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
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.
SITUATIONAL ANALYSIS
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 Russia- 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
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
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
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
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.
Overview
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
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
- 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
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 Rice Bran Oil:
+ 100% pure from rice bran + Rich in Gamma Oryzanol & Phytosterols, helping to repel lousy cholesterol and protect heart health
+ Rich in Omega 3-6-9 polyunsaturated fats
+ Rich in Vitamin E & Natural Phytosterols
+ Rich in unsaturated fats (> 85%) + Helps slow down the aging process
Table of exported cooking oil products
Table 2 1: Table of exported cooking oil products
Product Type 1L Type 2L Type 5L Type 400ML
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%.
INTERNAL ENVIRONMENT ANALYSIS (CALOFIC)
Micro environment
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
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.
SWOT
- The leading company in the cooking oils and fats field in Vietnam with more than 24 years of establishment and experience in exporting to countries such as Japan, New Zealand, and
- 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
- Simply is proud to be the only cooking oil brand recommended by the Vietnam
- 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
COUNTRY SELECTED
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.
National business environment
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
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
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
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
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
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.
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
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.
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
Competitive environment
- Cooking oil is a necessary component in daily cooking since it can dissolve the vitamins A, D, E, and K
- Including cooking oil in your diet is another approach to give your body some vital fatty acids, lower your risk of inflammation, promote healthy body growth, and boost your reproductive organs
- 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
+ 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
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
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
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
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%
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
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.
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%.
ENTRY MODE SELECTION
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.
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
- Restaurants, food chains : Venice Restaurant, Amador Restaurant, Relish
TARGET MARKET
Segmentation
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
- 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
Geographic Region Germany (urban and rural)
Benefit sought - Cheap and convenient cooking oil
- Prioritize using cooking oil because of its nutrients and good for health
Life style - Make your own decisions and build a diet even though you don't have much experience
- Tendency to use more fat in meals
Another target customer segment is industrial customers including hotels, restaurants, canteens,
- Geographic: Germany (urban and rural)
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
- Psychographic: Busy lifestyle, often exposed to the cooking environment
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:
OBJECTIVES
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.
Finance objectives
Achieve 20% of total sales by the end of 2023 of Simply Real oils
Reduce 5% of manufacturing and shipping costs
Increase 10% in net profit and sales of the Simply vegetable oil product line by the end of 2023.
Marketing objective
Exported 50 million liters of Calofic's Simply vegetable oil to the German market in 2023
Increase 15% in market share of Calofic's cooking oil products in the German market by 2023
By 2023, Calofic's cooking oil products will have received 70% more attention
In 2023, aim for 6 million views and 1 million interactions on advertising posts on social networking sites.
MARKETING STRATEGIES
Product strategies
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
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
8.1.3 International product mix management a Product line and mix
Product length: soybean oil, rapeseed oil, sunflower oil, rice bran oil
Product width: 4 types: 400ml, 1L, 2L, 5L b Packaging
Visual elements: the boxes are made with special colors and elements such as fonts, usage, images help communicate meaningful brand to customers and differentiate products from competitors
- Packaging: In the German market, product packaging is specified in the National Product Packaging Ordinance (Verpackungsverordnung) First reason is to avoid packaging waste There are also additional provisions for reusable packaging, recycled materials and other processes for packaging waste
- Labels: For the purpose of ensuring the safety of users, labels become very important in the circulation of goods on the German market Goods labels in Germany must include the following basic information:
