lOMoARcPSD|39474592 MINISTRY OF FINANCE UNIVERSITY OF FINANCE – MARKETING FACULTY OF MARKETING INTERNATIONAL MARKETING FINAL EXAM ASSIGNMENT MARKETING ENTRY STRATEGY OF SIMPLY OIL PRODUCTS OF CALOFIC COMPANY TO GERMANY Class Code: 2221702031204 Team’s members names and IDs: Nguyễn Hồng Ngọc - 2021001654 Phan Ngọc Linh Nhi - 2021006454 Trần Thị Minh Thoa - 2021007962 Nguyễn Mai Khanh - 2021001688 Mai Thị Thu Hương – 2021001770 Phạm Đức Thành Ngọc Anh - 2021006484 TP. Hồ Chí Minh, 2022 Downloaded by nhim nhim (nhimbien3@gmail.com) lOMoARcPSD|39474592 TABLE OF CONTENTS 1. The situation of exporting cooking oil in the world.2 Market demand for cooking oil by region. INTERNAL ENVIRONMENT ANALYSIS (CALOFIC).2 National business environment.
Politics and Law .7 Porter’s Five Forces. ENTRY MODE SELECTION .1 Market penetration method. 23 i Downloaded by nhim nhim (nhimbien3@gmail. Classifications of products.
International product mix management. International product standardization and adaptation .1 International Marketing Channels:. International Marketing Channel Decisions .3 Managing International Distribution Channels .2 International Sales Promotions .3 International Public Relations. RECOMMENDATIONS, EVALUATION, MEASUREMENT AND CONTROL.
Evaluation and Measurement:. 55 ii Downloaded by nhim nhim (nhimbien3@gmail. LIST OF REFERENCES:. Financial papers and Expense Budget:.
Member’s group work assessment .b iii Downloaded by nhim nhim (nhimbien3@gmail.com) lOMoARcPSD|39474592 LIST OF TABLES: Table 2. 1: Table of exported cooking oil products. Listed price for retails. 2: Fixed cost within 1 year.
Variable cost within 1 year. 4: Pricing policy for intermediaries. Pricing policy for key accounts. 6: Penetration Pricing within the first 6 months.
1: ROI of CALOFIC. Member’s group work assessment .b iv Downloaded by nhim nhim (nhimbien3@gmail.com) lOMoARcPSD|39474592 LIST OF FIGURES: Figure 2. 1: Logo of CALOFIC. 1: Germany's GDP in the period 2018 - 2021.
2: German cooking oil imports in the last 10 years. 3: Languages spoken by the German population. 4: German cooking oil market share in Europe. 5: : German cooking oil revenue.
6: The production of vegetable oil has grown over the years. 1: Location map of Simply. 3: the Price Perceptual Map. 4: The channel length of Simply.
5: Logo of Viet Nam Ship Agents and Brokers Association – VISABA. 6: Entrepreneur Nguyen Thi Trung Hoa, Vietnamese Entrepreneur in Germany. 7: Daco Logistics Company. 8: Simply product distribution channel.
9: Eat Smart magazine in Germany. 10: Poster of Simply’s products. 11: Lightbox at the bus stop. 12: Lightbox along the way.
13: Vietnamese at Multicultural Festival in Germany. 14: Website of Calofic. 15: Asia Sky Tours displays Vietnamese goods in Germany. 16: Chef Tim Raue.
17: Interview with Tim Raue .49 v Downloaded by nhim nhim (nhimbien3@gmail.com) lOMoARcPSD|39474592 Fugure 9. 1: Recommend 10l oil can. 2: Recommend simply maca oil .55 vi Downloaded by nhim nhim (nhimbien3@gmail. EXECUTIVE SUMMARY Simply vegetable oil belongs to CALOFIC Co., Ltd (CALOFIC) - a multinational company with extensive experience in exporting to many different countries and territories.
Currently, the company focuses on developing and perfecting cooking oil products - an indispensable ingredient in every kitchen. With the outstanding potential of being a 100% pure seed product manufactured according to European technology, it is the only brand recommended by the Vietnam Heart Association as good for health. With the advantages of product characteristics, the factor that helps Simply cooking oil can convince consumers. Our group decided to develop a plan to export Simply vegetable oil to German market.
Germany - a potential market when the demand for cooking oil is increasing every year, the culinary trend is increasingly diverse. Besides, the distribution system is expanded, multi-level, multi-channel modern, opening up many opportunities for Simply to reach customers. In addition, Germany is a fastidious market but is willing to open up and accept innovation in quality products. The export plan will be studied to meet export standards to help Simply overcome strict barriers when entering the German market.
