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UNIVERSITY OF ECONOMICS AND LAW FACULTY OF INTERNATIONAL ECONOMIC RELATIONS TEAM PROJECT DEVELOPING NEW INSTANT NOODLE BRAND FOR VINAACECOOK IN SOUTH AFRICA SUBJECT: INTERNATIONAL MARKETING LECTURER: M.A. NGUYEN CONG HOA CLASS: K11402T MEMBERS: Duong Hang Anh, St. Code: K114020096 Nguyen Hoang Anh Duy, St. Code: K114020109 Do Thi Bich Nghiem, St. Code: K114020160 Bui Anh Tu. St. Code: K114020350 Dang Ba Anh Thi, St. Code: K114020192

Transcript of InterMar - South Africa[FINAL]

Page 1: InterMar - South Africa[FINAL]

UNIVERSITY OF ECONOMICS AND LAWFACULTY OF INTERNATIONAL ECONOMIC RELATIONS

TEAM PROJECT

DEVELOPING NEW INSTANT NOODLE BRAND FOR VINAACECOOK IN SOUTH AFRICA

SUBJECT: INTERNATIONAL MARKETING

LECTURER: M.A. NGUYEN CONG HOA

CLASS: K11402T

MEMBERS:

Duong Hang Anh, St. Code: K114020096Nguyen Hoang Anh Duy, St. Code: K114020109Do Thi Bich Nghiem, St. Code: K114020160Bui Anh Tu. St. Code: K114020350Dang Ba Anh Thi, St. Code: K114020192

HO CHI MINH CITY, MAY 2014

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REVIEW OF THE LECTURER.......................................................................................................................................

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EXECUTIVE SUMMARYSince its inception in 1995, Acecook Vietnam Joint Stock Company has been

developing dramatically and becomes a leading manufacturer of foodstuffs in

Vietnam. Acecook Vietnam, attained a strong position in the market while

providing instant processed products with high quality and nutritional values. The

company’s goal is to become one of the world leading manufacturers of instant

noodles and processed foodstuffs. Over 20 years of growth and development, at

present, Acecook Vietnam operates 10 factories throughout Vietnam. Products of

Acecook Vietnam are sold in over 40 countries throughout Asia, Europe, America,

Africa and Middle East such as pouch, cup, bowl and tray of instant noodles, instant

vermicelli, instant rice noodles, etc. And now the next target is South Africa, which

is one of the most sophisticated and promising emerging markets globally and is

also one of the highest ranking developing economies, surpasses countries such as

Hungary, Italy, Brazil and Thailand. The question is, how VinaAcecook can enter

South African competitive and potential market? With which product? How to

compete against existing competitors?

In the report, through statistics and information obtained from reliable

governmental organizations source and pieces of research about South African

market, we will construct the strategy for MISUP – VinaAcecook’s instant noodle

brand – to attract consumers and play a strategic role in the industry. In the first part

of the report is the overall analysis of South African external environment:

political/legal, economic, competitive, level of technology, structure of distribution,

geography and infrastructure and cultural forces, which will help realize the pros

and cons of the country’s economy and have the matching solutions. In the second

part is the analysis of the strategies chosen based on 4Ps and consumer behavior

theory with consideration about the elements of external environment, especially

the culture. This is the core part of the report, which decide the position of MISUP

and VinaAcecook in the market for long term, which also in some aspects,

determine Vietnamese image globally.

