INTRODUCTION
ABOUT BEN TRE IMPORT-EXPORT COMPANY (BETRIMEX)
Ben Tre Import-Export Joint Stock Company, formerly known as Ben Tre Import-Export Company, was established in 1976 and officially equitized in 2006 with the trading name Betrimex The company's head office and system of factories are located in Ben Tre province, which has the largest coconut area in the country with over 70,000 hectares, annually harvesting over 450 million coconuts In addition, Ben Tre is also known for its variety of specialty fruits and is especially close to the important rice export center of the Mekong Delta region
Currently, Betrimex has 04 branches, factories and 05 member companies, with a total of 950 employees; total assets is 512 billion VND, total charter capital is 99 billion VND; export turnover reached 48 million USD/year; total export volume of products processed from coconut over 20,000 tons
Betrimex is currently an official member of Vietnam Chamber of Commerce and Industry (VCCI), Vietnam Fruit and Vegetable Association (Vinafruit) and Ben Tre Coconut Association (BTCA)
FIELD OF ACTIVITY
- Producing, processing and trading in coconut products, processed agricultural products for export
- Producing charcoal from dried coconut shells
- Main export markets: Asia, Europe, America & Africa
ACHIEVEMENT
After 40 years of construction and development, Ben Tre Import-Export Joint Stock Company (Betrimex) has quickly affirmed its brand name in the field of processing and exporting coconut products There have been ups and downs, but there have also been outstanding achievements that have contributed to enhancing the value chain of the Vietnamese coconut tree
Creating good quality products for consumers, sharing hands with coconut farmers, and accompanying socio-economic development are always considered the top priorities of Betrimex With many activities implemented, Betrimex is honored to achieve outstanding achievements and is now a member of prestigious domestic and international organizations Domestic achievements have been achieved: HIGH-QUALITY VIETNAM GOODS voted by consumers in 2019, HIGH-QUALITY VIETNAM GOODS with integration standards TOP 10 TYPICAL BRANDES IN Asia Pacific, SUSTAINABLE ENTERPRISES 2017 Success Factory International achievements: ORGANIC, HALAL, KOSHER, FSSC 22000, FDA, ISO 14001, OHSAS 18001, ORGANIC JAS.
ABOUT THE PRODUCT
Cocoxim is a brand of canned coconut water Betrimex, Ben Tre Import-Export Joint Stock Company (Betrimex) Determined to invest to increase the value of Ben Tre coconut trees, Betrimex invests in a production plant with the world's leading modern technological process of Tetra Pak Group combined with a source of raw materials to ensure good quality Coconuts are grown and cared for in Ben Tre Currently, Betrimex is manufacturing and distributing two main product lines: Organic (product made from 100% pure Ben Tre coconut, using Organic ingredients and certified Organic by the US, Europe, Australia, Japan and Korea) including Organic Coconut Water, Organic Fresh Coconut Milk, Organic Virgin Coconut Oil; and Non-Organic (the product is made from 100% pure Ben Tre coconut by advanced technology to help keep the full taste of Ben Tre coconut Green Siamese pineapple juice) including:
- Original Coconut water: organic coconut water, original coconut water
- Coconut Water With Tropical Juices: coconut water with lotus seed, coconut water with pineapple juice, coconut water with citrus juice, organic coconut water with pineapple juice
- Coconut milk drink: coconut milk with dark chocolate, original coconut milk, coconut milk with coffee, original coconut milk drink, unsweetened coconut milk drink
- Isotonic drink from fresh coconut water and isotonic drink from fresh coconut water acai berry flavor
VISION
Determining "Business is a mission not a right", Betrimex's vision is to become the best internal force and standing company in the coconut industry of Vietnam Concurrency, bring added value to farmers, partners, customers, employees, bring useful values to the social community.
MISSION
Betrimex is committed to adopting new farming methods and modern, friendly, natural production systems to improve the ecosystem
Betrimex always strives to build trust, co-operate for common development, work hard to maintain that reputation and cooperation
Betrimex always sees farmers as companions Therefore, Betrimex is committed to implementing many policies to ensure the benefits of coconut farmers to jointly explore the potential and increase the value for the people
Betrimex always pays attention to and aims to bring consumers quality and healthy products.
ORIENTED DEVELOPMENT
As the first and leading producer of coconut products in Vietnam, Betrimex is making every effort to meet the needs of the domestic market, perform well in overseas distribution and affirm its position in the international arena In addition to the business goals, Betrimex is aiming for sustainable development, committed to applying new farming methods, modern production, and environmental friendliness to improve the ecosystem: using recycled packaging and an Efficient wastewater treatment system
SITUATION ANALYSIS
MARKET ANALYSIS IN VIETNAM AND THE WORLD
2.1.1 The Situation Of Coconut Water Production In Vietnam
Vietnam's coconut area is only 4% of the coconut area of Indonesia and the Philippines, 8% of the coconut area of India, 40% of the coconut area of Sri Lanka However, the average coconut yield of Vietnam reached 9,863 fruits/ha/year, equivalent to 1.9 tons of copra/ha, higher than the average level of countries in the Asia-Pacific Coconut Association (APCC) only reached 0.9 tons of copra/ha, Philippines, Indonesia (0.85 tons), India (1.1 tons)
Vietnam at its peak had about 400 thousand hectares of coconut, but due to inefficient exploitation compared to other trees, it was cut down, now only 250,000 hectares remain Recently, Vietnam is gradually recovering, growing most in Ben Tre - about 40,000 ha, Tra Vinh 13,000 ha, Binh Dinh 12.5 thousand ha, etc Vietnamese coconut has strong vitality, compatibility enjoys high market and wide application Currently, the characteristics and contribution of cultivation with the highest yield is in Ben Tre province Ben Tre has biodiversity of native coconut varieties with good yield and quality such as Ta coconut, Dua coconut, Siamese coconut, Pineapple coconut The average yield of selected native high coconut varieties is > 60 fruits/tree/year, and the oil content is >65% Some varieties of coconut drink water such as Siamese coconut, good quality, sweet (Brix level >7%), protein content 2.32 g / 100 ml, fat 6.31 g / 100 ml Therefore, the price of raw coconut in Ben Tre has always been twice as high as that of Indonesia and the Philippines during the past 10 years
According to the seminar "Improving the coconut value chain to adapt to climate change" taking place in the morning of November 17, 2019, in Ben Tre, the province's coconut area accounts for 50% of the country's coconut area, with more than 71,000 ha, 163,000 households grow coconuts Coconut export has been and is a potential field for Vietnam This key area has a total annual output of nearly 800 million fruits, export turnover is about 200 million USD, the value of processed products from coconut accounts for 20% of industrial production value and 25% of export value province's export The recent statistics have clearly demonstrated the economic efficiency of Vietnamese coconuts, making this fruit one of the agricultural products with high export value In particular, coconut products are also very popular and tend to increase in recent years Exported coconut products of great value such as coconut milk, virgin coconut oil, canned coconut water are produced with modern equipment and the highest technology in Southeast Asia Betrimex has obtained certifications such as ORGANIC, HALAL, KOSHER, FSSC 22000, FDA, ISO 14001, OHSAS 18001, ORGANIC
6 JAS, so Betrimex's Ben Tre coconut products have more than enough capacity to participate in large and difficult markets but full of potential
2.1.2 Overview Of The World Market And Export Prospects
According to the Asia-Pacific Coconut Association, and the United Nations Food and Agriculture Organization, coconut trees are grown in over 90 tropical countries of which the coconut area of the Asia-Pacific countries accounts for 85.7%, Americas 7.9%, Australia 3.4% in 2019 The top three producers in the world - Indonesia, Philippines, and India - account for three-quarters of global production Global sales of coconut water increased from 363.78 million liters in 2013 to 865.71 million liters in 2017, at a CAGR of 24.20% In 2017, the global coconut water market was led by the United States Europe is the second-largest market in the region In 2017, the global coconut water market was valued at around US$2.2 billion and is forecast to reach a value of US$8.3 billion by 2023 a) Demand for coconuts to 2025
World demand for coconut water is forecasted to increase over the years The Statista report has shown that global consumption of coconut water reached 3.9 billion liters last year and will grow at a rate of 25.4% through 2019 In which, the US is the consuming country Largest canned coconut water in the world Coconut water sales in the US reached 778 million USD in 2015 and are expected to increase further in the coming years, estimated at nearly 2 billion USD in 2019 In addition, France, Japan and Canada also markets significant coconut water consumption, with sales estimated at $500 million by 2019
According to the Ben Tre Coconut Association, which synthesizes information from forecasting centers around the world, the increase in demand for coconut products worldwide by 2025 is as follows:
Coconut milk increased by 15%, of which organic coconut milk increased by 8.5% Coconut jelly increased by 5.6% Coconut flour increased by 6.6% Coconut ice cream increased by 36% Coconut water increased by 25% Virgin coconut oil increased by 21% An average increase of over 10%
