Group 6 marketing management 63e international marketingproduct export plan for dh foods company

The current product lines of Dh Foods include: • Tay Ninh Dipping Salt speciality • Sauce speciality and Chili sauce • NATURAL Spices specialty • NATURAL Cooking & Marinade spice • Dh Fo

NATIONAL ECO OMIC U N NIVERSITY

TABLE OF CO TE T N N

GENERAL I N TRODUCTIO N ABOUT DH FOODS, VIET AMESE N

EN VIRO MENT & PRODUCT PORTFOLIO N 5

4.2 Product lines that have been exported 10

4 Comparison between Polish market and Canadian market 12

1 General Polish Environment 18

1.3.2.The stability in the exchange rate between Vietnam Dong and currencies used

2.1 Current partner of Dh Foods in EU markets 30

2.2 International Partner Matrix 302.2.1.The performance of the distributor partner 302.2.2.The general attractiveness of the market where the partner operates 31

CHAPTER I GENERAL I N TRODUCTIO N ABOUT DH FOODS, VIET AMESE N

EN VIRO MENT & PRODUCT PORTFOLIO N

1 Dh Foods

1.1 Company Overview

CEO Nguyen Trung Dung started DH Foods Co Ltd in 2012 In its 11 years of business,

DH Foods has established itself as the premier, esteemed company specializing in regional spice specialties from Vietnam Its primary offerings are authentic, traditional Vietnamese spices and sauces, including dipping sauces, salt, and spices for cooking and marinating

Dh Foods believes that using high-quality spices would enhance the flavor of food and make people happier The spices from Dh Foods are also regional delicacies that showcase some of Vietnam's most notable cultural characteristics

With its current 9 product lines and 170 goods, DH Foods is generating a lot of buzz and holding a dominant position in the home market The products of DH Foods are specifically categorized to fit each specialty in various places

Since 2016, DH Foods has successfully exported to Japan, beginning a journey to deliver Vietnamese spices to 98 nations with demanding requirements: Korea, Japan, the Netherlands, Australia, the United States, the United Kingdom, Germany, Russia, France and others on many continents

1.2 Missions & Goals

• DH Foods is acutely aware of the negative impact artificial substances have on public health As a result, DH Foods strives to produce goods that maintain the original hue and flavor of each ingredient

• DH Foods works to educate customers on the value of thoroughly checking the ingredients before buying any product in order to choose those that are safe

• Every single DH Foods product is 100 percent pure

• As a result of consistently adhering to the standards of "No Artificial Color, No Preservatives, No Foreign Matter" since its inception, Dh Foods has emerged as the consumer's top option for quality and safety

1.3 Company's business activities

Although business activities were greatly affected during the Covid pandemic, Dh Foods' operations still achieved many achievements:

• Dh Foods experienced good business outcomes in 2021 In the context of the Covid-19 epidemic, the company generated income of 144.2 billion VND, up 51.6% from 2020 and 14.5% more than anticipated

• A partnership agreement between Dh Foods Joint Stock Company and Heritage Beverage was inked in the early months of 2022, opening the US market to Vietnamese regional specialty spices

• Dh Foods had the distinction of taking part at VietFood, the 26th International Food and Beverage Exhibition, in 2022 Additionally in 2022, DH Foods organizes the Shareholders' Meeting with much-needed future direction to revamp the business strategy

in order to dominate the global market

• DH Foods began its journey to the great ocean in 2016 with problems and difficulties, but the company has gradually demonstrated its potential to introduce Vietnamese products to the rest of the world After passing the "test" from the European market on procedure, manufacturing, factory, and so on, DH Foods obtained the order in 2017; first with a 12,000 USD value

• By 2018, DH Foods had continued to pass the stringent "test" imposed by the Japanese market, which threatened to cancel the contract if DH Foods did not satisfy the product quality requirements to which they had pledged to conclude

• DH Foods expanded its journey to many more nations after acquiring the trust of demanding markets, including the United States, Australia, Russia, the United Kingdom, Korea, Japan, France and Germany DH Foods consolidates its resources and continues to prepare for the internationalization of Vietnamese products from 2020 to 2021

