Maketing Plan Vissan Canned Food

Marketing Plan Vissan Canned Food Product Lecture: Dennis Tan. Name: Tran Thi Linh Chi S3359009 Dao Thi Lan Anh S3357844 Hoang Thi Bich Ngoc S3312368 Ngo Thi Thu Hien S3373510 Nguyen Thu Thuy S3344052

Marketing Principle Table of Content Executive Summary ........................................................................................................................ 4 I.

Introduction ............................................... ...................................................... .............................................................................. ........................ 5

II. Situation Analysis ............................................... ..................................................... ..................................................................... ................ 5 2.1.

Company description...................................................... .................................................. 5

2.1.2. III.

Product description ..................................................... ....................................................................................................... .................................................. 5

Marketing Environment ..................................................... ....................................................................................................... .................................................. 6

3.1.

Micro – Micro – environment environment ...................................................... ........................................................................................................ .................................................. 6

3.1.1.

Marketing intermediaries (Resellers)................................................ ........................ 6

3.1.2.

Customers ...................................................... .......................................................................................................... ........................................................... ....... 6

3.1.3.

Competitors .................................................... ........................................................................................................ ........................................................... ....... 7

3.2.

Macro – Macro – environment environment ....................................................................................................... 8

3.2.1.

Demographic .................................................. .................................................... ........................................................... ....... 8

3.2.2.

Economic ............................................. ..................................................... ..................................................................... ................ 8

3.2.3.

Political ................................................ ..................................................... ..................................................................... ................ 9

3.2.4.

Cultural ................................................ ..................................................... ..................................................................... ................ 9

IV.

SWOT analysis...................................................... .......................................................................................................... ........................................................... ....... 9

V. Product Life Cycle .................................................... ........................................................................................................ ......................................................... ..... 10 VI.

Setting Objectives ..................................................... ......................................................................................................... ......................................................... ..... 11

6.1.

Corporate objectives ...................................................... ...................................................................................................... ................................................ 11

6.2.

Financial objectives ....................................................... ....................................................................................................... ................................................ 11

6.3.

Marketing objectives ..................................................... ..................................................................................................... ................................................ 11

VII.

Segmentation, Targeting and Positioning .................................................... .......................................................................... ...................... 12

7.1.

Segmentation ............................................... ..................................................... ................................................................... .............. 12

7.2.

Targeting ..................................................... .......................................................................................................... ................................................................... .............. 13

7.2.1.

Evaluating Market Segments: .................................................. ............................... 13

7.2.2.

Selecting Market Target Segments: .................................................. ...................... 14

7.3.

Differentiation ............................................. ..................................................... ................................................................... .............. 14

7.3.1. 7.4.

Possible Competitive Advantages............................................ ............................... 14

Positioning................................................... ..................................................... ................................................................... .............. 15

Vissan Marketing Plan – RMIT University

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Marketing Principle Table of Content Executive Summary ........................................................................................................................ 4 I.

Introduction ............................................... ...................................................... .............................................................................. ........................ 5

II. Situation Analysis ............................................... ..................................................... ..................................................................... ................ 5 2.1.

Company description...................................................... .................................................. 5

2.1.2. III.

Product description ..................................................... ....................................................................................................... .................................................. 5

Marketing Environment ..................................................... ....................................................................................................... .................................................. 6

3.1.

Micro – Micro – environment environment ...................................................... ........................................................................................................ .................................................. 6

3.1.1.

Marketing intermediaries (Resellers)................................................ ........................ 6

3.1.2.

Customers ...................................................... .......................................................................................................... ........................................................... ....... 6

3.1.3.

Competitors .................................................... ........................................................................................................ ........................................................... ....... 7

3.2.

Macro – Macro – environment environment ....................................................................................................... 8

3.2.1.

Demographic .................................................. .................................................... ........................................................... ....... 8

3.2.2.

Economic ............................................. ..................................................... ..................................................................... ................ 8

3.2.3.

Political ................................................ ..................................................... ..................................................................... ................ 9

3.2.4.

Cultural ................................................ ..................................................... ..................................................................... ................ 9

IV.

SWOT analysis...................................................... .......................................................................................................... ........................................................... ....... 9

V. Product Life Cycle .................................................... ........................................................................................................ ......................................................... ..... 10 VI.

Setting Objectives ..................................................... ......................................................................................................... ......................................................... ..... 11

6.1.

Corporate objectives ...................................................... ...................................................................................................... ................................................ 11

6.2.

Financial objectives ....................................................... ....................................................................................................... ................................................ 11

6.3.

Marketing objectives ..................................................... ..................................................................................................... ................................................ 11

VII.

Segmentation, Targeting and Positioning .................................................... .......................................................................... ...................... 12

7.1.

Segmentation ............................................... ..................................................... ................................................................... .............. 12

7.2.

Targeting ..................................................... .......................................................................................................... ................................................................... .............. 13

7.2.1.

Evaluating Market Segments: .................................................. ............................... 13

7.2.2.

Selecting Market Target Segments: .................................................. ...................... 14

7.3.

Differentiation ............................................. ..................................................... ................................................................... .............. 14

7.3.1. 7.4.

Possible Competitive Advantages............................................ ............................... 14

Positioning................................................... ..................................................... ................................................................... .............. 15


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Marketing Principle 7.4.1.

Positioning map ...................................................... ...................................................................................................... ................................................ 15

7.4.2.

Value Proposition................................................... ................................................. 16

7.4.3.

Positioning statement ...................................................... .............................................................................................. ........................................ 17

VIII. Marketing Mix Strategies ................................................. ................................................. 18 8.1.

Product ............................................... ...................................................... ............................................................................ ...................... 18

8.1.1.

Product Classification ..................................................... ............................................................................................. ........................................ 18

8.1.2.

Three levels of product ................................................... ........................................ 18

8.1.3.

Brand Development Strategies ................................................ ............................... 20

8.2.

Price .................................................... .......................................................................................................... ............................................................................ ...................... 20

8.2.1.

