Marketing strategy for poca snack 2012 - 2015

NGUYEN THI MY NGOC

MARKETING STRATEGY FOR POCA SNACK

2012 – 2015

MASTER PROJECT

MASTER IN BUSINESS & MARKETING MANAGEMENT

Tutor’s Name: Dr. Nguyen Minh Kieu

Ho Chi Minh City

(2012)

TRƯỜNG ĐẠI HỌC MỞ TP.HCM UNIVERSITÉ LIBRE DE BRUXELLES

HO CHI MINH CITY OPEN UNIVERSITY SOLVAY BRUSSELS SCHOOL

MBMM5

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CERTIFICATE

I certify that the substance of this project has not been submitted for any other degree and

is not currently being submitted for any degree or qualification.

I also certify that, to the best my knowledge, any help received in preparing this project,

and all the resources used have been acknowledged in this project.

Signature:………………………………………..

NGUYEN THI MY NGOC

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ACKNOWLEDGEMENTS

Firstly, I would like especially to acknowledge my Direct Professor, Dr. Nguyen Minh

Kieu – Vice Dean of graduate office from HCMC Open University, for his guideline,

advice, support and contributions throughout this project.

Secondly, I also want to acknowledge Dang Thanh Hung – Marketing Manager for his

comments on the project’s methodology and valuable experience in doing project. I also

grateful thank the Marketing Department of Pepsi International Company for their

supporting data on my cases study.

Next, I also wish to thank Prof. Olivier Kupferman of the subject Marketing & Business

Planning and Prof. Jean – Pierre Baeyens of the subject Strategic marketing for their

theory.

I am particular great thank the founders of this study program, Prof. Tran Anh Tuan who

create opportunity for me to study this useful program as well as all professors and

coordinators of this study program.

Finally, I am grateful for my family, my friends, my classmates for their support and

encouragement to pursue this study successfully.

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TABLE OF CONTENTS

 Certificate ........................................................................................................ Page i

 Advisor’s comments....................................................................................... Page ii

 Acknowledgements .......................................................................................Page iii

 Table of contents ........................................................................................... Page iv

 List of abbreviations...................................................................................... Page vi

 List of tables and figures .............................................................................. Page vii

CHAPTER 1: INTRODUCTION............................................................................Page 01

1.1 Rationale of the study.................................................................................. Page 01

1.2 Objective of the study.................................................................................. Page 01

1.3 Scope and limitations .................................................................................. Page 01

1.4 Research method ........................................................................................ Page 02

1.5 Structure of study ........................................................................................ Page 02

CHAPTER 2: LITERATURE REVIEW OF MARKETING STRATEGIES ...Page 03

2.1 Concept of Marketing Strategy ................................................................... Page 03

2.1.1 Definition of Marketing Strategy.................................................... Page 03

2.1.2 Marketing strategy process ............................................................. Page 03

2.2 Marketing Strategies.................................................................................... Page 04

2.2.1 The Competitive strategies ............................................................. Page 04

2.2.1.1 Market leader strategies...................................................... Page 04

2.2.1.2 Market – challenger strategies............................................ Page 06

2.2.1.3 Market follower strategies.................................................. Page 07

2.2.1.4 Market niches strategies..................................................... Page 08

2.2.2 The Product life cycle strategies..................................................... Page 09

2.2.2.1 Strategies for the introductory phrase................................. Page 09

2.2.2.2 Growth strategies................................................................ Page 10

2.2.2.3 Strategies for Maturity........................................................ Page 10

2.2.2.4 Strategies for decline .......................................................... Page 11

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2.2.3 The product line strategies.............................................................. Page 12

CHAPTER 3: THE MARKET ANALYSIS...........................................................Page 15

3.1 Marketing environment analysis ................................................................. Page 15

3.1.1 Macro-environment analysis........................................................... Page 15

3.1.1.1 State of the world................................................................ Page 15

3.1.1.2 State of economic development in Vietnam....................... Page 16

3.1.1.3 Demography in Vietnam ................................................... Page 16

3.1.1.4 Social trend in Vietnam...................................................... Page 18

3.1.1.5 The government promotes local products .......................... Page 18

3.1.1.6 Environment concerns........................................................ Page 19

3.1.2 Micro – environment analysis......................................................... Page 19

3.1.2.1 Market analysis................................................................... Page 19

3.1.2.2 Distribution trend................................................................ Page 22

3.1.2.3 Competitor information...................................................... Page 26

3.1.2.4 Customer insight................................................................. Page 35

3.2 Pepsi International and Poca brand information. ........................................ Page 41

3.2.1 Pepsi International information....................................................... Page 41

3.2.2 Poca snack information................................................................... Page 42

3.2.3 Poca Sales performance .................................................................. Page 43

3.2.4 Poca Marketing performance ......................................................... Page 49

3.3 Poca SWOT analysis................................................................................... Page 51

CHAPTER 4: MARKETING STRATEGIES 2012 – 2015 .................................Page 53

4.1 Vision and Mission ..................................................................................... Page 53

4.2 Marketing Objectives ................................................................................. Page 53

4.3 Marketing Strategies from 2012 to 2015 .................................................... Page 53

4.3.1 Overall strategies for Poca snack category .................................... Page 53

4.3.2 Competitive strategies .................................................................... Page 55

4.3.2.1 Strategies for Potato Chip .................................................. Page 55

4.3.2.2 Strategies for Extruded snack ........................................... Page 55

4.3.2.3 Strategies for Peanut .......................................................... Page 57

4.3.3 Marketing mix strategies ................................................................ Page 58

4.3.3.1 Product strategies ............................................................... Page 58

4.3.3.2 Price strategies ................................................................... Page 65

4.3.3.3 Place strategies .................................................................. Page 65

4.3.3.4 Integrated marketing communication strategies ................ Page 67

CONCLUSION ........................................................................................................Page 70

