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 Student ID: 1321001532 Class: CLC_13DMA1 Course: Marketing management Course code: 1511102006001 Lecturer : NINH ĐỨC CÚC NHẬT On- time submission Late submission Individual assignment Group assignment • Group members: DƯƠNG HOÀNG LAN ANH VÕ HOÀNG THÁI BẢO ĐỖ GIA HUỲNH DƯƠNG THU HƯƠNG VŨ THỊ QUỲNH NHƯ LÊ TRẦN UYÊN VY Assignment name Due date Word count Number of pages I hereby guarantee that the content included in this submitted assignment is my own work, made by me without copying other people’s works and ideas Information and conclusions drawn from other authors are all cited and stated in the reference list I fully understand and accept that plagiarism will result to zero mark Signature TABLE OF CONTENTS I II III IV V VI VII VIII Introduction…………………………………………………… SWOT Analysis……………………………………………… Macro-Environment Analysis………………………… Segmentation Strategy…………………………………… Positioning Strategy……………………………………… Marketing mix (4Ps)……………………………………… Conclusion……………………………………………………… References…………………………………………………… Executive summary: I Introduction: The Beverage Market is one of the most developing industry In addition, Non-alcoholic 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 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 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 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 One year goals The company tries to achieve: - II 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 SWOT Analysis: Strengths: - - - 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 Weakness: - 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 Opportunities: - - - 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 Threats: - - - - 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 not have belief of the 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 be ensure 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 the customer’s mind The company will invest more in marketing and build distribution channels III Macro-Environment Analysis: Demographic environment: 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 / 11,003,082 females) • 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 size small (2-4 people) are the most common (almost 65%), while very few households with more than people The number of single - parents families accounted for a small proportion (8%) but have tended to increase since 2010 Economic environment: The rate of GDP was estimated 5.98% in 2014 higher than the rate of GDP in 2012 (5.25%) and in 2013 (5.42%) The rate shows the positive sign of economy Picture 3.1 GDP growth rate of Vietnam from 2000 to 2014 Source: GSO 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 in Vietnam from 2014 The Vietnamese packed food would increase 24.2% of output and 48.7% of sales Although the effect of western’s culture like modern life style, the consumers still care about the healthy, food safety and its origins So, they change from using fresh ingredient to packed food Therefore, a strongly investment in this industry increases the sales Consumer Price Index CPI in Vietnam reported by the General Statistics Office of Vietnam showed that Vietnam CPI in July 2015 reached to 159.65, which is the highest in the last years Our target customers is the young adults from 20-40 years old having stable incomes Picture 3.2 CPI Vietnam in 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 healthy growth rate It makes Vietnam economy become a newly industrializing economy where middle 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 times higher than other regions of the country, about 5.131 USD It makes Ho Chi Minh city became a good market for our services as people having higher income are willing to pay 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 industry reached at 4.05 billion litters, an increased 2.7% in total Current Prices Unit: 1000 VND Year 2002 2004 2006 2008 2010 2012 All 356.1 484.4 636.5 995.2 1,387.1 1,999.8 City 622.1 815.4 1,058.4 1,605.2 2,129.5 2,989.1 Rural areas 275.1 378.1 505.7 762.2 1,07.4 1,479.4 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, the revenue 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 the quality of product, especially the healthy problem As the result, researching new product with constituent advance healthy is best way to win the market Sociocultural environment: Firstly, according to latest research from W&S Company: • • The consumers consumed juice or milk juice achieved 62.0%, which is higher than consuming carbonated drink (60.6%) In Ho Chi Minh City, almost the consumer drinks juice one time/per day which occupied for 26.1% in the total items Picture 3.4 The level of using juice according to accommodation Source: Vinaresearch • • The frequency of young people drink juice more than one time per day is about 27.8% Both men and women also rated the important of fresh juice for having a healthy life So it will be a potential market for the company to deploy Acelora juice 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 fit healthy body Picture 3.6 The percentage of the reason choose to drink juice Source: Vinaresearch Besides, they chose juice for reasons: the taste of different kind of fruit, slaking their thirst, adding more vitamins for body Juice is usually drunk with friend and family Not only 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 be busier and eat more prepared food However, customers concentrate more on food safety and origins Not only needing some products which have enough nutrition for the body, 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, HCM city, Can Tho Finally, Vietnam is a country of tropical climate and agriculture, which has a lot of fertilize soil, experienced farmers in planting and several of fruit However, no one haven’t explored and developed it usefully Therefore, the company will cooperate with farmers 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 customers more choices with an affordable price 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 not meet the requirement Technology environment: 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 Geographic term Demograp Age Segmentation Segmentation Segmentation Ho Chi Minh city Ho Chi Minh city Ho Chi Minh city From 12 to 18 aged From 19 to 24 aged From 25 to 45 aged Income hic term Gender Marital status Mostly live dependent on the parents [...]... 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... 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