Marketing Plan _Pham Thi Thu Hien_12491334

Passiona – the coffee

product for own women Marketing Plan

Student Name: PHAM THI THU HIEN Student ID: 12491334 Lecturer Name: Mr. JULIAN CHEONG 6/6/2010

Passiona – the coffee product for own women

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CONTENTS

Executive Summary ............................................................................3

Environmental Scanning ....................................................................4

Market summary ............................................................................................................ 4

Product Innovation ........................................................................................................ 5

Profile of Target customers ............................................................................................ 5

SWOT Analysis ............................................................................................................... 6

Competitor Analysis ....................................................................................................... 6

Statement of current Marketing Challenges .................................................................. 7

Marketing and Financial Objectives ...................................................7

Marketing Recommendations ............................................................8

Positioning strategy........................................................................................................ 8

The marketing mix ......................................................................................................... 8

Market implementation ................................................................... 10

Budget .............................................................................................. 14

Evaluation & Control ........................................................................ 14


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I. Executive Summary

Passiona is known as the first coffee product for own women in the instant coffee market in Vietnam.

Before 2010, this product was known as a coffee product with naturally-low caffeine but not successful

in attracting consumers. It has just been re-launched since 01/2010 with a new image in the package

and new ingredients that are good for women’s health and beauty. However, this product is meeting a

challenge in increase consumer understanding about its benefits for women and rising sales. Therefore,

in order to enhance the awareness of consumers about the product as well as increasing the market

share, this marketing plan proposes some recommendations for the marketing mix related to its

suggested positioning strategy.

This product is still in the introduction stage; therefore, promotion activities will be focused. Many

researchers and reports illustrate that a woman’s average coffee consumption can help her to reduce

risks of cancers, diseases, diabetes. Coffee has also been shown to improve endurance performance in

long-duration physical activities. Base on that, within 1 year (from 01/08/2010 to 31/7/2011), the

information about the product and its advantages will be provided in advertising channels with more

details and clearer together with the confirmation of proffessors. The slogan “live well and work well”

will be used. Furthermore, the key of this marketing plan is creating an emotion relationship with

women. Sharing ideas and experience in work and life on social networks or in given seminars, free soft-

skill courses and sponsoring events honor women’s role and their beauty are highly recommended.

Budget requirement for this plan is around 340,000 USD for 12 months. With the new pricing, sales,

promotions and emotional branding strategies, I believe that Passiona can embark as one of the top five

favorite dinks of Vietnamese women.


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II. Environmental Scanning

Market summary

The coffee market in Vietnam is now divided into two clear areas: roasted and ground coffee,

and instant coffee. While ground coffee has lost its prestige in export because of additives that

are not good for health and are unsuitable to foreign customers’ taste, instant coffee has gained

a foothold in local and foreign markets. Instant coffee is divided into two groups: pure instant

coffee (accounting for 14%) and 3-in-one instant coffee (86%). The instant coffee market is a

potential market having a rapid growth due to the demand of less time-consuming products in

the developing economy like Vietnam.

In this market, there are more than ten companies. The leader in the market is Vinacafe

followed by Nestcafe and G7 coffee of Trung Nguyen Corporation.

Source: http://vietnamnet.vn

Trung Nguyen Corporation (established in 1996) occupies the third biggest market share (10%).

This is a domestic company with over 1,000 coffee shops nation-wide and in foreign countries

including the US, China, Singapore and Japan. Many Vietnamese people are familiar with Trung

Nguyen coffee brand with a diversity of coffee products “inspire creativity”, especially G7

Gourmet Instant Coffee which becomes famous not only in domestic market but also in some

foreign countries. The total revenue of Trung Nguyen in 2007 was $5 million USD and kept

increasing.

Vinacafe45%

Nestle30%

Trung Nguyen10%

Others15%

Instant coffee market shares in Vietnam


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In January 2010, Trung Nguyen introduced a new Passiona, the first coffee product in Vietnam

with a new design and new features especially focusing on female consumers based on the old

coffee product named Passiona having low – caffeine inside.

