Table of Contents

INTRODUCTION

I. Background of Winmart
1. Vision and Mission of Winmart

Winmart's vision is to successfully establish a leading retail chain in Vietnam. Additionally,

Winmart assists in enhancing the quality of Vietnamese products while elevating the status of
Vietnamese people in modern society and in the global market (Winmart , 2022)

With the mission of sustainable development and creating for customers a mentality of
"Shopping with peace of mind every day", WinMart always strives to fully satisfy the
shopping requirements of consumers, becoming a reliable shopping destination and bringing
superior utility services for customers when using the product (Winmart , 2022).

2. About Winmart:

On October 3, 2014, Vingroup - Vietnam's largest conglomerate, acquired 70% of the

shares of Ocean Retail company under Ocean group. After that, the Ocean Mart system was
renamed Vinmart. On November 20, 2014, Vinmart, a convenience-store system, officially
entered Vietnam's retail market. Winmart offers consumers a variety of choices in terms of
quality of goods and services, fully meeting the needs of shopping experiences from popular
to high-end of all customers. Winmart serves a wide range of products including meat,
vegetable and fruit, dry food, drink, mild, confectionery, cosmetic and chemicals and
detergents. VinMart is constantly developing, and by the year 2020, Vinmart formally
managed by Masan Group and was changed the name to Winmart (Nguyen, et al., 2020).
According to Statista (2021), Winmart became the fastest-growing retail chain, launching
with more than 3000 stores throughout Vietnam.

Winmart has set a long term goal for its company is to expand approximately 10,000
Winmart convenience stores in 2025. Moreover, Winmart aims to become the first choice of
customer and enhance profitability and brand image (Vietnamnews, 2020).

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II. A Comprehensive Study of Vietnam Wine Market (FILE PDF HƯỚNG DẪN)
1. 5 C's Analysis
Customer Analysis
In recent times, the living standard and the quality of life is improving, and the needs of
the Vietnamese people are constantly increasing. Therefore, to be able to form customer
portraits for new luxury wine products and understand their interests and needs, a
questionnaire survey is created and sent to nearly 100 individuals in order to collect data.
Then, the survey results will help Winmart collect information about customers and
produce the best products in the target market.

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Briefly introduce the demographic aspect of the survey's participants. In 76 samples, the
percentage of women hold the largest share with 62.5%. The majority of respondents were
26-41-year-old, made up 62.5%, and most of the respondents were upper-class with a high
income of more than VND 10 million, accounting for approximately 50%.

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From survey results, 82.3% of customers tend to buy wine at liquor stores, while 67.7%
choose to purchase at supermarkets. Understandably, the reason why customers choose these
places to buy wine is they can be assured of the quality and origin of the product. Therefore,
customers feel more secure when consuming products from supermarkets and liquor stores.

Customers who regularly buy wine for daily drinking accounted for 80.3%, while 85.5% of
customers purchase it as gifts. In fact, there are many studies demonstrate that drinking a
glass of wine before going to bed will bring a wide range of health benefits, especially for
women in the 20-40 age group. Moreover, wine is considered a valuable and luxurious gift to
give to family, boss, and colleagues in special events such as birthdays, Tet holidays, and
Year-end parties.

Furthermore, the popular range of money each participant is willing to spend on a bottle of
wine is from 3 to 6 million, made up 35.5%, followed by the price of 6 to 10 million chosen
by a lower percentage, at 30.6%. Hence, Winmart should set a reasonable price for the target

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customer when launching a new product.

Regarding the customer attitudes and intentions when buying a bottle of wine from a new
brand, it can be seen from the survey that up to 96.8% of respondents said that they have an
inclination to try a new luxury wine. In addition, some key factors impacting the customer's
intention when using new products are more healthy products such as anti-aging, prolonging
life, preventing cancer and helping with good digestion, imported materials of superior quality,
new wine recipes, and new fermentation methods.

38.8% of respondents chose the product's origin as most important when buying wine,
followed by the quality and packaging of the wine, which accounted for 39.4% and 35.5%,

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respectively. In the context that the Vietnamese market is witnessing an increasing number of
retail stores importing fake wine products, customers always focus on the origin and quality
of products. Therefore, when producing wine, Winmart needs to pay attention to the raw
materials and production process; then, it should emphasize the origin and quality of wine
when advertising the product to attract more potential customers.