+ Product name (specific physical condition or handling)
+ Name/address of manufacturer, bagger, seller or importer in German
+ Ingredients in descending order of weight
+ Weight and mass in the metric system
- Protective Elements: Simply cooking oil is packed in cartons of different sizes: L:40cm x W:24,5cm x H:27,5cm
- Symbolic Elements: As the name “Simply” meaning, the brand conveys through the packaging in a simple but impressive way High quality images, clear colors with rice fields, a green of the vast garden combined with the yellow of the iridescent oil This gives customers a feeling of authenticity, while at the same time bringing the true essence of being a 100% natural product
8.1.4 International product standardization and adaptation
Intellectual Property Registration: Before launching a product to German market, we will contact a local agent to file an application with the German Intellectual Property Office Foreigners in companies must have a local agent who will file an IPO application a Standardization
CALOFIC is one of the leading enterprises in the field of cooking oils and fats in Vietnam At the same time, it is a pioneer in exporting cooking oil to the German market CALOFIC cooking oil products are completely refined according to European modern technology, committed to international quality With the product line of canola oil, rice bran oil has a unique character, ready to meet all needs in the German market
Germany is one of the fastidious consumer markets in Europe, in order to gain market share of Simply cooking oil in the German market, Simply needs to meet the following standards:
- Priority is given to vegetable oil, 100% natural original
- Must comply with the SPS Agreement, must ensure food safety and hygiene, pesticide residues and other residues are below the permitted level
- Simply must pass many strict inspection steps of inspection units on labels and packaging of goods Businesses must have an EORI number, health and technical certificates are highly demanded
- General requirements: No food additives are allowed for virgin or cold pressed oils Only natural flavorings, similar synthetic flavors and other synthetic flavorings are used with the exception of toxic flavorings (maximum use 75mg/kg)
- Product packaging must meet export standards Cartons are packed to ensure quality, sturdy to withstand shocks during transportation Images and product designs printed on the boxes must be sharp, clear, and in correct colors The font size and font style printed on the package must meet the standards
- Quality cooking oil, no signs of damage (dark color, not bright but slightly dull, unpleasant odor, signs of solidification.)
- Vegetable oils must comply with the maximum allowable limits on contaminants and toxins in TCVN 4832 Must comply with the maximum allowable limits on pesticide residues according to current regulations
- The Simply Vietnamese cooking oil lot, when exported to Germany, must meet the conditions of technical standards and origin, must have enough information: base code, factory
- In addition, according to EUREPGAP standards, integrated disease prevention and control management (IPM), integrated crop management (ICM), and minimizing the impact of chemical residues in the environment are required product The product is claimed to be free from bacteria, chemicals and natural contamination EUREPGAP requires environmental activities to have health care and first aid facilities for workers,… b Adaptation:
Improving product quality, the enterprise ensures that shipments exported to Germany are strictly censored from the packaging, size, cleanliness and nutritional quality of cooking oil to meet the needs of German consumers
- Product warranty policy: For products on the international market, there is any problem with product quality such as breakage, loss of capacity, and businesses accept 1-to-1 exchange
- Official website: calofic.com.vn, CALOFIC homepage provides information about ingredients, business size, product information to help consumers better understand the product
- Customer service: Build the customer service team at our Representative Office to deliver product expertise to keep customers satisfied and happy, increase sales and retain customers.
Pricing strategies
Enticing new customers: get 70 wholesales, distributions, retailers and key accounts
Competition-based price setting in long term: CALOFIC positions itself in the German market as a brand of quality cooking oil commensurate with its price, putting consumers' health as its development mission Hence we use competitive- base pricing that are above the industry average (industry average price is now 6,18 dollars per liter), in details:
Table 8 1: Listed price for retails
Products Listed Price (giá bán lẻ khuyến nghị)
(*) The selling price is based on the Price Perceptual Map below:
Figure 8 3: the Price Perceptual Map Table 8 2: Fixed cost within 1 year
Categories Types of cost Quantity Price
Cost of issuing codes for products
Table 8 3: Variable cost within 1 year
Categories Types of cost Quantity Price per unit
Table 8 4: Pricing policy for intermediaries
Pricing policy for key accounts:
Table 8 5: Pricing policy for key accounts
With the current high level of competition in the German cooking oil market, CALOFIC needs to use the Penetration Pricing Strategy to easily reach its target customers and gain market acceptance with its edible oil products new raw materials Specifically, in the first 6 months, we will use a special penetration pricing strategy to give maximum discounts to the company's importing partners at this time The expected pricing policy is as follows:
Table 8 6: Penetration Pricing within the first 6 months
In addition, in order to increase sales in the peak month, increase satisfaction, loyalty and create consumption habits for large customers and consumers for CALOFIC's cooking oil products, a Promotional Pricing Strategy is required on peak occasions (Summer Sale, Winter Sale), as follows:
Distribution strategies
International distribution: Simply cooking oil products will be circulated through a partner company acting as an intermediary to transport products to Germany
8.3.2 International Marketing Channel Decisions a Distribution Intensity:
The company chooses Intensive Distribution so that its products are distributed through as many wholesalers and retailers as possible
When Calofic's cooking oil products are available in Germany, companies specializing in importing cooking oils and condiments for consumer goods will be the first distribution members After that, they will distribute the products to supermarkets, large and small chain stores across Germany
Calofic will sell products to intermediaries (agents, retailers, export trading companies, ) at low penetration prices to encourage intermediaries to take advantage of the ecosystem Availability of distributors helps to increase sales rapidly b Selection of Distribution Channels: Indirect Channels
Figure 8 4: The channel length of Simply
Calofic chose the indirect channel, which provided the company with a safe way to enter the German market, without having to face the hassle and risks
8.3.3 Managing International Distribution Channels a Establishing International Channels Strategies:
Push Strategy: When we achieve a clear effect, we will start to distribute the product on a large scale, pushing the product to channels such as supermarkets, large stores in Germany in the second and third quarters Products are mainly transferred to modern channels to increase brand penetration, combined with the display of Simply cooking oil products in easily accessible locations where customers can easily see the products to gradually increase awareness trademark b Selecting Intermediary Arrangements:
To find and cooperate with intermediary partners, the company searches through Vietnam Ship Agents and Brokers Association - VISABA, the Union of Overseas Vietnamese Business Associations in Europe Besides, we can access capital sources to support and maintain market entry for the company's products through forums such as the European Overseas Vietnamese Business Forum
Figure 8 5: Logo of Viet Nam Ship Agents and Brokers Association – VISABA
Figure 8 6: Entrepreneur Nguyen Thi Trung Hoa, Vietnamese Entrepreneur in Germany c Making Channel Arrangements & Choosing Channel Partners :
First phase: Focus on professional retail: put products into grocery stores, supermarkets to increase competitiveness These systems include trade representatives, agents, distributors and retailers in Germany Select some supermarkets in Germany with many Asians (Lidl, Real, Kaufland, Edeka, Rewe and Globus Handelshof, ) as the main distribution channels
Strong growth stage: The company will adopt a selective distribution strategy by carefully selecting the markets it wants to enter The future orientation will be to expand the distribution network in supermarkets where many Asians live Provide full information about the product as well as the nutritional content of Simply cooking oil so that customers can feel the value of the product And help incentivize retailers by offering discounts or promotions
In addition, we provide a stock level for distributors to have at least 30% of each quarter's sales in stock Keeping inventory levels in stock ensures that the product is always available to supply points of sale, creating a mentality that Calofic always provides a full range of cooking oil products to customers, minimizing the habit of storing fish oil caused in some places by the shortage of world cooking oil d Managing Channel Power:
Channel conflict is not necessarily a negative, but it is also a driving force for development Because it helps promote channel efficiency, by promoting the ability to adapt to changes from the market So we will manage the distribution channel optimally but still keep channel conflicts under control To be able to maintain a conflict in a controlled manner we use different power bases like (Legitimate, Referent, Expert, Reward, Coercive) e Transportation:
Calofic will use ship transportation to save costs but still ensure delivery time and quality of cooking oil
Daco Logistics is a company specializing in providing international shipping services, operating with a proven track record of success Daco Logistics Group has rich experience, advanced technology, diversified and transparent transportation schedule The service provided by Daco Logistics will match the shipment schedule for Calofic Besides, Daco has a business investment cooperation relationship with many potential partners in the country as well as in the world to ensure the prestige as well as the long-term business cooperation with us
Figure 8 7: Daco Logistics Company f Export Entry Modes:
We choose a Trading Company that has its own cooking oil distribution network in Germany Because these companies can offer lower prices than other companies Those costs will include warehousing, transportation, insurance, and more, with the number of staff members available to deal with the problems of driver shortages, stocking and palletizing oil products Calofic's food in Germany In addition, export trading companies also handle the relevant legal requirements during the export process for different types of goods.
