Final report course international marketing topic chin su's international market expansion strategy

Chinsu mainly focuses on producing and distributing seasoning products such as fish sauce, soy sauce, chili sauce, seasoning powder, and various other spices.. In addition to fish sauce,

BỘ GIÁO DỤC VÀ ĐÀO TẠO

TRƯỜNG ĐẠI HỌC KINH TẾ - TÀI CHÍNH

THANH PHO HO CHi MINH

IIHIHE+++++4

UEF ĐẠI HỌC KINH TẾ TÀI CHÍNH

Class: 233.MKT1106E.A02E - Group: 2

Nguyễn Đoàn Quế Thư - 205041039

Hỗ Thị Phương Thanh - 215081254

Bùi Nguyễn Xuân Mai - 215081534

Võ Quỳnh Minh Thư - 225310029

Phạm Quốc Bao — 215085808

Ho Chi Minh City, August 16

Contents

SH HH HT HH TH tk TH HH HH HH HH HH HH kg HH HH HH kiệt 1 Chapter I: INTRODUCTION TO MASAN CONSUMER COMPANY AND CHIN-SU s985.10092 0018 5

I BRIEF INTRODUCTION TO MASAN CONSUMER COMPANY 5

Il INTRODUCTION TO CHIN-SU FOODS BRAND AND CHIN-SU HOT SAUCE 5 Chapter II: MARKET EXPANSION ANALYSIS AND COUNTRY SELECTION FOR CHINSU 9

lì 499 9 1) Market Envrronment and Market AnalysSIs -c 2n 2121111111112 12 Hye 9 2) Analysis of Chinsưs competitors 1n M€XICO 21912112 112111111111 k2 10 3) Detailed analysis of distribution channels in MexIco có co Si cs sa 12 4) Market demand analysIs 1n M€XICO cọ 2n S SH SH TH ha 12 'Aað 6h 13 1) Noo 0/2 e Ả 13 2) Political EnvIronm€II - 2112111 121111111111111 1111111110111 11111 11 11 1x HH 14 3) Soclal EnvITonIm€HI, c1 211 19111 1111111921111 11012111 1101111171 11111101111 ch 14 4) Analysis of Chinsưs competitors 1n MalaySIA St SnéS2 2 2rxe 15 5) Distribution Channels S21 111 119111211111111111 111112111111 8111 1 rà 16 6) Market demand analysis in MialayS14 c1 2211 v2 1121111811111 11 xe 17 Chapter III: Penetration method L2 L2 2119121111111 1111 1181111 0111111 gkHrey 20 BA 20 2) hoc on e 20 Chapter IV: Marketing s{TafCØV Lcc HH ng HH H1 12 HH HH1 g1 1H Hy 22

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Nhỏ 23

BUI NGUYEN XUAN MAI Methods, Design word

; Chap 1, Analyze Mexico, Comparing

HO TH] PHUONG THANH Mexico and Malaysia, Marketing strategy

NGUYEN DOAN QUE THU Outline

VO QUYNH MINH THU Conclusion, Design word

PHAM GIA BAO

Chapter I: INTRODUCTION TO MASAN CONSUMER COMPANY

AND CHIN-SU HOT SAUCE

I BRIEF INTRODUCTION TO MASAN CONSUMER COMPANY

(a) General Introduction Masan Consumer Corporation is one of the top consumer goods companies in Vietnam It is part of Masan Group, a large and well-known business in the country Masan Consumer makes and sells a variety of everyday products, including food, drinks, personal care items, and household goods The company is famous for its popular brands like Chinsu, Nam Neu, Vinacafé, and Kokomi, which are widely recognized in Vietnam

Founded in 1996, Masan Consumer has grown quickly by understanding what Vietnamese people want and creating products that meet their needs The company’s success comes from its strong distribution network, new product ideas, and smart marketing Masan Consumer is committed to quality and continues to grow, both in Vietnam and in other countries, with the goal of becoming a major global player in the consumer goods industry

(a) Vision and Mission Mission: Masan Group aims to provide high-quality products and services to the people of Vietnam, helping them save money on their daily basic needs We achieve this by boosting productivity through new innovations, using advanced technology, and building a strong brand

Vision: Meeting the daily needs of 100,000,000 Vietnamese consumers Our vision is to become a leading group in the local private sector in Vietnam in terms of size, profit, and shareholder income We also strive to be a preferred growth partner and a top employer in Vietnam