My survey participants thought Wines from Italy and France were the most popular,
accounting for 48.4% and 30.6%, respectively. When Winmart starts producing a new luxury
wine, the choice of where they should import material is crucial. Moreover, according to the
customers' preferences when using wine, quality is the top concern when customers choose
wine. Therefore, this high-class wine product can be considered to import ingredients from
the two countries above to source the best quality ingredients for customers. According to
statistics in 2018, over 11% of European vineyards were certified organic, and Italy and
France are in the world's top three organic wine-producing countries (cite). Therefore, France
and Italy are ideal countries for Winart to import raw materials for a new product launch to
bring the core value that our wine brand wishes to bring to customers is a sweet attractive taste
combined from new formulas and new fermentation methods and ensures consumers' health because
the product has a relatively light alcohol content.

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Customers tend to search for information about wine products through social networking
platforms such as Facebook, Website, Instagram,..., accounting for 75%. Thus, to let luxury
wine information reach all consumers directly, Winmart can promote its brand image on these
platforms to reach potential customers.

Context Analysis
Demographic
On 2 July 2022, according to the latest figures from the United Nations, the current
population in Vietnam is 99.084.465, higher than in 2021. Furthermore, Vietnam's population
accounts for 1.27% of the world's population. The median age in Vietnam is about 30.5;
precisely, 29.4 for males and 31.7 for females, and there are 71,432,854 people over age 18 in
Vietnam. With a high population growth rate in Vietnam, it will create a large market for
high-class wine products because the age group over 18 accounts for more than two-thirds of
the country's population, and the population structure from about 25-60 is very high.
Moreover, the population is densely concentrated in the northern and southern regions of
Vietnam, mainly in big cities such as Ha Noi, Ho Chi Minh,... (World Population Review,
2022). Therefore, it will provide a fertile market for Winmart to operate, and it is confident to
have a certain number of potential customers!!

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 Economic
According to Trading Economics (2022), Vietnam's gross domestic product increased by
7.72% in Q2, much higher than the growth in Q1, with 5.05%. Within half a year, the index
enhanced 6.42%, slightly higher than in the same period of 2021, with about 5.74%. And for
the remaining six months, the economy in Vietnam is expected to increase between
approximately 6% and 6.5% (Trading Economics, 2022). It can be seen that although
Vietnam is a small-scale market, the growth rate is speedy. When the economy grows, the
increase in per capita income will lead to an explosion in people's spending. With such a large
number of customers, the pressure to compete with businesses also reduces the population, so
Winmart has the opportunity to develop a high-class wine product line and earn high profits.
According to the research "The new faces of the Vietnamese consumer," Viet Nam's middle
class is predicted to keep expanding over the following ten years while dispersing
geographically and diversifying (Vietnamnews, 2021). Viet Nam is in a good position to
contribute significantly to the next phase of Asia's consumer narrative. Overall, with this
progress in the economic aspect, the wine market in Vietnam will be on the rise.

Technological
Currently, Vietnam has a very developed IT background and is the 8th largest IT supplier in
the world with many highly trained human resources (Topdev, 2021). Technological factors
affect every business, helping businesses to thrive and compete in the market. Winmart's
luxury wine production starts with the development of science and technology, which will
help the production process without too many difficulties and improve operational efficiency
and product quality (MOIT, 2021). For example, more and more modern products are
created, high-tech applications in production, as well as the process of bringing goods from
manufacturers to consumers, will greatly support Winmart. Therefore, Winmart should focus
on investing heavily in technology development in producing and trading luxury wine
products.

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 Political
Vietnam is considered a country with a stable political environment that has few issues
related to religion and ethnic conflicts. That stability is an attractive opportunity for
businesses because it creates a favorable environment for retailers. In particular, our country's
legal system includes many business laws such as commercial, labor, and import and export
tax. However, for wine products, Winmart needs to comply with the excise tax on alcoholic
beverages and regulations on advertising alcohol with a concentration above 15% (Thu vien
Phap luat, 2022). Because of these reasons, the alcohol market in Vietnam has become more
sensitive than ever, so Winmart needs to comply with the domestic legal system in order to
survive and develop in the long run.

Social-cultural

In Vietnam, alcohol consumption is tremendous, and alcohol culture has become familiar
because they consider that drinking alcoholic beverages is to properly respect social manners,
present oneself professionally, and establish and retain business and social networking
contacts. Therefore, this mindset has long persisted in Vietnamese society.

