Nhu cầu xuất khẩu cà phê công ty cổ phần intimex việt nam

Export demand for coffee: The case of Intimex Vietnam JSC A study of Export Demand for Coffee: The Case of Intimex Vietnam JSC Name : Nguyen GiaPhuc English Name : Clinton Date of Birth : 25/09/1963 Hanoi – 2013 Nguyen Gia Phuc– Clinton Export demand for coffee: The case of Intimex Vietnam JSC ACKNOWLEDGMENTS I would like to thank Dr Eduardo T Bagtang and the International center Education of Thai Nguyen University, Southern Luzon State University for guiding me throughout this research and for providing me with the opportunity to conduct this research and for helping me to carry out the necessary revisions to this dissertation I would also like to express my deep gratefulness to Vietnam Intimex Company for providing me with useful and necessary information for doing this research, to my wife, my son and daughter, my colleagues for encouraging, inspiring me when I conduct this research, giving necessary feedbacks for making this dissertation successful Finally, I would like to thank all my classmates for giving me constant support and encouragement as well as helping me with needed materials and reference Nguyen Gia Phuc– Clinton i Export demand for coffee: The case of Intimex Vietnam JSC APPROVAL SHEET x CHAPTER I: THE PROBLEM AND ITS BACKGROUND 11 1.1 Background of the study 14 1.2 Statement of the problem 18 1.3 Objectives of the study 18 1.4 Hypotheses of the study 20 1.5 Significance of the study 20 1.6 Scope and Limitations of the Study 20 1.7 Location of the study 21 CHAPTER II: REVIEW OF RELATED LITERATURE AND RELATED STUDIES 23 2.1 Coffee Production in Vietnam 23 2.1.1 Coffee Export into USA‘s market 26 2.1.2 Vietnam coffee export: Lesson learnt 29 2.1.3 Vietnam coffee industry at present 31 2.2 Future of Vietnam Coffee Export 36 2.2.1 Quality Improvement for Vietnam coffee 37 2.2.2 Production cost reduction 37 2.2.3 Variety and product shifting, production adjustment to the market demands 38 2.2.4 Coffee consumption promotion in the domestic market as well as to great potential countries 39 2.2.5 Reorganization of production and export structure in a better scientific, modern, effective and steady way 39 2.3 Major Market For Coffee Exports 40 Nguyen Gia Phuc– Clinton ii Export demand for coffee: The case of Intimex Vietnam JSC 2.3.1 Problems Encountered in Doing Business in the US 41 2.3.2 Countries Considered by Vietnam as Competitors 42 2.4 Company Analysis: The Intimex JSC Vietnam 43 2.4.1 Features 43 2.4.2 Organizing structure 45 2.4.3 Management 46 2.4.4 Achievements of Intimex Vietnam 50 2.5 Other Related Studies 51 2.6 Conceptual Framework 61 CHAPTER III: METHODOLOGY 64 Methods and Procedures 64 3.1 Research Design and Methodology 64 3.2 Respondents of the Study 64 3.3 Data Gathering Tools 65 3.4 Treatment of Data 67 CHAPTER IV: RESULT AND DISCUSSION 69 4.1 The Current Status of the Coffee Exporting Companies of Vietnam 69 4.2 Qualitative Data Analysis 89 4.2.1 Existing competitors and market structure of coffee export 89 4.2.2 Product Quality 91 4.2.3 Coffee drinking trends in the American 92 4.3 Test of Significant Relationship 94 4.3.1 Hypothesis testing 100 4.3.2 Individual partial coefficient test 102 4.3.3 Testing overall significance of the multiple regressions 105 Nguyen Gia Phuc– Clinton iii Export demand for coffee: The case of Intimex Vietnam JSC 4.3.4 Testing the drop variable in the regression model 106 4.3.5 Errors in the model 108 CHAPTER V: SUMMARY, CONCLUSIONS AND RECOMMENDATIONS 116 5.1 Summary of Findings 116 5.2 Conclusions 119 5.3 Recommendations 120 BIBLIOGRAPHY APPENDICES Nguyen Gia Phuc– Clinton iv Export demand for coffee: The case of Intimex Vietnam JSC ABSTRACT Following the trend of globalization, especially after Vietnam joins the WTO, in order to enter the international playing field, Vietnam has determined that it needs to boost exports In terms of agricultural products, the export of coffee is one of the first priorities With that business orientation, enterprises specializing in processing and exporting coffee are looking for strategy to penetrate international markets One of the leading enterprises pursuing this direction is the Vietnam Intimex Joint Stock Corporation (Intimex) With its export turnover reaching an annual average of nearly $300 million, Intimex is the leading enterprises in Vietnam of which product lines have been certified by many associations of coffee in the world, namely 4C, UtzKappeh, Organic coffee For several years, the United States (U.S) has become one of the biggest importers of coffee products The Intimex‘s export value of coffee to this market accounts for US Dollar 200 million in 2009 With a view to maintaining its dominant status in this field and increasing its market shares in the U.S, Intimex always place much importance to the marketing activities, having the good marketing mix will bring efficiency to the company‘s export business