APPENDIX................................................................................................................Page 71

REFERENCES .........................................................................................................Page 75

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LIST OF ABBREVIATIONS

FMCG: Fast moving customer goods

GDP: Gross Domestic Product

SWOT: Strengths, Weakness, Opportunities, and Threats

CEO: Chief Executive Officer

PR: Public Relationship

GT: General Trade

MT: Modern Trade

R&D: Research and Development

BCG: Boston Consulting Group

SBU: Strategic business unit

CPI: Consumer Price Index

CAGR: Compounded Annual Growth Rate

KA: Key Account

IMC Integrated Marketing Communication.

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LIST OF TABLES & FIGURES

FIGURE

Figure 2.1: Strategic planning process. ..................................................................Page 04

Figure 2.3: The BCG growths – share matrix. .......................................................Page 12

Figure 3.1 Total Vietnam Population 2009 ............................................................Page 17

Figure 3.2: Sales of Package Food by Category: Value 2005-2010. .....................Page 20

Figure 3.3: Sales Sweet and Savoury Snack by Category: Value 2005- 2010. .....Page 20

Figure 3.4: Sales Growth of Sweet and Savoury Snack. .......................................Page 21

Figure 3.5 : Share of Sales Sweet and Savoury Snack by Category

2010 vs 2005. ......................................................................................Page 21

Figure 3.6: Sales Sweet and Savoury Snack by Category: Value 2010 – 2015. ...Page 22

Figure 3.7: Total Vietnam Share of Trade. ............................................................Page 23

Figure 3.8: Brand Loyalty. .....................................................................................Page 24

Figure 3.9: Sales of Sweet and Savoury Snack by Distribution format:

% Analysis 2005 – 2010. ....................................................................Page 24

Figure 3.10: Penetration Rate for each SKU / CHANNEL. ..................................Page 25

Figure 3.11: Sweet and Savoury Snack Company Share 2009. .............................Page 26

Figure 3.12: Sweet and Savoury Snack Brand Share 2009. ..................................Page 27

Figure 3.13 Tan tan’s Portfolio. .............................................................................Page 29

Figure 3.14: Kinhdo’s Portfolio. ............................................................................Page 31

Figure 3.15: Orion’s Portfolio. ..............................................................................Page 32

Figure 3.16: Oishi’s Portfolio. ...............................................................................Page 34

Figure 3.17: Ratios of Snack usage. ......................................................................Page 35

Figure 3.18: Frequency of Usage. ..........................................................................Page 37

Figure 3.19: Place to buy Snack. ...........................................................................Page 38

Figure 3.20: When to buy Snack. ..........................................................................Page 38

Figure 3.21: Where to buy Snack. .........................................................................Page 40

Figure 3.22: Who to buy Snack with. ....................................................................Page 40

Figure 3.23: Reasons to eat Snack. ........................................................................Page 41

Figure 3.24: Benefit to eat Snack. ..........................................................................Page 41

Figure 3.25: Poca snack’ categories’ portfolio ......................................................Page 43

Figure 3.26: Sales of Poca snack: Value 2006 – 2011. ..........................................Page 44

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Figure 3.27: Sales of Poca Snack: % value growth 2006 – 2011. .........................Page 44

Figure 3.28: Sales of Poca Snack by Category: % analysis 2011...........................Page 45

Figure 3.29: Sales of Poca snack by Distribution: % analysis 2011. .....................Page 45

Figure 3.30: Sales of Poca snack by Distribution: % analysis 2011. ..............................Page 46

Figure 3.31: Value map of Poca Snack. .....................................................................Page 47

Figure 3.32: Price index in Potato chip 2011. ........................................................Page 48

Figure 3.33: Price index in Extruded snack 2011. .................................................Page 48

Figure 3.34: Price index in Peanut 2011. ...............................................................Page 49

Figure 4.1: Poca BCG Matrix. ...............................................................................Page 54

Figure 4.2: Poca snack products life cycle. ...........................................................Page 58

Figure 4.3: A vertical marketing system of Poca Snacks. .....................................Page 66

TABLE

Table 3.1: GDP Real Growth rate and Inflation rate, CPI Year average (%).........Page 16

Table 3.2: Pocato chip Brand Equity 2011. ...........................................................Page 49

Table 3.3: Extruded snack Brand Equity 2011 ......................................................Page 50

Table 3.4: Peanut Brand Equity 2011.....................................................................Page 50

Table 4.1: Poca BCG Matrix. ................................................................................Page 54

Table 4.2 Marketing Mix for Poca snacks. ............................................................Page 59

Table 4.3: Poca snacks’ targeting ..........................................................................Page 60

Table 4.4: Poca snacks’ positioning. .....................................................................Page 61

Table 4.5: Poca snacks pack sizes and flavors. ......................................................Page 62