8.3.

8.2.1.1.

Current Price ................................................... ................................................. 20

8.2.1.2.

Product Mix Pricing Strategies .................................................. ...................... 20

8.2.1.3.

Price-Adjustment Strategies ...................................................... ............................................................................ ...................... 21

Place ................................................... ...................................................... ............................................................................ ...................... 22

8.3.1.

Customers‟ need...................................................................................................... 22

8.3.2.

Distribution strategy................................................................. ............................... 22

8.3.3.

Vertical marketing systems (VMS) .................................................. ...................... 22

8.4.

IX.

Company‟s Pricing Strategies .................................................. ............................... 20

Promotion .................................................... ......................................................................................................... ................................................................... .............. 23

8.4.1.

Advertising Objective ..................................................... ............................................................................................. ........................................ 23

8.4.2.

Advertising Budget ................................................ ................................................. 23

8.4.3.

Advertising Media ................................................. ................................................. 24

8.4.4.

Public Relation ........................................................ ........................................................................................................ ................................................ 25

8.4.5.

Sale Promotion ........................................................ ........................................................................................................ ................................................ 25

8.4.6.

Direct Marketing ..................................................... ..................................................................................................... ................................................ 26

Action Plan............................................. .................................................... ............................................................................ ........................ 28

X. Control .............................................. ...................................................... ..................................................................................... ............................... 30 XI.

References .............................................. ...................................................... ............................................................................ ...................... 31

XII.

Appendixes ..................................................... .......................................................................................................... ................................................................... .............. 33


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Marketing Principle Executive Summary Vissan canned/preserved food has presented its objectives and goals for the period from May 2013 to April 2014. For financial objective, it is to increase profit through sale to both wholesalers and retailers as well as online sale. On the other side, marketing objective is trying to expand the market share in Vietnam. In order to achieve those goals, Vissan is going to apply various strategies which will strengthen its 4P marketing strategies and ensure the success of the plan. For P1 – product, Vissan canned/preserved food will improve its 3 levels of product which are core benefit, actual product and augmented product. Vissan can make innovation so that it can bring them to the new level as well as adding a logo on the lid of the can to make it stand out, also Vissan will need to add more services to its product such as hot line and online ordering. Also to increase profit and market share, Vissan need to apply line extension strategy which is having new flavours and new ingredients coming out so that it can attract new customers and keep the old ones interested. For P2 – price, together with line extension, there must be product line pricing which different price for different product with different cost. Another pricing strategy is product bundle pricing which is giving customers discount when they buy in bulk. Promotion pricing and cash discount is used on retailing and wholesaling as it give customers a better price when ordering online and for wholesalers is cash back on early payment. Due to the characteristic of Vissan canned/preserved food is convenience product, it need to use intensive distribution for P3 – place in order to gain market share. Vissan will expand its distributors to supermarkets and local convenience shops as well as online shopping. Vissan also apply administered vertical marketing system to serve their customers better. At last, for P4 – promotion, in advertising, Vissan will have online ads on Zing, VnExpress and Tiep Thi va Gia Dinh magazine and to for better impact, ads will be also on television . Other tools to increase sales will be coupon and sweepstakes operate throughout the period. For public relation, Vissan will sponsor for charity events such as events of Operation Smiles as well as doing direct charity trip. Moreover, Vissan use public service activity and written material to raise customers‟ awareness. Another strategy will be using Internet to gain awareness of the brand by online marketing .


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Marketing Principle I.

Introduction

Vietnam is a developing country and the bustle of Vietnamese market attracts a lot of domestic and foreign investors. Moreover, living standard of Vietnamese is improved so the demand of preserved food in a busy life is increase. Canned/ preserved food is not a new product category in Vietnam and there a lot of companies invest in to this market. However, there is only one leader in canned/preserved food which is Vissan which occupies 29.62% market share (Euromonitor International, 2013). On the other hand, the market share of Vissan‟s canned/preserved food just increased slightly and slower than two previous years (Euromonitor International, 2013). Therefore, this marketing plan will help Vissan‟s canned/preserved food increase profit and market share by exploiting all strengthen aspects of product and opportunities from market and minimize its‟ threaten and weaknesses.

II.

Situation Analysis

2.1.

Company description

According to Vissan Limited Company (2009), Vissan which belongs to Saigon Trading Group, was established in 1970 but it officially launched to the market in 1974. From 2006, the name of corporation changed into Vissan Limited Company (Vissan Co Ldt). After coming the market , it took over a lot of competitors and became to the leader of canned/ preserved food market and ranked the third position in the packaged food in Vietnam in 2012 (Euromonitor International, 2013). Moreover, during 39 years working in the Vietnamese market, Vissan Co ltd received a lot of positive feedback from customers so it brings a huge amout of money for company each year. In 2012, net sale and net profit of company reached VND 4,374 billion and VND125.5 billion respectively (Euromonitor International, 2013). Additionally, Vissan Co Ltd achieved a lot of certificates such as Certificate of Accreditation ISO/IEC 17025, ISO 9001:2000 and HACCP Certificates and Certificate of High Quality Vietnam Products (from 1997 to now). Furthermore, Nissan Ltd has thousands of workers trained carefully and they are work with a Japanese technology processing line.

2.1.2. Product description Vissan canned/preserved food products are made from fresh food and add perfect spices. Moreover, Vissan Ltd use completely Japanese technology in processing so Vissan canned/ Vissan Marketing Plan – RMIT University

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Marketing Principle preserved food products are very safe for people‟s health and have delicious taste. Moreover, there are four main kind of Vissan canned/preserved food which is chicken, pork, beef and fish. Therefore, customers can have a lot of choices.

III.

Marketing Environment

3.1.

