International Marketing Plan<\/p>\n
Orgainc baby food puree pouch<\/p>\n
International Marketing Plan<\/p>\n
Orgainc baby food puree pouch<\/p>\n
Table of Contents<\/p>\n
Introduction 2<\/p>\n
Part 1) Business Objectives 2<\/p>\n
Part 2) Country Screening 2<\/p>\n
Part 3) STP 3<\/p>\n
Segmenting 3<\/p>\n
Targeting 4<\/p>\n
Positioning 5<\/p>\n
Part 4) Marketing Objectives 5<\/p>\n
Part 5) Entry Mode Selection 6<\/p>\n
Part 6) Detailed International Marketing Mix 7<\/p>\n
Brand 8<\/p>\n
Price 9<\/p>\n
Product 9<\/p>\n
Place 10<\/p>\n
Promotion 11<\/p>\n
Part 7) International Marketing Budget 12<\/p>\n
Appendix 1 13<\/p>\n
Appendix 2 16<\/p>\n
References 17<\/p>\n
Introduction<\/p>\n
This international marketing plan establishes Piccolo\u2019s Organic Baby Food Puree Pouch in Vietnam, making sales of 200,000 units earning a gross revenue of \u00a3112,000 for a marketing promotional budget of \u00a338,080. Overall the year plan makes a profit of \u00a317,920.<\/p>\n
Part 1) Business Objectives <\/p>\n
The following are objectives when entering Vietnam:<\/p>\n
A minimum of \u00a3112,000 in gross sales revenue in the first year by achieving a sales volume of 200,000 units at \u00a30.56 ex-factory price (\u00a31.18 end consumer price) per unit <\/p>\n
Break even by the end of the third quarter of the first year.<\/p>\n
Earn a net profit of \u00a317,920 by the end of the first year<\/p>\n
Fig. 3.1 in Appendix 2 outlines the financials in detail.<\/p>\n
Part 2) Country Screening <\/p>\n
Being a small company with limited budget, the country of entry should not be too unstable; politically and operationally. Being brand new in the market, remittance procedures should also not be too complex to allow for currency exchange between British pound and Vietnamese dong for export as well as to transfer capital and profit back to the UK. Thus, the BERI index has been consulted, which puts all 3 criteria into consideration to define the \u201cknock out criteria\u201d (Hollensen, 2017, pp.295). Any country with \u201cprohibitive risk\u201d will be eliminated i.e. a score of less than 40 (Appendix 1, Fig. 2.1). Therefore, Brazil and Nigeria are both eliminated. <\/p>\n
The remaining Vietnam and China are both east Asia nations, meaning they have highly collectivist cultures (Appendix 1, Fig. 2.2), so unlike in individualist cultures, family members are highly reliant on each other to survive, so the retirees are highly dependent on the working age population (Nguyen, Terlouw, and Pilot, 2005). (Appendix 1, Fig. 2.3) shows China\u2019s population is approximately 14 times the population of Vietnam, however when looking at age structure, Vietnam has a larger 0-14-year-old population compared to China. Furthermore, China has a larger 55 and over population, and being a \u201ccollectivist culture\u201d means the working members of the family in China must split more of their budget on caring for the elders and less on the babies compared to Vietnam. Piccolo\u00b4s Baby Pouches are on the more premium side of baby nutrition and thus they would be more suitable for Vietnam where the parents have more income budgeted for babies. <\/p>\n
Two final points to consider are the lack of trust in organic labels (Luo, 2015) and over saturation of organic food competitors (Heinze, 2016) in China,\u00a0which is a huge competitive disadvantage as \u201corganic\u201d is a strong selling point for Piccolo\u00b4s Baby Pouches. <\/p>\n
Part 3) STP <\/p>\n
Segmenting<\/p>\n
Piccolo\u00b4s baby pouches will be targeted at Vietnamese mothers of children under 3 years of age with high household income. (Appendix 1, fig. 2.4) identifies that \u201cRegion 1\u201d will be targeted for having the highest income. However, as Piccolo is still a very young company with limited budget, a high level of focus is required when first entering such a foreign market; narrowing down to the two highest income cities in Vietnam; Ho Chi Minh City (HCMC) and Hanoi. <\/p>\n
