Marketing Principle

Marketing PlanVissan Canned Food ProductLecture: Dennis Tan. Name: Tran Thi Linh Chi S3359009Dao Thi Lan Anh S3357844Hoang Thi Bich Ngoc S3312368Ngo Thi Thu Hien S3373510Nguyen Thu Thuy S3344052

Table of Content

Executive Summary4I.Introduction5II.Situation Analysis52.1.Company description52.1.2.Product description5III.Marketing Environment63.1.Micro environment63.1.1.Marketing intermediaries (Resellers)63.1.2.Customers63.1.3.Competitors73.2.Macro environment83.2.1.Demographic83.2.2.Economic83.2.3.Political93.2.4.Cultural9IV.SWOT analysis9V.Product Life Cycle10VI.Setting Objectives116.1. Corporate objectives116.2. Financial objectives116.3. Marketing objectives11VII.Segmentation, Targeting and Positioning127.1.Segmentation127.2.Targeting137.2.1.Evaluating Market Segments:137.2.2.Selecting Market Target Segments:147.3.Differentiation147.3.1.Possible Competitive Advantages147.4.Positioning157.4.1.Positioning map157.4.2.Value Proposition167.4.3.Positioning statement17VIII.Marketing Mix Strategies188.1.Product188.1.1.Product Classification188.1.2.Three levels of product188.1.3.Brand Development Strategies208.2.Price208.2.1.Companys Pricing Strategies208.2.1.1.Current Price208.2.1.2.Product Mix Pricing Strategies208.2.1.3.Price-Adjustment Strategies218.3.Place228.3.1.Customers need228.3.2.Distribution strategy228.3.3.Vertical marketing systems (VMS)228.4.Promotion238.4.1.Advertising Objective238.4.2.Advertising Budget238.4.3.Advertising Media238.4.4.Public Relation248.4.5.Sale Promotion258.4.6.Direct Marketing26IX.Action Plan27X.Control29XI.References30XII.Appendixes32

Executive SummaryVissan canned/preserved food has presented its objectives and goals for the period from May 2013 to April 2014. For financial objective, it is to increase profit through sale to both wholesalers and retailers as well as online sale. On the other side, marketing objective is trying to expand the market share in Vietnam. In order to achieve those goals, Vissan is going to apply various strategies which will strengthen its 4P marketing strategies and ensure the success of the plan. For P1 product, Vissan canned/preserved food will improve its 3 levels of product which are core benefit, actual product and augmented product. Vissan can make innovation so that it can bring them to the new level as well as adding a logo on the lid of the can to make it stand out, also Vissan will need to add more services to its product such as hot line and online ordering. Also to increase profit and market share, Vissan need to apply line extension strategy which is having new flavours and new ingredients coming out so that it can attract new customers and keep the old ones interested. For P2 price, together with line extension, there must be product line pricing which different price for different product with different cost. Another pricing strategy is product bundle pricing which is giving customers discount when they buy in bulk. Promotion pricing and cash discount is used on retailing and wholesaling as it give customers a better price when ordering online and for wholesalers is cash back on early payment. Due to the characteristic of Vissan canned/preserved food is convenience product, it need to use intensive distribution for P3 place in order to gain market share. Vissan will expand its distributors to supermarkets and local convenience shops as well as online shopping. Vissan also apply administered vertical marketing system to serve their customers better. At last, for P4 promotion, in advertising, Vissan will have online ads on Zing, VnExpress and Tiep Thi va Gia Dinh magazine and to for better impact, ads will be also on television. Other tools to increase sales will be coupon and sweepstakes operate throughout the period. For public relation, Vissan will sponsor for charity events such as events of Operation Smiles as well as doing direct charity trip. Moreover, Vissan use public service activity and written material to raise customers awareness. Another strategy will be using Internet to gain awareness of the brand by online marketing.