Given the above-mentioned rationale, I have decided to choose the topic: A study of export demand for coffee: The case of Intimex Vietnam JSC After collecting data from both primary sources by utilizing questionnaires, interviews and secondary sources: articles, published documents, books and online articles, regression analysis models were utilized to find out the factors affecting coffee import demand of the US By statistical approaches, the dissertation points out Nguyen Gia Phuc– Clinton v Export demand for coffee: The case of Intimex Vietnam JSC different qualitative and quantitative factors that have influence on the coffee import demand These factors are:  Quantitative data: commodity price, coffee beverage price index, price of the biggest substitute, and coffee market share In data analysis, E-view program was used to deal with figures from secondary sources By statistical methods, I draw the conclusion about the dependent variables as follow On the hypothesis of significant relationship, it was found out that the key factors affecting coffee import demand are commodity price, price of the biggest substitute (tea) and coffee market share of Vietnam in the US market The commodity beverage price index of the U.S as one of the four has no significant impact on the dependent variable The model of regression analysis has been checked for errors: multi-co linearity, heteroskedasticity and autocorrelation In general, after conducting a set of statistical treatments, the model proves to be quite reliable and can explain the dependent variable based on independent variables After data analysis using regression models, results are drawn and conclusions are made Based on those results and conclusions, I have point out the recommendations to improve current situation of coffee export to the US markets in Chapter These conclusions are based on findings from the data analysis and qualitative data assessment Nguyen Gia Phuc– Clinton vi Export demand for coffee: The case of Intimex Vietnam JSC LIST OF FIGURES Figure 1: Organizational Chart of Intimex Vietnam 17 Figure 3: Coffee productivity, area, and output in province Daklak in period 2006– 2012 (%) 25 Figure 4: Vietnam coffee export market share 2st half of 2013 26 Figure 5: Amount and value of coffee export into USA‘s market for period 2006– 2012 27 Figure 2: Conceptual Paradigm 63 Figure 6: Data collection and process 66 Figure 7: Coffee market shares 80 Figure 8: World's export value of coffee 90 Figure 9: Heteroskedasticity graph 111 Nguyen Gia Phuc– Clinton vii Export demand for coffee: The case of Intimex Vietnam JSC LIST OF TABLES Table 1: Vietnam Coffee export to the world 36 Table 2: List of respondents 70 Table 3: No of Companies with Coffee as Major Export 71 Table 4: Coffee Export destinations 72 Table 5: Type of Coffee being exported to USA 72 Table 6: Possible problems when doing business in the US for Vietnam coffee enterprises 73 Table 7: Opportunities for Vietnam coffee exporters 74 Table 8: Solutions posed by respondents 75 Table 9: US Import Policies That Affected the Coffee Export Business of Intimex Vietnam JSC to US 76 Table 10: Factors that affected the market share of Vietnam Coffee Export 77 Table 11: Vietnam Government Interventions to Help Coffee Industry 78 Table 12: Countries Considered as Competitors in Coffee Export 79 Table 13: Marketing Strategies Adopted and Found to be Effective as Identified by Intimex Vietnam JSC 81 Table 14: Product Policies Adopted and Found to be Effective by Intimex Vietnam JSC as Marketing Strategy 82 Table 15: Distributor chain Policies Adopted and Found to be Effective as Marketing Strategy as Identified by Intimex Vietnam JSC 83 Table 16: Price Policies Adopted and Found to be Effective as Identified by Intimex Vietnam JSC 84 Table 17: Advertisement Policies Adopted and Found to be Effective as 85 Table 18: Challenges experienced by Intimex 86 Nguyen Gia Phuc– Clinton viii Export demand for coffee: The case of Intimex Vietnam JSC Table 19: Measures and Strategies Recommended by Intimex Vietnam JSC to Increase Volume of coffee Export to the US 88 Table 23: Analysis of Covariance 100 Nguyen Gia Phuc– Clinton ix Export demand for coffee: The case of Intimex Vietnam JSC A person or company who purchases goods or services They are not necessarily the “consumer”, i.e the end user Customer Loyalty The extent to which a customer tends to repurchase from a specific firm, organization or a particular brand Customer Orientation A business that is marketing orientated, is by nature, customer orientated [1] Customer Philosophy Considering the needs of the customer in everything a firm does Customer Relationship Management (CRM) The planning, implementation and control of all interactions with customers, clients and sales prospects Customer Service Means by which a firm provides customers with service that equals or exceeds their expectations Data Processing The process of