Micro – environment

3.1.1. Marketing intermediaries (Resellers)

According to Euromonitor International (2012), distance is the most important factors when customers choose the place to buy food. This report also states that market shopper will choest the nearest market to purchase food. On the other hand, supermarket shopper will chose the most familiar supermarket to purchase. Moreover, convenient stores and local groceries are highly considered for top – up food shopping (Euromonitor International, 2012). At this time, Vissan has 11 direct stores and 600 retailers and 700 authorized stores in Ho Chi Minh City (Euromonitor International, 2013). Additionally, Vissan distributes product for all supermarket in Vietnam (Euromonitor International, 2013). Moreover, it has retailers in Hanoi and Da Nang. Strengths : Vissan distributes its product widely so customers can find Vissan canned/preserved

product easily. 3.1.2. Customers

According to Kotler et al (2009), there are five types of customer market which contains consumer markets, business market, reseller markets, government markets, international markets. Applying in Vissan canned/preserved food, there are three intended markets. - Reseller market : people or organization buy product to sell to others to make profit (Kotler et

al, 2009) - Consumer market : people who purchase and consume product directly (Kotler et al, 2009). - International market : exporting product to other countries (Kotler et al, 2009).


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Marketing Principle However, in this case Vissan team concentrates on consumer market to have deeply analysis about Vissan canned/preserved food. Customers recognize that Vissan canned food products are very convenient and do not have negative effect for their health Strength : Customers realize that Vissan is a product which has high quality. 3.1.3. Competitors

Nowadays, Vietnamese customers are more familiar with Western lifestyle; therefore, a lot of companies invest into canned/preserved food market. Brand name

Vissan

Ha Long

Tuyen Ky

Seaspimex

Vissan Co Ltd

Ha Long canned food JSC

Tuyen Ky Co Ltd

Special Aquatic Joint – Stock Co

Year comes to market

1974 (Vissan Limited Company, 2009)

1957 (Ha Long Canfoco, 2013)

1994 (Tuyen Ky Food .Co Ltd, 2013)

1983

Market share volume (2012)

29.62% (Euromonitor International, 2013)




Canned beef Canned chicken Canned pork Canned fish

Canned beef Canned pork Canned fish

Canned beef Canned chicken Canned pork Canned fish Canned mushrooms Canned Sweet Tea Canned cocktail Canned pineapple

Canned fish

33, 000 VND/ tuna in oil can (170 grams)

29, 000 VND/ tuna in oil can (175 grams)

28,000VND/ tuna in oil can (170 grams)

27,000 VND/ canned fish (185 grams)

Company

Products’ tastes

Price


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Marketing Principle Strengths : Although Vissan came to market latter than Ha Long, it still is the leader of the

market. Moreover, market of Vissan much higher than Tuyen Ky and Seaspimex. Therefore, customers will be more familiar with Vissan than others. Weaknesses : The average price of Vissan is higher than its competitors.

Vissan provides less choice for customers than Tuyen K y.

3.2.

Macro – environment

3.2.1.

Demographic

According to Nielsen (2010), more than 56% Vietnamese population are under 34 years old. It is an opportunity for Vissan canned food because 56% is a significant number which will bring potential target customer for brand. (Apendix 1) TNS (2009, cited in Dexter, 2010) point out that 37% of Vietnamese population has from middle income to high income. This report also states that 49.6% of urban population has income from 3 million to 15 million. It is an opportunity for Vissan because target market of Vissan is urban population and from middle to high income. Hence, 49.6% of urban population can afford Vissan canned food. Opportunities: 56% of population is under 34 years old which will bring potential target

customer for brand. 49.6% of urban population can afford Vissan canned food. 3.2.2. Economic

According to Dexter (2010), the inflation decreased from 18.13% to 9.96% between 2011 and 2012. However, the average price of canned/preserved food still rises by 7% due to inflation in 2012 (Euromonitor International, 2013) Matthaes (2012) states that Vietnamese people now have tendency to save more money than before. Therefore, 50% consumers find it easy to purchase other canned/preserved food brands which are less expensive than familiar products. Threaten: when a price of product go up, customers‟ purchasing power will decline.


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Marketing Principle Vissan customers can buy competitive product if its price is cheap er . 3.2.3. Political

Vietnamese Government launched a campaign “Vietnamese use Vietnamese product” successfully. Moreover, the Government continues to support local product. It is an opportunity for Vissan because it is a Vietnamese brand and it has cheaper price than international brand (Euromonitor International, 2013) Opportunity : “Vietnamese use Vietnamese product” campaign help Vissan raise awareness

about Vietnamese product in customers „mind. 3.2.4. Cultural

Nowadays, living standard of Vietnamese is improved than before. Therefore, people start to care about their health and wellness (Euromonitor International, 2013). Therefore, they will choose food and drink more carefully. It is an opportunity for Vissan because it achieved lots of certificates such as HACCP Certificates and Certificate of High Quality Vietnam Products which proves that it has good quality. There is increasing in busy lifestyle and in the number of working mothers in urban so people are more familiar with packaged products, canned/preserved food an convenient products to save time (Euromonitor International, 2013). It is an opportunity for Vissan to interact more with customers. Opportunities : Vietnamese people care more about health and Vissan canned products has a

good quality. Busy lifestyle and there are a lot of working mothers in urban.

IV.

SWOT analysis

Internal Factors

Strengths 



Vissan received many certificates which improve that product has good quality Vissan has wide distribution channels across country


Weaknesses 



The average price of Vissan is higher than other competitors Provide less choices for customers than

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Marketing Principle 

External Factors Opportunities 











V.

