Brand building strategy for cosy sweet cracker Kinh Do food corporation

TRUONG DAI HOC MO HO CHI MINH UNIVERSITEÙ LIBRE DE BRUXELLES HO CHI MINH CITY OPEN UNIVERSITY SOLVAY BRUSSELS SCHOOL ECONOMICS & MANAGEMENT MMA7 NGUYEN DUC TAI – NGUYEN THI THANH TAM BRAND BUILDING STRATEGY FOR COSY SWEET CRACKER - KINH DO FOOD CORPORATION MASTER PROJECT MASTER IN MARKETING & ADVERTISING ACKNOWLEDGEMENTS First of all, we would like to express our greatest gratitude to Prof. Marianne Claes for her first guideline of the structure of this project. And then, we also give special note of Thanks to Mr. Minh Nhut for his guidance on this paper. We are indebted to Marketing Department of Kinh Do Corporation for their valued strong support and continued encouragement as well as the courtesy of facts and figures presented in this project. We would like to take this opportunity to send our special thanks to all professors and staffs of Solvay Vietnam-Belgium and Open University, our families & friends, who have brought us invaluable support throughout. COMMITMENTS We, Nguyen Duc Tai and Nguyen Thi Thanh Tam commit that we have written this project by ourselves based on the information collected from Kinh Do Corporation and electronic sources. This project is designed only for the academic purpose of the completion of our Master in Marketing and Advertising Management. We agree that it freely available for reference and study. It is unexpected for copying and publication or any other uses. TABLE OF CONTENTS I. Introduction 1 1. Vietnam Food industry 1 1.1 Vietnam’s economy effect to food industry 1 1.2 The development of Vietnam confectionery industry 2-3 2. Kinh Do Food Corporation 3 2.1 History 3 2.2 Vision-Mission-Value 3-4 2.3 Kinh Do product portfolio 4 2.4 Kinh Do’s revenue Structure 5 2.5 Category-Sweet cracker analysis 6-8 2.6 Kinh Do biscuit category introduction 9-10 3. Cosy brand introduction and portfolio 11-12 II. Current analysis 12 1. 3C business model analysis 12 1.1 Consumer 12 1.1.1 Customer Segmentation 13 1.1.2 Target customers 14-15 1.2 Competitor 15 1.2.1 Price strategy 15-16 1.2.2 Distributions 16 1.2.3 Communication 16-18 1.3 Corporation (Cosy-KIDO) 18 1.3.1 Cosy brand strategy 18-22 1.3.2 Market share 22-23 1.3.3 Brand Awareness 23-24 2. SWOT 25 III. Solution 26 1. Objectives 26 2. Solutions 26 2.1 Competition-based branding strategy 26 2.2 Brand management strategy 27 2.3 New consistent Story concept 27 2.4 Using brand conversion pyramid to increases sales 27-28 2.5 Consumers touch points selection 28 IV. Recommendation 28 1. Competition-based branding strategy 28-29 2. Brand management strategy 29 3. Create new key message and concept 29-31 4. Consumer touch point selection 32 5. Product display 32 6. Integrated Marketing Communication Strategy 2014 32 7. Marketing Plan of Cosy Brand for 2014 33 8. Conclusion and Evaluation 34-35 V. References 36-37 VI. Appendixes 38-43 EXCUTIVE SUMMARY Growth of young middle and upper class population makes Vietnam an appealing proposition among Asian Pacific economies. Specifically, the Vietnamese food market is growing rapidly and attracting significant market entrance in recent years, thus the competition between domestic and foreign brands is getting more intense. And Kinh Do Corporation, one of the biggest food corporations, has also faced with that intense competition from foreign brands. With a very wide range of product category portfolio, Kinh Do has given a restructuring of brands strategy. Their objective is to maximize profit with minimizing investigation in branding and marketing. And cracker category with Cosy brand is a pioneer in brand restructuring. Cosy portfolio includes: Cosy Marie (the group leading product), stick wafer, cube wafer, seasame biscuit, mini butter biscuit, cream