FINAL REPORT Topic THE INTERNATIONAL MARKETING PLAN OF ONE ONE 07/2022 Class 1771 Semester 2133 Lecturer Mr Jorge Martínez Student Group One One No Full Name Student ID 1 Phan Thanh Trường 22000257 2[.]
COMPANY & MARKET
Company
One One Vietnam Food Joint Stock Company, widely known as One One Rice Cake Company, has been a leading producer since 2007 Committed to innovation, the company continually upgrades its manufacturing processes with modern, high-quality technology Renowned for its dedication to quality, One One rice cakes have become a trusted and familiar product in Vietnamese households.
Vision: The company will create and serve Vietnamese consumers products to meet your requirements and relieve your health, food safety and financial concerns
Mission: “Healthy food, good body”
With over a decade of establishment and development, Quality has always been the fundamental foundation of all products One One has earned consumer trust through its diverse and innovative product offerings, including flavors such as grilled beef rice cakes, lightly sweet rice cakes, corn cheese rice cakes, yellow corn cheese rice cakes, corn milk-flavored rice cakes, grilled octopus seaweed rice cakes, grilled shrimp rice cakes, and Japanese soy sauce flavored rice cakes.
Figure 1.1: One One's rice cracker product line
One One proudly manufactures rice cakes not only for the domestic market but also for international export As of 2020, One One rice cakes have successfully reached customers in countries including Japan and Bhutan, showcasing their global presence.
Currently, One One operates on 2 main media: Facebook fan page (Bánh Gạo One One) and website (https://banhgaooneone.com/)
Figure 1.2: Fanpage of One One
Figure 1.3: Website of One One
One One rice cake is made from carefully selected Japanese Japonica rice grains, ensuring high quality and delicious flavor The production process is free from artificial colorants and preservatives, making it a natural choice Additionally, the rice cakes are not fried in oil and contain no cholesterol, promoting a healthier snack option Suitable for all users, One One rice cake offers a safe and tasty option for health-conscious consumers.
Besides, the company also received many prestigious certificates such as: ISO 22000: 20005 certification, Certificate of food hygiene and safety certified by Hung Yen Department of Industry and Trade,
Market / Competitors
Vietnam, a leading rice-producing country, offers a diverse range of rice-based products such as rice paper, pho, and rice vermicelli, showcasing its rich culinary tradition In the FMCG industry, Vietnamese businesses leverage this abundant domestic resource by incorporating rice as a key ingredient in various processed foods Among these, rice crackers stand out as one of the most popular and widely consumed products, highlighting the country's expertise in rice-based food manufacturing.
Rice crackers are a popular Japanese baked snack made primarily from rice, known for their savory flavor In Vietnam, these snacks are widely available at grocery stores, convenience stores, and supermarkets, ensuring easy accessibility for all customers Their affordable price point makes rice crackers an appealing snack option for a diverse range of consumers.
Rice cracker products are classified as Savory Snacks, a segment valued at $749.2 million in 2020 according to Global Data The market is projected to grow by over 8% between 2021 and 2025, indicating strong demand and expanding consumer interest in these flavorful, healthier snack options.
Vietnam actively exports this product to numerous countries beyond its domestic market, with a 2021 export value estimated at $196.83 million USD, accounting for 0.7% of global exports and ranking 27th worldwide The country's top five importing markets for this product are the USA, Japan, South Korea, the United Kingdom, and France, highlighting Vietnam's significant presence in the international trade of this industry.
Figure 1.4: Data for the export market of this product from Vietnam Source:
Prominent domestic snack brands include Richy Rice Crackers by Hoang Mai Trading and Production Co., Ltd, An Crackers from Orion Korea, and One One, owned by One One Food Joint Stock Company Vietnam.
Ichi Japanese Rice Crackers, exclusive to Thien Ha Kameda Joint Stock Company—a partnership between Vietnamese Thien Ha Corp and Japan's Kameda Seika Co., Ltd.—offers a wide variety of designs and flavors to cater to diverse consumer preferences Each brand within this product line holds a significant share in the domestic market, reflecting their popularity and quality Additionally, several of these brands are recognized as major players in the international market, successfully expanding their presence globally.