1.4 Resources

1.4.1.Human Resources

• As of 2023, Dh Foods has a team of over 400 employees, including production workers, quality control inspectors, marketing and sales staff, and administrative personnel

• The company has a strong commitment to employee training and development, and offers a variety of programs to help employees learn new skills and advance their careers

• The company also has a number of initiatives in place to promote a healthy and productive work environment Instead of managing human resources with discipline through KPIs, Mr Dung experimented with the 'heart-warming' management style: training, guidance and inspiration

1.4.2 Financial resources

In 2022, Dh Foods had a revenue of $12 million and a net profit of $2 million The company has a strong financial foundation, with over $10 million in cash and cash equivalents, as well as a good track record of profitability, and has been able to reinvest its profits in new products, technologies, and marketing initiatives Dh Foods is also debt-free, which gives it more financial flexibility to invest in its future growth

Dh Foods financial performance in 2021:

• Total revenue: 144.2 billion VND (about 6.4 million USD), an increase of 51.6% from

2020

• Net profit: 10.8 billion VND (about 450,000 USD), an increase of 21.9% from 2020

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• Dh Foods has set a target of achieving total revenue of 190-215 billion VND (about 8-9 million USD) and net profit of 16-18 billion VND (about 650,000-720,000 USD) in 2022

1.4.3 Physical resources

• Dh Foods has a modern production factory - Le Minh Xuan Factory in Ho Chi Minh City The facility is equipped with state-of-the-art machinery, including a high-speed bottling line and a warehouse with a capacity of 1,500 tons

• The company also has a network of distribution partners in 8 countries

• The company is in the process of expanding its production capacity to meet the growing demand for its products

1.4.4 Brand Reputation

• Dh Foods has a relatively positive brand reputation in Vietnam and in export markets

• The company is known for their high-quality products, their commitment to safety and quality, and innovative marketing campaigns For example, the company has been featured in televisions, magazines and newspapers, actively participated in fairs and exhibitions in Vietnam and in other countries, and won several awards for their products and business practices

1.5 Suppliers

Dh Foods' spices are specialties with typical cultural features of Vietnam's regions The Company's raw material sources are mainly cooperated with typical agricultural products from the North region to the South region in Vietnam such as pepper from Pleiku, chilli from the Central region, salt from the Central region… So, their suppliers are mainly the farmers in each region Moreover, the company has cooperated with farmers to establish a granary of raw materials that benefits both farmers and Dh Foods to ensure the quality of the ingredients and the price

2 Vietnamese environment

Export incentives are understood as measures, policies, and financial assistance from the government to domestic companies to promote exports and support the country's balance of payments Measures to encourage exports may include direct subsidies to reduce the price

of exported goods (export subsidies), tax incentives (tax exemption on profits earned from exports), and provision of credit (exemption of profits from exports) using preferential exports, low interest rates) and financial guarantees

Currently, the Vietnamese government has many policies to promote the export of goods abroad by domestic companies Some notable policies include the following:

• The imposition of low or 0% tax rates on Vietnamese goods as agreed in a total of 17 FTAs that Vietnam has been negotiating, signing, and implementing is a driving force to boost export activities of businesses

• Export Promotion Programs: Vietnam still maintains several forms of export subsidy under Government programs such as reducing or exempting taxes; providing direct financial support (especially for new exporters) to the export of goods to new markets or

to goods affected by price fluctuations; and granting export rewards (under Trade Ministry Decision No 02/2002/QD-BTM) The Export Support Fund is maintained to support, encourage and promote export

• Export Credit and Finance Support: The government, through institutions like the Vietnam Export-Import Bank (Eximbank) and Agribank, provides export credit and financing support to help businesses access the necessary capital to expand their export activities

• Investment in Infrastructure: Infrastructure development, such as the expansion and improvement of ports, transportation networks, and logistics facilities, is a key part of facilitating efficient export processes Vietnam has a lot of infrastructure constantly being built, including road systems, seaports, airports,

• Trade Promotion Agencies: Vietnam has several trade promotion agencies that assist businesses with export-related activities These agencies help with market research, trade missions, and participation in international trade fairs and exhibitions

