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International Executive Master of Business Administration BÀI TẬP NHÓM Group’s assignment Subject: Managing across culture Teacher: Profesor Dương Ngọc Dũng Group in cluding people - Phạm Xuân Nam -Lâm thị Mai Nguyệt - Dương Văn Nhân - Lê Hà Vân Nga - Nguyễn Trung Dũng - Lê Nguyễn Đăng Tuyên - Trần Bảo Sơn Class: IeMBA S01 Date: 14/09/2011 Lập kế hoạch xuất Vi tẩm gia vị ăn liền vào thị trường nhật Topic Planning marketing for the company could enter a market in these cultures (USA, Europe, China, and Japan) • Our group discussed and selected products “instant seasoned dried sting ray” of Dai Thuan Join Stock (This company is belong a member of the group) with the purpose to export to Japanese market Assignment of Group II A) Opening Exports one value product into Japanese market has always been a challenge for any food processing company in Vietnam But successfully delivering one-to-eat seafood products under the brand name in Vietnam to make the system whole retail market in Japan is the real dream for all companies in the industry - for the benefit received not just from the profits of the sale of goods which are both brand value to large and efficient distribution system - as the basis for the continuation of a successful development of products in the market with leading the world Although 20 years of exporting goods to Japan and the customer is always appreciated for the quality for "seasoning fish," but the suggestion of a Japanese company after "the tsunami crisis and nuclear power "what is about organization of processing to the final stage (eating directly) and small packaging for distribution until retail system throughout Japan through a big surprise for general corporate agreements This is a great opportunity coming before expecting of time, and may open up major turning point in the array processing operations and food business, but also a great challenge with system activities of the Company So, on one hand we can not ignore the opportunity coming, the other hand we also need to have the survey and preparation before deployment decisions The marketing plan was established as a first step in the preparation of the Company in this direction B) Content Analysis state of Dai Thuan join stock 1.1 Analysis of the environment inside the company 1.1.1 General information about the company: Founded in 1992 with capital of 250 million, the company began operations in seafood processing - based on local strengths (Khanh Hoa) is a rich source of raw materials and abundant labor The company has rapidly grown in size, market and business activities Consumer products is not only domestically but also exported to other countries in the region - and focus on Japan and Korea The company has participated in all the major stages in the food supply chain to consumers - from production to distribution and retail market In order to spread risk and using well opportunity, the company has spent about 50% of own capital to invest in other companies which have long-term growth potential in the areas of dairy, restaurant, hotel Hospitality, tourism & health care, trade, real estate Since 2008 the company moved to the form of shares stock with capital of 120 billion Since 2011 the company became a public company and enough condition to put up in the HCM City Stock Exchange as soon as the company's shareholders to decide At the moment the labor working in the Company around 250 people at the head office in Nha Trang and the representative offices (separate accounting) as HCM, Hanoi, DaNang, Hoi An, Can Tho, etc The company also has a commercial presence in Korea and soon Japan 1.1.2 The position of the company compared to peers We are company with many years of holding top positions in Vietnam in the operation processing of dried seafood and spiced, before the risk of shortages of raw materials and labor, from 2004, the company has gradually move to other outside the main products and have achieved certain successes Especially in the seafood processing industry, the company has got a lot of commodity in the market, although not large, but relatively stable growth, balanced and efficient both dried and frozen, prepared and eating directly, export and domestic consumption The company has outstanding technology in a unique and uniform infrastructure for the processing of dried seafood and spiced We are the first company investment the technology stage where to be dry seafood "greenhouse" connecting directly with regional cold rooms and processing - to ensure safety and food security The company is also one of the few units in the organized delivery system in the modern - to take control of retail outlets in all sales channels, including supermarkets The company is in final stage to show their products on the market under new brand (M Ngon) with expectations becoming strong brand - the consumer preferred 1.1.3 The state of business development of the Company (marine products): After a difficult period because of shortages of raw materials and changing activities, from 2009 we confirmed the success of the new operating Estimate the seafood industry in 2011 (actually food) of the Company will achieve a profit of 20% on capital investment and the growth rate of about 30% / year – develop for continue yearly In particular, the domestic market will see the growth - both in terms of sales, market