sandwich biscuit. With a steady growth in consumption of biscuit category in Vietnam up to year 2017, there is a potential market for Cosy to increase the Sales revenue as well as market share of Biscuit Category in the market. Currently, there are four big brands in biscuit market that includes: Cosy (KIDO), Oreo (Kraft Food), Goute (Orion), Cream O (Jack and Jill). Not only because of the optimal investment goal in marketing and branding activities for Cosy, but also due to brand awareness of all Cosy products is not high and product communication style is not consistent from the launch of Cosy portfolio. During the study of Cosy marketing plan, we have found out some areas of improvement and would like to recommend bolding brand awareness, expanding market share and market size of Cosy umbrella by creating new communication concepts with the purpose to meet the customer demand for biscuit products. LIST OF ABBREVIATIONS GDP Gross Domestic Product GSO General Statistics Officer BMI Business Monitor International MOIT Ministry of Industry and Trade KDC Kinh Do Corporation ATL Above The Line BTL Below The Line WTO World Trade Organization HCM Ho Chi Minh City HN Ha Noi City R&D Research and Develop MOST Ministry of Science and Technology MOH Ministry of Health FIGURES FIGURE 1: Annual growth rate of Vietnam’s Gross Domestic Product FIGURE 2: Vietnam GDP per Capital FIGURE 3: Food consumption forecast in Vietnam 2010 -2017 FIGURE 4: Confectionery sales forecast from 2010 to 2017 FIGURE 5: Logo of Kinh Do Corporation FIGURE 6: KINH DO product portfolio FIGURE 7: The Sales Revenue divided by category of Kinh Do in 2012 FIGURE 8: The Value Share of food industry in 2011 FIGURE 9: The value share of Biscuit Category in 2011 FIGURE 10: The sales value of sweet cracker from 2006 to 2008 FIGURE 11: The value share of Sweet cracker in market 2012 FIGURE 12: The Value share of Sweet Cracker In key cities in 2012 FIGURE 13: KIDO’s biscuit category portfolio FIGURE 14: KIDO’s all biscuit brands positioning map FIGURE 15: Research number of people loyalty with biscuit product FIGURE 16: the decreasing of market share of KIDO’s biscuit compare with competitors FIGURE 17: Research number of people aware Cosy product compare with competitors. FIGURE 18: The percentage of people aware Cosy product by TVC advertising compare with competitors FIGURE 19: 3C’s model FIGURE 20: Customer-Based Brand Equity model FIGURE 21: Print Advertising for new concept of Cosy TABLES TABLE 1: KIDO’s all biscuit brand segmentation TABLE 2: The Cosy product segmentation follows the age group TABLE 3: The Emotional Age Group with Cosy Group Product TABLE 4: The Competitors with Cosy product Group of Kinh Do TABLE 5: The Advertising way of KIDO’s and Competitors TABLE 6: The Brand Proposition formula for Cosy Group Product TABLE 7: Swot analysis of Cosy Product of KIDO’s TABLE 8: Cosy brand management [...]... portfolio by choosing COSY becomes a master brand of sweet cracker category with the leader product is COSY Marie KIDO renamed butter biscuits, cream sandwich and crackers to under COSY master brand name, which become COSY Marie Biscuits, COSY Cream Sandwich Biscuits, COSY Coconut Butter Biscuits, COSY Mini Biscuits, COSY Wafer Rolls, COSY Wafer Sandwich And COSY Seasame joins Cosy family in the end... revenue for KIDO Futhermore, the percentage of value share and volume share of cracker biscuit category increases hightly in many recently years 12  In recently difficult economic years, 2012 KIDO’s strategy with the purpose is saving cost for building brand and marketing for many separate small brand of different product KIDO decided to collect sweet cracker brands put under Cosy master brand and Cosy. .. loved ones COSY - Creating and Sharing Sweetness for