Figure 1.5: Outstanding companies and their products in the Vietnamese rice crackers market
1.2.2 Industry of Rice Cracker in the World
The global Rice Cracker market is geographically segmented into Korea, Japan, Southeast Asia, and North America In 2019, the market was valued at approximately US$6,000.8 million and is projected to reach US$7,601.1 million by the end of 2026 This growth is driven by a Compound Annual Growth Rate (CAGR) of 3.0% during 2021-2026, reflecting increasing consumer demand and expanding regional markets (360 Research Report).
2021) In 2021, the world imported US $27,536,220 thousand of this type of product, with the USA, the UK, Germany, Canada and France being the top five importers on the list
The international market share of this product is held by several companies and is demonstrated as below:
Figure 1.6: International Market Share of Rice Crackers by Companies Chart
1.2.3 Potential new products in the Sector
In the FMCG industry, continuous new product launches are essential due to industry dynamics, requiring companies to regularly introduce innovative products or enhance existing offerings to stay competitive.
In the highly saturated FMCG industry, customer loyalty tends to be low due to minimal differences among similar products across various brands To stand out and retain customers, companies must continuously innovate and modify their products, encouraging repeated purchases and enhancing brand loyalty.
To meet evolving consumer demands, our rice cracker products must be adaptable and flexible By developing new forms, flavors, and packaging options—such as smaller bites, larger servings, or region-specific flavors—we can better cater to diverse tastes and preferences Additionally, adjusting ingredients and seasonings to suit target audiences like vegans or dieters enhances product appeal These innovation opportunities increase our competitiveness in the market, making it easier to stand out against rivals.
SELECTION OF MARKET (CHINA OR KOREA)
General criteria for selection (MACRO: PEST)
2.1.1 Economic Situation (20%) (CHINA 75/ KOREA 70) a Total Import
China: The total value imported from China (2021) is 2,438,686,293 (USD thousand) China's imports represent 11.1% of world imports for this product, its ranking in world imports is 2 (Trademap, 2022)
Figure 2.1: The total value imported from China (2021)
Korea: The total value imported of Korea (2021) is 615,034,495 (USD thousand) The imports represent 2.8% of world imports for this product, its ranking in world imports is 9 (Trade Map, 2022)
Figure 2.2: The total value imported of Korea (2021) b Tariffs 1 (7%)
• Korea’s Tariffs: 8% c GDP per capita (2021) (10%)
• China’s GDP per capita: 10,511 US$
• South Korea’s GDP per capita: 31,638 US$ d Inflation (5%)
In 2021, China's average annual inflation rate was approximately 0.85%, indicating moderate price increases compared to the previous year (Economy & Politics, 2020) Meanwhile, South Korea experienced a higher inflation rate of around 2.5% during the same period, reflecting more significant price adjustments (Economy & Politics, 2020) Additionally, South Korea maintained a low unemployment rate of 3%, highlighting a relatively healthy labor market.
In 2021, the rate of registered unemployment in urban areas of China was estimated at approximately 3.96 percent South Korea stood at about 3.7 percent, a decrease from the previous year (statista, 2022)
1 http://tao.wto.org/default.aspx
2.1.2 Political situation, Safety (15%) (CHINA 80/ KOREA 100)
China’s Political Risk: Leadership succession in focus: The Chinese
Communist Party (CCP) will hold its 20th National Congress in late 2022
Korea’s Political Risk: South Korea’s business climate ranked fifth out of
190 economies on the World Bank’s ease of doing business gauge In other words, a very safe market for doing business
• BUSINESS CLIMATE ASSESSMENT: A1 (Coface For Trade, 2022)
Figure 2.3: Compare Political Risk between China and Korea
The family is regarded as one of the most important institutions in China Many people find a sense of identity and a solid support system in their families
In China, Confucian philosophy is mostly used to understand the family According to Confucian philosophy, the family is the center of all social
| 16 institutions and encompasses all of an individual's most significant ties (Culturalatlas, 2022)
Korean traditional families are deeply rooted in Confucian ideology, emphasizing family harmony and loyalty above individual desires In traditional Korea, family life was patriarchal, with loyalty to the family taking precedence over personal fulfillment or self-expression The family operated as a unified entity within a collectivist society, where each member was expected to uphold the family's honor and reflect positively on their collective identity.
