KẾ HOẠCH MARKETING QUỐC TẾ CHO ĐỒNG HỒ CURNON

Overview brand and main product Curnon is a product line of a project of a number of young Vietnamese to bring high-class products from the country to fashion-loving consumers.. With co

UNIVERSITY OF FINANCE - MARKETING

UNIVERSITY OF FINANCE - MARKETING

HCMC – October 2019

Contents

1 Introduction 1

1.1 Overview brand and main product 1

1.2 Overview brand and main product 2

1.3 Primary entry strategy 2

2 Research Methodology 3

2.1 Qualitative methods 3

2.2 Quantitative methods 5

3 Situational Analysis 6

3.1 Company Analysis 6

3.2 Market Analysis 7

3.2.1 Economic Environment 7

3.2.2 Social and Cultural Environment 8

3.2.3 Demographic Environment 9

3.2.4 Nature of Demand 11

3.3 Competitors Analysis 11

4 SWOT Analysis 13

5 Objectives 15

6 S-T-P Strategy 16

7 Marketing-Mix Strategies and Tatics 18

7.1 Product Strategies 18

7.2 Place-Distribution Strategies 26

7.3 Price Strategies 31

7.4 Promotion Strategies 35

8 Planning Budget 38

8.1 Planning Assumption 38

8.2 Forecast Sale and Cost 38

8.3 Forecast Profitability 40

9 Implementation & Control 41

10 Reference 41

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1 Introduction

1.1 Overview brand and main product

Curnon is a product line of a project of a number of young Vietnamese to bring high-class products from the country to fashion-loving consumers Up to now, most high-end watches in Vietnam are mostly imported or carried by foreign brands With concern about quality, beautiful, luxurious, youthful and stylish watches, a group of young people have cherished and created a unique Vietnamese watch brand Surprisingly, Curnon watches with minimalism design made many people feel extremely excited and eager to own At the beginning, although there was confidence

in the product, there were quite a few people who doubted the possibility of developing a Vietnamese brand among many foreign brands However, contrary to those doubts, Curnon became a phenomenon for young people and fashion watch lovers because of its minimalist but classy design, and the price is reasonable with the income of many people number of Vietnamese people Although manufactured

in Vietnam with Vietnamese skills, Curnon's products are not inferior to international fashion watch brands In addition to beautiful design, Curnon's apparatus is also rated

as "genuine", 3ATM water resistant, equivalent to a rating equivalent to a water resistant level of 30m This means that with a Curnon watch, you can not worry when

go in the rain, wash your hands, fall into water Not to mention that, Curnon also regularly launches product lines with different personalities for many consumer So far, Curnon has created a community that loves the product lines of this brand quite aggressively Many of Curnon's product lines are in the process of being completed, but the number of previous orders has exceeded expectations Even, many product lines "sold out" and forced Curnon to restock after a while of launch After 3 years of operation, Curnon has officially had 4 stores in Hanoi and Ho Chi Minh City and one e-commerce channel to online shopping

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1.2 Overview brand and main product

Cambodia is predicted to grow 7.1% in GDP in 2019 while the average income

is expected to be 1500 USD This mean the Cambodians are wealthy enough to create new demand for jewelry like wrist watch

Cambodia and Vietnam are both members of ASEAN who are benefit from the CEPT

Cambodians who are living in Phnom penh have a huge demand of using wrist watch because the middle class and upper class are working there

Geographic advantage

The object that Curnon targets is young people who love to experience, enthusiasts of elegant fashion watches Recognizing that Cambodian youth can also experience Curnon watches and Cambodia markets, customer segment is almost similar to Vietnam

1.3 Primary entry strategy

WHOLLY OWNED SUBSIDIARY

- Fully control every activities of the company in Cambodia

- Getting maximum the profit

- Avoiding conflict of share in the civil of the company

- Reacting problems in time

- Taking all the risk from the new market

Preparing For the Focus Group:

Carefully develop your focus group questions Focus group should generally last 1 to 1/2 hours, which is usually enough time to cover 5 or 6 questions

Call potential participants to invite them to the meeting (e.g., age group, status

in a program, etc.) Select participants who are likely to participate in discussions and who don’t all know each other

Send a follow-up invitation with a proposed agenda, questions up for discussion, and time/location details

Three days before the focus group, call each participant to remind them of the meeting

Planning the Session:

Schedule a time that is convenient for most people Plan the focus group to take between 1 or 1/2 hours Lunchtime or dinnertime is usually a good time for people, and serve food, they are more likely to attend

Find a good setting, such as a conference room, with good airflow and lighting Configure the room so that all members can see each other Provide nametags as well

as refreshments If focus group is at lunch or dinnertime, be sure to provide food as well

Set some ground rules for the participants that help foster participation and keep the session moving along appropriately

