TRƯỜNG ĐẠI HỌC MỞ TP HCM HO CHI MINH CITY OPEN UNIVERSITY UNIVERSITEÙ LIBRE DE BRUXELLES SOLVAY BRUSSELS SCHOOL MBMM MBMM4 MM4 NGUYỄN THỊ THIÊN HƯƠNG EXPLORING CUSTOMERS’ DEMANDS AND HABITS OF DRINKING FRUIT JUICE IN HOCHIMINH CITY – VIETNAM MASTER MASTER PROJECT MASTER IN BUSINESS & MARKETING MANAGEMENT Tutor’s Name: Name: Dr Nguyen Ngoc Hoa Ho Chi Minh City (201 2010) i DECLARATION This thesis contains no material that has been accepted for the award of any other degree of diploma in any university or other institution and to the best of my knowledge contains no material previously published or written by another person, except where due reference is made in the text of this thesis In this study, the survey is conducted by professional interviewers, observed by an independent quality controller and the author of this thesis Thus, it has high level of trust, confidence and agreement This information source is strictly warned by the research company to use for limited purposes and not allowed to be spread out excepting for the jury of Solvay Business School and some marketing professionals including the MBMM tutor ii ACKNOWLEDGEMENTS ACKNOWLEDGEMENTS I owe the greatest debt to my tutor, Prof Dr Nguyen Ngoc Hoa, his intellectual support and advice, continuous guidance, full of patience and enthusiasm, has kept me carrying out my thesis and writing up my thesis In spite of being very busy with his plentiful plans, Prof Dr Nguyen Ngoc Hoa has been very generous with his time, comments, suggestions and corrections on the draft of my thesis Without such guidance and assistance, I could not have finished my research and writing up this thesis on time My utmost thanks go to my study group in MBMM4 class, who gave me endless experienced and mental support Also to my family, other colleagues and friends, who listened to my ideas and encouraged me in completing this thesis I am ever more indebted to all Professors of Solvay Business School, my school, who gave me very interesting and great lectures This course gives me a lot useful and interesting knowledge that helps me much in my future career path Especially thanks to Prof Bayern, chairman of the program, for his enthusiasm, support, and professionalism iii TUTOR’S COMMENTS Ms Nguyen Thi Thi Thi Thien Huong tries her best to conducted the thesis on the topic “Exploring Customers Demands and Habits of Drinking Fruit Juice In Hochiminh City” The author has had a lot of efforts to gather information as well as to conduct a research to understand the demand and habit of consumers in drinking fruit juice The results and conclusions of the thesis with applicable recomendations are useful information for the people who want to enter the fruit juice shop business in Ho Chi Minh City The thesis meets requirements of MBA thesis I suggest the committee should allow the author to present it to your kind perusal and consideration Hochiminh city, Vietnam, December 10, 2010 Regards, Dr Nguyen Ngoc Hoa iv TABLE OF CONTENTS Declaration Acknowledgment Tutor’s comment Executive Summary Introduction Overall Background 3.1 Scientific Research on Use of Fruit Juice 3.2 Business potential of Fruit Juice market 3.2 Overall Background about Fruit Juice Market in Vietnam Literature Review 4.1 Defining Problems 4.2 Hypothesis Statements 4.3 Objective Research Design and Methodology Data Analysis & Result 6.1 Demands of Fruit Juice 6.2 Frequency of Buying / Using Fruit Juice 6.3 Types of Using Fruit Juice 6.4 Customer feeling about price 6.5 Promotion 6.5.1 Kind of Fruit Juice Shop 6.5.2.Key Factors Concerned for a Produces 6.5.3Added Value for a Fruit Juice Shop 6.5.Conclusion on data analysis Recommendation 7.1 Product 7.2 Price 7.3 Place (Distribution) 7.4 Promotion i ii iii 4 10 12 13 13 14 16 19 20 21 24 26 26 28 30 30 34 34 34 35 35 v Conclusion References Appendix In-depth interview Questionnaire Data Report 37 38 39 39 41 49 vi LIST OF