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TABLE OF CONTENTSREVIEW OF THE LECTURER................................................................................2

EXECUTIVE SUMMARY........................................................................................3

TABLE OF CONTENTS............................................................................................4

CHAPTER 1: INTRODUCTION...............................................................................5

1.1. Purpose..........................................................................................................5

1.2. Scope.............................................................................................................5

1.3. Methodology.................................................................................................5

1.4. Limitations.....................................................................................................5

CHAPTER 2: FOREIGN ENVIRONMENT ANALYSIS.........................................6

2.1. Political/Legal...............................................................................................6

2.2. Economic.......................................................................................................7

2.3. Cultural forces...............................................................................................9

2.4. Competitiveness..........................................................................................10

2.5. Level of technology.....................................................................................10

2.6. Structure of distribution...............................................................................10

2.7. Geography and infrastructure......................................................................12

CHAPTER 3: MARKETING MIX..........................................................................13

3.1. Product Strategy..........................................................................................13

3.2. Distribution..................................................................................................14

3.3. Promotion....................................................................................................15

3.4. Price.............................................................................................................17

CHAPTER 4: CONCLUSION.................................................................................18

REFERENCES.........................................................................................................19

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CHAPTER 1: INTRODUCTION1.1. Purpose

The aim of this study is to help VinaAcecook introduce the position of its

new brand “MISUP” to the South African urban instant noodles market. This

research also intends to gain MISUP a competitive position against Maggi (the most

popular instant noodle brand in South Africa) and other competitors.

1.2. ScopeThe project sought to examine the key issues associated with instant noodle

consumption in South Africa. The results loosely base on data and practice of South

African instant noodle markets and the economic potentiality of South African

market. The research will give an overview of South African external environment

together with the effects of the country’s culture. The object mostly concentrated is

the instant noodle market with overall analysis of competitors, suppliers,

distributors…included in the 4Ps strategies.

1.3. MethodologyThe South African market is investigated in three fields: marketing research,

consumer behavior and marketing mix. We base on the theories from the three

fields to facilitate the discussion of our research. Through marketing research, we

have an overall description of South African environment and identify the market

target and the market position for the product. The consumer behavior theory

analysis supports our decision in promotion campaign and in how to approach

targeted consumers. The marketing mix is the core part in our report. We have

attempted to build the strategies for MISUP under the guidance of the 4Ps and

provide our recommendations on the four aspects.

1.4. LimitationsThe foundations of our research are the theories and statistics obtained from

South African government official organizations. However, we do not have the

capability to conduct a survey to gain a thorough insight into South Africa

consumption behavior. Furthermore, the study do not focus substantially on the

influence of cultural and geographical in the strategies. And we also do not have the

accessibility to the financial capability of VinaAcecook when invest in South Africa

to adjust the 4Ps strategies for MISUP.

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CHAPTER 2: FOREIGN ENVIRONMENT ANALYSIS2.1. Political/Legal

South Africa is a constitutional democracy with a three-tier system of

government and an independent judiciary. The national, provincial and local levels

of government all have legislative and executive authority in their own spheres, and

are defined in the Constitution as "distinctive, interdependent and interrelated".

The Republic of South Africa held its first universal suffrage elections in

April 1994. The ANC is South Africa’s most supported political party, and can be

seen to be central to the maintenance of peaceful relations between the differing

racial groups (specifically between the white and black ethnicities), the

unprecedented growth of the national economy, and its many initiatives to develop

previously disadvantaged peoples and communities. ANC holds a majority of 65%

under South Africa's proportional representation system, and governs eight of the

country’s nine provinces. In December 2012, President Zuma was re-elected as the

ANC President and the presidential candidate for the 2014 election.

The leadership of the ANC was, undoubtedly, of key importance in South

Africa’s transition to the liberal, human rights orientated constitution that South

Africans enjoy today: South Africa’s constitution has been hailed as the most

progressive and liberal in the world (truly an achievement of which the nation can

be proud).