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Make an agenda for the focus group Consider the following: Welcome, review

of agenda, review of the goal of the meeting, review of ground rules, introductions, questions and answers, and wrap up

Facilitating the Session:

Introduce company and watches lines of Curnon

Explain company need and reason for recording the focus group discussion Carry out the agenda

Carefully word each question to the group Before a group discussion, allow everyone a few minutes to carefully record his or her responses or answers Then, facilitate discussion around the answers to each question, one at a time

After the discussion of each question, reflect back to the group a summary of what you just heard If you have a note-taker/co-facilitator, he or she may do this Ensure even participation among the group If a few people are dominating the conversation, then call on others Also, consider a round-table approach in which you

go in one direction around the table, giving each person a chance to answer the question

Close the session by thanking the participants and telling them that they will receive a copy of the report generated as a result of the discussion

Immediately After the Session:

Verify that the audio or video recorder worked throughout the entire session Make any additional notes on written notes

Write down any observations was made during the session, such as the nature

of participation in the group, any surprises of the session, where and when the session was held, etc

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2.2 Quantitative methods

Test Markets

Steps to Implement a Test Market:

Set the Marketing Objectives: (Next chapter) Objectives can be based on the following quantitative measures: Market Share, Sales Volume, proportion of the target market who try the product or make repeat purchase, length of the purchase cycle, levels of consumer satisfaction, distribution levels achieved, etc

Select the Test Market type: Controlled Test Markets

Controlled Test Markets: Provide us with an artificial testing venue that is low

price Two companies offer controlled test markets: ACNielsen's Scantrack and Information Resources Inc.'s BehaviorScan Controlled test markets are used most often with new product introductions With a controlled test market, the research supplier offers us a panel of stores in Cambodia Suppliers monitor the checkout scanner data to measure initial and repeat purchases as well as the sales of competitive products Distribution of the marketer's brand is "forced" into these stores This has

an advantage and disadvantage The advantage is that distribution is guaranteed The disadvantage is that we cannot gauge retailer's reactions to the new product Other disadvantages of controlled test markets are that competitors can look at the new product before its national launch Another concern is that even though the Scantrack and BehaviorScan propriety models are very sophisticated, it is questionable whether the shoppers at the test stores actually represent "average" targeted consumers for the brand being test marketed

Establish a budget: include the cost to produce the product for the test market, all research costs, and all marketing costs, including the production of promotional materials and the cost to distribute promotional messages

Develop detail test plans: These plans cover manufacturing, target market definition, product formulation, distribution, pricing, and promotion

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Select the Test Markets: Marketing Department typically will require two test markets and a control market Test markets should be geographically dispersed are provide a good representation of the national target market The test market should run for 6 to 12 months, or longer for products with a long purchase cycle The test markets should have a wide variety of media outlets

Execute the Test Plan

Analyze the Results

With an initial charter capital of VND 1 billion, the company is a startup project

of young investor Quang Thai, who is also the CEO of the company After nearly two years of unsuccessful business, Quang Thai has called for funding from the Shark Tank Vietnam program, to increase the enterprise value to over 20 billion VND, and also increase product awareness for consumers

Being skeptical about the product that was worn on him, made in Vietnam, but importing Japanese machines and completely assembled in China, but to confirm the quality, CURNON showed customers the quality of service and care Customer service is extremely good in Vietnam Famous watch companies such as DW, or Curles, are assembled and processed in a third country like China, simply because of cheap labor costs and China had a lot of experience in watchmaking Up to the present time, the product has not been strongly influenced by quality, besides CURNON always listens to customers, adding some textures such as Trong Dong to add aesthetics to the product

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Curnon currently has 4 large stores in 2 areas: Ha Noi and Ho Chi Minh City HCM, and a major distributor in Can Tho Last year's revenue reached over VND 5 billion, equivalent to more than 2300 units sold, the profit margin was 23% with an average price per product of VND 2,100,000 Sales from nearly 70% are through websites, websites, and the rest are retail and distribution to distributors After the first round of fundraising, Curnon has been building more stores of the company in Hai Phong or Da Nang, in order to serve consumers' desire to buy directly

3.2 Market Analysis

3.2.1 Economic Environment

• GDP: 24.523 bill USD

• Inflation: 2.5% (2018)

• Developing rate:7.5% 2018e

• GDP per person: 1508 USD

• PPP: 4334 USD

Source: World Bank

Cambodian wrist-watch import:

WRIST-WATCH, PRECIOUS METAL,

AUTOMATIC WOUND TRADE

7.48 M

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WRIST-WATCH, PRECIOUS METAL,

