MARKETING MANAGEMENT

The Beverage Market is one of the most developing industry. In addition, Nonalcoholic beverage industry is in the part of overheating. According to BMI report, the growth of revenue will reach 8.2% and the growth of sales will be 6.3% from 2014 to 2016. Furthermore, the demand of keeping people’s life healthy by using natural product in their daily meal increased quickly. This is the reason for the company to invent a new product, “Vita juice”, which will appear in the beginning of 2016 with the concept to make it easier for people to do something good for themselves. Vita companies is a new company in the beverage market. Vita is established with the mission to show that the firm care about peoples health and about the environment, help more people get more fruit into their diet. Mission statement A mission to help make it easier for people to do something good for themselves. We make the best nutritious, natural, delicious, and fresh drinks that lead to your better life. Business’s core competencies The company will bring the new flavor juice into canned drink with the new ingredient Acelora cherries, which has nutrition content higher than the other fruit cherries, especially the content of vitamin C higher more 30 times than orange.

MARKETING MANAGEMENT

Analysis report

VITA JUICE

MARKETING & FINANCE UNIVERSITY

ASSIGNMENT COVER PAGE

Student name: VÕ HOÀNG THÁI BẢO

On- time submission Late submission

Individual assignment Group assignment

• Group members: DƯƠNG HOÀNG LAN ANH

VÕ HOÀNG THÁI BẢO

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TABLE OF CONTENTS

I. Introduction………

II. SWOT Analysis………

III. Macro-Environment Analysis……….

IV. Segmentation Strategy………

V. Positioning Strategy………

VI. Marketing mix (4Ps)………

VII. Conclusion………

VIII. References………

Executive summary :

I. Introduction:

The Beverage Market is one of the most developing industry In addition, Non-alcoholicbeverage industry is in the part of overheating According to BMI report, the growth ofrevenue will reach 8.2% and the growth of sales will be 6.3% from 2014 to 2016

Furthermore, the demand of keeping people’s life healthy by using natural product intheir daily meal increased quickly This is the reason for the company to invent a newproduct, “Vita juice”, which will appear in the beginning of 2016 with the concept tomake it easier for people to do something good for themselves

Vita companies is a new company in the beverage market Vita is established with themission to show that the firm care about people's health and about the environment,help more people get more fruit into their diet

Mission statement

A mission to help make it easier for people to do something good for themselves Wemake the best nutritious, natural, delicious, and fresh drinks that lead to your better life

Business’s core competencies

The company will bring the new flavor juice into canned drink with the new ingredientAcelora cherries, which has nutrition content higher than the other fruit cherries,especially the content of vitamin C higher more 30 times than orange

One year goals

The company tries to achieve:

 Qualitative:

- Consolidate the distribution

- The brand name is recognized in the customer’s mind

- Built a strong relationship and create more value to get the customer’s loyalty

 Quantitative:

- Awareness increases 10%

- Revenue of new product will be reached 20 billion VND / year

- Its annual output reaches 1.893.940 products / year

II. SWOT Analysis:

Strengths: Weakness:

- A strong finance resources =>

invest to develop the production

technology and marketing of the

product

- The ingredients will be selected

under Gap standard by Process

research and development

scientists => remain the best

quality

- The firm has the most advanced

production line today

- Hard to achieve awareness and widen the coverage because a start-up company lack forces

- Hard to compete with the other product of the competitors

- Do not have a distribution channel

- The Beverage Market is developing

in recent years => potential market

for the company to enter

- The demand of using healthy

product is increasing nowadays =>

willing to pay and adapted new

product

- The people tend to spend more of

their income

- Population’s growth rapid => the

increase in market size

- We are new entrepreneur so it can

be difficult to compete with big competitors that hold big market share

- The pressure from wholesalers and retailers to agree distribute the product

- The customers do not have belief ofthe product

- The development of beverage market is increasing => more competitors in the future

- The changing in the weather, especially storm and flood => effected to the quality of the product

With the demand of using healthy product is increasing nowadays, the company decide

to bring a new product to solve this customer’s need Besides, the company will beensure against the treats of weather is changing, which affect the quality of the product.The company needs to exploit the strengths in order increase awareness in thecustomer’s mind The company will invest more in marketing and build distributionchannels

III. Macro-Environment Analysis:

During 2015 Vietnam population is projected to increased by 986 363 people and reach

92 655 796 in the beginning of 2016

Source: United Nations Statistics Division

Vietnam population density is 276.8 people per square kilometer as of November 2015.The growth rate of population is increase to 1% from 2014 to 2015

Source: United Nations Statistics Division

In absolute figures (estimation):