I. IntroductionVietnam is a developing country and the bustle of Vietnamese market attracts a lot of domestic and foreign investors. Moreover, living standard of Vietnamese is improved so the demand of preserved food in a busy life is increase. Canned/ preserved food is not a new product category in Vietnam and there a lot of companies invest in to this market. However, there is only one leader in canned/preserved food which is Vissan which occupies 29.62% market share (Euromonitor International, 2013). On the other hand, the market share of Vissans canned/preserved food just increased slightly and slower than two previous years (Euromonitor International, 2013). Therefore, this marketing plan will help Vissans canned/preserved food increase profit and market share by exploiting all strengthen aspects of product and opportunities from market and minimize its threaten and weaknesses.II. Situation Analysis2.1. Company descriptionAccording to Vissan Limited Company (2009), Vissan which belongs to Saigon Trading Group, was established in 1970 but it officially launched to the market in 1974. From 2006, the name of corporation changed into Vissan Limited Company (Vissan Co Ldt). After coming the market , it took over a lot of competitors and became to the leader of canned/ preserved food market and ranked the third position in the packaged food in Vietnam in 2012 (Euromonitor International, 2013). Moreover, during 39 years working in the Vietnamese market, Vissan Co ltd received a lot of positive feedback from customers so it brings a huge amout of money for company each year. In 2012, net sale and net profit of company reached VND 4,374 billion and VND125.5 billion respectively (Euromonitor International, 2013). Additionally, Vissan Co Ltd achieved a lot of certificates such as Certificate of Accreditation ISO/IEC 17025, ISO 9001:2000 and HACCP Certificates and Certificate of High Quality Vietnam Products (from 1997 to now). Furthermore, Nissan Ltd has thousands of workers trained carefully and they are work with a Japanese technology processing line. 2.1.2. Product descriptionVissan canned/preserved food products are made from fresh food and add perfect spices. Moreover, Vissan Ltd use completely Japanese technology in processing so Vissan canned/ preserved food products are very safe for peoples health and have delicious taste. Moreover, there are four main kind of Vissan canned/preserved food which is chicken, pork, beef and fish. Therefore, customers can have a lot of choices.III. Marketing Environment3.1. Micro environment3.1.1. Marketing intermediaries (Resellers)According to Euromonitor International (2012), distance is the most important factors when customers choose the place to buy food. This report also states that market shopper will choest the nearest market to purchase food. On the other hand, supermarket shopper will chose the most familiar supermarket to purchase. Moreover, convenient stores and local groceries are highly considered for top up food shopping (Euromonitor International, 2012).At this time, Vissan has 11 direct stores and 600 retailers and 700 authorized stores in Ho Chi Minh City (Euromonitor International, 2013). Additionally, Vissan distributes product for all supermarket in Vietnam (Euromonitor International, 2013). Moreover, it has retailers in Hanoi and Da Nang.Strengths: Vissan distributes its product widely so customers can find Vissan canned/preserved product easily.3.1.2. CustomersAccording to Kotler et al (2009), there are five types of customer market which contains consumer markets, business market, reseller markets, government markets, international markets. Applying in Vissan canned/preserved food, there are three intended markets.- Reseller market: people or organization buy product to sell to others to make profit (Kotler et al, 2009)- Consumer market: people who purchase and consume product directly (Kotler et al, 2009).- International market: exporting product to other countries (Kotler et al, 2009).However, in this case Vissan team concentrates on consumer market to have deeply analysis about Vissan canned/preserved food. Customers recognize that Vissan canned food products are very convenient and do not have negative effect for their healthStrength: Customers realize that Vissan is a product which has high quality.3.1.3. CompetitorsNowadays, Vietnamese customers are more familiar with Western lifestyle; therefore, a lot of companies invest into canned/preserved food market.Brand nameVissanHa LongTuyen KySeaspimex

CompanyVissan Co LtdHa Long canned food JSCTuyen Ky Co LtdSpecial Aquatic Joint Stock Co

Year comes to market1974 (Vissan Limited Company, 2009)1957 (Ha Long Canfoco, 2013)1994 (Tuyen Ky Food .Co Ltd, 2013)1983

Market share volume (2012)29.62% (Euromonitor International, 2013)24.96% (Euromonitor International, 2013)10.74% (Euromonitor International, 2013)6.6%(Euromonitor International, 2013)

Products tastesCanned beefCanned chickenCanned porkCanned fishCanned beefCanned porkCanned fishCanned beefCanned chickenCanned porkCanned fish Canned mushroomsCanned Sweet TeaCanned cocktailCanned pineappleCanned fish

Price33, 000 VND/ tuna in oil can (170 grams)29, 000 VND/ tuna in oil can (175 grams)

28,000VND/ tuna in oil can (170 grams)27,000 VND/ canned fish (185 grams)