Market share is higher than competitors

SO Strategies

Most of all urban population have middle and high income



Vietnam is young country



Emphasis on the quality of product to remind customers via TVC (Section 8.4)

WO Strategies 



Keeping customers loyalty (Section 8.4)

Customers raise awareness about healthy food

Building healthy image in customers mind (Section 8.4) Creating new product to provide customer more choice (Section 8.1)

“Vietnamese use Vietnamese product” campaign of government Busy lifestyle and many working mothers in urban

Threats 



Customers is more familiar with Vissan than others

ST Strategies

High inflation leads declining customers‟ purchasing power Purchasing decisions depends a lots on price of products





.Expanding distribution strategy to bring product closer to customers (Section 8.3)

WT Strategies 

Launching a mass promotion to catch attention of customers (Section 8.4) 

Sharing the burden with customer from economic crisis by launching new positioning statement (more for the same) (Section 8.2) Implement sales a lot of promotion strategy (Section 8.4)

Product Life Cycle

According to Euromonitor International (2013), Vissan was a leader of canned/preserved food from 2008 until now. The market share value of Vissan rose by 0.59% from 2008 to 2009. In the next year, it grew up by 0.55%. Between 2010 and 2011, Vissan‟s market share value rose by Vissan Marketing Plan – RMIT University

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Marketing Principle only 0.29%. There is an increase by 0.38% in the market share value of Vissan from 2011 to 2012. From this, it is clear that although the market share value of Vissan still grew, it just increase slightly which is less than nearly a half two previous year. Vissan still a leader of the market and the market share value still increase slowly so Vissan is in maturity stage in product life cycle. (Apendix 2)

The reason why the market share value of Vissan jumps slower is that nowadays, there are more companies enter into the market such as Tuyen Ky, Seaspimex, Annalisa and Ligo. Moreover, they offer cheaper price for customers than Vissan. Additionally, they provide more choice for customers like Tuyen Ky. The company which is in maturity stage should change and improve product and marketing strategy to gain more customers‟ attention and increase profit (Kotler et al, 2009).

VI.

Setting Objectives 6.1.

Corporate objectives

According to Euromonitor International (2013), the market share value of Vissan increased slower than two previous years. Therefore, Vissan need to increase market share to raise the profit of the company.

Moreover, nowadays customers concern more about their health and wellness more than before. Hence, it is very important for Vissan to reinforce their image in the customers .

6.2. 

Financial objectives

Increase sale of Vissan canned/preserved food from VND 2,344 billion to 3,000 billion from May 2013 to at the end of April 2014.



Increase profit of Vissan canned/food preserved food from VND 55 billion to 70 billion from May 2013 to at the end of April 2014.

6.3. 



Marketing objectives

Increase market share from 29.62% to 32% between May 2013 and at the end of April 2014 Reinforce brand images in customers‟ mind by building healthy image brand.


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Marketing Principle VII.

Segmentation, Targeting and Positioning

7.1.

Segmentation Country

Geographic

Density Age Gender

Demographic

Family Life Cycle Income Occupation Personal Characteristic

Psychographic

Social class Occasion Benefit

Behavioural

Vietnam

Urban (64 cities) 25-34 Female Young mothers with children 3-15 million VND (from middle to high income) White collar Active, outgoing, busy Middle class and Upper class Regular occasion Reduce cooking time, convenience

User status

New users, potential users, exusers, regular users

User rates

Medium user, heavy user

Loyalty status

Medium, strong

Explanation :

- Vissan canned food targets urban areas because people who live in countryside and rural areas often have low income therefore they tend to cook at home by themselves to save money better.

- Vissan canned food also aim for customers from 25-34 years old especially young mothers because those are the ones who are usually busy because of work but also have sufficient income to afford so it makes Vissan canned food become a perfect choice for them. Moreover, using canned/preseved food products is one of the Western lifestyle. Hence, people in this age are quite young so they are more familiar with Western lifestyle than older groups. - Customers of Vissan canned food are often regular users and ex-users, however, they have a huge amount of potential users as the number of people from 25-34 who live and work in the urban are increasing rapidly. Moreover, the users of Vissan canned food products are usually the Vissan Marketing Plan – RMIT University

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Marketing Principle ones who use it regularly on daily basis and very familiar with the product to stick with it for a long time.

7.2.

Targeting

7.2.1. Evaluating Market Segments: 

Segment Size and Growth:

* Segment Size: Vietnam

Urban population

population

People

92,477,857 (CIA The World Factbook, 2013)

Percentage

28,668,136 (US Global Health Policy, 2012)

100%

31%

Urban population

% urban people

from 25-34 years

have from middle

old

to high income

Approximately 16.8 49.6% of urban million (CIA The population World Factbook, 14,219,396 people 2012) (AMCHAM 2012) 18.17%

15.38%

* Segment Growth:

From table above, it shows that Vissan canned food‟s segment size occupies 15.38% of Vietnamese population or 49.6% of urban population. It means that nearly half of urban population earn from middle income or over. As a consequence, the market for Vissan canned food can be considered sufficient to target. Moreover, according to Nielsen (2012), the people‟s tendency of moving to urban areas has been high; therefore, this target segment market is very potential. 

Segment Structural Attractiveness

- Competitors: There are a lot of competitors in the canned/preserved food market such as

Tuyen Ky, Ha Long and Seaspimex. However, Vissan is still a leader in the market so it has more strength than others because customers are more familiar with it (Euromonitor, 2013) - Purchasing power: This report also claims that there has been a significant growth in the trend

for consumption of canned/preserved food. To be specific, the rise was accounted for 7.46(„000 Vissan Marketing Plan – RMIT University

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Marketing Principle tonnes) since 2007 to 2012. It results in the purchasing power for this category of product increasing year by year and not being affected by the inflation. In addition, 49.6% numbers of people, who live in urban areas, have from middle income and over (TNS, 2009, cited in Dexter 2010). Thus, Vissan canned food still remain its considerable impacts on urban customers. 

Company Objectives and Resources:

The will share the burden with consumers in difficult economic situation (Section IV). This price strategy is based on the stable growth and the company‟s effort to keep the price under control and absorb the cost so it can maintain the competitive price in some key brands. According to Euromonitor International (2013), Currently, Vissan canned food held 29.62% of the market share being the leader of canned/preserved food. Moreover, segmentation size of Vissan is nearly a half of urban population so it will help Vissan reaches the objectives between 2013 and 2014. 7.2.2. Selecting Market Target Segments:

Vissan canned/preserved food uses concentrated marketing strategy to target busy and outgoing female customers, which have age range between 25 and 34 years old, live in urban areas and have income from middle to high. By using concentrated marketing , the company can concentrate on these target customers to make them satisfy better and can increase market power as well as building brand image. (Kotler et al, 2009).