The high increase is due to changing consumer preferences and accepting the trend of consuming healthy, natural, low-calorie vegan foods with high nutritional value and reduced cardiovascular risk b) Prospects
7 Through the above information, we see: Total supply is lower than the total demand for coconuts; Demand increased by 10%, while supply increased by less than 1% and the gap widened Vietnam's coconut market share is less than 1%, so if the export volume in the future increases, it will not have a big impact on the supply level Competitors except for the Philippines with potential market advantages and experience in the business The rest of the coconut-producing countries, compared to Vietnam, are almost equivalent With advantages in terms of farming conditions, production, and application-level of technical advances, Vietnam has many advantages (Hiệp Hội Dừa Bến Tre, 2018)
REASONS FOR CHOOSING TO PENETRATE THE AUSTRALIAN MARKET
2.2.1 Market The Company Has Not Penetrated But Has The Ability To Export
The Company's main export markets include the US, Korea, Japan, and China Among Betrimex products, the main export products are coconut water, coconut milk and virgin coconut milk Although exporting to many countries with high and stable export volume compared to other Vietnamese beverage exporters, Betrimex's products have not yet created a foothold, reputation and brand in the hearts of consumers abroad Therefore, in order to successfully penetrate the international market It is necessary to have a plan to carry out overseas communication for Betrimex, to help focus on building the brand and towards development in new markets when there is no recognition to promote strongly exploit the market
Although coconut water can be consumed directly from young green coconuts without further processing, this consumption is negligible in Europe Most of the coconut water on the European market is processed and packaged In contrast, consumption of young coconuts accounts for the largest share of consumption in coconut-growing countries In the long term, the coconut water market in Europe is expected to grow steadily This growth can be driven by changes in the way European consumers consume This is particularly relevant to the popularity of plant-based and functional drinks Also, consumers in the beverage industry are finding new/creative and healthier solutions with coconut water as one of the key ingredients The UK, France, Spain, Germany, Italy and the Netherlands create opportunities for suppliers in developing countries Currently, Betrimex has not penetrated these national markets but has high export potential
Australia is a country with dramatically demanding coconuts, but the number of old coconut trees is decreasing, so the country is actively importing coconut products In addition, the researchers suggest that northern Australia should try to develop the local coconut industry Australians, like many people in Europe are very fond of coconuts and coconut products (Hiệp Hội Dừa Tỉnh Bến
8 Tre, 2020) Here Betrimex has not officially entered the market, although the product is present in some markets of the Vietnamese community in Australia but has not been officially exported in this country Australia is also seen as a promising market for nipa products (Hiệp Hội Dừa Tỉnh Bến Tre, 2017)
2.2.2 Potential Markets And Main Areas Of Activity Of The Company
The UK is the largest importer and consumer of coconut water in Europe peaking at over 25 million liters in 2016 The UK market presents specific opportunities for suppliers of certified products by Fairtrade, as the country is the largest market for Fairtrade products in Europe Currently, an estimated 5,000 Fairtrade certified products are on sale in the UK
Germany was the first country to introduce packaged organic coconut water to the market, as early as 2002 However, the German market is not growing as fast as in the UK Currently, the consumption rate is increasing and it is likely that Germany will enter the top 3 countries consuming the most coconut water in Europe in the next 3-5 years The annual consumption of coconut water in Germany is estimated at 6-8 million liters Germany is a particularly attractive market for organic coconut water, as it is Europe's largest organic food market (SởCông Thương Bến Tre, 2021)
Australia is a very popular market for coconut products The Australian Bureau of Statistics said that Australia is now importing more coconuts than before In the past year, Australia has used about $35 million to buy coconut oil, it's tripled over the past decade Besides, the import of fresh coconut and dried coconut is increasing The Australian market offers opportunities for foreign suppliers due to their high dependence on imported goods for production and consumption The Australian market is relatively open to foreign suppliers with no import quotas applied and most import duties at 5% (the general tax rate) and 0% for LDCs Under the Free Trade Area Agreement between ASEAN and Australia and New Zealand (AANZFTA), about 96% of Australia's tariffs will be eliminated in 2010, the rest will be implemented in 2020 on imported goods from ASEAN countries, including Vietnam
However, the Australian market is a challenging market for foreign suppliers Most Australian importers order in small quantities but expect to be offered lower prices both in the US and most European countries In addition, Australian importers demand strict delivery deadlines and set relatively high standards Most Australian customers are concerned about “value for money” especially in terms of quality Australian importers expect to be offered competitive prices, small quantities, stable quality, and on-time delivery
9 Table 1 Potential market analysis (Việt Nam Export, n.d.)
Distance Logistic Costs Market Characteristics And
UK Great distance High cost, complicated process
-The UK is the largest importer and consumer of coconut water in Europe peaking at over 25 million liters in
2016 The UK market presents specific opportunities for suppliers of Fairtrade certified products
-Prefer healthy drinks, especially organic
Germany Long-distance High cost, complicated process
-The competition in the domestic industry is fierce
Australia close distance Relative cost, preferential tariff
-There is much export support between the two countries
-Trade relations between the two countries
➢ So Betrimex can choose to penetrate Australia market
MARKET ANALYSIS IN AUSTRALIA
Australia's population by 2020 is estimated at 25,499 million people according to United Nations figures The median age in Australia is 37.9 years old in 2020, having increased by 3 years over the past two decades (up from 35 years in 1998) The population is aging and growing at a rate of 1.18%
According to the latest data provided by the World Bank, the proportion of the population under the age of 15 is 19.2% and decreases year by year, while the proportion of the population over 65 years old continues to increase to 15.9% The proportion of households is decreasing and shrinking According to the Australian Institute of Family Studies, households consist of an average of 2.6 people About 24.4% of households have only one person and 71.3% are households (Goglobal, 2020)
Demand for coconuts in Australia is booming, but the number of old coconut trees is increasing, which has threatened and reduced the supply of coconut in the world The researchers suggest that northern Australia should try to develop a local coconut industry Australians is the same as many people in the west are very fond of coconuts and coconut products
Australians have long favored desiccated coconut fibers in the pastries of local residents Today, more health-conscious consumers are increasingly preferring high-value-added coconut products such as virgin coconut water and coconut oil Australia can grow coconuts in the North of the country but the production of coconut fruit is not the balance of trade and the harvesting of coconut fruit from ornamental coconut trees In parks, coconut trees along the coast and in gardens are also restricted Australia is a potential export market, however, in addition to the strong products of Vietnam's industry, there are still untapped opportunities Of which, only 38% of new beverage products are available, including products similar to bottled coconut water
The increasing shift of consumers from carbonated drinks to healthier drinks due to the high prevalence of many lifestyle disorders, such as obesity, diabetes, cardiovascular disease, etc, is mainly promoting the coconut water market across Australia Furthermore, increasing consumer awareness towards the many health benefits of coconut water in terms of improving digestive function, reducing hypertension and maintaining hydration levels is continuing to drive growth in the market Besides, the widespread availability of coconut water in portable packaging solutions, such as sachets and tetra bottles, for on-the-go consumption also increases product demand In addition, the prevailing
11 vegetarian trend has led to the growing popularity of plant-based beverages, such as coconut water
In addition, a number of suppliers across Australia are offering innovative product variations with multiple flavors, such as ginger, vanilla, lemon, guava, etc, to cater to other tastes and preferences each other by consumers Besides, the significant growth in the field of energy drinks and sports is also driving the demand for coconut water based on the high presence of natural electrolytes In addition, an increasing number of QSRs and cafes are promoting the use of coconut water blends and concentrate on many innovative dishes In the coming years, the growing demand for clean and organic coconut water with hypoallergenic, GMO and preservative-free content will continue to drive market growth across Australia (Imarcgroup, n.d.)