Strengths: Although Vissan came to market latter than Ha Long, it still is the leader of the market. Moreover, market of Vissan much higher than Tuyen Ky and Seaspimex. Therefore, customers will be more familiar with Vissan than others.Weaknesses: The average price of Vissan is higher than its competitors. Vissan provides less choice for customers than Tuyen Ky. 3.2. Macro environment3.2.1. DemographicAccording to Nielsen (2010), more than 56% Vietnamese population are under 34 years old. It is an opportunity for Vissan canned food because 56% is a significant number which will bring potential target customer for brand. (Apendix 1)TNS (2009, cited in Dexter, 2010) point out that 37% of Vietnamese population has from middle income to high income. This report also states that 49.6% of urban population has income from 3 million to 15 million. It is an opportunity for Vissan because target market of Vissan is urban population and from middle to high income. Hence, 49.6% of urban population can afford Vissan canned food.Opportunities: 56% of population is under 34 years old which will bring potential target customer for brand. 49.6% of urban population can afford Vissan canned food.3.2.2. EconomicAccording to Dexter (2010), the inflation decreased from 18.13% to 9.96% between 2011 and 2012. However, the average price of canned/preserved food still rises by 7% due to inflation in 2012 (Euromonitor International, 2013) Matthaes (2012) states that Vietnamese people now have tendency to save more money than before. Therefore, 50% consumers find it easy to purchase other canned/preserved food brands which are less expensive than familiar products. Threaten: when a price of product go up, customers purchasing power will decline. Vissan customers can buy competitive product if its price is cheaper.3.2.3. PoliticalVietnamese Government launched a campaign Vietnamese use Vietnamese product successfully. Moreover, the Government continues to support local product. It is an opportunity for Vissan because it is a Vietnamese brand and it has cheaper price than international brand (Euromonitor International, 2013)Opportunity: Vietnamese use Vietnamese product campaign help Vissan raise awareness about Vietnamese product in customers mind.3.2.4. CulturalNowadays, living standard of Vietnamese is improved than before. Therefore, people start to care about their health and wellness (Euromonitor International, 2013). Therefore, they will choose food and drink more carefully. It is an opportunity for Vissan because it achieved lots of certificates such as HACCP Certificates and Certificate of High Quality Vietnam Products which proves that it has good quality.There is increasing in busy lifestyle and in the number of working mothers in urban so people are more familiar with packaged products, canned/preserved food an convenient products to save time (Euromonitor International, 2013). It is an opportunity for Vissan to interact more with customers.Opportunities: Vietnamese people care more about health and Vissan canned products has a good quality. Busy lifestyle and there are a lot of working mothers in urban.IV. SWOT analysisInternal Factors

External FactorsStrengths Vissan received many certificates which improve that product has good quality Vissan has wide distribution channels across country Customers is more familiar with Vissan than others Market share is higher than competitorsWeaknesses The average price of Vissan is higher than other competitors Provide less choices for customers than

Opportunities Most of all urban population have middle and high income Vietnam is young country Customers raise awareness about healthy food Vietnamese use Vietnamese product campaign of government Busy lifestyle and many working mothers in urbanSO Strategies Emphasis on the quality of product to remind customers via TVC (Section 8.4) Keeping customers loyalty (Section 8.4)WO Strategies Building healthy image in customers mind (Section 8.4) Creating new product to provide customer more choice (Section 8.1)

Threats High inflation leads declining customers purchasing power Purchasing decisions depends a lots on price of productsST Strategies .Expanding distribution strategy to bring product closer to customers (Section 8.3) Launching a mass promotion to catch attention of customers (Section 8.4)WT Strategies Sharing the burden with customer from economic crisis by launching new positioning statement (more for the same) (Section 8.2) Implement sales a lot of promotion strategy (Section 8.4)

V. Product Life CycleAccording to Euromonitor International (2013), Vissan was a leader of canned/preserved food from 2008 until now. The market share value of Vissan rose by 0.59% from 2008 to 2009. In the next year, it grew up by 0.55%. Between 2010 and 2011, Vissans market share value rose by only 0.29%. There is an increase by 0.38% in the market share value of Vissan from 2011 to 2012. From this, it is clear that although the market share value of Vissan still grew, it just increase slightly which is less than nearly a half two previous year. Vissan still a leader of the market and the market share value still increase slowly so Vissan is in maturity stage in product life cycle. (Apendix 2)The reason why the market share value of Vissan jumps slower is that nowadays, there are more companies enter into the market such as Tuyen Ky, Seaspimex, Annalisa and Ligo. Moreover, they offer cheaper price for customers than Vissan. Additionally, they provide more choice for customers like Tuyen Ky.The company which is in maturity stage should change and improve product and marketing strategy to gain more customers attention and increase profit (Kotler et al, 2009).VI. Setting Objectives6.1. Corporate objectivesAccording to Euromonitor International (2013), the market share value of Vissan increased slower than two previous years. Therefore, Vissan need to increase market share to raise the profit of the company.Moreover, nowadays customers concern more about their health and wellness more than before. Hence, it is very important for Vissan to reinforce their image in the customers.6.2. Financial objectives Increase sale of Vissan canned/preserved food from VND 2,344 billion to 3,000 billion from May 2013 to at the end of April 2014. Increase profit of Vissan canned/food preserved food from VND 55 billion to 70 billion from May 2013 to at the end of April 2014.6.3. Marketing objectives Increase market share from 29.62% to 32% between May 2013 and at the end of April 2014 Reinforce brand images in customers mind by building healthy image brand.VII. Segmentation, Targeting and Positioning7.1. Segmentation GeographicCountryVietnam

DensityUrban (64 cities)

DemographicAge25-34

GenderFemale

Family Life CycleYoung mothers with children

Income3-15 million VND (from middle to high income)