Figure 8 8: Simply product distribution channel
Promotion strategies
Use a combination of both push and pull strategies
Push Strategy: Firstly, we will target the companies that specialize in importing and distributing edible oils They are the big general agents, distributing cooking oil to large and small supermarket chains such as Kaufland, Edeka, Rewe Moreover, when retailers get large quantities, we will sell them at wholesale prices
We also distribute on e-commerce markets (like Amazon, Ebay, Target, )
Pull strategy: We will use pull tactics including advertising and promotions on mass media promotion, sale promotion and discount to increase customer demand for new products
Objectives: in the first year
- Branding and product awareness: 70% target audience
- Persuading customers to try and buy the product: 50% of target customers
- Brand preference: 40% of target customers a International Advertising Programs
Key message: YOU ARE WHAT YOU EAT
TVC (30s): “People tend to pay less attention to what they eat due to the quick pace of life This results in humans not eating enough of the essential nutrients while overindulging in detrimental ones, which causes a number of digestive and cardiovascular illnesses Simply cooking oil is prepared to assist housewives in producing dishes that are scrumptious, healthful, and equally appetizing” (Nhịp sống ngày càng nhanh khiến con người ít để tâm những gì mình ăn Điều này khiến ta ăn không đủ các chất dinh dưỡng cần thiết nhưng lại nạp quá nhiều chất có hại, dẫn đến nhiều bệnh lý liên quan đến tiêu hoá và tim mạch Dầu ăn Simply sẵn sàngđồng hành cùng những người nội trợ tạo ra những món ăn ngon, tốt cho sức khỏe gia đình và không kém phần hấp dẫn)
Magazine: Advertised in Eat Smart in Germany magazine, Simply brand can generate hundreds of thousands of impressions in the food and cooking market every month
Figure 8 9: Eat Smart magazine in Germany
Eat Smart in Germany combines menus and marketplaces to the location, culture, and the nation's history The book has the following useful and fascinating features:
A dictionary of food descriptions and cooking phrases in both English and German, menu suggestions to assist guests order and comprehend ingredients
An overview of culinary history including the origin and diversity of ingredients, regional specialties, and well-known German favorites
The Food and Taste Guide provides a complete list of foods, spices, cooking styles, and more to assist consumers at the vibrant open-air markets
Many street vendors and restaurants with Michelin stars are well- known due to their appearance in the publication
Poster: We designed the poster for Simply cooking oil according to the main message "YOU ARE WHAT YOU EAT" and combined with the support of outdoor and OOH in commercial centers in big cities (Berlin, Rhein-Main, Munchen, )
Figure 8 10: Poster of Simply’s products
Figure 8 11: Lightbox at the bus stop
Figure 8 12: Lightbox along the way b Alternative Marketing Programs
Lifestyle Marketing: We selected the Augsburg Multicultural Festival because it has drawn a lot of interest from friends both locally and internationally, for individuals of all ages, and has helped to foster greater understanding among the neighborhoods in Augsburg, a city with a diverse population that has 40% foreigners
The event offers the Vietnamese community in Germany's southwest the chance to interact, exchange ideas, and establish connections with other international communities The city's ethnic festival is also a chance to introduce international acquaintances to Simply products
Figure 8 13: Vietnamese at Multicultural Festival in Germany
We can search for a location and set up booths and take advantage of the connection Attendees can taste German dishes prepared with Simply cooking oil to see how good it is
8.4.2 International Sales Promotions a International Consumer Promotions
Price-off promotion: We will use this type of promotion on major holidays like Black Friday, Thanksgiving, Christmas by increasing the discount to 1-2% for distributors
Social Media: We build the company's international website professionally https://www.calofic.com.vn International customers tend to view brands as more relevant when they connect through the Internet
Figure 8 14: Website of Calofic b International Trade Promotions
+ Attracted a lot of international marketing attention
+ Initial support for the new Simply brand product is available
+ Build and maintain strong working relationships with marketing channel members
Asia Sky Tours, a limited liability company with its headquarters in Berlin, the German capital, specializes in tourism, import and export, and cultural performance organizations Asia Sky Tours can offer fair-related services thanks to its potential and experience as a unit with experience in organizing and taking part in fairs in Germany
Specifically: To register for the event and pay the expenses on behalf of the Vietnam-based units: create booths, embellish booths, take down booths, move booths, store exhibited goods, contact partners, and schedule meetings with partners Deliver in-depth expert interpretation