Old Passiona New Passiona

Product Innovation

a. The Chari (Excelsa) bean, a rarely-grown coffee containing about 35% of the normal caffeine is

the key component.

b. New ingredients are compounded: Collagen, sugar for diet people, vitamin PP and some

ingredients having origin from Asian traditional medical plants, which are good for women’s

health and beauty.

c. The new proposed image of this product is designed:

- White background with the picture of a cup of coffee and a portrait of a pretty women

- Specific information provided clearly in the text on the surface of the package

Profile of Target customers

- Gender: Female

- Age: 22-40

- Occupation: Working at office

- Income: $300-450/month

- Lifestyle: active, independently.

- Characteristics: well-informed, willing to learn, care about health and beauty.

- Buying situation: buying coffee for refreshing before working and using in meeting with friends


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STRENGTHS:

- The first coffee product for own women in Vietnam.

-The first coffee product contains some ingredients good for women's health.

- Strong cooperate image of Trung Nguyen's product brand - a good smell and a typical flavor, especially, with G7 instant coffee "inspire creativity".

- The manufactory is located in the country capital of coffee.

- A wide distribution through G7mart - mini-supermarket of own Trung Nguyen, 600 retail stores as well as 1,000 franchises.

WEAKNESSES

- Market share of Trung Nguyen still is small.

- Passiona is not well-known

- The flavor of coffee with low-cafeine is ligher to coffee addicts than general coffee product.

- The seller staff is not trained well.

OPPOTURNITIES

- Morden lifestyle expanding requires products less time-consuming. => instant coffee market keep widening.

- The trend of women joining in workforce is increasing

- Most of current coffee products containing a certain quantity of caffeine serve coffee general addicts. However, women consumers specially worry about coffee’s effects on their health and body because of the quantity of caffeine

THREATS

- Many women are afraid of having acne caused by using coffee.

- Strong competitors who have experience and strong finance in retaliatory competitive strategies may introduce other drinks for women.

- Price increase for associated raw ingredients such as sugar, milk.etc.

SWOT Analysis

Competitor Analysis

• Industry rivalry is high. Two big direct competitors of Trung Nguyen are Vinacafe and Nestcafe

(accounting for 75% the coffee segment). The instant coffee market players have developed

quite specific value offerings based on the additional ingredients or style of coffee preparation.

Especially, Nestcafe is one brand of Nestle – a multinational company which has a big budget

and deep experience in marketing and selling softdrinks and beverage in global. If Nestcafe also

intend to launch a new kind of coffee for own women, Trung Nguyen will meet a big pressure

in competition.


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• The threat of substitutes is high in Vietnamese market given by the propensity of Vietnamese

women to prefer tea, fruit juices, soya bean, milk.etc. with typical flavors, provision of Vitamins

and cheaper price.

• The bargaining power of consumers is high given that instant coffee is readily available through

various distribution channels and both private individual consumers and large wholesale buyers

(E.g Food & Beverage Outlets) have a very wide range of brands to choose from and will make

comparisons.

• The threat of new entrants is high given that in the past few years, many domestic players have

entered into the instant coffee market. Affordable pricing and localised products were identified

by one industry report (Euromonitor 2008) as key drivers for the increased prominence of the

domestic coffee brands.

• As the coffee bean commodity market is an mature open market, the bargaining power of

suppliers is low.

Statement of current Marketing Challenges

The current marketing strategy of Trung Nguyen still has not increased the demand in

coffee for own women - Passiona because many Vietnamese women are afraid of having

acne caused by using coffee and they use other drinks such as tea or Red - Bull instead of coffee

to help them refresh before working. It still has not come into the mind of Vietnamese

women consumers about its beauty benefits to women “who want to live fully with passion

and success in life”. Therefore, this new product still is not a favorite drink of women in

Vietnam and the revenue from its sales is not as high as expected.