OccupationWhite collar

PsychographicPersonal CharacteristicActive, outgoing, busy

Social classMiddle class and Upper class

BehaviouralOccasionRegular occasion

Benefit Reduce cooking time, convenience

User statusNew users, potential users, ex-users, regular users

User ratesMedium user, heavy user

Loyalty statusMedium, strong

Explanation: - Vissan canned food targets urban areas because people who live in countryside and rural areas often have low income therefore they tend to cook at home by themselves to save money better.- Vissan canned food also aim for customers from 25-34 years old especially young mothers because those are the ones who are usually busy because of work but also have sufficient income to afford so it makes Vissan canned food become a perfect choice for them. Moreover, using canned/preseved food products is one of the Western lifestyle. Hence, people in this age are quite young so they are more familiar with Western lifestyle than older groups.- Customers of Vissan canned food are often regular users and ex-users, however, they have a huge amount of potential users as the number of people from 25-34 who live and work in the urban are increasing rapidly. Moreover, the users of Vissan canned food products are usually the ones who use it regularly on daily basis and very familiar with the product to stick with it for a long time.7.2. Targeting7.2.1. Evaluating Market Segments: Segment Size and Growth:* Segment Size:Vietnam populationUrban populationUrban population from 25-34 years old% urban people have from middle to high income

People92,477,857 (CIA The World Factbook, 2013)28,668,136 (US Global Health Policy, 2012)Approximately 16.8 million (CIA The World Factbook, 2012)49.6% of urban population - 14,219,396 people (AMCHAM 2012)

Percentage100%31%18.17%15.38%

* Segment Growth:From table above, it shows that Vissan canned foods segment size occupies 15.38% of Vietnamese population or 49.6% of urban population. It means that nearly half of urban population earn from middle income or over. As a consequence, the market for Vissan canned food can be considered sufficient to target. Moreover, according to Nielsen (2012), the peoples tendency of moving to urban areas has been high; therefore, this target segment market is very potential. Segment Structural Attractiveness- Competitors: There are a lot of competitors in the canned/preserved food market such as Tuyen Ky, Ha Long and Seaspimex. However, Vissan is still a leader in the market so it has more strength than others because customers are more familiar with it (Euromonitor, 2013)- Purchasing power: This report also claims that there has been a significant growth in the trend for consumption of canned/preserved food. To be specific, the rise was accounted for 7.46(000 tonnes) since 2007 to 2012. It results in the purchasing power for this category of product increasing year by year and not being affected by the inflation. In addition, 49.6% numbers of people, who live in urban areas, have from middle income and over (TNS, 2009, cited in Dexter 2010). Thus, Vissan canned food still remain its considerable impacts on urban customers. Company Objectives and Resources:The will share the burden with consumers in difficult economic situation (Section IV). This price strategy is based on the stable growth and the companys effort to keep the price under control and absorb the cost so it can maintain the competitive price in some key brands.According to Euromonitor International (2013), Currently, Vissan canned food held 29.62% of the market share being the leader of canned/preserved food. Moreover, segmentation size of Vissan is nearly a half of urban population so it will help Vissan reaches the objectives between 2013 and 2014.7.2.2. Selecting Market Target Segments:Vissan canned/preserved food uses concentrated marketing strategy to target busy and outgoing female customers, which have age range between 25 and 34 years old, live in urban areas and have income from middle to high. By using concentrated marketing, the company can concentrate on these target customers to make them satisfy better and can increase market power as well as building brand image. (Kotler et al, 2009).7.3. Differentiation7.3.1. Possible Competitive AdvantagesProduct differentiation: Used French and Japanese modern technology Have a full cycle of supply chain system from breeding, feeding farming processing packaging distribution storage.Service differentiation: Open product showrooms to receive feedback and recommendation from consumers in order to develop new products. Have an inquiry page for customers to send any question about the company and products as well as service.Channel differentiation: 700 authorised stores for processed food. 11 direct stores in Ho Chi Minh City, more than 600 retailing stores at wholesale and supermarket. Open 100 product showrooms in Ho Chi Minh city Have branches in Hanoi, Da Nang, Representative in Russia, Cambodia. Image differentiation: Updated logo and slogan: Morning sun glow was added to the old logo of three yellow Mai flowers to communicate Vissans continuous effort to satisfy the consumer desire for good food and a good start to the day. (Euromonitor International 2013).7.4. Positioning7.4.1. Positioning mapLevel of Perceive Value