obtaining, recording and maintaining information which is able to be retrieved and used: often involves new technology Database Marketing The use of a database for storing information about customers so that specific groups can be selected and targeted for marketing activity Direct Marketing Direct marketing may refer to direct distribution or direct promotions Direct distribution involves a firm dealing directly with the end user, rather than through a middleman Direct promotion involves a firm communicating directly with a target Nguyen Gia Phuc– Clinton 138 Export demand for coffee: The case of Intimex Vietnam JSC audience or enabling the audience to communicate directly with them and includes: direct mail, the internet, personal selling, telemarketing, direct response advertising and e-mail Distribution The Place element of the marketing mix It involves the process of getting the goods from the supplier to the user and involves channel management and physical distribution management Distribution Channel Channeling goods from their origin to their ultimate destination and involves the use of intermediaries, or middlemen such as wholesalers and retailers Distribution Research Researching to make distribution decisions Cooper identifies key areas [1]: warehouse research, transportation research, retail outlet research Distribution Strategy The extent of market exposure that a firm provides it products with and depends on the type and image of product, its value and size and dispersion of customers The three strategies are: Intensive, Selective, Exclusive Distributor Also known as a wholesaler Tend to buy in bulk, break bulk and sell and distribute to retailers, the trade or end users Except for cash and carry wholesalers they give credit and transport to their customers Many large retailers have undertaken Vertical Integration and developed their own wholesaling system Diversification A marketing strategy that a firm may pursue to develop new products in new markets Nguyen Gia Phuc– Clinton 139 Export demand for coffee: The case of Intimex Vietnam JSC E-commerce Selling goods electronically, usually over the Internet E-marketing Marketing effort using electronic means such as e-mail and the internet; incorporates e-commerce and promotion Ethical Selling and Marketing Sales and Marketing that takes account of the moral aspects of decisions such as telling the truth, selling products that will not harm consumers Ethics are becoming increasingly important in sales and marketing Environment A firm’s environment comprises its macro- and micro- environment (and External Analysis) These are factors beyond the company’s control Exclusive Distribution A distribution strategy involving limited market exposure and so a firm distributes via exclusive territory outlets i.e one outlet in each geographic area External Analysis An evaluation of the external sales and marketing environment, including the macro- (or wider) environment such as political, legal, economic, social and technological factors and the micro (or closer) environment such as markets and competitors These factors are usually outside the control of the firm Geographic Segmentation A method of segmentation where the market is classified by where they live or are located Intensive Distribution Nguyen Gia Phuc– Clinton 140 Export demand for coffee: The case of Intimex Vietnam JSC A distribution strategy involving a firm aiming for maximum market exposure Usually involves retailers and/or vending machines and tends to be for goods such as firms (see relevant section) Intermediary Middlemen within channels of distribution such as distributors, retailers and agents Internal Analysis Where a firm analyses its internal situation suck as people, resources, products and marketing effort, to enable them to overcome weaknesses and take advantage of opportunities in the environment Internal Customers Internal customers are employees All employees should be viewed as customers in several ways: each departments depends on the services of others; a marketing oriented firm needs to put customers first and that has to be “sold” to all staff and, in some firms, products and services, such as printing, are actually sold to other departments Internal Marketing This involves marketing the marketing plan and customer focus to internal staff to gain their support International Sales and Marketing Sales and marketing of goods and services to overseas countries Market-Based Pricing Nguyen Gia Phuc– Clinton 141 Export demand for coffee: The case of Intimex Vietnam JSC This includes strategies where the major consideration is pricing a product based on what the market considers it to be worth and is prepared to pay in order to maximize sales Market Development A marketing strategy of taking an existing product to new markets Market Entry Where a firm launches a new product into a new or existing market Market Penetration A marketing strategy of developing business by selling more of existing products in existing markets This may be undertaken through cross-selling, increasing promotions or distribution, taking competitors‟ customers, expanding the market or increasing product usage Market Research Gathering, analysing data about the market to reduce risk and enable better marketing decisions to be made It includes: estimates of market size and potential, identification of key market characteristics and segments, forecasting market trends and gathering information on existing and potential customers It should not be confused with Marketing Research which involves researching broader subjects Market Segmentation The identification and classification of meaningful buyer groups in order to target selected segments and develop a relevant marketing mix Market segmentation is the first stage of the Target Marketing Nguyen Gia Phuc– Clinton 142 Export demand for coffee: The case of Intimex Vietnam JSC Process Consumer markets may be segmented by: geographic, demographics, geodemographics, psychographics, and buyer behavior Business markets may be segmented by: geographic, demographics, processes, their markets, buyer behavior Market Share A firms sales of a specific product or range of products to a market, stated as a percentage of total sales of all that type of product to that market segment Marketing Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitably (CIM) Marketing Communications Techniques that an organization may use to communicate with specified target audiences It includes advertising, PR, sales promotion and personal selling and is also known as the “Promotion” element of the marketing mix Marketing Information Information that is obtained and stored to enable a firm to make effective marketing decisions: it differs from data as it is processed data and, therefore, more meaningful Marketing Information System Often known as a MKIS and is a planned and controlled system for gathering, sorting, storing Nguyen Gia Phuc– Clinton 143 Export demand for coffee: The case of Intimex Vietnam JSC Marketing Mix The blend of controllable marketing variables that a firm uses in order to deal with the marketing environment It is called a “mix” as all elements must work effectively together to reflect a product of firm’s positioning The mix for products involves four controllable variables, known as 'the Ps': product, place price and promotion; the mix for services, known as „the Ps‟, is the 4Ps plus people, process and 'physical evidence' Marketing Orientation A philosophy of business whereby the firm puts the customer at the centre of their business Characteristics of a marketing oriented firm are: Customer philosophy Strategic orientation Use of market information Integrated organizational effort Operational efficiency Marketing Planning The development of a plan to identify and pursue specific market segments by offering relevant products and services The plan includes an analysis, objectives, strategies, tactics, implementation, controls Marketing Research Gathering, analyzing data about any internal and external factors to reduce risk and enable better marketing decisions to be made It includes: market research, product research, pricing research, distribution research, promotions research, sales research, environmental research Nguyen Gia Phuc– Clinton 144 Export demand for coffee: The case of Intimex Vietnam JSC (the macro and micro environment) It should not be confused with Market Research which involves research the market only and is just one aspect of marketing research Market Skimming A term used by Cooper [1] to refer to what most marketers consider to be a prestige pricing strategy (also known as premium pricing); this is where a high price is charged for an exclusive product, often in a niche market Marketing Strategy The strategic, or long-term, marketing plan Orientation A firm’s culture Packaging Part of both the Product element of the Marketing Mix and Promotions element Provides functional benefits of protection and communications function of brand identity, awareness at the point of sale and a reminder in the home; also, often has a legal function Penetration Pricing A pricing strategy whereby a firm charges a low price in order to increase sales Demand must be elastic i.e responsive to changes in price and the price should not harm the image of the brand PEST Political, Economic, Socio-cultural and Technological - a way of defining the macro environment and an alternative to SLEPT and PESTLE Nguyen Gia Phuc– Clinton 145 Export demand for coffee: The case of Intimex Vietnam JSC PESTLE An alternative way of defining the macro-environment from PEST and SLEPT It stands for: Political, Economic, Socio-cultural, Technological, Legal and Environmental Pricing Research Research in order to determine the optimum price Pricing Strategies Pricing strategies are the broad prices that a firm charges: these are: Skimming (or Skin-The-Cream), Penetration Pricing, Prestige Pricing, Competitive Parity, What The Market Will Bear and Discrimination Pricing (also known as Segmentation Pricing Primary Research Also known as Field Research This is research that is being undertaken for the first time, as opposed to Secondary Research It is undertaken for a specific purpose; the three types of primary research are: surveys, observation and experimentation Problem Identification This is the fifth stage in Cooper’s Sales Cycle [1] It is linked with need identification as the prospect may have a problem to be solved which has led to the need Cooper states that this is the single most important aspect of any selling situation and it is universally recognized that if the sales person does not know the real need, or problem, they cannot offer the true benefits to help resolve the situation Needs and problems are established through effective questioning and active listening, defining buying criteria, prioritizing criteria and summarizing all needs and desires have been confirmed and understood.Cooper states that the process for need/problem identification can be summarized by the mnemonic Nguyen Gia Phuc– Clinton 146 Export demand for coffee: The case of Intimex Vietnam JSC NASA: Need, Acceptance, Solution, Acceptance Processes segmentation A method of business segmentation where the market is classified according to processes it uses, such as the level of technology Product Life Cycle A model indicating the stages a product goes through from pre-launch to withdrawal from the market: most commonly, there are four and five stage models The four stage model: introduction, growth, maturity and decline The five stage model: development, introduction, growth, maturity, and decline Product Orientation Orientation refers to a business’s philosophy Cooper identifies product orientation as a firm that is product based rather than customer based and states that such a firm may be product driven or sales driven Most marketers, however, consider a product oriented to be one where the firm puts product excellence and/or technology first Some firms, such as pharmaceutical companies may have little choice as what they develop depends on technological breakthroughs Production Orientation A philosophy of business whereby the firm’s focus is on product excellence or technology May be necessary in a highly technological environment Product Research Research aspects of product development Cooper identifies key areas [1]: generation of new product ideas, testing ideas, developing prototypes, testing prototypes, test marketing, Adjusting the marketing mix prior to launch Promotions Mix Nguyen Gia Phuc– Clinton 147 Export demand for coffee: The case of Intimex Vietnam JSC All marketing communications tools that are used together, for individual campaigns, to achieve communications objectives in relation to specific target audiences The mix varies according to objectives, target audiences and budget and may include: advertising, personal selling, sales literature, public relations (which can include exhibitions and sponsorship), direct marketing (which includes direct mail, telemarketing, direct response advertising, e-mail, and internet), and sales promotion, and packaging, point of sale and product placement Psychographic Segmentation A method of segmentation whereby the market is divided into groups of people who have the same lifestyle which encompasses values, attitudes and interests Public Relations The planning and implementation of communication activities to establish and maintain the reputation of a firm and its brands, within identified target audiences, often including the general public PR is often undertaken at a corporate level and PR techniques include: media releases, conferences, corporate hospitality, charitable work and the use of badging (for example giving away free t-shirts with company logo) Qualitative Research A form of marketing research whereby opinions and ideas are elicited Rather than using closed question questionnaires, the researcher undertakes interviews, focus groups and similar techniques The findings are more detailed and subjective than those from quantitative research and so, although often of greater value, they are more difficult to evaluate and present Nguyen Gia Phuc– Clinton 148 Export demand for coffee: The case of Intimex Vietnam JSC Quantitative Research A form of marketing research whereby facts are obtained that can be analysed in a statistical format; for example 60% of the population read a newspaper at least once a week Quantitative data is obtained primarily through the use of closed questions in questionnaires such as opinion polls and customer satisfaction surveys Questioning Techniques The use of effective questioning skills to establish a prospects needs Cooper [1] indicates that these should include: listen more than talk, ask open questions, use confirmatory closed questions, ask soft and hard fact questions and use empathy statements Relationship Marketing This is where a firm aims to establish and develop a relationship with the customer with a view to engaging in a long-term association which is less expensive than continuously relying on new customers Cooper states that it involves providing the highest level of service possible and includes regular communication and visits, reacting positively to feedback and comprehensive customer care Retailer An outlet, and part the distribution chain, that sells directly to consumers Return on Investment (ROI) Sales Orientation A philosophy of business whereby the firms focus is on selling, rather than the customer Although selling is a critical activity, even in a market, or customer, oriented firm, a sales oriented firm is not a good philosophy to have It involves a firm trying to push customers to buy what they not necessarily need or want Nguyen Gia Phuc– Clinton 149 Export demand for coffee: The case of Intimex Vietnam JSC Sales Promotion One element of the Promotions Mix and involves a range of temporary inducements that includes: coupons, free gifts, competitions, BOGOF (buy one get one free), temporary interest free credit and so on Trade sales promotions are an important form of push strategy and may include temporary interest free credit, sale or return, free promotional material, extra boxes free Secondary Research Also known as Desk Research This involves collecting data from existing sources and so using that which already exists, as opposed to Primary Research Secondary sources include internal sources and external sources, such as the internet, government statistics, trade directories and so on There are several potential problems associated with secondary research but it is often plentiful and free, or inexpensive Segmentation Also known as Market Segmentation The identification and classification of meaningful buyer groups Segmentation is the first stage of the Target Marketing process Consumer markets may be segmented by: geographic, demographics, geo-demographics, psychographics, and buyer behavior Business markets may be segmented by: geographic, demographics, processes, their markets, buyer behavior SME Small to Medium Enterprise There a various definitions of what an SME is but the most common definition (from the EU) is that it is one that employs less than 250 Nguyen Gia Phuc– Clinton 150 Export demand for coffee: The case of Intimex Vietnam JSC people, has a turnover of less than EUR 40 million (approx £30m) and must not be more than 25% owned by a larger company Societal Marketing Concept A business philosophy which takes into account the interests of society as a whole as well as aiming to satisfy the needs of the customer Socio-Economic Group Also known as Social Class A classification of people who have similar levels of wealth defined through the types of job they There are various ways of defining social class: marketers sometimes used this as a method of demographic segmentation and normally use those identified by the media where the classes are defined as A, B, C1, and C2, D and E An example is those in social class A are defined as “Upper middle class” and comprise senior managers such as MDs, barristers, surgeons and so on This method of segmentation is increasingly having less credibility than others SWOT Analysis A technique of analysis which studies Strengths, Weaknesses, Opportunities and Threats This can be undertaken for a firm, as part of their sales and marketing plans, or an individual as part of their PDP (Personal Development Plan) and can be developed from a detailed audit Viral Marketing Spreading a brand message using word of mouth, or via e-mail, originating from the firm although this is not apparent Examples of techniques include: jokes, film clips, games and website addresses: they are suitably interesting to be forwarded to others Nguyen Gia Phuc– Clinton 151 Export demand for coffee: The case of Intimex Vietnam JSC Wholesaler Also known as a distributor Tend to buy in bulk, break bulk and sell and distribute to retailers, the trade or end users Except for cash and carry wholesalers they give credit and transport to their customers Many large retailers have undertaken Vertical Integration and developed their own wholesaling Nguyen Gia Phuc– Clinton 152 ... Market Intimex Commer ce& Service Intimex QuangNi nh Lac TrungInt imex Market Intimex HaiPhon g Huynh ThucKha ngIntime x Market IntimexT hanhHoa Dinh Cong Intimex Market Intimex Nghe An HoaBinh Intimex. .. Market Intimex Da Nang Hung Yen Intimex Market Intimex Dong Nai Hai Duong Intimex Market SwordLa keIntime x Market QuyNho nIntimex Market Figure 1: Organizational Chart of Intimex Vietnam Nguyen... coffees, and specialty coffee such as kopi luwak (Vietnamese: cà phê chồn, "weasel coffee") Nguyen Gia Phuc– Clinton 15 Export demand for coffee: The case of Intimex Vietnam JSC By 2000, coffee