Although people's income is increasing, the level of consumers is quite high, purchasing decisions in Australia are often made with analysis of the fit between price and product benefits Indeed, price is an important determinant, but the quality, the image the product presents, its authenticity and popularity do matter Australian shopping venues vary widely, from department stores or supermarkets to small retail stores On average, prices tend to rise with demand for quality products Australians often use the internet to make purchases and often buy from retail websites The market share of e-commerce is growing Because domestic production is not enough to meet domestic consumption, consumers are used to buying import products In general, the proven sources are Asia, North America and Europe
According to a survey by McKinsey & Company, since the beginning of the COVID-19 crisis, Australian consumers have always been concerned about product quality, traceability, safety in transactions and clearly show caution more important than American or Chinese consumers In the pre-COVID-19 period, Australian consumers were more focused on just-in-time, convenience- oriented behaviors and online shopping preferences, which means they quickly decided to buy as soon as they arrived However, at present, there is a reversal in direction, consumers are attracted to more planned shopping behaviors, a balance between many better places as described above
The factors that drive consumer loyalty to a brand are quality (especially consumers focusing on Australian and healthier brands), price (consumers intend to buy more of the product when the promotion or cheaper price) and the quality of after-sale service Older consumers are more loyal than younger consumers and faced with a negative shopping experience, almost half of the consumers said they were willing to stop buying the brand Social media is useful for learning about products (especially thanks to consumer reviews) but also for discovering new products and changing their buying habits Protecting their information is often an important issue for Australians
The trend of consuming natural and organic products is increasing:
12 Table 2 Spending structure of Australian households before the COVID-19 pandemic
Housing, water, electricity, gas and other fuels 22.9%
Food and non-alcoholic beverages 9.4%
Furniture, household appliances and routine home maintenance
➢ The table shows that Australians are interested in non-alcoholic beverages and health products (Goglobal, 2020)
Australia is a potential export market, however, in addition to the strong products of Vietnam's industry, there are still untapped opportunities Of which, only 38% of new beverage products are
13 available, including products similar to bottled coconut water The Australian Bureau of Statistics said: Australia is now importing more border gates than before In the past year, Australia has used about $35 million to buy coconut oil, a figure that has tripled over the past decade All fresh coconuts and coconut products sold in Australia are sourced from coconut-producing countries around the world
Figure 2 Vietnam's drinking and bottled water export potential to Australia
Source: Export Potential Map (Export Potential , n.d.)
According to market analysis from Data Bright's research, packaged coconut water is expected to gain market growth in the forecast period of 2021 to 2028 Data Bridge Market Research analyses that the market is growing with the CAGR of 8.00% in the forecast period of 2021 to 2028 (International Trade Administration, 2021) The growth in popularity of organic beverages among the population across the globe is escalating the growth of packaged coconut water Asia-Pacific (including Australia) is the region with high consumption, the large production of coconut in the developing countries such as India, Indonesia and Philippines, presence of leading manufacturers, availability of coconut water in varied flavors, rapid urbanization and rise in health consciousness among people
14 Figure 3.Global Packaged Coconut Water Market
Source: (Data Bridge Market Research, 2020)
The rise in awareness regarding the benefits of consuming coconut water and the change in consumer’s preference towards natural and healthy drinks act as the major factors driving the packaged coconut water Packaged coconut water is much more convenient to carry than an actual whole coconut which increases the product’s demand Additionally, the increase in health concerns among the population, rapid urbanization and the high consumption of ready-to-go products positively affect the packaged coconut water market Furthermore, the need for variety in flavors and enhancement of product’s packaging and appearance extend profitable opportunities to the market players in the forecast period of 2021 to 2028
On the other hand, concerns regarding electrolyte imbalance and high sugar content are factors expected to obstruct the market growth Environmental concerns regarding the packaging material of the product is projected to challenge the packaged coconut water market in the forecast period of 2021-2028
ANALYSIS OF INTERNAL ENVIRONMENT
ORGANIZATIONAL STRUCTURE
Betrimex's organizational chart is presented professionally and scientifically Parts that both work independently and closely together create a robust and robust BETRIMEX
Figure 4 Organization structure of Betrimex
POWER
Strong capital resources - Betrimex and TTC Group have decided to invest in a canned coconut water factory with a 330ml filling line with a total capital of USD 22 million in 2015 in phase 1 Not stopping there, Betrimex also constantly improves and diversifies product categories based on market information about the needs of global customers
Aiming to become a leader in the exporting based-coconut products, Betrimex has invested heavily in factories and technologies that meet international quality standards
❖ 4 Processing line & technology with advanced and modern equipment:
- Production line of coconut water: Using Tetra Pak Group's world-leading production line (Sweden) and direct UHT sterilization technology
- Production line of coconut milk: same as coconut water production line
- Production line of desiccated coconut: There are 2 production drylines to make desiccated coconut: Capacity of line 1: 600 – 650 kg/hour Capacity of line 2: 750 – 900 kg/hour The production process in the factory is strictly controlled and follows the hygiene and food safety standard
- Production line of coconut milk for cooking: The line combines technology between Tetra Pak and Muninmax to produce a product line of canned or canned coconut milk Tetra Pak
❖ Currently, Betrimex has built a complete system with 5 factories and 1 company
❖ Warehouse: Logistics system with a total area of 10,000 m2, meeting international standards such as: HACCP, GMP, SSOP Shelves area is about 5,000 m2 with the number of shelves is more than 4,000 pallets Capacity: 3 million liters of final products
With the goal of bringing the best working environment for employees, Betrimex have applied the BSCI and strictly implemented the international labor standards, protecting the rights of workers Betrimex is honored to receive BSCI Certificate and is considered one of the most Labor Attractive Places in the Mekong Delta with 1000 professional, enthusiastic staff and a large number of skilled workers
SWOT ANALYSIS
Table 3 Cross SWOT model of Betrimex company when exporting to Australia
-Export experience -Product quality is high -Wide distribution network
-Invest in modern equipment and high-quality technology
-Natural fuel source, quality, international standard
-Coconut water products are diverse, suitable for many customer files
-Risk of raw material supply not meeting demand
-The product has difficulty when it has not changed the habit of using fresh coconut for consumers
-Building and establishing a distribution channel can be challenging
-Brand awareness is still quite low in foreign countries
-Cultivation industry and domestic product development develop and have great potential
-Australia is a large, potential target market with stable political indicators
-High demand for the product in the target market
-Australia has difficulty in supplying products
-Survey research habits, tastes, tastes of users in Australia to have appropriate marketing strategies for this new market
-Take advantage of the opportunities and inherent strengths of the micro and macro environment to penetrate new markets
-Implement a market penetration strategy, deploy online business channels, combine with a well-branded delivery application to enhance the brand, and have many incentives to attract customers
-Looking for new sources of coconut of equal or higher quality to meet the strong demand in the future
-Building a good image, increasing distribution density to meet the demand for coconut water of the Australian people, as well as increasing awareness for customers