Il INTRODUCTION TO CHIN-SU FOODS BRAND AND CHIN-SU HOT SAUCE

Chinsu is a well-known brand in Vietnam, owned by Masan Consumer Corporation Chinsu mainly focuses on producing and distributing seasoning products such as fish sauce, soy sauce, chili sauce, seasoning powder, and various other spices Established in 2002, Chinsu quickly became one of the leading seasoning brands in the domestic market and expanded to international markets

Chinsu stands out with its premium fish sauce, made from pure anchovies and processed using traditional fermentation methods to create a rich, delicious flavor In addition to fish sauce, other products like Chinsu chili sauce are also very popular, not only in Vietnam but also in many countries around the world

Currently, Chinsu has expanded its market to major countries such as Japan, South Korea, China, Russia, Germany, France, the USA, and Canada Especially in Japan, where food standards are very strict, Chinsu fish sauce has been accepted and favored for its high quality

Chinsu not only focuses on product quality but also invests heavily in marketing strategies, building a brand image associated with sophistication and superior quality The brand has received many international awards and certifications, such as ISO 9001:2015, HACCP, HALAL, FDA, and IFS, ensuring that their products are not only safe but also meet strict international standards Chinsu continuously researches and develops new products to meet the ever-growing needs of consumers worldwide

(a) Target Market and Customers Target Market: Chinsu’s target market mainly focuses on Vietnam, aiming at both city and rural consumers who want high-quality seasoning products at a good price Chinsu is also expanding into international markets, especially in Asia, Europe, and North America, where people are starting to enjoy Vietnamese flavors and look for premium seasoning products Target Customers: Chinsu’s target customers are a wide range of people both in Vietnam and overseas In Vietnam, the brand targets families and individuals who want quality seasoning products like fish sauce, soy sauce, and chili sauce for their daily cooking Internationally, Chinsu targets people who are interested in Vietnamese food, as well as distributors and retailers in markets where the brand is growing

(b) Featured products Chinsu offers a diverse range of high-quality spice products that are designed to enhance flavors and elevate culinary experiences Among the standout offerings are:

Chinsu Chili Sauce: Chinsu Chili Sauce is renowned for its bold and balanced flavor,

combining spicy chili peppers with sweet and savory notes This versatile sauce is an excellent addition to various dishes, providing a rich flavor profile that caters to diverse taste preferences

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Chinsu Wasabi Chili Sauce: Chinsu Wasabi Chili Sauce combines the sharp heat of wasabi with the rich flavor of chili sauce, offering a unique and bold flavor experience for those who enjoy a distinctive twist This sauce is an excellent choice for adding a zesty kick to sushi, grilled dishes, or any meal that needs a special touch Its blend of spicy wasabi and savory chili makes it a versatile condiment for enhancing a variety of dishes

Chinsu Sriracha Sauce: Chinsu Sriracha Sauce is perfect for those who enjoy a spicy kick

in their meals With its bold heat and tangy flavor, it is ideal for dipping and seasoning, adding a flavorful edge to various dishes

Chapter II: MARKET EXPANSION ANALYSIS AND COUNTRY

SELECTION FOR CHINSU

I MEXICO

1) Market Environment and Market Analysis

(a) Economic Environment Mexico's economy is the 15th largest in the world, with a GDP of about $1.3 trillion USD in

2023 Its diverse economy is mainly driven by manufacturing, which makes up about 17% of GDP, with key industries including automotive, electronics, food processing, and petroleum The service sector is also important, contributing around 63% to GDP, with tourism and financial services being major parts

In 2023, Mexico's economic growth rate is estimated to be 2.9%, showing resilience despite global uncertainties The economy is closely linked to the United States, its largest trading partner, which receives nearly 80% of Mexican exports The US-Mexico-Canada Agreement (USMCA), in effect since 2020, has reinforced these trade relations, making Mexico a crucial part of North American supply chains

Household consumption in Mexico accounts for approximately 70% of GDP, highlighting the importance of consumer spending Retail sales have grown by about 4.1% in 2023, reflecting rising consumer expenditure However, inflation remains a concern, with the Consumer Price Index (CPI) increasing by about 5.1% due to higher food and energy prices, impacting the cost of living

Consumer confidence has shown moderate stability, with the Consumer Confidence Index (CCI) around 85 Additionally, e-commerce is expanding rapidly, with online retail sales growing by about 15% in 2023, driven by increasing internet use and changing consumer habits

Despite these strengths, Mexico faces challenges such as income inequality, with a Gini coefficient of about 45.4 in 2022, reflecting significant wealth disparities The informal sector also remains large, representing about 56% of total employment, which impacts productivity and tax revenues