7.3.

Differentiation

7.3.1. Possible Competitive Advantages

Product differentiation: 

Used French and Japanese modern technology



Have a full cycle of supply chain system from breeding, feeding



farming



processing  packaging  distribution  storage. Service differentiation: 

Open product showrooms to receive feedback and recommendation from consumers in order to develop new products.


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Have an inquiry page for customers to send any question about the company and products as well as service.

Channel differentiation: 

700 authorised stores for processed food.



11 direct stores in Ho Chi Minh City, more than 600 retailing stores at wholesale and supermarket.



Open 100 product showrooms in Ho Chi Minh city



Have branches in Hanoi, Da Nang, Representative in Russia, Cambodia.

Image differentiation: 

Updated logo and slogan: “Morning sun glow was added to the old logo of three yellow Mai flowers to communicate Vissan‟s continuous effort to satisfy the consumer desire for good food and a good start to the day”. (Euromonitor International 2013).

7.4.

Positioning

7.4.1. Positioning map

Level of Perceive Value Canned food Product

Perceive Value

1

2

3

4

5



Vissan Ha Long Tuyen Ky



Distribution network

 

Seaspimex



Vissan Ha Long Tuyen Ky



Manufacturing Technology

 

Seaspimex Vissan Ha Long



Customer Perception

 

Tuyen Ky Seaspimex




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Marketing Principle

7.4.2. Value Proposition

After identifying the differentiations between the products of Vissan canned food and other competitors, we must analyse whether they can the criteria before establishing before it might cost more than the benefit it brings - Important: the difference in technology will surely bring benefit to target customers because

customers can enjoy a better quality food - Distinctive: the differentiation in services is something that other competitors cannot offer on

the same level because of its convenience in obtaining the products wherever the customers are, together with constant improvement due to the feedback on the website as well as the direct stores or product showrooms. - Superior: the differentiation in channel might give the customers a sense of superior since

there are direct stores and product showrooms of Vissan canned food so that it make the products look like a shopping products rather than convenience products. - Communicable : the differentiation in image, product and channel can be easily recognized by

customers whenever they buy and use the products - Pre-emptive: other competitors cannot use exactly the same technology or ingredients that

produce Vissan canned food.


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Marketing Principle - Affordable: Vissan canned food is convenience products therefore it is always affordable

whether there are changes in technology or ingredients - Profitable: those differentiations aim to bring profit for the company and it has a high rate of

return since they improve the product to make it healthier and more delicious. As a result, Vissan canned food can establish the differentiation since it will bring more benefit than cost. 7.4.3. Positioning statement

Currently, Vissan canned/preserved food uses more for more positioning strategy because the product‟s average price is higher than other competitors as well as bringing more benefits for customers than the others. Specifically, Vissan canned/preserved food is manufactured via the process of using French, Japanese modern technology and as well as a complete end-to-end supply chain system. Thus, the products not only satisfy customers‟ desire for tasty, convenient and healthy food product, but they also continuously remain competitive advantages in the market. In spite of Vissan canned food‟s price being the highest than its main competitors such as Tuyen Ky, Ha Long and Seaspimex, it still attract a huge number of customers. The main reason is that customers now have tendency to choose products which have high quality rather than their price. Consequently, it can be said that the higher price the products are, the more benefits will be provided for customers. On the other hand, the low price is still one of the main factors attract customers‟ decision in choosing goods and Vissan canned food is in maturity stage; therefore competitive price is what they need to capture more buyers in crisis economic situation. Moreover, Vissan will want to share the burden with customers in crisis economic (Section IV). It will leads to Vissan canned food considering the way of charging same price with other competitors but for more benefits. In conclusion, even though the current position of Vissan canned food is still effective, the company needs to apply more for the same for this type of product to attract more customers.


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Marketing Principle VIII. Marketing Mix Strategies 8.1.

Product

8.1.1. Product Classification

Vissan canned/preserved food is a convenient product Buyer behaviour : customers purchase the product frequently and they rarely have comparisons

to other same products in the same category. Pricing : low level of price so customer still have ability to buy it. Distribution : it is very easy for buyers to find the product in local shops or supermarkets. 8.1.2. Three levels of product

Level

Aspects

Current product Prevent hungry, clean

Product Improvement - Provide more benefits for

customers (Improve the Core Benefit

standard of normal meal, stimulate eating habit).

Feature

Quality meat:

Maintain the quality of meat

manufactured by using

as well as the manufacturing

French, Japanese modern

chain system.

technology.

Actual

Design/

Product

Packaging

- Cans are covered by

- Print the logo of Vissan

colourful and attractive

onto the lid of the product

texture with images and

 Makes

main information about

than other competitors. Thus,

the products.

customers can easily

Attract

recognize the product of

customers as

well as make them trust

it stand out more

Vissan.

the quality of products. However, it is quite similar to other Vissan Marketing Plan – RMIT University

Page 18

Marketing Principle competitors‟ packaging in the same product category. - Cans are made of stainless steel  food is preserved for a long time ISO 9001:2000; Certificate - Maintain the existing for Hazard Analysis and

certificates, improve to get

Critical Control Point

higher ones and attain higher

(HACCP); Certificate for

rank in the lead of top

Vietnam High Quality

Vietnam‟s strongest brands.

Product; Gold, silver prize, Quality

medal for food contest st

festivals; Rank 1 in Vietnam‟s food manufacturing industry; st

Rank 15 in the top of 100 Vietnam‟s strongest brands.

