assignment subject international marketing topic star kombucha to thailand market

STAR KOMBUCHA was founded in 2019 to enhance the health and happiness of everyone through its premium products, made from only the finest ingredients available on the market today.. "At

INTERNATIONAL SCHOOL VIETNAM NATIONAL UNIVERSITY

INTERNATIONAL SCHOOL

VIETNAM NATIONAL UNIVERSITY, HANO!

ASSIGNMENT

SUBJECT: INTERNATIONAL MARKETING

Topic: Star Kombucha to Thailand Market

Group number: 7 Lecturer: Ho Nguyen Nhu Y Class: INS3042.01

HANOI - 2022

SWOT Analysis

M1 nh ố.ốốằẳốẳố aa ỐỔỐỔỐốỐốỐốỐốỐố.ẻốẮ 3 Opportunities

Competitive pressure from potential competitor

1.4.2 The micro environment

EXECUTIVE SUMMARY

Forget about gluten-free meals, the ketogenic diet, and all that detox stuff Here is a comparison

of the diet trend to the popular sparkling yellow fermented beverage kombucha They claim

that Gwyneth Paltrow, Halle Berry, Lindsay Lohan, and Madonna all consumed it Even the

highly androgenic Orlando Bloom and Jake Gyllenhaal were spotted holding a bottle of kombucha

In Thailand, kombucha has become incredibly popular To share ideas and even "scoby," a slimy, rubbery kombucha starting culture, among brewers, online forums have sprouted up Kombucha has entered the country's gourmet community, where mixologists and chefs included the beverage on their menus and served it at several fine-dining establishments According to the New York Times, kombucha will be a popular food trend in 2019 and will appear in unexpected places like salad dressings Sometimes kombucha is the star of beauty products

This report was designed to gain a deeper understanding of the Thai market, thereby evaluating the possibility of Star Kombucha's success in its market entry plan In the first section, we will include research on Star Kombucha by its environment and SWOT analysis The next part will

be the study of makerting startegy for the company based on STP and Marketing mix models Finally, we will present a marketing plan with action program and budget suggested

1 SITUATION ANALYSIS

1.1 Company Profile

GOODY GROUP JSC is a non-Alcoholic, Food & Beverage manufacturing The company specializes in producing natural and healthy beverages, including the STAR KOMBUCHA brand STAR KOMBUCHA was founded in 2019 to enhance the health and happiness of everyone through its premium products, made from only the finest ingredients available on the market today "At Star Kombucha, we have golden principles in production and distribution to keep the full benefits of health and beauty for users In which, ensuring the standard implementation of hygiene and safety regulations only Absolute safety is considered the golden rule in Star Kombucha production," said Paul Nguyen Hung, Founder and General Director of Goody Group

The unit is selected nght from the source of input materials All Star Kombucha ingredients such as tea and cane sugar come from organic farms, without the use of synthetic fertilizers, pesticides and genetically modified foods

The production process is strictly monitored and tested for quality To achieve FDA certification, Star Kombucha tea production process must comply with regulations that do not use added flavorings, colors, sweeteners or preservatives but need to keep the natural and safe flavors for health

Star Kombucha tea meets the appropriate nutritional standards, keeping the pure natural flavor The product not only has a variety of flavors, but also adds many essential nutrients such as organic acids, antioxidants, B vitamins, polyphenols, EGCG and probiotics to help "healthy inside - beautiful outside"

The US FDA certification has contributed to Star Kombucha's name on the world beverage map That is considered a stepping stone for the development of Star Kombucha, with the goal

of becoming a brand that is not only popular in Vietnam but also reaches out to the world, trusted by international consumers

1.2 SWOT Analysis

1.2.1 Strengths

Internationally acclaimed production: It has become very popular in the United States, the United Kingdom, Canada, and Europe in recent years due to its health

benefits According to Grand View Research data as of 2017, sales of this beverage

have reached $ 480.4 million and are still on the rise In addition to online sales and clean food stores, nearly 40% of sales usually come from large supermarkets Fresh and highest quality ingredients: As members of the Kombucha Brewers

International Association, Star Kombucha adheres to strict production standards The

company directly imports Scoby seed from the United States and invests in building a breeder farm in Tan Binh Here, the seeds are cultured with humidity and temperature

in an environment that meets Vietnamese standards All finished products of Star Kombucha must meet the standards from the uniform quality of ingredients and undergo about 30 days of fermentation until they are ready for bottling