TABLES Figure of Off-trade Sales of Fruit/Vegetable Juice by Subsector: Value 2004 – 2009 p.8 Figure of Company Share of Fruit Juice in by Off-trade volume 2005 – 2009 p.9 Graph of Stimulus Response Model of Buyer Behaviors p.11 Chart of level of research method process p.16 Chart of level of education p.17 Chart of level of professional p.18 Chart of Things doing at Leisure Time p.19 Chart of Purpose for Using Fruit Juice p.20 Chart of Frequency of Drinking Fruit Juice p.21 10 Chart of Attitude of Drinking Fruit Juice p.22 11 Chart of Time of Drinking Fruit Juice p.22 12 Chart of Attitude for accompanies to go with p.23 13 Chart of Where to Drink Fruit Juice p.24 14 Chart of Customer Feeling about price of Fruit Juice p.25 15 Chart of Kind of Fruit Shop to enjoy p.26 16 Chart of Buying Fruit to process at home in field of leisure activities p.26 17 Chart of Buying at Takeaway shop in fields of gender p.27 18 Chart of Buying at Takeaway shop in fields of professional 19 Chart of Key factors concerned for a takeaway shop p.27 p.29 20 Chart of Key factors concerned for a shop p.30 21 Chart of decoration for a products of a fruit juice shop p.31 22 Chart of Added value for a products of a fruit juice shop p.32 23 Chart that summary the data analysis process p.33 1 EXECUTIVE SUMMARY: Despite fruit juice has been available for some time; it has never been as popular as other soft drinks, such as carbonates And despite fruit juice shop has been appeared several years ago, it also haven’t created interest to customers as other shops like restaurants, coffee shop, etc This study was concluded to find out if there is a demand of fruit juice shop in Hochiminh City and the drinking habits of customer This thesis is limited to Hochiminh City only because of some geographical, climate reasons that may affect to the demand of drinking fruit juice more than other locations Conceptual frameworks was built in researches about usage of fruit juice all over the worlds, then develop to their economic value together with Stimuli – Response Model of Customer Behavior from Sandhusen, Richard L Therefore defining problems and create hypothesis for the demand and habit of drinking fruit juice in Hochiminh City The research samples method is the mix of qualitative and quantitative with 200 to be delivered out and filled in by 200 respondents which get 112 positive feedbacks with using fruit juice Descriptive and frequency analysis are used to analyze data The result was found out that demands of fruit juice in Hochiminh City are obvious and customer’s drinking habit is very multiform Two kinds of shops are preferred by respondents and follow those are factors that customers require to the products Base on these readers will get recommendations for those who want to invest in this area 2 INTRODUCTION: We live in Hochiminh City, the largest city in Vietnam, where provide lots of work and attract many young people Ho Chi Minh City is the most important economic center in Vietnam as it accounts for a high proportion of Vietnam's economy With a population now 7,162,864 (as of Census 2009 on April 1, 2009) Ho Chi Minh City is in need of vast increase in public infrastructure Transportation here is extremely crowded and the environment is polluted with lots of vehicle The city has a tropical climate, specifically a tropical wet and dry climate The weather is usually hot can lead people to using of drink to refresh These days our bodies need more vitamins and minerals than ever before This is because we work longer hours, are exposed to more toxic fumes from pollution and are under more stress than we used to be Eating fruit every day is a simple way of providing your body with these nutrients to ensure you are well equipped to deal with the stresses of daily life, and possibly protect you from illnesses in the future It is no secret that eating fruit is good for you and has plenty of health