Fig. 1.1 \u2013 Income Breakdown for HCMC and Hanoi<\/p>\n
Student\u00b4s own creation based on: (Nielsen, 2011) <\/p>\n
Class A and Class B will be targeted and thus distribution will go to Urban Hanoi and Urban HCMC which have the highest concentration of Class A and B consumers. Furthermore, since the publishing of these income statistics in 2011, Vietnam\u00b4s GDP per capita has grown by 44% (Th\u1ebf gi\u1edbi & Vi\u1ec7t Nam, 2016; The World Bank Group, 2016) and is projected to grow even more in 2017 and beyond (Vietnam Law and Legal Forum magazine, 2015), thus if entry is successful, there is good purchasing power potential to expand to the rest of urban \u201cregion 1\u201d in the future. <\/p>\n
Within this geographical segmentation, further breakdown is needed to segment based on need (Cooke, 2012). According to a market report from Ipsos (2016) studying insights of Vietnamese mothers of 0-3-year-old children using premium formula milk, key insights have been identified for this consumer group:<\/p>\n
Traditional \u2013 bonding & trust; by pampering, protecting and disciplining. Core values.<\/p>\n
Progressive \u2013 allowing children freedom to learn through play and self-discovery.<\/p>\n
Mom knows best \u2013 freedom to explore within mother\u2019s set boundaries.<\/p>\n
Tensions \u2013 conflict between \u201cTraditional\u201d and \u201cProgressive\u201d values. More and more mothers are wanting to be progressive and allow their child to explore, however fears the child getting hurt and being labelled as a \u201cbad mother\u201d.<\/p>\n
Targeting<\/p>\n
Fig. 1.2 – Typical Consumer Profiles<\/p>\n
Consumer A. Ms. Tr\u1ea7n th\u1ecb thu<\/p>\n
Consumer B. Ms. Hu\u1ef3nh v\u0103n tr\u00fac<\/p>\n
Consumer C. Ms. Ph\u1ea1m ng\u1ecdc h\u01b0\u01a1ng <\/p>\n
– Income: Class A (upper class)<\/p>\n
– Age: 31<\/p>\n
– Residence: Urban Hanoi<\/p>\n
– Mother of 3-year-old daughter <\/p>\n
and 1 year old son<\/p>\n
– highly \u201cTraditional\u201d approach to raising children.<\/p>\n
– Building a trust bond with her children; highly pampering, protecting and disciplining the child. Fulfilling basic core needs.<\/p>\n
– collects information about raising children mainly from face to face conversations with friends, family and other mothers<\/p>\n
– Income: Class B (mid-upper class)<\/p>\n
– Age: 25<\/p>\n
– Residence: Urban Hanoi<\/p>\n
– Mother of 6-month-old son <\/p>\n
– Mostly follows \u201cTraditional\u201d approach\u201d however wants to allow her child the freedom to explore him\/herself<\/p>\n
– conflicted by tensions of the \u201ctraditional mother\u201d and fears negative judgement from her peers and extended family<\/p>\n
– collects information about raising children from face to face conversations with peers and family as well as from the internet and social media<\/p>\n
– Income: Class A (upper class) <\/p>\n
– Age: 27<\/p>\n
– Residence: Urban Ho Chi Minh City<\/p>\n
– Mother of 10-month-old daughter<\/p>\n
– \u201cProgressive\u201d approach to raising children<\/p>\n
– parenting is not only about pampering and disciplining, but also about encouraging play, discovery, social interaction and fun<\/p>\n
– collects information about raising children from face to face conversations with peers and family as well as from the internet and social media<\/p>\n
Consumer B and Consumer C will be targeted. For this to be successful, both \u201cTraditional\u201d and \u201cprogressive\u201d values need to be fulfilled. <\/p>\n
Positioning<\/p>\n