III. Marketing and Financial Objectives

1) Raise awareness of customers and coffee female consumers to 80% of asked people about

coffee’s positive effects, especially, Passiona’s effects on women’s health and beauty by the end

of the year (2010).

2) Grow the customer database by 5% with new customers matching the existing long-term

customer profile by the middle of the next year (2011).


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3) This product still in introductory stage of the product life cylcle. During this stage we expect to

have slow sales growth and low profits but are optimistic for the growth stage to increase both.

Therefore, the marketing objective in revenue is achiveving the sales target just occupies 10% of

total revenue of Trung Nguyen Corp after 1 year.

IV. Marketing Recommendations

1) Positioning strategy

Marc Gobé (2001, p.48) illustrates that women base most of their decisionmakaing on emotion

as opposed to rational elements. They want to know what the product will do for them,

personally. This view also is supported by Bridget Brennan (2009, p. 82) that what inside

women’s minds are “what a product does for me is what the most interesting”. Therefore, the

positioning strategy should be used focuses on the first high quality coffee products good not

only for women’s work in morden life but also for their health as well as beauty – one of

important things to them when they use it adequately and regularly. Emotional branding

program should be enhanced.

2) The marketing mix

2.1. Product: - Putting new ingredients creats advantages for Passiona in providing a drink for

the health and beauty for women. However, the product package should give more detail

information about its positive effects because women read igrededients and details much more

closely than men to make sure there are no harmful elements (Lisa H.Guss, 1999).

2.2. Price: It is a daily drink; therefore it needs an acceptable price. The price should be

increased to reflect Passiona’s higher range and its value gives to women but should not higher

its substitutes’ price. Moreover, in order to attract women to buy, the price also will not be 10%

higher than other current coffee product in market.

2.3. Promotion:

Advertising: We need more advertising during introduction and growth stage of Passiona:

- Because the target market of Passiona is female officers, its advertising also should relate to

their daily activities and their lifestyle. The imagition of a active and beautiful women in the

office in the morning and chatting with friends with the attitude “live well and work well”

should be used in the advertisements.


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- Beside female magazines and TV advertising, the internet is highly recommended for

Passiona advertising and put more articles about positive effects of coffees with

confirmations of proffessors. The reason is while a large number of women do go online for

entertainment and pleaseure, women are increasingly dependent of the internet to save

time (Scott M.Roy, 2000), especially, female officers whose computers obviously are their

close friends in work. Moreover, morden young women use the webs that has surpassed

newspaper, television, radio as a source of buying information (Marc Gobé, 2001).

- Entertainmenting and pleasurable webs, social networks also should be enhanced to use to

put advertisements because they are favorite websites of women (Marc Gobé, 2001).

Sales promotion: Trail samples should issue with G7 coffee in retail stores in order to introduce

its flavor with current coffee consumers because many Vietnamese women has preferred G7

due to its flavors before. Furthermore, by giving free samples in female beauty magazine and let

women try it directly; Passiona can reach more potential consumers.

PR and Sponsorship: Marc Gobé (2001, p.48) pointed out that as consumers, women want to be

respected and dialogue, not just a transaction. Moreover, Martha Barletta (2003, p.77-79) also

illustrates that one of what women take pride in is “recognization” and one of what women

cherish is warm, close relationships. Therefore, some following kinds of PR and sponsorship are

suggested:

- Passiona should sponsor events honor women’s role and their beauty in modern society

occurring in the annual special day.

- The relationship with women can be enhanced when the image of Passiona always goes

with conferences or seminars about good methods for women’s health and beauty as well

as free courses about soft skills for works and communication. Thereby can attract more

young women who are ambitious to succeed in their life as well as their career. In these

events, Passiona will also be given as a free drink for participators.

- We will use TV programme as well as articles specializing in providing information related to

consumers’ health to emphesize and broaden recognizations about good effects of coffee,

together with its healthy usage intructions.

2.4. Placement: In Vietnamese culture, people, especially modern women would like to choose

coffee shops to meet friends at weekend and in free time. Therefore, Passiona will be sold in


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coffee shops besides tranditional distribution channels that office women prefer such as

supermarkets or retail stores.