benefits Generally, people who eat more fruit as part of a healthy diet are less likely to develop diseases such as diabetes, heart disease, Alzheimer’s and cancer, and they provide your body with all the nutrients it needs to fight other infections and repair cells, too A diet involving regular amounts of fruit will provide your body with antioxidants to help prevent free radicals from attacking the body There are some products from fruit, one of them is fruit juice 100% fruit juices are a smart addition to any well-balanced diet, providing vitamins and minerals like potassium, vitamin C and foliate Fruit juice is also a convenient way for adults and children to help reach the recommended number of daily servings of fruits and vegetables Despite fruit juice having been available for some time, it has never been as popular as other soft drinks, such as carbonates In 2009, with increasing awareness of local consumers over health problems and attempts to control their calorie intake by cutting down on carbonated drinks, this is a very good chance for other healthier drinks to step up Fruit juice is said to contain a lot of vitamins and added minerals which are very good for the heart and the skin The demand and consumption of fruit juice in Hochiminh City is real There are many people, esp female using fruit juice in coffee shop, juice booth in shopping mall or even vendors in the streets Beside, % of people using fruit juice bottle like Minute Maid Teppy, Dr Thanh … are also increase The success of fruit juice brand such as Tan Hiep Phat, VFresh from Vinamilk is the evidence for that need However, juicy juice shops where provide fresh juices are not too much and play no important role in consumer’s mind When talking about drinking shop, even with a fruit juice lovers they mostly remember coffee shops, bubble tea chains, street vendors or juicy bottles brands… but not a fruit juice shop Knowing that situation, we start a project about Exploring Customers’ demands and habits of drinking fruit juice in Hochiminh City – Vietnam This project has ambitious to find demands and fruit juice drinking habit of customers in HCMC, which factors affect them most Therefore we can help enterprise who wants to invest in this area to find the best segmentation and plan for their business 38 REFERENCES Agriculture Consumer Protection, Agricultural and Food Marketing Management FAO Corporate document repository (online) www.fao.org/docrep/ 004/w3240e/W3240E05.htm Diễn đàn doanh nghiệp, Nước giải khát bỏ ngỏ thị trường (online) http://vietbao.vn/The-gioi-giai-tri/Nuoc-giai-khat-bo-ngo-thi-truong/50755153/411/ Đỗ Thanh Hương (dothanhhuong78@yahoo.com), Khảo sát thị trường nước ép trái (online) http://spreadsheets.google.com/viewform?key=pLlN2LhWOl06htbha6dnEYg Euromoniror, Fruit / Vegetable Juices in Vietnam, May 2010 Food in every countries, Food in Vietnam - Vietnamese Food, Vietnamese Cuisine (online) http://www.foodbycountry.com/Spain-to-Zimbabwe-Cumulative-Index/Vietnam.html HCM City's People Committee, Facts and Figures (online) http://www.eng.hochiminhcity.gov.vn/eng/news/ Ijaz A Quyreshi, Qualitative Research and Info Sys, Agorsy University Publishing Joanne F Guthrie, Understanding Fruit and Vegetable Choices—Research Briefs, AIB-792 1-7, USDA/ERS, October 2004 Joanna Verdan, Eating Fruit and Drinking Fruit Juice and Cancer Research (online) http://ezinearticles.com/?expert=Joanna_Verdan Mai Ca, Thị trường nước giải khát 2010: Sản phẩm gas lên (online) http://vietnamnet.vn/vanhoa/tintuc/2007/04/684260/ MINTEL, The fruit juice market: an appealing squeeze (online) http://www.marketresearchworld.net/index.php?option=com_content&task=view&id=484 Sandhusen, Richard L.: Marketing (2000), Barron’s Business Review Books 39 APPENDIX APPENDIX 1: ININ-DEPTH INTERVIEW INTERVIEWEE PROFILE: - Name: Gender: - Age : Marital status: - Education: Position in company: - Sector: Income/annual: Interview place: place Interview date: date RECAPPED OBJECTIVES OF THE RESEARCH: To gain consumer feedbacks on ü Overall lifestyle ü Their attitude and behaviors about drinking fruit juice ü Decision making process on buy a drink for fruit FINDINGS: OVERALL LIFESTYLE Daily activities: After work activities: 40 Weekend: Personal interest: Hobbies: Favourite drinking places: When talking about fruit juice, what are your TOM shops? Any other shops: PURCHASE BEHAVIOUR: Perception on Fruit Juice and Drinking Trends: Drinking habits & trends: Attitude towards Fruit Juice Products: Factors leading to purchase decision: Product Features> Price > Brands > Promotion 41 APPENDIX 2: QUESTIONNAIRES EXPLORE CUSTOMERS’ DEMANDS AND HABITS OF DRINKING FRUIT JUICE IN HCMC - VIETNAM Zone: Day … Month …… 2010 HCMC Mon Tue Fri Sat Wed Thur Sun Respondent: Address: Ward: District: Tel /HP: PART 1: PERSONAL INFORMATION INFORMATION Q1 Please provide your gender Code Q2 Male Female Please provide your ages Code Under 15 15-25 26-35 Above 35 42 Q3a Have you drink fruit juice last month? Q3b Do you intend to drink Fruit Juice in near future? Code Q4 Yes No Q3a Q3b Note Just answer this part and close Reason why you don’t drink Fruit Juice Code Q5 Not delicious Have other way to get healthy Other (please specify) Is there any one in your family drinking fruit juice? Code Q6 My husband / wife My siblings My parents My Children Please indicate your qualification Code Secondary School or Under High School College / University Above 43 Q7 Please provide your current professionals Code Q8 Worker Staff Manager / Sr Executive Government Officer Private Enterprise Other (please specify): What you at your leisure time? Code Read Newspaper Magazine Read Novels Watch TV Listen Music Meeting Friends at Coffee Shop Go to Bar, Discotheque Chat / Face book Surfing Internet Go to Beauty Spa Other (please specify) 10 PART 2: ATTITUDE IN DRINKING FRUIT JUICE Q9 Reason why you choose Fruit Juice but not others Code Give healthy and nutrition Refresh 44 Delicious Other (please specify) Q10a How often you buy fruit juice Q10b How often you use fruit juice Code Q11 2-3 times / week Weekly 2-3 times/ month Monthly Less often Q9a Q9b Buying Using Please indicate where you usually drink fruit juice (max option) Code At cafeteria At drinking shop like bubble tea, yogurt At drinking booth in supermarket At street vendor At restaurant At home, self-made 45 Q12 Please indicate whom you go with to have a fruit juice drink (max options) Code Q13 With friends With lover With family With colleagues With partners/Clients Alone Please indicate when you drink fruit juice (max options) Code Q14 Whenever I want After having meal Dawn Evening When thirsty Others Please indicate how you drink a glass of fruit juice Code Put in refrigerator With Ice 46 Q15 No ice, no cold Mixed with wine Add sugar Add more flavor Mixed lots of Fruit Juice together Others _ please indicate Please provide the price of a fruit juice you usually use Code Q16 Below 20.000 VND From 20.000 – 40.000 VND Above 40.000 VND Form of Fruit Juice Shop you want Code Note Buy Fruit to process at home End Takeaway shop Go to question 16 and end Shop having space to enjoy Go to question 17 47 Please indicate level of important of these factors below for a takeaway shop Q17 Q18 Very unimportant Unimporta nt Norma l Importan t Very Important Fruit should be fresh Variety of Fruit High hygienic juice Good Waiter / Waitress Convenient location Please indicate level of important of these factors below for a takeaway shop Very unimportant Unimporta nt Norma , Importan t Very Important Fruit should be fresh Good appearance fruit juice drink Variety of Fruit High hygienic juice Good Waiter / Waitress Convenient location Please indicate you level of agree with the below factors for decoration of the shop Q19 Strongly disagree Disagree Neutral Agree Strongly Agree small, nice