Identification of the existing competitors is required to help differentiate Piccolo\u00b4s product from competition offers (Goldman and Lindsey-Renton, 2012). Therefore, a brief \u201cVietnamese Baby Nutrition\u201d industry analysis has been devised below based on an interview with Vietnamese Market Research Expert: Huynh (2017).<\/p>\n
Over saturation of Formula Milk products from brands such as: Vinamilk, Abbott etc.<\/p>\n
Home-made baby food very popular; usually congee, meat and vegetables blended into a puree-like texture.<\/p>\n
There exists a few imported Baby Puree brands, the main ones include: Heinz (USA), Hipp (Germany), Bl\u00e9dina (France), however they are:<\/p>\n
contained in inconvenient glass jars from which parents must spoon feed their child<\/p>\n
not organic (except Hipp) <\/p>\n
lacking proper connection to the emotional dynamics of the mother and her child mentioned in the key insights earlier in the Segmenting section.<\/p>\n
From the industry analysis, two \u201cStrategic Groups\u201d are identified (Johnson, Scholes and Whittington, 2008). First is the Formula milk and second is the Puree (including home-made). Piccolo will be competing in the second strategic group and thus imported Purees and home-made Purees will be the competitors. These key messages will be projected so that the value proposition both satisfies the target market\u00b4s key insights and desires as well as to differentiate from the competition\u00b4s offers (Hollensen, 2017, pp.521).<\/p>\n
Piccolo\u00b4s puree comes in pouches, so it is easy and safe for your child to hold and drink but also allows him\/her the freedom to explore <\/p>\n
Piccolo is a premium product with organic ingredients to ensure the best quality and safest nutrition for your child <\/p>\n
Piccolo uses fresh ingredients, cooked by a loving mum for her child<\/p>\n
Part 4) Marketing Objectives <\/p>\n
Effective marketing objectives are those that align with the corporate direction of the firm (Srinivasan, 2009) and therefore help to achieve the business objectives discussed in part 1. They are to be achieved by the end of year one and are as follows: <\/p>\n
Fortify Piccolo\u00b4s brand within the chosen market segment \u2013 making sure consumers understand the superior qualities of the Piccolo brand compared to existing market offers and that 45% of the market segment will know of the Piccolo name.<\/p>\n
Establish market share \u2013 gaining 18% market share from the commercial Puree market by the end of year one and penetrating at least 15% of the \u201cBlue Ocean\u201d home-made Purees market discussed in the marketing mix in part 6.<\/p>\n
Referrals \u2013 At least 30% of new sales should be generated via WOM (Word of Mouth) and social media referrals of existing customers by the end of year 1. (further discussed in part 6)<\/p>\n
Sales by retail type \u2013 type x = 55%, type y = 30%, type z = 15% (Part 6, Fig. 1.4)<\/p>\n
Part 5) Entry Mode Selection <\/p>\n
Both Internal and External factors will be considered when choosing the entry mode (Hollensen, 2017, pp.353-355).<\/p>\n
Internally; Piccolo is small, with limited budget and the managers have limited international experience. <\/p>\n
Externally; sociocultural distance between Vietnam and the UK is large, as the UK is a first world country with a western European way of living whereas Vietnam is a third world country with south east Asian culture (Chalre Associates, 2015). Furthermore; Vietnam\u00b4s political, operational and remittance risk are still quite high (Appendix 1, Fig. 2.1). Therefore, not too much direct capital should be invested. Hence Export mode has been chosen.<\/p>\n