share and brand presence – base on strategy showing M Ngon brand 1.1.5 The research and product development operating: The company has R & D department to develop new items – service for business strategy of new brands while maintaining competitiveness, long-term development both within and abroad 1.1.6 Relationship with country and abroad: We are the first company established under company law, faster development y out our obligations with government, employers and society, we always get attention, help and government Besides the marketing department and import-export business, the company is trade representative in Korea and Japan – they have got qualified experienced in their country 1.1.7 Policy for employees: Besides salary and benefits compared in the market, the company has implemented the "Program Stock Ownership for Workers" (ESOP) - to help employees of companies received 500,000 free shares (worth $ billion in nominal value) and are buying more than billion shares at par value The many staff members continued to work since the company was founded so far proved effective personnel policies here 1.1.8 Business goals (food industry): The company will move from simple processing of marine products to food processing - both raw material using from agricultural products, animal products, poultry, etc try to achieve target becoming number one about food-processing in Vietnam and maintaining the growth rate of about 30% / year and the rate is 20% profit on capital During next five years, the company will also build a strong brand in food processing Analysis of the external environment of the Company (the items selected) 2.2.1 Information about commodity trading in company: Besides the many seafood products are being spiced and foreign market favorite, the "spiced fin fish" is exports "hot" These items are considered as replacement for the "octopus with spice" with the season that serious shortages and significant price difference in time between two items (in the absence of major differences in quality as well as the amount and form of use - except habits of user) At the moment there are some famous company in Vietnam are producing this product (as Baseafood, two years, AGREX Saigon ) But with unique technology and a team of technicians, skilled workers with synchronous system, in accordance with the standards of food hygiene and safety, "spiced fin fish," the company is still considered as the best quality and best wishes to buy in Vietnam The company is struggling hard to not the Japanese customers upset by not fully meet their needs (due to lack of material) The company also has developed the processing (instant), small packaging and distribution to retail outlets in the modern distribution channels domestically The results are very good This is the preparation and testing necessary for the development of this commodity from the point to market abroad Under the original plan, the company will estimate sell the product to oversea after one year when M Ngon brand is "launched" Success in marketing domestic market (expected to begin in October 10/2011) However, with the new situation more favorable today, the original plan can be changed - if the preparation work is completed promptly 2.2.2 Competitive situation As described, at the moment the company has outstanding in the competition on export markets In general, the next step we hope we will go the first competitor At domestic market, base on modern distribution system has been set up across the country (to serve as agents for the exclusive distribution of milk products and ice cream cold for a Korean company), the company also has certain advantages in the "cover" market However, because the marketing was not previously aware of and properly implemented, the sales and the effectiveness of these items can not reach the expected level So companies have hired consultants to conduct a professional to "discover" the market, identify target customers, offering new brands, reposition and re-establish product strategy, M Ngon marketing of brands on the domestic market "For pin-to-eat fish" would be one of the first item is "wearing" a new brand to enter the market in the coming campaign We trust and hope on the success of this campaign 2.2.3 Power input (by any standard) The materials purchased from farmers in many localities across the country Despite the purchasing system and relations longtime customers as well as purchase price advantage due to the superiority of competition in the marketplace, but really, material is weakness that can lead to case "crisis" of this plan Although yields are pretty good buy, but because material are collect by wild, so we are still completely dependent on the season The searching for raw material imports is treated as a backup solution, but has yet to clear results We did not have information about the possibility of organizing and feed the aquatic product with above reason we must find the other product to replace This is one of the necessary directions and has a high success What is about quality control of raw materials, current awareness and knowledge of fishermen in the conservation of raw materials has been improved -cooperation with the fix law of the government to standardize procedures and inform route, the result of fishing, the catching material 2.2.4 Capacity to supply the company's products Seeing about capacity, the company