Marketing Plan Of Afc Crackers To Penetrate Singapore Market Of Mondelez Kinh Do Joint-Stock Company.docx

MINISTRY OF FINANCE UNIVERSITY OF FINANCE MARKETING INTERNATIONAL MARKETING FINAL EXAM MARKETING PLAN OF AFC CRACKERS TO PENETRATE SINGAPORE MARKET OF MONDELEZ KINH DO JOINT STOCK COMPANY Member of gr[.]

MINISTRY OF FINANCE UNIVERSITY OF FINANCE - MARKETING INTERNATIONAL MARKETING

FINAL EXAM MARKETING PLAN OF AFC CRACKERS TO PENETRATE SINGAPORE MARKET OF

MONDELEZ KINH DO JOINT-STOCK COMPANY

Võ Thị Hoài Thương 1921005692 Phan Trang Linh 1921005498 Dương Nguyễn Anh Tuấn 1921005748

Ho Chi Minh city, 2021

MINISTRY OF FINANCE UNIVERSITY OF FINANCE - MARKETING INTERNATIONAL MARKETING

FINAL EXAM MARKETING PLAN OF AFC CRACKERS TO PENETRATE SINGAPORE MARKET OF

MONDELEZ KINH DO JOINT-STOCK COMPANY

Võ Thị Hoài Thương 1921005692 Phan Trang Linh 1921005498 Dương Nguyễn Anh Tuấn 1921005748

Ho Chi Minh city, 2021

1 EXECUTIVE SUMMARY 1

1.1 Essay Content 1 1.2 Company And Product Introduction 1 2 SITUATIONAL ANALYSIS 4

3 ANALYSIS OF THE INTERNAL ENVIRONMENT 6

4 ANALYSIS OF THE EXTERNAL ENVIRONMENT 8

5 STP STRATEGIES 10

6 INTERNATIONAL MARKETING GOALS AND OBJECTIVES 12

7 MARKETING PROGRAM 14

7.1 Product strategy 14

7.2 Price strategy 18

7.3 Place strategy 20

7.4 Promotion strategy 21

7.5 Action plan 22

8 EVALUATION, MEASUREMENT AND CONTROL 23

1.EXECUTIVE SUMMARY

1.1 Essay Content

The group's topic is to develop a marketing strategy for AFC cake products under the Kinh

Do brand when entering the Singapore market Our marketing plan will show that this will be

an opportunity for AFC bakery products to enter and expand internationally The Kinh Dobrand is known as the largest confectionery brand in Vietnam Through more than 20 years ofproduct and brand development, Kinh Do has become close to Vietnamese consumers KinhDo's products have been present in over 30 countries, in which AFC products have beenexported to Japan and are well received With that success, our team decided to chooseSingapore as the next market to bring AFC bakery products to international consumers Theteam has developed a marketing strategy that helps products and brands quickly reach theconsumer market and target customer segments, becoming the main source of supply for thismarket

Before planning the marketing, we conducted research and analysis on the brand, consumermarket, and competitive market, identifying strengths, weaknesses, opportunities, andchallenges of AFC bakery products in the confectionery market in Singapore In addition,there are micro and macro factors affecting the brand's marketing strategy The next step,which we have selected and come up with the STP strategy for AFC bakery products, ischoosing the right customer segments, target customers, and brand positioning, which wehave studied very carefully

The importance of planning, incorporating the 4Ps (product, price, distribution, promotion) is

an important component of a strategy to bring products to new markets and attract consumers.Finally, a specific marketing plan, certain milestones, methods of implementing constraints,expected revenue and profit, and budget for advertising activities to better define goals whenput into operation

