--- Page 1 --- --- Page 2 --- Kinh Do’s Entrepreneurship Report International School of Business BUSM1006: Enterprise, Innovation and Markets Ms. Nguyen Thi Phuong July 21, 2024 Tran Le Thien Vuong Vuong My Chau Luu Hong Phuc Tran Do Phuong Anh --- Page 3 --- Table of contents: I. EXECUTIVE SUMMARY 4 II. EVALUA TION OF CURRENT INNOV ATIONS 5 Innovation 1: Cage-free eggs 5 Innovation 2: Sustainable packaging 5 III. CURRENT MARKETING ANAL YSIS: 7 1. Marketing environment 7 2. Kinh Do Mondelez SWOT analysis (see Bibica and Kido SWOT in appendix) 7 3. Target market 8 4. Marketing mix 9 5. Perceptual Positioning Map 10 IV. CURRENT MICROECONOMICS ANAL YSIS 13 1. Demand analysis 13 2. Supply analysis 13 3. Price elasticity of demand 15 4. Market structure 15 V. PROBLEM IDENTIFICA TION 17 VI. THE NEW INNOV ATION & TARGET MARKET PROFILE 19 1. Innovation 19 2. Target Market Profile 19 VII. THE NEW MARKETING MIX STRA TEGY 20 1. Product 20 2. Price 20 3. Place 20 4. Promotion 21 References 22 Appendices 23 1. Bibica SWOT analysis 23 2. Kido SWOT analysis 23 --- Page 4 --- I. EXECUTIVE SUMMARY This entrepreneurship report aims to provide a thorough analysis of Mondelez Kinh Do''''s innovations, marketing environment, and microeconomic factors based on the current context within the Vietnamese bakery industry . Two prominent innovations—cage-free eggs and sustainable packaging—showcase Kinh Do’s environmental awareness and its capture of sustainable trends. The marketing analysis depicts a detailed comparison between Kinh Do and its two competitors, Bibica and KIDO, regarding the marketing environment, SWOT , target market, marketing mix, and perceptual positions. In addition, demand and supply patterns, as well as price elasticity and market structure, contribute to the identification of Kinh Do’s problem, which is the gap in the desire of customers to relish mooncakes more frequently . Seizing this opportunity , the "Golden Moon" Homemade Mooncake Kit has been proposed to meet diverse customer preferences and improve Kinh Do’s revenue. Furthermore, a new target market profile and marketing mix convincingly demonstrate the feasibility of this innovation. --- Page 5 --- II. EVALUATION OF CURRENT INNOVATIONS Innovation 1: Cage-free eggs Cage-free eggs are an important innovation in the bakery industry , inspired largely by the need to satisfy changing social demands for better animal care. This idea was motivated by process need to change egg production processes to reduce the use of traditional battery cages since battery cages are some of the worst types of confinement any animal faces on factory farms (Waxman, 2022). The aspect of this innovation is meeting social needs , which means altering the way eggs are produced to enhance animal welfare and match customer expectations. This innovation not only solves social issues but also allows manufacturers to better match legal trends and market desires for ethically produced food items. This invention may be identified as duplication since it duplicates an existing product while improving the manufacturing process to meet ethical standards. The essential dimension of this innovation is process innovation, which means changing the way eggs are produced to enhance animal welfare and match customer expectations. Innovation 2: Sustainable packaging Mondelez Kinh Do''''s shift towards sustainable packaging in the Vietnamese marketplace represents a noteworthy innovation that addresses environmental concerns and positions the company for future growth. Mondelez Kinh Do has implemented a multi-pronged approach: – Material change: By 2021, they achieved 95% packaging recyclability (The Saigon Times, 2021), switching from plastic to recyclable materials like paper and cardboard. – Packaging optimization: The organization works towards reducing the amount of packaging material by 20% for all new product development and re-innovation initiatives (The Saigon Times, 2021). – Consumer awareness: Partnering with PRO Vietnam, Kinh Do is implementing educational programs to raise consumer awareness about recycling habits and the advantages of sustainable packaging (Hoai, 2022). Type of innovation: Sustainable packaging combines existing ideas and technologies in a novel way. Mondelez Kinh Do isn''''t inventing entirely new materials, but rather synthesizing existing recyclable and reusable materials with established production processes to create a more sustainable packaging solution. Source of innovation:
Trang 2Kinh Do’s EntrepreneurshipReport
International School of Business
BUSM1006: Enterprise, Innovation and MarketsMs Nguyen Thi Phuong
Trang 3Table of contents:
Innovation 2: Sustainable packaging 5
2 Kinh Do Mondelez SWOT analysis (see Bibica and Kido SWOT in appendix) 7
Trang 4I.EXECUTIVE SUMMARY
This entrepreneurship report aims to provide a thorough analysis of Mondelez KinhDo's innovations, marketing environment, and microeconomic factors based on thecurrent context within the Vietnamese bakery industry Two prominentinnovations—cage-free eggs and sustainable packaging—showcase Kinh Do’senvironmental awareness and its capture of sustainable trends The marketinganalysis depicts a detailed comparison between Kinh Do and its two competitors,Bibica and KIDO, regarding the marketing environment, SWOT, target market,marketing mix, and perceptual positions In addition, demand and supply patterns, aswell as price elasticity and market structure, contribute to the identification of KinhDo’s problem, which is the gap in the desire of customers to relish mooncakes morefrequently Seizing this opportunity, the "Golden Moon" Homemade Mooncake Kithas been proposed to meet diverse customer preferences and improve Kinh Do’srevenue Furthermore, a new target market profile and marketing mix convincinglydemonstrate the feasibility of this innovation.
