Final report marketing management marketing plan for custas cake coconut cream flavor – orion viet nam

PLEDGE The authors commit that the topic " MARKETING PLAN FOR CUSTAS CAKE COCONUT CREAM FLAVOR - ORION VIETNAM" is done based on the efforts and enthusiasm of each member.. Decision rega

THE FINANCIAL THE FINANCIAL MARKETING UNIVERSITY

-฀฀ ฀฀฀ -

FINAL REPORT MARKETING MANAGEMENT

MARKETING PLAN FOR CUSTAS CAKE COCONUT

GROUP: 3CEO

Đỗ Thị Thùy Nhung – 202100080

Thành phố Hồ Chí Minh, năm 2021

PLEDGE

The authors commit that the topic " MARKETING PLAN FOR CUSTAS CAKE COCONUT CREAM FLAVOR - ORION VIETNAM" is done based on the efforts and enthusiasm of each member The data and research results in this report are true and is not intended to be reproduced or used by any similar research subject If detected the duplication of research results of other topics, the author team will be fully responsible All the information cited in the report has been clearly traced and published

HCM, 2021

ACKNOWLEDGMENT

After studying and doing research to complete this thesis, we would like to express our ratitude to Mr Dang Huynh Phuong He dedicatedly instructs, guided, and helped us throughout the teaching process so that we have the knowledge and complete this research The knowledge that we have learned from you is the expensive lessons and he foundation for us in the future Moreover, the research helps us to get real experience when standing from the perspective of being a business to apply the knowledge learned in school into practice Once again, we would like to thank you very much Due to the limited knowledge and time, the research still has many short comings We look forward to your comments to improve the research further

TABLE OF CONTENT

3.7.1.2 Decision regarding Custas cake coconut cream flavor product strategy 14

Table 3: Variable cost 20

LIST OF FIGURES

Figure 1: SWOT of the Orion 9

Figure 2: SWOT of the Custas cake coconut cream flavor 10

Figure 3:Segmentation of the Custas cake coconut cream flavor 12

LIST OF TABLES Table 1: Estimated cost 17

Table 2: Fixed cost 20

Table 3: Variable cost 20

Table 4: Assumption of project 20

Table 5: Break - even analysis 21

SECTION 1: EXCUTIVE SUMMARY

Orion Food Vina Vietnam Co., Ltd was present in Vietnam in 2005 The company has 100% foreign investment capital, belongs to Orion Group - the world's largest confectionery group, present in over 60 countries Headquarter in Seoul, Korea Orion's famous products in Vietnam including Chocopie, Custas have affirmed their brand and quality in domestic and international markets In 2007, the Company established a branch

of Orion Vina Food Co., Ltd in Bac Ninh to boost production and improve the company's revenue and profit Orion Vina is also assessed as a foreign enterprise in Vietnam that performs well in corporate social responsibility Orion has a factory in My Phuoc Industrial Park, City In Ho Chi Minh City and a factory in Yen Phong Industrial Park, Bac Ninh, both factories operate with high productivity, supplying enough confectionery and snacks for the North, Central and South markets and exported to many other countries In order to be self-sufficient in raw materials for products Orion has established O'star Farm in Vietnam, specializing in supplying fresh ingredients to produce O'star Orion annually invests millions of dollars in upgrading production lines, equipment and machinery to increase production capacity, helping to provide consumers with quality products, diverse designs, and cheap Orion's public and employees are well-trained before starting to work at the workshops, and are regularly trained in skills and knowledge by experts from Orion Group

SECTION2: SITUATION ANALYSIS

Orion is the world's leading confectionery company Because they have 3 main brand groups: MarketO (premium handmade cookies and chocolate), Dr You (food with many nutrients) and Orion (including sponge cake, snack, cookie, candy, gum, chocolate), present

in 60 countries around the world In particular, in 2020, Orion ranked 14th on the ranking

of the world's leading confectionery company voted by the global confectionery industry magazine Candy Industry Orion not only represents long-term development in Vietnam but also wishes to improve the quality of life for generations of Vietnamese families While many brands have been hit hard by the Covid-19 pandemic, Orion has maintained its leading position in the confectionery industry as sales of its items have skyrocketed It is known that in 2020, Orion's revenue in Vietnam increased by 15.7% And according to IBK Securities, Orion's 2021 revenue is forecast to reach 2.410 billion won, up 8.2% from last year

