KẾ HOẠCH MARKETING QUỐC TẾ CHO ĐỒNG HỒ CURNON

UNIVERSITY OF FINANCE - MARKETING FACULTY OF MARKETING CLASS: CLC_17DMA2 INTERNATIONAL MARKETING PLAN FOR CURNON IN CAMBODIA 2020 Lecturers: MBA Ngo Minh Trang Group: HCMC – October 2019 UNIVERSITY OF FINANCE - MARKETING FACULTY OF MARKETING CLASS: CLC_17DMA2 INTERNATIONAL MARKETING PLAN FOR CURNON IN CAMBODIA 2020 Lecturers: MBA Ngo Minh Trang Group: No Member Student’s code Pham Quang Thuy 1721001634 Do Thanh Ngan 1721000602 Trinh Quoc Bao 1721000655 Phan Hoang Bao 1721000654 HCMC – October 2019 Contents Introduction .1 1.1 Overview brand and main product 1.2 Overview brand and main product 1.3 Primary entry strategy 2 Research Methodology 2.1 Qualitative methods 2.2 Quantitative methods .5 Situational Analysis 3.1 Company Analysis 3.2 Market Analysis .7 3.2.1 Economic Environment .7 3.2.2 Social and Cultural Environment 3.2.3 Demographic Environment .9 3.2.4 Nature of Demand 11 3.3 Competitors Analysis .11 SWOT Analysis 13 Objectives .15 S-T-P Strategy .16 Marketing-Mix Strategies and Tatics 18 7.1 Product Strategies 18 7.2 Place-Distribution Strategies 26 7.3 Price Strategies .31 7.4 Promotion Strategies 35 Planning Budget 38 8.1 Planning Assumption .38 8.2 Forecast Sale and Cost 38 8.3 Forecast Profitability 40 Implementation & Control 41 10 Reference 41 Introduction 1.1 Overview brand and main product Curnon is a product line of a project of a number of young Vietnamese to bring high-class products from the country to fashion-loving consumers Up to now, most high-end watches in Vietnam are mostly imported or carried by foreign brands With concern about quality, beautiful, luxurious, youthful and stylish watches, a group of young people have cherished and created a unique Vietnamese watch brand Surprisingly, Curnon watches with minimalism design made many people feel extremely excited and eager to own At the beginning, although there was confidence in the product, there were quite a few people who doubted the possibility of developing a Vietnamese brand among many foreign brands However, contrary to those doubts, Curnon became a phenomenon for young people and fashion watch lovers because of its minimalist but classy design, and the price is reasonable with the income of many people number of Vietnamese people Although manufactured in Vietnam with Vietnamese skills, Curnon's products are not inferior to international fashion watch brands In addition to beautiful design, Curnon's apparatus is also rated as "genuine", 3ATM water resistant, equivalent to a rating equivalent to a water resistant level of 30m This means that with a Curnon watch, you can not worry when go in the rain, wash your hands, fall into water Not to mention that, Curnon also regularly launches product lines with different personalities for many consumer So far, Curnon has created a community that loves the product lines of this brand quite aggressively Many of Curnon's product lines are in the process of being completed, but the number of previous orders has exceeded expectations Even, many product lines "sold out" and forced Curnon to restock after a while of launch After years of operation, Curnon has officially had stores in Hanoi and Ho Chi Minh City and one e-commerce channel to online shopping 1.2 Overview brand and main product Cambodia is predicted to grow 7.1% in GDP in 2019 while the average income is expected to be 1500 USD This mean the Cambodians are wealthy enough to create new demand for jewelry like wrist watch Cambodia and Vietnam are both members of ASEAN who are benefit from the CEPT Cambodians who are living in Phnom penh have a huge demand of using wrist watch because the middle class and upper class are working there Geographic advantage The object that Curnon targets is young people who love to experience, enthusiasts of elegant fashion watches Recognizing that Cambodian youth can also experience Curnon watches and Cambodia markets, customer segment is almost similar to Vietnam 1.3 Primary entry strategy WHOLLY OWNED SUBSIDIARY - Fully control every activities of the company in Cambodia - Getting maximum the profit - Avoiding conflict of share in the civil of the company - Reacting problems in time - Taking all the risk from the new market 2 Research Methodology 2.1 Qualitative methods Focus Groups Invite 10 people in the segmentation first using our products about hour, collect ideas