Brand Name

Vietnamese long

- Maintain the reputation of

established famous brand

current brand name

name

After sale service

An inquiry page for

24/7 hot-line serving

customers to send any

customers

question. Augmented

Delivery and

product

credit

Warranty

Deliver large numbers of

- Also deliver to retailers.

products to wholesalers. Only expiry date printed

Customers can exchange for

on the cans.

new products if old ones have problems about the quality


Page 19

Marketing Principle 8.1.3. Brand Development Strategies

Even though Vissan creates much more choice about canned food products for customers than other competitors (Section 3.1.3), they still try to catch up Vissan. Additionally, Vissan canned/preserved food is in maturity stage so that the products become familiar with customers and they might feel uninterested with old flavour of them. As a consequence, Vissan canned food would use line extension strategy to extend its existing brand name with creating more new variety for the existing product category. Vissan would add more ingredients with enough dosage in order to stimulate eating as well as implementing new flavours to make customers feel more interested. Moreover, the company would manufacture more different kinds of meat which has become more and more popular nowadays such as canned roast lamb and canned goat meat. Applying line extension strategy brings for Vissan canned/preserved food many benefits: - Vissan will expand the market because it creates more choice for customers. - Vissan will reduce the cost of advertising for new products under this brand name because Vissan is a very strong and familiar brand in Vietnamese market. Thus, Vissan do not need much money to advertise the products. - Vissan will have high opportunity to be successful in launching new products because they are produced based on current manufacturing system as well as using the current brand name.

8.2.

Price

8.2.1. Company’s Pricing Strategies 8.2.1.1.

Current Price

The current price of Vissan canned Food as well as other main competitors are clearly showed in the table above (Section 3.1.3) and the current pricing approach of Vissan canned food is Valueadded pricing. The brand sets higher price than competitors to make customers perceive that

Vissan products have better quality. 8.2.1.2.

Product Mix Pricing Strategies

Strategy Product Line Pricing

How to Apply

- Same price for the same


Reasons to Apply

- Using Product Line Pricing to set

Page 20

Marketing Principle product line

price for each product is

- Different price for the different

appropriate for applying Line

product line (Canned fish‟s

Extension Strategy.

price>Canned beef‟s>Canned

- Promote new product lines by

chicken‟s>Canned pork‟s)

setting the expected market price.

- Set the same price with competitors but more benefits (more for the same) (Section 7.4.3)

- Customers can have a discount

- Increase sales by giving customers

10% when they purchase more

incentive

than 4 different kinds of meat.

-Can promote sales of the new

Product Bundle

- Customers can have an

products

Pricing

additional product when purchasing more than five units of the same product.

8.2.1.3.

Price-Adjustment Strategies

Shopping online has become more and more popular in Vietnam. Therefore, Vissan should construct an online system to sell the products via this channel to attract more customers. Therefore, Vissan canned food would apply promotional pricing to encourage customers buy this kind of product via the Internet. Not only does purchasing online give customers a discount price, but also it brings for them much more convenience in purchasing the products. Customers will pay the bill after the products are delivered to them instead of paying online. This strategy will help both customers and the company itself in saving shopping time and expanding the market respectively. In addition, Vissan also apply cash discount pricing for wholesalers who pays the bills promptly: deduct 3% for buyers if they pay the bill within 10 days. Using this strategy can encourage the wholesales pay the bills early as well as the company can quickly receive money back. Vissan Marketing Plan – RMIT University

Page 21

Marketing Principle As a result, Vissan will have more opportunity to achieve its financial objectives.

8.3.

Place

8.3.1. Customers’ need

Customers of Vissan are young people and middle age living in urban. In these age, people always busy with their work and their personal lives, especially, target customers of Vissan is single males and woman having family (Section Segmentation). Therefore, they highly appreciate convenient factors so Vissan decides to deliver their product to convenient stores and local shops to help the customers save travelling time. Moreover, customers raise awareness

about safety food being good for their help, therefore, they often go to the most familiar supermarket to buy food and drink (Section 2.4 - Culture). Moreover, nowadays Internet is very

popular in Vietnam. Additionally, it helps customers reduces their shopping time, they just have to sit in front of the screen and order product which they want to buy. Therefore, Internet is very convenient for customers to go shopping. Besides delivering products to convenient stores and local shops, Vissan also distributes their products to supermarkets and on the Internet . 8.3.2. Distribution strategy

Vissan canned/preserved food is convenient products so Vissan will apply intensive distribution to bring their products closer to target customers. Moreover, applying intensive distribution system will help the company expand their market and increase the chance to interact with

customers (Kottler et al, 2009) (Apendix 3) 8.3.3. Vertical marketing systems (VMS)


Page 22

Marketing Principle Vissan chooses Administered VMS for the marketing system. Administered VMS is the “leadership comes from size or power” (Kottler et al, 2009). This marketing system has lowest control between three types of VMS. The reason is that Vissan applies mass distribution in Vietnamese urban so it is very difficult to control all of them to follow the design or concept marketing of company. However, when Vissan uses this strategy, retailers and distributors can sell other products so it can make the diversity in their store. Hence, it is a good way to catch customers‟ attention since they find more convenient if they can buy many kinds of pr oducts in one place. Moreover, Vissan also applies Corporates VMS to its official showrooms. According to Kottler et al (2009), in each different level of distribution, there is a typical leader of company to control the system. In the showrooms of Vissan, there is a manager to control it and other staffs will sell product for the customers.

8.4.

Promotion

Vissan uses both push and pull strategy because customers of Vissan canned/food preserved food are consumers and retailer (Section 3.1.2). Push strategy will help Vissan attract of retailers while pull strategy will capture attention of many consumers. Hence, it will assit Vissan increase profit and sale. 8.4.1. Advertising Objective

Vissan will apply Reminder Advertising for canned/preserved food to remind customers about the images of products. Vissan canned/preserved food in in maturity stage in product life cycle. Hence, according to Kotler et al (2009), reminder advertising is a good method for mature product to reinforce product/brand‟s image in customers‟ mind. Moreover, reminding customers about brand‟s image is a good way to keep their loyalty and gain more customers so it will help Vissan increase market share and maximize profit to achieve its objectives. 8.4.2. Advertising Budget

In term of advertising budget, Vissan will implement objective and task. Kotler et al (2009) state that when a firm uses objective and task advertising budget, it has to set up the objectives and task which the company need to do first then approximating the cost.