Figure 8 15: Asia Sky Tours displays Vietnamese goods in Germany
We chose Tim Raue - a chef with the most coveted achievements in the world The German chef is best known for owning a two-Michelin-starred restaurant in Berlin, and two other highly rated restaurants in the same city Tim also appeared on a Netflix TV series called Chef's Table
We're sending him a 6-month contract as the brand's exclusive ambassador Tim Raue will film for TVC 30s, participate in photo interviews with products…
We will post teasers & posters on social platforms such as Facebook, Instagram, Twitter, etc on the official account page of brand ambassador -Tim Raue
We'll be promoting Tim Raue endorsers with 1 interview + 1 cooking video with Simply cooking oil The content of the interview revolves around his experience when choosing food in cooking and why he chooses and trusts Simply cooking oil
Figure 8 17: Interview with Tim Raue
Action plan
Q1/2023 Preparing for the market entry the first 3 months
- Choose and contact celebrity Tim Raue to be the exclusive model stage for the brand
- Look for appropriate events, such as trade shows, to register for in order to promote your products
- Create registration procedures for upcoming events
- Billboards, banners, yellow posters, products, and cooking oil bottles are examples of design publications
- Attracting 300,000 people to the press conference to introduce the product
- A 40% increase in customer recognition in trade shows
- Transporting cooking oil to import and distribution companies in Germany Then it will be distributed to lower level channels
- Brand ambassador introduction and press release with teasers and images
- Participate in PMA Fresh Summit 2023 and Asia Sky Tours
Q3 Increase - 5/7 - 30/9: - Attracting - Hanging led signs, brand awareness hanging billboards
- 5/9 : continue to communicat e on social networks more than 4,000,000 people through social networking sites banners, posters in large urban areas (Berlin, Hamburg, Munich, Colombia, ) -Official TVC launch (30s)
- Posted products in Eat Smart in Germany magazine
- Start digital marketing specifically social media: Youtube, Facebook, Twitter, Instagram ads
Q4 Increase the number of customers using the product
- Customer views at least 100,000 views
- Reach at least 9,000,000 people to buy cooking oil products
- Upload video tutorials on how to make food from products
- 5% discount at stores that distribute products
Product introduction in the magazine
Timeline
5% discount at stores that distribute products
RECOMMENDATIONS, EVALUATION, MEASUREMENT AND CONTROL
Recommendations
The target customer that Simply Cooking Oil is targeting is industrial customers who consume in large quantities, so we have a proposal for an additional packaging size of 10l cans The production of large cans will save the cost of producing each small bottle, helping to protect the environment, and customers buying in larger quantities will help increase revenue for the company
We recommend Simply producing more macadamia nut oil to the list
Macadamia nuts are very good for heart health, especially for the elderly Accordingly, the macadamia nut is very low in fat, cholesterol, prevents coronary heart disease, atherosclerosis, etc The quality of Vietnamese macadamia nuts is not inferior in nutritional value and deliciousness compared to imported nuts In particular, the Central Highlands is where the macadamia tree grows strongly and gives the best grain yield, with an abundant and available supply, combined with modern machinery, Simply can easily produce this type of product
In addition to Simply and Neptune in the export category, we also recommend Kiddy - Nutritional cooking oil and olive oil for children to other countries to increase the number of target customers
Fugure 9 2: Recommend simply maca oil
Evaluation and Measurement
Calofic's goal is to provide the highest quality and safe products for consumers' health to meet the needs of the German market With the market penetration strategy outlined above, Calofic hopes to capture the German market in the next 3 years In addition to the specific strategies that have been set out in advance, in the process of penetrating Calofic, we always try to understand and research the school so that we can flexibly adjust and change activities in the marketing strategy to be able to adapt to the needs of our customers respond to market fluctuations
Simply vegetable oil products are considered as the first step in the penetration strategy to create better conditions for exporting more new product lines, many brands of Calofic to this potential market
To get the best results, you need to measure each type of activity in your strategy Here are some techniques to measure the effectiveness of your strategy:
Advertising Efficiency: based on the number of visits to the website, the views of TVCs to measure the effectiveness of the strategy
