MARKETING STRATEGY FOR FROSTY FEATHER SUGAR FREE ICE CREAM IN HCMC

HO CHI MINH CITY UNIVERSITY OF FOREIGN LANGUAGES - INFORMATION TECHNOLOGY FACULTY OF INTERNATIONAL BUSINESS ADMINISTRATION ---***---MARKETING FINAL PROJECT Major: Basic Marketing MARKET

HO CHI MINH CITY UNIVERSITY OF FOREIGN LANGUAGES -

INFORMATION TECHNOLOGY

FACULTY OF INTERNATIONAL BUSINESS ADMINISTRATION

-*** -MARKETING FINAL PROJECT

Major: Basic Marketing

MARKETING STRATEGY FOR FROSTY FEATHER SUGAR-FREE ICE CREAM

IN HCMC

Group’s Name: Gỏi Cuốn Member: Nguyễn Duy Khang – 17DH491457

Nguyễn Phúc Hiền – 17DH491457 Trần Thị Thúy Nhi – 17DH491066 Course: 2017 – 2021

Ho Chi Minh City, June /2021

Table of Contents

1 Executive Summary (International/Global Marketing Imperative) 3

1.1 Overview automotive industry present in the world 4

1.2 Overview automotive industry in Vietnam 4

2 Present Marketing Situation: The company performance & a rational for your country chosen 5

2.1 The company performance 6

2.2 Distribution 7

2.3 Rational for Vietnam 7

3 International marketing macro environment (PESTLE Model) 8

3.1 Political 8

3.2 Economic 9

3.3 Social/Cultural 10

3.4 Technology 10

3.5 Legal 11

3.6 Environment 11

4 International marketing microenvironment (Competition, Suppliers, Customers) 12

4.1 Competition 12

4.2 Supplies 13

4.3 Customers 13

5 SWOT Analysis 13

5.1 Strengths 13

5.2 Weaknesses 14

5.3 Opportunities 14

5.4 Threats 14

6 International strategic planning of STP 15

6.1 Segmentation 15

6.2 Target 16

6.3 Position 17

7 The entrance strategy (market entry strategy/penetration) 17

8 Marketing strategy concepts (Adaptation/Standardization/Adapted standardization) 18 8.1 Product – Standardization 19

8.2 Price – Adaptation 19

8.3 Place – Standardization 19

8.4 Promotion/ Communication – Standardization 20

9 The International marketing objectives 20

10 Recommending international marketing strategy solution (4-7Ps) 21

10.1 Product 21

10.2 Price 22

10.3 Place 22

10.4 Promotion/Communication 22

11 Action plan & others 23

12 Wrapup 25

13 Reference 26

Ice cream is a famous summertime pleasure among young people People's lifestyleshave improved, and their need for self-satisfaction has risen dramatically Ice cream isnow more than just a refreshing refreshment; it's also more delicious, with a wide range

of flavors, and more acceptable for each consumer Ice cream is currently diverse, withnumerous brands such as Celano, Monte Rosa, and Wall's, which young people acceptand enjoy, so why not try something completely new? Frosty Feather ice cream

In general, for ice cream, although many people love to eat ice cream, there arequite a few options on the market that are segmented based on taste and price Someindividuals prefer high-quality ice cream made with natural ingredients that give a greattaste In contrast, many others cannot tell the difference in product quality, and hencethey will make a purchasing decision Products are based solely on the price andavailability of ice cream Currently, there are countless large and small ice cream shopsattacking the mass market and several separate small segments that match their image onthe Vietnamese market However, there has never been a so-called "luxury" ice creambrand that has the experience and resources to satisfy the thirst and taste of consumers

II.