As for wine, in the past few years, it has become a popular drink with consumers. According
to statistics, the annual growth rate of wine consumption in Vietnam increases by about 9%
per year because people's income is growing day by day and has reached the threshold where
they are ready to spend money to buy luxury products. to serve their needs. Moreover,
Vietnamese consumers tend to switch from beer and brandy to wine because it is considered
less harmful to their health. The proof is that upper-class Vietnamese enjoy quality wines in
exchanges, meetings, festivals, family reunions, etc. Because of that popularity, wine is sold
everywhere, from shops, supermarkets to restaurants, hotels, and bars. Therefore, when
starting to penetrate the market, Winmart needs to advertise the product's image and value to
consumers widely.

Company Analysis
Winmart uses a market cover strategy that promotes brand image by opening stores on
crowded streets or narrow alleys. This is a very successful strategy for the retail business
model, especially based on the wealth of Masan resources to expand the scale and reach out
to a large number of potential clients. However, by the year 2020, WinMart eliminated
underperforming stores in order to focus on performance enhancement rather than rapid
development. In addition, it will establish 10–30 VinMart supermarkets as well as 100–300

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VinMart+ stores in Tier 2 cities' Vincom trade centers (Nguyen, et al., 2020).

In Vietnam, customers are quite serious about food safety and hygiene issues in traditional
markets. Therefore, WinMart has differentiated itself from other rivals in large markets by
anticipating customer demand and then serving innovative, safe, fresh products utilizing
smart and modern techniques. Specifically, VinEco also supplies VietGAP and GlobalGAP
compliant organic fruits and vegetables to the market. Additionally, towards the end of 2015,
VinGroup announced a partnership to introduce VinEco, a clean brand that won't use
chemical fertilizers or pesticides on rice fields (Tap chi cong thuong, 2017).

In the production process, more than 30 Masan plants across the country have run efficiently
to guarantee that the supply chain is not disrupted. With many flexible and timely solutions,
the challenges caused by the Covid19 pandemic were quickly resolved, ensuring the dual
objective of both productivity and safety.
Masan has grown its new product portfolio in retail operations, enhanced omnichannel sales,
and satisfying consumer demand throughout the pandemic outbreak. The company also uses
automated filling technology, which raises product availability from 80% to 96%. In
particular, Masan also cooperated with Lazada to drive sales on the online channel, creating
the premise for Masan to build an integrated retail platform from offline to online in the
"Point of Life" ecosystem (Bnews, 2022). Overall, VinMart takes advantage when
positioning itself as a clean, safe brand and regularly updates new items in stores, which
helps enhance customer trust in the socio-economic context.

Collaborators Analysis

Collaborators of Winmart include suppliers, commercial partners, leaders of the government

and society, etc. For Winmart, thanks to 30 Masan factories, it has a tremendous amount of
product from VinEco. Furthermore, they need to find suitable suppliers to ensure Winmart
has high-quality materials and top-notch techniques for new luxury wine. Partners can
improve a business's capacity to deliver its unique good. This component is crucial to the
success of creating high-end wine products because it primarily focuses on Winmart's supply
chain and the company's customer value system. Therefore, Winmart must provide value by
making work transparent, establishing precise contracts and cooperation agreements, assuring
mutually beneficial outcomes, and respecting overlapping interests.

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 Competitor Analysis

Vietnam's retail market now has the presence of large, reputable retailers with scale, potential,
and good service to consumers. Therefore, brands like Mega, Go, and Coopmart have gained
the trust and loyalty of customers. Besides making efforts to satisfy customer needs,
confronting competitors is also crucial for Winmart. Therefore, it is necessary for Winmart to
analyse competitors in order to realize a competitive advantage.

Mega Market is a Thai company that has made inroads into the Vietnamese market for
fast-moving consumer products. The two largest cities in Vietnam, Hanoi and Ho Chi Minh
City, are where Mega Market has effectively and quickly established its business branches. A
large variety of goods are available at Mega Market, including fresh foods like meat, fish,
vegetables, beverages, snacks, and seafood. When following the trend of "Vietnamese people
utilize Vietnamese goods," the fact that 95% of Mega products are made in Vietnam is a
strong suit for this brand. Additionally, because Mega Market places a greater emphasis on
food safety and hygiene, customers are more likely to choose it. Mega Market features
affordable prices as a result of being a wholesale supermarket. Products sold at Mega
Markets typically cost up to 70% less than comparable items at retail stores. Mega provides a
variety of online purchasing options, including a website, zalo, and others, and frequently
offers discounts on special days. Mega also provides free delivery and a lead time of four
hours for its customers (Le, et al., 2020).