To take advantage of the \u201cDesired mode Characteristics\u201d (Hollensen, 2017, pp.356-357), direct export will be the entry strategy, allowing for more control over the marketing mix (Hollensen, 2017, pp.381). This is because some elements of the marketing mix will require a medium\/high level of customisation and direct export will allow for this. <\/p>\n
According to Vietnamese import expert Nguyen (2017), this product is categorised under \u201cFood Supplements\u201d by the Vietnamese government and therefore requires a short testing by the \u201cVietnam Ministry of Health\u201d before it can be sold in Vietnam. Furthermore, only a Vietnamese importer will have the license to import once these products are given the clearance, meaning Piccolo will be highly reliant on the importer, so the selection process of this importer is very important. Two important things to note for Vietnam are:<\/p>\n
The Vietnamese government sets a tariff of 22.5% which includes shipping and insurance costs, all to be incurred by the Vietnamese importer.<\/p>\n
Vietnamese VAT is only 10%, which is half that of the UK (Gov.uk, 2017), meaning that the price escalation due to importer and wholesaler mark-ups will be softened so that the consumer price in Vietnam will not be much higher than in the UK. <\/p>\n
As seen in Appendix 1, Fig. 2.5, there are two modes to consider. Mode B has the advantage of potentially reaching a larger variety of retailers as the wholesalers have more reach to retailers compared to the importer. However, it highly inflates the final price. On the other hand, Mode A has lesser retailer reach but is 12% less inflated. <\/p>\n
In terms of retail, the product will be sold only in Premium supermarket chains, Premium baby stores, and Import only foods stores (which are growing in popularity in Vietnam). Since there is clear focus on the desired retailers, Mode A (Appendix 1, Fig. 2.5) will be chosen to limit the price escalation. <\/p>\n
With all criteria mentioned, here are the key characteristics required of the partner import agent:<\/p>\n
Have good connections to the above-mentioned retail channels <\/p>\n
Have the capacity to distribute directly to retail without the need of a wholesaler<\/p>\n
Be familiar with importing baby food products, especially Purees<\/p>\n
Have good geographical coverage to both Hanoi in the north and HCMC down south<\/p>\n
Have expertise with importing products from Europe as well as organic products.<\/p>\n
Has \u201cPremium Image\u201d: since Piccolo is a premium brand, the chosen agent needs to be exclusively importing high quality, premium products to align with Piccolo\u00b4s brand<\/p>\n
C\u00f4ng Ty TNHH Hamar Vi\u1ec7t Nam has been the chosen import partner.<\/p>\n
Part 6) Detailed International Marketing Mix<\/p>\n
Piccolo will be competing against baby food Purees, and in Vietnam, these are all imported products. The \u201cCountry of Origin\u201d factor (Hollensen, 2017, pp.522) is very important when it comes to this specific product category, since they are premium products, priced significantly higher than the average baby nutrition product such as formula milks. Therefore, this image of \u201cforeign\u201d from the USA, or Europe (Huynh, 2017) creates a strong \u201cperceived quality\u201d (Hollensen, 2017, pp.500) justifying the higher price. <\/p>\n
Still a major player in this segment are the home-made Purees, which take up to 80% of the Baby Puree market (Huynh, 2017). These home-made Purees are firstly cheaper and use \u201cfresher\u201d ingredients, but also represents a special bond of \u201cmade by mother for her beloved child\u201d which strikes a very important chord in Vietnamese family culture. This represents an untouched \u201cBlue Ocean\u201d that can be harnessed by Piccolo (Hollensen, 2017, pp.308-312).<\/p>\n