According to Euromonitor International, ice cream sales are expected to reach VND3,793 billion in 2020, increasing 6,5% over the previous year When the preceding years'growth rates were all in the double digits, this one fell dramatically To-go ice cream (toeat on the street) contributed the most, accounting for 70 percent of the total with 2,686billion VND

Due to social distancing measures such as closing schools, entertainment venues,food services, and consumers working from home, the Covid-19 pandemic had adetrimental impact on-to-go ice cream consumption In comparison to the previous year,sales of this ice cream product climbed by only 4.6%

Take-home ice cream (ice cream goods that may be taken at home and enjoyed demand, ice cream in the shape of plastic or paper boxes holding ice cream) is consumed,and the price is lower, resulting in a rise of 11.3% in sales.

on-According to the survey, customers increasingly need ice cream to help them copewith worry and tension caused by spending too much time at home with no opportunities

to socialize

The ice cream market in Vietnam is still dominated by three major corporations:Kido Group, Unilever Vietnam, and Vinamilk These three units now have a marketshare of 64 percent, up from 58.8% in 2016

According to Euromonitor International's market research department, Kido Group'sice cream market share increased from 43.1 percent in 2019 to 43.5 percent in 2020,while Unilever's market share in Vietnam increased from 10.6% to 11.1 percent.Vinamilk's concentration dropped from 9.2 percent to 9.1 percent

1/ Marketing objective

Increase consumption: Due to the complicated development of the Covid-19epidemic, everyone has to apply directive 16 to stay at home, so the demand for Food isincreased, in addition to Food for daily consumption As a result, desserts or snacks aremore necessary Nowadays, everyone is focusing on healthy eating, so it is possible toaccess healthy products Frosty Feather sugar-free ice cream will help limit the amount ofsugar in the body, can be used by all ages, especially those who are losing weight orthose who are concerned about their health

Increase market penetration: to attract customers' interest in new products such asFrosty Feather, Frosty Feather will have stores in Trade Centers to make it easier to reachcustomers Besides, we will distribute products to convenience stores such as Circle K,Family Mart, or supermarkets such as CoopMart and Emart Then we conduct productpromotion campaigns to approach closer to customers, followed by conducting trials forcustomers to try products at supermarkets and applying for more seasonal promotions

Increase use-value: by encouraging consumers to pay higher prices for products thathave new functionality or are positioned in a higher position Frosty Feather is committed

to ensuring product quality from natural ingredients without chemicals and the bestservice before reaching customers Frosty Feather will apply sales on many differentplatforms, from direct sales at counters to online sales through partners such as ShopeeFood, Grab Food, or Gojek in a short time to choose the right product according to theirneeds

Increase consumer loyalty: convincing customers of the irreplaceable strengths ofthe product and programs and incentives for loyal customers Frosty Feather usesenvironmentally friendly product packaging materials, which can be recycled or reusedfor other purposes Besides, we still uphold that the health factor of the ice cream doesnot use chemical sugar and safe production technology We apply Membership programs(discount 5-10% of total bill) or accumulate gifts (10 stamps can be exchanged for onevaluable contribution) at the stores and apply the program buy two get one free small-sizeice cream for convenience stores or supermarkets

2/ Marketing strategy

Product

Frosty Feather will have many flavors for customers to choose from according totheir preferences We only use flavors made from fruit, do not contain preservatives orchemical sugars, ensuring safety for users Besides, the highlight of Frosty Feather is that

it does not add sugar to the main ingredient of the ice cream

Our menu will include ice cream flavors suitable for the Vietnamese market madefrom natural flavors such as:

Additional toppings will include bananas, strawberries, choco chips, almonds,walnuts, desiccated coconut, oats, and more.

At the stalls in the shopping mall, we will sell ice cream scoops; customers can mixdifferent types of ice cream to experience a variety of flavors and toppings to enhance theexperience of the client's Frosty Feather

Regarding product packaging, we only use environmentally friendly materials,which can be recycled or reused We divide ice cream products into two main types:450ml and 900ml boxes In addition, customers' goods purchased at the store will beexperienced at a more favourable price (71g scoop)

The ingredients in our Frosty Feather ice cream will include:

In terms of services, we will provide shipping bags to keep the heat for shipperswhen delivering through online ordering apps, only delivering within 30 minutes-1 hour,ensuring the ice cream still retains its quality and is not damaged melt duringtransportation.