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Go underwent a lot of dramatic adjustments after joining Central Group of Thailand in 2016.
Go has partnered with manufacturers to provide the market high-quality goods at lower costs
rather than merely concentrating on the low-cost market as it had in the past. Go routinely
offers incredibly alluring incentives to encourage customers to make purchases. Additionally,
Go concentrates on brand advertising and communication marketing techniques. Go's grocery
stores and shopping malls are regarded as the business's fixed advertising venues. To boost
connection with customers, Go also concentrates on developing a variety of different
communication methods. Go, in particular, pays close attention to advertisements for
Vietnamese products. Go also has a more even distribution than other supermarkets, which
means there will be more room for growth and development (Vietnambiz, 2021).

Lotte Mart came to the Vietnamese market somewhat late in comparison to its rivals.
Although Lotte Mart only presently operates four centers, it entered Vietnam on a formal
basis in 2009 and intends to have 60 stores by the year 2020. combining a variety of
industries, including fast food chains, distribution, food, credit, construction, tourism, and
entertainment. When visiting Lotte Mart, the first thing you'll notice is the large, upscale
building that has a fast food restaurant chain that works with a number of suppliers and
children's play areas.

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VinEco is a brand of clean food that has technology, technology, seeds, and agricultural
equipment transferred from world-famous agriculture such as Israel, Japan, and the
Netherlands, and is sold exclusively at WinMart. VinEco is part of WinMart's marketing
strategy for the supply chain of clean products. Regarding price, WinMart is regarded as
being more expensive than its rivals, but WinMart has quickly stabilized consumer
psychology by pledging to offer consumers the highest-quality products, including those
produced by VinGroup itself. In addition to the discounts, appreciative customers have
increased demand and produced long-lasting advantages like VinID member cards, monthly
shock discount programs, and promotions for special holidays.

2. SWOT Analysis

● Strength:

Winmart is a well-known brand that presents all over the country and is favored and
trusted by Vietnamese customers, so it is a solid foundation for launching high-class
wine products. In addition, thanks to strong finance from Masan group and great business
location, a cutting-edge management system, and quality assurance, Winmart is
undoubtedly one of the few supermarkets with the fastest growth rate. Also, excellent
strategies for system development and access to methodical consumers give Winmart a
lift to stand tall among its competitors.

● Weakness:
Unlike retail stores such as 7eleven, Kmart, and Fullmart, Winmart does not open 24/24,
and products at Winmart's stores are not the same, making customers sometimes unable
to buy their desired goods (Marketingai, 2021).

● Opportunities:
A burgeoning middle class with high incomes and a willingness to spend money on
Winmart's high-quality goods has created expanding market potential for Winmart.
Vietnam has also joined the AFTA, WTO, and Trans-Pacific Partnership, which has
opened up a lot of possibilities for future retail (Vietnam Briefing, 2021).

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 The combination of Vietnam's topography and temperature will produce many
microclimates that may be ideal for cultivating wine grapes for the new wine products.
Moreover, the Vietnam population is predicted to be 101 million by 2025, with the
working-age people standing at 60 percent of the total and a median age of 30. This
aspect will attract more potential buyers for new wine products.

● Threat:

In the fierce competition, besides popular retail stores and supermarkets such as Lotte
mart, Coopmart, Circle K, BB mart, etc., markets and traditional grocery stores still
account for a high proportion and always offer lower prices for customers. The income
gap between urban and rural areas is wide, affecting income-based pricing and reducing
the pool of possible customers for Winmart.

As with any emerging product like luxury wine, opportunities always come with threats.
There are trade barriers and government laws related to importing material and
advertising wine products on social media platforms.

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III. Marketing Problems and Opportunities

1. Marketing Opportunities
As a new premium product on the market, we know that creating brand awareness for
customers is extremely important. The survey result illustrates that most consumers search
for information about wine through social media platforms such as Facebook, Instagram, and
Website. So we can organize running ads and set up suitable content because it can be
understood that the social media users in Vietnam will be 52.8 million by 2023.
The population is expected to increase, and the average age of 30 years old and the culture of
alcohol consumption of Vietnamese people will help Winmart get a source of potential
customers.
Moreover, Winmart has many stores, which is convenient for selling products or organizing
advertising campaigns at the store. From the survey, customers have an inclination to
purchase wine in the supermarket and liquor stores. And according to Vietnam's business law
2022, alcohol cannot be sold through the website. Therefore, our products should concentrate
on selling at supermarkets and can also distribute to liquor stores to increase sales.