As for South Africa’s legislation, they face a few boundaries with their

mixed/ hybrid legal system. It is composed of interweaving a number of distinct

legal traditions such as: civil law of the Dutch, common law of British, and an

indigenous law system from African Natives. With these traditions having a

complex interrelationship, the procedural aspects of the legal system still

prominently prevail to be correlated with the Roman-Dutch legal system. Due to

this, their court system is organized hierarchically, and consists of Magistrates’s

Court, High Courts, a Supreme Court of Appeal, and a Constitutional Court. The

Constitutional Court has the highest authority in all matter. With a world-class and

progressive legal framework, South African legislation governing commerce, labour

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and maritime issues is particularly strong, and laws on competition policy,

copyright, patents, trademarks and disputes conform to international norms and

standards

2.2. EconomicThe economy of South Africa is the largest in Africa, it accounts for 24% of

its gross domestic product in terms of purchasing power parity, and is ranked as an

upper-middle income economy by the World Bank. South Africa is currently

included, along with China, Brazil and India, in group of nations with emerging

economies collectively known as BRICS. In addition, South Africa is the foremost

member of SADC (the Southern African Development Community), an inter-

governmental organization formed to further social co-operation and integration

amongst its 15 member states, as well as create political and security co-operation

in the southern African region.

South Africa has a comparative advantage in the production of agriculture,

mining and manufacturing products relating to these sectors. The country's

economy is diversified with key economic sectors including mining, agriculture and

fisheries, vehicle manufacturing and assembly, food processing, clothing and

textiles, telecommunication, energy, financial and business services, real estate,

tourism, transportation, and wholesale and retail trade.

South Africa’s success in reforming its economic policies is probably best

reflected by its GDP figures, which reflected of uninterrupted economic growth

between 1993 and 2007, when GDP rose by 5.1%. With South Africa’s increased

integration into the global market, there was no escaping the impact of the 2008-

2009 global economic crisis, and GDP contracted to 3.1%. While the economy

continues to grow, driven largely by domestic consumption, growth is at a slower

rate than previously forecast. It is projected to grow at 2.7% in 2013, 3.5% in 2014

and 3.8% in 2015.

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GDP (purchasing power parity) (Billion $)

Under its inflation-targeting policy, implemented by the South African

Reserve Bank (SARB), prices have been fairly steady. In January 2013, the annual

consumer inflation rate was 5.4%, dipping from December 2012's 5.7%. Stable and

low inflation protects living standards, especially of working families and low-

income households.

The overall investment environment remains encouraging. A G20 country,

South Africa is considered a low-risk investment destination for investors looking

for a foothold into Africa. As the continent’s largest African investor, South Africa

sends more than 25% of its manufactured products into the continent.

Through investment incentives and industrial financing interventions, the

government actively seeks to encourage commercial activity and attract foreign

capital. South Africa earned around 42 billion dollar in foreign direct investment in

2011, which was more than four times the amount in 2010.

Principal international trading partners of South Africa (besides other

African countries) include: China, the United States, Germany, Japan, and the

United Kingdom.

Chief exports are metals and minerals. Machinery and transportation

equipment make up more than one-third of the value of the country’s imports. Other

imports include automobiles, chemicals, manufactured goods, and petroleum.

According to official estimates, a quarter of the population is unemployed.

According to a 2013 Goldman Sachs report, that number increases to 35% when

including people who have given up looking for work. A quarter of South Africans

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live on less than US $1.25 a day. Unemployment, remains the most challenging of

South Africa’s hurdles. It is at the top of government priorities and at the heart of its

economic policies.

South Africa is ranked 35th out of 183 countries for ease of doing business

according to Doing Business 2012, a joint publication of the World Bank and the

International Finance Corporation.

2.3. Cultural forcesWith a growing population of above 51 million people and eleven official

languages, South Africa is one of the most diverse countries among the world. They

have a large mass media sector that commonly uses the English language. Many

urban areas in South Africa have a different ethnic group that reflects the whole

population. The population of South Africa includes the original black peoples and

European, Chinese, Indian and many more from rest of the world have migrated

to South Africa. 70% of the populations in South Africa are the black Africans,

whereas the white people make up 11% of the total population, Coloureds are 8%,

more than two percent are Indians, and other minorities come under less than 2% of

the population. The South African culture and etiquettes is much complicated and

not easy describe due to its diversity.