from them by our question Ask questions about their wants, needs, and value they are willing to pay Preparing For the Focus Group: Carefully develop your focus group questions Focus group should generally last to 1/2 hours, which is usually enough time to cover or questions Call potential participants to invite them to the meeting (e.g., age group, status in a program, etc.) Select participants who are likely to participate in discussions and who don’t all know each other Send a follow-up invitation with a proposed agenda, questions up for discussion, and time/location details Three days before the focus group, call each participant to remind them of the meeting Planning the Session: Schedule a time that is convenient for most people Plan the focus group to take between or 1/2 hours Lunchtime or dinnertime is usually a good time for people, and serve food, they are more likely to attend Find a good setting, such as a conference room, with good airflow and lighting Configure the room so that all members can see each other Provide nametags as well as refreshments If focus group is at lunch or dinnertime, be sure to provide food as well Set some ground rules for the participants that help foster participation and keep the session moving along appropriately Make an agenda for the focus group Consider the following: Welcome, review of agenda, review of the goal of the meeting, review of ground rules, introductions, questions and answers, and wrap up Facilitating the Session: Introduce company and watches lines of Curnon Explain company need and reason for recording the focus group discussion Carry out the agenda Carefully word each question to the group Before a group discussion, allow everyone a few minutes to carefully record his or her responses or answers Then, facilitate discussion around the answers to each question, one at a time After the discussion of each question, reflect back to the group a summary of what you just heard If you have a note-taker/co-facilitator, he or she may this Ensure even participation among the group If a few people are dominating the conversation, then call on others Also, consider a round-table approach in which you go in one direction around the table, giving each person a chance to answer the question Close the session by thanking the participants and telling them that they will receive a copy of the report generated as a result of the discussion Immediately After the Session: Verify that the audio or video recorder worked throughout the entire session Make any additional notes on written notes Write down any observations was made during the session, such as the nature of participation in the group, any surprises of the session, where and when the session was held, etc 2.2 Quantitative methods Test Markets Steps to Implement a Test Market: Set the Marketing Objectives: (Next chapter) Objectives can be based on the following quantitative measures: Market Share, Sales Volume, proportion of the target market who try the product or make repeat purchase, length of the purchase cycle, levels of consumer satisfaction, distribution levels achieved, etc Select the Test Market type: Controlled Test Markets Controlled Test Markets: Provide us with an artificial testing venue that is low price Two companies offer controlled test markets: ACNielsen's Scantrack and Information Resources Inc.'s BehaviorScan Controlled test markets are used most often with new product introductions With a controlled test market, the research supplier offers us a panel of stores in Cambodia Suppliers monitor the checkout scanner data to measure initial and repeat purchases as well as the sales of competitive products Distribution of the marketer's brand is "forced" into these stores This has an advantage and disadvantage The advantage is that distribution is guaranteed The disadvantage is that we cannot gauge retailer's reactions to the new product Other disadvantages of controlled test markets are that competitors can look at the new product before its national launch Another concern is that even though the Scantrack and BehaviorScan propriety models are very sophisticated, it is questionable whether the shoppers at the test stores actually represent "average" targeted consumers for the brand being test marketed Establish a budget: include the cost to produce the product for the test market, all research costs, and all marketing