can produce about 30 tons / month But due to lack of material resources so the actual output of the company is only at about 15 tons / month The "excess" capacity is being filled by the production of marine products other seasoned 2.2.5 Customers of the company The company now has three Japanese customers frequently purchase new items but in a "dry seasoned" (not nine) They are trading company, purchased for sale to processing companies, and that company selling out to commercial companies (also called themselves) to serve as the channel different to other retailers These plan above is suitable with ideal of representative trading of company in Japan - should be to study and prepare Under the proposal, companies should carry out processing instant product, small packaged under the brand of the company and delivery (sold off) to them If you follow this direction, will reduce intermediary costs quite a lot (at least an intermediate and an intermediate commercial production) to take effect - as well as the resources of the company help to build established brand and distribution system on the market long However, follow the plan above that mean accepting the risk will lose partners (buying material by crude) is now the same risk of failure in terms of business when the business sales plan Individual performance of the company failed with above reason during the research, preparation, the company must be very secret, for existing customers We are also considering negotiating directly with existing customers on the mode of production / new business Analysis of imported seafood market in Japan 3.1.1 Potential market and development trends The demand for seafood increases in Japan, Vietnam's exports to Japan are increasingly positive shift, similar to the restructuring of exports in other markets, from the primary products, with low value added, into the processed products, with higher value added In 2010, Vietnam exported 898 million dollars of seafood products to Japan, up 18.7% over 2009 Vietnam is a supplier of frozen shrimp leading 21% market share, and is a supplier of frozen fish phile standing number in the market of the Japanese, achieve for 2.77% market share In particular, the processed shrimp exports to Japan have growth most impressive Specifically, in 2010, Japan imported 126 million dollars processed shrimp from Vietnam, up 17.4% over 2009 Vietnam is a supplier of processed shrimp's standing number for the Japanese market, with 20.5% market share According to statistics, seven months this year Vietnam has exported 5.4 billion dollars into the Japanese market, increased 30.05% over the same period in 2010, achieve for 10.2% of total export country's exports In July alone, Vietnam exported 907 million USD, up 25.47% over the previous month and up 35.72% compared to May / 2010 Seafood turnover growth reached 92.2 million in July, up 22.35% from June and rose 2.44% compared to May / 2010, bringing the export seafood to Japan seven months of the year to 469.4 million, up 2.28% over the same period last year Although no complete statistics - the proportion of sales is quite low - but industry statistics show that the product dried spiced seafood exports from Vietnam to Japan quite stable and receiving appreciation high quality However, because many different reasons, most of the products of this group are exported as raw material has been processed though quite "good" (has fully marinated, processors in Japan, only baked, rolled that can pack sold) There are statistics on shipments of discrete-eat has been exported to Japan, but not clear about the brand The value of shipments is not large, not reflect a clear trend However, there is an objective fact that Japan remains a market in the world's largest fish - especially the spiced dried goods There has been a long time, tens of thousands of tons of seafood spiced were shipped to Japan each year, and now, the habit of using dried seafood and spiced instant as a traditional snack Japan has not decreased significantly Can confirm one thing: the market potential for Japanese seafood and spiced noodle is extremely large and the "pie cake" larger for all Vietnamese companies are manufacturing where are producing this The problem here is deciding what process involved in the supply chain is challenging It should be emphasized, after the tsunami / 2011, of contracts from Japan soared There are many reasons given and has not been clarified, but it is certainly a result of the disasters that followed the implications of supply chain has led Japan's food crisis and forced into members must view the process as a whole and thus long-term to make strategic decisions accordingly "A lot of Japanese enterprise moving production facilities in the country from abroad." is a signal that the user decision has been made of them - that is: transfer of food processing establishments crystals (consuming more resources and take more risks) to foreign countries Seafood processing industry is no exception to this trend Comments on reinforcing this when we know that the rate of refined products were also significantly reduced to levels equal to 0% (formerly of refined strongly protected by tariff barriers) makes one slow foot in the decision-making would risk severe damage At the other hand, the interruption by the transition process outlined was somewhat broken and create a "power vacancy" in certain