TUT 1 - GROUP 7

Nguyen Huy Tuan - 2104050053

Pham The Anh - 2104050007
Le Phuong Thao - 2104050044
Nguyen Thi Quynh - 2104050042

P RE S E NT AT I ON
 1. Introduction
2. Contextual Analysis
3. SWOT Analysis
4. Critical Examination
Table of 5. Theory Linkage

Contents 6. Conclusion
 1. INTRODUCTION
Title: From "Black Cat" soy sauce containers sold out to the US
in less than a week to the Vietnamese spice industry's "attack
quickly - defend firmly" tactic in foreign markets
Publication date: March 11th, 2024
Source: Cafebiz

Key points
Entering the official U.S. export market presents a big opportunity but also a major challenge for Vietnamese
companies like Nam Duong.
There is huge potential for Vietnamese seasoning products in the U.S. due to the large Asian-American population,
growth of Asian food sections in supermarkets, and increasing demand for healthy, plant-based products.
The suggested strategy is to move quickly to gain market share in the U.S. ("attack quickly") while also firmly
maintaining core quality commitments, constantly innovating to meet market tastes, and leveraging
partnerships/support ("defend firmly"). Nam Duong plans to do this through product development, branding,
promotions and expanding to new markets beyond the U.S.A
2. CONTEXTUAL
ANALYSIS

PESTEL
2.1. Political
Relations between Vietnam and the USA

General Secretary Nguyen Phu Trong and US President Joe

Biden held a joint press conference on the results of the
talks between leaders of the two countries, officially adopting
a Joint Statement to elevate USA-Vietnam relations.
The US became a comprehensive strategic partnership for
peace, cooperation and sustainable development. (tuoitre.vn)

➡ According to the Minister of Industry and Trade,

the first benefit is export activities.

CONT E XT UAL ANAL YS I S

2.2. Economic
A sustainable export market

According to a report from the Ministry of Industry

and Trade, in the eight months of 2023, Vietnam's
export turnover of goods to the United States is
estimated to reach 62.27 billion USD.

Despite a decrease of 19.1% over the same period

last year due to the general impact of the global
economic downturn, the United States is still
Vietnam's largest export market.

CONT E XT UAL ANAL YS I S

2.2. Economic
Robust distribution networks

The USA has well-established distribution

networks. These distribution channels provide
opportunities for Black Cat to reach a wide
audience of American consumers interested in
soy products, thereby expanding its market reach
and increasing sales potential.

Two containers of Black Cat soy sauce were

officially exported and sold in 37 states in the
USA of which 80% were in Vietnamese
supermarkets and 20% were in Korean,
Taiwanese, and Thai markets. (cafebiz.vn)
 Demographic consideration

This target market consists mainly of health-conscious

individuals who are increasingly adopting plant-based diets,
there might be a higher demand for soy products like those
offered by Black Cat.

Premium soy sauce with the symbol "Black Cat" has a

traditional flavor, kept according to the recipe since 1951 and is
always favored by many Vietnamese expatriates in the United
States.

Nam Duong brand was also honored by Culture Magazine

(Canada) as "Best Vietnamese Soy Sauce Flavor of 2019".
The remaining two products were selected based on taste and
market demand to reach a wide range of consumers in the
2.3. Sociocultural United States. ̣̣̣

CONT E XT UAL ANAL YS I S

2.3. Sociocultural
Lifestyle trends
There's a growing trend towards veganism or vegetarianism in the USA, there could
be an increased demand for soy-based products as alternatives to animal-derived
proteins.
Additionally, there's a preference for organic or sustainably sourced foods, Black Cat
could benefit from emphasizing the organic and sustainable aspects of its soy products.
(mordorintelligence.com)

CONT E XT UAL ANAL YS I S

 2.4. Technology

Compliance with food technology in the US

Every year, Nam Duong continues to invest in technology improvements, process improvements,
automation or new product research about 4-5% compared to the total initial investment costs.

Nam Duong also focuses on investing in a quality management system, food hygiene and safety for
the factory system following a closed completion model from raw materials to finished products
achieving certifications.