In South Africa a huge differences is seen between the rural and urban areas.

Many rural black people of South Africa are still attached and follow their old

traditions; on the other hand the urban black people are more and more influenced

by the urban environment and international and modern life style that surrounds

them.

South Africans do not believe in long relationships or creating a personal

relation in conducting a business. These people are more of a transactional nature.

In most part of South Africa, the people keep harmonious working relationships

among each other and avoid conflicts. These people often use the metaphors to

demonstrate a point. Most of the South Africans, although ethnic, prefer to meet

face-to-face above common communication means such as telephone email, letter,

etc. It is very important to develop mutual trust and understanding before any

business negotiation.

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2.4. CompetitivenessSouth Africa was ranked 52nd out of 144 countries in the World Economic

Forum's Global Competitiveness Index for 2012. It remains the highest ranked

country in sub- Saharan Africa, and claimed third place among the BRICS

countries. Thas’s because the government’ policies in manufacturing projects,

industrial innovation, finance and small business development. Also industrial

development zones have been established in close proximity to major ports and

airports, offering world-class infrastructure, dedicated customs support and reduced

taxation.

Their competition legislation follows European Union, US and Canadian

models. The law places various prohibitions on anti-competitive conduct, restrictive

practices (such as price fixing, predatory pricing and collusive tendering) and

"abuses" by "dominant" firms (firms with a market share of 35% or more).

2.5. Level of technologySouth Africa has the prospect to compete internationally, there exists an huge

potential to exploit and leverage selected technologies. South Africa is not a leader

in technologies but rather an adaptor, integrator, assembler and follower, the South

African technology sector does have various competitive advantages. These usually

comprise a well-developed telecommunications industries, established and

competitive call centers, highly regarded capabilities in software development, e-

learning and system integration. There is an intense increase of ecommerce

technologies throughout South Africa. However, the integrated implementation of

ecommerce solutions and security-enabling applications is incredibly limited.

2.6. Structure of distributionSouth Africa offers foreign suppliers a variety of methods to distribute and

sell their products, including using an agent or distributor, selling through

established wholesalers or dealers, selling directly to department stores or other

retailers, or establishing a branch or subsidiary with its own sales force.

Wholesalers: Consumer goods requiring maintenance of stocks and

industrial raw materials are often exported to South Africa through established

wholesalers.

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Retail organizations: Many exporters of consumer goods sell directly to

South African retail organizations – including consumer corporations, department

stores, chain stores, and co-operative groups of independent retailers – which

assume the functions of wholesale buying, selling and warehousing.

Consumer retail: South Africa offers the full spectrum of retail outlets:

small general dealers; specialty stores handling a single product line (such as

clothing, electronics, or furniture); exclusive boutiques; chain stores (groceries,

clothing, toiletries, household goods); department stores; cash and carry wholesale

retail outlets; and co-operative stores serving rural areas. Large-scale supermarkets,

or hypermarkets, are located in suburban shopping malls and sell large quantities of

almost all consumer goods.

About 90 percent of the consumer trade inventories of these stores are

domestically sourced.

Franchises: Franchising is well-established in South Africa, with the sector

showing strong and continued growth. Around 30% of South African franchises are

non-food systems, with an emphasis on service. Building, office and home services

sectors are dominant, with automotive, restaurant, health, education and training

franchises also available.

After-sales agents: For products of a technical nature, it maybe necessary to

appoint an official after- sales agent in South Africa. This may be a company that

does not import or market the product in question, but rather, because of its

geographical reach, technical ability and goodwill in the market, acts as the certified

service agent.

Agents & distributors: For certain products, this is the best ways to bring the

goods through every single part of the country, especially places with the lack of

national support in infrastructure. Larger companies who take on agencies often

have an office in each of the major centres, making any agency agreement easier to

control.