• Customs Simplification: Streamlining customs procedures and reducing red tape make

it easier for companies to export their products The Vietnamese government has made efforts to simplify and modernize customs processes

3 SWOT

=> Although promoting activities of Dh Foods are not effective compared to experienced competitors in the markets, the company's business activities at this time have shown the position of the brand in Vietnam and other nations Thereby, the company is strong enough and should seize the opportunity by continuing to introduce its products to the international market

4 Product Portfolio

4.1 Product Portfolio of Dh Foods

Dh Foods have a wide range of product lines The current product lines of Dh Foods include:

• Tay Ninh Dipping Salt speciality

• Sauce speciality and Chili sauce

• NATURAL Spices specialty

• NATURAL Cooking & Marinade spice

• Dh Foods' product coverage in the

Vietnamese market and foreign markets is

increasingly expanding

• Dh Foods has a diverse product

portfolio and the product quality meets

international standards

• Dh Foods has been effectively and

stably conducting business operations in

Vietnam and 9 other countries

• The quality and selling price of the Dh Foods products depend entirely on the Le Minh Xuan factory

• Product quality depends on many different raw material sources, which can

be affected by factors such as weather, crops, diseases,

• Promoting activities of Dh Foods are not as effective as major competitors such

as Cholimex, Ajinomoto, Knorr,

• The spice market in Vietnam is vibrant

and Vietnamese families have a great need

to use spices in meals The average annual

growth rate of this industry is forecast to

continue to increase in the coming years

• In recent years, the Vietnamese

government has been promoting

businesses participating in exporting the

seasoning industry to maintain its position

as the leading exporting country

• Nowadays, competitors appear more and more and new product types are increasingly diverse

• The large and rapidly changing spice market like Vietnam requires Dh Foods to adjust and be more active in promoting activities to avoid being kicked out of the spice market

• NATURAL Dipping Salt speciality

• Sate Sauce

• Soup Base for cooking

4.2 Product lines that have been exported

Currently, there are 4 product lines exported by Dh Foods to foreign countries Specific information is given in the following table:

4.3 The chosen product line

As illustrated in the table, Dh Foods mainly exported 2 types of their product lines including: Sauce speciality and Chili sauce, and Tay Ninh Dipping Salt speciality These 2 spice lines of Dh foods have received good feedback in the countries where Dh foods exports Furthermore, this is the most prominent product line of Dh Foods and is also the product line that makes the brand famous

Our group suggested choosing the Sauce Speciality and Chili sauce line of Dh Foods to export This product line is suitable for many cuisines around the world, including Asian cuisine and European cuisine The Sauce Speciality line includes 19 different sauces such as: pineapple sauce, mango sauce, orange sauce, salted egg yolk sauce, cheese sauce, kumquat sauce, black pepper sauce, With Dh Foods dipping sauce, customers can use it instantly or use it as a marinade for grilled dishes and vegetables in the simplest and most convenient way

Tay Ninh

Dipping Salt

speciality

Sauce speciality and Chili sauce

NATURAL Spices specialty

NATURAL Cooking & Marinade spice

CHAPTER II INTERNATIONAL MARKET SELECTIO N

1 A look at Dh Foods' current markets

Currently, Dh Foods products have appeared in nine markets: US, UK, Germany, Netherlands, France, Russia, Japan, Korea, Australia

It can be seen that Dh Foods tends to export its products to European, American or East Asian countries that have high incomes, large enough populations, and have signed trade agreements with Vietnam The following table offers some detailed information about the above markets:

From the table above, we can see that Dh Foods has only exported products to markets that have signed at least FTA with Vietnam, with the only exception being the United States, but with whom an FTA is being negotiated The reason is that US has an extremely large spice market and holds the largest overseas Vietnamese community

In addition, by taking the smallest figure of each factor, we can set minimum norm for each factor as follows:

- Has the population of at least 17,942,700 people

- Has the annual wages of at least $14,771

- Has the revenue in sauces & condiments of $1.04 billion

- Has the Vietnamese community population of at least 24,594 people (1)

Population

Annual Wages in

2022 (in

US dollars)

2023 Sauces &

Condiments Revenue (in billion US dollars)

