final exam assignment international marketing plan for cocoxim coconut water products to australia market

THE FINANCIAL

FINAL EXAM ASSIGNMENT:

INTERNATIONAL MARKETING PLAN FOR COCOXIM COCONUT WATER PRODUCTS

TO AUSTRALIA MARKET

Member’s Name : Nguyễn Hoài Bảo Trâm – 1921005712

Đặng Bảo Trâm – 1921005710

Nguyễn Thị Bích Huyền – 1921005080

Class: CLC_19DMA02

TP.Hồ Chí Minh – 2021

a

TABLE OF CONTENTS

TABLE OF CONTENTS aLIST OF ABBREVIATIONS eLIST OF TABLES fLIST OF PICTURES gABSTRACT h

CHAPTER 2: SITUATION ANALYSIS 5

2.1 MARKET ANALYSIS IN VIETNAM AND THE WORLD 5

2.1.1 The Situation Of Coconut Water Production In Vietnam 5

2.1.2 Overview Of The World Market And Export Prospects 6

2.2 REASONS FOR CHOOSING TO PENETRATE THE AUSTRALIAN MARKET 7

2.2.1 Market The Company Has Not Penetrated But Has The Ability To Export 7

2.2.2 Potential Markets And Main Areas Of Activity Of The Company 8

2.3 MARKET ANALYSIS IN AUSTRALIA 10

4.5.1 Barriers From The Legal Environment 29

4.5.1.1 Features of national law 29

c

4.5.1.2 Objective barrier 29

4.5.1.3 Subjective barrier 30

4.5.2 Barriers From The Covid 19 Pandemic 31

4.5.2.1 Real household disposable income 31

4.5.2.2 Consumer sentiment index 31

CHAPTER 5: MARKETING STRATEGY 32

5.2.3.2 Applying the theory to Betrimex's positioning in Australia 38

5.3 MARKET PENETRATION METHOD 39

5.4 MARKETING MIX STRATEGY 40

5.7.2 Applying the theory 59

5.7.3 Anticipate Post-Penetration Risk 61

5.7.3.1 Exchange rate risk 61

7.1 Estimated Cost For The First Year i

7.2 Break-Even Analysis - Even iii

7.3 Sales Forecast For 5 Years iii

7.4 Forecast Costs And Profits For 5 Years iv

APPENDIX 2: REFERENCES v

APPENDIX 3: ASSIGNMENT SHEET vi

e

LIST OF ABBREVIATIONS

Abbreviations Stands for

CPTPP Comprehensive and Progressive Agreement for Trans-Pacific Partnership TTC Thanh Thanh Cong

UHT Ultra-high temperature

HACCP Hazard Analysis and Critical Control Points GMP Good Manufacturing Practices

SSOP Sanitation Standard Operating Procedures BSCI Business Social Compliance Initiative

NOP National Organic Program

USDA United States Department of Agriculture JAS Japanese Agricultural Standards System ICS Integrated Cargo System

CPI Consumer Price Index

VCCI Vietnam Chamber of Commerce and Industry

QSRs Quick-service restaurants LDCs Less developed countries GMO Genetically modified food

PR Public relations

APCC Asia-Pacific Coconut Association CAGR Compounded Annual Growth rate

LIST OF TABLES

Table 1 Potential market analysis 9

Table 2 Spending structure of Australian households before the COVID-19 pandemic 12