-The rigor in Australia's import and export policy
-The market is increasingly competitive
-Perfectly ensure all aspects of product quality, packaging, labeling, to satisfy the strict requirements of Australia's import policy
-Deploy more drinks and products to suit the needs and tastes of customers
-Acquire and improve production technology continues to improve productivity and quality, not to lag behind compared to domestic Australian competitors and competitors from other countries
-Perfectly ensure all aspects of product quality, packaging, labeling, to satisfy the strict requirements of Australia's import policy
-Deploy more drinks and products to suit the needs and tastes of customers
-Acquire and improve production technology continues to improve productivity and quality, not to be lag behind compared to domestic Australian competitors and competitors from other countries
ANALYSIS OF MARKETING ENVIRONMENT
HOFSTEDE'S MODEL
Hofstede's multi-cultural theory is considered as the framework for multinational communication Using factor analysis, the Hofstede model describes the influence of sociocultural culture on members of a society and how these values relate to their behaviour
Figure 6 Elements of the Hofstede model
Source: User Feedback in the App Store: A Cross-Cultural Study (2018)
20 Table 4 Analysis of the Australian Hofstede model in 2018
Cultural dimension Level Characteristics Suggest
Power distance Medium -Equal superiors and subordinates
-Decentralization is not too strong
-Many people make the same decision
-Respect time and freedom needs
-Don't ask for a lot of personal information
-Encourage debate and expression of personal ideas
Assertiveness is the most dominant trait, does not accept ambiguity
Plan for career direction, development must be clear
Get away from risk Medium -Flexible business attitude
-Worrying about long- term plans more than day-to-day happenings
FIVE - FORCES MODEL
Low (focus on medium/shor t term)
-Do not overestimate cultural and traditional values in recruiting and working
-Focus on achieving quick results
-Positive attitude, optimistic tendency -Value leisure time
-Act according to personal will
Hofstede's model of cultural dimensions is useful in helping to recognize the many cultural differences that existed as the company began to go international It can be seen that the power distance situation in Australia is relatively low A low power distance implies that power in Australia is spread out to all rather than just a few groups This also indicates that there is good equality between all levels of society, including governments and organisations This orientation also has cooperative interaction between power levels and creates a more stable cultural environment With regard to risk avoidance, this rate is also relatively low with a family-centered culture and a stable society It can also be seen that Australians don't like uncertainty, they want stability for their members, they strive for consensus, follow a lot of rules and are more prone to stress and anxiety It can also be witnessed that there was a high degree of personalization The level of masculinity/feminism seems to be balanced as both sexes share economic equality, business and ethics In terms of direction, both long- term and short-term can be seen as Australia is the product of a unique blend of age-old traditions and new influences Overall, this shows that Australia has come a long way from where it once stood and has improved many issues and areas towards a strong, solid and culturally promising future
❖ Competitive situation with businesses in the industry
- The main competitors of coconut water suppliers are coconut processors from Southeast Asian countries, followed by Brazil However, industry sources estimate that the top suppliers by
22 volume are the Philippines, Indonesia Other important suppliers include Sri Lanka, Vietnam and Brazil
- Direct competitors: Domestic competitors such as: Datafa, Vinut International competitors such as: Kara Coco (Indonesia), Aqua Coco (Philippines), Vita (Brazil)
❖ Betrimex's competitive advantage compared to competitors in the industry
- The company has actively researched and selected key products for investment, applying modern science and technology to the production process in order to meet international quality standards
- With more than 40 years of experience, Betrimex has invested in the world's most modern production technology, Tetra Pak (Sweden) in the production of canned coconut water and coconut milk This is a 100% automatic technology, environmentally friendly, ensuring the quality of products made can meet the most demanding requirements of foreign markets
- The company uses direct UHT sterilization production technology, which is able to retain the pure taste of coconut, overcoming the disadvantages of cooking products of indirect UHT method
- In addition to investing in modern production technology, Betrimex also develops organic material areas in Ben Tre that are certified Organic (EU and USDA-NOP) & JAS (Japan)
- In addition to business goals, the company must develop the local economy, improve the lives of farmers - who have accompanied to create quality coconuts: Farmers who sign the cooperation agreement will receive material support Cultivation, training on organic farming techniques to ensure the sustainable development of coconut gardens, output consumption and purchasing coconuts from the garden After a year of implementation, it has attracted 1,600 farmer households with 1,500ha of area for an output of 14,400,000 coconuts a year
4.2.2 Enterprises Preparing To Enter The Market
Table 5 Some products of Cocoxim and potential competitors
BRAND COCOXIM VIETCOCO UFC OBRIGADO
NATION Vietnam Vietnam Thailand Brazil
PRODUCT - Original Coconut water: organic coconut water, original coconut water
- Coconut Water With Tropical Juices: coconut water with lotus seed, coconut water with pineapple juice, coconut water with citrus juice, organic coconut water with pineapple juice
- Coconut milk drink: coconut milk with dark chocolate, original coconut milk, coconut milk with coffee, original coconut milk drink, unsweetened coconut milk drink
- Isotonic drink from fresh coconut water and isotonic drink from fresh coconut water acai berry flavor
Premium Organic fresh coconut water, fresh coconut water with salted lemon flavor, fresh coconut water with watermelon flavor, fresh coconut water
Premium Organic Coconut Milk, Chocolate Coconut Milk, Coconut Milk
-Fresh coconut water with watermelon flavor
-Fresh coconut water with lemon flavor
-Fresh coconut water with matcha green tea flavor
-Fresh coconut water with mango and cherry flavors
Cocoxim and Vietcoco both use paper box coconut water production lines using UHT direct sterilization technology of Tetra Pak - the world's leading corporation in technological solutions for food and packaging The application of the most advanced technology to production will contribute to promoting and enhancing sales opportunities in difficult markets around the world, when Vietnamese products are "standard" and "quality" to put them on par with similar products from other countries” UFC Thailand and Obrigado Brazil invested in modern factories, advanced production lines, and achieved many high standards in the world
- Local brands can start small However, the cost of initial investment, marketing and recruiting high-quality labor is also very high
- For current potential foreign enterprises such as Thailand, Vietnam, Brazil, Malaysia, etc already have production bases and wish to expand the market Specifically, Australia through methods of entering foreign markets, investment costs will also be somewhat reduced, especially through exports Currently, Australia participates in many international trade agreements such as the CPTPP, making it even more convenient for member countries to export goods
Vietnam is in the top 6 coconut producing countries in the world, behind Indonesia, Philippines, India, Brazil and Sri Lanka In Vietnam, coconut is ranked fourth in production in perennial industrial crops, especially in the Mekong Delta: Ben Tre (over 72,000 ha), Tra Vinh (nearly 20,000 ha), Tien Giang (over 14,000 ha), Vinh Long (over 7,000 ha)
Currently, Vietnam in particular, canned coconut water has also become a popular trend among consumers Companies competing for raw materials for production is inevitable, but due to nature's favor with high coconut production, the competition for fresh coconut materials among companies in the same industry is relatively low Especially Cocoxim, thanks to the project to develop 10,000 hectares of Organic coconut gardens and have good support policies for farmers, the assurance of raw materials is increased