food supply chain to consumers in Japan (which is not very effective results due to the too many intermediary steps), this allows the distribution of Japanese companies have the opportunity to "get out" (cutting down the previous paragraph) to order directly from manufacturers outside the borders Main processing capacity (and responsibility) of the manufacturer borders with quality control system of import and export of both state as well as opening up trend of Japanese consumers for the food label foreign distributors for Japan "leapfrog" The one Japanese customer suggested the possibility of directly imported goods dry spiced noodle company as a complete package (small packet), using the company's brand, to distribute the system modern retail channels is a testament to this assertion Clearly, companies need to accelerate the research and preparation for intensive "jump" into the Japanese market In all cases, the research and preparation steps are useful and necessary - because this is actually a proactive, positive, and necessarily performed, to penetrate deep into the supply chain Japanese products in particular and globalization in general 3.1.2 The provisions on import and quality standards, hygiene and food safety: Japan is a country with relatively strict rules on food imports in general and in particular the seafood - especially the provisions on prohibiting the use of chemical health hazards Limited scope of the article does not permit a full set of relevant rules, but generally, with policy of tight control of the Vietnamese state and the efforts of enterprises, technical barriers Art said the business was fully capable of doing and have serious attitude to pass with confidence Great Company itself remained steady upon its exports to the Japanese market for over 15 years 3.1.3 Taxes: Currently, Vietnam has enjoyed preferential tax rates from the Japanese government Detailed tax rate is calculated by goods, but in general, was no longer a tariff barrier to export seafood to Japan 3.1.4 The characteristics of Japanese culture and business related to the seafood industry - The Japanese carefully to details in the examination process conditions and production capacity, negotiating and performing contracts With the food processing plant, to be very focused on the sanitary conditions, activities and health of workers - both within and outside the factory Systems and procedures are also of interest in their top - The Japanese are very important "evidence": + Always doubt, scrutiny - especially at first (test pattern, type testing, testing, sales test ), must be very patient and "bear" when working with them + All the discussions and agreements are to be "evidence" of using the summary, memorandum, contract, etc + Provide proposal looks different (like the new price, high), they must prove the reasonableness (the factors leading to change) and the practicality of it (has anyone not accepted) - The Japanese are also very important "human": + Appreciate the benefits and long-term relationship of collective and personal prominence to the role - even in direct relations as well as indirectly + If you have the reputation they have introduced to establish a business relationship is very convenient - Attaching importance to trust both on time, the promise, signed documents: + It says / promises / commitments that are trying to do, + Do not be sorry it is necessary to + The question they must answer, to date also have to answer If unscheduled vacation (including holidays) prior notice must be settled first, and arrange things to - Appreciate that ceremony: They carefully in rituals - both in business and daily activities They focus on every detail - like how to greet, exchange business cards, take-catch, eat, drink, clothing, entertainment, give gifts, etc - They are special forms to judge the content provided First impression as clothing, personal style or form of their buildings are recognized as the distinguishing characteristics (difficult to change) Partner - They prefer simple, but convenient, hygienic, accurate and economical - the packaging is a good example Cartons, packaging seafood products exported to properly agreed, convenient, correct size, just enough performance and clean, simple printing usually less colorful - The Japanese respect and comply with laws and government policies - The Japanese try to avoid confrontation, avoid conflict by compromise Dealing with controversial issues in the silence to protect the peace between the parties - The Japanese utmost respect for hierarchy and order In business negotiations, the first thing making the Japanese looking is role and position of the individual partners that they will be exposed - The Japanese value the long-term interests, always driven to act in the long term benefits in the future * The outstanding feature of cultural life, the behavior of Japanese people usually apply to their business and relationships with partners, so we need to master to be prepared and "meeting ceremony" * One should also add that the above rule is not true for all Japanese In fact there are many "variations" by "international culture" - both good and bad - so, to be very alert and flexible when working with them There should also be avoided by the thought of "cult of ethnicity", "guilt, self-esteem" could lead to loopholes or weak to accept in negotiations SWOT Analysis Matrix • STRENGTHS: - System-wide purchasing of raw materials - Infrastructure (facilities) & standard uniform, - Processing capacity and outstanding product quality - Experience modern distribution (to the domestic retail channel) - Experience in exports to Japan (B2B) • WEAKNESSES: - Brand new to Japanese consumers - There is no distribution network and sales in Japan - Lack of human resources and knowledge of laws and cultural & Japan - Dependent on current commercial customers • OPPORTUNITY - Consumer demand for convenience foods is maintained - Tariff barriers are removed - Trends in refined finished product orders from foreign countries - Barriers to psychological, social and cultural descending • CHALLENGES: - The weak and the quality of the brand in Vietnam (No 2) - Competition from rival China and other countries in the region - The challenge of cultural barriers, language, psychology - Geographic distance Product Positioning The product is positioned as a snack foreign (-technology production and ordering of Japan) - safe, delicious and nutrient-rich natural Marketing plan 5.1 Target market and target customers: - Target market: Japan - Target Audience: 5.2 Marketing Objective: - Support the successful entry into the Japanese market of branded products company, - Success in the positioning of the product value and brand image among Japanese consumers 5.3 The marketing strategy (4 P) 6.3.1 Product strategy: - Products must be similar and reflect the values of: delicious, safe, nutrient-rich natural - Make a stepping stone to pave the way for the company's other products to penetrate the Japanese market 6.3.2 Pricing strategy: - Accept lower selling prices of competitors in the consumer attractive enough (but still profitable) - Accept lower performance in the supermarket channel (increased discounting and increased promotional activities) to increase awareness and confirm the similarities between product quality and values that have positioned the product as well as trademark claims - Make the most efficient from the chain, retail systems and other single-channel 6.3.3 Strategy (channel) distribution: - Use exclusive distributors have the experience to enter the market - by opening the dealer, distributor or secondary to their own distribution until the point of consumption - Starting from the local large consumption and spread across the country, - At the same time into all the major channels: supermarkets, chain convenience stores, grocery counters, and other independent retailers - The company (or representative trade offices - depending on the size and stage of development) the role of the planning, support, monitoring and evaluation When you meet the conditions and resources, the company will be able to intervene further in the selection, support and evaluation of distributors, agents, and secondary 6.3.4 Strategy for promotion / communication: - The market quickly with high discount policy - Quickly create awareness of the differences in packaging, materials displayed at point of sale - To encourage customers to try the product by the test program for food, gifts, promotions - Implementation of online media activities - aimed at the target customers - When the resources and necessary, the company may consider the use of tools, media, other advertising Evaluation, completion and implementation plan Because of this new plan on indicative draft - based on empirical knowledge (somewhat subjective) of the company and proposed recommendations of the first customers, so to be able to become a successor complete plan is feasible, the company will need to assess and improve again with the following activities: 6.1 - Conduct surveys and explore the market in general and fast food consumption in particular (in order to better define the target audience, needs, and channel their purchasing, factors encourage / discourage behavior of their purchases directly to the item expected to hit the market and the food industry in general utilities, etc ) 6.2 - Assessing the risk of changes in customers, products and business methods to the Japanese market 6.3 - Based on the information and updated results from its activities in Sections 6.1 and 6.2, complete business plan and marketing plan 6.4 - To report before the council plans to review and approve or decide to continue to adjust plans 6.5 - Organization negotiations distributor selection 6.6 - Organization to create, brand name selection, logo design, packaging, supplies, advertising programs, documentation on the goods, labels, etc 6.7 - To recruit and train a team of marketing, sales and support and supervise the distribution 6.8 - Organization of production and sales 6.9 - Implementing sales promotional activities, communications, product promotion and brand ... the market potential for Japanese seafood and spiced noodle is extremely large and the "pie cake" larger for all Vietnamese companies are manufacturing where are producing this The problem here... because the marketing was not previously aware of and properly implemented, the sales and the effectiveness of these items can not reach the expected level So companies have hired consultants... (in order to better define the target audience, needs, and channel their purchasing, factors encourage / discourage behavior of their purchases directly to the item expected to hit the market and
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