Brand building strategy for cosy sweet cracker Kinh Do food corporation

TRUONG DAI HOC MO HO CHI MINH UNIVERSITEÙ LIBRE DE BRUXELLES

HO CHI MINH CITY OPEN UNIVERSITY SOLVAY BRUSSELS SCHOOL

ECONOMICS & MANAGEMENT

MMA7

NGUYEN DUC TAI – NGUYEN THI THANH TAM

BRAND BUILDING STRATEGY FOR COSY SWEET CRACKER -

KINH DO FOOD CORPORATION

MASTER PROJECT

MASTER IN MARKETING & ADVERTISING

ACKNOWLEDGEMENTS

First of all, we would like to express our greatest gratitude to Prof. Marianne Claes

for her first guideline of the structure of this project.

And then, we also give special note of Thanks to Mr. Minh Nhut for his guidance on

this paper.

We are indebted to Marketing Department of Kinh Do Corporation for their valued

strong support and continued encouragement as well as the courtesy of facts and

figures presented in this project.

We would like to take this opportunity to send our special thanks to all professors

and staffs of Solvay Vietnam-Belgium and Open University, our families & friends,

who have brought us invaluable support throughout.

COMMITMENTS

We, Nguyen Duc Tai and Nguyen Thi Thanh Tam commit that we have written this

project by ourselves based on the information collected from Kinh Do Corporation

and electronic sources.

This project is designed only for the academic purpose of the completion of our

Master in Marketing and Advertising Management. We agree that it freely

available for reference and study. It is unexpected for copying and publication or

any other uses.

TABLE OF CONTENTS

I. Introduction .......................................................................................................................... 1

1. Vietnam Food industry.............................................................................................. 1

1.1 Vietnam’s economy effect to food industry............................................... 1

1.2 The development of Vietnam confectionery industry......................2-3

2. Kinh Do Food Corporation ........................................................................................ 3

2.1 History........................................................................................................................ 3

2.2 Vision-Mission-Value.......................................................................................3-4

2.3 Kinh Do product portfolio................................................................................. 4

2.4 Kinh Do’s revenue Structure............................................................................ 5

2.5 Category-Sweet cracker analysis ...............................................................6-8

2.6 Kinh Do biscuit category introduction ................................................. 9-10

3. Cosy brand introduction and portfolio......................................................11-12

II. Current analysis ..................................................................................................................12

1. 3C business model analysis ..................................................................................12

1.1 Consumer................................................................................................................12

1.1.1 Customer Segmentation...........................................................................13

1.1.2 Target customers .................................................................................14-15

1.2 Competitor .............................................................................................................15

1.2.1 Price strategy........................................................................................15-16

1.2.2 Distributions ................................................................................................16

1.2.3 Communication....................................................................................16-18

1.3 Corporation (Cosy-KIDO)................................................................................18

1.3.1 Cosy brand strategy ...........................................................................18-22

1.3.2 Market share .........................................................................................22-23

1.3.3 Brand Awareness ................................................................................23-24

2. SWOT..............................................................................................................................25

III. Solution...................................................................................................................................26

1. Objectives.........................................................................................................................26

2. Solutions...........................................................................................................................26

2.1 Competition-based branding strategy..........................................................26

2.2 Brand management strategy.............................................................................27

2.3 New consistent Story concept ..........................................................................27

2.4 Using brand conversion pyramid to increases sales .......................27-28

2.5 Consumers touch points selection..................................................................28

IV. Recommendation ...............................................................................................................28

1. Competition-based branding strategy.........................................................28-29

2. Brand management strategy...................................................................................29

3. Create new key message and concept .........................................................29-31

4. Consumer touch point selection............................................................................32

5. Product display..............................................................................................................32

6. Integrated Marketing Communication Strategy 2014.................................32

7. Marketing Plan of Cosy Brand for 2014.............................................................33

8. Conclusion and Evaluation................................................................................34-35

V. References.......................................................................................................................36-37

VI. Appendixes.....................................................................................................................38-43

EXCUTIVE SUMMARY

Growth of young middle and upper class population makes Vietnam an appealing

proposition among Asian Pacific economies. Specifically, the Vietnamese food

market is growing rapidly and attracting significant market entrance in recent

years, thus the competition between domestic and foreign brands is getting more

intense. And Kinh Do Corporation, one of the biggest food corporations, has also

faced with that intense competition from foreign brands. With a very wide range

of product category portfolio, Kinh Do has given a restructuring of brands strategy.

Their objective is to maximize profit with minimizing investigation in branding and

marketing. And cracker category with Cosy brand is a pioneer in brand

restructuring. Cosy portfolio includes: Cosy Marie (the group leading product),

stick wafer, cube wafer, seasame biscuit, mini butter biscuit, cream sandwich

biscuit.

With a steady growth in consumption of biscuit category in Vietnam up to year

2017, there is a potential market for Cosy to increase the Sales revenue as well as

market share of Biscuit Category in the market. Currently, there are four big

brands in biscuit market that includes: Cosy (KIDO), Oreo (Kraft Food), Goute

(Orion), Cream O (Jack and Jill).

Not only because of the optimal investment goal in marketing and branding

activities for Cosy, but also due to brand awareness of all Cosy products is not high

and product communication style is not consistent from the launch of Cosy

portfolio.

During the study of Cosy marketing plan, we have found out some areas of

improvement and would like to recommend bolding brand awareness, expanding

market share and market size of Cosy umbrella by creating new communication

concepts with the purpose to meet the customer demand for biscuit products.

LIST OF ABBREVIATIONS

GDP Gross Domestic Product

GSO General Statistics Officer

BMI Business Monitor International

MOIT Ministry of Industry and Trade

KDC Kinh Do Corporation

ATL Above The Line

BTL Below The Line

WTO World Trade Organization

HCM Ho Chi Minh City

HN Ha Noi City

R&D Research and Develop

MOST Ministry of Science and Technology

MOH Ministry of Health

FIGURES

FIGURE 1: Annual growth rate of Vietnam’s Gross Domestic Product

FIGURE 2: Vietnam GDP per Capital

FIGURE 3: Food consumption forecast in Vietnam 2010 -2017

FIGURE 4: Confectionery sales forecast from 2010 to 2017

FIGURE 5: Logo of Kinh Do Corporation

FIGURE 6: KINH DO product portfolio

FIGURE 7: The Sales Revenue divided by category of Kinh Do in 2012

FIGURE 8: The Value Share of food industry in 2011

FIGURE 9: The value share of Biscuit Category in 2011

FIGURE 10: The sales value of sweet cracker from 2006 to 2008

FIGURE 11: The value share of Sweet cracker in market 2012

FIGURE 12: The Value share of Sweet Cracker In key cities in 2012

FIGURE 13: KIDO’s biscuit category portfolio

FIGURE 14: KIDO’s all biscuit brands positioning map

FIGURE 15: Research number of people loyalty with biscuit product

FIGURE 16: the decreasing of market share of KIDO’s biscuit compare with

competitors

FIGURE 17: Research number of people aware Cosy product compare with

competitors.

FIGURE 18: The percentage of people aware Cosy product by TVC advertising

compare with competitors

FIGURE 19: 3C’s model

FIGURE 20: Customer-Based Brand Equity model

FIGURE 21: Print Advertising for new concept of Cosy