In China, after dropping the one-child policy into the population in 2015, China gradually raised the birth rates (indexmundi, 2020)
Figure 2.4: Population pyramid of China Source: CIA World Factbook
In Korea, working age population will be less than 60% of total population at year 2036 The elderly population will account for 42.14% of South Korea's population in 2066 (indexmundi, 2020)
Figure 2.5: Population pyramid of Korea Source: CIA World Factbook
Specific criteria about selection (MICRO)
2.2.1 Imports of Rice Crackers (20%) (China 70 /Korea 90)
In 2021, China imported approximately US $459 million worth of rice crackers and related products, accounting for 2% of global imports The average import value per unit was about US $10,013, reflecting the high-quality standards of these products China’s top five sourcing countries are Hong Kong, Japan, South Korea, Thailand, and Taipei, with Vietnam ranking tenth, contributing 1.6% to China’s total rice cracker imports This data highlights China's significant demand for rice crackers and the key international suppliers meeting this market need.
Figure 2.6: China imports data for the product Source: TradeMap.org
In 2021, South Korea imported goods valued at approximately US $278.5 million in this product category, accounting for 1% of global imports The average value per imported unit was $4,445, reflecting significant market activity South Korea's top import sources for these products were the United States, Malaysia, China, France, and Vietnam, highlighting diverse international trading partnerships.
Figure 2.7: South Korea imports data for the product Source: TradeMap.org
China: The growth in imported value of China rose 9% during the 5-year period from 2017 to 2021 However, their imported quantity dropped by 1%
Korea: Korea did not see any growth (0%) in the imported value during the same time period (2017-2021) Their imported quantity also dropped by 1%
2.2.3 Size of the Market (10%) (China 70 /Korea 90)
In 2019, China’s retail sales of rice crackers and rice snacks reached approximately 64.5 billion yuan (around US $9.63 billion), highlighting a significant market presence The packaged rice snacks industry in China shows strong growth potential, with projections indicating a market expansion of USD 413.89 million between 2021 and 2025 This sector is expected to experience an accelerated growth rate, with a compound annual growth rate (CAGR) of 4.03%, signaling robust opportunities for market players. -**Sponsor**Need help rewriting your article on the Chinese rice snack market? [Soku AI](https://pollinations.ai/redirect-nexad/qQYY0yCR?user_id=983577) can assist! With estimated retail sales reaching 64.5 billion yuan in 2019, the Chinese rice snack market shows significant potential Experts predict growth of USD 413.89 million between 2021-2025, accelerating at a CAGR of 4.03% Let Soku AI, trained by advertising specialists and performance marketing experts, help you optimize your content and ensure SEO compliance.
South Korea, the fourth-largest economy in Asia and the twelfth globally as of 2019, has a dominant food industry that accounts for over one-third of its retail market, valued at approximately 163 trillion South Korean won (around US$123.8 billion) The snack food segment alone generated US$4.58 billion in revenue in 2022 and is projected to grow at a CAGR of 7.20% from 2022 to 2027 On average, consumers in South Korea are expected to consume 7.4kg of snack foods per person in 2022 This segment encompasses a wide range of products, including sweet, savory, and salty snacks such as potato chips, cookies, crackers, tortilla chips, flips, and pretzels, reflecting the diverse preferences within the market.