The approach to the Marketing Mix would be to make small \u201clocalised\u201d customisations to certain elements of the marketing mix, while keeping with Piccolo\u00b4s core business values, as seen in the case of Ikea\u2019s entry into Japan (Perepu and Purkayastha, 2008). However, standardisation will be made everywhere possible due to the huge cost savings associated with it (Levitt, 1993). Thus, the principles of \u201cGlocalisation\u201d (Hollensen, 2017, pp.22) will be applied.<\/p>\n
Brand<\/p>\n
Degree of customisation: very low<\/p>\n
Piccolo\u00b4s brand is meant to create value to the customers beyond the tangible attributes of the Puree itself (Hollensen, 2017, pp.525). Fortunately, Piccolo\u00b4s brand already satisfies the key desires of the targeted market segment, so no modification to the brand image is required when going into Vietnam. However due to \u201csociocultural\u201d differences (Hollensen, 2017, pp.252-256), certain elements of the 4Ps need to be modified to better communicate the brand to the Vietnamese market. <\/p>\n
Here are Piccolo\u00b4s key brand strengths:<\/p>\n
European certified organic label <\/p>\n
\u201cMediterranean Goodness\u201d – representing \u201cFresh\u201d ingredients and \u201cfamily values\u201d <\/p>\n
\u201cnature, nurture, nourish\u201d \u2013 further amplifies \u201cfresh\u201d ingredients, mother-child bond, nutritious<\/p>\n
Ms. Catherine Gazzoli; the mother who started the company out of love and care for parents and children <\/p>\n
Convenience, fun, freedom to explore \u2013 due to pouch storage<\/p>\n
Slogan<\/p>\n
The slogan: \u201ct\u01b0\u01a1i ngon t\u1eeb b\u1ebfp c\u1ee7a m\u1eb9\u201d (English: \u201cfresh from mum\u00b4s kitchen\u201d) will be incorporated into the marketing mix as it truly captures the essence of Piccolo\u00b4s brand in Vietnam and helps consumers to identify and remember the brand (Hemani, 2012). It also embraces the desires of the \u201cBlue Ocean\u201d consumers, who long for fresh ingredients and the mother-child bond.<\/p>\n
(Appendix 1, fig. 2.6) specifies the exact marketing messages to be communicated based on Piccolo\u00b4s brand and market analysis mentioned above, as well as consumer insights mentioned in part 3.<\/p>\n
Price <\/p>\n
Degree of customisation: low – only 8% difference compared to domestic pricing (Appendix 1, Fig. 2.5).<\/p>\n
As mentioned in part 5, Mode A is chosen and therefore the price will be \u00a31.18 (Appendix 1, Fig. 2.5), which is equivalent to 34,000VND for one 100g pouch. Based on field research at chosen stores (Fig. 1.4), competitor\u00b4s products have a median price of 30,400 VND. Piccolo\u00b4s chosen price point represents \u201cpremium pricing\u201d strategy (Magloff, 2017) therefore a superior quality and \u201cUnique Selling Point\u201d (Hollensen, 2017, pp.640) need to be clearly communicated to the consumer. This is possible through the superior brand attributes mentioned at the beginning of part 6 and will be communicated via methods mentioned in the Product and Promotion section. <\/p>\n
Product<\/p>\n
Degree of customisation: low – small adjustments only to the packaging including:<\/p>\n
Delete \u201csupporting NCT, the UK\u00b4s largest charity for parents\u201d at the back, since Vietnamese consumers simply don\u00b4t know what it is and it will only cause confusion (Huynh, 2017) \u2013 A (Fig. 1.3)<\/p>\n
Replace \u201cMediterranean goodness\u201d with the chosen slogan, using the English version \u201cfresh from mum\u00b4s kitchen\u201d \u2013 B (Fig. 1.3)<\/p>\n
EU Organic Label will come in place of the nct stamp, accompanied by simply the word \u201cOrganic\u201d as it is a trendy word for the chosen market and is enough to entice the consumers (Huynh, 2017). \u201cEuropean Standards\u201d highlights the \u201ccountry of origin\u201d effect mentioned at the beginning of part 6 \u2013 C (Fig. 1.3)<\/p>\n