Meeting customer needs for health supplement products: The increasing popularity

of healthier options is fueling a trend toward the replacement of less healthy foods and drinks with healthier options in Thailand Star Kombucha is not only delicious but also healthy and can satisfy customers’ demands

Brewed by U.S Standards and Processing: It has been approved by the U.S Food and Drug Administration (FDA) Having FDA will prove the ingredients and origin of the product, so it is absolutely safe for human consumption Therefore STAR KOMBUCHA can build customers’ trust as well as create a valuable brand image in the Thailand market

1.2.2 Weaknesses

A lack of interest among consumers because of unfamiliarity: Domestic customers tend to choose the existing brand which they are familiar with instead of trying a new product This is keeping Star Kombucha from entering the mainstream market Thailand consumers’ suspicion of carbonated and canned soft drinks: This perception stems from their experiences with such beverages: they are high in sugar, preservatives, and colorants As a result, many people will hesitate in choosing the product

1.2.3 Opportunities

Thailand is a potential market in the upcoming years: Thailand’ s vitamin and health supplements market has significant potential due to strong demand The Thai population is among the top consumers of vitamins, dietary, and health supplements in the world, with a sales value estimated at $1.7 billion in 2018, and with a projected annual growth rate of 10-15 percent over the next five years reaching $3.5 billion in

2023

Thailand consumers becoming more health-conscious: People are becoming more aware of the advantages of health as the population ages People in Generation Y are focused on healthcare, which is spreading across all generations This increased awareness of healthy lifestyles is fueling the overall health, beauty, and wellness sector According to a new report from Food Industry Asia and research firm IGD, almost all consumers in Thailand are interested in improving their diets while 82 percent are happy for products to be made healthier, provided that taste is not compromised The rapid growth of the Internet and smartphones in daily life: The growing internet and smartphone penetration into daily life has made online shopping more popular among Thais This serves as an economic stimulus by spreading information quickly to a large number of people economically Also, there is no longer a barrier between purchasing in-store and online, or Online-Merge-Offline (OMO) (Group M

Thailand, 2020), In addition, Star Kombucha can use social media platforms to enhance its brand value, promote its products, interact with customers and collect feedback

1.2.4 Threats

e Loyal customers to existing brands: Consumers in this industry are end-users with money to spend on healthy lifestyles The majority of consumers in this market are not price-conscious buyers as they earn enough or more money to afford their healthful living Health-conscious consumers tend to be loyal to one brand if they perceive the brand's products as useful for them

e High threat of substitutes: In the health-functional beverage industry, there are numerous substitutes for kombucha such as juices and teas The high cost of kombucha's raw materials hinders its expansion in Thailand Moreover, buying other healthy beverages is easier than buying kombucha drinks Overall, the threat of substitutes is relatively high

e Pressure from competitors: The health functional beverages industry in Thailand is

competitive, with a number of domestic and international firms interested in entering

the market and with the capacity to do so The high initial investment and the need for superior product quality are threats to Star Kombucha's position in Thailand's drinks market, this places the company under considerable pressure to compete with established brands such as Bangkok Booch or Kevita on quality and popularity Star Kombucha faces a formidable challenge if it intends to remain competitive against these companies

1.3 Competitive Analysis

Competitive research is based on information gathered about rivals We will understand the competitor's behavior by evaluating them and continually monitoring them, allowing us to make decisions about the next steps in order to create a plan that is one step ahead of the competition

Star Kombucha’s 5 competitive pressure models as the following:

1.3.1 Industry competitive pressure

When consumer patterns shift, any brand will face competition from other brands in the same sector The high number of rivals with comparable competitiveness results in intense rivalry in the market segment The Star Kombucha company also confronts a tremendous challenge from competitors in the same sector such as Lady Buddha Kombucha- the Kombucha tea brand in Vietnam, or the imported Korean brand Teazen The difference in price and quality is not too big, but it is enough for strong rivalry Star Kombucha is less expensive than other brands, making it suited for the majority of Vietnamese customers Furthermore, the range of tastes is

a significant strength of the organization

Despite entering the Vietnamese market late, Star Kombucha has reduced competition pressure

in the sector by taking strategic actions and managing the road to capturing market share in the healthy drink market category