Currently, in the Australian market, there are products that promote health, so products with similar features to Cocoxim coconut water are very popular These products come from large companies/enterprises, so the prices are also very competitive The direct competitors of coconut water are rehydration sports drinks While they can be described as more artificial, they can be made in more custom ways to fit the specific needs of athletes For example, coconut water is an effective post-exercise rehydration solution and sports drinks can be created to benefit athletes before and during workouts Besides, plant drinks around the world are becoming more popular, including birch juice, aloe vera juice cactus water, maple water and watermelon juice However, these bouncy drinks do not have a significant presence in the European market
It is precisely because these alternative beverage products are not yet present in the European market, creating a great opportunity as well as a challenge for Betrimex The opportunity here shows
25 an open market, a great potential for Betrimex to export Cocoxim coconut water The challenge here comes from competing businesses once they exploit this fertile market pie Tetra Pak technology is increasingly being accepted and used by many businesses They will probably research to find new products with features like Cocoxim coconut water or even more
In 2018, 200,000 Australians changed from being overweight to being at a healthy weight with the best results aged 18-24 Sugar intake will be restricted in children and adults in the coming years Fresh coconut water is suitable for people of all ages and genders due to the need to use soft drinks or low-sugar milk derived from fruits: it is also suitable for all subjects with different spending levels The price is not too high and stable
Australians tend to choose modern grocery retailers over traditional retailers due to a wider range of products Furthermore, the size of these modern grocery retailers allows them to offer better prices, further encouraging consumers to choose this channel
So, the number of potential customers using Betrimex's coconut water products is very large Australians have high incomes, so they can be willing to pay for products that tend to be healthy and mostly less price sensitive Besides, the price competition from other businesses' products is huge Betrimex needs to make every effort to affirm the quality, use and specificity of the product at the same time, optimize the production process and use cost effectively to bring quality and competitively priced products to consumers
Cocoxim has 2 main material areas: Ben Tre coconut area and Organic coconut material area
- Vietnam is the sixth largest coconut growing country in the world, with more than 1.3 million tons of coconuts produced each year According to the Department of Horticulture Coconut growing area in Vietnam is about 175,000 hectares, of which, Ben Tre is the province that accounts for nearly half of the total coconut area in the country
- Ben Tre owns the largest coconut growing area in the country, over 70,000 hectares, leading in production with over 600 million fruits / year and take 40% of the total coconut production in the country
- Although coconut trees have high economic value and are the source of life for about 40% of the population of Ben Tre, with Betrimex, farmers can buy and sell at the best price, helping to stabilize the raw material area farmers are assured of production
- 10,000 ha organic coconut plantation for farmers
MODEL PEST
Macro-environment analysis in which "P" represents the Political situation (Political), "E" is economic (Economic), "S" is for society (Social) and "T" is technology (Technology )
The level of ownership risk when doing business in Australia is at Category 1, indicating that this risk is relatively low, or that the assets of foreign investors in Australia are relatively safe about them Australia is also one of the countries in category 1, Australia's transfer risk is at a safe level, foreign businesses face few barriers to transferring money out of the host country, which is an advantage for Australia in attracting foreign investors and seek foreign partners
Australia is in the top 20 countries with a high political stability index with 1.09 points Australia is a country with a strong and stable political situation, with little political unrest or terrorism; or the government is unlikely to be overthrown by political riots For foreign investors or partner customers, political stability can be considered a prerequisite for making market entry decisions
-The friendship and cooperation relationship between Vietnam and Australia has been increasingly consolidated and developed, especially since the establishment of a comprehensive partnership in September 2009 and was upgraded to a strategic partnership schedule in March 2018
-Working closely in regional and international forums, including ASEAN and ASEAN-led mechanisms, the United Nations, APEC, and ASEM, to support an open, inclusive, and equitable multilateral trading system equal and based on rules; coordinate the implementation of the CPTPP Agreement
- Reduce and move towards removal of trade barriers
- Australia is a country with a strong and stable political situation, with little political unrest or terrorism, with a political risk index of 1/7 (Source: Credendo)
-The Australian economy is a prosperous market economy, developed according to the Western economic model, dominated by the service industry (accounting for 68% of GDP), followed by agriculture and mining (accounting for 29.9% GDP)
28 -As of 2020, Australia is the 13th largest national economy by nominal GDP, the 18th largest by GDP adjusted, and the 25th largest exporter of goods and the second largest importer of goods 20 worlds
- It is estimated that the Consumer Price Index (CPI) in Australia will stand at 121.80 over a 12-month period In the long term, Australia's consumer price index (CPI) is forecast to trend around 119.36 points in 2022 and 121.86 points in 2023
- 7/2020, Australia's seasonally adjusted unemployment rate continued to increase to 7.5% in July 2020 (June unemployment rate was 7.4%), with the total number of unemployed people reaching 7.5% more than 1 million people This is the highest unemployment rate in more than 40 years (According to Australian statistics agency ABS)
- The Australian Government has invested more than A$600 million in agricultural research and development and supports the National Farmers' Federation initiative to grow agriculture into a
$100 industry billion Australian dollars by 2030 The Australian Government has sought investment from the UK to help drive exports and agricultural innovation 4.0 in Australia
- Australia's technology adoption and innovation is faster than many other developed countries, so in the future Australia may apply and improve technology in coconut water if the Australian market demand is large
- Betrimex's technology is advanced and ensures the quality of the output product to keep the unique flavor of coconuts, so Australians are very assured when using it
-The environmentally friendly production process meets the Australian people's trend of environmental protection
- Australians, with busy and stressful lifestyles, especially working people (accounting for a high proportion of Australia's age-based population structure), are increasingly concerned about health issues, the number of Australians with the increasing familiarity with vegetarian diets, light dishes are increasingly popular People have a better understanding of the associated health benefits of consuming natural products, so Australian consumers prefer natural and healthy drinks over high- calorie carbonated drinks and the availability of natural products variety of flavors like lemon, mango, lychee, coconut, etc
29 -Rising personal disposable incomes, a growing young working class and burgeoning organized retail and electronic commerce are some of the other factors that are expected to drive demand for water domestic packed coconuts for many years to come
-Australians have a hobby of sports and going to the beach, so coconut water is a suitable beverage for these outdoor activities
-Australia's growth rate is positive with increasing living standards and higher education levels, so people will tend to use products that are good for their health
-Betrimex captures consumer demand in the international market quite quickly and develops and improves products based on market demand.
COMPETITIVE ADVANTAGE
Betrimex has rich experience for export Investing in modern equipment, high-quality technology and using natural fuels, the products brought to the market have extremely good quality, safety assurance and many international certifications Besides, Betrimex diversified and expanded many different types of coconut water products to satisfy the needs of many customers
Vietnam is one of the countries that are exempt from tax when importing into Australia for most items, provided that the goods must meet the relevant rules of origin That helps reduce a large cost when Betrimex brings its products to this potential market.