Trang 5II EVALUATION OF CURRENT INNOVATIONSInnovation 1: Cage-free eggs
Cage-free eggs are an important innovation in the bakery industry, inspired largelyby the need to satisfy changing social demands for better animal care This idea was
motivated by process need to change egg production processes to reduce the use
of traditional battery cages since battery cages are some of the worst types ofconfinement any animal faces on factory farms (Waxman, 2022) The aspect of this
innovation is meeting social needs, which means altering the way eggs are
produced to enhance animal welfare and match customer expectations Thisinnovation not only solves social issues but also allows manufacturers to bettermatch legal trends and market desires for ethically produced food items This
invention may be identified as duplication since it duplicates an existing product
while improving the manufacturing process to meet ethical standards The essential
dimension of this innovation is process innovation, which means changing the way
eggs are produced to enhance animal welfare and match customer expectations.
Innovation 2: Sustainable packaging
Mondelez Kinh Do's shift towards sustainable packaging in the Vietnamesemarketplace represents a noteworthy innovation that addresses environmentalconcerns and positions the company for future growth.
Mondelez Kinh Do has implemented a multi-pronged approach:
– Material change: By 2021, they achieved 95% packaging recyclability (The
Saigon Times, 2021), switching from plastic to recyclable materials like paper andcardboard.
– Packaging optimization: The organization works towards reducing the amount
of packaging material by 20% for all new product development and re-innovationinitiatives (The Saigon Times, 2021).
– Consumer awareness: Partnering with PRO Vietnam, Kinh Do is implementing
educational programs to raise consumer awareness about recycling habits andthe advantages of sustainable packaging (Hoai, 2022).
Type of innovation: Sustainable packaging combines existing ideas and
technologies in a novel way Mondelez Kinh Do isn't inventing entirely new materials,
but rather synthesizing existing recyclable and reusable materials with established
production processes to create a more sustainable packaging solution.
Source of innovation:
Trang 6– Plastic pollution crisis: Plastic waste is a major environmental concern in
Vietnam According to the World Bank (2022), Vietnam discharges an estimated3.1 million metric tons of plastic waste annually.
– Shifting consumer preferences: Vietnamese consumers are increasingly
environmentally conscious and demand sustainable products 84% ofVietnamese consumers are willing to pay more for sustainable packaging(Nguyen, 2024).
Dimensions of Innovation:
– Product: Create a slight impact on the core product, but significant changes
to the packaging materials and design.
– Process: Significant transformation in production processes to accommodate
new materials, reduce waste, and optimize packaging design.
Evaluation of the innovation:
Strengths: This innovation has contributed to solving an urgent environmental
problem since plastic waste is a major concern in Vietnam Additionally, asconsumers increasingly value sustainability, this innovation could significantlyimprove Mondelez Kinh Do's brand image as a responsible organization andencourage other companies in the same industry to adopt sustainable packagingmeasures.
Weaknesses: Initial investment in sustainable materials can be relatively high, which
can be a challenge for Kinh Do to consider the weights between prices andsustainability Also, only about 11-12% of plastic waste gets recycled in Vietnam(Nam, 2024), which indicates an inadequate recycling infrastructure in Vietnam.
Trang 7III CURRENT MARKETING ANALYSIS:1 Marketing environment
Micro environment:
● Customers: Middle to high-income, 23 to 55 years old
● Competitors: Bibica, Kido
Macro environment:
● Politics: Kinh Do Bakery capitalizes on Vietnam's stable political situation andfavorable food sector regulations The Vietnamese government is dedicated toassisting investors in overcoming difficulties, transforming threats intoopportunities, and attaining fast and durable growth (Mai, 2024).