• 23,096,114 young people under 15 years old ( 12,093,032 males / 11,003,082females)

• 63,496,666 persons between 15 and 64 years old ( 31,689,206 males /31,808,377 females)

• 5,076,653 persons above 64 years old ( 1,945,225 males / 3,130,511 females)

Source: United Nations Statistics Division

According to GSO, Vietnam has more than 24 million households, including family sizesmall (2-4 people) are the most common (almost 65%), while very few households withmore than 7 people The number of single - parents families accounted for a smallproportion (8%) but have tended to increase since 2010

As BMI’s forecast:

• The spending rate of F&B will keep rising from 2015 to 2018

• Concoction with no alcohol will be increased highest in the beverage market inVietnam from 2014

• The Vietnamese packed food would increase 24.2% of output and 48.7% ofsales

Although the effect of western’s culture like modern life style, the consumers still careabout the healthy, food safety and its origins So, they change from using freshingredient to packed food Therefore, a strongly investment in this industry increasesthe sales

Consumer Price Index CPI in Vietnam reported by the General Statistics Office ofVietnam showed that Vietnam CPI in July 2015 reached to 159.65, which is the highest

in the last 2 years Our target customers is the young adults from 20-40 years old

having stable incomes

Picture 3.2 CPI Vietnam in 9 months in 2015 - Source: www.tradingeconomics.com

So the rise in CPI means the people tend to spend more of their income

Besides, Vietnam GDP is lower than other developed countries but still has a healthygrowth rate It makes Vietnam economy become a newly industrializing economy wheremiddle class demands for new types of goods and services are growing

According to tuoitre.vn, the average income of people in Ho Chi Minh city is 2.5 timeshigher than other regions of the country, about 5.131 USD It makes Ho Chi Minh citybecame a good market for our services as people having higher income are willing topay more on their special occasions.

Picture 3.3 GDP Vietnam from 1980 to 2010 Source: www.tradingeconomics.com

In 2014, the revenue of produce and consumption companies in the beverage industryreached at 4.05 billion litters, an increased 2.7% in total

Current Prices Unit: 1000 VND

Table 3.1 The revenue of produced and consumption companies in the beverage industry

Source: General Statistics Office (GSO) (2013), Living Standards Survey of

households in 2012.

BMI’s forecast, the consumption of non-alcohol drink will be increase 2.7 billion litters in

2017, corresponding to an average growth rate of 7%/year At the same time, therevenue of beverage also expected average growth rate increase to 14.2%/year,towards milestones set at 137.000 billion in 2017

The price always effect on consumer’s behavior, compete with price is in short term.However, according to Nielsen’s research, consumers intend to care more about thequality of product, especially the healthy problem As the result, researching newproduct with constituent advance healthy is best way to win the market

3. Sociocultural environment:

Firstly, according to latest research from W&S Company:

• The consumers consumed juice or milk juice achieved 62.0%, which is higherthan consuming carbonated drink (60.6%)

• In Ho Chi Minh City, almost the consumer drinks juice one time/per day whichoccupied for 26.1% in the total items

Picture 3.4 The level of using juice according to accommodation Source:

Picture 3.5 The level of using juice according to gender Source: Vinaresearch

Along with the research about the behavior of consuming juice of Vinaresearch, 100%respondents agreed that fruit is one of the important foods to help the eater get a fithealthy body

Picture 3.6 The percentage of the reason choose to drink juice Source: Vinaresearch

Besides, they chose juice for 3 reasons: the taste of different kind of fruit, slaking theirthirst, adding more vitamins for body Juice is usually drunk with friend and family Notonly to have fun with, but also a healthy drink for body

Picture 3.7 The number of ways of drinking juice Source: Vinaresearch

Secondly, because of the development of life and cuisine, the citizens intend to bebusier and eat more prepared food However, customers concentrate more on foodsafety and origins Not only needing some products which have enough nutrition for thebody, but also efficient and convenient to save time

Picture 3.8 The percentage of level of concern on health Source: Vinaresearch

As the result, the distribution systems will be made most efficiently and quickly in order

to let the product easier to buy So Vita juice will be available in:

• Big supermarkets like: Big C, Maximark, Coop Mart, Metro,…

• Convenient stores such as: Circle K, B’s mart, Family mart

• Big companies and dealers in big cities like Ha Noi, Da Nang, Hai Phong, HCMcity, Can Tho

Finally, Vietnam is a country of tropical climate and agriculture, which has a lot offertilize soil, experienced farmers in planting and several of fruit However, no onehaven’t explored and developed it usefully Therefore, the company will cooperate withfarmers to help evolve theirs skills and income, which would give them a better life