Sale Promotion Effectiveness: the number of products associated with the promotions sold in the market
Customer Feedback: based on interactions, customer feedback on Fanpage, website, advertising posts This is the most effective form of evaluating and measuring the effectiveness of a strategy At the same time, it also helps businesses know where their strategy is not good or what consumers want from the product so that they can make timely adjustments to bring success to the business
Market Reaction: actions of competitors such as imitation, following will let businesses know their marketing strategy has advantages and disadvantages like
We also use ROI Index (Return on investment) to measure the effectiveness of marketing activities of CALOFIC Company
(EURO) (=unit price * sold out)
(profit - overdue payment)/(fix cost + variables)
Controlling the implementation of marketing campaigns in foreign environments
Evaluation throughout each process is extremely important to measure the effectiveness of marketing activities, helping CALOFIC to make timely changes to upgrade its marketing strategy more optimally, helping:
- Adjust the target market more suitable, can shrink or expand the target customer, or change the customer group Controlling process reports helps uncover new customer groups and expand your market share
- Marketing cost savings: high measurement frequency can help quickly find the causes of marketing underperformance CALOFIC can choose to remove the activity or replace it with another Effective control of the distribution channel for CALOFIC in this strategy is particularly important When entering foreign markets, optimizing distribution channels to B2B customers reduces countless problems and costs This has a huge impact on marketing costs and measuring profit margins of businesses
Problems can arise from any cause, human or not, regardless of time Issues must be updated in a timely manner and aggregated according to their importance, marketers must always be ready to deal with list issues and be flexible when urgent issues arise
Anticipate possible risks and control them especially closely Always try to anticipate possible situations so that the business can anticipate the alternative There are many risks, such as:
- In the product strategy, the end consumer may not favor the taste of soybean oil or rice bran oil because it is quite novel
- In pricing strategy, the occurrence of price differences when customers self- distribute can cause gray markets to appear that the business does not intend to miss
- In the distribution strategy, risks may arise if the market suddenly increases supply or demand, causing shortages or overloads, leading to supply chain disruptions There are also risks of overseas storage, warehouse space at the office, product quality when shipped to customers, etc
- Promotion strategy needs to be flexible when exercising control, if consumers have a favorite move or not, businesses need to rely on it to increase or decrease supply; Or there are cases where the big idea is not suitable for customer insight…
Trade barriers affect businesses when entering the German market
Summarizing from the macro-micro environment analysis presented, we will encounter the following Barriers to Entry:
- Currently, the inflation rate in the German economy is on an alarming trend and the latest increase in energy prices due to reduced oil supplies from Russia is likely to push up consumer prices → The company's export influence to the German market
- Moreover, the political-legal system has very strict regulations for the import of goods Germany's mandatory import requirements on food hygiene and safety, technical standards and other import regulations are very strict Sanctions for violations of import regulations are also very strict → Require companies to strictly comply with regulations so that new products have the opportunity to export to Germany
- Germany is increasingly interested in sustainable consumption, choosing consumer products that ensure health, protect the environment, and protect workers German importers often require imported products to have additional certifications/certifications (which are not mandatory import regulations) such as some food safety certifications, social certificates, human rights, etc green, eco-label… → Require the company to meet the standards and requirements
- Regarding social culture, German consumers are very fastidious consumers, very knowledgeable about prices and have very high requirements for quality, appearance, brand, prestige of imported products export → To be able to meet this, we will have to aim for strong product advertising to make a good impression on German consumers
- Germany has a geographical distance far from Vietnam, so the cost of transporting and preserving goods exported to this market is high, leading to increased product costs and difficulty competing with goods from countries with geographical locations near Germany → Optimize distribution channels, transportation processes to save costs
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