● Economics: Vietnam's emerging economy enhances consumer buying powerboosting sales A favorable forecast for Vietnam's consumption in 2024 will beinfluenced by stable economic development translating into greater financialflexibility, with the impacts of the epidemic progressively diminishing (VietNamNetNews, 2024).
● Social: Demand for easy and packaged food and baked items is increasing dueto urbanization and people's busy lifestyles.
● Technology: Machinery and technological advancements can potentially increaseefficiency and quality.
● Environment: Kinh Do Bakery needs an eco-friendly approach implementation,such as green supply and waste elimination, to meet rising customer trends andregulations for environmental sustainability.
● Legal: Kinh Do must comply with Vietnamese laws and regulations regardingenvironmental protection, labor, and privacy.
2 Kinh Do Mondelez SWOT analysis (see Bibica and Kido SWOT inappendix)
Kinh Do is well recognized Kinh DoMooncake has been a favorite brandamong Vietnamese customers forMid-Autumn Festival Delights for the
Kinh Do relies on the national market.Kinh Do Bakery concentrates on thelocal market, which may posechallenges when dealing with
Trang 8last 22 years (VietNamNet News,2020).
Kinh Do Bakery is one of the leadingbrands among Vietnameseconfectioners.
economics and national marketvolatility (Mỹ Kiều, 2024b).
Kinh Do Bakery faces a prominentrivalry There are several majorcompetitors with notable reputationsand a varied product line (Mỹ Kiều,2024b).
The Vietnamese market for sweets andconfectionery is predicted to growshortly.
E-commerce and social platforms helpreach out to more consumers.
More people enjoy the sense of bakinghomemade mooncakes and givingfriends and others as gifts Baking is anamazing experience in that stress canbe relieved and creativity can bepromoted Joining workshop sessionshelps kids and parents enjoy themoment of fun and relief (Tham GiaWorkshop Làm Bánh Trung Thu, HoạtĐộng Ý Nghĩa Dịp Tết Đoàn Viên,2023).
Adverse price movements and inflationincrease costs.
Become reliant on outsourcedresources (Nguyen & Ha, 2013).
The bakery and candy sector is verycompetitive, with several significantenterprises and global brands present.
3 Target market
Demographic Families withchildren
Mainly children andyoung adult
Low to
Both individualsand familiesWide range fromchildren to adultLow to
Families with kidsMostly children andyoung adult
Strong in urbanareas, growing inrural
Trang 94 Marketing mix
Kinh Do Mondelezmanufactures andprocesses
confectionary withmultiple local brandsincluding Solitesnack cakes, KinhDo mooncakes,AFC crackers, andCosy biscuits.
Kido Bakeryproduces anddistributes a widerange of products of4 main lines: FreshCake, Moon Cake,Snack Popcorn,Potato Chips, andEnnak (spicednoodle crisps)
Bibica concentrateson its manufacturingexpertise inconfectionery
product lines, whilecontinually
expanding anddiversifying itsproduct offering tofulfill all clientdemands.
According to KinhDo’s 2024 pricequote (Bánh TrungThu Kinh Đô, 2024),Golden Moon MoonCake is pricedbetween 570,000VND and 1,300,000VND Black & GoldKinh Do Moon Cakecosts between640,000 VND and5,000,000 VND.
According toBibica’s mooncake
Psychographic Enjoy sweet and
baked goodsEmphasize quality,taste, and brandreputation
Enjoy conveniencefoods
Emphasize health,tradition, andinnovation
Enjoy snacks andsweets
Emphasize qualityand health
Behavior Everyday snack,gift-giving
Taste, conveniencesnack, affordability
Daily meals, casualsnack
Nutritional value,convenience, taste,affordability
Regular snacking,gifting
Taste, quality,affordability
Trang 10Single items costbetween 55,000 and171,000 VND.
throughout 64provinces and citieswith more than 300distributors and200,000 retail pointsExported to morethan 30 countriesaround the world,including the US,Japan, Thailand,Korea, Singapore…(Bánh Trung ThuKinh Đô, 2020)
More than 200strong distributors, achain of 30 Kinh DoBakery stores,nearly 120,000points of sale(KIDO, 2024)
3,000 supermarkets,convenience storechains, anddistribution systemswith more than140,000 stores fromSouth to North (Vy,n.d)
campaigns, andadvertising throughsocial media suchas Facebook, andYoutube.
Launch specialproject forMid-autumn festival
Promoted throughTVC, large creativedesigned billboards.
word-of-mouth,TVC, Facebook, andMusic Marketing.(Vy, n.d)
Trang 115 Perceptual Positioning Map
The price and market share matrix shows that Mondelez Kinh Đô maintains a highmarket share with medium prices, reflecting a strategy centered on affordability andwide consumer acceptance KIDO, with a large market share and lower prices,targets consumers focused on strong brand loyalty or perceived value Bibica, givenits low market share and low prices, appears to be a smaller competitor in theindustry, appealing to a more price-sensitive demographic (VIETDATA, 2023) Tobetter their competitive positions, Mondelez Kinh Đô should continue to innovate tomaintain their pricing, KIDO could try improving perceived value to justify highercosts and Bibica might focus on growing brand awareness and attractiveness toboost market share.