(b) Political Environment Mexico has a relatively stable political environment, but it faces challenges related to cormption and security According to Transparency International’s 2022 Corruption Perceptions Index, Mexico ranks 124th out of 180 countries with a score of 30 out of 100, indicating high levels of corruption This corruption can lead to increased costs and difficulties in establishing business relationships and obtaining necessary permits Additionally, crime is a significant concern, with about 25% of households reporting being affected by crime in 2023, as per data from Mexico's National Institute of Statistics and Geography High crime rates can impact distribution and asset protection, particularly in areas with severe violence

Despite these challenges, Mexico offers substantial opportunities for market expansion due to its free trade policies and proximity to the United States Mexico is a member of the United

States-Mexico-Canada Agreement (USMCA), effective since 2020, which aims to enhance trade relations with the U.S and Canada, creating a more favorable trade environment for businesses in the region Its geographical location close to the U.S also provides a strategic advantage for accessing the North American market, making it easier for Chinsu to reach and distribute products to key markets Thus, despite the issues of corruption and security, Mexico’s trade policies and geographical position present significant opportunities for Chinsu’s market expansion and product distribution in North America

(c) Social Environment When expanding into the Mexican market, Chinsu must consider the local eating culture to ensure product success Price is a significant factor, with around 47% of Mexican consumers prioritizing affordability, as reported by KPMG (2023) This necessitates competitive pricing strategies or value-oriented products to meet the needs of price-sensitive consumers

Additionally, brand loyalty plays a crucial role According to Mintel (2023), 55% of Mexicans remain loyal to trusted brands Therefore, Chinsu needs to focus on building strong brand credibility and trust to establish a lasting connection with consumers

Product differentiation is also vital in Mexico’s competitive market, where unique and distinctive flavors are highly valued Mexican cuisine is known for its rich and diverse flavors, from spicy to robust tastes Developing products with unique flavors and incorporating local spices can help Chinsu stand out and appeal to local tastes

Health trends are influencing consumer choices, with 36% of Mexicans seeking healthier options, as noted by Euromonitor International (2023) Highlighting health benefits or creating lower-sodium versions of products could align with these health-conscious trends

and attract more consumers

Packaging preferences also impact consumer decisions The Mexican Packaging Industries Association (AMEE) (2023) indicates that 62% of consumers prefer convenient, resealable, and environmentally friendly packaging Ensuring that Chinsu’s packaging meets these preferences can enhance its appeal in the market

Effective distribution is crucial as well, with modern trade channels like supermarkets accounting for 55% of food sales, according to Nielsen (2023) Establishing strong distribution partnerships and maintaining a presence in popular retail chains and e-commerce platforms are essential for successful market entry

Finally, local adaptation is important; 40% of Mexican consumers prefer products that align with local tastes and traditions, as reported by the National Institute of Geography and Statistics (INEGI) (2023) Adapting Chinsu’s products to fit traditional dishes like salsa and guacamole and incorporating local flavors will help the company succeed in the market Understanding and integrating these cultural factors into product development and marketing strategies will be key to Chinsu’s successful market expansion

2) Analysis of Chinsu's competitors in Mexico

Chinsu, a well-known Vietnamese brand of sauces and seasonings, faces strong competition

in the Mexican market Understanding the main competitors and their strategies is crucial for identifying challenges and opportunities

> Laozi: is a significant player in the Mexican market, offering a wide range of seasonings and sauces Its strength lies in its extensive distribution network through major supermarket chains such as Walmart and Soriana, allowing it to reach a large number of customers nationwide With an annual revenue of around $500 million, Laozi has established a strong market presence and enjoys high brand recognition However, Laozi’s heavy reliance on supermarket distribution could limit its presence

in other retail channels and online platforms, which are increasingly important in today’s market Additionally, the strong competition from other brands like La Costeña and Búfalo could challenge Laozi’s market dominance

> Bufalo: is prominent in the hot sauce and seasoning segment, holding approximately 20% of the hot sauce market in Mexico Its strengths include competitive pricing and frequent promotions, which help attract cost-conscious consumers and pressure competitors to adjust their pricing strategies Popular products such as Tabasco and BBQ sauce have strengthened Bufalo’s brand reputation However, Bufalo’s focus on hot sauces and BBQ sauces limits its product range, potentially reducing its appeal to consumers seeking a broader selection of seasonings The emphasis on competitive pricing might also impact profit margins, affecting the brand’s ability to invest in product innovation or premium offerings