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2.7. Geography and infrastructureSouth Africa is a medium-sized country, with a total land area of 1 219 090

square kilometres. It is one- eighth the size of the US, about a third the size of the

European Union, twice the size of France and over three times the size of Germany.

South Africa has a long coastline that stretches more than 2,500 km and along two

oceans (the South Atlantic and the Indian).

Climate: South Africa has generally temperate climate. A subtropical

location, moderated by ocean on three sides of the country and the altitude of the

interior plateau, makes South Africa a warm and sunny country. But it's also dry,

with an average annual rainfall of about 450mm, with about 21% of the country

receiving less than 200mm a year.

Topography: The average elevation rising steadily towards the north

(towards the equator) and further inland. Due to this varied topography and oceanic

influence, a great variety of climatic zones exist.

Natural resources: South Africa is rich in a variety of minerals. In addition

to diamonds and gold, the country also contains reserves of chromium, antimony,

coal, iron ore, manganese, nickel, phosphates, tin, uranium, gem diamonds,

platinum, copper, vanadium, salt, natural gas.

The mining sector continues to form the core of the South African economy

as mining-centred holding companies invest in other economic activity. Gold

remains the most important mineral—South Africa is the world’s largest producer

—and reserves are large; however, production is slowly declining

Environmental protection is a most important part of the socio economic

development, and this is one of the most critical problem in South Africa. The

increasing population, high degree of urbanization and unreasonable rise in

energy use, has affected the sustainability of the environment. Deforestation

results in the reduction of the sink for carbon dioxide and increases soil deprivation.

Industrialization leads to water and air pollution. The water resources get polluted

due to the discharge of untreated or partially treated wastes from industry, domestic

dirt and fertilizer and pesticide run off from agricultural fields.

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CHAPTER 3: MARKETING MIX

Product MISUP, an instant noodle brand of VinaAcecook with four

flavours: Curry, Shrimp, Pork and Chicken

Product type: FMCG – Fast Moving Consumer Good

Slogan “MISUP – Taste for more”

Feature

emphasized

“Low calory and Phenomenal Taste for daily meals”

Price 1 pack - $0.99

5 packs - $4.80 or $4.85

10 packs - $9.00 or $9.25

30 packs (1 carton) - $26.00

Target customers European and American in South Africa, especially: busy

office workers, families with young children

Entry strategy Export from Vietnam to South Africa in the first 2 years.

After thorough market research and economic stability of

South African market, build factories in South African rural

areas to produce instant noodles.

Competitors Maggi, Cintan and Nano

3.1. Product StrategyFlavors and types: The biggest competitor of us in South Africa is Maggi,

which is successful by applying product line expansion strategy. Maggi has

stretched its product line by launching a series of different flavors, especially in

three flavors: chicken, beef and cheese. VinaAcecook is a late-mover in South

African instant noodles market. Therefore, the first step to compete with other

competitors is introducing 4 main flavors of instant noodles: Curry, Shrimp, Pork

and Chicken. Two types/forms of instant noodles that we will launch are traditional

forms (instant noodles with soup) and dried instant noodles (instant noodles without

soup). MISUP will be the prime product line to educate customers about

VinaAcecook. 3 months after MISUP launched, the next product lines: King Chef

and Good (bean vermicelli) will be introduced with higher price.

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Packaging and Packing: MISUP will be sold in packs. Product packing will

be divided into 4 types: single packs, 5 packs in plastic bag, 10 packs in plastic bag

and 30 packs in carton. In addition, 5 packs and 10 packs bag will be launched in

mono–flavor and multi–flavors bags. For office workers and travelers: we will

produce a foam box line but under an another brand.

3.2. DistributionSouth Africa is a large country, with nine provinces. Lacking the support of

national infrastructure, smaller agents often tend to operate provincially. Some

characteristics of informal channels in South Africa: very fragmented, unorganized;

retail formats vary widely; source from multiple suppliers, often buy from

wholesalers or local distributors; small stores with limited working capital.