China represents a vast market due to its large population and significant economic scale, making it highly attractive for businesses seeking expansion However, entering this market requires competing with established local and international brands that are already highly successful Notably, Chinese rice cracker brands like Want Want (Want Want China Holdings Ltd.) have achieved international recognition as one of the world's largest manufacturers of rice crackers and flavored drinks In addition to prominent brands, the country boasts developed manufacturing capabilities that support both domestic and international market penetration.
The 21 industry in China enables numerous small brands to produce their own rice crackers, resulting in intense market competition To stand out and achieve success, companies like One One must invest heavily in product development, marketing, and other key areas Such strategic investments are essential for creating a strong competitive advantage and driving profitable growth in this crowded market.
Figure 2.8: Products from Want Want - one of the largest rice crackers manufacturers in the world
The South Korean snack food market is predominantly controlled by a few major industrial conglomerates, each operated and managed by individual families or business leaders These dominant players play a significant role in shaping the country's snack industry, highlighting the concentrated nature of the market.
Major South Korean food conglomerates, or chaebols, such as Hatai, Nong Shim, Lotte, and Crown, dominate the market by controlling up to 85%, establishing extensive distribution networks and popular brands nationwide This dominance makes it difficult for international brands to capture significant market share Historically, Korean consumers have been hesitant to purchase imported foods, believing that it negatively impacts the nation's economy However, increasing consumer demand for higher-quality and diverse food options is gradually leading to greater acceptance of international products in South Korea.
Figure 2.9: Some of Korea’s Chaebols in the food industry ( left to right: Haitai,
Table 2.1: Comparison between China and Korea
MARKET REPORT AND STP OF KOREA
MACRO: PEST
Political: After Vietnam and Korea signed the Trade Agreement freedom Vietnam - Korea Vietnam (VKFTA), this country will have certain preferences in law for goods imported from Vietnam
Economic: Korea is one of the largest import markets for agricultural products and processed foods in the world In the past, Korean consumers were
Vietnam has shifted its food preferences from meat-related products to seafood, rice, and cereals, emphasizing the use of natural, unused ingredients and avoiding genetically modified foods and chemicals Additionally, Vietnam and Korea have strengthened their economic ties through numerous agreements, including non-refundable and technical cooperation initiated in April 2005 Notably, the signing of the Vietnam-Korea Free Trade Agreement (VKFTA) at the end of 2015 has further deepened bilateral trade relations and economic collaboration between the two countries.
Korea has a large population of approximately 51.247 million people Due to political, social, and economic instability in recent years, many Koreans have migrated to Canada and the United States in search of better opportunities Despite periods of stability, Korean society remains characterized by strict age-based hierarchies that emphasize respect for family and cultural traditions.
South Korea is a country with a strong science and technology background, showcasing highly developed technological infrastructure and significant investment in innovation This technological advancement has been a key driver of Korea’s economic growth and global competitiveness Due to Korea’s advanced technology, Vietnamese enterprises operating in the Korean international business environment may face challenges in keeping up with the pace of innovation However, these challenges also present opportunities for Vietnamese companies to develop and improve their technological capabilities to compete effectively in the Korean market.
MICRO
Some of One One’s direct competitors along with samples of their products are demonstrated in the table below:
South Korea's rapidly developing economy has significantly contributed to the growth and expanding size of its market Between 1995 and 2000, average salaries increased swiftly, reflecting rising income levels During the 1980s and early 1990s, this economic growth enabled South Koreans to spend more on luxury items, including snack foods, fueling consumer demand and market expansion.
| 25 the economy as a whole has grown rapidly, with a 96 percent increase in GDP between 1991 and 1995 to reach US $566,6 billion
In South Korea, households allocate approximately 13.8% of their consumption expenditure to "Food and non-alcoholic beverages" (OECD Stats, 2017) Korean consumers are highly educated, with a literacy rate of 98%, making them “smart shoppers” who prioritize product quality, nutrition, and food safety They pay close attention to shelf life dates, often choosing items with longer freshness, and tend to avoid processed foods containing excessive additives Additionally, imported products are highly valued for perceived higher quality and are typically purchased at a premium price.