The company will bring the best Vita juice in order to prevent illness by a good nutrition

in the daily diet With two sizes bottle for family and individual, this will give customersmore choices with an affordable price

4. Natural environment:

The production is significantly affected by the quality and quantity of the main

ingredient-Acelora The natural disasters contain potential hidden danger to result of

crops An illustration of this is storm and flood could cause waterlogged roots, sweet

reduction and fruit fall In addition, plant diseases and fertilizer use might decide

Acelora’s efficiency and safety level such as: bedbug and sprayed with pesticides

As a consequence, the quality of Vita juice will be affected by these factors and the

employees would not be paid in the proper time since ingredient and product do not

meet the requirement

The technology is increasingly developed and widely applied The current application in

beverage industry is developing production processes improved packaging:

• ACEROLA will be plant under GAP standard (a standard for good agricultural

practice during the production)

• ACEROLA will be chosen and was picked by the Process research and

development scientist, then these plant will be transported to the factory and put

into production with a close process

• The bottle of Vita juice can be recyclable and reduce 30% CO2 emisssions than

PET bottles

Nowadays, online marketing becomes important way to the company to take a lot of

advantages According to Google, Vietnamese has spent 5-6 hours per day to access to

Internet since 2010, as twice as the hours they spent watching TV, and only 1.5 hours

for newspaper and magazine The forecasting about the trending communication

worldwide show online marketing strongly compete with others

IV. Segmentation Strategy:

Segmentation Segmentation 1 Segmentation 2 Segmentation 3

Geographic term Ho Chi Minh city Ho Chi Minh city Ho Chi Minh city

Demograp Age From 12 to 18 aged From 19 to 24 aged From 25 to 45 aged

like Buy juice drink or be bought by

mom

Busy person, this group begins to care about themselves or the future Young personality, more entertainment, modern and generous Easy to spending

A busy women and take care of the

family The one have decided about household spending and the one have

a stable income Understand clearly benefits of juice and having a demand for using healthy product but do not have enough time for homemade Sensitive with price and quality

The target customer of Vita juice is married women, who aged from 25 to 45 year old

Because in Vietnamese culture, housewives are the one who have taken care of whole

family and have decided about household spending Those women are the one have

the clearly knowledge of benefits of drinking juice for living better

V. Positioning Strategy:

VI. Marketing mix (4Ps):

1. Product strategy

1.1 Product’s attributes:

1.1.1 Product quality:

Vita Juice is totally made by fresh Acerola juice with no insecticide Acerola are harvested from some places, which have the best quality of Acerolas in Vietnam Moreover, Vita companies don’t use preservative to keep the natural taste and safety for users The product will provide vitamin A and others nutrition is as twice as orange.

1.1.2 Product features:

Picture 6.1 Nutrition facts of Vita juice.

Vita’s Company not only wanted to give customers a drink to quench their thirst, but also

to bring a drink for customer’s health The Vita juice has a wonderful nutrition and function:

• The amount of vitamin C in this fruit is more 30 times than orange

• Vitamin A and others nutrition is as twice as orange

• Vita also help to anti-aging, enhance the immune systems

• Dietary fiber of Vita help to reduce digest problems

• Adjust blood pressure

• Control Blood Glucose Level (BLG)

• Support weight loss

• Acelora cherries helps prevent flu and cold

• Immune stimulant and strengthens the defenses against germs and viruses

• Acelora cherries contains vitamins and minerals in order to enhances skin and hair

1.2.1 Symbol

Picture 6.2 Logo of Vita juice bottle.

The logo Vita juice with the main color is green, which is symbolizes balance and richness It also represents the youthful and extremely beneficial to health The green of glass, the green of field, everything comes from nature

Package: 6 bottles/block, etc

Size: 180ml for individual and 1l for family

1.4 Label

Picture 6.3 The design of Vita bottle Picture 6.4 The label of Vita’s bottle

The background label of Vita juice is white to highlight color of Acerola juice Vita juice uses bright color such as: green, red, oranges to represent the youthful and extremely beneficial to health It also has Acerola cherries to show Vita juice is made from fresh and the best fruit

2. Price strategy

PRODUCT PRICE LIST

Number 1 juice cam 8000vnđ/ 500ml 16vnđ/ ml TriO 3500vnđ/ 200ml 18vnđ/ ml Vita 6000vnđ/ 180ml 33vnđ/ ml Minute maid 7000vnđ/ 330ml 21vnđ/ml Twister 7000vnđ/ 320ml 22vnđ/ ml Vfresh 6000vnđ/ 200ml 30vnđ/ ml

The price strategy of the company is valuation on competitor, Vfresh, which is based on the comparison between the 180ml bottle.

The Acelora juice has two-sized bottle: