(TIỂU LUẬN) MARKETING PLAN FOR KOIKEYA COMPANYS KARAMUCHO POTATO SNACK IN VIETNAM MARKET

LIST OF FIGURESFigure 3.1: Snack group revenue diagram over the years...5 Figure 3.2: Karamucho's market share and competitors in Vietnam market Source: Koikeya Data as of December 2020.

THE MINISTRY OF FINANCE THE UNIVERSITY OF FINANCE MARKETING

THE MINISTRY OF FINANCE THE UNIVERSITY OF FINANCE MARKETING

HO CHI MINH CITY, 2021

COMMENT OF THE PRACTICE GUILINES TRAINER

i

TABLE OF CONTENT

1 Executive Summary 1

2 Introduction 2

3 SWOT & Macro - Environment Analysis 4

3.1 SWOT model company analysis 4

3.2 Market summary 5

3.2.1 Overview of snack market in Vietnam 5

3.2.2 Macro - Environment Analysis 6

3.2.3 SWOT model of Karamucho potato snack 7

3.3 Competitors 8

4 Segmentation & positioning strategy 9

4.1 Segmentation 9

4.2 Targeting 9

4.2.1 Target customers: 9

4.2.2 Potential customers: 10

4.3 Positioning 10

5 Marketing Mix Strategies 11

5.1 Product 11

5.2 Pricing 12

5.3 Place 12

5.4 Promotion 12

5.4.1 Advertising: 12

5.4.2 Sales promotion 12

5.4.3 Direct Marketing : 13

5.4.4 Event and experience 13

5.4.5 Public relations 14

6 Action plan 14

7 Conclusion 18

7.1 Implementation 18

7.2 Marketing Organization 18

7.3 Contingency Planning 19

ii

LIST OF TABLES

Table 1.1: Introduction of Karamucho 2

Table 2.1: SWOT model company analysis 4

Table 2.2: SWOT model of Karamucho potato snack 7

Table 3.1: Karamucho Market Segment table 9

Table 5.1: Stage 1: New product development and brand awareness 14

Table 5.2: Stage 2: Building and developing the brand 16

Table 5.3: Stage 3: Capture market share and make a profit 17

iii

LIST OF FIGURES

Figure 3.1: Snack group revenue diagram over the years 5

Figure 3.2: Karamucho's market share and competitors in Vietnam market (Source: Koikeya) (Data as of December 2020) 8

Figure 4.1: Karamucho positioning diagram in VietNam snack market (The author's self-suggested model) 10

Figure 5.1: The authors' proposal to change the packaging of karamucho potato snacks 11

Figure 5.2: Illustration for paper towel gifts when using Karamucho potato snack 13

Figure 7.1: Marketing Organization of Karamucho 19

iv

1 Executive Summary

One of the food and beverage industries is the snack industry The demand for snacks tends toincrease over the years According to a Nielsen report, 13,000 billion VND spent on snacks each month by Vietnamese youth is a statistic that all businesses must really pay attention to Junk food is considered a potential market for businesses to exploit in Vietnam Vietnamese snacks are rich and diverse, with attractive flavors and relatively cheap prices, attracting manycustomers, especially young people Dishes like chicken wings, potato chips, etc are selling well Fast, convenient, affordable has opened up new experiences for young people and helped foreign snack brands increasingly dominate the Vietnamese market

Recognizing the potential market in Vietnam, we have proposed a Marketing plan for the newKaramucho potato snack product, which is about to hit the market To ensure the success of the new Karamucho potato snack product line, a detailed Marketing plan is needed to developthe right marketing strategy to bring Karamucho potato chips to the vast majority of

consumers Vietnam

In the Marketing plan, we use the SWOT model to analyze the internal environment of the company, as well as to analyze the products that the company has produced before and see thecompetitors in Vietnam, which is in the snack food market to create differentiating strategies that competitors offer In addition, we also offer STP strategies to segment, select target markets and position our products Next, we will propose a Marketing Mix 4P strategy and create an action plan in each stage for product development and distribution to consumers In addition, budgeting for the Marketing plan helps us to control the cost of the company and ensure that the Marketing Plan goes on schedule

1

Name: Koikeya Vietnam Co Ltd.

Location: N3-2 Street, Long Duc Industrial Park, Long Duc

Commune, Long Thành District, Dong Nai Province, Viet Nam

Field: Manufacturing and sales of snack foods and healthy foods

(potato chips, corn snack, etc.)