HAND WOUND TRADE

0.811 M

WRIST-WATCH, PRECIOUS METAL,

BATTERY, WITH HANDS TRADE

WRIST-WATCH, PRECIOUS METAL,

BATTERY, OTHER TRADE

3.2.2 Social and Cultural Environment

Because of the development, Cambodians are getting more modern in their fashion with accessories such as jewelry, neckless,… Their abilities are enough to buy these luxury accessories However, they still keep the majority of their old culture

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3.2.3 Demographic Environment

• Population: 16,541,096 million people

• Average Age: in Cambodia is 24

• Population ratio in Urban and Rural Area: 23.8% (3,923,699) living in Urban area

Age Group's share of total population

Age Group's share of total population

There are only 2 big city which are Phnom Penh and Takeo with the population are 1,573,544 and 843, 931 respectively However, people living in Phnom Penh is having the higher income

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3.2.4 Nature of Demand

According to Checkinprice, the average income of Cambodian is 182 US dollar per month while in Phnom Penh, the average income is 270 US dollar, about 1.5 times larger

The EIU report estimates Phnom Penh’s median household income was $10,900 per year in 2015, compared to $12,400 in Bangkok

Based on the information above, it is easy to recognize that the demand of the Cambodians is increasing because of the higher income This will produce more demand related to fashion accessories For example, better jobs make people getting more income Therefore they need to enhance their outfit and appearance which will more suitable for their jobs Catching this change related to the income growth, Curnon will provides marketing campaigns to take as much as possible the demand

In 2011, with just $ 15,000 in hand, Filip fulfilled its dream of creating simple but not simple Nato fabric watch bands Only a very limited initial capital has brought tremendous revenue, up more than 14,000 times in 4 years (falling to 220 million) Starting as a personal product, but after only 8 years, DW earns an average of $

220 million each year, with profit margins ranging from 48 to 52% Tinh so far DW has been present in 25 countries including Cambodia Becoming the most influential brand in Europe in 2017, DW created his own story on the world market

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Originated as a country of excellence in detail and craftsmanship - Switzerland

DW creates products with low-price segment but no less durable and trendy The machine is imported from Japan, Miyota and fully assembled at the Even Shenzhen factory, which has a cheap labor force and low processing costs, so the cost of a watch ranges from $ 150 to $ 240, very accessible to consumers

CASIO WATCH

Casio brand was born in April 1946, the founder is Mr Tadao Kashio Casio officially entered the watch market in 1974, with their first watch line being Casiotron CASIO is a Japanese consumer electronics company whose products include computers, electric pianos, watches and camcorders Products of the company are aimed at students and children, because they are easy to use

With a wide range of products such as electronic watches incorporating annalog and quartz, CASIO can be said to be the most sold product in the Asian market With

a design that goes against the age of being increasingly compact, CASIO offers a unique style of watches that have a rough but extremely dynamic appearance, water resistant, water resistant, shockproof, or even passing cars without harming the quality of the product, quickly won the hearts of consumers

Integrating many features, saving passwords or having dates and schedules, but

a custom CASIO watch costs from $ 50 to $ 200 an extremely low price compared to the value of the product The evidence is that the G-shock series, which is CASIO's best-selling product line at the moment, has more than 2 million units sold in the past

10 years, enough to see CASIO's back as such a big institution

UNBRANDED GOODS

Currently, fake goods and floating goods currently account for 80-90% of the market, the watches have sophisticated designs, originating from countries in the region such as China ,; Taiwan The products have sophisticated copying, making it difficult for both the buyer and the distributor to recognize Counterfeit goods have

Knitting brands tend to penetrate into the Cambodian market more, investors employing peanut pine workers in places where the strings are bigger According to

a preliminary survey of KHMER TIME, more than European exports reached

4 SWOT Analysis

STRENGTHS

S1 Financial & Strategic potential

S2 Despite being a young star-up

company, they launched 33 models

S3 Combines the designs of popular,

trend and the style of Vietnamese

into their products

S4 Vietnam’s first watch brand,

designed by Vietnamese

S5 Vietnam’s first watch brand,

designed by Vietnamese

S6 Quality of customer care, pre- and

post-purchase advice, always

interested in suggestions, and timely

remediation of false protections

W4 Doubts about the quality because it

is assembled at Chinese factories W5 Some materials create heterogeneous products such as leather straps and glasses

W6 Customer care quality of employees is not equal

W7 Not key product yet

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OPPORTUNITIES

O1 Increasing income will enhance the

demand in recent year, Cambodians

have developed a bout fashion

O2 Generally, people in 15-40 is very

focus on their outlook while the

average age of Cambodian is 27

O3 Phnom Penh citizen has the average

income per year is 10,900$, which is

considered as the middle class

O4 Tax advantage

THREATS

T1 The average income of Cambodian

is 182 USD which means customers who are not in our target will never buy our products T2 Cambodians are interested in only accessories with the suitable style

of their religion

T3 Curnon is a new brand without any awareness by the Cambodians therefore it is very hard to compete directly with its competitors