good mood moments Brand proposition formula TABLE 6: The Brand Proposition formula for Cosy Group Product Brand Identity In 2012 to 2013, Cosy master brand has completed the Cosy product portfolio with consistent Cosy brand identity in packaging Cosy logo with KIDO’s logo above shows the corporate branding remains to be perceived as a trusted and... ice-cream brand from Unilever, buying Tribeco, Vinabico and investing in Nutifood, Eximbank, etc In 2010, KIDO merged North Kinh Do Corporation to enlarge Kinh Do s coverage in 4 food industry and develop into a strongest food corporation not only in Vietnam but also in South East Asia FIGURE 5: Logo of Kinh Do Corporation (KDC annual report, 2012) 2.2 Vision – Mission – Value Mission: “Flavor of life”, Kinh. .. - 1 Objectives Help Cosy master brand gain sufficient brand awareness and acquire desired brand imagery Foster customers’ interest in packaged cracker category and increase usage occasions Strengthen reputation for KIDO brand and support same positioning of other existing brands in KIDO’s food portfolio Brand communication concept of Cosy has to align with KIDO’s core values “KIDO commits to bring... pleasant moments together o Cosy makes you enjoy, have fun and spend some nice moments with the people you care about Reason to believe: What makes Cosy good? o KIDO is Cosy s manufacturer o Cosy sweets have balanced sweetness o Cosy makes the crunchiest, most aromatic and most spongy sweets o Cosy packs are convenient for sharing Brand personality: What is Cosy personality? o Cosy is the master of sharing... 28% 9 2.6 Kinh Do biscuit category introduction FIGURE 13: KIDO’s biscuit category portfolio Biscuit Brand management, by comparing all brand positioning maps for all biscuit of Kinh Do brands in the markets in: 10 FIGURE 14: KIDO’s all biscuit brands positioning map STP /Brand Segmenting Favorite flavor Main needs Message Cosy group AFC Korento Family & group Personal & group Personal use Sweeten Salt/Plain... highest investment budget for brand building and marketing activities, so that Oreo has highest brand awareness Cosy Marie has quite high brand awareness since it gets benefit from corporate brand with KIDO That is an advantage of Cosy Marie brand and also the reason that KIDO chose Cosy Marie becomes the leader product in Cosy product group FIGURE 18: The percentage of people aware Cosy product by TVC advertising... and weakness of Cosy, concurrently find out the suitable marketing strategy for pushing up Cosy brand develop success in the industry market STRENGTHS  Reputational and long – established of Kinh Do s corporate brand  Brand benefit: Cosy is an umbrella brand of many types of crackers in biscuit category, that could serve for whole family in snacking time together  Modern technology  Food Safety guaranteed... Kid forums Below The KIDO Activations Activation line promotion Promotions Promotion Events Sponsorships Marie J&J Yummy and good for your health OOH None PR 18 TABLE 5: The Advertising way of KIDO’s and Competitors 1.3 Corporation (Cosy – KIKO) 1.3.1 Cosy brand strategy Brand key Since 1999, Uniliver has used the Brand Key tool to capture brand positioning globally The Brand Key Vision is how the Brand . MANAGEMENT MMA7 NGUYEN DUC TAI – NGUYEN THI THANH TAM BRAND BUILDING STRATEGY FOR COSY SWEET CRACKER - KINH DO FOOD CORPORATION MASTER PROJECT MASTER IN MARKETING &. Vision-Mission-Value 3-4 2.3 Kinh Do product portfolio 4 2.4 Kinh Do s revenue Structure 5 2.5 Category -Sweet cracker analysis 6-8 2.6 Kinh Do biscuit category introduction 9-10 3. Cosy brand introduction. with Cosy Group Product TABLE 4: The Competitors with Cosy product Group of Kinh Do TABLE 5: The Advertising way of KIDO’s and Competitors TABLE 6: The Brand Proposition formula for Cosy