Table 3 Cross SWOT model of Betrimex company when exporting to Australia 17

Table 4 Analysis of the Australian Hofstede model in 2018 20

Table 5 Some products of Cocoxim and potential competitors 22

Table 6 Criteria in market segment 33

Table 7 Prices Of Competitor's Products 47

Table 8 Control Method Table 60

Table 9 Estimated Cost For The First Year i

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LIST OF PICTURES

Figure 1 Betrimex brand logo 2

Figure 2 Vietnam's drinking and bottled water export potential to Australia 13

Figure 3.Global Packaged Coconut Water Market 14

Figure 4 Organization structure of Betrimex 15

Figure 5 Warehouse of Betrimex 16

Figure 6 Elements of the Hofstede model 19

Figure 7 Australia's Hofstede Model 2018 19

Figure 8.Betrimex's 5 Forces model scale for exports of Cocoxim 26

Figure 9 Key External Drivers 2013 - 2026 31

Figure 10 Illustration of the positioning chart 37

Figure 11 The positioning chart of Betrimex 39

Figure 12 Original Coconut Water 42

Figure 13 Organic Coconut Water 42

Figure 14 Coconut Water With Lotus Seed 43

Figure 15 Young Pineapple Coconut Water 43

Figure 16 Organic Coconut Water With Pineapple Juice 43

Figure 17 Coconut Water With Citrus Juice 44

Figure 18 Isotonic drink from fresh coconut water Acai Berry flavor 44

Figure 19 Isotonic drink from fresh coconut water 44

Figure 20 Market share of Supermarket and Grocery Stores in Australia 50

Figure 21 Template For Running Ads 54

Figure 22 Timeline 58

ABSTRACT

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 International marketing strategy involves formulating marketing strategy across a new country Realizing that the Australian market is a potential market, our team proposed "International marketing plan for Cocoxim coconut water product to the Australian market" A number of different approaches have been taken in studying international marketing strategy, including situational analysis, analysis of the internal environment, analysis of the external environment, target market description, international marketing goals and objectives, marketing program, evaluation, measurement and control

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PREAMBLE

In the globalized business environment, it is becoming more and more common for businesses to reach out to foreign markets To succeed in the foreign market requires the business itself to have thorough research and analysis to come up with an effective communication plan to penetrate and expand into the international market Currently, coconut water is a beverage trend of many countries in the world and Vietnam because consumers choose products of natural origin, without preservatives It is estimated that the total revenue from canned coconut water in the world reaches more than 1 billion USD Grasping demand and trends, Betrimex has launched Cocoxim canned coconut water market with full certifications of quality and variety of flavors This opens up opportunities for Betrimex, especially in the context of building the Ben Tre coconut brand from Vietnam With the growth of the world's coconut products industry is forecasted to be up to 25%/year, our team strongly believes in the proposed international market penetration strategy for Betrimex, specifically Australia A specific marketing plan will play a decisive role in the smart market penetration of Cocoxim coconut water, rapidly increasing the brand awareness of Ben Tre products - bold Vietnamese homeland in foreign markets For that reason, our group decided to conduct research on the topic:

“International Marketing Plan For Cocoxim Coconut Water Product To The Australian

Market.”

The content of the plan consists of 6 chapters: - Chapter 1: Introduction

- Chapter 2: Situation Analysis

- Chapter 3: Analysis of internal environment - Chapter 4: Analysis of marketing environment - Chapter 5: Marketing Strategy

- Chapter 6: Conclusion

CHAPTER 1: INTRODUCTION

1.1 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)

Figure 1 Betrimex brand logo

1.2 FIELD OF ACTIVITY

- Producing, processing and trading in coconut products, processed agricultural products for export - Export of agricultural products

- Producing charcoal from dried coconut shells

- Main export markets: Asia, Europe, America & Africa

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1.3 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

1.4 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

1.5 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

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CHAPTER 2: SITUATION ANALYSIS

2.1 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

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

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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)

2.2 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

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 (Sở Công 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

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Table 1 Potential market analysis (Việt Nam Export, n.d.)

