CHANH THU

ENTERING THE
US MARKET
Nguyen Duc Hong Quan
11194354
International Business 61B
Prof. Mai The Cuong
 ANALYTICAL
FOUNDATION
Companies entering a new
market need to choose an
appropriate entry mode for
the target market and the
company's internal
resources to develop
effective strategies. Based
on the research and
analysis in Element 1 about
Chanh Thu company
entering the US fruit
market, the most suitable
method that can be
suggested is to export
directly. This technique is
based on the US market
and the Chanh Thu
company's internal
strength. There is the
summary of the US market
and Chanh Thu's internal
power

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TABLE OF
CONTENT

01 02
Entry strategy Targeted segments

03 04
Promotion strategy Conclusion
ENTRY
STRATEGY
The United States is the most powerful country in
the world economically, technologically, and
politically. This development is equivalent to
people's wealth and high electricity demand,
creating momentum for many new businesses, and
diversifying the US fresh fruit market. The U.S. fruit
& vegetables market size was valued at USD 62.52
billion in 2021 and is expected to expand at a
compound annual growth rate (CAGR) of 5.0%
from 2022 to 2030. Consumers are increasingly
spending a lot of time and money on their health
and are looking for fresh and exotic fruits and
vegetables for a healthy diet. Berries, avocado,
mango, pomegranate, papaya, and sweet potato
have become immensely popular because they are
rich in antioxidants, potassium, and vitamins A, K,
C, and E. Rising awareness about the numerous
benefits of nutrient-rich produce is contributing to
the growth of the overall market.
Chanh Thu has made numerous advances in fresh
fruit and achieved many accomplishments in recent
years, but in comparison to the market in the
United States, the company has yet to establish
many highlights. Chanh Thu Joint Stock Company is
capable of supplying more than 300,000 tons of
fruits of all kinds in the year for export to the US,
Japan, Australia, Europe, China, and Korea... The
packer has been certified for food safety according
to standards. FSSC 22000, Global GAP, and
“packer code” issued by the Government of
Vietnam. eligible to export fresh fruit to the US,
Australia, and New Zealand markets.
THE RECOMMENDED
ENTRY MODE IS DIRECT
EXPORTS
Direct exporting is a simple entry strategy that
might be suitable for organizations that want to
expand their market share or maximize profits.
An organization of any size can start direct
exporting activities
Chanh Thu's fruit products have fully met the US
export requirements and standards and
achieved great success in Vietnam. The company
also has a good financial background and
domestic resources to conduct self-prepared
steps for exporting to foreign countries such as:
handling the sales process, logistics of shipment,
foreign distribution, and collecting payment.
 THE RECOMMENDED
ENTRY MODE IS
DIRECT EXPORTS
Direct exporting does provide the exporter
with a lot of control over how the product is
positioned and sold. It can obtain in-depth
information about trade in the target
market, enabling it to make future decisions
about whether to invest in facilities in the
market. This entry mode is suitable for
Chanh Thu which is interested in long-term
growth in an international market; direct
exporting can be a suitable entry strategy
because it enables the organization to gain
knowledge of the market and develop
distribution channels.
Vietnam is a member of WTO creating more
opportunities that is an advantageous
condition for Chanh Thu to go into economic
crisis and recession and receive tax incentives.
This will help reduce export costs for export
fruit.
=> The US is a stable market both
economically and politically. Besides, the USA
has the advantage of global in-house tech
companies. Therefore, this is a worthwhile
market for Chanh Thu to focus on long-term
investment.
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TARGETED
SEGMENT

B2C TABLE

Target customer is often concentrated in urban

areas, where the economy is developed, and there
Geographics are many facilities such as supermarkets, schools,
hospitals, and medical facilities.

Average age: 35,7 (2021)

Average income: over 50,000 USD/year
Demographics Education level: above secondary-educated
Gender: diversify (male, female, third-gender)

Lifestyle: diversify (dynamic, social, sober-

minded, quiet)
Attitude: diversify (like marketing campaigns,
Psychographics want to understand products themselves…)
Values: tend to be concerned about the
environment

Tend to like shopping

Behavioral Want bargains
More likely to buy organic things

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 ORGANIZATIONS
AND
INDIVIDUALS

ORGANIZATIONS

Organizational customers: businesses,

hospitals, and schools have a great
demand for clean fruits to serve the
health needs of users as well as the
uniqueness of foreign fruits. For example,
businesses focus on green and clean
organic products, schools need to provide
fresh fruit for students' lunches.

INDIVIDUALS

All customers have needs for clean

fruits (both families and offices)
Age: from 14-60, accounting for
66.8% of the US population
Gender: Various
Occupation: All occupations
Income: middle-high income

The fresh fruits & vegetable segment held the largest share of 78.6% in the U.S. fruit
& vegetable market in 2021 and is expected to retain its dominance throughout the
forecast period. Trendy diets that emphasize the consumption of raw fruits, such as a
paleo diet, have been known to be increasingly appealing to young consumers.

