MARKET - RONG XANH CO., LTD CONTENT 1.Executive Summary: Slogan: Dragon Fresh Fruit – For Health and Natural Beauty - Brief description of products: Dragon fruit tree is popularly plant
Trang 1EXPORT MARKETING PLAN OF BEVERAGES FROM DRAGON FRUITS
TO THE U.S MARKET - RONG XANH CO., LTD
CONTENT 1.Executive Summary:
Slogan: Dragon Fresh Fruit – For Health and Natural Beauty
- Brief description of products:
Dragon fruit tree is popularly planted in tropical countries under hot and humid climate In Vietnam, this kind of tree is mainly planted in Southern provinces, but at present also quite popularly planted in Northern provinces Dragon fruit is sweet, a little sour, known as a kind of cooling fruit Apart from directly eating, dragon fruit may be used for making the sweetened porridge and delicious and nutritious salad
Dragon fruit is also called as dragon-eyed tree or basin tree…is a creeping vine up
to 10m, clinging to the substrate through the lateral roots Green body, three camouflage angles, horns at the edges, little and very short spikes Its scientific name is Hylocereus undatus (Haw) Britt & Rose which belongs to the cactus family (Cataceae) and is originated from Central and Southern American countries such as Mexico, Honduras, imported into Southeast Asia countries as bonsai, food and medicine The dragon fruit trees often give fruits in the summer or autumn, however it is likely to grow dragon fruit trees for giving fruits all the year
Scientists also found that mucus in dragon fruit helps reduce cholesterol and bile salts food Therefore, obese people, people with cholesterol levels, high blood pressure should eat dragon fruits Dragon fruit is also good
for diabetes, hypertension, and chronic constipation
Moreover, dragon fruit trees get very little pests or
insects so growers only need to use little plant
protection products Currently, this fruit is very
popular by consumers because it’s nutritious,
cooling, delicious, and especially ensured food safety.
Trang 2Dragon Fruit Flavor Aloe Vera Juice Dragon Fruit Jelly
According to researchers, in spite of becoming the leading dragon fruit exporter of the world, Vietnam has not fully exploited the potential of this kind of agricultural product yet The production output is plentiful but the rate of export meeting standard is not high Lots of products grade 3 which do not meet the model, are rejected in sizes and mainly provided in the domestic markets or retailed at the very cheap price.This is a great waste Therefore, there is also much producing potential from the bulk of these rejected fruits (in the actual quality of the dragon fruit is not affected) One of the potentials is juice production into cans for fast drink The canned drinks are the popular type of beverages in foreign markets, especially Europe and America (the United States is the third largest importers of dragon fruit Vietnam)
Trang 3Experiments dragon fruit juice products
With the desire to help dragon fruit growers feel assured, Department of Science and Technology of Binh Thuan in cooperation with Rong Xanh Co., Ltd - The first business of Binh Thuan province tested processing fruit juice from dragon fruits
successfully That's three major product lines: Dragon Fruit Jelly, Pure Dragon Fruit juice, Dragon Fruit Flavor Aloe Vera Juice Currently, our products are sold in
supermarket systems such as Citimart, Satra, and Maximax, exported to Laos, Cambodia (at average per month export 40 thousands of products to the market) Owning the first and unique product, Apart from the product distribution into the domestic markets and Southeast Asia region, Rong Xanh Co., Ltd is actively seeking partners and plans to export this product to foreign markets, especially the U.S market where there is always full potential for the fast drink market
- Define target market:
Currently, Apart from providing for the domestic markets, each day Vietnam can export 1,000 tonnes of dragon fruits to foreign markets Until now, there are 32 provinces and cities in Vietnam where about 25 thousand hectares of dragon fruits are planted with the output of 460 thousand tons / year, the export turnover reaching 150 million USD
The quality of Vietnam dargon fruits has met the criteria and and rigorous requirements of many demanding markets Vietnam dragon fruit is the first kind to be granted export codes and licensed to the U.S market In 2012, Binh Thuan dragon fruit
has been granted certificate of trademark protection by United States Patent and Trademark Office (USPTO).