Everything on the pouch itself needs to be left in ENGLISH, emphasising \u201cforeign\u201d, which represents high quality, whereas Vietnamese packaging would represent low quality (Huynh, 2017). A separate Vietnamese translation sheet will be stuck on the pouch with translations of the safety precautions and storage instructions and written in bold will be the words \u201cOrganic \u2013 theo ti\u00eau chu\u1ea9n ch\u00e2u \u00c2u\u201d (\u201cOrganic \u2013 following European standards\u201d) as a European certification represents high quality and reliability \u2013 D (Fig. 1.3)<\/p>\n
Fig. 1.3 \u2013 Adjustments to domestic packaging<\/p>\n
B<\/p>\n
B<\/p>\n
A<\/p>\n
A<\/p>\n
D<\/p>\n
D<\/p>\n
C<\/p>\n
C <\/p>\n
(front) (back)<\/p>\n
Place<\/p>\n
Degree of customisation: medium\/high \u2013 retail type x will be utilised like in the UK however types y and z (Fig. 1.4) are quite unique to Vietnam. <\/p>\n
Fig. 1.4 below specifies the chosen stores as they align with the need to project the \u201cCountry of Origin\u201d effect since these retailers sell lots of imported product and some even sell imported products exclusively. They maintain a \u201cPremium image\u201d which is inviting to the \u201cupper class\u201d mothers that Piccolo will sell to.<\/p>\n
It is important that Piccolo stays exclusive to these stores and avoid lower end stores such as \u201cconvenience stores\u201d and \u201cmid to lower end supermarket chains\u201d as not only do the target market not shop there, it will also ruin the \u201cpremium image\u201d and thus lower the \u201cbrand equity\u201d which will make the chosen \u201cpremium pricing\u201d strategy ineffective (Hollensen, 2017, pp.525). <\/p>\n
Fig. 1.4 \u2013 Chosen retail stores<\/p>\n
Retail Type<\/p>\n
Chosen stores<\/p>\n
x) Premium supermarket chains<\/p>\n
Giant, Aeon citimart, Co-op extra <\/p>\n
y) Premium baby stores <\/p>\n
Shop M\u1eb9 v\u00e0 B\u00e9, Bibomart, Concung<\/p>\n
z) Import only foods stores<\/p>\n
Annam Gourmet Market <\/p>\n
Student\u00b4s own creation based on: (Hunyh, 2017) & student\u00b4s field research <\/p>\n
Promotion <\/p>\n
Degree of customisation: medium\/high<\/p>\n
Huynh (2017) says that these mothers are very \u201ctech-savvy\u201d. They are very active on social media and collect lots of information from the internet. Therefore, a digital-heavy approach will be taken to the promotional efforts with POS sales promotion and TV advertising for support. Traditional methods of \u201cpersonal-selling\u201d would be highly cost-ineffective and therefore will not be used. <\/p>\n
Digital Marketing<\/p>\n
According to eMarketer Inc (2017) mothers are extremely receptive to WOM marketing. They are most likely to trust and spread the word. Furthermore, Pandey & Khare (2017) states that WOM is the most critical factor in convincing consumers to purchase organic food in developing markets.<\/p>\n
One of the most effective ways to spread the WOM is via Social Media, thanks to the \u201cpinball effect\u201d where each consumer that Piccolo convinces will themselves spread the word within their networks and so on (Hollensen, 2017, pp.661). Therefore, Facebook and YouTube campaigns will be launched along with posts on select mothering blogs in Vietnam such as; blognuoicon.com, blognhatitun.com etc. Content posted will be in a mix of English and Vietnamese, as Vietnamese helps make sure all the consumers understand, however English will once again provide the image of \u201cforeign, European brand\u201d and thus superior quality (Huynh, 2017). <\/p>\n
POS sales promotion <\/p>\n