TOWS Strategy

SO Situation

SO1 There are psychological investors,

favorable strategies for

understanding the target audience

SO2 Low price product on the market,

suitable for personal income per

capital in the capital here

SO3 Being a Vietnamese product with a

reasonable price policy compared

to other European countries will

also create a competitive advantage

for the company

ST Situation

ST1 There are many catchy designs which in the future there will be more to serve the customers who prefer religion

ST2 The variety of products can help the problem of competing with counterfeit and fake products more stable, helping customers not to get bored

ST3 Cambodians who have been doing business with many Vietnamese businesses for many

15

years, will have a place as well

as trust from people

WO Situation

WO1 Enterprises need to call for more

capital in Vietnam

WO2 Replicate awareness by media

activities, advertising, banners

WO3 Focus on developing key

products, not developing mass

products, taking one or a product

line into mass

WO4 Focus on developing service

strengths, such as on-site

consulting, after-sales customer

service, after-sales service,

WT Situation

WT1 Need to focus and care about the product, product development not only on price but also on quality minimize competition from smuggled products from Switzerland

WT2 Developing images that feature a specific ancient image such as Angkor Wat

5 Objectives

International Objectives

Building a Vietnamese strong watch brand which can compete to others international brand in other countries at the same segment However, the market in Vietnam exist a lot of strong international brands Therefore Curnon need to go global but finding small market which has no big or strong brand, building an empire in 5 years then come back

Market Objectives

Enhancing the awareness which will be considered as taking Cambodian market share from 1% to 10%

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Curnon also want to increase the wholesalers system to widen the distribution which help Curnon to reach as much customers as possible with the lowest cost The target is have about 10 wholesalers in every cities in top 5 biggest cities in Cambodia

Income: $400-$650$/month

Gender: Male Age: 33-45yrs Job: officer (engineer, doctor, educator,…)

• Holds a number of positions

in the company and has a social status

• In the process of stable knowledge and status

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Behavioral

• Practice effort themselves, young and lead a healthy life style

• Dare to face challenge

• Use quality product at reasonable price

• Like fashion product, but not less elegant

• Respect the practical values, concern about pricequality products without concern about price prefer quality meditation over fashion

• No longer dynamic , focus on the issue of elegance

TARGETING

Chosing targeting is segment 1 because this is the age group that accounts for the majority of the Cambodian population of 27% concentrated in big cities to study and work like Phnom Penh they respect gray matter, respect real values and always want to learn more new things from regional countries

Young people, living mostly in big cities They have a fast-lived lifestyle and think well about society Respect real customer who want to buy products that are stylish and yet trendy, but at a relatively low price they will choose a small branded product over counterfeit or non-branded products I can pay from 50 $ -120% 1 month for buying fashion products

POSITIONING

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CURNON we position is a product of medium quality, but no less durable, the machinery as well as equipment are imported from Japan or Sweden for the production

About the model, CURNON the number of products that the company now has

is 57 products, can meet the needs of many customer segments especially KASHMIR CLASSIC product line with a design that minimizes details, but still extremely calendar for users

CURNON is a product with a low price compared to the general market of watches in the region

In general, CURNON position itself as a product of high fashion, medium quality and low price to easily reach consumers

7 Marketing-Mix Strategies and Tatics

7.1 Product Strategies

The company has products for both men and women

Outstanding anti-scratch sapphire glass and protects the watch face always shiny

Case material: 316L stainless steel - is the standard of a high-end watch, helping your watch endure with time

3ATM water resistant - A feature that makes you confident and comfortable in everyday activities

Change strings easily - Transform your style in 30 seconds without the need for any specialized tools

Color: Generally, curnon has 2 main colors: white and gray black These colors are

dark colors, extremely suitable for young consumers, both showing elegance and also adding dynamism when using the product Show that the wearer is a modern person

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TYPE

NAME

Face of watch: The main face is the main square and round, circle for men, showing

the sophistication and quality of the product Squares for women with a slightly stiff design creates a decent and stylish for the user

Strap of watch: Strap of type The first is the leather usually reserved for those who

want to be mature and luxurious when meeting with partners or customers The second type is made of rubber bands, for those who are uncomfortable with the material of leather straps, rubber quality A 360 helps elastic rubber belts very well Despite being a rubber band, it is still luxurious and eye-catching

FOR MEN:

movement is also what Kashmir - Curnon's first line of watches pursues in every design Fashion, creation and youth aspiration are the manifests you'll take with you along with Kashmir

top-notch Bauhaus art, Weimar represents values and inspirational stories With a design that is a bit classic but not cumbersome, Weimar is the highlight on the wrist of devotees who love minimalism