Furthermore, Star Kombucha must compete with drinks that are well-known in Vietnam, such

as Coca-Cola and Pepsi

1.3.2 Competitive pressure from potential competitor

Potential competitors are companies, persons, and organizations that will be able to engage in the industry or product in the future Businesses cannot join the beverage sector if they do not satisfy all of the criteria It needs a significant expenditure to enter the market, however, local companies can begin on a lower scale However, the investment expenses for marketing and attracting qualified professionals are also quite significant Secondly, rivals must invest in developing client trust in their brand

There are several beverage items available today that are popular among young people and youngsters yet are harmful to their health Furthermore, the industry increasingly introduced items that are thought to be beneficial to one's health, such as natural fruit juice Many firms are working to produce goods in the direction of healthy beverages This is a good direction, in line with the trend of the world as well as Vietnam

As a result, the pressure from potential rivals is intense because the entry barrier to the sector

is low Competitors might enter this firm at any time, reducing the company's market share

To reduce the amount of competition in the sector and preserve its position, Star Kombucha must work on establishing obstacles to company entry:

- Develop your own unique product (canned soft drinks are good for health)

- Increase production to minimize manufacturing expenses, resulting in cheaper product prices

- Available for purchase on a variety of online electronic channels and social networking sites, including Shopee, Lazada, and Tiki

1.3.3 Competitive pressure from customers

Star Kombucha's primary clientele are women aged 30-44, who are more interested in healthy goods However, claiming that the product is solely for this demographic is unjust because the health condition does not belong to anybody Many people believe that a healthy drink is

"sugar-free," but because Star Kombucha includes cane sugar and fruit flavors, they are doubtful Since the growing pandemic, Vietnamese buyers are no longer as passive as they always were, particularly for healthy items

Because of its small scale, Star Kombucha cannot take advantage of the cost advantage of the components, resulting in a pricey product However, the majority of the company's consumers are modern women of a certain age who are financially secure and prepared to pay for healthy items, thus pricing pressure is minimal

1.3.4 Competive pressure from substitute products

Kombucha tea is one of the probiotic-rich meals Probiotics are not only useful for digestion, but they also have a plethora of other beneficial effects, particularly for women Probiotics can also be present in a variety of other common foods, including yogurt, apple cider vinegar, and cheese Yogurt and apple cider vinegar are easier to buy and considerably cheaper than Kombucha tea, so customers may convert to these products

It can be seen that this is a big danger for kombucha tea in general and Star Kombucha in particular in increasing sales as well as competing for market share However, the cost of the goods determines the product's quality Star Kombucha is expensive, but it has a great taste that quenches thirst on hot and exhausting days while also focusing on health and beauty maintenance

1.3.5 Competitive pressure from suppliers

Since food safety is the most important factor, locating a certified supplier of raw materials is

a challenging undertaking However, after dominating the Vietnamese market, Goody Group Joint Stock Company's Star Kombucha fermented tea beverage has been FDA - US Food and Drug Administration approved Star Kombucha, the first Kombucha brand in Vietnam created according to American standards and recipes, has gained FDA approval - a "business passport"

to access the lucrative but competitive US market

The US FDA is responsible for protecting the health nghts and interests of US consumers, through regulation and food safety oversight Products imported into the US must meet FDA's standards on source of raw materials, formulas, manufacturing, packaging, distribution The

FDA will determine if the products are quality, effective, and safe for consumers

1.4 Micro and Macro Environment

1.4.1 The macro-environment

1.4.1.1 Economic

A variety of economic circumstances beyond the company's control can have an impact on Star Kombucha sales Factors such as the country's economic growth rate, tax rates, currency exchange rates, labor expenses, and so on These are elements that can influence commercial and consumer behavior The Star Kombucha team regularly watches these developments as they affect customer purchase patterns

1.4.1.2 Demographic

Vietnam is in the middle of a golden population period, but it won't last more than 30 years With 35% of working-age adults paying unemployment insurance premiums, Vietnam is expected to experience significant social pressure as the population ages Only 5.5% of Vietnam's population is over 65 years old as of 2022 This number is expected to increase to 14.2% by 2039