1.2 Company And Product Introduction

1.2.1 About Kinh Do Joint Stock Company

1.2.1.1 Brief introduction about Kinh Do joint stock company

Founded in 1993 with a total investment capital of VND 1.4 billion, thenumber of workers is 70 people Over 20 years of product developmentand branding, Kinh Do has become closer to customers From daily

confectionery products, food products, and Tet gifts to ice cream, milk,dairy products, and expanding equipment products, Kinh Do has become afamous and powerful company action in Vietnam Currently, the grouphas 8 factories and 11 member companies specializing in the production

of confectionery, ice cream, and soft drinks, building an address with morethan 7600 employees In addition, the company also owns a retail chainwith more than 200 distributors and 70,000 retail outlets Kinh Do'sproducts are present in 30 countries: the USA, Canada, Mexico, Japan,Taiwan, etc Kinh Do's main market is Vietnam, which accounts for 90% ofsales In addition, it is also exported to countries such as the US,Cambodia, Japan, and Taiwan

Each specific product line Kinh Do always identifies a specific targetcustomer Kinh Do's products are suitable for many different customers,with different income levels, but mainly medium and high-class

Brands ranked No 1 in the top 10 favorite brands in Vietnam

Kinh Do's factory system is invested with the leading scale and moderntechnology in Southeast Asia:

 Kinh Do factory in Binh Duong

 Kinh Do factory in the North

 KIDO Ice Cream Factory

Vision: “For a more beautiful life every day”; “Taste for Life”

Kinh Do recognizes the increasing requirements of customers' foodproducts, which must be of high quality and ensure safety Therefore, Kinh

Do has brought to consumers safe products in terms of quality as well asconvenience when using With the best meeting the needs of customers,Kinh Do wants to become a leader in the food industry

Kinh Do's mission to consumers is to create suitable and convenientproducts, including common and essential foods, supplements, andbeverages The business provides safe, delicious, nutritious, andconvenient foods for everyone to stay at the forefront of the food market.For shareholders, Kinh Do's mission is not only to bring maximum profit inthe long term, but also to perform well in risk management, makingshareholders feel secure in their investment With partners, Kinh Do'smission is to create sustainable value for all members of the supply chain

by ensuring a reasonable level of profit through innovative products andservices Satisfy consumer trends and satisfy customers' wishes In order

to contribute to the development and support of the community, Kinh Doalways actively creates and also wishes to participate and contribute tocommunity-and social-oriented programs

1.2.1.2 History of Kinh Do Joint Stock Company:

1993: Established Kinh Do company

1994: Launching snack products

1996: Built a factory in Thu Duc

1997: Launching fresh bread products

1998: Launching mooncakes and chocolate candy

2000-2001: Building Kinh Do factory in the North

2003: Acquired Wall ice cream factory from Unilever and establishedKIDO'S Company

2004: Established Kinh Do Binh Duong Company, Kinh Do Northern isofficially listed on the stock exchange

2005: Kinh Do (KDC) is officially traded on the stock exchange Kinh Doinvests in the Tribeco company In the same year, KC launched the Solliecake product

2007: Kinh Do and Eximbank become strategic partners Kinh Do andNutrifood became strategic partners In the same year, KC invested inVinabico KDC has launched the Wel Yo yogurt product.

2010-2012: Kinh Do merged Kinh Do companies in the North, KIDO andVinabico, into KDC, shaping a new strategic direction on the group scale.2012: Kinh Do signed a strategic partnership with Ezzaki Glico Japan Forthe third time in a row, KDC was voted as a National Brand Also in thesame year, Kinh Do launched Pocky cakes and Sachi rice cakes

1.2.2 AFC crackers

Established in 1999, AFC quickly affirmed its position when it quicklyappeared at all large and small retail locations across the country and isloved by many consumers occupying about 56% of the market share inKinh Do Bringing a significant source of revenue for the business

Features: The perfect combination of premium ingredients and European

production technology has created excellent quality AFC cakes AFC is asavory cake with the characteristics of a thin, crispy, and spongy cake.This is a low-sweet, low-fat cake which is supplemented with many healthynutrients, such as calcium, Vitamin D, fiber, etc So, it is very suitable forthe trend of enjoyment of today's consumers In AFC cakes, in addition tocalcium, which is a fundamental nutrient, good for bones and roasting,each AFC cake line is supplemented with specific nutrients In addition, theingredients in AFC cake are also very suitable for those who care abouttheir body shape The amount of calcium in 100 grams of AFC cake meetsabout 50% of the body's daily calcium needs Therefore, consumers will becomfortable and secure about their body or health needs and theirfamilies

Origin: Produced directly at Kinh Do's factories.

