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ACKNOWLEDGEMENT
It is my pleasure to express my gratitude to all those who have helped me make this
thesis possible. Without them, I could not have completed this project.
First of all, I would like to thank all professors, doctors of Hochiminh Open
University and professors from Solvay Business School for the systematized
knowledge and new knowledge during the course MBMM which I could not have
during professional working time in last 10 years.
I would like especially thank to Dr.Nguyen Minh Ha, my tutor for the final thesis,
without any day learning in his class, but I received abundant guidance, information
and particularly his enthusiasm in tutoring. Without his tutoring, my thesis will not
be completed.
I also thank to Ms.Janet Leong, my General Manager of Puratos Vietnam, who
helped to consult me for practical advices from her own experience and from
company’s aspects.
I highly appreciate my classmates, group mates for the sharing, encouraging,
challenging me during the course and in the period doing final thesis.
Lastly, and most importantly, I feel a deep sense of gratitude for my dearest wife,
family who gave me both financial and moral supports that I needed during 2 year
studying, and to my little baby girl is the very last thanks for her bringing happiness
to my life during studying time.
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TUTOR’S COMMENTS
CANDIDATE:
Quang Minh Truc
PROJECT TITLE:
MARKETING
BAKERY
PLAN
PRODUCTS
FOR
FOR
DEVELOPING
KIDS
IN
SUPERMARKETS
COMMENTS:
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TABLE OF CONTENTS
COMMITMENTS ................................................................................................................. 1
ACKNOWLEDGEMENT ..................................................................................................... 2
TUTOR’S COMMENTS ....................................................................................................... 3
TABLE OF CONTENTS....................................................................................................... 4
LIST OF FIGURES ............................................................................................................... 6
LIST OF TABLES ................................................................................................................. 7
EXECUTIVE SUMMARY ................................................................................................... 8
CHAPTER 1: INTRODUCTION ........................................................................................ 10
1.1
Problem statement ................................................................................................. 10
1.2
Study objectives .................................................................................................... 10
1.3
Scope and scale of project ..................................................................................... 11
1.4
Research methodology .......................................................................................... 11
1.5
Significance of this study ...................................................................................... 12
1.6
The study structure ................................................................................................ 12
CHAPTER 2: PURATOS INTRODUCTION ..................................................................... 13
2.1 Vision, Mission and Values ....................................................................................... 13
2.2 Puratos’ marketing activities and conceptual framework .......................................... 15
CHAPTER 3: LITERATURE REVIEW ............................................................................. 16
3.1 Marketing plan ........................................................................................................... 16
3.2 Market analysis .......................................................................................................... 17
3.3 Marketing objectives, targeting and positioning ....................................................... 19
3.4 Marketing mix 4P’s to 4C’s ....................................................................................... 20
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3.5 Resource and financial plans ..................................................................................... 22
3.6 Marketing Implementation ........................................................................................ 23
CHAPTER 4: RESEARCH METHODOLOGY ................................................................. 24
4.1 Research methodology............................................................................................... 24
4.2 Questionnaire development ....................................................................................... 25
4.3 Training and pre-test .................................................................................................. 25
4.4 Free trial products and Interviews ............................................................................. 26
4.5 Data collection and analysis ...................................................................................... 27
CHAPTER 5: MARKETING PLAN FOR DEVELOPING BAKERY PRODUCTS FOR
KIDS IN SUPERMARKETS .............................................................................................. 28
5.1 Company mission ...................................................................................................... 28
5.2 Market analysis .......................................................................................................... 30
5.3 Company’s current marketing status: ........................................................................ 35
5.4 Marketing plan for period 2012 - 2013...................................................................... 39
5.5 Marketing activities for marketing plan .................................................................... 41
5.6 Resource and budget for marketing plan ................................................................... 50
5.7 Implementation plan .................................................................................................. 54
5.8 Evaluations ................................................................................................................ 55
CHAPTER 6: CONCLUSIONS AND RECOMMENDATIONS ...................................... 57
REFERENCES .................................................................................................................... 59
APPENDIX.......................................................................................................................... 61
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LIST OF FIGURES
Figure 2-1: Puratos Group – key figures ...................................................................14
Figure 2-2: Evolution of the annual turnover (in Million €) .....................................14
Figure 5-1: Puratos Vietnam past 5 years’ growth ...................................................29
Figure 5-2: Puratos Vietnam sales forecast, growth forecast ...................................29
Figure 5-3: Age and sex distribution for the year 2010 ............................................31
Figure 5-4: Vietnam GDP annual % growth .............................................................31
Figure 5-5: Forecast foods consumption in Vietnam 2004-2014 .............................32
Figure 5-8: Customer’s acceptance price to buy bakery for their kids .....................45
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LIST OF TABLES
Table 3-1: Marketing mix from 4 Ps to 4 Cs as Lauterbon’s principle ....................20
Table 5-1: SWOT analysis – Puratos Vietnam .........................................................33
Table 5-2: Sales forecast, marketing budget forecast ...............................................36
Table 5-3: Marketing activities and budget plan ......................................................37
Table 5-4: Summary project’s objectives .................................................................40
Table 5-5: Project’s budget allocation (USD)...........................................................51
Table 5-6: Project implementation plan ....................................................................54
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EXECUTIVE SUMMARY
Regarding the market situation, company’s strategies and marketing budget
as well as our position in Vietnam market, this marketing plan aims to provide a
thorough understanding about current bakery products in supermarket and form a
base for new development bakery products for kids, in order to achieve marketing
objectives and gaining competitive advantage for Puratos, fulfill company mission
of double sales of Puratos group in the period year 2010 to 2018 and particular
target for Puratos Vietnam with 35% growth each year in supermarket channel.