and warm shop big, have outdoor area traditional decoration with plants & trees modern, business education with info of health and nutrition 48 Please indicate you level of agree with the below factors for added values to the shop Q20 Strongly disagree Disagree Neutral Agree Strongly Agree fruit should be process right after customer choose Customers can choose whatever juice and let the staff to process The shop should have menu of fruit dishes The shop should have info of nutrition’s and healthy Menu should have more drink good for beauty 49 APPENDIX 3: DATA REPORT Purpose of choosing fruit juice Strongly Agree Agree Healthy & Nutrition Products 79% 20% Refresh 25% 50% Delicious 20% 30% Professionals Professional Percentage Worker 2% Clerk / Office staff 26% Manager / Senior Executive 10% Officer 2% Private Enterprise 4% High school Student 23% University Students 33% Leisure time activities Options Percentage Read Newspaper Magazine 58% Read Novels 25% Watch TV 65% Listen Music 55% Meeting Friends at Coffee Shop 65% Go to Bar, Discotheque 13% Chat / Face book 33% Surfing Internet 38% Go to Beauty Spa 23% Attitude of drinking Fruit Juice Options Percentage 50 Put in refrigerator 48% With Ice 43% No ice, no cold 15% Mixed with wine 5% Add sugar 5% Add more flavor 5% Mixed lots of Fruit Juice together 30% When to drink fruit juice Options Percentage Whenever I want 70% After having meal 18% Dawn 15% Evening 33% When thirsty 30% Who to go with Options Percentage With friends 90% With lover 33% With family 40% With colleagues 40% With partners/Clients 13% Alone 15% Where to drink fruit juice Options Percentage At cafeteria 53% At drinking shop like bubble tea, yogurt 50% At drinking booth in supermarket 40% At street vendor 15% At restaurant 28% At home, self-made 35% 51 Price Total high school students executive below 20,000 VND 43% 0.24 11% 0.07 20.000 - 40.000 VND 50% 0.08 5% 0.38 over 40.000 VND 8% 0.00 1% 0.07 Options Buying Using Daily 3% 3% 2-3 times / week 25% 23% Weekly 20% 20% 2-3 times/ month 20% 23% Monthly 20% 18% Less often 13% 15% Frequency of Buying and Using Fruit Juice Where prefer to enjoy Options Percentage At Home 27% Buy at Takeaway Shop 28% A Stylish Shop to Enjoy 48% Factors in Takeaway Shop Very Important Important Fruit should be fresh 82% 10% Variety of Fruit 55% 45% High hygienic juice 82% 9% Good Waiter / Waitress 18% 25% Convenient location 55% 43% Factors in Shop where have space to enjoy 52 Very Important Important Fruit should be fresh 83% 12% Good appearance fruit juice drink 31% 29% Variety of Fruit 60% 30% High hygienic juice 69% 55% Good Waiter / Waitress 34% 40% Convenient location 24% 30% Option Strongly agree Agree small, nice and warm shop 30% 35% big, have outdoor area 25% 30% traditional decoration with plants & trees modern, business education with info of health and nutrition 35% 28% 40% 40% Strongly agree Agree 59% 14% 34% 48% 45% 28% 41% 24% 52% 34% 28% 24% Decoration of the Shop Added service for a shop Fruit should be process right after customer choose Customers can choose whatever juice and let the staff to process The shop should have menu of fruit dishes The shop should have info of nutrition’s and healthy Menu should have more drink good for beauty Shop should have spa area with beauty service by fruit ... juice shop Knowing that situation, we start a project about Exploring Customers? ?? demands and habits of drinking fruit juice in Hochiminh City – Vietnam This project has ambitious to find demands. .. Chart of level of professional p.18 Chart of Things doing at Leisure Time p.19 Chart of Purpose for Using Fruit Juice p.20 Chart of Frequency of Drinking Fruit Juice p.21 10 Chart of Attitude of Drinking. .. topic ? ?Exploring Customers Demands and Habits of Drinking Fruit Juice In Hochiminh City? ?? The author has had a lot of efforts to gather information as well as to conduct a research to understand