Price

Frosty Feather ice cream is a new product with natural flavors made from naturalfruit ingredients and does not use chemicals affecting health, so its price will be higherthan regular ice cream We have to do research prices to get competitive prices that arenot too expensive compared to brands of the same type but still do not suffer losses, and

at the same time ensure a suitable price for customers to use

Price for each product (maybe change from time to time):

On the commercial side, we will rent stores where customers can see, maybe near

escalators, elevators, increasing customers' curiosity for new brands like Frosty Feather

Process

Customers will see the process from the time we prepare the ice cream, get the icecream, decorate, and pack until the finished product is delivered for customers at thestores This will increase transparency, allowing customers to feel more secure aboutfood safety and the quality of Frosty Feather products.

Customers will first order our products through the Shopee Food or GrabFood appregarding the online ordering process through intermediary apps Then the shipper willreceive the order and go to our booths at the mall to receive the order We will confirmwith the customer again to ensure the exact product the customer ordered is correct, orthe customer can change his mind to another ice cream flavor We will prepare ice creamand put it in the shipper's thermal bag If the shipper does not have a thermal bag, we willprovide it to them and guarantee to deliver within 30 minutes-1 hour within a radius of10km To best serve customers, we will have electronic payment gateways for customers

to have many choices in payment such as Momo, VNPay or pay by cash collection

People

To serve the needs of our customers as best as possible, we must train our staff to

be friendly and whom customers can trust

Employees are recruited quite strictly and are well trained from professionalknowledge and skills to dedicated service The staff from sales to customer care mustenthusiastically introduce products and make customers understand that their products aresafe, healthy, and safe to use, which can satisfy customers' needs goods in the bestpossible way

old and new customers such as member day, customer gratitude, directly hitting products such as buy 2 get one free promotion, accumulate points for the gift exchange.

Physical Evidence

This is a factor affecting customer satisfaction Every business wants to bring thebest practical experience to its customers Therefore, we always want to attract customers'attention through the booths arranged in the supermarket, and the store in the trade centerfrom the product layout to the activities at the store must be eye-catching, ensure hygiene

to make customers feel comfortable, and give customers the most enjoyable and safeproduct experience possible Coming to Frosty Feather, customers will experience theconvenience, free wifi, spacious and relaxed space, along with many other utilities thatare hard to compare with anywhere else

3/ SWOT analysis

Strengths

- Good product quality, meeting international standards

- Products are diverse and rich in flavor

- It is a product extracted from natural ingredients, safe for health

- revents obesity problems, boosts the immune system, contains vitamins, andreverses the risk of high blood pressure because the natural amount of calcium in icecream can regulate and stabilize blood pressure, so it's good for health

- Service style of professional staff, dedicated and attentive customer care team

Weaknesses

- Because it is a new product to the market, so it has not yet gained trust from

customers, customers will doubt the safety of Frosty Feather ice cream

- We currently have traditional flavors and have not created many new flavors to stimulate customers' tastes

- Higher cost than regular ice cream products.

- We have to face big rivals like Vinamilk, Kido

Opportunities

- Accessible to a group of customers who care about their health and aesthetics

- Market demand increased after the crisis because of the COVID-19 pandemic

- Currently, there are few competitors in sugar-free ice cream that compete with us

When there is a need, consumers will choose products through some ways: personal experience (liked brands), from groups (friends invite each other to try), from marketing activities (advertising, marketing from brands In addition, ice cream is a variety-seeking item, so any ice cream label that attracts more attention to consumers is accepted The primary audience of ice cream is young people:

- Although the personal income is not high, it is entirely provided by the family, or active young people always have their ways of earning income from part-time work.

- Desire to present themselves as a young and dynamic person

- As life develops, people are increasingly concerned about their health, so they arewilling to pay for branded products to ensure their health and safety, especially in thefood industry

=> Young customers now tend to choose ice cream products of famous brands to ensurefood safety and express their style, accept a higher price to satisfy their needs your needsthen choosing a cheap cream of an unknown, unsafe brand

- Income: The poor, according to researchers' estimates and international standards

(Source: World Bank), will account for 40% of Vietnam's population (30% inHCMC), 50% on average (60% in Ho Chi Minh City) and the rich can afford to

spend on luxury only 10% or even less out of the 9 million population in HCMC.