These advantages allow Nam Duong to quickly meet the regulations of the US Food
Safety Modernization Act (FSMA) as well as strict food safety standards quality.
(dantri.com )
 Climate change
The negative impacts of climate change on Vietnamese
agriculture are strong, and the long-term scenario is uncertain.
Saline intrusion in the 2020 dry season caused provinces in the
Mekong Delta to declare an emergency. This can create
challenges for Vietnamese businesses in terms of ensuring a
consistent supply of high-quality produce for the USA market.
(ictvietnam.vn)

Growing Demand for Sustainable and Plant-Based

5. Environmental
Foods

There is a rising demand in the USA for sustainable and plant-

based food options due to increasing awareness of
environmental issues. Soy products, being a popular plant-
based protein source, stand to benefit from this trend, as
2.5. Environmental consumers seek alternatives to meat and dairy products. (gfi.org)

CONT E XT UAL ANAL YS I S

2.6. Legal
Food Safety and Sanitary Regulations
While stringent, US food safety regulations ensure that exported soy products meet high standards of
quality and safety especially FDA which can enhance the reputation of US soy in international
markets.

Nam Duong prioritizes quality and safety by investing in a closed-loop production system with
certifications like FSSC 22000, AIB, SEDEX SMETA, FDA,... ensuring they meet strict US and
international food safety standards. (dantri.com )

Trade Agreements
The USA has various trade agreements with countries around the world that can facilitate the export
of agricultural products. The U.S.-Vietnam Bilateral Trade Agreement (BTA) is a comprehensive
document covering trade in goods, protection of intellectual property rights, trade in services,
investment protection, business facilitation and transparency. (wtocenter.vn)

CONT E XT UAL ANAL YS I S

3. SWOT ANALYSIS
 Long-standing & Reputable Brand:
STRENGTHS Nam Duong is a spice brand with more
than 70 years of experience in the
Vietnamese market, trusted and favored
by consumers.

High Quality Products: Nam Duong

focuses on investing in the quality
management system, ensuring products
are always safe and meet international
standards like FSSC 22000, AIB, ISO
14001:2015, SEDEX SMETA, FDA,...

Nationwide Distribution System: Nam

Duong products are present in most
supermarkets and grocery stores
nationwide.

S WOT ANAL YS I S
 WEAKNESSES
Product Packaging: Compared to
competitors, Nam Duong's product
packaging may not be modern
enough and attractive to young
consumers.

Ineffective Marketing Activities:

Nam Duong has not really invested
heavily in marketing, leading to
ineffective customer outreach.

S WOT ANAL YS I S
 Potential Export Markets: The export
market is a great potential for Nam
OPPORTUNITIES Duong, especially demanding markets
such as the USA and Japan.

Clean & Organic Food Markets:

Demand for clean and organic food is
increasing, opening up opportunities
for Nam Duong to develop new
product lines.

Strategic Cooperation: Can seek

opportunities to cooperate with
strategic partners to strengthen Nam
Duong’s position in the market.

S WOT ANAL YS I S
 THREATS
Fierce Competition: Vietnam's spice
industry has fierce competition with
many big brands such as Knorr, Maggi,
Chin-Su.

Change In Taste: Consumer tastes,

especially young people, can change
easily with trends.

S WOT ANAL YS I S
 4. CRITICAL
EXAMINATION
 4.1. Reliability

About the source

Cafebiz.vn is a Vietnamese online platform offering timely news and

insights on the business market from an expert perspective, technology
and investment. Therefore, Cafebiz is considered a reliable economic
and financial information source

However, Cafebiz is under VCCorp, a Communications Company so

need to further examine whether it is a PR article
 4.2. Media bias

About the languages

The news uses positive words that bring personal
perspectives with a neutral tone and emphasize the
opportunity for Nam Duong company.

=> Convince the readers that Nam Duong Company is a

successful business that still operates smoothly with
modern production lines meeting international standards.