Besides Ho Chi Minh city and Hanoi capital are focal currently, other large cities will also be

served because the women demand of coffee drinks there is not low.

2.5. People: The seller staff needs to be constantly apprised on the product knowledge.

Additonally, the staff will be trained to feedback on women consumer behavior to the

management as pointed out by Johnston (1995, p.53) in providing determinants in achieving

service quality. Serveing women respectively and friendly is the most important thing in training.

Especially, these staff will be trained for special events related to PR strategy as well as

introducing Passiona to potential consumers.

V. Market implementation (Assumed that will start at 1st August,2010 and end at

31st July, 2011)

Stage Relaunch (3-6 months) Growth (3-6 months later)

Product • Emphasize the quality aspects and the innovation in product development

• Maintain the quality

More size of the package

Price • Price skimming - Premium pricing that will set it apart from other economy pack brands but not 10% higher than other current coffee product in market.

• Price skimming with potential for discounts related to purchase of main Trung Nguyen’s products – G7

Price discount thanks to large quantity

Promotion • Free samples and taste test in supermarkets and in front of office buildings.

• Advertising on TV, magazines, online news, bus stations with slogan “live well and work well”

• Publish the confirmation and intruction of professors about using coffee as well as its positive effect on TV, beauty and family’s magazines, websites.

• Leverage on the online community presence • Arrange special events such as conferences

or seminars about good methods for women’s health and beauty with invitation public media once/2weeks.

• Free courses about soft skills for women’s works and communication once/2 weeks.

• Sponsor for events for the Vietnamese

• Consistency in messages and monitoring impact on retail stores and coffee shops. • Increase advertising to build brand

preferences • Sponsor drinks for Beauty

competitions 2011 in September. • Free samples as gifts for female

officers in the international women day, 3rd March.

• Free samples given with female magazines.

• Cups and spoons with special design will be given with each 3 packages of Passiona sold.


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women’s day, 20th October

Place/Channel • Retails stores, supermarkets • Other channels should match the "on the move" elements: coffee shops.

• Selective and intensive distribution - Offer at "premium" supermarkets as well as coffee shops. • Other large cities are focused

Focus KPI-s • Product Awareness • Positive Consumer Online Feedback

• Sales Growth

Product: The confirmation of professors as well as healthy usage instructions will be put on the

package. After 6 months, the package will be in 2 sizes: the first one contains 30 coffee sticks

(current package), the second one contains 15 sticks in order to match more consumers’ budget.

Price: The average price/package (30 sticks) of other instant coffee products in Vietnam market

is 30,000 VND. Therefore, the current price of Passiona (32,000VND) is acceptable. However,

most prices end with a nine to make shoppers feel that they are getting a bargain (Bernice

Kanner, 2004). Therefore, the price of one Passiona’s canister should end with 9 number such as

31,999 VND instead of the current price 32,000 VND. The new size of the package (15 sticks) will

be 16,999 VND.

After 6 months, the price will be reduced by 10% as buying 2 packages or 1 package of Passiona

with 1 package of G7.

Promotion: Advertising is only effective when promotions also are taking place (Julian C. &

Roddy M, 2002). Therefore, all promotion activities as well as advertising will occur at the same

time during 1 year. In particular, for first 6 months:

Task Description Person Responsible

Place/Channels Period

a)

Meet with Department Directors to promote plan, including budget implications for departments following trial.