2.1 MARKET SUMMARY

In the context of the current outbreak of the Covid-19 pandemic, Vietnam is one of the few countries in the world with a positive economic growth rate (+2.91%) According to a Phu Hung Securities report, the food and beverage segment's total revenue will reach VND 975,867 billion (+3.8 percent YoY) in 2020 And the food and beverage industry accounts for approximately 15.8 percent of GDP Food and beverage spending currently accounts for the greatest proportion of consumers' monthly spending structure (about 35 percent of spending)

2.1.1 Market Demographics

Geographics

Vietnam has a total area of 331,212 square kilometers including the total land area and islands As a tropical country with sloping terrain accounting for 3/4 of the land area, the rest are low hills and plains only accounting for 1/4 of the land area

The whole country is divided into 3 regions: North, Central, and South

Demographics

According to the results of the Vietnam Census in 2019, the population under 35 years old accounted for 55.5%, with an average life expectancy of nearly 76 years, higher than other countries with similar incomes in the region But the population is aging rapidly A growing middle class - currently accounts for 13% of the population and is expected to reach 26%

by 2026

The per capita income of Vietnamese is about 3,000 USD/ person/ year

2.1.2 Market Needs

Convenience in every situation from purchase to use: Due to the busy life, consumers want

a product that is easy to use and easy to buy

Vietnamese consumers like new types of cakes with attractive flavors, rarely appearing on the Vietnamese market Therefore, the birth of coconut cream flavor Custas has a unique delicious taste that is hard for anyone to surpass because of its rich sweet taste As a new breakthrough, the delicate combination of sponge cake and coconut cream flavor creates a sense of excitement for users

2.1.3 Market Trend

In the Vietnamese market, most consumers tend to buy Custas cake filled with coconut cream flavor to give as gifts on holidays, Tet or can buy for the family to enjoy every day Consumer curiosity about Custas cake when it comes to new flavors is also what drives the trend to search the market even before it is launched for sale

In addition to the above trend, the domestic market is moving towards safe food consumption and mobilizing the participation of "Vietnamese people give priority to using Vietnamese products" to affirm as well as enhance the brand position, create trust for customers In particular, our country's confectionery industry has a distinct seasonality, so the number of responses for each season will also be different, and at the same time constantly improve the image and quality of products, learn and research many products that attract consumers to trust

Establishing a company in large countries such as India, will increase consumer awareness

of the brand, provide a source of labor for people, and increase sales

2.2 SWOT ANALYSIS (ORION)

- The price of each Orion product is not too

high and ranges from 11200 VND to 84900

VND (product price refers to Coopmart

supermarket), serving many different

classes of people

- Orion's public and employees are

well-trained before starting to work at the

workshops, and are regularly trained in

skills and knowledge by experts from Orion

Group

- Orion's product portfolio in Vietnam is not diversified, only focusing on a few main products such as Chocopie, Custas, O'star, Tayo or Goute cakes

- The number of factories in Vietnam is limited, with only two factories: one in My Phuoc Industrial Park, Ho Chi Minh City and a factory in Yen Phong Industrial Park, Bac Ninh

- Modern infrastructure, production

systems, machinery and equipment are

invested millions of USD annually to

increase production capacity, helping to

provide consumers with quality products

and diverse models

- Orion's ads are good, appearing a lot on

different platforms

- Vietnam is a favorable location for

investment: stable political security, good

and skilled workforce In addition, Vietnam

has a convenient location that can exchange

and trade goods by waterway, road, and air

- Abundant human resources with more

than 90 million people as of December 3,

2021 according to the latest figures from

the United Nations

- Competitors advertising the product are

not too strong: with the "choco-pie song"

advertisement, Orion is well known and

well-liked Orion has implemented an

advertising strategy, promoting the image

of the company and its products in many

forms: television, radio, internet

- According to the Institute of Financial Strategy and Policy, the Ministry of Finance, although the labor force in Vietnam is abundant and young in structure, the human resource is still weak

in terms of quality, there is a shortage of skilled workers, and cannot meet the demand Demand of the labor market and integration, labor lacks dynamism and creativity, professional style