The is ongoing co-operative project between Puratos as ingredient supplier
and Big C casino as retailer in Vietnam, and it is planned to be completed for 12
months from April 2012, starting from concepts, ideas development to fully
implementation in all Big C supermarkets nationwide by April 2013.
Free trial products in the research by quantitative nature and data analysis are
considered main important activities of project when we applied in field survey for
900 samples in 3 Big C supermarkets in Hochiminh city in the South and Hanoi city
in the North to represent for nationwide Vietnam to find out buying behaviors,
products preference, important influencing factors on bakery products from kids’
perspectives to form a base of understanding for future products development for
our target customer: kids.
Budget for the project is fairly shared for both sides, in which Puratos is
responsible for products developments by technical supports, products support
during the survey and soft launching phases which are extracted from marketing
budget and Big C own budget for their consumer promotion as well as
communication activities.
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From the ideas of this project we have very positive feedbacks from
customer about our capability in consumer insight understanding, technical supports
and ability to help them explore new sales opportunity. We are now on progress
tracking sales performance, review and develop more new products and
improvement packing as well as production cost to improve profit before official
launching in April 2013.
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CHAPTER 1: INTRODUCTION
The first chapter gives overall information about the study: reasons we need to
do, for what purposes, in certain extent of business status, the ways we do and
significance of the study as well as how the thesis is structured.
1.1 Problem statement
In the context of Vietnam economic is developing very well, bakery as one
of big foods business is proving its aggressive growth in recent years, especially in
supermarket channel, which make them become one of key customers in bakery
ingredient business. Puratos, a business to business ingredient supplier, wants to
take foothold in this important strategic channel by doing partnership marketing
with key customers, aiming to gain long term relationship, and gaining sales to
fulfill company business mission and marketing vision: Reliable partner in Business
through project Development bakery products for kids in supermarkets. In the
context of market competition is tougher with many new entering competitors,
company budget is higher, only by developing new ideas, concepts for customers
we can achieve our business purpose to secure constant sales growth 20% a year.
1.2 Study objectives
The first objective of the study is to build a marketing plan for developing
bakery products for kids in supermarket based on market survey results. From the
marketing plan, we have better understanding about budget to spend versus
marketing budget, as well as expected business results for company strategic
decision making. Another important objective of this project is to make the base
form for later studies for business development.
The project was made for Puratos Vietnam supplier and Big C casino as big
retailer in Vietnam which want to innovate new business opportunities in bakery
products. The two companies need to develop a new range of bakery and patisserie
11
products specific for kids shopping in Big C supermarkets to enlarge current
products portfolio and to increase sales. This is why thesis aims to provide
information about bakery markets and retail business in Vietnam in order to find the
right products to introduce to market.
By fully deploying this new products range within one year, we expect to
gain extra sales 10% on current bakery category at Big C supermarkets through 5 to
10 new products for kids, this can help Puratos to increase at least 7% incremental
sales on current and new ingredient products.
1.3 Scope and scale of project
The project scope is limited for only one specific customer: Big C Casino in
Vietnam, which currently has 17 stores of hypermarkets and contributes around
20% sales revenue in total company sales, they are also very committed to long
term investment in Vietnam market and for bakery category. Other supermarket
customers are not in the extent of this project study due to un-relevant customer
profile, not strong commitment to bakery category development or lacking of
resource to do. By successful deployment to all Big C supermarkets, we expect the
sales increase 7% - 10% from this project. The period of this marketing plan is 12
months from April 2012.