Thailand is in the age of population aging With 70.9% of adults of working age, Thailand is expected to experience significant social stress as its population matures Only 9.2% of Thailand's population is over 65 years old in 2022 This number is expected to increase to 19.8% by 2025 and may reach nearly 30% by 2050 Indicating that consumer-driven demand

is aging

The market is divided into groups on such basis variables like age, family life cycle,

occupation, education, religion, race, generation, nationality, and social class These variables

are the basis of Star Kombucha Company for distinguishing their customer groups The

reason behind this is that consumer wants, preferences, and usage rates are often associated

with demographic variables

The demographics are those who are 30+ years old, as the product is a Kombucha tea that is more appropriate for those who are middle aged The market is open to both genders, and available for the ones with Middle-Level Income As it is open to both genders, has a wide range of age, and an average in terms of cost, it then allows greater product diversification

1.4.1.3 Political

The government is critical to the functioning and outcome of Star Kombucha's product The production of the corporation is determined by the government's legal requirements The FDA (Food and Drug Administration) is in charge of regulating the flow of food, pharmaceuticals, cosmetics, medical equipment, and domestic hazardous waste Changes in laws and regulations, taxes obligations, and environmental restrictions in local or foreign countries are all political variables outside the Star Kombucha company's control

Since the product is Kombucha tea, changes in the non-alcoholic business climate may also have an impact on the company These include competitive product and pricing challenges,

as well as their capacity to obtain or maintain market share in global and local markets as a result of competitor activity Other reasons include political situations, civil upheaval, government changes, and restrictions on the ability to transfer wealth across borders 1.4.1.4 Technological

The ingredients in Star Kombucha tea are from organic farms that do not use synthetic analysis, pesticides, or genetically modified foods The production method is also strictly supervised and controlled, with three steps: organic tea coating, Scoby yeast, and the inclusion of natural substances in accordance with US regulations and formulations that fulfill

FDA criteria Furthermore, Star Kombucha has employed social media technologies to engage with customers These techniques may be implemented on social media platforms

such as Facebook, Twitter, and Instagram, offering social proof and increasing customer

1.4.2 The micro environment

1.4.2.1 Company

The board of directors has a large effect on the enterprise's choices, strategies, and operational goals Star Kombucha is a product of the Goody Group, which was created by Mr.Paul Nguyen Hung, general director

There are well-known brands in several categories such as retailers, and convenience stores

They have over 5 years of experience, a good reputation, and a lot of potential in the Thailand retail sector

E-commerce platforms with a high degree of popularity and tremendous potential in Thailand are also our intermediary

1.4.2.5 Competitors

Along with researching the beverage market in general and kombucha in particular in Thailand,

we have identified potential Star Kombucha competitors as D7 Kombucha, Bangkok Booch Kombucha and Le Kombucha

1.4.2.6 Publics

Famous KOLs/Influencers and Subscribers are our target audience Other publics such as users

of social media platforms including YouTube, Facebook, TikTok, Instagram as well as

shoppers at all points of purchase that Star Kombucha may distribute

2 MARKETING STRATEGY

2.1 Objectives and issues

We have set aggressive but achievable objectives for both short-term and long-term periods 2.1.1 Short-term objectives

e Raising brand awareness by 25%: As the Kombucha product is no longer unfamiliar to Thai citizens, our company decides to boost communication activities Communication activities will help consumers know and have clear information about the story behind our brand, the production process, and the recipes that help Star Kombucha to become

so famous in Viet Nam

e New product development: With High-tech production lines, modern production facilities, high-quality raw materials, fast-developing technology, easy access, and modern, consumer tastes, the company invests in developing new product development that is suitable for Thai taste

2.1.2 Long-term objectives

se Our ultimate aim is to spread our message of a healthy lifestyle and protect the environment, dispelling common misunderstandings about the benefits of drinking water for health while also providing all consumers in the nation with accurate information about the product In order that all needs and requirements of customers are satisfied, our company tries to bring about many family-oriented events along with spreading the health benefits of the products on our fanpage

¢ To adapt to the international integration, we also target to sustainable development We picked aluminum for our cans because it is more than 90% recyclable, and our goods include around 75% recycled aluminum Aluminum cans are better for the environment than glass or plastic

2.1.4 Issues

When Covid-19 re-emerged and social distancing was prolonged, like many other businesses

in Vietnam, Star Kombucha faced many difficulties and challenges

In order to accommodate the translation situation many plans to change Foreign suppliers have difficulties in transportation, leading to long shipping times, affecting the material supply schedule Consumption trends also change with the pandemic, people save more and only spend on essential items and health support