A large display cut out of the Product accompanied by the slogan and sample pouches will be placed near the checkouts of select retail branches with most traffic for the first 3 months.<\/p>\n
TV advertising <\/p>\n
There will be a 3-month TV advertising campaign run in Vietnamese language 3 times per week, containing the marketing messages specified in Appendix 1, Fig. 2.6. The main characters in the advert include a mother and her son, to emphasise the mother-child dynamic. It also includes a short 8-second part of Ms. Catherine Gazzoli (CEO) speaking in ENGLISH of her inspiration to start up the company, once again reinforcing the \u201cforeign\u201d brand image and mother-child bond. <\/p>\n
Part 7) International Marketing Budget<\/p>\n
Marketing spending is based on the strategies mentioned in the marketing mix and are as follows: <\/p>\n
Fig. 3.1 in Appendix 2 outlines specifics and other financial data.<\/p>\n
Appendix 1<\/p>\n
Fig. 2.1 – BERI Index<\/p>\n
\u201cOperations Risk Index\u201d: represents the extent to which local business are given priority treatment and the quality of the business environment and continuity<\/p>\n
\u201cPolitical Risk Index\u201d: the danger that the political situation of the country may pose on the company<\/p>\n
\u201cRemittance & Repatriation Factor\u201d: the ease of exchanging currency between home country and host country and transferring funds back and fourth<\/p>\n
70-100 = Low Risk 55-69 = Moderate Risk 40-54 = High Risk 0-39 = Prohibitive Risk<\/p>\n
Brazil<\/p>\n
China<\/p>\n
Nigeria<\/p>\n
Vietnam<\/p>\n
Combined Score 2016<\/p>\n
30<\/p>\n
54<\/p>\n
37<\/p>\n
43<\/p>\n
Combined Score +5 years<\/p>\n
38<\/p>\n
58<\/p>\n
42<\/p>\n
50<\/p>\n
Student\u00b4s own creation based on: (Brazil Profit Opportunity Recommendation, 2016) (China Profit Opportunity Recommendation, 2016) (Nigeria Profit Opportunity Recommendation, 2016) (Vietnam Profit Opportunity Recommendation, 2016)<\/p>\n
Fig. 2.2 – Individualism vs Collectivism<\/p>\n
1 = highly collectivist —————— 120 = highly individualistic <\/p>\n
Guatemala (lowest in the world)<\/p>\n
Vietnam<\/p>\n
China<\/p>\n
Argentina<\/p>\n
USA<\/p>\n
(highest in the world)<\/p>\n
Individualism score<\/p>\n
6<\/p>\n
20<\/p>\n
20<\/p>\n
46<\/p>\n
91<\/p>\n
Student\u00b4s own creation based on: (Geert-hofstede.com, 2017)<\/p>\n
Fig. 2.3 – Demographics<\/p>\n
China<\/p>\n
Vietnam<\/p>\n
Population<\/p>\n
1,388,232,693<\/p>\n
95,414,640<\/p>\n
Population yearly growth<\/p>\n
0.43 %<\/p>\n
1.27 %<\/p>\n
0-14 year olds<\/p>\n
17.1 %<\/p>\n
24.3 %<\/p>\n
55 years old and over<\/p>\n
20.9 %<\/p>\n
13.1%<\/p>\n
youth dependency ratio<\/p>\n
24.9 %\u00a0<\/p>\n
31.9 %\u00a0<\/p>\n
elderly dependency ratio<\/p>\n
12.5 %\u00a0<\/p>\n
9.4 %\u00a0<\/p>\n
Student\u00b4s own creation based on: (Barrientos and Soria, 2014) (Worldometers, 2017)<\/p>\n
Fig. 2.4<\/p>\n
Student\u00b4s own creation based on: (K\u1ebf to\u00e1n Thi\u00ean \u01afng, 2017)<\/p>\n
Fig. 2.5 \u2013 Entry Mode & Pricing<\/p>\n
Cost of production \u00a3<\/p>\n
0.28<\/p>\n
0.28<\/p>\n
0.28<\/p>\n
\u00a0<\/p>\n
Domestic<\/p>\n
Mode A: Foreign Importer \u2192 Retailer<\/p>\n
Mode B: Foreign Importer \u2192 Wholesaler \u2192 Retailer<\/p>\n
Piccolo (Ex-factory) 100% margin<\/p>\n
0.56<\/p>\n
0.56<\/p>\n
0.56<\/p>\n
Tariff, Insurance & Shipping Costs (22.5%)<\/p>\n
\u00a0<\/p>\n
0.13<\/p>\n
0.13<\/p>\n
\u00a0<\/p>\n
\u00a0<\/p>\n
\u00a0<\/p>\n
\u00a0<\/p>\n
Importer pays (cost)<\/p>\n
\u00a0<\/p>\n
0.69<\/p>\n
0.69<\/p>\n
Importer’s Mark-up (15% of cost)<\/p>\n
\u00a0<\/p>\n
0.10<\/p>\n
0.10<\/p>\n
\u00a0<\/p>\n
\u00a0<\/p>\n
\u00a0<\/p>\n
\u00a0<\/p>\n
Wholesaler pays (cost)<\/p>\n
0.56<\/p>\n
\u00a0<\/p>\n
0.79<\/p>\n
Wholesaler’s Mark-up (20% of cost)<\/p>\n
0.11<\/p>\n
\u00a0<\/p>\n
0.16<\/p>\n
\u00a0<\/p>\n