1.4 Research methodology
Research methodology for project is simplified without involvement of
professional market research agency, event agency due to constrain in budget. All
were executed by dedicated Puratos sales and marketing staffs with cooperation
from Big C bakery development team though desk research, in field research by
quantity nature at 3 Big C supermarkets in Hochiminh and Hanoi city, and data
statistic before giving out list of relevant products to develop. In this marketing
plan, diverse information in current business context was put into analysis and
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planning consists of marketing strategy, current activities, resource and result from
interviews.
1.5 Significance of this study
In overall, this study aimed to:
Gather best understanding about shopping behaviors of shoppers in Vietnam
supermarkets.
Understand influencing factors in decision buying bakery products from kids
and parents’ perspectives.
Understand preference selection in bakery assortment for kids.
Find out possibility to increase sales of bakery products in supermarkets.
For Puratos, this is one of big cooperative marketing plan with big customer to
make solid long term partnership and become real reliable partner in customer’s
business, so it has critical meaning in making it perfect and applying for future
similar marketing plan for other projects with other customers.
1.6 The study structure
The project is structured with six chapters: this overall introduction part is as
chapter 1. Chapter 2 introduces Puratos with its performance, vision, mission and
marketing activities framework. In chapter 3, there will be reviews on literature on
marketing plan which are used as framework to make project’s marketing plan.
Chapter 4 discusses research methodology used in collecting and analysis data for
the project. The project’s marketing plan starts from chapter 5 with the framework
base on components discussed in theory part with market analysis and 4 Ps
components analysis. Chapter 6 is conclusions and some recommendations for
project.
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CHAPTER 2: PURATOS INTRODUCTION
Puratos is an international group with a full range of innovative products and
application expertise in the bakery, patisserie and chocolate sectors. Products and
services are available in more than 100 countries around the world, and in many
cases actually produced there by our subsidiaries.
Customers are artisans, industry, retailers and food service. We aim to be
‘reliable partners in innovation’ wherever we are in the world, and so help our
customers deliver nutritious, tasty food for the communities they live in. Our head
office is in Groot-Bijgaarden, near Brussels in Belgium.
Entering Vietnam from year 1998, Puratos has been supplying bakery,
patisserie and chocolate ingredients to almost bakery, patisserie customers in
Vietnam as ABC, Duc Phat, Kinh Do, Tour les Jours, Bread Talk, Big C, Metro,
Coopmart …and we are keen on the business to business sales strategy.
2.1 Vision, Mission and Values
We believe that people will attach more and more importance to the quality
of their food in the future. That is why we have adopted the unicorn, the famous
mythological animal being a symbol of ethics and determination, to stand for our
guarantee of safe, top-quality products
A mission of excellence
At Puratos, we are close to customers and consumers everywhere. We turn
technologies and experiences from food cultures around the world into new
opportunities to help customers be more successful with their business.
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With long time experience in bakery products some key figures from group level
and sales performance helps us more understand about Puratos.
Figure 2-1: Puratos Group – key figures
Source: Puratos’ website
Figure 2-2: Evolution of the annual turnover (in Million €)
Source: Puratos’ website
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2.2 Puratos’ marketing activities and conceptual framework
Market Intelligence, screening market:
Market intelligence helps to line up solutions with consumer demand. By
screening the market in various ways, we want to contribute to the aim we share
with our customers: the development of their business. Through our network of
subsidiaries and partners in over 100 countries worldwide, we can identify the latest
trends at a very early stage. We are in frequent contact with more than 200,000
customers: artisans, supermarkets, foodservice and industrial concerns. On top of
this day-to-day contact, we maintain an open and constructive dialogue with trade
organizations and other food industry stakeholders.
We are also closely in touch with consumers worldwide. The most important
countries are continuously screened to analyze new trends and identify new
business opportunities for our customers. In addition, we have developed two
powerful tools to gain direct feedback and input from end-consumers: our Sensory
Analysis service and our Sensobus.
Sensory Analysis: With the unique sensory analysis service, we help you to
understand and describe how consumers evaluate their products. In turn, it helps us
to create products based on consumer preferences. The aim of these laboratories is
to describe and compare bakery, patisserie and chocolate products and investigate
consumer responses to them, while respecting the diversity of opinions that exists
within and between different countries or regions.