Therefore, during the pandemic, Star Kombucha had a basis to promote online business The company cooperates with the e-commerce platform like Lazadaa and Shopee to export goods, keeping the growth circuit

informed and have professional occupations They are not only ready to buy products that are good for their health, but also willing to pay more for them

Supermarkets and E-commerce platforms are customers that Star Kombucha is aiming for The continuous growth of convenience stores has had great influence on the consumption of Star Kombucha Moreover, with the undeniable influence of E-commerce platforms in our daily life, the distribution of this drink is promised to be more widespread

2.2.1.2 Psychographic segmentation

According to the health care field, Kombucha is a traditional fermented tea that has been

consumed for thousands of years, rich in antioxidants and probiotics, it may help fight diseases

As it holds numerous health benefits, the size of the group of people paying attention to their health is growing every day and promised to hold huge potential

2.2.1.3 Geographic segmentation

We are focusing on providing the products to big cities like Bangkok, Nonthaburi, etc; where people have a higher income as well as living standards As citizens here are modern, their level of acceptability is higher

2.2.2 Targeting

Goody group’s marketing plan is to target people of all genders, social classes, and above 10 years old As Star Kombucha is growing in the Vietnamese market, we are planning to expand our business in Thailand

Thai citizens with high incomes are expected to bring in the most profit

2.2.3 Positioning

Goody Group and Star Kombucha will always remain committed to our vision of providing the highest quality products that benefit the community Our mission is to invest in quality raw materials and standardize production processes so that consumers can be sure they are getting what they pay for

2.3 Marketing Mix

2.3.1 Product: Star Kombucha

se Product: Star Kombucha releases 12 flavors: original, guava, permanganate, orange, passion fruit, ginger, peach, lemongrass, strawberry, mango, artichoke, and lychee As our products are made from seasonal fruits, it is more flexible to adjust the taste to suit Thai customers In the future, we are planning to invent mandarin and coconut flavors

e Product development is the core element that fulfills the standards and wishes of consumers It is an essential part of any marketing plan, as well as an important way to boost a business's reputation Despite the health benefits of kombucha, Star Kombucha faces difficulty when releasing is that the perception of canned drinks as “unhealthy beverages”, and “ gas drink is harmful” Moreover, it has a “weird” taste which is another obstacle to consider when promoting the products in the new market

e The ingredients to ferment the product are all of the natural origins such as black tea, green tea, SCOBY yeast, fruit, herbs, and natural sugar The product does not use any preservatives or artificial flavorings (taste enhancers, sweeteners )

® Star Kombucha releases 9 flavors: guava, permanganate, orange, etc As our products

are made from seasonal fruits, it is more flexible to adjust the taste to suit Thai

customers In the future, we are planning to invent mandarin and coconut flavors

e Another aspect that makes Star Kombucha stand out is that its cans are made of aluminum, which is eco-friendlier than glass and plastic

2.3.2 Price

addition, they are also sold as a set of 6-12 cans on E-commerce platforms like Lazada

and Shopee On Lazada, the price for 1 box of 6, 12, and 30 cans is 180.000 VND,

360.000 VND, and 900.000 VND respectively

The company uses two pricing strategies in marketing the products The first one is value-based pricing As our target customers are who show great care for their health, the amount of money to purchase the product is irrelevant Even though the cost of the products seems higher than other canned drinks, customers are willing to pay as long

as they feel they are receiving great value by purchasing them The other one is competitive pricing Our company has an advantage in the input material, therefore the price of Star Kombucha is much cheaper than other Kombucha products in Thailand The Kombucha is imported from the USA and raised on the Tan Binh farm We also use seasonal fruits from domestic suppliers These are why our cost per unit is lower than other competitors

2.3.3 Place

Supermarket and convenience store: The distribution of Star Kombucha to retailers will raise its brand awareness As Thailand also has many potential competitors in Kombucha, displaying our products in the supermarket and convenience stores may meet some difficulties That’s why colorful packaging is an advantage when Star Kombucha is on the same row as other products

E-commerce platforms: Lazada and Shopee are our potential platforms These 2 not only hold a large number of potential consumers but also prove their rapid growth in recent years In Vietnam, Star Kombucha has also received huge support from Shopee and Lazada users

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