Marketing Manager

Head office June, July 2010

b)

Free samples and taste test supermarkets and in front of office buildings

Sale group leaders

Ho Chi Minh city and Hanoi Capital

Supermarkets Every weekends of August, 2010

6 biggest buildings

Every Monday and Thursday of August, 2010


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Other large cities: Hue, DaNang, Hai Phong, Can Tho

1 biggest supermarket and 1 office buildings

September, October

d)

Advertising on TV, magazines, websites

Advertising group leaders

- TV channels: VTV3, VTV1 - Magazine: “Đẹp” (the beauty),

“Thế Giới Phụ Nữ” (the women world) . “Hạnh Phúc Gia Đình” (Hapiness and Family),”Sức khỏe” (The Health)

- Websites: ngoisao.net , vnexpress.net, vietnamnet.vn

- TV advertising: 8p.m on Friday, Saturday, Sunday, every week

- Magazines and websites: 6 months

e) Publish the confirmation and intruction of professors about using coffee as well as its positive effect on TV, beauty and family’s magazines, online news.

PR group leaders

Special TV program about women’s health and beauty

TV program at weekends in August, September, October.

Special sections for health and beauty in above female magazines and websites

2 articles/month

August, September, October, November

g) Arrange conferences or seminars about good methods for women’s health and beauty with invitation public media once/2weeks.

PR group leaders

Conference center , Youth and Women Union center in Hanoi and Ho Chi Minh City

Saturday, Week 1 and 3 of September, October.

h) Free courses about soft skills for women’s works and communication once/2 weeks

PR group leaders

Youth and Women Union centers in Hanoi and Ho Chi Minh City

Saturday, Week 2 and 4 of September, October, November.

i) Special event for the Vietnamese women’s day (20th October): honor women who are famous due to their successes in different fields

PR group leaders

Hanoi or Ho Chi Minh City (This Event will be showed on VTV 3)

20th October

j) Share experience and emotion about life and works.

PR group leaders

Social networks: Facebook, Yahoo 360plus, Multiply.com

August,2010 to July 2011.

Note: Most of the time of promotion activities occurs at weekends that are free time for

women to take part in. TV channels and magazines, websites are selected due to their level of


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being famous to women in Vietnam. All advertisements will keep broadcasting within 12 months

(in which, the actresses and their images will be changed once/6months). Specific promotion

plan about the place and period for other activities for the next 6 months will base on marketing

research about women consumer reaction to these promotion activities in the first 6 months as

well as the particular information from organizations of beauty competitions.

Place: Coffee shops are selected that are nearby business departments or office buildings in

order to make it easy and convenient for women officers to buy and enjoy. The incentives to

sellers in these coffee shops are the discount 20% on payment as the quantity sold is 10% higher

than the quantity given; and free provision of one or two new magazines’ paper that have

articles about possive effects of coffee on womens’ health and beauty will be given for their

customers reading in these shops.

Other large cities: Hue, DaNang, Hai Phong, Can Tho will be the next focal places to increase

distribution from the fourth month of this plan. Famous coffee shops as well as retail stores in

the centers of these cities will be covered within 3 months, from November,2010 to

January,2011 .

People: Employees are trained to connect with customers, focus on “customer intimacy”: greet

customers with a smile, enthusiastically welcome customers, and establish eye contact.etc.

It is recommended that we roster our 100 frontline staff in introducing Passiona to complete the

phase-approach training to understand women consumer behavior and strengthen

communication skills with women, boost product enthusiasm and increase customers

confidence in Passiona. These staff will serve in recommended events, conferences, seminars,

courses as well as communication with women in social networks.

Training focus Trainer Month Week Slots Remarks

Product knowledge and positive effects’ coffee on women’s health

Product manufacturer June, 2010

1 50 - Group leaders given priority.

- One time course held weekly in mornings over a 2-hourly sesion

2 50

Quality customer service Marketing Manager July 1 100 One time course held over 1 day.

Women customer Professors in psychology as June, 1 25


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behavior and communication skills with women

well as lecturers in communication skill classes of the soft-skill center.

July 2 25

3 25

4 25

VI. Budget

Description Proposed budget

(USD)

Budget requested in

2010

Remarks

Advertising $100,000 $50,000 The costs for advertisements

on TV, magazines and websites

based on their fee lists.

Sponsorship $60,000 $40,000 The sponsorship and PR events

will occur in 2010 more than in

2011.

PR events 100,000 $60,000

Training $30,000 $30,000 The cost for training based on

the tutor fee in the soft-skill

center.