Classification: The newly improved nutritional AFC cake is added with

potatoes to make the cake more delicious and crispier with manyattractive flavors AFC also meets specific nutritional needs with healthynutrients Depending on their taste and nutritional needs, consumers caneasily choose the right cake for them

 AFC Original supplement with Vitamin D to help the body absorbcalcium best

 AFC Hi-Fibre adds fiber to help the digestive system work well andmaintain a slim figure

 AFC Western is rich in DHA to help enhance thinking and memory

 AFC Active adds Vitamin E for youthful skin

 AFC Plain is low in sugar and helps protect the cardiovascular system

2.SITUATIONAL ANALYSIS

Strengths

Cakes have many different flavors such as: seaweed, wheat, vegetables,beef steak, green tea, cheese Each flavor or ingredient offers a differentbenefit, such as:

 AFC vegetables, seaweed: double the amount of fiber to maintain ahealthy digestive system for a slim fit

 AFC wheat flavor, beef steak flavor: calcium and vitamin supplementsfor strong bones

ð Meet many needs, different preferences of customers in Singapore.There are many types of bags, cake boxes with different weights: 300gbags, 200g paper boxes, 100g paper boxes, 60g mini boxes => manysuitable choices for each family

As a light food but with many nutrients such as calcium and fiber, it is verysuitable for the quite busy lifestyle of Singaporeans

The parent company is Mondelez international - an American multinationalfood company, very strong in snacks

Weaknesses

Not really active in machinery, equipment and materials.

Singapore's food source is completely dependent on imports, with nodomestic production The country does not impose any import taxes onfoods and beverages, except for alcoholic beverages and tobacco

On supermarket shelves in Singapore, we can see a growing number ofconvenience and ready-to-eat foods

Customs clearance for feed products is done electronically and the process

is completed in less than 48 hours

Expanding overseas market

Young population, busy lifestyle and attention to health, very suitable forAFC cake to penetrate into Singapore market

Threates

Singapore is a multi-ethnic country, leading to difficulties in consumption,difficulty in meeting demand because of many different needs of eachcountry

Compete with many other famous confectionery in Singapore

The initial penetration will be new, so it will be difficult to meet the needs

of customers in Singapore

The cost of raw materials, raw materials also change somewhat

Difficulty in creating a cake flavor suitable for Singaporean culinaryculture

3.ANALYSIS OF THE INTERNAL ENVIRONMENT

Internal enterprise

Kinh Do is one of the leading confectionery companies in Vietnam Thecompany's senior human resources are powerful, the Executive Board has

a vision, avoiding risks in the supply chain Most of the companies arehighly skilled and well-trained workers, which is Kinh Do's strong point tocompete with other companies

With the management divided into strategic subcommittees, humanresources subcommittee, salary and bonus subcommittee, auditsubcommittee, the company has clearly defined ranks and in each divisionwill fulfill its responsibilities and duties its service The rhythmiccoordination of staff, employees, and leaders according to the 5 corevalues set out by the company has helped Kinh Do build its image not only

in Vietnam but also in other countries export company

Competitors

Currently, in the confectionery industry, there are many domestic andforeign manufacturers The categories of cakes and candies on the marketare also diverse and rich in categories Confronting Kinh Do aremanufacturers such as Bibica, Hai Ha, Orion, Huu Nghi, etc