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 2. Marketing Problems
The advertising of wine products needs to comply with most of the government laws and go
through a lot of strict requirements to be able to advertise without breaking the law.
Moreover, with the continuous increase of retail stores of famous or spontaneous brands, both
have a significant influence on Winmart.

IV. Marketing Objectives

● Increase sales up 5% at the end of the campaign

● Increase brand awareness
● Promoting wine products of Winmart as the best wine brand in the market with
outstanding quality

V. Marketing Strategy

Marketing Objective Strategies Tactics

- Develop marketing - Allocating budget for content marketing

Increase brand awareness
programs on social media

- Build an in-store - Paying much attention and stimulating

advertising campaign consumers through effective advertising
and campaigns in stores
- Promoting wine
products of Winmart as - Apply the marketing mix sttategy
the best wine brand in
the market with
outstanding quality

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 - Expanding the - Designing different and special
Increase sales up 5% at
consumption packages for those occasions
the end of the campaign
occasions
- Open more stores - Advertising product can be used for
special events

- Sponsoring a particular events to

approach more customers

VI. Marketing Mix Program

Actions Key Activities Budget Timeline

Milestones

Product strategies Satisfy - research and 200.000.000 01/08/2022

- Produce high- customer develop the quality VND -
quality product preferences and to satisfy customer 30/12/2022
- Produce wine with expectation preferences
several benefit about wine - Receive feedbacks
- Implement ideas
of increasing
product quality
- Record the whole
process
-Well-done
packaging

Price Set a suitable - Research the 50.000.000 01/08/2022

- Pricing for new price for a price in the VND -

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 product luxury wine market 30/08/2022
product for a - Using specific
target market pricing
strategies to
differentiate
itself from its
competitors.

Place strategies Approach more - Select new 50.000.000 01/09/2022

- Expand more customers in strategic places VND -
stores middle-class 30/10/2022

Promotion strategies 500.000.000 01/01/2023

- Create a viral - Discount VND -
marketing programd up to 30/12/2023
campaign. 5% when
- Hiring Key customer buy 2
opinion leaders bottle of wine
(KOLs)
- Sale promotion
- Optimize
- Personal
sponsorship,
promotion
advertising and
promotion
processes

People Resource - Hiring 100.000.000 10/07/2022

- Recruitment management talented VND -
- Training focused on new employees 30/08/2022

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 markets and - Training
customer
segments

Process strategies Increase - Increase 300.000.000 10/07/2022

- Build a production productivity capacity and VND -
process system to speed of 30/08/2022
always ensure product
products are development
always available
on the market

Physical evidence Attact - Design logo 200.000.000 30/07/2022

strategies customers and - Set a VND -
- Update the create a brand cleanliness 30/09/2022
machinery image on store
- Market cleanliness customers mind
- Brand design

VII. Implementation and Controls

Actions Key Milestones Responsibility by Function

Product strategies Satisfy customer preferences and R&D department

- Produce high- quality expectation about wine Marketing department
product
Produce wine with several
benefit

Price Set a suitable price for a luxury wine Business department

- Pricing for new product for a target market
product

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Place strategies Approach more customers in Marketing department
Expand more stores middle-class

Promotion strategies Build customer awareness, interest Marketing department

- Social media and favorite for new product
advetising
- Create a viral Increase sale and profit
marketing campaign.
- Hiring Key opinion
leaders (KOLs)
- Sale promotion
- Personal promotion

People Resource management focused on Human resource department

- Recruitment new markets and customer segments
- Training

Process strategies Increase productivity Manufacture department

- Build a production
process system to
always ensure
products are always
available on the
market

Physical evidence strategies Attact customers and create a brand Marketing department
- Update the machinery image on customers mind
- Market cleanliness
- Brand design

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CONCLUSION

This report has analyzed the internal and external environment of Winmart. The, pointed out
the customers intention to a new wine product and their preferences towards wine. And with
the SWOT analyse, the opportunities and problems are illustrated. With a marketing strategy
plan for the introduction of a new product, Winmart will be able to prioritize resources in a
sensible and efficient manner and know which actions to take first. A key role in creating
brand recognition and product image for premium wines is played by the media strategy. The
majority of Winmart's success is attributed to having effective strategic plan management and
business methods.

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