is a modern free trade agreement with a broad scope and commitments in numerous industries The obligations of the EVFTA have an impact on the trade in goods between Vietnam and Germany From August 1, 2020, when EVFTA takes effect, Germany will remove the majority of import duties on items imported from Vietnam 85.6% of tariff lines are exempt from German import taxes until January 1, 2020 By 2027, 99.2% of tariff lines for products imported from Vietnam will be free of duties

In addition to the EVFTA, there is another agreement on sanitary and phytosanitary measures called the Sanitary and Phytosanitary Agreement (SPS), which contains significant regulations requiring all imported items to be safe for human use This agreement's major goal is to give consumers incredibly safe food items that adhere to the necessary requirements

In accordance with the IPA Agreement's obligations, foreign investors will be treated fairly and capital and assets would be secure In the event of conflict, the Agreement promises to make up any damages to investors' property brought on by the use of excessive force Regarding investment dispute settlement, the IPA Agreement establishes a permanent dispute settlement body on a case-by-case basis

in the investment promotion and protection agreements that Vietnam has signed with EU member states

4.2.2 Economy

Germany, a resource-constrained nation, focuses mostly on developing its services and industries The German economy is strongly export-oriented, and exports have traditionally been a major driver of German economic growth with an export ratio of more than one-third of its GDP

Due to the effects of COVID-19, Germany's GDP in 2021 will only reach $3.69 trillion USD, or 2.7%, significantly less than what the European Union (EU) had predicted

However, the GDP of Germany is expected to increase by 2022 Along with GDP growth, the inflation rate is concerning German Central Bank (Bundesbank) President Joachim Nagel issued a warning that the country's inflation rate "probably" will rise to 10% in the upcoming fall, the latest increase in energy prices due to reduced oil supplies from Russia is likely to push consumer prices even higher

In 2020, Germany's per capita income was 45,724 USD, while in 2021, cooking oil imports into Germany would amount to $5.26 billion USD, according to

Figure 4 1: Germany's GDP in the period 2018 - 2021

the United Nations COMTRADE database The rate also shows that this import demonstrates how steadily German oil demand has grown over time, indicating a potential market for other nations to introduce their cooking oil products

Figure 4 2: German cooking oil imports in the last 10 years

4.2.3 Culture

Data from Eurostat show that the population in Germany between the ages of 15 and 65, or more than 65% of the total population, is the group that most strongly influences consumption trends in the country With a per capita purchasing power of 23,766 euros and an average household income of 4,846 euros in 2020, Germans can afford a variety of goods, from inexpensive items to high-end items and one of their primary consumer goods is food, which accounts for 10.7% of their overall procurement expenditures

Regarding shopping techniques, German consumers select both in-person and online transactions depending on their needs However, as the COVID-19 infection spreads, e-commerce platforms are being utilized more frequently, and as a result, Germany is now one of the continent's major online shopping markets with this form being used by more than 80% of people

Consumption trends: Germans are very picky shoppers, very price-savvy, and interested in environmental issues, particularly as they relate to everyday foods and cooking oils Customers in this potential market will assess edible oil products made

from vegetable origin that are excellent for their health and have an environmentally friendly production process, using up to 30 liters a week

Since they live in a developed nation, they have very high standards for goods and services Therefore, it will enable consumers in this market to feel more comfortable and trust their products when foreign companies have extensive experience in the sector of export

4.2.4 Technology

In Germany, the physical and chemical refining methods are integrated to refine cooking oil on cutting-edge production lines Using PLC and computer operating systems, oil refining systems run continuously, are managed, and are automatically controlled to meet the highest product quality standards and retain the most vitamin A and E content possible, a natural component of oil

4.2.5 Language

Germany has a large immigrant population, thus the languages that are spoken there are also widely used Germany's population is very diverse, with about 2.4% of the population being predominantly German Some people are Turkish, and 6.1% have heritage from Greece, Russia, Italy, Poland, Croatia, and Spain The following information pertains to the languages that the German population uses

Figure 4 3: Languages spoken by the German population

4.3 Market Knowledge

 Trade relations between Vietnam and the Germany

Vietnam and Germany's commerce increased in value by 12.4% in 2021 compared to 2020, reaching 11.22 billion USD, of which 7.28 billion USD worth of commodities were exported from Vietnam to Germany Vietnam uses Germany as its second-largest export market in the EU (after the Netherlands, which accounts for $7.68 billion USD), making it the seventh-largest export market in the world This country accounts for nearly 20% of all items exported to the EU