In the middle-income segment, 20% of the near-poor people barely meet theirbasic needs, 50% have enough for basic needs and save quite a bit, while theremaining 30% have a small amount of money, good savings for additional needs

So we will focus mainly on people with average income and above

- Age: In the Vietnam market, Frosty Feather's target is 17-25 years old Those arethe people who are the most responsive to fashion and technology trends with betterknowledge of foreign brands Unlike other Western countries, in Vietnam, if the families

of those consumers are well off, then they, as descendants, can also enjoy that wealth bybeing their parents They will also spend more time in cafes and will be more easilypersuaded to experiment with flavors

The age group, 36-45, can also be attractive to Frosty Feather as it is the mostsuccessful and affluent consumer group; they have a mature career and chance totravel abroad and more free time to enjoy their life

- Gender: Frosty Feather's target segment is mainly female consumers and male consumers

- The second segment has a moderate knowledge of what is good for them but isnot too focused on it Therefore, not willing to pay too much or spend too much time andeffort searching for healthy products This segment is also overgrowing and accounts forabout 45% of the market

- The last segment either does not have enough knowledge and awareness about

a healthy lifestyle or cannot afford to pursue it; therefore, they do not care about thehealth aspect This segment has a relatively large market share (about 40%) but isdecreasing

We will target a group of customers who have the habit of caring about their health.They will know that Frosty Feather contains ingredients that bring safety and health totheir health In addition, we will reach out to a group of customers who are lessconcerned about their health by explaining or giving the factors that Frost Feather brings

to their health

Behavioural

*Purchasing behavior:

Purchasing behavior can be divided into four main categories :

- Complex: Customers are heavily involved in the purchasing and decision-makingprocesses, and there is considerable variation between the brands they consider They willcompare product ingredients or packaging between multiple products

- Variety-seeking: When customers don't pay much attention to the purchase, theycan try using new products compared to the product they are using If the new productsuits them, they will stick around for a long time with them.

- Dissonance-reducing: When customers make their purchasing decisions, however,there is not much difference between similar products They may make purchasingdecisions based on the price rather than the quality of the product

- Habitual: When customers are not heavily involved in a purchase, the productoffered doesn't vary much between brands and is mostly just personal preference; theywill randomly choose a product

*Occasion or timing

Frosty Feather can also segment the market based on the different times thatconsumers may choose to use the product These different occasions can be calleddifferent festivals celebrated in Vietnam For example, on Valentine's Day, wedecorate ice cream mainly with pink or chocolate to add romance for couples or 2-for-1 programs

- Prospective customers: We will target the group of customers who have their ownhealth care needs Use Facebook Ads to target users with needs, interests, food and healthreview groups

- First-time customers: Those who have health needs but are confused betweensugar-free products Therefore, Frosty Feather will have the opportunity to help thembetter understand the product's features through consulting and exchanging information tomake sure customers will know the benefits that Frosty Feather brings

15

- Regular customers: Introduce more promotions, additional services that Frosty Feather has to increase customer trust and loyalty.

- Rejected customers: For old customers who have left to use our competitors, wewill further improve our products and services to make them come back to our

brand, for them to know that the problem that caused them to leave has been fixed

-Loyalty

Customer's trust goes hand in hand with purchasing behavior if the product meetssafety criteria and ensures users' health It's essential to segment by customer loyaltybecause these people generate the most revenue, cost less to maintain than acquiring newcustomers, and have the highest lifetime value So you have to maximize their value andfind more customers just like them

To retain customers, we need to offer many best quality health products tounderstand and feel secure when using the products and many promotions to attractpotential customers and new customers

Differentiation & Positioning

a/ Differentiation

The difference of Frosty Feather products is in premium quality with luxurious texturesand flavors, high end, delicate by using only the freshest and finest ingredients Wepromote the pure authenticity of our products by emphasizing that Frosty Feather will notcontain sugar Furthermore, unlike other mass-produced brands, Frosty Feather uses noartificial flavours, colors, emulsifiers or stabilizers; instead, we look for naturalalternatives However, better can benefit customers

The primary service differentiation at Frosty Feather is through our mall stores AllFrosty Feather stores in Ho Chi Minh City are staffed with highly trained staff whoseprimary concern is to keep customers comfortable in a cozy space and enjoy theirfavorite foods scrumptious ice cream The staff must always wear perfect uniforms, greet