> La Costefia: offers a diverse product range that includes seasonings, sauces, and ready-to-eat foods, catering to a wide variety of consumer needs Its extensive

distribution network, present in over 1,000 stores and supermarkets across Mexico,

ensures broad market penetration With an annual revenue of about $800 million, La Costefia demonstrates significant market dominance and consumer preference However, the broad product range might lead to market saturation, making it challenging to maintain growth and differentiate from competitors The large distribution network and extensive product line also result in higher operating costs, which could impact profitability if not managed efficiently

> Margarita: focuses on the premium market segment with high-quality sauces and seasonings Its strengths include a strong emphasis on product quality and effective marketing strategies that help create a premium brand image Margarita’s premium pricing attracts high-income consumers who are willing to pay more for superior products Nonetheless, the premium pricing strategy might limit Margarita’s customer base to higher-income segments, reducing its market reach compared to more competitively priced brands Additionally, Margarita’s niche market focus could result

in missed opportunities in broader market segments seeking more affordable options

In conclusion, Chinsu faces strong competition from these established brands, each with distinct strengths and weaknesses Laozi’s extensive distribution and broad product range, Bufalo’s dominance in hot sauces and competitive pricing, La Costefia’s wide product range and market penetration, and Margarita’s premium positioning all present unique challenges

To successfully compete, Chinsu should focus on developing unique products, enhancing its distribution strategy, and refining its marketing efforts to better position itself in the Mexican market and capture a larger share

3) Detailed analysis of distribution channels in Mexico

> Supermarkets and Retail Stores: Major supermarket chains are central to Mexico's distribution network Walmart, with its 2,800 stores nationwide, and Soriana, with around 800 locations, are key players in this sector These supermarkets offer a wide array of products, including seasonings and sauces, making them critical for Chinsu to

reach a large consumer base and enhance brand visibility (Walmart, 2024; Soriana,

2024) Specialty retail stores such as La Europea and Superama also play a significant role by targeting higher-end market segments with premium products These stores cater to consumers seeking quality and exclusivity, presenting an opportunity for Chinsu to tap into a more affluent customer base

> E-Commerce Channels: E-commerce is rapidly growing in Mexico, with platforms like Mercado Libre and Amazon Mexico leading the market Mercado Libre, which attracts over 80 million users monthly, and Amazon Mexico, showing robust growth

in online sales, represent significant opportunities for Chinsu to reach consumers who prefer shopping online (Mercado Libre, 2024; Amazon, 2024) Establishing a strong online presence and optimizing product listings on these platforms will be crucial for capturing the increasing number of online shoppers Additionally, developing a user- friendly website and mobile app can provide a direct sales channel, enhancing customer convenience and engagement

> Local Distributors: Local distributors are essential for reaching rural areas and smaller cities They help distribute products to smaller retail stores and local markets, broadening Chinsu’s reach beyond major urban centers These distributors have a deep understanding of regional preferences and can assist in tailoring products to local tastes Specialized distributors focused on food products and seasonings are particularly valuable, as they can help Chinsu enter niche markets and connect with specific customer segments

> Traditional Retail Channels: Despite the growth of moder retail and e-commerce, traditional retail channels such as grocery stores and local markets remain significant These channels are especially important in rural areas and smaller towns, where they offer competitive pricing and flexibility By engaging with these traditional outlets, Chinsu can address diverse customer needs and maintain a presence in various regions (INEGI, 2024)

4) Market demand analysis in Mexico

There is a strong and growing demand for convenient foods in Mexico, especially due to the busy lifestyles of urban residents The convenience food market is expected to grow by 8% annually, indicating that consumers are seeking quick and easy meal solutions This presents

a significant opportunity for Chinsu to offer products like ready-made sauces and seasonings that cater to the need for convenience in everyday meals

Additionally, Mexican consumers are increasingly interested in international flavors, particularly from Asian cuisines There has been a notable rise in demand for sauces and seasonings from different cultures, including hot sauces The popularity of hot sauces and various Asian seasonings suggests that consumers are looking to enrich their meals with new and diverse flavors

Health awareness is also rising in Mexico, with consumers paying more attention to the nutritional value of their food There is growing demand for products that are healthier, such

as those with reduced sodium and sugar Chinsu can address this need by developing hot sauces and seasonings with lower sodium content or natural ingredients to attract health- conscious consumers