=> It should be better if the article mention clearly about the difficulties and challenges Nam
Duong faced in when exporting into the USA market in more detail.
4.2. Media bias

About some fact and

figures
The news presents some data and facts that support its
claims, such as the company's sales point in three markets—
Vietnam, Laos, and Cambodia—and the proportion of sales
revenue that originates from exporting units.

However, the news does not cite any sources of references for these data and they did not
explain how the statistics were collected.
5. THEORY LINKAGE
5.1. Purchasing Power Parity

The United States has the

second-strongest purchasing
power (The World Bank)
5.2. Market Segmentation
Demographics:
Age: 25-65 years old
Gender: Male and female
Income: Medium to high
Geographics:
Focus on major cities such as New York, Los Angeles, San
Francisco, Chicago, Houston, etc.
Psychographics:
Lifestyle: Cares about health, likes to eat healthy, prefers
natural and organic foods
Value: Appreciate product quality, willing to pay for a brand
new experience with spices from other cultures.
Behavioral:
Shopping habits: Often shop at high-end food stores, stores
specializing in selling organic food, or buy online
Usage: Medium to high consumption
5.3. Market targeting

North America Spices and Spices Market

size is estimated to reach USD 4.20 billion
by 2024 and is expected to reach USD 5.26
billion by 2029, growing at a CAGR of
4.65% during the forecast period
(2024-2029).
5.4. Feasibility and compatibility
30 million Asians and 1.3 million Vietnamese
are living. According to a Euromonitor survey,
80% of US supermarkets have an Asian food
section (CFbiz)

Low export tax from 2-7% to America. Despite

not yet being a member of the WTO, Vietnam
has signed a bilateral trade agreement with
the United States (TTWTO)

Nam Duong decided to approach the American market through indirect export as it is
a good strategy to test the international waters
Can instantly have access to customers
Minimum resource commitment
Minimum risk
5.4. Feasibility and compatibility
With support from the "giant" Wilmar,
Nam Duong has been significantly
upgraded from production technology to
packaging, giving consumers increasingly
improved products worth 25.6 million
USD, with a total capacity Production to
date has reached more than 94,000
tons/year for the sauce and spice
industries. (Cafebiz)

Cost of entry: The spice market in America already features many heavy competitors like
Ajinomoto, McCormick, Heinz, and KERRY. All these brands have built strong awareness among
consumers.

=> Nam Duong will face difficulties in building brand recognition and competing with other “Giants”
in the spice market.
5.5. Framework for selecting target market
Key driver (Cafebiz)
Nam Duong also focuses on investing in a
quality management system, food hygiene,
and safety for the factory system following a
closed completion model from raw materials
to finished products achieving certifications
such as FSSC 22000, AIB, SEDEX SMETA, FDA,
AIB, ISO 14001:2015…
Premium soy sauce with the black cat symbol
has a traditional flavor, keeping the recipe
since 1951, and is always favored by many
Vietnamese expatriates in the United States.
5.5. Framework for selecting target market
Enabling condition :
Trade development cooperation between the two countries, approximately 20% a
year, creates more opportunities for Nam Duong to reach the American consumer
market (NIF).
Due to the COVID-19 pandemic, consumers are not eating away from home much.
However, consumers seek bold flavors and spices reminiscent of restaurant-quality
dishes for at-home consumption (Mordor Intelligence).
Various studies have described that 50% of US consumers want to try new, exciting
flavors (Mordor Intelligence)
Post-pandemic consumption trends: increasing emphasis on healthy factors. Plant-
based products are predicted to grow 5 times by 2030 (Cafebiz)
 6. CONCLUSION

Given that Nam Duong's core competencies closely match the

opportunities available in the U.S. market, the prospects for exporting
their agricultural goods appear very promising. By leveraging their
strengths and assets in an astute manner, Nam Duong company likely
possesses the capabilities required to satisfy the escalating U.S.
consumer demand for premium soy sauce products of superior quality.
Their strategic positioning enables them to effectively tap into this
benefical market segment.
THANK YOU
FOR YOUR ATTENTION
REFERENCES
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