As reported by the Ministry of Industry and Trade, in the first 5 months of 2013, dragon fruit exports reached 130.6 thousand tons export quota reached 78.9 million, increased 3.7% in volume and 241, % in quota over the same period Apart from the traditional export markets such as China, Thailand, Indonesia, the Netherlands Recently, Dragon fruit has also been exported to the new markets such as Spain, the Philippines, Norway, India and Qata For the new markets with not much high quotas, but it’s the first step to create diversity in the market structure, gradually reduce dependence on some key markets
Trang 4According to the statistical report, the population of the United States is about 314 million people in which the Vietnamese Americans is 1, 8 million Currently, Vietnam agricultural products such as cashew nuts, coffee, seafood (shrimp, Tra fish), pepper, rubber and fruits such as dragon fruit, avocado, mango, guava, rambutan are more and more popular in the United State.Not only Vietnamese Americans but also the natives are also attracted by Vietnamese agricutual products Vietnam is one of the top 15 countries who export the largest amount of agricultural products to the US market This is the prerequisite confirmed an import market potential for agricultural commodities, Vietnam's seafood
Rong Xanh company also found that, among the Vietnamese community in the United States, the highest concentration in the state of California and in this state, the Vietnamese people in the city of San Jose's population accounts for 9.2% statewide So they came into the U.S market, the company identified immediate enlist the support of the Vietnamese community in San Jose in particular as well as in the state of California
to "pedal" before you can enter the full U.S market integrity Like other products, when exported into any public market, the company will also need support from the distributors that present on this market Therefore, the company will initially deploy distributed in supermarkets The supermarkets are:
Firstly, Thuan Phat supermarket chain of Vietnamese Thuan Phat is a supermarket system including 15 markets (12 markets in California, 2 markets at Las Vegas and 1 market at Dallas Texas) Appeared in Monterey Park, California in 1993, leaders of Thuan Phat all have large knowledge of food so a special product like dragon fruit juice surely gets a support and concern from Thuan Phat
Secondly, Walmart Supermarket system This is a very big supermarket system in the United State Walmart with its large turnover is currently the leading enterprise of the top 500 biggest enterprises in the world Founded in 1969, this supermarket system is present at most of the US streets or cities and is the most ideal partner for any retailers to enter the US market It’s difficult to convince Walmart, but currently Rong Xanh Company has a lot of advantages to do this successfully, by the following reasons:
- Walmart (together with Kroger) are the two newly licensed enterprises for Purchase of Vietnam Goods There are many items of Vietnam which are present at Walmart supermarkets including dragon fruit products
Trang 5- Walmart is currently paying special attention to Vietnamese products and desires to have typical products of Vietnam A special product like dragon fruit juice is surely an object which can not be ignored
- The existing products of Rong Xanh Company with packing model of 10ml
PP (Polypropylene resin) cups and 250ml cans are suitable products to be sold in the
supermarkets A special but cheap product will be very potential and easy to consume
Currently, Business Association of High Quality Vietnam products work with leaders of Walmart in Vietnam on procurement manners and criteria of Walmart This is
a great chance of Rong Xanh Company to work with this large partner
- Competitive advantage :
Currently China is still the largest export market for Vietnam dragon fruits, accounting for 70.9% of the total export dragon fruit quota The United States is still one
of the three large import markets of Vietnam dragon fruit Also due to being planted in accordance with international standards so recently the dragon fruit export quota to the
EU has reincreased again
Although the dragon fruit is also grown in many countries in the world, but with a natural preference, climate, geology, the Binh Thuan dragon always have high export value because of its attraction in the shape, color, taste and nutrition This fruit is also suitable for vegetarians, those with high blood pressure, so the dragon can speak very well for the treatment and health promotion for people
Biochemical, nutritional composition of dragon fruit
Components g/100gr dragon Components Mg/100gr dragon
Source: Department of Agriculture and Rural Development in Binh Thuan
By analyzing the biochemical composition of Binh Thuan dragon fruit can be seen
in comparison with some other kind of dragon fruit contains more mineral content,
Trang 6especially iron, potassium if eaten regularly can lose weight for obese people, for a beautiful body balance without affecting health
- Positioning statement :