Out of 144 countries that send goods to the Federal Republic of Germany, Vietnam is listed by Germany as the 24th most important trading partner, and 78th out of 144 countries that import goods from Germany Vietnam is a significant trading partner, notably in the context of the EVFTA Agreement, and is a member of a group of Asian markets with high potential

4.4 Market needs

Nearly 23.9% of Ukraine's oilseed exports in 2021 went to Germany, who also purchased the majority of the country's other oilseed exports (2022, Odessa Journal) Due to the usage of cooking oil for bakery products like bread, cakes, and many other items in the diet, Germany holds the largest market share in the cooking oil business in Europe, according to Data Bridge Market Search (2020) daily

Figure 4 4: German cooking oil market share in Europe

But in recent times, the impact of the conflict between Ukraine and Russia has caused notable changes in the German cooking oil market More specifically, from the start of 2022 till today, each German has only used an average of 2.13 liters of cooking oil

Figure 4 5: : German cooking oil revenue

(Source: Statista (July, 2022)

The cause is a lack of cooking oil supply, which drives up oil prices (on average, to $6.18/litter from $5.86/litter in 2021) and decreases overall cooking oil usage (to an average of $5.86/liter in 2021) According to Statista, 2022's first seven months will see 178.6 million liters, whereas 2021 will see 244.3 million liters

German eateries are having trouble because of rising cooking oil prices, according to Business Insider Popular Cologne bar Gaffel am Dom announced in April that it would discontinue serving french fries owing to a lack of sunflower oil McDonald's Germany will use less sunflower oil in its frying oil mix, according to a company spokesman In the meantime, German retailers have been running out of bottles of sunflower oil for weeks Canola oil is a substitute for oil that is available In North Rhine-Westphalia, pure, organic cold-pressed rapeseed oil is being processed at a mill

Problems stem from the quantity of drivers delivering and stacking edible oil items, as well as from individual oil storage From that, it can be seen that, aside from price-related issues, the cooking oil business may soon recover The market demand has reduced dramatically as a result of the rising price of cooking oil

4.5 Market trends

Germans place a high priority on sustainable consumption, preferring consumer goods that assure worker safety, environmental protection, and health Special seed oils like rice bran oil, soybean oil, sunflower oil, etc are becoming more and more well-liked among German families for gastronomy, family health, and consumption

Because they are a healthy oil, specialty oils are particularly appealing German consumers view it as a healthy substitute for traditional cooking oils because it is low in saturated fat and has additional helpful components like vitamins and minerals The specialized oil market, which commands a premium price, is focused on good quality, though

German consumers are becoming more concerned about the legitimacy of specialty oils, which primarily revolves around two ideas: product composition and provenance German authorities have a relatively low degree of tolerance for food fraud among buyers and consumers They frequently demand that imported goods

possess additional certifications (which are not required by import standards), such as some food safety certificates, social certificates, green labels, biological labels, etc

The statutory import rules of Germany/EU are much more stringent and challenging to comply with than those of many other Vietnamese export markets in terms of food hygiene and safety, technical standards, and other import regulations The penalties for breaking import laws are equally severe This is an important consideration for suppliers because doing so can influence demand and price and help them build Vietnam reputation when choosing to export to Germany

However, Vietnam is one of the few countries in Asia (Japan, Korea, Singapore, ) that has an FTA with the EU, so Vietnamese goods have an advantage over competitors competition from many other countries in the region when enjoying preferential tariffs as well as other advantages from the EVFTA Agreement Moreover, with Vietnam implementing its commitments on labor, environment and sustainable development in the EVFTA, Vietnamese exports can partly avoid risks from the perspective of consumers in Germany

- The decision by Indonesia to halt shipments, which accounts for one-third of all edible oil exports worldwide, will further destabilize emerging markets, and prices for cooking oil may also rise significantly in Western nations -> higher demand

 Related and supporting industries

- Industrial machinery

+ Simply cooking oil is created at the largest Hiep Phuoc facility in Vietnam using cutting-edge technology and an automatic production line system with contemporary equipment and machinery from Germany, Japan, Denmark, the United States, etc

+ In order to guarantee that its goods are always of the highest caliber, CALOFIC always strictly complies with Vietnamese and international laws governing food hygiene and safety as well as the ISO quality management system

- Raw material

In Vietnam, beans are chosen from farms, and sunflower seeds are entirely imported from the US using cutting-edge technology Crude palm oil is refined, bleached, and deodorized in order to get refined palm oil

- Fertilizer industry

At the moment, Vietnam's fertilizer sector is able to supply 85% of the country's fertilizer needs, which helps to boost the output and quality of Simply's seed oils

- Pesticide industry

Increasing the productivity of Simply's seed oil production by assisting farms that supply the company with seeds by preventing damage from pests and illnesses