Canned food ProductPerceive Value12345

VissanDistribution network

Ha Long

Tuyen Ky

Seaspimex

VissanManufacturing Technology

Ha Long

Tuyen Ky

Seaspimex

VissanCustomer Perception

Ha Long

Tuyen Ky

Seaspimex

7.4.2. Value PropositionAfter identifying the differentiations between the products of Vissan canned food and other competitors, we must analyse whether they can the criteria before establishing before it might cost more than the benefit it brings- Important: the difference in technology will surely bring benefit to target customers because customers can enjoy a better quality food- Distinctive: the differentiation in services is something that other competitors cannot offer on the same level because of its convenience in obtaining the products wherever the customers are, together with constant improvement due to the feedback on the website as well as the direct stores or product showrooms.- Superior: the differentiation in channel might give the customers a sense of superior since there are direct stores and product showrooms of Vissan canned food so that it make the products look like a shopping products rather than convenience products.- Communicable: the differentiation in image, product and channel can be easily recognized by customers whenever they buy and use the products- Pre-emptive: other competitors cannot use exactly the same technology or ingredients that produce Vissan canned food.- Affordable: Vissan canned food is convenience products therefore it is always affordable whether there are changes in technology or ingredients- Profitable: those differentiations aim to bring profit for the company and it has a high rate of return since they improve the product to make it healthier and more delicious.As a result, Vissan canned food can establish the differentiation since it will bring more benefit than cost.7.4.3. Positioning statementCurrently, Vissan canned/preserved food uses more for more positioning strategy because the products average price is higher than other competitors as well as bringing more benefits for customers than the others. Specifically, Vissan canned/preserved food is manufactured via the process of using French, Japanese modern technology and as well as a complete end-to-end supply chain system. Thus, the products not only satisfy customers desire for tasty, convenient and healthy food product, but they also continuously remain competitive advantages in the market. In spite of Vissan canned foods price being the highest than its main competitors such as Tuyen Ky, Ha Long and Seaspimex, it still attract a huge number of customers. The main reason is that customers now have tendency to choose products which have high quality rather than their price. Consequently, it can be said that the higher price the products are, the more benefits will be provided for customers. On the other hand, the low price is still one of the main factors attract customers decision in choosing goods and Vissan canned food is in maturity stage; therefore competitive price is what they need to capture more buyers in crisis economic situation. Moreover, Vissan will want to share the burden with customers in crisis economic (Section IV). It will leads to Vissan canned food considering the way of charging same price with other competitors but for more benefits. In conclusion, even though the current position of Vissan canned food is still effective, the company needs to apply more for the same for this type of product to attract more customers. VIII. Marketing Mix Strategies8.1. Product8.1.1. Product ClassificationVissan canned/preserved food is a convenient productBuyer behaviour: customers purchase the product frequently and they rarely have comparisons to other same products in the same category.Pricing: low level of price so customer still have ability to buy it. Distribution: it is very easy for buyers to find the product in local shops or supermarkets.8.1.2. Three levels of productLevelAspectsCurrent productProduct Improvement

Core BenefitPrevent hungry, clean- Provide more benefits for customers (Improve the standard of normal meal, stimulate eating habit).

Actual ProductFeatureQuality meat: manufactured by using French, Japanese modern technology. Maintain the quality of meat as well as the manufacturing chain system.

Design/ Packaging- Cans are covered by colourful and attractive texture with images and main information about the products.Attract customers as well as make them trust the quality of products. However, it is quite similar to other competitors packaging in the same product category.- Cans are made of stainless steel food is preserved for a long time- Print the logo of Vissan onto the lid of the product Makes it stand out more than other competitors. Thus, customers can easily recognize the product of Vissan.

QualityISO 9001:2000; Certificate for Hazard Analysis and Critical Control Point (HACCP); Certificate for Vietnam High Quality Product; Gold, silver prize, medal for food contest festivals; Rank 1st in Vietnams food manufacturing industry; Rank 15st in the top of 100 Vietnams strongest brands.- Maintain the existing certificates, improve to get higher ones and attain higher rank in the lead of top Vietnams strongest brands.

Brand NameVietnamese long established famous brand name- Maintain the reputation of current brand name

Augmented productAfter sale serviceAn inquiry page for customers to send any question.24/7 hot-line serving customers

Delivery and creditDeliver large numbers of products to wholesalers. - Also deliver to retailers.

WarrantyOnly expiry date printed on the cans.Customers can exchange for new products if old ones have problems about the quality

8.1.3. Brand Development StrategiesEven though Vissan creates much more choice about canned food products for customers than other competitors (Section 3.1.3), they still try to catch up Vissan. Additionally, Vissan canned/preserved food is in maturity stage so that the products become familiar with customers and they might feel uninterested with old flavour of them. As a consequence, Vissan canned food would use line extension strategy to extend its existing brand name with creating more new variety for the existing product category. Vissan would add more ingredients with enough dosage in order to stimulate eating as well as implementing new flavours to make customers feel more interested. Moreover, the company would manufacture more different kinds of meat which has become more and more popular nowadays such as canned roast lamb and canned goat meat.Applying line extension strategy brings for Vissan canned/preserved food many benefits:- Vissan will expand the market because it creates more choice for customers.- Vissan will reduce the cost of advertising for new products under this brand name because Vissan is a very strong and familiar brand in Vietnamese market. Thus, Vissan do not need much money to advertise the products.- Vissan will have high opportunity to be successful in launching new products because they are produced based on current manufacturing system as well as using the current brand name. 8.2. Price8.2.1. Companys Pricing Strategies8.2.1.1. Current PriceThe current price of Vissan canned Food as well as other main competitors are clearly showed in the table above (Section 3.1.3) and the current pricing approach of Vissan canned food is Value-added pricing. The brand sets higher price than competitors to make customers perceive that Vissan products have better quality. 8.2.1.2. Product Mix Pricing StrategiesStrategyHow to ApplyReasons to Apply

Product Line Pricing- Same price for the same product line - Different price for the different product line (Canned fishs price>Canned beefs>Canned chickens>Canned porks)- Set the same price with competitors but more benefits (more for the same) (Section 7.4.3)- Using Product Line Pricing to set price for each product is appropriate for applying Line Extension Strategy. - Promote new product lines by setting the expected market price.

