Marketing plan for launching a new hybrid waxy corn seed milky 36 in vietnam market

i TRƯỜNG ĐẠI HỌC MỞ TP.HCM UNIVERSITÉ LIBRE DE BRUXELLES HO CHI MINH CITY OPEN UNIVERSITY SOLVAY BRUSSELS SCHOOL MBMM4 TRAN CAO DAI MARKETING PLAN FOR LAUNCHING A NEW HYBRID WAXY CORN SEED MILKY-36 IN VIETNAM MARKET MASTER PROJECT MASTER IN BUSINESS & MARKETING MANAGEMENT Tutor’s name: Dr Vu The Dung Ho Chi Minh City (2010) ii COMMITMENT This thesis contains no material that has been accepted for the award of any other degree of diploma in any university or other institution and to the best of my knowledge contains no material previously published or written by another person, except where due reference is made in the text of this thesis In this study, the in depth interview is conducted by myself, the interviewees are listed out in the thesis their address and contact number and with a voice tape recording Thus, it has high level of trust, confidence and agreement This information source is strictly warned by Dekalb (Vietnam) Co., Ltd to use for internal business purpose and not allowed to be spread out excepting for the jury of Solvay Business School and some marketing professionals including the MBMM tutor iii ACKNOWLEDGEMENTS I wish to express my profound gratitude and great appreciation to my advisor Dr Vu The Dung for his valuable guidance, advice and encouragement throughout the research study Special thanks are extended to my colleagues at Monsanto (Thailand) Representative Office for taking interest and giving valuable suggestions to improve the content of this study as well as providing me the materials needed for the research Taking this opportunity, I would also like to thank all lecturers, mentors, HCMC Open University staffs and my classmates for their assistance and co-operation during my twoyear’s time at the MBMM program of Solvay Brussels School I remain indebted to my beloved family, friends for their valuable encouragement and unceasing supports in my academic pursuits iv TUTOR’S COMMENTS Student name: TRAN CAO DAI Attitude: hard working Content: well designed and structured Method and technique: appropriate Data analysis: good and reliable data sources and analysis Recommendation: Provide some good recommendations Overall comments: The project has been successfully completed and met all the objectives Very good Tutor Dr Vu The Dung v LIST OF ABBREVIATIONS ABBREVIATIONS COGs MEANING Cost of Goods sold DUS Differentiation, Uniformity, Stability tesing EWIC East West International Company EWJVSC East West Joint Venture Seeds Company FCPA Foreign Corrupt Practice Acts FY Fiscal year GMO genetically modified organism NCVESC National Center for Variety Evaluation and Seed Certification OP opened pollination variety P&L Profit and Lost R&D Research and Development SSC Southern Seeds Company SWOT Strength, Weakness, Opportunity and Threat USD US Dollar VCU Value of Cultivation and Use VND Vietnam Dong VNSC Vietnam National Seeds Company vi TABLE OF CONTENTS CHAPTER PAGE Title Page i Commitment ii Acknowledgements iii Tutor’s comments iv Abbreviations v Table of Contents vi Appendices ix References ix List of Figures and Tables x INTRODUCTION 1.1 Rationales of research study 1.2 Problem statement 1.3 Objectives of the research 1.4 Scopes and limitations 1.5 Managerial implications 1.6 Research Methodology LITERATURE REVIEW 2.1 Introduction 2.2 Marketing plan 2.3 The contents of marketing plan RESEARCH DESIGN 12 3.1 Problem definition 12 3.2 Methodology design 13 3.3 Information need 13 3.4 Conduct an in-depth interview 14 3.5 Sampling and respondents 15 FINDINGS AND ANALYSIS 16 vii 4.1 Market definition 16 4.2 Product performance 17 4.3 Market research 20 4.3.1 Market situation and the key success factors 21 4.3.2 Broker’s role 24 4.3.3 Advertising and brand awareness 25 MARKETING PLAN 27 5.1 Company profile 27 5.2 The Objectives of company 27 5.3 Current Situation of Waxy corn market in Vietnam 28 5.4 5.5 5.3.1 Market definition 28 5.3.2 Market size 29 5.3.3 Market segmentation 29 5.3.4 Industry structure and strategic groupings 29 5.3.5 Competition and market share 32 5.3.6 Competitors' strengths and weaknesses 33 5.3.7 Market trends 34 Consumer Analysis 34 5.4.1 Nature of the buying decision 34 5.4.2 Demographics 35 5.4.3 Participants 35 5.4.4 Buyer motivation and expectations 36 5.4.5 Loyalty segments 36 Dekalb (Vietnam) - Current Situation 36 5.5.1 Company resources 36 5.5.2 Objectives of Milky-36 launching 36 5.6 Summary of Situation Analysis 37 5.7 Marketing Plan for launching Milky-36 in Vietnam Market 39 5.7.1 Product – Waxy corn Milky-36 39 viii 5.8 5.9 5.7.2 Price 40 5.7.3 Promotion 41 5.7.4 Distribution 42 Implementation 43 5.8.1 Sales forecast 43 5.8.2 years sales forecast of Milky-36 43 5.8.3 Marketing