In Vietnam, although the market is very large, companies are still unable

to capture the full domestic market share for themselves The currentmarket leader Kinh Do only accounts for 20%, followed by companies likeBibica and Huu Nghi with about 14-15%, the rest belongs to foreigncompanies, importers and small companies other It can be seen that theconfectionery market not only has domestic competition, foreigncompanies have also begun to enter the Vietnamese market, the cakemodels are also more diverse, but the taste is also favored by the majority

of Vietnamese people

Vietnam is the 15th most populous country in the world with nearly 100million people, of which the population under 30 years old accounts for51.8%, this is the age with the highest demand for confectionery Besides,the average income of Vietnamese people is gradually improving, which isalso a factor that makes the food production industry increase Because ofthe high growth rate along with fierce competition from other companies,

the company will have many opportunities to meet the market demandand gain a number of loyal customers.

Kinh Do's products do not have much difference compared to othersuppliers, so customers choose based on the price and the age of thecompany This makes it more difficult for the company to compete bothdomestically and abroad Currently, many confectionery companies haveentered the market with preferential prices

Not only competing with domestic competitors, when exporting toSingapore, the company also has to compete fiercely with other crackersbrands such as Ritz, Plain, Levain, Pepperidge Farm, etc These are brandsspecializing in the production of cakes crackers are favored bySingaporean consumers In Singapore, the confectionery industry isinvested by many companies, from domestic enterprises to internationalenterprises It can be seen that Kinh Do will encounter many competitors

in the Singapore market However, AFC crackers also have the outstandingadvantage of diverse taste and are good for health

Suppliers

Most of Kinh Do uses domestic and imported raw materials in largequantities Raw materials account for up to 70% of the product's cost, sofluctuations in the supply of raw materials will greatly affect thecompany's profit In recent years, the price of raw materials in Vietnamhas increased sharply, especially the price of flour, which has had a period

of extreme fluctuations, causing difficulties for some businesses

Customers

In the market, customers are an important competitive goal for Kinh Do, itaffects all production and business activities The company's customersare divided into 2 groups: consumers and distributors (wholesale andretail)

 With the group of customers as consumers, the company is dividedinto 3 main areas depending on the needs and purposes of thecustomer group Urban market area, rural market area, and

mountainous market area Each market area, based on differentincome levels and needs, the company also offers a diverse productportfolio to meet all needs of customers.

 With the group of customers being distributors, this is the company'smain customer group, consuming most of the company's products.Kinh Do owns a large distribution system, second only to Masan andVinamilk With more than 300 distributors and 200,000 retail points,Kinh Do has become the company with the largest distribution system

in the industry

In addition, the company's distribution network also includes largesupermarket chains such as Co-op Mart, Big C, Metro, along with its ownchain of stores, Kinh Do Bakery Thanks to the large distribution network,customers can access the company's products easily and conveniently

4.ANALYSIS OF THE EXTERNAL ENVIRONMENT

Demographic

Singapore is a country with a large number of people of working age orolder, in addition to international students and immigrants coming here towork Demand for nutritious, convenient, and quick-to-use foods has alsoincreased to meet Singapore's rapid growth

AFC crackers will become a great choice to meet the convenience andnutritional needs of Singaporeans AFC is not only a snack for youngpeople but also a nutritious dish with high calcium content and fibersource from oats, which helps in digestion and helps keep bones strong.The population in Singapore in the future is predicted to have an agingpopulation However, the number of immigrants such as workers andinternational students is the young audience that the product targets

Economic

Vietnam's economy is developing and has a certain position as one of themost dynamic countries in the Asia Pacific It is a condition for Vietnameseenterprises to develop and bring their products to penetrate internationalmarkets

