INTERNATIONAL MARKETING PLAN FOR WHITE CLAW ENTRY INTO CHINA MARKET

THE MINISTRY OF FINANCE UNIVERSITY OF FINANCE – MARKETING FACULTY OF MARKETING - - Class: CLC_19DMA04 Course code: 2031702031204 FINAL REPORT INTERNATIONAL MARKETING PLAN FOR WHITE CLAW ENTRY INTO CHINA MARKET Major: MARKETING Specialized: INTERNATIONAL MARKETING Ho Chi Minh city, 2021 THE MINISTRY OF FINANCE UNIVERSITY OF FINANCE – MARKETING FACULTY OF MARKETING - - Class: CLC_19DMA04 Course code: 2031702031204 FINAL REPORT INTERNATIONAL MARKETING PLAN FOR WHITE CLAW ENTRY INTO CHINA MARKET Students group: Nguyen Thi Lan Nhi - 1921005588 Do Ngoc Thanh Ngan - 1921005543 Nguyen Thuy Nhu Khanh - 1921005461 Ho Chi Minh city, 2021 CONTENTS CONTENTS i List of Figures iv List of Tables iv Executive Summary v Introduction Situation analysis 2.1 Company analysis 2.2 Internal environment 2.3 External environment 2.3.1 Sociocultural distance 2.3.2 Market analysis 2.3.3 Trade barriers 2.4 Customer environment 2.5 Entry mode Analysis of the Internal Environment 3.1 White Claw Business model 3.2 Assessment of a firm’s resources 3.3 Review of a firm’s current international marketing mix 3.3.1 Appealing to its fans’ tastes 3.3.2 Viral Marketing 3.3.3 Standing Apart 3.3.4 Assessment of the image of the White Claw Analysis of the External Environment 4.1 Macro-environment 4.1.1 Political/Legal forces 4.1.2 Economic factors i 4.1.3 Socio-Cultural forces 4.1.4 Technological forces 4.1.5 Environmental forces 4.2 Micro Environment 4.2.1 Industry-level Competitive Advantage 4.2.2 Competitors 10 SWOT Analysis 11 Target Market Description 12 6.1 Segment Strategy 12 6.2 Targeting Strategy 12 6.3 Positioning Strategy 13 International Marketing Goals and Objectives 14 Marketing Program 14 8.1 Product Strategy 14 8.1.1 Product mix management 14 8.1.2 Product Matrix 16 8.1.3 Building powerful international brands 16 8.1.4 Contingency approach 17 8.1.5 Global innovation 18 8.2 Pricing Strategy 18 8.2.1 Pricing Objectives 18 8.2.2 Pricing strategy 18 8.2.3 Pricing discounts 20 8.3 Place: Distribution Strategy 20 8.3.1 Distribution Intensity 20 8.3.2 Selection of distribution channels 20 8.3.3 Managing international distribution channels 21 8.4 Promotion: Integrated Marketing Communications Strategy 22 ii 8.4.1 International IMC objectives 22 8.4.2 Approach 22 8.4.3 Promotional Mix and IMC Tools 23 8.4.4 Advertising 24 8.4.5 Social media 25 8.4.6 Sales Promotion 25 8.4.7 Public Relations 26 EVALUATION, MEASUREMENT, AND CONTROL 28 9.1 Action plan 28 9.2 Control for Implementation of Recommendations 31 10 Conclusion 32 References a Appendix b Appendix 1: Administrative licensing system b Appendix 2: Financial paper c Break-even analysis c Expected profit c Appendix 3: Expense budget d Appendix 4: Member’s group work assessment e iii LIST OF FIGURES Figure 1: GNI per capita - China Figure 2: Conceptual map for hard seltzer markets 13 Figure 3: Product line and mix of White Claw 15 Figure 4: Packaging of White Claw in China 15 Figure 5: Change in advertising expenditure in China from 2012 to 2019 with forecasts until 2021 23 Figure Budget for promotion activities of the first year d LIST OF TABLES Table 1: Porter’s five forces model Table 2: White Claw's direct competitors 10 Table 3: SWOT analysis 11 Table 4: Ansoff’s product market expansion matrix 16 Table 5: Analyze competitor price 19 Table 6: Timeline summarizing marketing activities 2022 30 iv EXECUTIVE SUMMARY The purpose of this report is to provide an international marketing plan for White Claw to enter the Chinese market White Claw Hard Seltzer is an alcoholic seltzer water beverage with, gluten-free alcohol base, and a hint of fruit flavor The company has launched quite successfully in the US and European countries, so after nearly years of launch, we decided to penetrate the Asian market, first in China We first conducted a SWOT analysis that showed that the advantage is the products that we provide are expected to be very suitable to the tastes of the target customers Regarding entry mode, White Claw entered China's hard recruiting machine market through a joint venture - China Resources Beer (JV) In terms of target customers, young people aged 18-24, who pursue new things and are willing to explore different experiences Therefore, according to the positioning map, White Claw will position itself at a lower price than other brands to gain a competitive advantage as well as be suitable for the company's target segment We performed an analysis of product strategy, pricing strategy, distribution strategy, and promotion strategy to complete this marketing plan First, combining standardization and adaptation is a suitable market penetration method for White Claw We will change the partial packaging to comply with Chinese laws and add flavor to a product line Next, we decided on the Penetration Pricing strategy The goal of applying penetration pricing is to attract and increase market share Thirdly, White Claw uses intensive distribution in China markets Using a vertical marketing system and international strategic alliances, they will work with China Resources Beer (Holdings) Company Limited to form an alliance to compete in the hard seltzer market in China Finally, our promotion strategy will harness the best Integrated Marketing Communications model to find out which communications activities work best for each promotion objective We will make communication activities dependent on social networks more than traditional advertising Marketing goal: 30% of brand awareness will be achieved Gross the financial goals are to achieve the company's first-year revenue of 3,900,000 CNY To achieve the desired, we implement rigorous performance controls including Salesforce, Delivery efficiency, Advertising efficiency, and Effective sales promotion v INTRODUCTION The craze seemed to have ramped up in early 2018 with White Claw trending on the scene first The trend was quickly followed by big brands such as Anheuser Busch with Bud Light Seltzer, Truly from Boston Beer, Corona Hard Seltzer, and many more With hard seltzers continuing to gain solid market share, crossing over $100m in sales for the 10th week in a row (Greg, 2020) More and more breweries are starting to shift their strategy to making hard seltzers to help meet the growing demographic of drinkers that are looking for something different We've heard first hand from brewers who've lamented at first when thinking about testing the waters with hard seltzers, but sales have shown that it's a win/win for consumers and local breweries in trying to regain consumer interest in a COVID world SITUATION ANALYSIS 2.1 Company analysis Mark Anthony Brands International is a member of the Mark Anthony Group of Companies, one of North America’s largest privately-owned alcohol beverage businesses Led by Davin Nugent, Mark Anthony Brands International was established in Dublin in 2014 Mark Anthony Brands International; an alcohol beverage business of distinction, creating and developing a diverse portfolio of category defining brands across ready-to-drink and premium craft spirits A member of the Mark Anthony group of companies, Mark Anthony Brands International is located in Dublin, Ireland 2.2 Internal environment Mark Anthony Group in the US, run by Vancouverite Anthony von Mandl and also known for producing Mike's Hard Lemonade Mark Anthony Brands Inc is located in Chicago, IL, the United States and is part of the Advertising, Public Relations, and Related Services Industry Mark Anthony Brands Inc has 210 total employees across all of its locations and generates $101.03 million in sales (USD) Regarding popularity, White Claw is well known in the hard seltzer market White Claw in America is always at the top of the most famous Hard Seltzer brands This will probably make a big splash before entering the market if there are effective marketing strategies White claw has been very successful in the US market and has experience penetrating other markets as well, so may have accumulated experience when attacking other markets The proof is that the brand is now available in Austria, Belgium, Finland, Germany, Switzerland, and Sweden 2.3 External environment 2.3.1 Sociocultural distance Chinese society is all about the group, while Americans celebrate the individual In Chinese drinking culture, the taste of the liquor or wine isn’t so important as the people involved When it comes to some social events, the Chinese care more about who they drink with, no matter for business meetings, family, or celebrations This phenomenon also indicates the collectivistic culture in China For western people, the taste of the actual drink means a lot to them, as they are more concerned about an individual’s feelings Moreover, for some westerners, wine-tasting is an enjoyable moment, which plays an important role in their life Chinese people are inclined to foster deeper friendships than Americans They may see Americans as initially gregarious but difficult to get to know in a deeper context A friend in China is someone to whom you feel deeply obligated and for whom you will favors when necessary This translates into business, where the Chinese will try to forge relationships and connections, known as guanxi Trust is essential before doing business Colleagues tend to socialize together as part of relationship building and business entertainment is lavish Americans, on the other hand, tend to keep work and personal life separate 2.3.2 Market analysis Market size According to the "Market Prospects and Status Quo Analysis of Low-alcohol Drink Industry 2020" issued by Academia Sinica, the market size of China's domestic fruit wine industry in 2019 was approximately 231.5 billion yuan (US$36.28 billion) Although still a small share compared to the rest of the beverage industry, it has grown by more than 50% year-over-year Market growth The market for low alcohol beverages like Hard Soda or Hard seltzer is one of the niches compared to wine and beer But its development potential in the future will hopefully meet the needs of consumers According to the analysis of the market outlook and current situation of the low-end wine industry 2020 published by the China Research Institute, the market size of the domestic fruit wine industry in 2019 is about 231.5 billion yuan In the past two years, China's low alcohol market has grown by more than 50%, low alcohol has grown by more than 80% The market potential for Hard Seltzer products According Grand View Research China is one of the regional prospects in Hard Seltzer Market Size, Share & Trends Hard seltzer, as one of the sub-categories of low-alcohol beverages, is still in its early stages in China, with significant commercial potential As a low-sugar, fat-free, and lowalcohol alcoholic beverage, its low-sugar, fat-free, and low-alcohol ingredients cater to the younger generation's desire for a "lighter" lifestyle and are attracting an increasing number of individuals with increased consumption 2.3.3 Trade barriers Despite growing commercial ties, the bilateral economic relationship has become increasingly complex and often fraught with tension From the U.S perspective, many trade tensions stem from China's incomplete transition to a free-market economy While China has significantly liberalized its economic and trade regimes over the past three decades, it continues to maintain (or has recently imposed) several state-directed policies that appear to distort trade and investment flows The Trump Administration has pledged to take a more aggressive stance to reduce U.S bilateral trade deficits, enforce U.S trade laws and agreements, and promote "free and fair trade," including concerning China These tit-for-tat actions threaten to sharply reduce U.S-China commercial ties, disrupt global supply chains, raise import prices for U.S consumers and importers of Chinese inputs, and diminish economic growth in the United States and abroad our marketing does not target or appeal to people under the LPA (ii) Tend to responsible consumption Messages “White Claw is for everyone, not just anyone.” We will ignite a wellness culture that promotes holistic health and lifestyles among young consumers of all genders They have a good time and experience with family and friends Promotion strategy Our strategy promotion will exploit the most optimized Integrated Marketing Communication model to find out which communication activities work best for each promotion objective An IMC program can accomplish more than one objective at a time, so long as this does not create confusion for target audiences We will make communication activities dependent more on social media than traditional advertising Because launching a heavy paid media game presents White Claw threats on multiple fronts Specifically, the "White Claw is for everyone, not just anyone" strategy aims to maintain outstanding qualities and will work best through word of mouth on social networks (Buzz marketing) Any content developed for White Claw will disrupt traditional beer advertising and resonate with consumers both online and offline 8.4.3 Promotional Mix and IMC Tools While traditional printing and broadcasting advertising channels have been generally shrinking, outdoor and online ads have been experiencing exponential growth This can be explained by better access to mobile and growing internet penetration in the country Figure 5: Change in advertising expenditure in China from 2012 to 2019 with forecasts until 2021 23 8.4.4 Advertising Concerning media, including programming, print media, we will not advertise when there is more than 20% of the audience under the LPA We will ensure that we not place billboards, mail signs, kiosks, etc on any outdoor permanent location less than 200 meters from a primary or secondary school Advertising agency We selected an external advertising agency Since the in-house agency has no experience in Asian markets, especially a market with diverse and rich cultures like China, choosing an agency in China will minimize the risks of communication Completing the entire advertising program or retaining boutique agencies for certain activities, including: - Conducting market research: The effectiveness of social media channels, but Weibo, WeChat are the preferences of target customers on e-commerce platforms such as TMall or Baidu such as website visits, searches, purchase related products, etc - Writing copy: Write content on the official website such as introducing information about the company and products In addition, promotional posts are running on social media, and minigame contests - Printing the commercial or advertisement: Design billboards, kiosks, mall signs, or posters on the street to increase awareness Oversee the advertising program We decided to choose Topkee Media to cooperate exclusively in White Claw's advertising activities Because Topkee has the advantage of using digital technology and good monitoring of social media and other comprehensive network marketing services That is very consistent with White Claw's advertising orientation in the Chinese market, helping us to enter the market most effectively We will put together a brief (Topkee guide to the advertising process), the brief includes objective, budget, key message, the target audience to reach, legislation, media need to run ads, etc The brief board plays a role in the connection between White Claw and the advertising agency Topkee Media, helping to make the progress following the process of White Claw 24 Assess advertising effectiveness International advertisements are presented in a pulsating format To monitor most closely, we will run ads throughout the year but strongly on major holidays will be decisive The pulsating format will be evaluated in two areas: attitudinal effects and behavioral effects Developing the desired perception of position, brand loyalty, and brand equity normally takes more time, especially when a company enters China 8.4.5 Social media We focus on Buzz marketing strategy on social media by creating viral hashtags, add testimonials from prior attendees, social media buttons to make registration easy to share via social media Positive word of mouth has been the strongest marketing advantage for White Claw In 2019, the social media ad revenue in China reached 65 billion yuan, up from 51 billion yuan in the previous year WeChat, Qzone, and Sina Weibo are currently the largest social media platforms in China There are also social networks RED, Douyin (the Chinese Tik Tok), QQ (by Tencent) Messages about breaking gender stereotypes when enjoying alcoholic beverages, for example, in the summer of 2019 when Trevor Wallace released a video popularizing the phrase “ain’t no laws when you are drinking Claws.” After that, the brand became the unofficial party drink of Americans and created a huge buzz around the brand trending online Create a Quality Chinese Website for the China Market We will change the design of our official website to match the Chinese culture as much as possible, which will make the user experience on your website better Most importantly, designs require 18 years of age before they can access White Claw's website in China We will use a range of technologies available to prevent access by people younger than the LPA, including Age determination: an age confirmation mechanism to check if a user is above the LPA is not If a person is under the LPA, they are locked out or directed to a website in that country that focuses on responsible consumption 8.4.6 Sales Promotion With the Push strategy, the company will promote a product to intermediaries, giving them many incentives to store goods and efforts to promote and sell products to consumers 25 Legal issues in consumer promotions The State Administration for Market Regulation (SAMR) recently released a set of interim rules to regulate sales promotion activities (SAMR Order No 32 [2020]) The rules specify that engaging in premium offers, price promotions, and other sales tactics must be truthful and accurate and must not deceive or mislead consumers or members of the public In addition, there are no other rules regarding promotional activities Bonus Pack: Programs such as "buy one pack get one free" are placed on the shelves of the distribution stores and also the main stores Contest and Sweepstake: Offer minigames, especially social media posts to attract more audiences, especially GenZ Price-off Promotion: Offer big discounts during particular periods in a bid to make volume sales at small profits Popular periods are New Year’s Eve, the end of the season, or special festivals or would offer discounts when launching new products Coupon: For consumers to collect coupons on e-commerce platforms 8.4.7 Public Relations The objective of having a PR presence: (i) Improve reputation both broadly and within specialized communities (ii) Improve your image by disseminating positive messages (iii) Control and manage reputation Chinese Key Opinion Leaders and Social media We will choose KOLs over Influencers because KOLs in China usually maintain their main occupations, such as journalists, entrepreneurs, etc As a result, KOLs creators exhibit a higher level of authenticity than influencers The KOLs that we choose will be Nutritionists or bodybuilders who are knowledgeable about healthy lifestyles and nutritional values to protect health and of course include both men and women so that they can convey the main message of this campaign In addition, we will not sponsor KOLs whose audience is mainly LPA people Selected KOLs will be made aware of our Responsible Alcohol Marketing Policy and we will require any sponsored social media posts or content to comply with this policy 26 The participation of Key Opinion Leaders (KOLs) as a third party validates the message of our PR campaign That way, they will share their experience of using White Claw's products on social networking sites, especially WeChat and Weibo We chat WeChat is a famous Chinese application Since the app allows for more personal material than other platforms, key opinion leaders can provide regular updates to their fans in a variety of ways, including a variety of media different media like gifs, pictures and videos they actively edit about White Claw and their fun experiences WeChat launches 'WeChat Index', supports KOLs and social search engine optimization (SEO) companies, and manages keyword trends for best-performing content creators to achieve broad reach and interaction from platform users Weibo Weibo offers direct e-commerce for purchases as part of our website The content on the app is also a bit more engaging as creators and KOLs have more options to share videos, images, gifs, and create text posts that can include a variety of media to share Claws The platform's design is more open than that of WeChat, and advertising tends to be cheaper than on other platforms Authenticity in KOCs The Key Opinion Customers use their Voice in an often more personal manner, such as genuinely recommending brands and/or products to aid those they have connections with personally The KOC are consumers who personally promote products and have a lot more control when it comes to content creation, as brands are required to maintain co-creational marketing with these individuals Baidu Tieba is a platform that we target, it connects people with individual Tiebas according to their interests It uses search keywords to precise segment user interests Another good thing about Baidu Tieba is that it is more content-oriented than user-oriented KOCs don't have to be KOLs to be influential on Baidu Tieba, their posts must be interesting enough to trigger discussion about the company's product Positive publicity and image-enhancing events Branded sponsorship of sporting and entertainment events will only happen when most audiences are reasonably expected to be more than LPA Sponsoring water cans for major annual Chinese music festivals such as the well-known Midi Festival, and Sunflower Music Festival 27 EVALUATION, MEASUREMENT, AND CONTROL 9.1 Action plan January White Claw intends to start running ads in early January and officially launch in mid-January (scheduled for January 15, 2022) Run high-intensity ads on WeChat and Weibo from January to January 15 while using media sites such as Chinadaily, nbd.com.cn, sohu.com, … to support brand coverage of White Claw on the above forums, creating an explosive trend in the imported beverage market This serves to provide hard seltzer type information, comparing the difference between hard seltzer and other alcoholic beverages to consumers in China On January 15, 2022, opened the first official store, in Shanghai and retail with promotions such as price-off promotion “10% off when buying carton of 24 cans” or bonus pack “six-packs free can" Continue to run ads for the above programs but only focus on Wechat, Sina, Weibo in order to properly reach White Claw's target customers February We run promotions at e-commerce platforms: Tmall, Pindoudou, Alibaba, Taobao for ecommerce with similar prices but free home delivery if customers buy products in the Package line variety of White Claw during early February (the New Year period) This is for platforms to push White Claw hard seltzer to the top of websites In addition, combine with promotions to attract customers: Hourly promotion for retail goods (flash sale), 5% off, and free shipping for each of your carts March Use well-known fitness and nutrition KOLs on Weibo and WeChat platforms to promote the brand, features, mission, and vision Weibo includes 全球健身中心 (roughly translated: Global Fitness Center), 体态大师 (roughly translated: Body Master), 营养师顾中一 (roughly translated: Nutritionist Gu Zhongyi) WeChat includes 练瑜伽 (roughly translated: Practicing yoga), 全球健身 指南 (roughly translated: Global Fitness Guide), 爱健身 (roughly translated: Love Fitness) Continue to run ads on e-commerce platforms April 28 Open sweepstakes on White Claw's official Weibo account to give away box of White Claw Variety Flavor Collection - 24 packs to the luckiest person Rules: players hashtag on their personal account #hardseltzer #whiteclaw #White Claw 适合所有人, take a screenshot and comment on the lucky number on White Claw's post May Sponsoring the Strawberry Music Festival takes place every May in China to attract thousands of young people Place billboards at bus stops and subway stations (in about months) Continue to run ads on e-commerce platforms June Using the KOC effect to increase the authenticity of the product's effectiveness because most of the utilities are purchased and self-determined by customers, creating a lot of trust for followers when they share about a product Make waves on Baidu Tieba by encouraging them to comment and rate White Claw products with attractive coupons July & August We apply the plan to set quotas for intermediary stores, exclusive White Claw suppliers: (1 month how much) To promote sales efforts, speed up the turnover of goods The intermediaries who reach the fastest target will receive a higher discount, the more advantage of importing, the more White Claw will support the lower price than the rest September & October White Claw participates in several tradeshows held in Shanghai and Beijing areas Trade shows that White Claw will participate in: - In Shanghai, including programs: ILTM CHINA, FBIE - Food and Beverage, China Licensing Expo - In Beijing, including program: AIFE - Asia International import food exposition, FMA - China December On the occasion of Christmas, open the "lucky wheel" program (sweepstakes) at the official store Prizes such as a big amount, products of White Claw, coupon, voucher The customer will be dialed if purchase receipt on xxx Besides, place White claw posters in pubs and beer shops that are the intermediary of the company 29 Table 6: Timeline summarizing marketing activities 2022 Time activities Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Run ads on social media Run ads on e-commerce Price-off promotion Promotion bonus pack Flash sale on an ecommerce KOLs KOCs Sweepstakes Sponsor for festival Target sales at each retail store Trade show 30 9.2 Control for Implementation of Recommendations To find out if the marketing strategies we offer are working, we will implement strict performance controls Every month we will conduct a profit analysis If the analysis shows that the company is earning low profit concerning certain products, territories, or markets, then the question is: Are there more efficient ways to manage a sales force, advertising, sales promotion, and distribution involving performing entities? First, salesforce includes the number of new customers per period, number of lost customers per period, sales force costs as a percentage of total sales Second, delivery efficiency includes controlling the extent and speed of product coverage and shortages In addition, there are distribution costs (shipping, trade discounts, promotion activities at the point of sale, etc.) on the revenue received from each distribution channel Third, Advertising efficiency includes advertising cost per medium and per media, percentage of audience most noticed, viewed/linked, and read for each media Consumer opinions on advertising content and effectiveness before/after measuring attitudinal and behavioral towards the product Final, effective sales promotion It is necessary to track each sales promotion campaign and its impact on sales: the percentage of sales sold on the offer To control the above, we need to some market research and get some feedback from consumers and conduct customer surveys every month We will set up an internal system to monitor sales fluctuations and most importantly to find the correlation between price, distribution, promotion, and sales Our company will collect relevant data and such data will be reported weekly and sent to corporate headquarters Specifically, the results before and after several strategies are implemented will be compared In that case, we can find out which distribution channel is more efficient, what profit margins and market share we have, and how much money should be invested to get the best results 31 10 CONCLUSION White Claw's marketing strategy is to penetrate and expand market share in China's Hard Seltzer market We opted to target people of both genders, with a focus on young people aged 18 to 24 (The Z-generation young people group) We employ numerous IMC tools in the Promotional Mix section to fulfill our marketing objectives White Claw, for example, selects a separate advertising partner - Topkee Media, the advertising agency will adhere to a brief, which covers the goals that White Claw wishes to achieve with its consumers During marketing, we will focus on social networking and e-commerce platforms that build-up offers and services, particularly during China's big holidays In addition, we are concentrating on opening the first store in Shanghai Specific strategies are constantly watched, and if a quality issue arises, we will be able to respond swiftly in addressing and resolving any issues White Claw's marketing plan will aim to accomplish more than the profit margin in Shanghai and continue to expand to the whole of China through monitoring 32 REFERENCES Caroline, G (2021, August 13) Most polluted countries in the world: 2021 ranking Selectra https://climate.selectra.com/en/carbon-footprint/most-polluting-countries/ ChinTell Limited (2021, June 11) A new fizz Week In China https://www.weekinchina.com FocusEconomics (n.d.) 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China Population (2021) - Worldometer Retrieved August 22, 2021, from https://www.worldometers.info/world-population/china-population/ Zhang, Z (2020, July 3) China COVID-19 Policy Tracker: What Businesses Should Pay Attention To China Briefing News https://www.china-briefing.com/news/china-covid-19-policytracker-benefiting-business-enterprises-comprehensive-updated-list/ a APPENDIX Appendix 1: Administrative licensing system For the import of alcohol into China, exporters must work in collaboration with a local import entity that has a valid import business license and personal and company customs and CIQ certificates Once conditions are agreed upon, a contract can be signed with the Chinese import agent and registered with the General Administration of Quality Supervision (AQSIQ) Then, the beverage for import must be labeled according to China's food labeling standards, in this case, those for pre-packaged foodstuffs and pre-packaged alcoholic beverages Both the original and translated labels in Chinese are required, and a digital version of the Chinese label is registered with the China Inspection and Quarantine (CIQ) on the first instance of import After approval, the labels can be printed At customs, a country of origin certificate, health certificate, product ingredients list, product sales approval registration document, packing list, invoice, contract, and bills of lading will be required Accuracy of information provided is important as any delay at customs may affect perishable goods Once customs receives the documents, customs will release the goods to the agent Imported goods must comply with relevant standards, and once passed, the CIQ will pass a commodity inspection document to customs, which is passed to the agent Once received, the labels can be applied to the products by the importer Customs will then levy customs duties and other taxes and will release a customs clearance document At this point, the importer can collect the goods and proceed to deliver them to the distributor b Appendix 2: Financial paper Break-even analysis The break-even analysis indicates that 9,360,000 yuan will be required in sales revenue to reach the break-even point: Break-Even Analysis Year units break-even 120,000 Year sales break-even 9,360,000 Assumptions Average per-unit revenue 78,000 Average per-unit variable cost 45,000 Estimated Year Fixed cost 4,000,000 Fixed Costs = plan rent, cost of machinery, interest on debt Variable Cost = plastic and ingredients to make hard seltzers, the shipping cost per unit, increased advertising costs per unit (ads in China) Expected profit First-year Price 78,000 CNY Fixed Cost 1,650,000 CNY Per-unit variable cost 45,000 CNY Units sold 209,677 Expected Revenue 3,900,000 Cost Forecast 3,670,000 Expected Profit 154,845,000 Gross Profit Margin 2% c Appendix 3: Expense budget Figure Budget for promotion activities of the first year Unit: 1,000,000 Q1 Run ads on social media 125 Run ads on e-commerce 20 Price-off promotion Promotion bonus pack Q2 Total 700 20 20 Q3 Total 470 20 20 20 Total 10 11 12 230 20 20 20 20 20 20 30 30 65 30 KOLs 250 10 KOCs Sweepstakes Sponsor for festival 30 30 30 30 30 30 Trade show d Total 200 450 Flash sale on an ecommerce Target sales at each retail store Q4 Appendix 4: Member’s group work assessment SOCIALIST REPUBLIC OF VIETNAM Independence-Freedom-Happiness MEETING MINUTES OF ASSESSING THE COMPLETION OF WORK STT Name Student code The degree of completion of work (%) 01 Nguyen Thi Lan Nhi 1921005588 100% 02 Do Ngoc Thanh Ngan 1921005543 100% 03 Nguyen Thuy Nhu Khanh 1921005461 100% e