Product Bundle Pricing- Customers can have a discount 10% when they purchase more than 4 different kinds of meat. - Customers can have an additional product when purchasing more than five units of the same product.- Increase sales by giving customers incentive -Can promote sales of the new products

8.2.1.3. Price-Adjustment StrategiesShopping online has become more and more popular in Vietnam. Therefore, Vissan should construct an online system to sell the products via this channel to attract more customers. Therefore, Vissan canned food would apply promotional pricing to encourage customers buy this kind of product via the Internet. Not only does purchasing online give customers a discount price, but also it brings for them much more convenience in purchasing the products. Customers will pay the bill after the products are delivered to them instead of paying online. This strategy will help both customers and the company itself in saving shopping time and expanding the market respectively.In addition, Vissan also apply cash discount pricing for wholesalers who pays the bills promptly: deduct 3% for buyers if they pay the bill within 10 days. Using this strategy can encourage the wholesales pay the bills early as well as the company can quickly receive money back.As a result, Vissan will have more opportunity to achieve its financial objectives. 8.3. Place

8.3.1. Customers needCustomers of Vissan are young people and middle age living in urban. In these age, people always busy with their work and their personal lives, especially, target customers of Vissan is single males and woman having family (Section Segmentation). Therefore, they highly appreciate convenient factors so Vissan decides to deliver their product to convenient stores and local shops to help the customers save travelling time. Moreover, customers raise awareness about safety food being good for their help, therefore, they often go to the most familiar supermarket to buy food and drink (Section 2.4 - Culture). Moreover, nowadays Internet is very popular in Vietnam. Additionally, it helps customers reduces their shopping time, they just have to sit in front of the screen and order product which they want to buy. Therefore, Internet is very convenient for customers to go shopping. Besides delivering products to convenient stores and local shops, Vissan also distributes their products to supermarkets and on the Internet.8.3.2. Distribution strategyVissan canned/preserved food is convenient products so Vissan will apply intensive distribution to bring their products closer to target customers. Moreover, applying intensive distribution system will help the company expand their market and increase the chance to interact with customers (Kottler et al, 2009) (Apendix 3)8.3.3. Vertical marketing systems (VMS)

Vissan chooses Administered VMS for the marketing system. Administered VMS is the leadership comes from size or power (Kottler et al, 2009). This marketing system has lowest control between three types of VMS. The reason is that Vissan applies mass distribution in Vietnamese urban so it is very difficult to control all of them to follow the design or concept marketing of company. However, when Vissan uses this strategy, retailers and distributors can sell other products so it can make the diversity in their store. Hence, it is a good way to catch customers attention since they find more convenient if they can buy many kinds of products in one place.Moreover, Vissan also applies Corporates VMS to its official showrooms. According to Kottler et al (2009), in each different level of distribution, there is a typical leader of company to control the system. In the showrooms of Vissan, there is a manager to control it and other staffs will sell product for the customers.8.4. PromotionVissan uses both push and pull strategy because customers of Vissan canned/food preserved food are consumers and retailer (Section 3.1.2). Push strategy will help Vissan attract of retailers while pull strategy will capture attention of many consumers. Hence, it will assit Vissan increase profit and sale.8.4.1. Advertising ObjectiveVissan will apply Reminder Advertising for canned/preserved food to remind customers about the images of products. Vissan canned/preserved food in in maturity stage in product life cycle. Hence, according to Kotler et al (2009), reminder advertising is a good method for mature product to reinforce product/brands image in customers mind. Moreover, reminding customers about brands image is a good way to keep their loyalty and gain more customers so it will help Vissan increase market share and maximize profit to achieve its objectives.8.4.2. Advertising BudgetIn term of advertising budget, Vissan will implement objective and task. Kotler et al (2009) state that when a firm uses objective and task advertising budget, it has to set up the objectives and task which the company need to do first then approximating the cost. It is the most effective way for Vissan to set up the budget because it can do step by step so it is very easy to check the efficiency of each task. As a result, if it does not run well, Vissan can come back and do it in more effective way.8.4.3. Advertising MediaMedia TypesMedia VehicleDescriptionReasons