activities support the launching 2011 44 5.8.4 Promotion equipments 44 Financial Summary 45 CONCLUSION AND RECOMMENDATION 46 6.1 Conclusions 46 6.2 Recommendations 46 ix APPENDICES Appendix 1.1: Certificate of Investment issued by Ho Chi Minh City People’s Committee Appendix 1.2: Decision 188/QĐ-TT-CLT – Milky-36 permanent approval Appendix 3.1: In-depth interview structured questionnaires for brokers Appendix 5.1: Milky-36 leaflet Appendix 5.2: Milky-36 poster REFERENCES x LIST OF FIGURES AND TABLES FIGURES PAGE Figure 4.1: Dekalb (Vietnam)’s strategic crops market growth assumption 16 Figure 4.2: Dekalb (Vietnam) - Vegetable Seeds Division – years growth planning 17 Figure 5.1: The hybrid waxy corn seed market share by company, 2010 32 Figure 5.2: Waxy corn business model in Vietnam 35 TABLES PAGE Table 1.1: Corn planting area in Vietnam, 2009 Table 3.1: Kvale’s stages of conducting in depth interview 14 Table 3.2: Respondent’s profile 15 Table 3.3: Topics to discuss with respondents in depth 15 Table 4.1: Yield of Milky-36 in Spring 2008 in Northern provinces 17 Table 4.2: Yield of Milky-36 in Winter 2008 in Northern provinces 18 Table 4.3: Yield of Milky-36 vs current hybrids across Vietnam biological regions in Winter-Spring 2008, Spring-Summer 2009 and Summer-Autumn 2009 18 Table 4.4: Milky-36 agricultural characteristics and taste compare to current hybrids 19 Table 4.5: The interested traits vs product performance of current hybrid waxy corns in 2008 .20 Table 5.1: Waxy corn planting area forecast (2009 – 2015) 29 Table 5.2: Vietnam Waxy Corn Players analysis 33 Table 5.3: Summary of the Business Opportunities and Threats 37 Table 5.4: Summary of the Company’s Strengths and Weaknesses 37 Table 5.5: Milky-36- Monthly sales forecast in 2011 43 Table 5.6: Milky-36- Long Range Planning (FY11-FY15) 43 Table 5.7: Marketing activities support launching plan in 2011 44 Table 5.8: Profit and Loss (P&L) analysis in years 45 - 47 - consists of the most advantage condition for waxy corn and near by the main consumption market Ho Chi Minh City Setting a financial budget to pay for brokers as collaborator monthly salary in order to utilize their roles to promote Milky-36 during the first years This financial benefit is to support their daily expenditure for the buying corn activities how to cover their meal, gasoline, Utilizing broker’s present in farmer meeting or field day to promote Milky-36 to grower in the region Organizing talk show on local TV in the a major area for corn with broker’s present as the important partner to make sure that grower who plant Milky-36 will be guaranteed to buy by broker Setting a campaign of product testing for wholesalers, retailers and end consumes in Ho Chi Minh City during the first launching month to create the market demand for Milky-36 LIST OF REFERENCES Gitman, Lawrence J; Carl D McDaniel (2005) The Future of Business: The Essentials Mason, Ohio: South-Western Kvale S (1996) Interviews: An Introduction to Qualitative Research Interviewing London: Sage Publications Malcolm McDonald, (2007) Marketing Plans – How to prepare them, how to use them Sixth Edition, 2007 Michael Baker, (2008) The Strategic Marketing Plan Audit Porter, M.E (2008) The Five Competitive Forces That Shape Strategy Harvard business Review, January 2008 Wikipedia, the free encyclopedia, 2009 http://en.wikipedia.org/wiki/Marketing_plan#cite_note-Baker_08-3 Appendix 1.1: Certificate of Investment issued by Ho Chi Minh City People’s Committee Appendix 3.1 IN-DEPTH INTERVIEW STRUCTURED QUESTIONNAIRE FOR WAXY CORN BROKER A STUDY OF DEFINING THE INFLUENCED FACTORS TO A HYBRID WAXY CORN SEED LAUNCHING IN 2010 Respondent’s name: Address: Telephone number: Started time: Finished time: Recorded tape code: Time of interview: Description of despondent: Statement of interviewer: I have finished the structured questionnaire according to the guideline (Signature and name) Good morning, Mr………………! My name is: Tran Cao Dai I am conducting a study to define the influenced factors to a hybrid waxy corn seed in the market Since you are known as one of the most prestigious waxy corn broker in region, therefore, I am interested in knowing your views about the market of hybrid waxy corn in Ho Chi Minh City and the influenced factors to launch a new hybrid corn seed into the market as well It will be appreciated if you could spend some time with me to discuss about this issue And if it is okay with you, I will be tape recording our conversation The purpose of this is so that I can get all the details but at the same time be able to carry on an attentive conversation with you I assure you that all your comments will remain confidential I will be compiling a report which benefits to my study purpose without any reference to individuals If you