BARRIERS TO ENTRY
4.5.1 Barriers From The Legal Environment
In Australia, case precedent is considered “the provincial flagship of common law”; “the foundation of a common-law justice system” Like other countries in the common law system - Common Law (UK, USA, Canada, New Zealand, etc), in Australia, case law is the main and important source, referenced when the court hears The parties have a dispute, through their attorney
He also uses case law to justify his lawsuit
- Policy risks: The rigors of Australia's import policy include detailed legal regulations on product standards, packaging, labeling and very strict health and quarantine regulations which may become a barrier to market access
- Other objective risks: In terms of technology, outdated technology that does not meet quality standards will definitely make products unable to reach this demanding Australian market
- Capital contributors: Because capital contribution is not only cash, foreign currency, etc It can also be done with other hard-to-value assets such as copyright and related rights, and intellectual property rights, other intellectual property, it is inevitable that cases of mispricing of such assets will be unavoidable If not promptly adjusted accordingly, litigation will occur In addition, there may be risks about registration of transfer of ownership, right to use assets contributed as capital, etc
- For employees: Some risks occur, especially in terms of working time (forcing employees to work overtime continuously, etc), the lower salary paid in the recorded contract, is not guaranteed, worker safety, etc b) Entering the contract:
- Contract disputes: The uncertainty in the formation of the contract will easily cause many legal risks for the parties Some of the most common cases are that the contract members do not understand the provisions of the law, confuse basic concepts, do not meet the terms of the contract, do not provide compliance services, compliance with the contract, not including risk reduction clauses in the contract
- Disputes outside the contract: Causing physical and mental harm, property of the other party c) State agencies
- Tax obligations: Tax arrears, tax administrative penalties, etc
- Social insurance: Social insurance arrears, be administratively sanctioned on social insurance, etc
4.5.2 Barriers From The Covid 19 Pandemic
Real household disposable income is expected to fall in 2020-2021 This can prompt consumers to purchase only essential goods, and opt for cheaper alternatives when purchasing household staples Consequently, a change in income levels can influence demand for consumption of coconut water
The consumer sentiment index measures how households feel about their financial situation and overall economic conditions When consumer sentiment is negative, consumers are less likely to purchase premium products ,organic produce and refreshing drinks, as these are generally more expensive and not necessary Consumer sentiment is expected to rise but remain negative in 2020-
2021 This may affect the purchase of Betrimex products
MARKETING STRATEGY
TARGET
-First year after launch: Increase profit margin by 5% per quarter thanks to efficiency
-Sales of products will increase by an average of 40% each year
-Maintain a substantial research and development budget (30% per sales) to drive the product into the future
-Achieve two to three-digit growth in the first three years
-We estimate that after 5 years from the product launch, it will capture 20% of the coconut water market share, and at the same time raise the brand awareness for Betrimex in the Australian market
- Increase sales and business sales
- Increase market share: Betrimex strengthens market penetration with strategies to attract new consumers to use the product such as: giving samples of coconut water with various flavors for customers to try, discounts when buying in bulk , applying many preferential programs through each session, etc, combined with strong and continuous communication such as advertising on social networking sites, participating in social campaigns, etc
- Increase loyalty: Increase loyalty by giving consumers peace of mind about product quality, special promotions for loyal customers such as: accumulating membership points after each purchase of Betrimex products
- Establish a brand position in the industry, the market for consuming coconut water and other drinks in Australia
STP STRATEGY
Market segmentation consists of identifying all potential customer groups that are viable for the purposes of marketing products International market segmentation is the process of identifying specific segments – whether they are country groups, other businesses or individual consumer groups
33 – of potential customers with homogeneous attributes across different countries, or within a single foreign market, that are likely to exhibit similar responses to a company’s marketing mix When identifying market segments, marketers first seek to understand the cultural factors that exist across marketplaces, as well as all of the other forces in the international marketing context
A market segment is a set of businesses or a group of individual consumers with distinct characteristics For a market segment to be viable in the eyes of the marketing team, it must pass four tests:
-Those within the segment should be homogenous or have similar characteristics
-The segment must differ from other groups and the population as a whole
-Sufficient demand must be present to make the segment financially feasible
-Methods to reach the market must exist, both in terms of physical delivery of the item and in terms of the marketing messages that would entice customers to make purchases
Table 6 Criteria in market segment
Criteria Consumer market segmentation variables
Geography Regions, urban and rural, plains, mountains, inland, international
Demography Age/generation, gender, income, occupation, education level, religion, nationality, race, marital status, family size, etc
Personal characteristics Class/class in society, personality, personality, life style, concept, etc
Action Buying occasions/opportunities, benefits sought, buyer readiness, usage, loyalty, etc
5.2.1.2 Applying theory to market segmentation for Betrimex
To better understand the coconut water consumption market in Australia, we rely on 4 main factors: demographics, geography, lifestyle and most importantly, habits of using coconut water
- Lifestyle and habit of drinking coconut water
+This segment is characterized by the fact that they do not have any significant offers They rarely go out, don't go to bars or restaurants, clubs or just the cinema They prefer to read a good book instead of watching TV These consumers are mainly found in the gray segment of the Minerva model, as they are often not able to conclude which segment they are suitable for, and they have difficulty finding the "value" of the Minerva model themselves in society
+This segment also varies greatly in regards to the amount of juice they consume Most of them use juice at home, daily, or almost daily, and most drink packaged and refrigerated coconut water This segment loves the original coconut water taste, and is loyal to the brand They buy according to the habits of their previous buying behavior and choose the
+This segment mainly consists of people living in larger cities, as about a third of this segment live in the capital area and only a few live in smaller suburban towns This segment consists of people slightly older than 40 years and in this segment there are slightly more women than men
- Lifestyle and habit of drinking coconut water
+This segment enjoys action in their daily lives and they often go to a coffee shop, to an entertainment center or mall, or they have an active sport hobby that they participate in during the week If they don't have to move, they hang out with friends and family every day to every week
+This segment cares about the local communities they live in, and they share a greater respect for sustainable solutions Consumers in this segment prefer bottled beverages to take away, as they are often busy and do not always have time to sit and enjoy drinks on the spot
+Another reason takeaway juices are attractive to this segment is that walking around with a takeaway box from a convenience store or vending machine has become a habit for consumers in this segment It is therefore making a statement about the convenience of having the right drink on the go
+ The majority of this segment lives in larger cities There are more women than men and they are usually 18-39 years old
Segment 3: Youth and self-consciousness
- Lifestyle and habit of drinking coconut water
35 +Consumers in this segment prefer to go out and dine out rather than eat at home, so they are the ones who frequent convenience stores, fast food shops, ect They go to clubs walking, watching movies, and they care a lot about music, which often leads them to concerts They often do these things with their family or friends, and since friends and family mean a lot to this segment, they often have a larger entourage The opinions of family and friends are of great value and they listen, share and express their feelings for each other
+Sports and hobbies are practiced both individually and collectively, and most prefer watching television to reading books In this segment, they pay attention to healthy products, they focus on passion for sports, more self-consciousness These consumers are also considered the most traveled segment, as they go on holiday abroad at least once per year Usually, when traveling, they will especially like soft drinks that help them quickly satisfy their thirst This segment is inspiring as long as it is trendy and therefore they are willing to try juices as long as it is cool, different and refreshing, as this segment considers them to be the leaders
+There are more women represented in this segment than men and it mainly concerns the younger generations of society
Segment 4: Family-oriented and casual segment