Karamucho

snack

information

History and development:

Karamucho is a long-standing spicy snack brand of Koikeya that was launched in 1984 in Japan Up to now, KARAMUCHO has had a history of development for more than 30 years in Japan, but the fever

of the name KARAMUCHO as well as the signature spicy products of this brand still captures the hearts of all consumers With a remarkable development momentum, Karamucho is now present in many countriesaround the world such as Belgium, Hong Kong, Taiwan, Thailand and most recently, it has been on the Vietnamese market for 3 years

Types of product:

KARAMUCHO Potato Strong Tokyo BBQ flavourKARAMUCHO Potato Strong Hot Spicy flavorKARAMUCHO Potato Spicy Seaweed flavorKARAMUCHO Potato Hot spicy flavorKARAMUCHO Corn Hot spicy flavor

Brand character:

KARAMUCHO’s brand character is Tomi-chan from Japan In spite

2

of her age, Tomi-chan always keeps the young spirit and lives to the fullest She loves to travel, explore new things, wear colorful clothes and especially word-play Accompanying Tomi-chan are Chi-chan and Doraemon, who are close friends from Vietnam.

Mission With advanced manufacturing technology and top experts from Japan,

Karamucho is proud to carry its mission of providing premium

products to the customers that are the original, flavorful taste,

especially the hot spicy flavor which is like no other existing snacks in the market before Ultimately, those products are about enjoying life, connecting family and friends, and cheering the loving moments together

Vision In the future, Karamucho at the same time to expand the distribution

network in order to introduce the Japanese authentic, original taste to more potential customers.am wishes to diversify the KARAMUCHO product range to develop more new and attractive flavors

3 SWOT & Macro - Environment Analysis

3.1 SWOT model company analysis

Table 3.2: SWOT model company analysis

- As a long-standing snack company

and a famous brand in Japan

- Having relationships with foreign

companies is quite wide, such as the

USA, Taiwan, Canada, Singapore,

Thailand, Malaysia, China,

- Development cooperation with

many major suppliers and

distributors in Vietnam such as BigC,

Coop mart,

- Snacks are not a necessity, do not serve the essential needs of people, and there are many other products to use instead, so people's purchasing power decreases, which will impact

on the decline of the company's revenue

- Every year the Company has to import some raw materials for production such as flour, flavoring, milk powder Therefore, when the exchange rate fluctuates, input costs change, affecting the production and business results of the company

- The company's brand in Vietnam is not known to many people

- Vietnam's economy in recent years

has grown by 7-8% per year, this

will stimulate people's demand for

consumption, which will be an

opportunity for Koikeya to grow its

business

- "Young people aged 15-23 are

snacking all day long," Decision

Lab's recent report said about the

trend of young people going out to

- When Vietnam joins AFTA, the import tax rate for confectionery products will be reduced The sellingprice of these products may be more competitive, thus affecting the Company's business

- Imported raw materials and raw sugar account for about 20% of the Company's product cost Therefore, changes in import-related circulars

4

snack today and decrees will directly affect the

price of input materials

- Many long-standing rival companies

in Vietnam such as Orion, Pepsico,

3.2 Market summary

3.2.1 Overview of snack market in Vietnam

According to The Sweet and Savory Snacks report on Vietnam's snack segment published by Euromonitor International, the industry's total revenue is estimated at $535 million in 2017, higher than 2016 ($479.5 million) Vietnam is one of the most developed snack markets in theASEAN region, behind Thailand, Indonesia and the Philippines in this $3.5 billion market The average consumption per capita is 0.8 kg, equivalent to 5.66 USD/person

A recent Nielsen report has shown that the global sales of the snack market grew by $3.4 billion, while in Vietnam, snack products increased by 21% in 2017 Revenue for the snack market increased by 21% in 2017 The Vietnam Snack market in 2017 reached VND 8000 billion, expected to grow at a CARG of 6.78%, expected by market researchers to reach VND 10,400 billion by 2021

Environment Analysis

environment:

and develop in recent times The stability of the economy has created favorable conditions forthe development of domestic economic sectors, in which the snack industry including snacks

5

Figure 3.1: Snack group revenue diagram over the years

for young people is increasing day by day “In 2016, Vietnam has the opportunity to become the economy with the highest growth rate in East Asia and Southeast Asia.” Comments of economic expert Nguyen Xuan Thanh - Director of the Fulbright VN economic curriculum

2017 ended with the victory of the Vietnamese economy in terms of growth The growth rate

of gross domestic product (GDP) reached 6.81%, higher than the target of 6.7% 6.81% of GDP is also the highest growth rate within a decade The growth record is attributed to the strong recovery of the economy in the second half of the year The growth rate of over 7% in the third and fourth quarters was a boost, turning the seemingly "impossibility" ambition of 6.7% growth into a new "mark" of Vietnam's economy, exceeding all expectations of

organizations, international organizations, economic experts and the Vietnamese government