costs, including the production of promotional materials and the cost to distribute promotional messages Develop detail test plans: These plans cover manufacturing, target market definition, product formulation, distribution, pricing, and promotion Select the Test Markets: Marketing Department typically will require two test markets and a control market Test markets should be geographically dispersed are provide a good representation of the national target market The test market should run for to 12 months, or longer for products with a long purchase cycle The test markets should have a wide variety of media outlets Execute the Test Plan Analyze the Results Situational Analysis 3.1 Company Analysis Founded in 2016 CREATIVE PRODUCTS DEVELOPMENT JOINT STOCK COMPANY, the company is the founder of the first brand for a Vietnamese watch brand named "CURNON WATCH", although there are many Opinions are mixed, but generally CURNON is still well received With an initial charter capital of VND billion, the company is a startup project of young investor Quang Thai, who is also the CEO of the company After nearly two years of unsuccessful business, Quang Thai has called for funding from the Shark Tank Vietnam program, to increase the enterprise value to over 20 billion VND, and also increase product awareness for consumers Being skeptical about the product that was worn on him, made in Vietnam, but importing Japanese machines and completely assembled in China, but to confirm the quality, CURNON showed customers the quality of service and care Customer service is extremely good in Vietnam Famous watch companies such as DW, or Curles, are assembled and processed in a third country like China, simply because of cheap labor costs and China had a lot of experience in watchmaking Up to the present time, the product has not been strongly influenced by quality, besides CURNON always listens to customers, adding some textures such as Trong Dong to add aesthetics to the product Curnon currently has large stores in areas: Ha Noi and Ho Chi Minh City HCM, and a major distributor in Can Tho Last year's revenue reached over VND billion, equivalent to more than 2300 units sold, the profit margin was 23% with an average price per product of VND 2,100,000 Sales from nearly 70% are through websites, websites, and the rest are retail and distribution to distributors After the first round of fundraising, Curnon has been building more stores of the company in Hai Phong or Da Nang, in order to serve consumers' desire to buy directly 3.2 Market Analysis 3.2.1 Economic Environment • GDP: 24.523 bill USD • Inflation: 2.5% (2018) • Developing rate:7.5% 2018e • GDP per person: 1508 USD • PPP: 4334 USD Source: World Bank Cambodian wrist-watch import: Imported value Types WRIST-WATCH, CASE, BASE-METAL 4.1 M AUTOMATIC WOUND TRADE WRIST-WATCH, BASE-METAL 5.59 M CASE, BATTERY, WITH HANDS TRADE WRIST-WATCH, PRECIOUS METAL, 7.48 M AUTOMATIC WOUND TRADE DIRECT CHANNEL Customer approach is limited, the first marketing strategy can be direct marketing We will hold a launch event such as a product launch, and invite some influential people in Cambodia to facilitate the attraction we will have to 10 employees to join the consultant as well as help people during the launch, then collect information with the dynamic form of the product as customers have about the product how Besides, via email as well as the phone number that customers leave, the staff will be called to directly market customers INDIRECT CHANNEL Besides opening stores directly, in the process of receiving staff access to intermediaries is also a strong point Through intermediaries, we can increase the prestige, stores like WATCH COLLECTION, ROMANSON, MK WATCH have long been famous brands, each year the product sells up to several hundred thousand products Through intermediary channels, we partly understand more about the culture, thereby exchanging and improving products to suit the Cambodian culture In addition, using smart websites like shoppe or Lazada to sell to maximize revenue, during the 4.0 technology period, Cambodia is also a country where many people use electronic services SELECTION FACTORS Some issues that directly affect such as indirect distribution issues, the biggest problem when bringing CURNON products to Cambodia market are legal issues Cambodian artillery procedures ranked 171 out of 183 market