Singapore is a target that many businesses aim for Singapore is aneconomically developed country, ranked 4th in Southeast Asia Stronglydeveloping in two fields of industry and service, attracting a large number

of domestic and foreign workers People's quality of life has increased, andhealth protection is also a need that people pay attention to AFC crackers

is a brand that brings essential nutrients to consumers at a reasonableprice

Socio-Cultural

Singapore is one of the Southeast Asian countries possessing manyethnicities, religions, and rich cultures, this diversity creates strengths forthis country These cultural features are harmoniously mixed to create thecharacteristics of Singapore but still have bold Asian beauty

Seizing the strength from Singapore, Mondelez Kinh Do Company candevelop AFC crackers product line here With the advantage that AFCbiscuits are rich in nutrients, convenient, easy to use, and bring manyfamiliar and delicious Asian flavors, it will be a great choice for Singaporeconsumers Besides, this diversity can also become a barrier to be able tomeet the huge demand of the market

Technology

Singapore is one of the 6 most modern cities in the world With its modernsystem and technology, it has helped the country to develop more, thequality of life of the people is more assured This is an opportunity tocreate a premise for businesses to develop

AFC crackers when coming to Singapore will be improved productionthanks to this country's modern technology Not only ensure productquality but also enhance value and attract consumers here

Ecological

Singapore is a country with a fairly rich ecosystem, meeting the tourismneeds of the market However, the natural factors to meet the agriculturalindustry are not enough, this is also the reason why this country focuses

on developing industry and services

The issue of sourcing quality and reasonable ingredients became achallenge for Mondelez Kinh Do when bringing AFC crackers to theSingapore market

Political forces

Vietnam is a country under a socialist regime, a political system with oneParty as the leader A stable political environment is a condition for freeenterprises to develop Besides, Vietnam's role in the world is increasinglybeing consolidated, which is an opportunity for businesses to promote theimport and export of goods Kinh Do is a bright candidate with many years

of experience and rich nutritional products

The Singapore market is a welcoming place for businesses with qualityproducts from other countries This is an opportunity for Kinh Do to expandits market in general and the consumer market for AFC crackers inparticular

5.STP STRATEGIES

Segmentation

Age: 25-50Gender: the majorityare married women and manage

household chores.Income: financial independence

Often interested and

want to try new

price of the product

Often interested andwant to try new products

The majority will be interested in the price and quality of the product

The majority will be interested in the price and quality of the product

Pay attention to product origin and product safety

Share and recommend good products to others

Try the product as

many times as the

taste of the product

Less actively learn product information and pay little

attention to them

They can buy the product again

Recommend to friends and colleagues

Select products by price, taste

They are interested

in product information but have little time to learn

They are the ones who buy the productdirectly, but many members of

different ages in the family use it

togetherRecommend the product to friends, family members

Targeting

AFC crackers are delicious and nutritious products suitable for consumers

of all ages However, the target customer that the brand is targeting AFC

is housewives These are difficult customers when it comes to choosingproducts, but they are the ones who help the product get closer to othercustomer segments through the introduction and common use of familymembers In addition, with the right quality and price of AFC crackers, itwill easily conquer housewives when using the right marketing methods

Positioning

The AFC crackers brand has defined for itself two visions "For a better lifeevery day" and "Taste for life", intending to bring the product closer toconsumers Therefore, the positioning of the AFC crackers brand is quitecheap with excellent quality, suitable for many ages, delicious taste, andmany healthy nutrients

6.INTERNATIONAL MARKETING GOALS AND OBJECTIVES

International Marketing Goals

Increase brand awareness: businesses have just entered a new market The most importantthing is the awareness of customers about the brand and products in the market This will helpthe product be used by many people have access to the company's AFC cake products andattracts consumers to look for AFC cakes when intending to buy confectionery products KinhDo's goal is to increase the level of product advertising and popularize the AFC cake brandamong users and customer segments Through campaign communication, marketing canmeasure the level of brand awareness and product interest of users in this country Thiscondition determines the success of the product when entering a new market

Increase sales: improving the level of consumer awareness about the product will contribute

to an increase in sales When sales increase, it means that the strategies and goals of the