Hot sauces have become increasingly popular in Mexico, with the market seeing a 12% growth over the past year This indicates a strong consumer interest in hot sauces not only to enhance flavor but also to add a unique touch to their meals

Despite the interest in international flavors, Mexican consumers still have a strong preference for local and authentic products Traditional and locally made products are valued for their connection to cultural and culinary heritage Chinsu should consider incorporating local elements into its hot sauces and seasonings to appeal to consumers who appreciate authenticity and tradition

The expanding middle class in Mexico is leading to higher spending on premium and quality products The middle class is expected to grow by 5% annually, presenting an opportunity for Chinsu to offer premium versions of hot sauces and seasonings, emphasizing quality and value to meet the increasing demands of this demographic

Urbanization is also significantly impacting consumer behavior As more people move to cities, there is a higher demand for products that fit urban lifestyles, such as convenient and ready-to-use foods and seasonings Chinsu should focus on urban areas to meet the needs of city dwellers who often seek convenience in their meals

To succeed in the Mexican market, Chinsu should align its product and marketing strategies with these key consumer trends By addressing the demand for convenience, international flavors, health-conscious products, local authenticity, and premium options, Chinsu can build

a strong presence and effectively attract customers in this market

Il, MALAYSIA

1) Economic Environment

Malaysia is an emerging economy with a high average income In 2023, Malaysia's GDP was approximately $373 billion and is expected to grow by 4% to 5% in 2024 (Asian Business & Economics, 2023) The Malaysian economy shows stability and growth potential, driven by key industries such as food processing, manufacturing, and services This growth is fueled by both increased domestic investment and foreign investment, strengthening the country's economic foundation

Growth of the Middle Class and Consumption: The rise of the middle class is a key factor in Malaysia's economic development The middle class in Malaysia has rapidly expanded in recent years, leading to a significant increase in consumer demand (Asian Business & Economics, 2023) This increase is not only boosting demand for basic consumer goods but also creating opportunities for higher-value products such as spices and processed foods The middle class is also shifting consumption from basic products to higher-quality goods and diverse services, creating substantial potential for businesses in the food and consumer goods

sectors

Economic Policies and Impact on Consumption: The Malaysian government has implemented economic policies to boost consumption and investment These policies include improving financial access, providing economic stimulus packages, and supporting businesses in expanding their operations (Asian Business & Economics, 2023) These measures not only help maintain economic stability but also create a favorable environment for consumer businesses Domestic consumption stimulus policies, such as tax reductions and increased support for the food manufacturing sector, play a crucial role in driving consumer demand and expanding the market

The future outlook for Malaysia's economy remains positive with stable growth forecasts and increasing consumption The expansion of the middle class and government support policies will continue to drive demand for consumer products In particular, the food and spice industry is likely to experience robust growth due to rising demand from the middle class and increased spending in other consumer areas

2) Political Environment

International Trade Support: The Malaysian government has strong policies supporting international trade through the signing of various free trade agreements (FTAs) Malaysia is a member of the Regional Comprehensive Economic Partnership (RCEP), one of the world's largest free trade agreements, which includes 15 countries and accounts for about 30% of global GDP This agreement helps reduce tariffs, enhances connectivity among regional economies, and creates greater opportunities for Malaysian exports In addition to RCEP, Malaysia is also a member of the ASEAN Free Trade Area (AFTA), which aims to reduce tariffs and eliminate non-tariff barriers within Southeast Asia These agreements help Malaysia maintain competitiveness in the global market and attract foreign investment Legal System and Protectionist Policies: Despite its support for international trade, Malaysia's legal system can be quite complex, potentially creating barriers for foreign businesses Investment licensing processes and paperwork requirements can increase time and costs for international companies According to the Malaysian Investment Development Authority (MIDA), foreign companies often face strict legal requirements and complex tax regulations, which can complicate business operations and maintenance Protectionist policies in some sectors may also lead to additional taxes or trade restrictions on imported goods, raising costs for foreign businesses and affecting their competitiveness in the Malaysian market

Political Stability: Malaysia maintains a relatively stable political environment, which is conducive to investment and business operations However, changes in government and policies can impact the investment climate According to an IMF report, Malaysia has undertaken several reforms to improve the efficiency and transparency of its legal system The current government is committed to reforming and upgrading legal regulations to support the business and investment environment Nonetheless, this process requires time to achieve optimal results and create a more favorable investment environment for international businesses

3) Social Environment

Malaysia is a country with a rich and diverse culture, which not only impacts social life but also creates a varied environment for consumer products, particularly spices and sauces