- Lifestyle and habit of drinking coconut water
+Family and friends are the two most important things in life for this segment, and they always evaluate and discuss everything before investing or trying something new They spend more time at home and spend more time in front of the computer or television than any other segment
+Most of this segment they often prefer products that bring health to family members more than ever They love juice products such as coconut water without preservatives The trend of choosing healthy products, taking care of health through juices every day
+The family group wants products that are both refreshing and healthy They prefer simple but high-quality products, mainly care more about health issues They also often consult the opinions of people around about healthy products, they are not too concerned about the price, as long as it is quality and brings health benefits to the family, they will be ready to buy
+Geographically, this segment spans the entire country In this segment, there are more women than men, but the majority of these consumers include the young generation aged 23-45
A target market is a segment or set of potential customers that a business selects and focuses its marketing efforts on in order to achieve its business goals
- The market that the business is able to meet well
- There are prospects in the future
- The competitive environment is less fierce
5.2.2.2 Applying the theory to Betrimex's target market in Australia
MARKET PENETRATION METHOD
Exporting is the simplest way to enter the international market that Vietnam is currently encouraging and promoting With available export experience and abundant investment capital, Ben Tre Betrimex Import-Export Joint Stock Company decided to penetrate the Australian market by direct export method Direct exporting is often considered appropriate for small-scale enterprises pursuing the goal of conquering foreign markets
The most basic strength of direct export is the ability to increase profits, actively participate in the distribution process, establish direct relationships with customers and markets, thus capturing the changes in the market dynamic and adaptive Direct exporting if less knowledgeable or not timely information about the world market and competitors, the risk in this form is not small
This export method requires investment capital and experts with knowledge and experience However, the company can achieve high levels of profit Regarding the organizational structure of the company, the following methods can be selected:
- Organize a separate import-export department of the company
- Establishing a branch or representative office in a foreign country
- Sign contracts with foreign distribution companies
MARKETING MIX STRATEGY
A product consists of a bundle of attributes that provide value for exchange partners A product can be either a good or a service
Product lines are groups of similar products within a particular category, whereas the product mix refers to the total number of products that a firm carries – these products don’t have to be similar
The main elements of packages affect international marketing programs will include packaging, labeling, aesthetics, label requirements
International product supports include installation, maintenance, servicing and repair, providing credit, answering questions by telephone or over the Internet, assisting businesses with inventory management, and more general activities such as providing market information Companies often have to perform these activities in order to reach their target markets
Brand equity – The unique benefits a product gains solely due its brand name create brand equity for the company Much of brand equity results from brand image, or the perceptions consumers have of the brand
Brand loyal customers seek out a specific name and often are willing to pay a higher price for the product that what the competition charges Brand loyal customers are less likely to switch brands or be enticed to try other brands due to marketing tactics such as coupons, discounts, bonus packs, and other methods In order to maintain brand loyalty, international marketers seek to instill brand insistence in customers
5.4.1.2 Applying theory to Betrimex's product strategy a) Product
To bring canned coconut water closer to consumers, Betrimex needs to "untangle" complex needs: a product of completely natural origin, delicious taste, ensuring food safety and suitable for a busy lifestyle that requires convenience And the answer is to put naturally sourced coconut water in pre-packed cans The application of direct UHT sterilization technology allows to keep the taste, nutrients and freshness of natural coconut water, without the use of preservatives and color additives
41 With the motto "Business must exist in harmony with the natural environment and become a good enterprise", Betrimex not only invests in production lines, but also develops certified organic material areas in Ben Tre Organic (EU, USDA, Australia, Japan, Korea) to ensure the best quality input materials.Betrimex is committed to applying new farming methods and modern, nature-friendly production systems to improve the ecosystem
For coconut farmers, Betrimex is always committed to supporting planting materials such as fertilizers, pesticides; training on organic farming techniques to sustainably maintain coconut gardens; output and buy coconuts in the garden These policies are to ensure the benefits of coconut farmers to jointly explore the potential and add value to the people
Canned coconut water is designed by UHT sterilized technology directly, so it can retain 100% of its pure flavor, destroy spoilage microorganisms, and bring products with safety and hygiene High quality food does not cause poisoning for users
The highlight of COCOXIM canned coconut water line is not only in the quality of the product inside, but also in the product's packaging Products are boxed on the most modern line of Tetra Pak (Sweden) and apply 6-layer packaging design technology, which can be recycled
Packaging uses Tetra Pak technology, each product box is composed of 6 different layers As a result, it is possible to recycle to use up to 50% - 55% of pulp, saving energy and protecting the environment
The outer packaging will still retain the old design but will change the language and measurement system to match the regulations of the foreign market When products are transported and exported to foreign markets through many different means, the packaging and product information printed on the packaging will also be carefully checked to ensure that it is not affected during long distance transportation
Betrimex's Cocoxim coconut water product is not just a normal beverage, but it also brings many benefits to the health of users Cocoxim meets the needs of priority and health-oriented subjects Contains many healthy ingredients:
-Coconut water has a special effect on beauty Coconut water contains cytokinins, which help fight aging Besides, coconut water contains lauric acid that balances the pH and keeps the connective tissue strong, while moisturizing the skin
42 -Replenish water for the body because coconut water is rich in potassium and minerals Many studies have confirmed coconut water to be effective when used to treat dehydration On the other hand, coconut water is also a natural diuretic and helps prevent urinary tract inflammation as well as reduce the risk of kidney stones
-Provides an abundant source of natural calcium for the body (with a capacity of 330ml can provide 4% of the daily calcium requirement) Children who drink coconut water regularly can help prevent rickets
* Brand : “Cocoxim give your taste a nature taste” b) Product list
IMPLEMENTATION PLAN
The marketing plan for CoCoxim's new product project to penetrate the coconut water market was proposed by the team within 12 months This is a long enough time for potential customers to recognize and perceive a new brand in the market To be specific, the team tabulated the stages of promotion as follows:
January From February to May From June to
-Increase awareness to 70% of potential customers
- Attract 5% of consumers in the target market to try the initial product when entering the market
(persuading customers to buy now) aware of the presence of Cocoxim brand and coconut water products
-Convince potential customers to receive more information about the product through the website and get traffic from social networks to the website
-Stimulating demand (persuading customers to buy now)
- Remind customers where products are sold through social media posts
- Changing user perception about using packaged coconut water to replace fresh coconut water
- Remind customers that they may need the product in the future with 50% of them at the level of “recall”
- Improve perceived value and brand association, 90% of customers who have used the product have positive reviews and associations with the brand
- Maintain customer awareness of products/services at the highest level
- Build a distinctive image for the brand
Remind customers that they may need the product in the future
-Increased opportunities to find partners
Method Sample sample- Sampling: with the form of "Face to Face", quantity of
- Facebook- Instagram Carousel Ads, Video ads and image ads
-Booking press to write articles / advertise images about Cocoxim coconut water products
-Youtube ads: 30s video ads, with the option to skip after 5s
-Sponsor health, culinary and aesthetic programs
TIMELINE
EVALUATE, MEASURE AND CONTROL
Four steps of the control process: a Restate the standard b Measure performance as it relates to the standard c Compare performance to the standard d Make a decision (make corrections or reward success)
JAN FEB MAR APR MAY JUN JUL AUG SEPT OCT NOV DEC
Market research to introduce new products
Free scratch card when buying 5 or more products.
Sponsor health, culinary and aesthetic programs.
Participating in trade fairs and exhibitions.