economies (VIETONKIN newspaper), the average number of days to complete the registration procedure is 85 times longer than other countries in the region, long time makes it difficult for businesses to meet the needs of customers and distributors In addition, the remaining factors are quite favorable because very much like Vietnam, the corporate income tax will only pay a maximum of 20%, a fairly low and stable tax 28 rate In addition, the 100% import tax policy helps businesses partly from the cost of Vietnam ENVIROMENTAL FACTORS AND INTERNATIONAL MARKETING CHANNEL DECISION In general, the topography and climate of Cambodia does not create many difficulties for the process of exporting goods to this country, most of the country belongs to the plains with more than 65%, the rivers are not crowded like Southwest Delta Tropical climate with two dry seasons and a clear rainy season, the average temperature in the dry month is about 32 degrees celsius, and the rainy month at 28 degrees celsius The geographical advantage is that the two countries are bordered by a long border, from the south to the Central Highlands we can through the gate as: • Moc Bai border gate (Tay Ninh province): Moc Bai border gate is located in the northwest of Ho Chi Minh City • Sa Mat border gate (Tay Ninh province): • Dinh Ba border gate (Dong Thap province): • Tinh Bien border gate (An Giang province): • Ha Tien border gate (Kien Giang province): • Le Thanh border gate (Gia Lai province): • Vinh Xuong waterway border gate (An Giang province) Products should pass by road at Moc Bai border gate, goods are transported to southern shops through censorship, north-south buses transporting goods into Saigon and distributing to shops in Can Tho simultaneously through Tay Ninh to enter the capital of Cambodia, the restriction of this road is that the road connecting to the capital is quite rugged and shocking, therefore, it is equipped with more shockproof shelves for the product 29 EXISTING CHANNEL At the present scale of the company, the company is stable with a direct distribution channel Stabilizing the direct distribution channel, helping the company to be closer to customers, is also appropriate, because the company does not directly undertake production, only customer care and packaging The price will be reduced In addition, when it comes to open Cambodia market, CURNON will maintain its existing online distribution channel, which is its personal sales website, building a website suitable to Cambodian culture, with a golden background and ants architecture Angko FUTURE CHANNEL In the near future, the company will set up more Facebook and Instagram pages to build a community, and will also become a distributor of some stores as mentioned above, additional distribution Lazada or Shoppe pages (online shopping channels) COST The price to operate a shop includes the following: rent, furniture, sales staff and store managers The average cost to rent a display area of products with an average price from to 6000 usd, an area of less than 70 square meters The staff includes, a cashier (350usd), English-speaking salespeople (250usd) and a consultant, fluent English-speaking manager (550 usd) With sales people and cashiers will be 5% from the sale of the company's products and management will be 7% Interior costs (glass cabinets, display cases, tables and chairs and lamps cost about 4000USD) Business license and business license costs fall into four months and will cost nearly $ 1,000 30 COORDINATION We will coordinate those Vietnamese people in Cambodia to expand the market stimulate Vietnamese people to use Vietnamese products in your country The current situation of the two countries is very good, as evidenced by 248 enterprises of Vietnam 7.3 Price Strategies PRICING METHOD Curnon using Cost-based pricing strategy to distribute products to the Cambodian customers The cost is calculated based on this formula: Products price = Imported + Places + Production + Employees salary + Others Here is the price of Curnon’s watches available in Cambodia: FOR MEN: NAME TYPE PICTURE MEANING OF PRODUCT KASHMIR In Vietnam: 2,199,000 VND In Cambodia: 400,000 KHR 31 WEIMAR In Vietnam: 2,299,000 VND In Cambodia: 420,000 KHR COLOSSEUM In Vietnam: 2,799,000 VND In Cambodia: 500,000 KHR MYKONOS In Vietnam: 2,699,000 VND In Cambodia: 490,000 KHR 32 FOR WOMEN: NAME PICTURE MEANING OF PRODUCT