Market Geographical

Distance Logistic Costs

Market Characteristics And Company Capacity

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

- Difficult markets

-Prefer healthy drinks, especially organic

- Great level of competition

Germany Long-distance High cost, complicated

process

-Difficult markets -Prefer healthy drinks

-The competition in the domestic industry is fierce

Australia close distance Relative cost, preferential tariff

-Difficult markets -Prefer healthy drinks

-There is much export support between the two countries -Trade relations between the two countries

➢ So Betrimex can choose to penetrate Australia market

2.3 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)

2.3.1 Market Demand

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

2.3.2 Market Trend

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

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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:

Table 2 Spending structure of Australian households before the COVID-19 pandemic

Sector Proportion

Housing, water, electricity, gas and other fuels 22.9%

➢ The table shows that Australians are interested in non-alcoholic beverages and health products (Goglobal, 2020)

2.3.3 Market Growth

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

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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

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

Figure 4 Organization structure of Betrimex

Source: Betrimex (Betrimex, 2021)

3.2 POWER

3.2.1 Financial Strength

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

3.2.2 Material Resources

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

Figure 5 Warehouse of Betrimex

Source: Betrimex (Betrimimex, n.d.)

3.2.3 Human

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

-Coconut water products are diverse, suitable for many customer files

-Building and establishing a distribution channel can be challenging

-Brand awareness is still quite low in foreign countries

-Enjoy preferential tariffs

(S-O)

-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

(W-O)

-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

Threat (T)

-The rigor in Australia's import and export policy -Technology potential in Australia

-The market is increasingly competitive

-Alternative products

(S-T)

-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

-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

Figure 6 Elements of the Hofstede model

Figure 7 Australia's Hofstede Model 2018

Source: User Feedback in the App Store: A Cross-Cultural Study (2018)

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

-Use team power

-Many people make the same decision

Individualism and collectivism

Individualism: High

-Respect time and freedom needs

- Respect privacy

- Respect the results

-Don't ask for a lot of personal information

-Encourage debate and expression of personal ideas

Men's Rights and Women's Rights

Masculinity: Cao

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 term plans more than day-to-day happenings - Accept change and risk

long-Don't impose unnecessary rules

21 Long-term and

medium-term orientation

Low (focus on

medium/short term)

-Do not overestimate cultural and traditional values in recruiting and working

-Focus on achieving quick results

Change as needed

Self-satisfaction/restraint

High satisfied)

(self 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

4.2 FIVE - FORCES MODEL 4.2.1 Competitor

❖ 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

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

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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

-Fresh coconut water:

Premium Organic fresh coconut water, fresh coconut water with salted lemon flavor, fresh coconut water with

watermelon flavor, fresh coconut water -Coconut milk: Premium Organic Coconut Milk, Chocolate Coconut Milk, Coconut Milk

- 100% fresh coconut water -Fresh

coconut water with

watermelon flavor -Fresh

coconut water with lemon flavor -Fresh

coconut water with matcha green tea flavor

- Pure

coconut water (100% pure) -Fresh

coconut water with mango and cherry flavors -Fresh coconut milk

4.2.2.1 Technology

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

4.2.2.3 Material source

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

4.2.3 Alternative Products

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

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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

4.2.4 Customers

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

- 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

❖ Organic Plantation For Farmers

- 10,000 ha organic coconut plantation for farmers

- Organic farming: Do not use chemical fertilizers, do not use chemical pesticides, do not graze livestock and do not fish in the coconut garden organic/organic fertilizers Killing pests by natural methods, coconut soil is converted organically for 2-3 years according to American and European organic standards Coconuts are purchased when they are old enough, transported and produced in a closed manner to ensure quality

- Accompanying with farmers: Organizing training on organic farming techniques with experts, consulting and guiding the selection of agricultural materials according to Organic standards The price of buying coconut Organic is higher than the price of regular coconut and the output is spent

- Checking throughout the process: ICS department - Internal inspector (trained and certified by Control Union) regularly conducts inspections of coconut farmers' farms with a minimum frequency of 1 time / month to ensure the quality and productivity of coconut gardens

4.2.6 Five-Forces Model

Total score: 17 indicates a high level of competition

Figure 8 Betrimex's 5 Forces model scale for exports of Cocoxim

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)

4.3.2.Economic

-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)

-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)

4.3.3 Technological

- 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

4.3.4 Social

- 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

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-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

4.4 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

4.5.1.2 Objective barrier

- 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

4.5.1.3 Subjective barrier a) Internally

- 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 - Administrative procedures

- Environmental Protection