Professional Documents
Culture Documents
By: Tran Thi Anh Nguyet Tang Buu Nguyet Tran Kim Khanh Tran Le Quang Nguyen Tuyet Trinh Tran Ngoc Quynh Giao
Table of content
In this section
Introduction ....................................................................................................... page 3 Environment Analysis ...................................................................................... page 4 Industrial Review .................................................................................. page 4 Company and Products Review ............................................................ page 5 Competitors Review ............................................................................... page 6 Target Market ................................................................................................... page 7 Marketing & Communication Objectives ...................................................... page 8 Promotion Mix & Budget ................................................................................. page 9 Creative Concepts & Ads Sample .................................................................... page 12
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Introduction
In the 21st century, Marketing has been an ultimately powerful means for companies in doing businesses. Marketing has been used for many purposes, but the main reasons are to boot the sales and to perform better than competitors. Every company has to have a good marketing plan in order to survive. However, the markets have been becoming indifferent products, and firms must find a new way to do marketing. It has not only been about products, price, promotion, and place any longer. It requires a new method to reach the market, and Integrated Marketing Communication was born. Integrated Marketing Communication (IMC) uses promotion mix to contact to target customers and maintain the relationship with customers. Advertising is not the only tool but direct marketing, personal selling, sales promotion, public relation, and so on are used too. These tools do not only help to transfer the message about the product to customer effectively, but they also can help to build the company brand name and image, and compete well with other rivals. Trung Nguyen Coffee was one of the very soon Vietnamese companies using IMC to do its business. It was a phenomenon that has been reminded until today. However, despite those effort at the beginning, Trung Nguyens successful is just a memory now. It needs an effective promotion plan to perform well in both local and international markets. Among started the run for Vietnamese instant coffee, and it was the biggest phenomenon at that time. In this promotion plan proposal, we mainly focus on G7 of Trung Nguyen for domestic market, which has been famous not only in Vietnam but around the world.
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Environment Analysis
Industry Review
Market Size Vietnam is the second coffee producer and exporter in the world, behind Brazil. Its internal markets are over 80 countries and territories around the world. In 2010, Vietnam exported 1.1 million tons of coffee, earning close to $ 1.7 billion US dollars. The biggest market which consumes Vietnamese coffee today is Germany accounting for 13.5%, followed by the United States with a share of 12.7%. In local market, , the current market share of instant coffee accounts for 65% in value compared with 34% of the value of roasted coffee according to the measure in six major cities. Trend In first months of 2011, coffee export of Vietnam reached 520 thousand tons, worth over a billion dollars, up 49.4% in quantity and increased to 122.3% in value over the same period last year. Overall, the exported coffee volume to most major markets during the first quarter 2011 is rising sharply over the same period in 2010. Export prices for March 2011 up to $ 2,273 USD/ ton, rising 8% from the previous month and increased strongly over the same period last year. This is the highest price since 2008 to date. Export price of Vietnam's coffee in the near future will continue at high levels because of the domestic demand as well as the world still remains high. Key factors With the geopolitical location advantages ad relatively pristine natural resources, the coffee production and coffee quality of Vietnam still remains high and stable. Diverse human resources are another advantage. However, Vietnam commonly export raw materials, and the opportunity for processed coffee is not still reached yet.
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Competitors Review
In local market, there are two main competitors for instant coffee that Trung Nguyen has to deal: Nescafe of Nestl and Vinacafe. The market share evenly distributed to three opponents Vinacaphe (38%), Nescafe (32%) and G7 (23%). This market has a dangerous shifting for Vinacafe when growth reached only 27% compared with 51% and 88% of Nescafe and G7 in recent years. Later, Vinamilk also jumped into the market with its own products, and Food Empire Holding (Singapore) with Maccoffee.
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In order to fight back Trung Nguyen testing campaign in 2007, Nestl had a communication campaign to gain its market share as followed: Nescafe has changed the name from Nescafe-Red Cup to Nescafe-Caf Vit with a new slogan: You have enough to try? Nestl also organized many roadshow through Vietnam entitled "You were strong enough to step up the car? For young men 25-35 years old from playing the game challenges, thrills. At the inaugural Buon Ma Thuot coffee festival in Dak Lak, Nestl has the impression of Vietnam maps range from the world's largest coffee beans.
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Target market
In the local market, there are two main markets that we want to focus: Ho Chi Minh City and Hanoi Capital. According to survey data of the General Statistics on 04.01.2010, HO Chi Minh population is 7,382,287 people. Statistics show that in the history of Hanoi's population increased rapidly in the last half century day. According to results of Census April 1, 2009, Hanoi's population is 6,451,909 people. First we must pay attention on the culture. The Vietnamese people often drink coffee in the morning, in social gathering, and when working. We can see that every morning everyone drinks coffee wherever they are (home, pavement, coffee shop). We can call that is the subculture of Vietnamese. Because in a research is that: population in these 2 regions intend to tea and coffee. In fact, in HCM they know about Trung nguyen brands is 58%, Hanoi is 61% and consumer for coffee in Ho Chi Minh is higher than Hanoi is 4,5%. But 2 regions have
consumers higher than the middle regions. Secondly, Hanoi and Ho Chi Minh are the 2 biggest cities in Vietnam. Ho Chi Minh has a lot of buildings and companies with lots of factory workers, office workers and foreign people working here. Base on those advantages about Trung Nguyen coffee in VN, we just focus on 2 regions Hanoi and Ho Chi Minh.
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Communication Objectives
Due to its slogan Khi ngun sng to (Dedicated to creativity), main focused customers of G7 coffee will be students, businesspeople, and artists in both local and international markets. For domestic customers, they have little product recognition, and knowledge about product whether it has other products similar to competitors. Bellow are what we have to do to gain customers acknowledgement and loyalty: 1. 2. 3. 4. 5. Building recognition Serving knowledge Creating positive impression Reaching the advantage position in customers mind Customers attention
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4. Sampling events at Trung Nguyens coffee shop owned or franchise by Trung Nguyens coffee. This kind of sampling should be used to show the distinct relative advantages of the fresh coffee of Trung Nguyen coffee. In addition, premium should be offered in some period when introducing a new coffee product. 5. Trung Nguyen will not use any low price promotion because it will lower the image of the brand and can change the loyal customer opinion toward the brand. 6. Trying Nguyen also conducts promotion by print advertising such as magazine, newspaper. 7. In addition, Trung Nguyen will create a sophisticated website (http://www.trung-nguyenonline.com/ ) to improve communication capabilities, and provide information about Trung Nguyen. The website also allows the customer a place to post and share idea about Trung Nguyen.
Budget
A. Printed and Broadcast Ads We plan to advertise in two main newspapers is Tuoi Tre newspaper and Thanh Nien newspaper. They are popular newspapers throughout country and they have a big numerous reader. The advertisement in these newspapers will include pictures and information about product or promotion. Besides, we also give places where consumer can buy product. Item Tuoi Tre Thanh Nien Total Quantity (day) 15 15 Price per time (VND) 17 million 14 million Total 255 million 210 million 465 million
B. Electronic media: TV advertisement Now, TV became very popular in every family. At night, after a working day, everyone in family is usually sitting to watch TV together. So, TV ads are an important part in marketing strategy. We choose two main channels are HTV7 and VTV3 because those are popular channel in Vietnam. We will broadcast our ads in the period from 19h-19h30. This period has a large number of people watch TV.
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Quantity 15 10
C. Non-traditional Ads: Website and Direct mail 1. Website We also advertise by a big logo on website www.vnexpress.net in one month. We choose this website because VnExpress always have the largest number of visiting in Vietnam. Furthermore, VnExpress is in the top 300 websites is the most accessed in the world. Besides, through direct website of Trung Nguyen (www.trungnguyen.com.vn), customer can know information about overview of Trung Nguyen, details of products, promotions, book online or contact information. Item VnExpress Quantity (week) 4 Price per time (VND) 15 million Total 60 million
2. Facebook: We will display ads on Facebook, the largest social networking site based on active users Item Facebook 3. Direct mail Target audience will be wholesaler or retailers such as market or supermarket. Through direct mail, we will provide information about product, sale promotion, schedule working, contact information Budget for Christmas event in HCM, Vietnam: Sponsorship budget: 100,000,000 VND 50,000,000 VND Cost per click (USD) $0.52/click Expected number 50/day Frequency of ads 180 days Total $4680
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