Controlling is one of the most important functions of management Its main objective is to ensure that an organization’s activities are advancing as planned The control process that all international marketing plans must carry out consists of four steps Each one of these is equally important and plays a big role in effective management a) Restate the standard
We are planning strict control to closely monitor product quality and customer satisfaction This will allow us to react very quickly in fixing any problems that may arise
Setting standards by setting goals, quantifying goals, and annual budgets is based on four factors:
• Quality: Cocoxim is a big brand in Vietnam with coconut products that meet the needs of refreshments and bring health and beauty values to consumers, so the most important thing to control is quality products Product quality directly affects the health of consumers and is also a decisive factor for the survival of businesses in any market Therefore, it is necessary to have a strict and strict control method for product quality, quality standards
• Supply chain: Effective management contributes to simplifying the process of finding and purchasing raw materials In addition, supply chain management makes it easy to screen and select reputable suppliers with good policies This not only ensures the quality of the products created, but also the advantage in setting a more competitive price compared to competitors in the same industry Besides, the manager of the production, warehousing, and transportation of goods can actively arrange work in a reasonable way; promptly coordinate departments flexibly in case unexpected problems arise
• Finance: helps control how the money of the business works
• Strategy: helping enterprises to be proactive in decision making, promptly exploiting opportunities and preventing or limiting risks in the external environment, promoting strengths, and reducing internal weaknesses b) Measure performance as it relates to the standard
Control focuses on areas that are important to the survival and growth of the organization
Input control -Product quality, processing process, supply chain
-Logistic process -Invoices, import and export documents -Resources: employee skills, abilities, values, motivations
-Managed by goal -Regulation and standardization of operating procedures (policies and rules)
Output control -Measure financial performance
-Funds -Performance goals, progress and performance evaluation
❖ For revenue and supply chain
Monitor sales closely to assess the effectiveness of marketing campaigns Evaluate sales and supply chain according to the following criteria:
➔ Send the correct shipment number
➔ Solve problems and respond to customer satisfaction
❖ For digital marketing: Check the website, online articles, and the content and responses of the articles Use several tools to measure the effectiveness of your digital marketing activities
➔ Conduct market research after 6 months of new product launch to measure customer awareness of the brand
➔ The attitude of the press c) Compare performance to the standard
Compare the results with the target and determine how much performance deviates from the standards selected in the first step d) Make a decision (make corrections or reward success)
❖ Identify and make a decision to take any necessary corrective action
❖ Based on actual market demand, Betrimex can determine the number of products sold by the month at different periods From there, well control and adjust spending costs to produce products as well as marketing costs accordingly
❖ The analysis to perform control
- Financial analysis, e.g ratio analysis, analysis of variance, cash flow, capital expenditure monitoring
- Market analysis - i.e market demand, market share, marketing resources
- Sales analysis - for example: sales targets, selling expenses
- Material resource analysis - analysis of plant and equipment utilization, other measures of productivity and product quality
- Systems analysis - review the effectiveness of the implementation and application of marketing resources
Exchange rate risk is the risk arising from fluctuations in market exchange rates There are 3 types of risks:
Transaction risk: Affects the transaction value of import and export activities, overseas investments or foreign currency earnings
Accounting risk: Risk due to differences in the valuation of foreign currencies in the accounting accounts on the balance sheet (usually occurs with multinational companies)
Economic risk: The risk caused by fluctuations in the value of assets of the enterprise due to changes in exchange rates
62 Transaction risks that directly affect cash flow, revenue, costs as well as profits of businesses
=> are the most important risks Accounting risks and economic risks are usually reflected in the books, may not incur actual losses => need to be managed closely
Trade risk (Buyer's risk) is the risk arising from the buyer's inability to perform the contract Cases of trade risk: Buyer is busted
There are 3 types of risks:
- Risks arise during export production, transportation and delivery
- Risks due to poor operating and maintenance conditions of the buyer (goods risk)
- Risks due to carelessness when purchasing cargo insurance => Is the risk usually borne by the exporting company (Betrimex)
- Market Risk: Market risk arises from the price movement of a financial instrument Including risks due to fluctuations in stock prices, interest rates, etc
- Credit risk: This type of risk usually arises when a business fails to fulfill its credit obligations to counterparties Betrimex needs to handle its own credit obligations by ensuring that it always has sufficient cash flow to pay its counterparty bills in a timely manner Otherwise, partners or suppliers may stop extending credit to the company or, more dangerously, terminate business with the company altogether
- Liquidity risk: Liquidity risk includes asset liquidity and operational financing liquidity risk
A general downturn or seasonal sales can pose a significant risk if Betrimex suddenly doesn't have enough cash to pay the basic expenses needed to continue operating as a business
- Operational Risk: Operational risk arises from the normal course of business of the company Operational risks include lawsuits, fraud risks, staffing issues, and business model risks, which are risks that Betrimex's growth and marketing models could prove to be incorrect, accurate, or incomplete
Impact of covid on business activities: The complicated developments of the Covid-19 pandemic continue to have a heavy impact on import and export activities and commodity trading
Risk of pricing strategy: With penetration pricing strategy (low price), customers only choose to buy the product at the beginning out of curiosity, but when the price starts to increase or close to the product price of a competitor's company, they may come back to buy a competitor's product
The contingency plan for Betrimex's 2022 marketing plan will focus on promotion and marketing activities on e-commerce platforms as well as social networks If the promotion and marketing program for consumers is successful, it is possible to prolong the program or increase the target to maximize sales
In addition, if PR activities are found to be ineffective or affected by Covid 19, they can be turned into promotions or advertising, avoiding wasting budget and achieving the goal of maximizing capital efficiency
CONCLUSION
The Australian market is now in need of products that bring high quality and health to people COCOXIM's coconut water product is a product of completely natural origin, delicious taste, ensuring food safety and suitable for busy lifestyles, in need of convenience It also allows the taste, nutrients and freshness of natural coconut water, without the use of preservatives and color additives Therefore, consumers can be completely assured when adding a sufficient amount of this drink in the family's daily diet Product lines, fruit juices and drinks from coconut water will be brought to the Australian market with a market penetration pricing strategy, to initially gain the trust and love of customers Betrimex targets customers who are family groups that care a lot about health and have high demand for the quality of products Betrimex will apply a push strategy and intensive distribution selection for product distribution in Australia Promotion strategies are also designed to widely promote the product line to consumers in Australia And with the analysis and comments throughout as we have presented above, COCOXIM's coconut water product is a healthy product line for the family, it is completely natural and can be used by all ages We believe that when the product is exported to the Australian market, it will bring success and mark an important step for the COCOXIM brand in maintaining and developing its quality coconut water product lines i
FINANCE
Estimated Cost For The First Year
AVERAGE PRICE 1 PRODUCT: 3.25 AUD Table 9 Estimated Cost For The First Year
Free scratch card when buying 5 or more products
Refresh the company website to make it easier to see, more eye-catching
Post a flash banner on the homepage of the company website (4 times per year)
Develop and maintain and update the website
Polls, surveys, interviews, collect, analyze and evaluate information
Social Media Youtube (3,000 AUD/ month ) Run in 7 month 21,000 AUD ii Instagram (3,000 AUD/ /month) Run in 4 month 12,000 AUD
Facebook (3,000 AUD/ /month) Run in 4 month 12,000 AUD
Twitter (3,000 AUD/ /month) Run in 8 month 24,000 AUD
Categories / Coupons / Promotion Calendar, etc 1,000 AUD
Visual design (coupon/category, etc.) 600 AUD
PR cost ● Join the Spring Festival
● Sponsor health, culinary and aesthetic programs
● Participating in trade fairs and exhibitions
Work cost Negotiate with distributors 30,000 AUD
Costs related to exporting products
Production cost (0.42 AUD/ product) ~ 50,400 AUD
Labor costs in Australia (Management) 45,000 AUD
Other costs Costs incurred 5,000 AUD
Break-Even Analysis - Even
Discount for supermarkets and convenience stores: ~0.8125 AUD/ product
Sales Forecast For 5 Years
Betrimex distributes our products through 5 main Australian distribution channels: Woolworths, Coles supermarkets, Aldi Stores Supermarket, Metcash Trading Limited Australasia, 7- Eleven It is estimated that each year, product consumption will increase by an average of 40%, that is, divided equally among supermarkets and convenience stores, sales per distributor will increase by 5-8% per year
Expect to sell about 10,000 products/month => 1 year consume about 120,000 products
YEAR QUANTITY OF PRODUCTS SALES FORECAST
Forecast Costs And Profits For 5 Years
Because in the first year, it is necessary to focus on promoting communication campaigns, so the cost is high But in the following years the funding programs will be reduced So the cost will decrease by 10-15% in the following years
2 nd 549,900 AUD 512,042 AUD 37,858 AUD 634,832,144 VND
3 rd 768,761 AUD 405,242 AUD 363,519 AUD 6,095,766,975 VND
4 th 1,080,108 AUD 404,876 AUD 675,232 AUD 11,322,810,984 VND
5 th 1,498,110 AUD 398,763 AUD 1,099,347 AUD 18,434,698,426 VND
TOTAL 4,286,879 AUD 2,374,673 AUD 1,912,206 AUD 31,742,619,600 VND v