\u00a0<\/p>\n
\u00a0<\/p>\n
\u00a0<\/p>\n
Retailer pays (cost)<\/p>\n
0.67<\/p>\n
0.79<\/p>\n
0.95<\/p>\n
Retailer’s Mark-up (36% of cost)<\/p>\n
0.24<\/p>\n
0.28<\/p>\n
0.34<\/p>\n
\u00a0<\/p>\n
\u00a0<\/p>\n
\u00a0<\/p>\n
\u00a0<\/p>\n
Consumer Price (before VAT)<\/p>\n
0.91<\/p>\n
1.07<\/p>\n
1.29<\/p>\n
Consumer Price (with VAT 20% in UK, 10% in Vietnam)<\/p>\n
1.10<\/p>\n
1.18<\/p>\n
1.42<\/p>\n
% Price escalation over domestic channel<\/p>\n
\u00a0<\/p>\n
8%<\/p>\n
20%<\/p>\n
Student\u00b4s own creation based on: (Hollensen, 2017, pp. 562)<\/p>\n
Fig. 2.6 \u2013 Consumer Insight & corresponding marketing message to be used by Piccolo<\/p>\n
Consumer Insight<\/p>\n
Marketing message<\/p>\n
\u201cOrganic\u201d is new and trendy and is good for health<\/p>\n
Promote that the brand is European certified organic, coupled with the official EU organic label \u2013 the phrase \u201cOrganic – theo ti\u00eau chu\u1ea9n ch\u00e2u \u00c2u\u201d (organic \u2013 following European standards) should be constantly mentioned <\/p>\n
Foreign brands from Europe are of very high quality and a lot more trustworthy compared to Vietnamese brands<\/p>\n
Home-made Purees are the preferred way to feed children due to the freshness of ingredients and the emotional mother-child bond associated with it (this is the \u201cBlue Ocean\u201d to exploit) <\/p>\n
The idea that the purees have been freshly prepared by a mother for her child should be strongly embedded, with frequent mention of the slogan – \u201ct\u01b0\u01a1i ngon t\u1eeb b\u1ebfp c\u1ee7a m\u1eb9\u201d or in English: \u201cfresh from mum\u00b4s kitchen\u201d (Language will depend on situation, which is specified in the marketing plan) <\/p>\n
\u201cTraditional\u201d values of discipline, protecting and pampering the child vs \u201cProgressive\u201d values of freedom and exploration<\/p>\n
Sell the unique pouch form factor of this product being highly convenient and allowing fun and freedom for the child<\/p>\n
Appendix 2<\/p>\n
Fig. 3.1 \u2013 Marketing Budget and Financials<\/p>\n
References<\/p>\n
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The World Bank Group (2016) GDP per capita (current US$). Available at: http:\/\/data.worldbank.org\/indicator\/NY.GDP.PCAP.CD?end=2015&locations=VN&start=2011 (Accessed: 8 March 2017).<\/p>\n
Vietnam Law and Legal Forum magazine (2015) Vietnam to reach per capita GDP of USD 3,200-3,500 by 2020. Available at: http:\/\/vietnamlawmagazine.vn\/vietnam-to-reach-per-capita-gdp-of-usd-3200-3500-by-2020-5001.html (Accessed: 8 March 2017).<\/p>\n
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20<\/p>\n","protected":false},"excerpt":{"rendered":"
International Marketing Plan Orgainc baby food puree pouch International Marketing Plan Orgainc baby food puree pouch Table of Contents Introduction 2 Part 1) Business Objectives 2 Part 2) Country Screening 2 Part 3) STP 3 Segmenting 3 Targeting 4 Positioning 5 Part 4) Marketing Objectives 5 Part 5) Entry Mode Selection 6 Part 6) Detailed […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[10],"class_list":["post-96677","post","type-post","status-publish","format-standard","hentry","category-research-paper-writing","tag-writing"],"_links":{"self":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts\/96677","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/comments?post=96677"}],"version-history":[{"count":0,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts\/96677\/revisions"}],"wp:attachment":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/media?parent=96677"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/categories?post=96677"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/tags?post=96677"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}