Vietnamese Community Population

Has at least one FTA with Vietnam

- South American (2 countries)

- North American (2 countries)

- Oceanian (1 country)

- Middle East (1 country)

These adds up to 46 countries

3 Second Screening

We continue to filter out countries that satisfy all four requirements in (1)

- Out of 46 countries obtained after first screening, 14 of them has a population of at least 17,942,700 people, including China, India, Indonesia, Mexico, Philippines, Thailand, Italy, Myanmar, Spain, Canada, Poland, Malaysia, Chile, and Kazakhstan

- Out of these 14 countries, 6 of them has an annual wages exceeding $14,771, including Canada, Italy, Spain, Poland, Chile, Mexico

- 4 of them has the revenue in sauces & condiments of at least of $1.04 billion, including Canada, Poland, Mexico, Italy

- The only two countries that satisfy all four requirements are Poland and Canada

4 Comparison between Polish market and Canadian market

The following table gives an overview of the spice market in Poland and Canada The 7 factors used for comparison here include:

Country Canada Poland

Market Size

Revenue in the Sauces & Condiments

market amounts to US$5.02bn in

2023

In relation to total population figures,

per person revenues of US$129.80 are

generated in 2023

The average volume per person in the

Sauces & Condiments market is

expected to amount to 18.7kg in 2023

Revenue in the Sauces & Condiments market amounts to US$1.64bn in 2023

In relation to total population figures, per person revenues of US$43.63 are generated in

2023

The average volume per person in the Sauces & Condiments market is expected to amount to 10.4kg

Revenue is expected to show

an annual growth rate (CAGR 2023-2027) of 9.68%.Poland market is growing with a faster rate

Buying Power

The average salary of Canadians is

about 59,300 dollars a year, among

the highest in the world This enables

people to invest more in their food,

with demand for organic foods

increasing

The average income of Polish people is approximately 32,527 US dollars a year This places Poland in the group of developed countries The rapid growth in average income also gives Polish people more options in choosing food and spices

Canadians, with the higher incomes and diverse immigrant

communities, have a greater buying power

FTA

CPTPP: CPTPP facilitates the export

of spices from Vietnam to Canada by

reducing or eliminating tariffs on

many types of items This helps

reduce export costs and makes

Vietnamese spice products more

competitive in the Canadian market

EVFTA: Poland is a member

of the European Union (EU),

so exports to Poland can benefit from the EU's free trade agreements with other countries This could reduce

or eliminate tariffs on spices from Vietnam

Both countries have signed FTAs with Vietnam, however, for agricultural or food products EVFTA has great advantages for exports

to Europe, while CPTPP can be useful for other industrial products

Market Access

Technical standards and food

safety: Canada has strict standards for

food safety and product quality Spice

exports need to comply with these

standards, including food safety

testing, quality management and

compliance with production and

packaging standards

Certificates and documents: To

import spices into Canada, it is

necessary to provide certificates of

origin, food safety certificates and

other related documents

Product testing and quality

assurance: Before export, spice

products may need to undergo quality

assurance and testing to ensure that

they meet Canadian standards

Labeling and packaging: Label

design and product packaging must

comply with special Canadian

regulations This includes information

about ingredients, origin, expiration

date, and other important information

EU food safety and technical standards: Poland, as part of

the EU, sets strict food safety and technical standards However, with exports to a number of other EU markets, the quality of the product has been certified by the EU

Exporting to the Polish market is currently more favorable, with the support of trade agreements between Vietnam and the EU, as well as the quality of Dh Foods products having been verified in a number of markets in other members of this alliance

Competitive

intensity

The spice market, especially Asian

spices in Poland today, is extremely

competitive Immigrants from China

and India are two large groups among

the immigrant communities here With

a rapidly growing population, they

brought cooking ingredients as well as

spices from their homeland to Canada

Supermarkets here also provide a full

range of spices imported from Asia to

meet the growing culinary diversity in

this country

Market competition is not too fierce In fact, most Asian spices sold in Poland are often imported individually, or imported indirectly through countries in the region such as Germany or France, instead of imported directly in large quantities