Approximately 90% of South Africa's economically active population is found in

areas surrounding the cities of Johannesburg, Cape Town, Durban, Pretoria, and

Port Elizabeth, representing the country's major areas of economic activities and

consumer markets. Which requires Acecook to appoint an agent capable of

providing national coverage together with a VinaAcecook Management company in

Johannesburg to manage all the business in South Africa. Acecook will source and

sell products entirely to the agent, who stands alone as an individual enterprise,

buying inventory on his own account and then selling in onwards. Firstly, base on

some research, we have found out that this mode is particularly appropriate when

products are highly competitive and lack a large market. Secondly, the agent-based

networks are effective in targeting key vulnerable segments (children and

housewives) in South Africa. Thirdly, agents will stand alone, require little training,

and are no cost to the center.

Instant noodle is a Fast Moving Consumer Good, so the products always

have to be in sight of the consumers which require the distribution channels to be

versatile and wide. The agent will establish store-based networks in Johannesburg,

Cape Town, Port Elizabeth and Durban throughout their existing retails stores

having the advantage of a broader product mix with which to earn returns and to

enhance the company’s image more widely to South African consumers. The retail

networks include: small general dealers; specialty stores handling a single product

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line; grocery chain stores; cash and carry wholesale retail outlets; co-operative

stores serving rural area; large-scale supermarkets; hypermarkets located in

suburban shopping malls and sell large quantities of almost all consumer goods.

About 90% of the South African consumer trade instant noodles in these channels.

The distribution channel can be visualized in the

following graph:

First Distributor: Agent

Second Distributor: Wholesalers

Marketing Sites: Retailers

3.3. Promotion

The purposes of the promotion are to attract and increase market share and

communicate information about product and company (brand) to customer. At the

early stage, we will concentrate our marketing activities in Johahnnesburg only.

After MISUP has been acknowledged by many customers, we will move the

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campaign to Cape Town, Durban, Pretoria, and Port Elizabeth. Strategies used: both

Pull and Push at “Introduction” period.

Advertisement: focus on advertising in media. In the introduction stage, we

will screen the trailers of our products on the media seamlessly in the primetime, so

that customers are aware of new products as well as creating value for products. For

agents, we give them “MISUP umbrellas” to promote products together with

billboards in public places.

TV ADS: Initially VinaAcecook will focus the product to the office workers

and their children, then the entire family with vivid and colorful image, with focus

on phenomenon flavours and low in calory. The commercials will be at breakfast

and dinner time of South African families. VinaAcecook will be a sponsor for "Deal

or No Deal", a popular television show in South Africa. The activities will include

launching “FREE VinaAcecook Meals” campaign in commensuration of 20 years

of VinaAcecook in the market.

Digital Marketing: We will print MISUP advertisements in Sunday Times

and Rapport, the two most popular newspapers in South Africa. MISUP instant

noodles will also appear in some online newspaper: www.bdlive.co.za

(Johannesburg), www.citypress.co.za (Johannesburg), www.capetime.co.za (Cape

Town)…

Sales promotion : organize for customers to try the product in supermarkets

and markets,… to attract customers by suggesting the need of using noodles,

presenting a number of additional products for customers (Eg: 3 + 1, 5 + 2,...) on

every order to enhance their benefits. Besides, we will increase Commercial

discount for the sales dealers that have skyrocketed in the first stage to improve

their effectiveness and binding them to focus on our products.

Public Relations: The Acecook Club - the children under 14 will be invited

through press advertisements and giving leaflets to become a member of Acecook

club with the condition that the child sends logos cut from 5 empty Acecook

wrappers. Acecook projects it as “Acecook clubbers are fun lovers” and intends to

use it as reference group. Benefits offered to Acecook-clubbers are various games

like Freaking Math game, Flappy bird contest, Travel through South Africa game,

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Disney today comic. To obtain one gift the member has to send 5 wrappers as

purchase proof. Some special privileges will be given to regular members time to

time like, discount tickets of Appu Ghar. Organized Acecook school quizzes and

sketching.