Sensobus: is a unique, fully equipped sensory analysis lab on wheels. It can
host hundreds of consumers a day, near to where they actually buy their food. With
our Sensobus, we can quickly discover what consumers prefer and help our
customers and our researchers understand which solution fits best.
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CHAPTER 3: LITERATURE REVIEW
The literature review chapter will include definitions, comments and
arguments related to marketing plan, analysis market status, marketing mix
and resource planning from many organizations, professional marketers’
perspectives. This part is used as framework for marketing plan of project in
latter chapter.
3.1 Marketing plan
The American Marketing Association (AMA-2007) defines marketing as:
The process of planning and executing the conception, pricing, promotion, and
distribution of ideas, goods, and services to create exchanges that satisfy individual
and organizational objectives (Hakansson, Harrison and Waluszewski 2004). This
definition, however, depend on context and nature of business, Business-to-business
and consumer markets have differences which effects how they should be marketed
(Rope 1998). In the B2B field the number of customers as well as suppliers is
usually smaller and the communication between the seller and the buyer is more
interactive and personal than when selling to consumers (Ford et al. 1998).
Establishing a long-term relationship is also common in B2B buying whereas
consumers may change the company that they buy from on daily basis (Jobber and
Lancaster 2009).
There are two general types of marketing plans: strategic and tactical or
operational. Strategic marketing plans are usually made for the next three to five
years. McDonald (2007) and Bowie and Buttle (2004) suggest that a
tactical/operational marketing plan should be made on the basis of a strategic
marketing plan and therefore the strategic long-term plan should be made first.
When done on the basis of a strategic plan it uses the segmentation, targeting and
positioning established in the strategic plan. A tactical marketing plan typically
17
covers a short time period, one year or less. It focuses more on details and the actual
actions being taken (Bowie and Buttle 2004, McDonald 2007).
This project as cooperation between Puratos and customer, based on
company’s strategic marketing plan, is really going in ways of tactical marketing
plan for a specific new range of products launching.
There have been many books written about marketing planning but the basic
content of a marketing plan is quite similar in each of these. In this thesis the
components of a marketing plan from Wood’s (2003) book are used because the
division of different parts was clear and the structure logical. These parts which are
analysis of current market situation, SWOT analysis, marketing objectives,
marketing mix and financial plans are examined in the following parts.
3.2 Market analysis
The first stage of marketing planning is the analysis of the current market
situation. This involves examining the current situation both inside and outside of
the organization. The information gained from the analysis acts as a base for the
SWOT analysis in which the main strengths, weaknesses, opportunities and threats
of the organization are identified (Wood 2004). The main function of this market
analysis is to get an understanding of what to expect from the markets that the
company is entering to, what are the needs, problems and opportunities of that
market. This information can then be used as a guide in the future marketing
decision.
PEST analysis is a well-known type of analysis that is often used in
conducting a market analysis. The advantage of PEST analysis is that it makes
organizations con-sider external factors that could be important to their business
position and performance (Smith and Raspin 2008) PEST analysis includes
evaluating political, economic, social and technological factors of the market. There
18
have been many variations made from the PEST model. These variations also
include other factors to consider in addition to the four elements introduced in
PEST (Smith, Raspin 2008). Wood (2004) has used political, economic, social and
technological factors in her book’s external audit but has also included the
evaluation of legal, cultural, eco-logical and competitive issues.
Social and cultural factors affect the size and composition of markets and
segments. These issues also have an impact on customers’ requirements,
characteristics, attitudes and perceptions. Also demographic details should be
examined when considering important social and cultural factors. For Business to
Business selling the social and cultural trends that affect size and growth of the
industry the company is selling to (Wood 2004).
A SWOT analysis is a summary of the company’s key strengths and
weaknesses in comparison to key opportunities and threats (McDonald 2002).
Business relationships can also contribute to the organization’s strengths and
weaknesses. Therefore the business relationships should be evaluated during the
internal audit. It is important to consider the value added by suppliers and strategic
alliance partners, the capacity, quality, service, commitment and costs of suppliers,
changes in business relationships over time and level of dependency on suppliers
(Wood 2004). Also according to Wood (2004) strength is a company’s internal
capability that helps in achieving the organization’s goals, utilizing opportunities
and defending from the threats. Weakness is the exact opposite to this. It may come
in the way of achieving objectives or complicate the handling of opportunities and
threats effectively. Opportunities and threats exist outside the organization and they
cannot be changed from within the organization. They are circumstances that the
company can take advantage of (opportunities) or circumstances that have to
potential to harm the company’s performance (threats) (Wood 2004). The purpose
of making a SWOT analysis is to match the company’s resources with the
environment.