Currently, Rong Xanh Company is looking for export markets as foreign partners who are very popular in dragon fruits like United States and Japan, aims at exporting its products processed from dragon fruits to foreign markets and becomes one of leading companies in researching and manufacturing kinds of juices from dragon fruit, an worldwide well-known fruit of Vietnam
The difference in dragon fruit jelly and Dragon Fruit Flavor Aloe Vera Juice is totally made from pure and fresh dragon fruits and fresh aloe vera with naturally opaque color Products are ensured non-chemicals in the processing, DEHP like similar jelly products in the market Products are packed in a PP 100ml cup, utilized as snacks, desserts or entertaining guests everyday
With Dragon Fruit Flavor Aloe Vera Juice is combined by two kinds of materials
of high medical properties; the effects of Aloe vera are recognized and widely available
In combination with dragon fruits to create a blended and orginal product which has effects of body purification, cooling, retaining a beautiful skin and good health Packages with 250ml aluminum cans which are imported from Korea Lotte suppliers can be recycled and friendly with environment
The products of company ensure 100% ingridients form natural fresh fruits, no use
of chemicals or condiments Equipment lines and workshops are co-ordiately invested in compliance with HACCP standard lines (United States Standard system of food safety and hygiene The company has a strict quality control system from the first stages of observing the gardeners to the selection stages, the production stages into finished products
Dragon Fruit Jelly Dragon Fruit Flavor Aloe Vera Juice
Trang 7- Anticipated sales, profits and market share :
Initially, the company identified the object should be concerned that the Vietnamese-American community in the city of San Jose, California, this is a niche market potential operators should be concerned, they are who has known the dragon fruit taste and sense of taste this fruit, as well as the origin of Vietnam, it would get the support from our customers and it will be a great opportunity for the Company's products have a place when I first arrived in the U.S market
However, since this is a new product, entering a market "difficult" as the U.S.
market should the Company not aim too high in terms of revenue, profit and market share
in the first year
Year Sales (USD) Profit (USD) Market share
But this is just the expected level of sales targets, depending on the "response" of the market as well as business results in the first year, the company will take steps to adjust accordingly
2.Market and Situation Analysis: SWOT Analysis
- Strength:
The first strength of Rong Xanh Company is its product As the first product to appear in the market, the special product of much medical properties can be a good breakthrough which helps Rong Xanh to enter the market successfully Furthermore, no direct competitors will help Rong Xanh to become “unique” in the dragon fruit juice market
Secondly, the manufacturing factory of Rong Xanh Company are built in compliance with HACCP Standard of America, which helps the products of Rong Xanh
to meet the strict standards of America
Thirdly, the abundant material source of Vietnam makes a foundation for the company development Currently there are a quite large number of dragon fruits which are rejected due to not meet the aesthetic standards for export and sales off with very cheap price This is the large and cheap source of material to help the company to reduce the production cost and to produce with high yield At present, the market price of
Trang 8Dragon fruit jelly is 4.500 dong per product and Dragon Fruit Flavor Aloe Vera Juice is 8.000 dong/per can This is a cheap price for this nutritious product
- Weaknesses:
The greatest weakness of Rong Xanh Company is that its products have not been granted the import certificate into the U.S yet The company should immediately implement registration for Certificate of product quality and worldwide brand protection This is the passport for export to the U.S and to consumers
Secondly, about the product capacity At present, the company has just achieved productivity of 15.000 dragon fruit jelly and 5.000 cans each day
- Opportunities : There are many opportunities for Rong Xanh Company in the US market
Firstly, as demonstated above, America is one of the top countries in consuming refreshing drinks and fruit juice in the world The US market is an open one and chances are always available to all companies
Secondly, Vietnam dragon fruits as well as other agricultural products are very popular in America Vietnam rose to be one of the top 15 countries in exporting the most agricultural products to the US market Many agricultural products of Vietnam such as cashew nuts, coffee, seafood (shrimp, Tra fish), pepper and fruit become everyday food
of American families now At present, the amounts of dragon fruit export to the US market are more and more increasing which is a chance for products from dragon fruit juice to develop in this market
Thirdly, more and more America consumers choose the products which have high quality and are good for health at moderate amounts According to Nutraingredients-usa.com, in 2009, sales of food products and good –for-health beverages have a record of