Internet(31% of Vietnamese population use Internet in 2010) ( Cimigo, 2011)Music website Zing Mp3 Advertisement of Vissan canned/preserved food will be out in Right Banner -78% Vietnamese listening to music on the Internet.(Cimigo Vietnam, 2011)- Reach: 21% customers from 25 to 35 years old (Cimigo, 2011)-Frequency: 77.6% of Internet users accessing to it frequently (Zing, 2012)

News Website VnExpressAdvertisement will be put into the Top banner to capture attention of customers-Reach: 26% customers from 25 to 35 years old access to it (Cimigo, 2011)-Frequency: 800,000 read Vn Express frequently (Ohmy News, 2005)

TelevisionVTV3

TV commercial advertising of Vissan canned/preserved food will performed at 6:52 which before the daily News -Reach: 41.2% the number of people watching TV (Viet Film, 2009)-Before and after the Daily New is the Golden hour to advertise

MagazineTiep Thi va Gia DinhPoster of Vissan will be put in pages with 4 color in Tiep Thi va Gia Dinh Magazine- Reach: 95% urban population read Tiep Thi va Gia Dinh Magazine (Marketing Vietnam, 2012).Frequency: Publish regularly 120,000 issues/week (Marketing Vietnam, 2012)

8.4.4. Public RelationToolsHow to applyReasons to apply

Material WrittenPR employees of Vissan will write an article when Vissan canned/preserved food launches a new product or holding some special event. Then, they put it in Vissan website and other online newspaper will be interested in it and they will write more about it.-Vissan will save a lot of money

-If other newspaper write about the company, it will be more credible than advertising (Kotler et al, 2009).

Special eventsVissan will be sponsor for the charity program which is hold by charity organization such as operation smile-Create strong connection with publicity

Public service activitiesVissan will participate in earth hour program every year. Vissan employees will wear Vissan hat and earth hour T -shirt and ride a bike around the street -It is a good way to capture attention of customers-Create a good image of Vissan in customers mind which is protecting environment with their customers

8.4.5. Sale PromotionToolsHow to applyReasons to apply

CouponIn the label of each Vissan canned/ preserved food will be put image of a small 3d card showing the logo of Vissan. If the customers collect 5 3d card, they can exchange for a free can of Vissan food-It is a good way to keep customers loyalty and enhance long-term customers relationship because they will continue consuming Vissan canned food to have chance to exchange to free one.-Encourage customers purchase Vissan canned food.

SweepstakesIn the Lunar New Year, Vissan will organize a huge sweepstakes for customers. When customers buy a Vissan canned food they will received a code number inside the label. After that, they have go to Vissan website to provide their personal information and code number to take part in the sweepstakesFinally, Vissan will draw 100 lucky code numbers to reward.-Have an opportunity to gather customers information to build customers database.-Raise customers buying effort.-Encourage customers to buy Vissan canned food.-Capture attention of customers in canned/ preserved food market in Lunar New Year.

8.4.6. Direct MarketingVissan will apply Online Marketing to catch attention of customers. Moreover, the company will combine viral marketing and Internet marketing to support to each other.Firstly, all employees of Vissan will wear Vissan uniform and dance flowing to Gangnam style in front of the show room in the afternoon to capture attention of customers. Therefore, they will take a photo or record it. Then they will published it on their Facebook page to share with their friends After using camera to record this movement, Vissan will be posted it on YouTube. Moreover, Vissan has customers database from promotion strategy, it will send this video via e-mail for customers. If the customers interested in it, they will forward this video to their friend or post it in their Facebook page.When Vissan uses this strategy it will help: Saving a lot of money. Capture attention of customers easily. Raise awareness of customers about Vissan quickly Moreover, it is very easy to measure the result of this strategy which is controlling the number of views of this video.Marketing Principle

Vissan Marketing Plan RMIT UniversityPage 34

IX. Action Plan4PTaskDepartmentsMayJunJulAugSepOctNovDecJanFebMarAprCost (est in VND)

ProductLogo imprinted R&DManufactureFinance 5,400,000,000

New ingredientsMarketingR&DPurchasingManufacture4,250,000,000

Providing hot-line serviceITR&D200,000,000

Maintaining current brand reputationManagementMarketingPR7,500,000,000

PriceProduct line-pricingManufactureManagementR&D

Creating product pack of different kinds or the same kind of product for the Product Bundle Pricing strategy MarketingR & DFinanceManufactureFinance6,300,000,000

Discount when order onlineITFinanceMarketing550,000,000

Discount for wholesalersFinanceMarketing2,500,000,000

Place

Creating, maintaining and keeping the website up to date with the latest and current priceMarketingITManagement750,000,000

Construct a team for delivery with the sufficient means of transportationR&DMarketingFinanceManagement8,300,000,000

PromotionAdvertising on Zing Mp3MarketingFinance

4,500,000,000

Advertising on Vn Express5,700,000,000

Advertising on VTV34,200,000,000

Advertising on Tiep Thi va Gia Dinh magazine2,500,000,000

Sponsors for Events of Operation SmileTop ManagementMarketingFinancePR2,000,000,000

Material WrittenIT PRMarketingFree

Public Service ActivitiesTop ManagementFinancePRMarketing1,000,000,000

CouponFinanceMarketing1,500,000,000

Sweepstakes930,000,000

Viral Marketing and sending e-mail ITMarketing500,000,000

X. ControlGoalsMeasured PerformanceEvaluate PerformanceCorrective Action

SalesIncrease from 2,334 billion VND to 3,000 billion VND between May 2013 and April 2014.