Trang 12IV CURRENT MICROECONOMICS ANALYSIS1 Demand analysis
The Mid-Autumn Festival is expected to have a beneficial impact on fresh cakeproduction in the third quarter, raising the revenue of the third quarter revenue threetimes as much as the first and second ones (VIRAC, 2023) According to aninvestigation from the Ministry of Industry and Trade, the confectionery productcategory's sales rise is around 15% annually, with global industry revenues projectedto be 51 trillion VND (Antv, 2023) While confectionery goods from ASEAN nationshave their tariffs on entry eliminated and are expanding in volume in Vietnam, localproducts continue to dominate the market, accounting for more than ninety percentof the market share (Tran, 2023).
According to a firm with 18 years of experience producing and marketing sweets inVietnam, opulent and original designs are hardly a "monopoly" of items abroad (Antv,2023) Various local confectionery companies have courageously ventured andevolved technology to enhance product quality, resulting in market dominanceacross all sectors, from ordinary to high-end The Vietnamese confectionary marketpresently sees fierce competition from both domestic and foreign enterprises.
Factors that cause the demand curve to:Shift left:
– Lifestyle change: Consumer trends in healthy diet lifestyle change may lead to adecrease in confectioner consumption.
Trang 13To improve operational efficiency and product quality, Mondelez Kinh Do is making atransition to digitalization and technological innovation The major show-stopper isthe implementation of an automated sales system (Lan, 2023), which helps optimizethe processing process and customer interaction In addition, the company alsoapplies automation software to ensure strict product quality.
Factors that cause the supply curve to shift:Shift left:
● Increased price of wheat: The Russian-Ukrainian conflict is one of the reasons forthe increase in bread production costs, with the average wheat price in Vietnamrising by over 6% since July 2023 (“Giá Lúa Mì Tăng Cao Nhất Trong 10 ThángTrở Lại Đây,” 2024) Besides, 43.8% of Vietnam's wheat imports are fromAustralia in 2023 (Thời Báo Ngân Hàng, 2023) (see Appendix ).
Trang 14● Floods and droughts caused by climate change affect agricultural production,leading to a shortage of inputs such as wheat, sugar, etc., which may affectbaking production.
Shift right:
● Many businesses apply automation technology and modern production lines tohelp enhance labor productivity, reduce production costs, and hence increase thesupply of baked goods.
● Lower oil prices reduce transportation and production costs, leading to a likelyincrease in baked goods supply, with a 20% decrease in 2023 compared to 2022(Tuan, 2024).
3 Price elasticity of demand
Mondelez Kinh Đô has observed a shift in consumer behavior in Vietnam, withconsumers becoming more price-sensitive and seeking value and promotions Thissuggests that price elasticity of demand may vary across different product categoriesand consumer segments Inelastic products, such as Cosy Biscuits, have strongbrand loyalty and may exhibit inelastic demand, while more commoditized productsmay show higher elasticity To capitalize on this, Mondelez Kinh Đô shouldimplement a dynamic pricing strategy, offer promotional discounts and value packs,and tailor marketing strategies to different consumer segments Investing in productdifferentiation and conducting regular market research can help guide strategicdecisions and predict market reactions to price changes Lastly, enhancingoperational efficiency through technology and data-driven decision-making can helpbetter serve consumers and manage inventory.
Trang 154 Market structure
The Vietnam bakery sector is growing rapidly, and it is expected to grow even fasterand increase the range of products offered due to changing consumer tastestowards immediate, multiple bakery items, increased incomes, and modification ofliving standards The bakery sector is set for continued expansion and is ready forenhanced variety (6Wresearch, 2022).
The bakery industry in Vietnam can be considered as a monopolistic structurebecause of:
● Several bakery firms exist in the Vietnamese market nowadays Besides severalsmall enterprises, this industry has some significant and well-established bakerychains and brands, such as ABC Bakery, Kinh Do Bakery, and Tous Les Jours.These brands have an enormous market share, huge distribution networks, andlarge marketing expenditures.
● When compared to industries such as manufacturing or technology, entering thebakery industry needs less money Many bakeries begin as small, localcompanies, making it relatively easy for beginners to enter the market.
● Vietnam's bakeries provide a diverse range of items, including traditionalVietnamese baked foods as well as Western-style pastries and bread However,there is no huge difference between each bakery firm.