143 billions USD and are more and more increasing A product which is rich in nutrients and has many medical effects,combined with Aloe Vera( a plant with high medicinal properties have been widespread and stems from the U.S market) and seaweed made from pure fresh fruits without doping and low in sugar, It will surely get the special attention of consumers
Fourthly, there is a great number of Vietnamese living in America, more than 1.8 million people This is the top potential market as well as an important bridge to to bring products to the natives
Trang 9 Finally, Chances of Dragon fruit juice are very great because at present, Dragon fruit juice is a unique product in the market There is no internal competition
- Threats :
The first thing to mention is rigorous and difficult regulations of the US market Not only the products from Vietnam But also all other products even from Europe are subject to the strict regulations on food hygiene and safety of America Especially, many new more stringent regulations which are applied for food imported into the U.S market
is expected to take effect this year and in 2013 The U.S government is tightening food hygience and safety by releasing FDA Food Safety Modernization Act - FSMA This is the law signed by President Obama on January 4th, 2011 By 2016, the provisions of this new law will have been enacted or promulgated fully, but curently each part of the amendment laws is being enacted gradually and effective immediately, including a number of provisions will be valid in 2013 This is a huge challenge for Vietnam products Although production in accompliance with HACCP standards, but it’s still required that Rong Xanh company must have carried out very carefully all the output control stages of products to prevent products from not meeting the standards Every year, about 600 inspections held by the United States shows the difficulty of the product
in the entry and exist in the U.S market The anti-dumping lawsuits in the recent years have been one of the great lessons of Vietnam products in the United States
Dragon Fruit Juice is a worldwide totally new product, which is considered as an advantage but great challenge for the entry of products into the market and being popular among consumers
The final thing is to mention the competitiveness of other alternative products American consumers still prefer gas drinks Despite the fact that the trend of fruit juice is rising but the fruit juice still occupies a small proportion than other drinks Furthermore, fruit juice is a product that has been manufactured in the U.S for a long time with numerous categories A new product is required to find the exact target market and the most suitable marketing strategies so that it can develop in the most competitive world markets
3.Market Segmentation and Customer Analysis
The United States is a developing industrial country on the top of the world Gross Domestic Product (GDP) in 2012 is about 15,685 billion USD, acounting for 20% GDP
of the whole world GDP per capita is about 49,965 USD In its economic structure, the
Trang 10service sector accounts for about 79, 7%, Industry 19, 1% and Agriculture1, 2% Import-Export quota of the United States accounts for more than 30% GDP and the Unites States
is the largest importer & exporter of the world
Consumption demand for agricultural products in the United States is very great and highly dependent on the import amounts: 50 % fresh fruit products, 80% maritime products Statistics of US Department of Agriculture showed that Most of the potential agricultural products such as rubber, coffee, tea, fresh fruit, shrimp, fish suddenly increased in volume in the U.S market Typically seafood and maritime products in 2011 was approximately 1.1 billion USD ; rubber reached 86.6 million, coffee reached 487.5 million USD As of June 2012, the output of Vietnam agricultural export to the United States with a total turnover of 1.1 million USD
According to experts, in the coming time, agricultural products imported into the U.S will be carried out quality checks in compliance with Food Safety Modernization Act (FSMA) newly issued by the government Accordingly, in 2012, the United States will carry out the very strict test procedures for commodities of all countries when exported to this market, including agricultural products, food and beverages Under the FSMA, U.S Department of Agriculture would have the authority to order checks or withdraw products exported to the United States if not made quality assurance and charge for all product exporters
America is the country which has the average amount of beverage consumption per capita on the top of the world: 216 litres /person/year, mentioned to Ireland and Norway As of fruit juice consumption, Canadians are ranked as the top consumer: 512 litres /person/year, followed by the U.S and Germany In each region, Consumption of beverages has its own characteristics and depends on its norms and delelopment level American people have soft & sweetened drinks for refreshing themselves
Countries have the largest amount of beverage consumption in the world
(Source from www.nationmaster.com )
Ranking National Liters/person/
Liters/person/ year
State
Zealand
84,2