 Firm strategy, structure, and rivalry

Due to a declining inventory ratio compared to demand, the production of refined vegetable oil has been increasing steadily on the vegetable oil market since 2020 Vietnam produces 1,138 thousand tons of refined oil, 268 thousand tons of crude oil, and exports 50,000 tons of oil total, according to the Ministry of Sector and Trade's Decision approving the growth strategy of the country's vegetable oil industry to 2020 with a vision to 2025

Figure 4 6: The production of vegetable oil has grown over the years

(Source: Foreign Agricultural service/USDA,GAIN (Global Agricultural Information Network) report)

According to research by VietTimes, Calofic accounts for nearly 40% of the market share with famous vegetable oil brands such as Neptune 1:1:1, Simply, Meizan, etc The second is Tuong An with 20%, the third is Kido – Nha Be with 11%

 Factor conditions

It takes a lot of work to choose the input materials for cooking oil because it necessitates numerous steps of critical attention and care These workforces require in-depth knowledge, observational skills, and a focus on oilseed quality

A thorough investment and implementation of scientific and technological advancements in production are required, according to the Department of Crop Production, Ministry of Agriculture and Rural Development, to boost grain output, which in turn will increase the productivity of cooking oil For agricultural production, it is also required to invest in infrastructure, such as transportation, irrigation, and energy, as well as to apply new scientific and technological developments to the production of vegetable oil

 Government

The State encourages businesses to invest in scientific research and use cutting-edge technologies in their manufacturing processes; to buy cutting-edge

technology and equipment from developed nations; and to receive technology transfer from top global corporations

- Organize oilseed crop research and trial planting in a thorough manner to develop high yielding varieties with high-quality products that can compete with those of other nations

- To encourage agricultural output, the State offers businesses a portion of its funds to do research, test planting methods, and improve oilseed material regions Costs associated with scientific and technological research are factored into product costs in businesses

4.7 Porter’s Five Forces

 Bargaining Power of Suppliers: LOW

Simply cooking oil is an export for the CALOFIC Company, hence there is a great demand for transportation services As a result, businesses that offer specialized marine freight services view Simply as a key client They don't put pressure on rates since they want to keep these clients

 Bargaining Power of Buyer: LOW

Germany is a challenging market, but the conflict between Russia and Ukraine is driving up the cost of cooking oil there Despite the price hike, there is still a lack of oil, which has driven many individuals to start eating more cooked foods every day

=> In order to stop nations from stockpiling goods, Germany will need to lower trade restrictions like tariffs and transportation laws

 Threat of New Entrants: LOW

Three major nations that specialize in supplying cooking oil to the majority of nations in the world are Russia, Ukraine, and Indonesia The second-largest producer of palm oil in the world, behind Indonesia, is Malaysia However, given that food inflation in Malaysia is already at a five-year high, the high price of purchasing oilseeds would have an impact on the entire economy of the country

The Malaysian government will need to offer more subsidies to offset the rising prices of products using palm oil The restriction will also constrain domestic supplies, particularly for refineries, and reduce Malaysia's imports of palm oil, which are primarily from its neighbor Indonesia

=> The production of cooking oil in various nations throughout the world is difficult because of the influence of nations that specialize in supplying palm oil Vietnam is the market leader in this sector due to its seed-specific farms and advanced equipment that can manufacture oil in bottles for export

 Threat of Substitute Products: HIGH

The European market offers a wide range of alternative oils in addition to nut oils: olive oil, avocado oil, coconut oil, mustard oil, etc In substitute of seed oil, consumers have a wide range of additional product options Simply cooking oil is under pressure from competition These cooking oils do, however, have a flavor that alters the flavor of the food It is advised against deep-frying using these cooking oils to prevent the loss of nutrients from the food by limiting exposure to high temperatures

 Rivalry Among Existing Competitors: LOW

Simply Cooking Oil competes not only with companies in its own country but also with domestic German cooking oil suppliers However, output of sunflower oil, which is produced to a large extent in Russia and the Ukraine as well as Indonesia, a significant market for Germany's vegetable oil imports, has declined drastically as a result of the conflict To maintain domestic supply, the Indonesian government has increased the expected reduction in crude palm oil and refined palm oil exports that industry participants are required to make starting on March 10, 2022, from 20% to

30%

5 ENTRY MODE SELECTION 5.1 Market penetration method

Calofic chooses an export form for its Simply cooking oil product line Cooking oil is a fast-moving consumer product, so choosing an export form is a perfectly appropriate decision when entering a new market This approach is the simplest and easiest way to meet the needs of the market This method of market entry also offers the advantage of being able to safely access the German market for Calofic