TYPE MELISSANI In Vietnam: 2,199,000 VND In Cambodia: 400,000 KHR MORAINE In Vietnam: 2,299,000 VND In Cambodia: 420,000 KHR HAMILTON In Vietnam: 2,299,000 VND In Cambodia: 420,000 KHR 33 SANTORINI In Vietnam: 2,599,000 VND In Cambodia: 480,000 KHR Price setting for new products PENETRATION PRICING With the target of increasing awareness, Curnon products price of each kind will be set based on the lowest price but still providing profit Curnon products profit are having 20% of profit related to the price therefore Curnon may decrease this profit ratio down to about 5% to 10% to penetrate the market with new products PRICING DISCOUNT Channel discount: Wholesalers and retailers who import Curnon products will get a discount based on the volumn 5% to 20% discount will be applied Curnon considers these percentage as a cost of marketing If wholesalers and retailers import them, Curnon does not have to marketing to sell PRICE CHANGES The price in Cambodia is approximately 5% higher than in Vietnam which is the result of currency different and the watches imported tax This not makes the profit increase because the profit also reduce by the imported tax and also the delivery cost 34 7.4 Promotion Strategies Overall communication message The Curnon brand is named after the Latin phonetic meaning Why not and so the brand we want to send a message to customers who are looking to buy a watch for themselves especially those Cambodian goods • When you want to buy an accessory why not choose a watch • When you have chosen a clock, why not choose Curnon Curnon aims to give its customers a dare to experience dare to change dreams PULL STRATEGY Curnon want to use the pull strategy at the first time to promote the awareness of Curnon to the Cambodian According to the statistics show that up to September 2019 (using all browsers) - 79.86% of Cambodians use social networks to use Facebook for entertainment purposes - 6.62% of Cambodians use social networking to use Twiter for entertainment purposes 35 - 6.32% of Cambodians who use social networks use youtube for entertainment purposes We will orient ourselves to make future plans when curnon begins to enter the Cambodian market Advertising Curnon is a start up, so capital is also something to consider So we will choose to control the amount of money spent on advertising, so that advertising and effectiveness always go hand in hand - Running the article introducing Curnon, the product of the watch on social networking sites like FB, Twiter because these two social networks have a great interaction with our customers who are living in Cambodia - Launching tvc, viral clips on curnon brand, curnon watches on TV (TV3, TV5, TVK) and youtube - Bilboards on main roads in big cities Purpose: To contribute to increase customers' awareness about brands and products Direct Marketing Direct mail to customers to inform the store of the sale discounts Sale Promotion Sale in some special occasions in Cambodian such as: o 1st January: New year o 7th January: victory day of the Khmer Rouge genocide regime o 30th January: Meak Bochea ceremony of Buddhism o 8th March: International Women’s day o 14th, 15th, 16th April: Lunar new year of Combodian o 31st October: Sihanouk birthday o 9th November: Independence day 36 Promotion for customers who are close members of Curnon Purpose: To support population growth according to the set targets Public Relations Organize product launch events at a number of trade centers in Cambodia and organize interactive activities between customers when attending the events At the same time online activities on social networking sites are still taking place The post about the benefits of using curnon watches, the details of the product Purpose: Maintain relationships with customers, stimulate interaction with customers Personal Selling Training good staffs, highly specialized and above all, dedicated to the profession Purpose: Creating more sympathy and trust with customers through online consulting with customers Help customers better understand the product and sell PUSH STRATEGY After the towing strategy, Curnon will focus on distribution agents to best serve and not to miss customers who need it at locations across Cambodia Sale promotion Curnon will use the Trade Allowance method in order to encourage distributors to import Curnon watches for redistribution, especially those in cities that