- The number of competitors in the market

is increasing.Because Vietnam is in an integrated economy, bringing an increasingly expanding business environment, bringing a lot of opportunities for businesses, but also countless challenges that businesses have to face not only with Orion but all of them Vietnamese businesses

Figure 1: SWOT of the Orion

2.3 SWOT ANALYSIS (CUSTAS)

- The taste of coconut cream is novel, but

few sponge cake products in Vietnam are

exploited to bring consumers a new

experience

- Has a modern factory and production line

that is invested and upgraded every year

- The packaging has not changed over the years

- Has a large distribution channel

throughout Vietnam

- Good quality management You will

hardly hear any complaints about the

quality of Custas in Vietnam The superior

quality management and the same quality

distributed throughout Vietnam make

people fall in love with the taste and

consistency of Custas

- Custas' competitors haven't launched a

cake that looks like coconut cream

- Counterfeit goods Currently, on the market, there is a cake with a yellow box color and the image of a cake printed on the left, this cake is chosen by many consumers, especially during Tet The difference is only in a few letters from C-U-S-T-A-S to C-U-S-T-A-R-D at first glance, this cake is sold at some grocery stores for less than 10,000 VND However, the quality is not guaranteed, which may cause some negative stereotypes about the product for the brand

Figure 2 SWOT of the Custas cake coconut cream flavor :

SECTION 3: MARKETING STRATEGY

Talking about creativity and breakthrough, the Custas brand should definitely not be ignored Considered as a potential brand and entered the ranking of the world's leading confectionery company Custas reinvents their products with more unique flavors to offer products in different regions that represent part of their marketing strategy This will make customers more interested in their new items Connecting to social media in terms of advertising was an important part of the marketing strategy that Custas worked on They have been advertising on sites like YouTube, Facebook, etc since using social networks as

a means of communicating with people nowadays

3.1 MISSION

Orion's mission is to provide products of the highest quality to customers in all the markets

in which they operate Orion's mission is to provide products of the highest quality to customers in all the markets in which they operate "We have been managing quality for more than 40 years and are constantly improving our expertise to satisfy customers with diverse palates while successfully bringing the brand to the world and known by its familiar name belongs to "Building the Bread Road'', constantly innovating without losing its signature delicious taste

 Creating a link in the minds of the customers

 To generate long-term organic sales growth in the mid-single digits by combining quick innovation, portfolio management, and market share gains

3.3 FINANCIAL OBJECTIVE

 Profit margin increases 5-6% per quarter /month

 Reaching the top 10 of the confectionery industry by 2022

 Maintain a marketing research budget to speed up the process of promoting new product launches for the future

in it Due to the characteristics of this target group, they like to eat snacks and sweet foods,

3.6 POSITIONING

Positioning Custas Cake

Custas cake coconut cream flavor will become the first cake in Vietnam with real coconut cream flavor This will also be one of the leading products in the confectionery market in Vietnam Custas cake coconut cream flavor will be part of Tet dishes for both guests and host families The real taste and meaning by the real coconut cream flavor filling in the product gives consumers more value and product meaning than other places

Competitive advantage in positioning

Product difference: cake is refrigerated, pasteurized, quality is always stable The logo and brand name are closely linked to create an impression through the circle and star symbol that blend together to rise to the top

Positioning strategy

Positioning based on product attributes and product benefits to consumers: a cake eaten when hungry will help you regain energy, increase work efficiency and help you feel comfortable in class Soft cake with sweet and delicious coconut cream flavor filling Target customers: Custas cake with coconut cream flavor is aimed at diverse customers of all ages

a crisp, greasy cream on the inside The ingredients in the cake help you get the vitamins and minerals you need every day

Actual product

The product is packed in a paper box of 12 pieces with a weight of 282g/box Designed with the outer shell is a blue -white paper box that looks pure and lucky The product name is printed to "Custas" clearly and full of information about the product, ingredients, expiry date, to help consumers easily distinguish and choose products

Supplementary products

In addition to the product information on the package, the company's contact information

is also printed to make it easier for customers to solve product-related problems