Costs of free samples and

gifts

$50,000 $30,000

Total $ 340,000 $210,000

VII. Evaluation & Control

Hiebing (1997, p.110) stated that weaknesses can appear to be opportunities and we will

address these via quantitative and qualitative methods to moderate our next marketing plan. As

follows:

Sales Research: The sales target is to occupy 10% of total revenue of Trung Nguyen Corp Sales.

The expenses for promotion and advertising in this period are also high in this period. Therefore,

the actual revenue and expense will be considered and monitored monthly and quarterly.

Product Research: To increase satisfaction of target customers, we need to put new ingredients

good for women’s health and beauty in Passiona. We will get feedback from professors in The

National Institute of Nutrition to adjust our product variability if necessary.


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Market research: To know Customer Satisfaction level of Passiona, we will use feedback

channels such as surveys on websites that have a plenty of users: ngoisao.net, vietnamnet.vn,

vnexpress.net etc. Furthermore, in order to get opinion of focus group-women consumers, the

staff will get feedback directly from women customers who take part in taste tests in

supermarkets and in front office building as well as the events, seminars, soft skill courses that

Trung Nguyen Corp. sponsors and arranges.

Moreover, we also need solicit feedback from the coffee shop owners about the number of

their customers drinking Passiona as well as their attitudes about the product. Response from

Staff also will be considered.

We will compare all the feedbacks with the sales of Passiona. Essentially, we want to

achieve at least 70% of participates in surveys satisfy with Passiona’s taste and quality.

Promotional Research: We want to ensure that 80% of asked people, especially, coffee female

consumers knowing about coffee’s positive effects and Passiona’s effects on women’s health by

the end of 2010. Thus, the number of viewers of TV programs, magazines’ papers issued and the

websites that have Passiona’s advertisements and information about coffee’s positive effects on

women’s health and beauty; as well as the number of participators in promotional events will

be considered and compared to the amount of sales monthly. Thereby we know which channels

need to be changed and used to raise awareness of target consumers about the product.

We can also look at competitor activities and the trend of their sales in order to modify our

activities from open sources such as online news on websites.


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REFERENCES

1) Bernice Kanner, 2004. Pocketbook Power: How to Reach the Hearts and Minds of Today’s Most

Coveted Consumers-Women. USA: McGraw-Hill.

2) Bridget Brennan, 2009. Why she buys: the new strategy for reaching the world’s most powerful

consumers. In U.S.A: Crown Business.

3) Julian C. & Robby M., 2002. Sales Promotion: How to create implement and integrate campaigns

that really work, 3rd ed. London: Kogan Page Limited.

4) Marc Gobé, 2001. Emotional Branding: the new paradigm for connecting brands to people. New

York: Allworth Press.

5) Martha Barletta, 2003. Marketing to women. In U.S.A: Dearborn Trade Publishing.

6) Ros Jay, 2003. Marketing Plans in a week. London: Chartered Management Institute.

7) Kotler & Keller, 2009. Marketing Management, 13th ed. In New Jersey: Pearson Prentice Hall.

Websites:

http://blog.junta42.com/content_marketing_blog/2010/03/a-marketers-guide-to-social-media-

8-keys-to-success.html

http://www.netmba.com/marketing/pricing/

http://www.health.harvard.edu/press_releases/coffee_health_risk

http://ezinearticles.com/?Surprising-Coffee-Health-Benefits-For-Women&id=2453482

http://blog.junta42.com/content_marketing_blog/2010/03/a-marketers-guide-to-social-media-8-keys-to-success.html

http://blog.junta42.com/content_marketing_blog/2010/03/a-marketers-guide-to-social-media-8-keys-to-success.html

http://www.netmba.com/marketing/pricing/

http://www.health.harvard.edu/press_releases/coffee_health_risk

http://ezinearticles.com/?Surprising-Coffee-Health-Benefits-For-Women&id=2453482

Marketing Plan _Pham Thi Thu Hien_12491334

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