STP: Segmentation, Targeting and Positioning
1 Satisfy customers' need for snacks (all ages)
2 Socializing (friends & family meetings, parties, )
5 Quick & Convenient meal (Outdoor activities - picnic/camping, work, school, )
➢ Satisfy customers' need for snacks (all ages)
MARKETING MIX ADAPTATION
Product
When entering the Korean market, One One's products should first be localized by translating all content into Korean Additionally, they need to adapt the ingredients to suit Korean tastes by enhancing rice quality and introducing popular flavors such as BBQ, blue cheese, kimchi, tteokbokki, and spicy chili These flavor adjustments will help One One better connect with Korean consumers and boost market acceptance.
Figure 4.1: New flavors: BBQ, spicy
Price
Exported products are always higher than domestic ones, however, One
One is always targeted at families and young people, so the eldest daughter is very suitable for all walks of life When products are put into supermarkets,
| 27 convenience stores always have the most suitable price according to the average income of people in Korea compared to quality and safety
Table 4.1: Cost of Exporting 1 Container of One One Crackers
Place
One One's distribution channels will primarily target major retailers and wholesalers, including leading supermarkets like E-Mart and Lotte Mart, as well as convenience stores such as MiniStop and 7-Eleven This strategic approach ensures broad market coverage and increased brand visibility across key retail outlets.
In addition, in the 4.0 era, One One can also sell its products on e-commerce platforms such as Gmarket, Coupang,
Figure 4.4: Convenience stores in Korea
Promotion
4.4.1 Offline Communications a Press and Newspapers
This tool is primarily used to boost brand awareness during the first two years Starting from year three, its focus shifts to promoting One One Korea’s activities and social contributions to foster positive public relations and enhance the brand’s image PR Newswire services, costing between $350 and $8,700 depending on distribution scope, will be utilized for national press releases, with each release costing approximately $805 Additionally, Out-Of-Home (OOH) advertising will be employed to further increase visibility.
Korea's extensive public transportation network, particularly its bus system, offers prime opportunities for outdoor advertising at bus stops and transit stations Utilizing billboards in these strategic locations enhances brand visibility and awareness among commuters Additionally, these advertising efforts support One One Korea's broader marketing campaigns, maximizing outreach and engagement.
Figure 4.5: A lot of Koreans have a habit of traveling by bus (especially young students or the elderly) c TVC
To effectively promote our mass-targeted product, television commercials (TVCs) will play a crucial role in our marketing strategy, particularly during the product launch phase Short clips, ranging from 30 to 60 seconds, will be designed to prominently showcase our logo and brand name to enhance brand recognition Given Korea's status as a leading market with high television viewership, leveraging TVC advertising will maximize reach and impact for our brand awareness efforts.
“idol culture” so celebrities can also be used to gain better attention d Trade Fair
“Trade fairs are a very powerful marketing medium They bring together thousands of international buyers and sellers in one place in a short space of time.”
The Trade Fair we are going to participate in is the Coex Food Week Seoul
The annual Food and Beverage Trade Fair, held since 2006, is recognized as one of the largest events of its kind in Korea, attracting industry professionals and visitors from around the world The event is organized into several specialized sub-fairs, each focusing on specific sectors within the food and beverage industry Attendees can access in-depth and comprehensive information on the latest developments, trends, products, and services across various fields, making it a premier platform for networking and business growth This year’s trade fair promises to showcase innovative offerings and emerging trends to keep industry stakeholders ahead in the competitive market.
| 31 take place from 02.11.2022 to 05.11.2022 (4 days) at COEX Convention and Exhibition Center, Seoul The audience will be professional visitors and the general public
A typical booth rental for a 20x20 space costs approximately $12,000, with additional expenses such as travel and marketing totaling around $8,000 Therefore, the overall investment amounts to roughly $20,000 The plan includes attending trade fairs biennially starting from the first year, along with strategic country visits to expand market reach.
