SINGAPORE POLYTECHNIC SP BUSINESS SCHOOL

GLOBAL MARKETING STRATEGYBA 5121

A GLOBAL MARKETING PLANFOR

DELICIOUS Beef Bolognaise PastaManufacturer: Délifrance Singapore Pte Ltd

by:CATHERINE ANN PAN | P7183948

Company Background

Délifrance Singapore Pte Ltd

• a manufacturer and trading company of bakery products for wholesale customers.

• specializes in artisan breads, French pastries, desserts and ready-to-eat meals using the sous vide cooking process on a commercial scale.

• main products are cakes and business range includes noodles and pasta.• began its operations in Singapore in 1983 and had opened their first

Délifrance Café at Clifford Centre in 1985• have more than 140 outlets spanning Singapore (40 branches), Hong

Kong, Malaysia and Brunei; been in partnership with other convenient stores like Cheers to sell their line of “Delicious” ready-to-eat meals.

Vietnam as target country for export

General Information

Official Name: The Socialist Republic of VietnamCapital name: HanoiMajor cities: Hanoi, Ho Chi Minh City (Saigon), Haiphong, Da

Nang Time zone: UTC + 7 hoursArea: 331,210 sq. KmPrincipal industries: Food processing, garments, shoes,

machine-building; mining, coal, steel; cement, chemical fertilizer, glass, tires, oil, mobile phones

Vietnam Demographics

• fast-growing market with population of about 90 million, 60% of which comprises the younger population where 42% are below 25 years of age and is expected to reach 100 million by 2020.

• rapid rise of the middle class, urbanization and rising income

• large female working population (49%), making the female consumer ever more important.

Political Environment

S - Foreign investors are coming back and have regained confidence to the country’s political stability.

W - Lack of transparency, uniformity and consistency in government trade policies

O - further reduce tariff in importing processed foods in line with accession to WTO

T - Strict regulations on food imports especially involving meat and processed foods.

Economical EnvironmentS – Higher than 5% GDP growth and lower inflation rate.

W – lack of financial transparency and poor corporate disclosure standards of private firms

O – Increasing spends on ready meals in convenient stores

T - Retail food market is still largely dominated by traditional wet markets Business customs prolonging business deals includes long re-negotiations, consensus building and the zero-sum game assumption.

Social Environment

S - general hierarchy of perceived quality on food based on country of origin

W - Consumers are highly price sensitive in buying decisions.

O - Consumers have little brand loyalty and are more open to trying out new products. Growing number of tourists visiting the country contributes as market for foreign processed foods.

T - heightened consumer awareness due to outbreak of food related diseases

Technological

S - modern food processing and preserving sector constitutes a market with great potential for foreign companies.

W - IPR climate is unstable

O - increasing potential of internet retailing Vietnam and probably bypassing other distribution channels for more revenues.

T - Each time, authorities responsible in food safety of import products conduct research if there are any lapses from approved food guidelines. This can be a threat if the current innovation of the product will not meet the standard requirement should there be any changes.

Product

Features:• Halal Certified

• High Pressure Processing (HPP) food for longer shelter life

Benefit:•High class food in affordable price

•Easy to cook restaurant-like meal

Current package labeling• Product brand / logo• Product name• Reference picture• Brief cooking instructions• Weight

• Instructions in English, Chinese and Malay

• Expiry Date• Nutrition Information• Certifications• Manufacturer details

Required package labeling

• Existing labeling from the current packaging but in Vietnamese either in the labels or in the documents attached to each product unit except for contents that are presented in their Latin origin such as the brand and dish name, and other basic particulars such as manufacturer/distributor information.

• Dish is considered as irradiated food and must be labeled "food preserved by irradiation methods" in the Vietnamese language or be labeled with an international symbol.

• Requires using expiry date of food to be represented on the labels, depending on category of products in this case, "thực phẩm đã qua chiếu xạ" [irradiated food], phrase "hạn sử dụng" [use expiry date], "sử dụng đến ngày" [using until date] or "sử dụng tốt nhất trước ngày" [best used before date].

• Ingredients must be listed in descending order of volume or content (volume percentage), and must include their international code (if any).

Legal Requirements

1. Get Certificate of Standards of Goods issued by the MOH;

2. Certificate of Satisfaction of Food Hygiene and Safety Requirements by MOH; As of the date that food materials and food additives are imported, the expiration date must be over two-thirds of the total useful life as inscribed on the label;

3. Unprocessed food that has any animal or plant origin must receive phyto-sanitary certificates granted by competent Vietnamese state agencies.

Pricing

Target starting RSP: 80,000VND – 95,000VND

The cost of goods in Singapore will only make our products cost higher than our expected target RSP should we choose to export to Vietnam, considering that the import duty is 35% while the sales tax is 10%. For that, we suggest that we cut resources be it the raw materials or operations so as to meet the pricing which can result to our target RSP.

Pricing – Current VS Proposed COG

Pricing

We will use variable cost-plus pricing where we will establish the selling price by adding a markup to total variable costs with expectations that the markup can meet all or part of fixed costs and to generate some level of profit. This is applicable to the “buy and sell” arrangement we’re planning towards our chose export management company to handle and distribute our product to Vietnam.

Entry Mode

Entry Mode / Distribution Channels

Export Management Company (EMC)• Acts as distributor to foreign market• “buy and sell” arrangement• who can meet the company’s needs and maintain

communication to avoid risks of losing control over foreign sales

Foreign Distributors / Wholesalers• EMC’s network supplying target end retail channelConvenience Stores• Target end-retail channel to reach target consumers

Promotion• TV advertisements• Print Media (newspapers, magazines, flyers)• In-store posters (combo meals, contests)• Marketing activities during festivals• Numerous trade fairs mostly sponsored by government• Generate demand for the product through campaign software

or social media.Considerations:• Promote safe and toxin free foods• Establish product as trusted brand• Strong imagery of success and achievement

*****capture the trend in planning promotions and build this proposition into the product.

Promotion ideas

Promotion ideas