3.2.2.2 Demographic environment

The size and organizational structure of the population are factors that determine the structure

of potential customers of an enterprise Population size and growth rate are two important demographic indicators The large and growing population creates a large potential market formany businesses, especially the Karamucho snack product of Koikeya company Vietnam has

a population of over 98 million people (according to the General Department of Population in 2021), so its high population is an attractive market for this business

3.2.2.3 Technological environment

Technology is a competitive weapon in today's market New technology will create new products that compete with existing products Thus technology creates opportunities for new businesses New businesses often use new technology to compete with old businesses as a strategy Along with the development of information technology, it has supported the strict management and control of business activities in different markets, attracting customers through the advertising system so that they can appear at all times Everywhere supports quick decision making Technology is increasingly becoming a key factor determining the success or failure of a company Koikeya's Karamucho snack brand is currently using

automatic Japanese production line technology From there, the company's productivity becomes faster, more efficient and more accurate

6

3.2.2.4 Social and cultural environment

Like technological changes, social change also creates opportunities and threats to a business and the obvious tendency is health According to Maslow's scale of needs, when people satisfy the lowest needs from eating, wearing, sleeping, then a new higher need is born that

is the need for safety and security When people's income is improved, but basic needs of life are met, people's needs also change to a higher direction In the past, when the income was low, eating only to be full, now eating is not only full but also good for health, snacking not only satisfies hunger, but the products used must also be of quality and safe This is a strong growth opportunity for the snack market Understanding this consumer market trend, along with advertising and promotion strategies for safe and healthy products, will bring success to businesses

3.2.3 SWOT model of Karamucho potato snack

Table 3.3: SWOT model of Karamucho potato snack

- Is the number 1 product in Japan

Nhật

- It is a product made from potatoes

- As a convenient product

- Promotion is not really effective, not many people know and use it

- High price compared to the ground

- Poor brand awareness

+ The trend of developing fast food and

entertainment food is gradually increasing in

Vietnam

+ High demand for entertainment, many

common malls, movie theaters, grocery

stores, … results in high demand for snacks

+ Effective marketing opportunities on the

Internet platform during Pandemic

+ Difficulty in expanding the market+ Being competed by many strong competitors such as Lays, O'star, Oishi, etc

7

3.3 Competitors

Figure 3.2: Karamucho's market share and competitors in Vietnam market (Source: Koikeya) (Data as of

December 2020)

The snack market segment can be divided into 3 main categories based on processed

ingredients: Chips, nuts, and processed snacks with other ingredients such as fruit or starch The revenue structure by product in Vietnam is clearly divided, processed snacks accounted for 33&, nuts accounted for 30%, and potatoes accounted for 24%

Karamucho is a potato chip snack

In the potato chip snack segment, there is Oishi - a brand of Liwayway (Philippines) companywith diverse products in ingredients such as: Seafood, corn, pumpkin, from sweet to salty Currently, Liwayway is holding market share the largest: 53% Oishi has become a familiar brand, occupying a high position in the hearts of Vietnamese consumers

PepsiCo's Poca, by 2019, was changed to Lay's brand to share the same name with the world, ranked 3rd on the market share table with 16%

Born at the same time as Poca, Orion's O'star brand (Korea) and later Toonies is currently the

"ACE" of Orion in the market accounted for 22% market share

4 Segmentation & positioning strategy

OCCUPATION Students, office workers.

FAMILY LIFE CYCLE Married, single

Vietnam

interested in quality, and loves Japan

4.2 Targeting

According to a recent report by Decision Lab, the trend of snacking among young people has been identified as "Young people aged 15-23 are snacking all day." So the target market that Karamucho's snacks are targeting is the demographic segment

4.2.1 Target customers:

Age: 15-23 years old

Gender: 20% male, 80% female

Occupation: 80% students, other 20%

4.3 Positioning

Figure 4.3: Karamucho positioning diagram in VietNam snack market (The author's self-suggested model)

- From the above positioning map, it can be seen that:

About price: Karamucho snack is on par with Lays snack - a snack brand that has appeared for a long time in the Vietnamese market Besides, although it has only appeared on the Vietnamese market for nearly 4 years, the price of Karamucho is still too expensive compared

to three competitors Oishi, Ostar and Toonies

About the spicy flavor attribute: As a famous spicy snack brand in the Japanese market, its spicy flavor is superior to the spicy product lines of rival companies

→ Therefore, we need to promote the positioning strategy for Karamucho snacks by product attributes to expand market share and increase brand awareness of consumers

Positioning strategy: Positioning by product attributes: When it comes to Karamucho snacks,

consumers will immediately think of the special spicy flavor that the product brings

10