We will carry out a country visit in the years that we skip Trade Fairs The average for an international business trip will be $2525
We utilize SEO and SEM strategies to drive targeted traffic to our website, oneonekorea.kr.com, ensuring increased visibility and engagement The typical cost for comprehensive SEO and SEM services for a single project ranges from $5,000 to $30,000, depending on the scope and complexity We plan to allocate our budget within this range to maximize our online reach and achieve measurable growth.
$20,000 for a one-time service in the first year b Social Media Advertising
We will run targeted ads on popular platforms such as Facebook, Instagram, and YouTube to maximize reach and engagement According to The Content Factory, the average organization spends between $200 and $350 daily on social media marketing, totaling approximately $6,000 to $10,500 per month This strategic advertising approach aims to enhance brand visibility and drive customer acquisition.
$72,000 and $126,000 per year.” We will set our budget at $80,000 c Influencers Booking
We will leverage micro-influencers with 10,000 to 50,000 followers on platforms like YouTube and TikTok to review, use, and promote One One Korea products These influencers will share authentic content on their social networking sites, helping to boost brand visibility and engagement Partnering with micro-influencers is a targeted strategy supported by influencer marketing companies, ensuring effective reach within niche audiences.
Linqia reports in 2019: “54% are planning to spend more than $250,000 annually on influencer marketing”, so we will settle at the average price d Blog Review
For a 1,000-word article, typical rates range from $200 to $700, though prices can vary significantly depending on factors such as topic complexity and writer expertise We plan to use this pricing tool to produce 50 articles across various blog niches, averaging an estimated cost based on these standard rates This approach allows for a flexible and scalable content creation strategy tailored to different blogging needs and budgets.
$350 per article during the introduction stage of our brand, so the first year only
Table 4.2: Promotion Plan of One One in Korea
The report provides a comprehensive analysis of One One Company's international marketing plan, offering valuable insights into their global marketing strategies It highlights how the company defines its objectives and employs specific methods to succeed in foreign markets Through detailed discussion and demonstration of marketing processes, the report explains how One One effectively analyses and implements strategies to promote their products internationally This thorough review enhances understanding of the key components involved in successful international marketing programs.
Despite efforts to produce an accurate report, some errors were identified during the process We value your feedback to help us improve and ensure higher quality in future projects.
We sincerely thank you for reading our report
(2020) Retrieved from Optilingo: https://www.optilingo.com/blog/korean/the- importance-of-family-in-korean-culture/
(2020) Retrieved from indexmundi: https://www.indexmundi.com/
(2022) Retrieved from Culturalatlas: https://culturalatlas.sbs.com.au/chinese- culture/chinese-culture-family
Coface For Trade (2022) Retrieved from coface: https://www.coface.com/cofaweb/comparer/266-710
Inflation rates in China have experienced significant fluctuations over recent years, impacting the country's economic stability According to data from Statista (2020), the average annual inflation rate in China was around 2.5% in 2020, reflecting moderate price increases In 2021, the inflation rate increased slightly, with the average rising to approximately 2.7%, influenced by global economic recovery efforts However, projections indicate that inflation may stabilize or decline slightly in 2022, with rates expected to hover around 1.8% to 2.0%, supporting China's ongoing economic growth These inflation trends are critical for understanding China's monetary policy and economic health, emphasizing the importance of monitoring inflation for economic planning and stability (Sources: Statista, 2020; Statista, 2022).
Trade Map (2022) Retrieved from Trade Map: https://www.trademap.org/Country_SelProductCountry.aspx?nvpm=1%7 c410%7c%7c%7c%7cTOTAL%7c%7c%7c2%7c1%7c1%7c1%7c1%7c1
Trademap (2022, July) Retrieved from Trademap: https://www.trademap.org/Country_SelProductCountry.aspx?nvpm=1%7 c156%7c%7c%7c%7cTOTAL%7c%7c%7c2%7c1%7c1%7c1%7c1%7c
Warren J Keegan, Mark C Green, Simpson College (2017), Global Marketing, 9th Edition, Pearson USA