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3.3 Marketing objectives, targeting and positioning
Objectives: A marketing objective relates to what the organization is aiming
to sell, how much and to whom. Defining objectives when making a marketing plan
is important because they both set a direction for the marketing strategies and
makes it possible to determine whether the strategies have lead to the desired
outcome (McDonald, 2007). The marketing objectives should be defined in a way
that when the marketing plan is implemented it is easy to see whether they were met
or not. It is useful to express the objectives in clear terms for example percentages
or other figures, rather than using terms such as increase, improve or maximize that
lack proper measurability. Objectives serve the company most if they are in line
with the mission statement, marketing budget and market situation (McDonald
2007, Westwood 2006).
Targeting: In product specialization the company makes a certain product
that can be modified to different customer groups, and sells it to more than one
segment. The company has thus the possibility to build a strong image in the
product area that they have chosen. Market specialization includes concentrating on
serving many needs of a certain customer group (Kotler 2003). In business to
business, to be successful in cooperative development with customer, the seller
should have very clear understanding on their clients’ consumer targeting and try to
match our products with that direction, especially for large customers.
Positioning: Positioning means designing the company’s offering and image
so that it has a distinctive place in the chosen markets (Kotler 2003). Basically
positioning is the act of differentiating the company’s products or services from
those of competitors.
In B2B marketing positioning is communicated via personal selling, sales
promotion, advertising and trade shows. Bingham, Gomes and Knowles (2005)
introduce six positioning strategies for B2B marketing: positioning by technology,
20
quality, price, distribution, image and service. A company can also differentiate
from competitors by offering additional services that competitors’ service package
is lacking (Kotler et al.-1996).
3.4 Marketing mix 4P’s to 4C’s
The major marketing management decisions can be classified into one of the
following four categories, known as the 4 P’s of marketing (product, price, place,
and promotion) or the Marketing Mix (Quick MBA, 2004) and a company normally
uses several different tools in their marketing strategy.
In correspondent to 4 Ps, today organizations need to adopt the four Cs customer, cost, convenience, and communication - to achieve organizational
objectives. Coined by Robert F. Lauterborn, co-author of The New Marketing
Paradigm: Integrated Marketing Communications (NTC Business Books- 1997), the
four Cs encourage us to operate our organizations from the customer’s perspective.
Lauterborn advises the following:
Table 3-1: Marketing mix from 4 Ps to 4 Cs as Lauterbon’s principle
Seller’s view
Buyer’s view
The Marketing mix
Product
Customer wants
and needs
Price
Customer's cost
Place
Customer's
convenience
Promotion
Communication
Forget product: Study Consumer wants and needs. You can't sell whatever
you can make any more. You can only sell what someone specifically wants to buy.
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The feeding frenzy is over; the fish are out of school. Now you need to explore
them one by one, with something each particularly wants.
Forget price: Understand the consumer's cost to satisfy that want or need.
Price is almost irrelevant; dollars are only one part of cost. What you're selling
against if you're selling hamburgers is not just another burger for a few cents more
or less. It's the cost of time to drive to your place, the cost of conscience to eat meat
at all, versus perhaps the cost of guilt for not treating the kids. Value is no longer
the biggest burger for the cheapest price; it's a complex equation with as many
different correct solutions as there are subsets of customers.
Forget place: Think convenience to buy. People don't have to go anyplace
any more, in this era of catalogs, credit cards and phones in every room. On the
other hand, when they do decide to go somewhere, it's no longer only to Kroger's.
What's a poor marketer to do? Think beyond those nice, neat distribution channels
you've set up over the years. Know how each sub-segment of the market prefers to
buy, and be ubiquitous.
Forget promotion: The word is communication. All good advertising
creates a dialogue. Promotion is us out, manipulative, 1960s. Communication is
from the buyer – in cooperative, 1990s. That contrast is in the fact the fundamental
difference between the Four P's, which served so well for so long, and the Four C's,
which may be the formula for success as we leave the second millennium.
Product, price, place and promotion are passed. Consumer wants and needs,
cost to satisfy, convenience to buy and communication or the catechism for our
times (Bob Lauterborn - 1990). Lauterborn’s approach isn’t a marketing fad. It’s a
fundamental shift in management philosophy and practice, primarily in response to
dramatic changes in how people decide to purchase. So, while the product or
service is an essential ingredient, it’s pointless without a customer. Pricing affects
profits, but only to the extent that the customer will buy at your price points.
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