agree to this Structured Questionnaires For Waxy Corn Brokers interview and the tape recording, we will start now! I would like to start by asking you that: - Respondent’s How long have you been in waxy corn business as a answer: broker? Experience Where are the locations that you are buying waxy corn from grower? - Where is a wholesales market that you are selling to? - On average, how many ton of fresh ear corn you buy a day, a week or a month? Or how many hectare of waxy corn you buy a day, a week or a month? (Probing to gather more the needed information) - Now, I would like to ask you that how could you describe Respondent’s the waxy corn market is growing in recent years? - answer: What are the key drivers that constitute the current waxy corn market in Ho Chi Minh City compare to the last years? - In which, what is the most important driver? And why? And then? Market - Situation How you foresee the hybrid waxy corn market in the near future? And why? - Could you please list out all the current hybrid waxy corns in the market that you know? - With listed hybrids you just mentioned, what hybrid (s) you assume the best success in term of market penetration? And why? - What hybrid (s) you foresee that will be leading the market in next year? Why? Key - In order to penetrate the market successfully, what are the Respondent’s Structured Questionnaires For Waxy Corn Brokers success factors characteristics of a hybrid waxy corn must have? - answer: In term of product performance, what is the most important between grower orientation, broker orientation and end consumer orientation? And why? - What are the specific requirements from grower for a hybrid waxy corn in term of product performance? - The same for broker? And end consumer? Now, assuming there is a quite good new hybrid waxy corn variety that we not pay much concern on product performance Talking about the marketing strategy, what are the strategies that you think the company should focus on in order to obtain a success penetration? In which, what is the most important one? - Your activities somehow look like an advisor role Have Respondent’s you ever interfered into the decision making of grower in answer: which variety they should use? If yes, how you advice them? Why you advice them like that? What is a specific variety you advise them to use? - To grower, your role is actual a buyer and you are playing the role of seller to wholesaler or retailer Could Broker’s you please describe a whole process from buying a fresh role ear waxy corn field from grower to selling to a wholesale market or retailer (street vendor)? - How you buy from grower? And how you pay for them? - How you sell to wholesaler or retailer? How they pay for you? - For you, what are the risks of waxy corn business? How you to avoid that risk? Structured Questionnaires For Waxy Corn Brokers - But for a seed company, you are playing a very important role in order to launch a new hybrid waxy corn seed into the market Following are sensitive questions which relate to business, I appreciate if you respond to me these questions - What is the criteria of the company from which you prior to promote their product? - How they approach you? - To obtain your support to promote their variety in the market, what they offer you? - In case of mutual beneficial obtaining, what would you prefer to? Can you describe more? - Have you ever had any reaction to boycott a product from any company? If yes, can you please tell me why? Brand - awareness Let discuss about the advertising, for your own opinion, Respondent’s answer in order to gain more grower’s attention on the hybrid waxy corn, how should company do? - What is the most effective mean of advertising? - Is there any prior to the selection of grower between a local variety and an imported variety? If yes, how is grower’s perception in brand’s equity? - If there is any comment to company, what should you comment? Finally, I appreciate your cooperation! Thank you and wishing you and family a healthy a success in the waxy corn business! Structured Questionnaires For Waxy Corn Brokers Appendix 5.1 a: Waxy Corn Milky-36 leaflet Appendix 5.1 b: Waxy Corn Milky-36 leaflet ... involves forging a plan for a firm''s marketing activities A marketing plan can also pertain to a specific product, as well as to an organization''s overall marketing strategy Generally speaking, an... be part of an overall business plan Solid marketing strategy is the foundation of a well-written marketing plan While a marketing plan contains a list of actions, a marketing plan without a sound... understand the factors influence to the new hybrid waxy corn launching into the market - To establish an appropriate marketing plan to satisfy influenced factors above for a success launching 1.4