In addition, the EVFTA will be a great driving force for Calofic's exports, helping to diversify the market for the company as well as bring many competitive advantages for export products The commitments on fair treatment in the IPA Agreement also contribute positively to building a transparent legal and investment environment for the export of cooking oil to Germany

5.2 Export form

Use the export form with an overseas representative

Germany is one of the most demanding consumer markets in the world Although there has been a tendency to be more open in consumer culture, in general, German consumers are still quite picky and loyal to familiar brands An estimated 60% of German consumers are willing to buy the same used brand over and over again (Santander Trade, 2021) Therefore, Germans often prefer to use products in the European Union (EU), as well as national and local products

Therefore, we have chosen to export with a representative office in the host country In the early stages of entering the market and reducing the risks involved for Calofic, helping the business to be promoted faster and grow faster This mode enables Calofic to quickly control the response from the target market, more effectively manage marketing activities, and improve the ability to protect trademarks and patents

The intermediaries that Calofic selects:

- Supermarkets: Lidl, Real, Kaufland, Edeka, Rewe and Globus Handelshof - E-commerce platforms: Amazon, eBay

- Restaurants, food chains : Venice Restaurant, Amador Restaurant, Relish

6 TARGET MARKET 6.1 Segmentation

Table 6 1: Simply 's segmentation

Portrait 1 Portrait 2 Portrait 3

Demographic 6 - 17 years old No income

18 - 35 years old 1.520 euros - 3.500 euros/month

36 - over 67 years old

over 3.500 euros/month Psychographic The diet depends

on the caregiver

- Make your own decisions and build a diet even though you don't have much experience

- Modern lifestyle - Tendency to use more fat in meals

- Experienced and knowledgeable about diets, so you can decide and build your own daily diet

- Tendency to use less fat in meals because of awareness of health problems Behavior The type of

cooking oil that provides high vitamins and

- The type of cooking oil is cheaper and convenient

A healthy cooking oil, containing beneficial fats and vitamins and

nutrients - Prioritize the use of cooking oil to increase the attractiveness of the dish

nutrients

6.2 Targeting

Table 6 2: Simply 's targeting

Type of segmentation

Segmentation criteria

Consumer

Occupation housewife, students, officer

Life style - Make your own decisions and build a diet even though you don't have

much experience

- Modern lifestyle

- Tendency to use more fat in meals Another target customer segment is industrial customers including hotels, restaurants, canteens,

- Geographic: Germany (urban and rural) - Demographics:

+ Gender: male, female

+ Occupation: chef, inventory manager + Benefit seeking:

Priority is given to using cooking oil with commensurate price and quality Prioritize the use of cooking oil to increase the attractiveness and quality of the dish

Need a brand of cooking oil with high inventory for long-term cooperation + Loyalty: high

+ User status: Regular users

- Psychographic: Busy lifestyle, often exposed to the cooking environment

6.3 Positioning

Simply, with the statement "Simply-for a healthy heart", we position ourselves in the German market as a brand providing high quality cooking oil products, containing many unsaturated fatty acids and beneficial nutrients for human health body, derived from ingredients completely from nature, ensuring international standards

Compared with competitors in the German market today, we draw the following positioning chart:

Figure 6 1: Location map of Simply

7 OBJECTIVES 7.1 Corporation goal

 Expanding the export market of cooking oil, specifically Calofic's vegetable

oil

 By improving the quality of Calofic's vegetable oil products through modern

technologies, bringing the best and safest products to consumers' health

 Acquire a large number of loyal customers with Calofic products

 Expanding the distribution system of Calofic's cooking oil products in this market

 Expanding Calofic's cooking oil market share in Germany  Enhance the image and brand awareness of Calofic

 In 2023, aim for 6 million views and 1 million interactions on advertising posts

on social networking sites 8 MARKETING STRATEGIES

8.1 Product strategies:

8.1.1 Classifications of products

Simply vegetable cooking oil consists of 4 main exported types: soybean oil, rapeseed oil, rice bran oil, and sunflower oil Cooking oil is a consumer product because it is purchased and used directly by the consumer Therefore, all CALOFIC products are always guaranteed quality and exported periodically In addition, depending on the business situation to be able to meet enough supply, avoiding disruption of the supply chain affecting prices

8.1.2 Product Dimensions

Warranties: Simply invested in building and installing modern machinery and equipment, automating the production of cooking oil products to improve product quality

The image of the particular brand: is a leading enterprise in the field of cooking oils and fats in Vietnam

Company contact information: Information about the business is shown fully and clearly on the website, business inquiries can be contacted by the hotline 24/24

Core product: soybean oil, rapeseed oil, sunflower oil, rice bran oil