5 Marketing attractiveness evaluation

* Poland

It can be seen that, in terms of competition, the Polish market is the least fierce market, when compared to a market that already has imported products, and a market that has a rich amount of domestic spices with low price

Canada is of a better favor However, it should be noted that this is not

a key factor, as the world average is -0.07, and any country with this index greater than 0 is considered quite stable

Criteria Poor (1)Very Poor (2) Acceptable (3) Good (4) Good (5)Very Weight Factor ResultMarket

* Canada

6 Conclusion

Based on the evaluation and comparison table above, the team concluded that DH Foods should export its dipping sauce products to the country with the higher result, which is Poland As demonstrated by the criteria listed in the table, it is possible to infer that Poland

is a promising market for DH Foods to develop in the long run

Criteria Poor (1)Very Poor (2) Acceptable (3) Good (4) Good (5)Very Weight Factor ResultMarket

CHAPTER III GENERAL POLISH E N VIRO MEN N T & SPICES MARKET

1 General Polish Environment

1.1 Introduction of the Polish Market

With a population of over 40 million people, Poland is one of the most populous countries in Europe

The country has a profound historical legacy, with a timeline that spans over a thousand years Having gained its independence in 1918 after World War I, the 20th century brought significant challenges to Poland, including the devastation of World War II and the imposition of communist rule by the Soviet Union Nevertheless, Poland emerged from communism in 1989 and rapidly transitioned into a democratic republic, joining the European Union in 2004 This history is the foundation for Poland to receive a large number

of immigrants from Asian countries, of which Vietnamese are the largest group here Today, Poland is a dynamic and economically developed nation with a diverse and growing economy Its prosperous economy and sound policies make Poland a remarkable market for companies looking to import their goods into the country

1.2 Demographic Environment

The demographic of Polish customers using spices can vary widely, but there are some general trends and preferences that can be observed:

• Population: The current population of Poland is 40,761,232 as of Saturday, October

28, 2023, based on Worldometer elaboration of the latest United Nations data 55.2 % of the population is urban.

• The median age in Poland is 40.0

years This means this is a country with

an aging population Spice usage is

prevalent across all age groups in Poland

However, younger generations might be

more open to experimenting with

international cuisines and exotic spices In

addition, the high median age also affects

Dh Foods' promotion method when

entering this market

• Gender: There's generally no significant gender bias when it comes to spice

consumption in Poland Both men and women use spices in their cooking

• Income Level: Polish people earn USD 32,527 per year on average This means they are in the group of high-income countries as defined by the World Bank Higher-income households might be more likely to afford a wider variety of spices, including exotic and

imported ones, while lower-income households might stick to more basic and affordable options

• Ethnicity: European and other immigrant communities, including Vietnamese

community

1.3 Economic Environment

1.3.1.Overview of Poland’s Economic

The economy of Poland is an industrialized, mixed economy with a developed market that serves as the sixth-largest in the European Union by nominal GDP and fifth-largest by GDP (PPP).Poland boasts the extensive public services characteristic of most developed economies

Since 1988, Poland has pursued a policy of economic liberalization but retained an advanced public welfare system This includes universal free public healthcare and education (including tertiary), extensive provisions of free public childcare and parental leave The country is considered by many to be a successful post-communist state Polish people earn USD 32 527 per year on average, less than the OECD average of USD

49 165 Nevertheless, it is still classified as a high-income economy by the World Bank, ranking 21st worldwide in terms of GDP (PPP), 21st in terms of GDP (nominal), and 21st in the 2023 Economic Complexity Index Poland's economy is considered the strongest economy among countries in Eastern Europe (after Russia), with an annual economic growth rate of over 6.0%

1.3.2 The stability in the exchange rate between Vietnam Dong and currencies used in Poland (EURO)

The falling EUR affects many exporters to Europe Accordingly, all customers in Europe pay in Euro, and Vietnamese businesses that receive money back home must change it to

US dollars Besides, the local currency zloty is also used The Euro affects the zloty in a proportional manner Therefore, the fact that the Euro falling almost equal to the USD means that the export value of each shipment decreases accordingly Meanwhile, profits fall

as they are affected by input costs such as gasoline, raw material prices, and labor costs that have all increased