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 CHANH THU HAS A WIDE CUSTOMER BASE AND
DOES NOT LIMIT THE DEVELOPMENT OF
DISTRIBUTION CHANNELS

To meet the needs of target customer groups, Chanh Thu company has
met many strict standards of the US Department of Agriculture such as
Global GAP, Chanh Thu's partners in the orchards are granted codes.
number and certification of good agricultural production practices
according to VietGAP and GlobalGAP. This quality assurance system
ensures worldwide standards for agricultural products from growing,
harvesting, and packaging to prevent harmful elements on crops to
produce fresh produce. safer and healthier. What's more, being FSSC
22000 certified, Fruits are packed according to FSSC 22000 standards as
well as the US, Australia, and New Zealand markets. A good farming
environment is important but a management system is even more
important. At Chanh Thu, control critical limit points, and analyze hazards
to ensure food safety in their operations.
Promotion strategy

The US is a dynamic market with many large and small competitors. Chanh Thu’s customer
base is mainly middle-high-income people, this type of group is mostly concentrated in
urban areas, near big supermarkets. However, the sales channel through supermarkets
requires a lot of finance as well as high competition (because many famous and big brand
items are displayed alternately and the main shelf is high). Chanh Thu, on the other hand,
lacks a brand identity and presence in this market, thus it should sell its products through
traditional channels with intermediaries (wholesalers or retailers). When working through
intermediaries, Chanh Thu can reduce distribution costs and increase customer approach
because local distributors understand the market and their customer needs, they have
many contacts and partners with long-standing, reputable cooperation that helps products
reach customers more easily. Moreover, selling through intermediaries is a form of indirect
advertising for the company's image.

Exporting companies must find a way to distribute and advertise their products in the new
country, this is usually done through contractual arrangements with a local company or
distributor. The company must consider the labeling, packaging, and pricing of products
that are appropriate to the market. In terms of marketing and promotion, the company will
need to inform potential customers about its products and services, whether through
advertising, trade shows or the local sales force. Through identifying market segments and
identifying target customers of Chanh Thu above, the company has a number of export
promotion campaigns to the US.
 PROMOTION
STRATEGY
ADVERTISING
Chanh Thu's products should be advertised with
three focus targets:
The first step is to deliver information; the second
step is to persuade the customer, and the third step
is to remind the customer to remember the products.
The message of these advertisements should be
concise, appealing, intelligible, and emotional.
Television, radio, newspapers, and the internet are all
examples of advertising. However, in the short term
and to conserve money, Chanh Thu company should
employ less expensive but highly successful, widely
dispersed, and popular advertising tactics, such as
social media marketing or advertisements on well-
known US websites. Furthermore, the corporation can
advertise the product to target clients through the
Vietnamese community's television and radio channel
networks in the US. In addition, the corporation could
promote in a catalog or on a billboard.
SALES PROMOTION
Chanh Thu can offer many forms of promotion
(mainly on price): the price is lower than other
products of the same quality and can be substituted
for other products. A slightly lower pricing strategy
(usually it will be 5%-15% lower than the price of
similar products of other companies in the market)
will hit the bargaining mentality of customers.
American. However, the company should be careful
not to let the price be too low, which will lead to
counterattacks from competitors, and avoid losses
that may not be compensated. After having enough
time to locate fresh and processed fruit products, the
company should gradually increase the selling price.
Chanh Thu can charge higher prices for products at
a time when it has captured American consumption,
fresh fruit will easily be accepted by American
customers due to the tendency to care about people's
health after the covid pandemic. and they have a
decent income; they are not sensitive to changes in
price.
SELLING
Chanh Thu must create thinking and develop sales
through exporting products besides advertising. Focus
on developing and improving the link chain. To
achieve this goal, Chanh Thu needs to be interested in
retailing with large corporations in the US. In order to
save money and reduce costs, the company can link
up with other businesses in the same industry in
Vietnam instead of competing in big markets,
especially the US market. Diversifying products to
create convenience and meet the needs of consumers
in the US market is the right thing to do and must do.
Not competing with each other for only 1/3 of the
market share but losing many other things.
STRENGTHEN BRAND NAME
The internet is a technology that helps a company's
commercial operations since it offers a fast speed of
image and information transmission, low costs, and
the ability to connect with clients from all over the
United States. As a result, Chanh Thu should make the
most of the internet environment for sales promotion
and brand development via websites.
The company might create its own website in a
foreign language to expose the company and its
products to US clients, while also developing it as a
sales channel, advertisement, and brand development
for Chanh Thu's brand names. Website content should
have a scientific layout, a logical, user-friendly
interface, and be tailored to American preferences.
Furthermore, the corporation should update
information regarding the company's image and
product on a regular basis for the benefit of its
customers. If the website is not kept up to date, it will
quickly become obsolete.
 CONCLUSION
Chanh Thu has extensive international experience and a stable economy,
allowing him to expand the market into the United States. Focus
particularly on niche markets such as fresh fruit and organic fruit with
aesthetic value, as the market's development trend is toward green,
healthy products with aesthetic needs. high. Chanh Thu meets U.S. export
requirements and offers products that can compete with those already on
the market. Using the research detailed in the report, Chanh Thu should
directly export to the United States and quickly grasp the trend of using
fresh and organic fruits on the American market. In addition, Chanh Thu's
market customers include businesses, individuals, and households.
=> Chanh Thu's business acumen and international experience enable her
to reach the international level and conquer this competitive market.