3.4. PriceInstant noodle is a product which has high price-elasticity of demand and

South Africa is a big potential market with a world-class and progressive legal

framework. We select the following pricing methods to avoid the dumping, make

products entry market easily and rapidly expand the market.

Penetration Strategy: We use this valuation method to penetrate the market

as this is the first time VinaAcecook introduce instant noodles in South Africa –

The price will be low. After MISUP has gained a position in South African market,

we will introduce new product lines: King Chef (with two flavours: Seafood and

Kimchi) and Bean Vermicelli “Good” with higher price.

Quotation (In United States Dollar) – for final users

(Base on http://southafricanfood.ie/store/category/28/404/Maggi/ )

Items Competitors’ price

(Maggi)

VinaAcecook Price

1 pack 1.00 0.99

5 packs in plastic bag

(mono-flavor)

4.85 4.80 (5 + 1)

5 packs in plastic bag

(multi-flavor)

- 4.85 (5 + 1)

10 packs in plastic bag 9.50 9.00 (10 + 2)

10 packs in plastic bag

(multi-flavor)

- 9.25 (10 + 2)

30 packs in carton 27.00 26.00 (30 + 5)

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CHAPTER 4: CONCLUSION

Through the investigation and research to gain an insight into South African

instant noodle market, we decided that this is a very potential and promising place

for investors to put their footholds into. Firstly, South African economy is

exploding and they are at the moment the best economy in South Africa. The people

are getting more prosperous and have the intention of spending more money to

improve life quality. Secondly, South African government is reforming its

economic policies, the infrastructure and the legal system to attract more

investments to the country. This explains why in the coming years, the flow of

investment will land in South Africa. At the moment, gaining a position in their

market will be a smart move since the competition will get tougher day by day. We

consider it is a very strategic decision of VinaAcecook’s attack in South African

instant noodle market. Last but not least, we have to take VinaAcecoook’

experience and sophistication in the instant noodle industry. The company has

products sold in more than 40 countries across Europe, America, Australia and

Asia. It’s their strength to have understanding about how to succeed in foreign

markets, then expertise the knowledge through adapting the flavors and methods.

VinaAcecook’ high-quality products, excellence and expertise will be the basis for

their success in South African market.

Through thorough investigation, we have figure out the best entry strategy

for VinaAcecook. In the early stage, MISUP will be exported from Vietnam to

South Africa due to the close geographic distance and low production cost of

Vietnam. Products then will be sold to the agents by VinaAcecook Management

company. The product price in South Africa will be determined by VinaAcecook

with sales policy. After 1 year, we intend to build factories in the rural areas of

Johannesburg and Cape Town so that product costs will get lower and more product

lines will be introduced. From South Africa, VinaAcecook can expand their market

to Kenya, Botswana, Angola, DR Congo, Nigeria… This entry strategy will help

VinaAcecook reduce the risks, obtain understanding about the market, lower the

costs and gain a competitive position against competitors.

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REFERENCES

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http://www.southafrica.info/about/geography/geography.htm#.U2pTAPl_t_p

2. Government Communication and Information System Republic of South

Africa, 2012, South Africa Yearbook

3. SouthAfrica.info reporter, 2012, Distribution and sales in South Africa,

http://www.southafrica.info/business/trade/import/import-

distribution.htm#.U2pS-vl_t_p

4. SAinfo reporter, 2013, South Africa: economy overview,

http://www.southafrica.info/business/economy/econoverview.htm#.U2pV__l_t

_p

5. Wikipedia, 2014, Culture of South Africa,

http://en.wikipedia.org/wiki/Culture_of_South_Africa

6. South Africa politics, 2013, http://www.sapolitics.co.za/