However, according to the chart, it can be seen that except for the period November 2022, these two currencies are quite stable, maintaining at about 26,000 VND/Euro and 5,800 VND/zloty

October-1.4 Sociocultural Environment

Some notable sociocultural factors can be mentioned as follows:

• The growing importance of millennials and Gen Z consumers: Millennials and Gen

Z consumers are increasingly becoming the dominant force in the Polish market These consumers are more open to new technologies and brands, and they are more likely to shop online Brands that want to succeed in the Polish market need to appeal to these consumers by offering innovative products and services that are available online

• The increasing demand for sustainable products: Polish consumers are becoming

more aware of the environmental impact of their choices This is leading to an increasing demand for sustainable products, such as organic food and fair trade clothing Brands that want to succeed in the Polish market need to offer sustainable products and services

• The growing popularity of foreign brands: Polish consumers are becoming more

open to foreign brands This is due to the increasing availability of foreign brands in Poland, as well as the growing popularity of online shopping Brands that want to succeed

in the Polish market need to have a strong presence in Poland, either through physical stores or online

1.5 Technological Environment

Some notable technological factors include the following:

• The rise of e-commerce: The growing popularity of online shopping is having a major

impact on the Polish market In 2021, e-commerce sales in Poland reached 61 billion PLN (about 14 billion USD), and this number is expected to continue to grow in the coming years Brands that want to succeed in the Polish market need to have a strong online presence and offer convenient and reliable delivery options

• The popularity of social media: Social media is playing an increasingly important role

in the Polish market Brands are using social media to connect with consumers, promote their products and services, and build relationships with their customers Brands that want

to succeed in the Polish market need to have a strong presence on social media and use it

to engage with consumers in a meaningful way

1.6 Political Environment

Currently, this country is a member of many alliances inside and outside Europe Besides Poland's own laws, the most important union that can influence the export of goods into the country is the European Union

1.6.1 EU

1.6.1.1 Food Safety

To be sold on the European market, food products need to meet a number of requirements

of the European Commission and European food safety authorities Two notable standards for DH Foods products include chemical standards and biological standards

* Biological Safety

Biological hazards include bacteria, viruses, parasites, prions, biotoxins

A comprehensive legal framework has been established by the European Commission to increase the level of food safety in Europe, building over time European consumers' confidence while preventing food crises It is based on scientific advice delivered by the

European Food Safety Authority (EFSA)

The standards are applied with both local and imported food

* Chemical Safety

Food Additives:

Chemical substances play an important role in food production and distribution As food additives, they prolong the shelf life of foods and, as colours and flavourings, they may make foods more attractive Other chemicals are pharmacologically active and therefore used to fight diseases on crops

Pesticide:

EC Regulation No 396/200517 of 23 February 2005 updated in 2021 establishes maximum residue levels of pesticides in food products All food products will be expelled from the European market if they contain illegal pesticides or pesticide residues higher than the limits set by the Regulation

1.6.1.2 Tax Policies and Tax Rate

Since the early 1990s, Poland's tax system has been gradually revised with the intention

of encouraging foreign investment in Poland and creating more jobs for its citizens The reform of the tax system is carried out in the process of Poland's compliance and harmonization of its legal provisions with EU law

All companies intending to have a commercial presence in Poland or carry out business activities in the country are issued a tax code by the tax authority in the area where their business is registered

The tax system in Poland is uniform throughout and there are only minor differences between localities Normally, foreign companies and individuals must pay a prescribed tax rate equal to that of Polish citizens or legal entities

* VAT: VAT was introduced in Poland in 1993 Since May 1, 2004, this tax has been

harmonized with the common EU VAT system The VAT rate of 22% is calculated on the value including import tax of most items A 7% VAT rate is applied to products such as food, essential agricultural and forestry products, pharmaceuticals, children's goods, clothing, musical instruments, publications, and some types of machinery agricultural machinery and construction materials

* Import Taxes: Poland is compliant with the General Agreement on Tariffs and Trade

(GATT) and has a HS tax system Polish Customs regulations on import tax rates are built

on the basis of relevant directives of the expanded EU At the present, most goods imported into Poland are subject to a tax rate of 30%