Page 23

Marketing Principle It is the most effective way for Vissan to set up the budget because it can do step by step so it is very easy to check the efficiency of each task. As a result, if it does not run well, Vissan can come back and do it in more effective way. 8.4.3. Advertising Media

Media Types

Media Vehicle

Internet (31% of

Music website – Advertisement of Vissan

-78% Vietnamese listening to

Zing Mp3

canned/preserved food

music on the Internet.(Cimigo

will be out in Right

Vietnam, 2011)

Banner

- Reach: 21% customers from 25

Vietnamese population

Description

use Internet

Reasons

to 35 years old (Cimigo, 2011)

in 2010) (

-Frequency: 77.6% of Internet

Cimigo,

users accessing to it frequently

2011)

(Zing, 2012) News Website – Advertisement will be VnExpress put into the Top banner

-Reach: 26% customers from 25

to 35 years old access to it

to capture attention of

(Cimigo, 2011)

customers

-Frequency : 800,000 read Vn Express frequently (Ohmy News, 2005)

VTV3

Television

TV commercial

-Reach: 41.2% the number of

advertising of Vissan

people watching TV (Viet Film,


2009)

will performed at 6:52

-Before and after the Daily New

which before the daily

is the “ Golden hour” to advertise

News

Magazine

Tiep Thi va Gia Poster of Vissan will be Dinh put in ½ pages with 4 color in Tiep Thi va Gia


- Reach: 95% urban population read Tiep Thi va Gia Dinh Magazine (Marketing Vietnam,

Page 24

Marketing Principle Dinh Magazine

2012). Frequency: Publish regularly 120,000 issues/week (Marketing Vietnam, 2012)

8.4.4. Public Relation

Tools

How to apply PR employees of Vissan will

write an article when Vissan

Material Written

Reasons to apply -Vissan will save a lot of money


-If

other

newspaper

write

launches a new product or

about the company, it will be

holding some special event.

more credible than advertising

Then, they put it in Vissan

(Kotler et al, 2009).

website and other online newspaper will be interested in it and they will write more about it. Vissan will be sponsor for the

-Create strong connection with

charity program which is hold publicity Special events

by charity organization such as operation smile Vissan

will

participate

in

-It is a good way to capture

“earth hour” program every attention of customers year. Vissan‟ employees will -Create a good image of Public service activities

wear Vissan hat and “earth Vissan in customers‟ mind hour” T -shirt and ride a bike which is protecting around the street

environment with their customers

8.4.5. Sale Promotion

Tools Coupon

How to apply In the label of each Vissan canned/


Reasons to apply -It is a good way to keep Page 25

Marketing Principle preserved food will be put image of a

customers‟ loyalty and enhance

small 3d card showing the logo of

long-term customers‟ relationship

Vissan.

because they will continue

If the customers collect 5 3d card,

consuming Vissan canned food to

they can exchange for a free can of

have chance to exchange to free

Vissan food

one. -Encourage customers purchase Vissan canned food.

Sweepstakes

In the Lunar New Year, Vissan will

-Have an opportunity to gather

organize a huge sweepstakes for

customers‟ information to build

customers. When customers buy a

customers‟ database.

Vissan canned food they will

-Raise customers‟ buying effort.

received a code number inside the

-Encourage customers to buy

label.

Vissan canned food.

After that, they have go to Vissan

-Capture attention of customers in

website to provide their personal

canned/ preserved food market in

information and code number to take

Lunar New Year.

part in the sweepstakes Finally, Vissan will draw 100 lucky code numbers to reward.

8.4.6. Direct Marketing

Vissan will apply Online Marketing to catch attention of customers. Moreover, the company will combine viral marketing and Internet marketing to support to e ach other. Firstly, all employees of Vissan will wear Vissan uniform and dance flowing to Gangnam style in front of the show room in the afternoon to capture attention of customers. Therefore, they will take a photo or record it. Then they will published it on their Facebook page to share with their friends After using camera to record this movement, Vissan will be posted it on YouTube. Moreover, Vissan has customers database from promotion strategy, it will send this video via e-mail for Vissan Marketing Plan – RMIT University

Page 26

Marketing Principle customers. If the customers interested in it, they will forward this video to their friend or post it in their Facebook page. When Vissan uses this strategy it will help: 

Saving a lot of money.



Capture attention of customers easily.



Raise awareness of customers about Vissan quickly



Moreover, it is very easy to measure the result of this strategy which is controlling the number of views of this video.


Page 27

Marketing Principle IX. 4P

Action Plan Task

Logo imprinted

New ingredients Product

Providing hot-line service Maintaining current brand reputation Product line-pricing

Price

Place

Creating product pack of different kinds or the same kind of product for the Product Bundle Pricing strategy

Departments

May

Jun

Jul

Aug

Sep

R&D Manufacture Finance Marketing R&D Purchasing Manufacture IT R&D Management Marketing PR Manufacture Management R&D Marketing R&D Finance Manufacture Finance

Oct

Nov

Dec

Jan

Feb

Mar

Apr

Cost (est in VND) 5,400,000,000

4,250,000,000

200,000,000 7,500,000,000

6,300,000,000

Discount when order online

IT Finance Marketing

550,000,000

Discount for wholesalers

Finance Marketing

2,500,000,000

Creating, maintaining and keeping the website up to date with the latest and current price

Marketing IT Management

750,000,000


Page 28

Marketing Principle Construct a team for delivery with the sufficient means of transportation Advertising on Zing Mp3

R&D Marketing Finance Management Marketing Finance

8,300,000,000

4,500,000,000

Advertising on Vn Express

5,700,000,000

Advertising on VTV3 Advertising on Tiep Thi va Gia Dinh magazine Sponsors for Events of Operation Smile