89% success-Provide for customers a wider range of choices by launching new flavors, new ingredients together with new cover.-Discount for customer buy in bulk.-Increasing promotion to attract and inform customer about new product.

ProfitIncrease from 55 billion VND to 70 billion VND between May 2013 and April 2014

Market Share-Market share value increases from 29.62% to 32% between May 2013 and April 201492% success -Expand distribution intensively by delivering the products to supermarkets and local convenience stores, taking online order to receive discount.-Increasing advertising means

Improving ImageHealthy brand83% success-PR, Advertising on food and cuisine magazine.-Launching a campaign to promote the family and friendly image.

XI. References Central Intelligence Agency 2013, The World Factbook: Vietnams Geography, Central Intelligence Agency, viewed 25 March 2013, Central Intelligence Agency 2013, The World Factbook: Vietnams Population Pyramid, Central Intelligence Agency, viewed 25 March 2013, Dexter, A 2010, The Shifting Landscape of Consumerism in Vietnam, TNS, nd, viewed 23 March 2013, < http://www.austrade.gov.au/ArticleDocuments/2816/Vietnam-Seminar-2010-TNS-Presentation.pdf.aspx> Euromonitor International 2012, Consumer lifestyles in Vietnam, Euromonitor International, 07 November, viewed 12 March 2013, < http://www.portal.euromonitor.com.ezproxy.lib.rmit.edu.au/Portal/Pages/Analysis/AnalysisPage.aspx> Euromonitor International 2013, Canned/preserved food in Vietnam, Euromonitor International, 08 March, viewed 23 March 2013, < http://www.portal.euromonitor.com.ezproxy.lib.rmit.edu.au/Portal/Pages/Analysis/AnalysisPage.aspx> Euromonitor International 2013, Packaged Food in Vietnam, Euromonitor International, 14 March, viewed 22 March 2013, < http://www.portal.euromonitor.com.ezproxy.lib.rmit.edu.au/Portal/Pages/Analysis/AnalysisPage.aspx> Euromonitor International 2013, Vissan Co Ltd in Packaged Food (Vietnam), Euromonitor International, 14 March, 19 March 2013, < http://www.portal.euromonitor.com.ezproxy.lib.rmit.edu.au/Portal/Pages/Analysis/AnalysisPage.aspx> Ha Long Canfoco 2013, Introduction, nd, viewed 23 March 2013, < http://www.canfoco.com.vn/en/gioithieu.html> Kotler, P, Amstrong, G, Ang, SH, Leong, SM,Tan, CT & Hon-Ming OY, 2009, Priniples of Marketing: A Goal Perspective, 12th edn, Pearson, Singapore. Matthaes, R 2012, Recession & Growth Opportunity, American Chamber of Commerce in Vietnam,10 October, viewed 24 March 2013, Marketing Vietnan 2012, Tap Chi Tiep Thi va Gia Dinh, viewed 22 March2013, Nielsen 2011, Vietnamese Shoppers are the Most Prolific Promotion-seekers in Asia Pacific, Nielsen, 5 July, viewed March 2013, Nielsen 2012, 2012 Vietnam Pocket Book, Nielsen, 2012, viewed 26 March, Ohmy News 2005, Vietnam's Free Press Thrives Online, 10 May, viewed 21 March 2013, Tuyen Ky Food Co Ldt 2013, Profile, nd, viewed 24 March 2013, < http://www.tuyenkyco.com/Default.aspx?TabId=0d0cb5b8-3294-44bb-a329-8c1226250734> US Global Health Policy 2012, Urban Population (Percent of Total Population living in Urban Areas, Kaiser Family Foundation, viewed 5 April 2013, Viet Film 2009, The most favourtite channel in Vietnam, nd, viewed 20 March 2013, Vissan Limited Company 2009, INTRODUCTION OF VISSAN LIMITED COMPANY, nd, viewed 23 March 2013, < http://www.vissan.com.vn/en/aboutus.php> Zing 2012, Zing solution, 07 January, viewed 24 March 2013 XII. Appendixes1.Vietnamese population

Figure 1: Adapted from Nielsen (2010)2.Vissan product life cycle

Figure 2: Vissans Product Life Cycle

3.Vissans distribution strategy

Figure 3: Intensive distribution strategy of Vissan canned/preserved food.