are not Curnon's target, Curnon will reduce prices for them to expedite the purchase In addition, with agents who have good sales or meet the target, Curnon will apply a discount for the next order Direct Marketing Direct mail to dealers, distributors wanting to cooperate from them 37 Purpose: Interact and measure the level of customer interaction with the business Branding Family branding Curnon devide products into separated products width However, they are all controlled by Curnon Because Curnon is a new brand in Cambodia, the force promoting all products separately is insane and impossibe Planning Budget 8.1 Planning Assumption Cambodian wrist-watch imported market is 18.745 million USD which is can be considered as the amount of market of wrist-watch demand Curnon estimates that Curnon can take about 1% value of the market (market share) in the first year, then will increase and take about 10% value of Cambodian wrist-watch market in years The value that Curnon take is calculated as the revenue from selling products to both consumers and wholesalers 8.2 Forecast Sale and Cost Based on the assumption, here is the forecast of sale It is also considered as the target which Curnon must archive: SALE FORECAST Year Year Year Year 1% 3% 6% 8% 10% Share 187,45 562,35 1,124,70 1,499,60 1,874,5 Value USD USD USD USD 00 USD Sales 1875 5624 11247 15000 18745 Market Year Share 38 COST PREDICTION Year Year Year Year Year Head office place cost 6,000 6,000 6,000 Marketin 41,60 g(4) 6,000 6,000 104,00 83,200 104,000 104,000 19,500 39,000 52,000 52,000 18,200 18,200 18,200 18,200 13,000 26,000 26,000 26,000 15,600 19,500 22,100 22,100 5,000 5,000 5,000 5,000 18,000 18,000 18,000 18,000 13,00 Operation Sale (2) Accounte 18,20 Employees nce (2) Customer Service 13,00 (2) 13,00 Chief (1) Furniture cost 5,000 18,00 Hub places cost Phnom Manager 13,00 Penh hub (1) 13,000 13,000 13,000 13,000 Employees Staff (2) 7,800 7,800 7,800 7,800 7,800 Furniture cost 5,000 5,000 5,000 5,000 5,000 39 Hub places cost 9,600 9,600 9,600 9,600 9,600 Manager 13,00 (1) 13,000 13,000 13,000 13,000 Employees Staff (2) 7,800 7,800 7,800 7,800 7,800 Furniture cost 5,000 5,000 5,000 5,000 5,000 300,0 500,00 00 489,0 739,70 00 696,900 612,500 978,0 1,479, 1,393,8 1,325, 1,225,00 00 400 00 000 Takeo hub Marketing Total Break even revenue 350,00 400,000 300,000 662,50 8.3 Forecast Profitability In a Curnon wrist watch, there are production cost (35%), imported cost (5%) and others (40%) which are approximately 80% of total value Therefore the profit of it is calculated about 20% of total value Year Revenue per 187,450 USD year Year Year Year Year 562,350 1,124,700 1,499,600 1,874,500 USD USD USD USD Sales 1875 5624 11247 15000 18745 Profit 37,490 112,470 224,940 299,920 374,900 USD USD USD USD USD 40 Implementation & Control CEO Finance Marketing International Production HR Marketing Accoutance HR 10 Reference 1) https://oec.world/en/profile/country/khm/ 2) https://opentext.wsu.edu/marketing/chapter/11-1-integrated-marketingcommunications-imc/ 3) https://www.gso.gov.vn/default.aspx?tabid=714 4) https://gs.statcounter.com/social-media-stats/all/cambodia 5) https://www.realestate.com.kh/rent/?active_tab=popularLocations&categories=S hophouse&categories=Studio&language=en&order_by=relevance&property_ty pe=residential&q=location%3A%20Takeo&search_type=rent 6) https://www.tourismcambodia.com/news/worldnews/23532/tat-outlinesmarketing-plan.htm 7) https://www.adb.org/countries/cambodia/economy#tabs-0-2 8) https://www.worldometers.info/demographics/cambodia-demographics/#agestructure 9) https://www.phnompenhpost.com/post-focus/thai-consumer-goods-entercambodia-big-way-demand-soars 41 10) https://www.asialifemagazine.com/cambodia/cambodias-fashion-industrymoving-forward/ 11) https://www.scmp.com/lifestyle/fashion-luxury/article/2041507/risingdesigners-look-revive-cambodian-fashions-golden-age 12) https://www.vrsr.asia/posts/different-styles-of-clothing-of-cambodia 13) https://www.construction-property.com/fast-fashion-retailers-in-cambodia/ 14) https://www.odi.org/sites/odi.org.uk/files/odi-assets/publications-opinionfiles/2513.pdf 15) https://www.realestate.com.kh/rent/?active_tab=popularLocations&categories=S hophouse&categories=Studio&language=en&order_by=relevance&property_ty pe=residential&q=location%3A%20Takeo&search_type=rent 16) Facebook Curnon Watch 17) curnonwatch.com 42