4,200,000,000 2,500,000,000

Promotion

Material Written

Public Service Activities

Top Management Marketing Finance PR IT PR Marketing Top Management Finance PR

2,000,000,000

Free

1,000,000,000

Marketing Principle Construct a team for delivery with the sufficient means of transportation Advertising on Zing Mp3

R&D Marketing Finance Management Marketing Finance

8,300,000,000

4,500,000,000

Advertising on Vn Express

5,700,000,000

Advertising on VTV3 Advertising on Tiep Thi va Gia Dinh magazine Sponsors for Events of Operation Smile

4,200,000,000 2,500,000,000

Promotion

Material Written

Public Service Activities

Coupon Sweepstakes Viral Marketing and sending e-mail

Top Management Marketing Finance PR IT PR Marketing Top Management Finance PR Marketing Finance Marketing IT Marketing

2,000,000,000

Free

1,000,000,000

1,500,000,000 930,000,000 500,000,000


Page 29

Marketing Principle

X.

Control Goals

Measured Performance

Evaluate

Corrective Action

Performance

Increase from 2,334

Sales

89% success

-Provide for customers a

billion VND to 3,000

wider range of choices by

billion VND between May

launching new flavors,

2013 and April 2014.

new ingredients together with new cover. -Discount for customer buy in bulk.

Marketing Principle

X.

Control Goals

Measured Performance

Evaluate

Corrective Action

Performance

Increase from 2,334

Sales

89% success

-Provide for customers a

billion VND to 3,000

wider range of choices by

billion VND between May

launching new flavors,

2013 and April 2014.

new ingredients together with new cover. -Discount for customer

Profit

Increase from 55 billion

buy in bulk.

VND to 70 billion VND

-Increasing promotion to

between May 2013 and

attract and inform

April 2014

customer about new product.

-Market share value

92% success

-Expand distribution

increases from 29.62% to

intensively by delivering

32% between May 2013

the products to

and April 2014

supermarkets and local convenience stores,

Market Share

taking online order to receive discount. -Increasing advertising means Healthy brand Improving Image

83% success

-PR, Advertising on food and cuisine magazine. -Launching a campaign to promote the family and friendly image.


Page 30

Marketing Principle XI.

References 

Central Intelligence Agency 2013, The World Factbook: Vietnam’s Geography, Central Intelligence Agency, viewed 25 March 2013,



Central Intelligence Agency 2013, The World Factbook : Vietnam’s Population Pyramid, Central Intelligence Agency, viewed 25 March 2013,



Dexter, A 2010, “The Shifting Landscape of Consumerism in Vietnam”, TNS , nd, viewed 23 March 2013, < http://www.austrade.gov.au/ArticleDocuments/2816/VietnamSeminar-2010-TNS-Presentation.pdf.aspx>



Euromonitor International 2012, Consumer lifestyles in Vietnam, Euromonitor International, 07 November, viewed 12 March 2013, < http://www.portal.euromonitor.com.ezproxy.lib.rmit.edu.au/Portal/Pages/Analysis/Analy sisPage.aspx>



Euromonitor International 2013, Canned/preserved food in Vietnam, Euromonitor International, 08 March, viewed 23 March 2013, < http://www.portal.euromonitor.com.ezproxy.lib.rmit.edu.au/Portal/Pages/Analysis/Analy sisPage.aspx>



Euromonitor International 2013, Packaged Food in Vietnam, Euromonitor International, 14 March, viewed 22 March 2013, < http://www.portal.euromonitor.com.ezproxy.lib.rmit.edu.au/Portal/Pages/Analysis/Analy sisPage.aspx>



Euromonitor International 2013, Vissan Co Ltd in Packaged Food (Vietnam), Euromonitor International, 14 March, 19 March 2013, < http://www.portal.euromonitor.com.ezproxy.lib.rmit.edu.au/Portal/Pages/Analysis/Analy sisPage.aspx>



Ha Long Canfoco 2013, “Introduction”, nd, viewed 23 March 2013, < http://www.canfoco.com.vn/en/gioithieu.html>



Kotler, P, Amstrong, G, Ang, SH, Leong, SM,Tan, CT & Hon-Ming OY, 2009, Priniples th

of Marketing: A Goal Perspective, 12 Vissan Marketing Plan – RMIT University

edn, Pearson, Singapore. Page 31


Matthaes, R 2012, “Recession & Growth Opportunity”, American Cha mber of Commerce in Vietnam,10 October, viewed 24 March 2013,



Marketing Vietnan 2012, “Tap Chi Tiep Thi va Gia Dinh”, viewed 22 March2013,



Nielsen 2011, “Vietnamese Shoppers are the Most Prolific Promotion-seekers in Asia Pacific”, Nielsen, 5 July, viewed March 2013,



Nielsen 2012, „2012 Vietnam Pocket Book‟, Nielsen, 2012, viewed 26 March,



Ohmy News 2005, “Vietnam's Free Press Thrives Online”, 10 May, viewed 21 March 2013,



Tuyen Ky Food Co Ldt 2013, “Profile”, nd, viewed 24 March 2013, < http://www.tuyenkyco.com/Default.aspx?TabId=0d0cb5b8-3294-44bb-a3298c1226250734>



US Global Health Policy 2012, „Urban Population (Percent of Total Population living in Urban Areas‟, Kaiser Family Foundation, viewed 5 April 2013,



Viet Film 2009, “ The most favourtite channel in Vietnam”, nd, viewed 20 March 2013,



Vissan Limited Company 2009, “INTRODUCTION OF VISSAN LIMITED COMPANY”, nd, viewed 23 March 2013, < http://www.vissan.com.vn/en/aboutus.php>



Zing 2012, “Zing solution”, 07 January, viewed 24 March 2013


Page 32

Marketing Principle XII. Appendixes 1.Vietnamese population

Figure 1: Adapted from Nielsen (2010)

2.Vissan product life cycle

Figure 2: Vissan‟s Product Life Cycle


Page 33

Maketing Plan Vissan Canned Food

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