Through the steps of analyzing the company's internal resources, analyzing the target market, building penetration plans, business organization, marketing strategies and finding partners and assessing new business opportunities. Simply is a quality product with a potential market like Germany, we will penetrate the market to bring success in the first year. The situation of exporting cooking oil in the world The global edible oil market is forecast to reach a CAGR of 3.25% during the forecast period (2020 - 2025). The global edible oil market is driven by strong demand for health-based establishment products, with high consumption of high- 1 Downloaded by nhim nhim (nhimbien3@gmail.com) lOMoARcPSD|39474592 quality cooking oils/oils by health-conscious users on a daily basis.
the better and the growing demand from different applications. The size of the world's cooking oil supply is shrinking because of the Russia- Ukraine conflict. Now, this supply is at risk of further scarcity due to the ban on the export of palm oil and raw materials related to palm oil production by Indonesia. According to Bloomberg, Indonesia now accounts for more than a third of the world's vegetable oil exports, with China and India being two of the top customers.
Since November 2021, palm oil in Indonesia has become scarce as producers increase exports due to rising prices of this commodity worldwide. The Russia-Ukraine conflict has thrown the sunflower oil trade into chaos while squeezing supplies of other vegetable oils used in food, biofuels and personal care products. Weather uncertainties in major cooking oil producers around the world are adding to fears of shortages. The drought has reduced the size of soybean harvests in South America, the world's largest supplier of soybeans.
The lack in Canada has diminished rapeseed production, leaving little available supply.2 Market demand for cooking oil by region Asian market In Asia - Pacific, China is miserable because of the lack of cooking oil: People wait in long lines to buy goods. The main cooking oils are in shortage due to the influence of the weather and the Russia-Ukraine crisis. The suspension of Indonesian exports will put a strain on price-sensitive consumers. Indonesia is currently the leading oil producer.
The country's oil accounts for about a third of its total vegetable oil exports. Europe Whether the war is big or small, the export of raw materials has stalled, causing Europe to fall into a severe shortage of cooking oil. Regardless of which brand produces, the goods are sparse on the shelves of cooking oil at supermarkets. This phenomenon appears more and more often as the conflict in Ukraine continues to 2 Downloaded by nhim nhim (nhimbien3@gmail.com) lOMoARcPSD|39474592 drag on.
They are causing European manufacturers to struggle because of a lack of supplies. Including Germany, this is also the reason we should export cooking oil to this potential country. The conflict in Ukraine has shaken the global sunflower oil market, pushing up prices for other vegetable oils. War broke out, supply was cut off, and production completely stopped.
Finding another source is also not easy. Americas Europe has also suffered from additional weather uncertainties, adding to fears of shortages. The drought has reduced the size of soybean harvests in South America, the world's largest supplier of soybeans. The lack in Canada has diminished rapeseed production, leaving little available supply.
This is also the reason that pushed the price of rapeseed oil futures delivery in early May to the highest level in trading history. Company CALOFIC Figure 2. 1: Logo of CALOFIC History of formation and development CALOFIC Company TNHH (CALOFIC) is a joint venture between Vietnam Vegetable Oils Industry Corporation (VOCARIMEX) and Wilmar International Group, Singapore. 3 Downloaded by nhim nhim (nhimbien3@gmail.com) lOMoARcPSD|39474592 Founded in 1996 with an initial capital of $22 million and a total investment of $261 million to date, CALOFIC is one of the leading joint venture companies that have laid the foundation for the manufacturing and vegetable oil processing in Vietnam.
Currently, CALOFIC has 2 production factories located in Quang Ninh province, Ho Chi Minh City. Ho Chi Minh City with a total capacity of up to 2,300 tons/day and night, with two representative offices in Hanoi and Ho Chi Minh City. In Ho Chi Minh City, the total number of employees nationwide increased to 1,000 people. Since its establishment until now, CALOFIC has continuously promoted product quality, invested in building and íntalled modern machinery and equipment, and automated the production of high-quality cooking oil products to serve customers.
domestic consumption and export needs. Business areas: In addition to consumer products, CALOFIC also offers specialized oils and fats, packaged in a variety of different sizes, for the food processing industries, pharmaceutical and other industries Mission: to enhance customer and consumer satisfaction through providing world-class quality products at optimal costs. Core values: - Integrity: Trust - exemplary loyalty, lasting values. - Excellence: Continuous efforts, an outstanding success.
- Passion: Passion for dedication and global progress. - Creativity: Creative innovation, reaching for success. - Cooperation: Agree to cooperate, and conquer the peak. - Safety: Safe and secure work.
Achievement: Thanks to constant efforts, CALOFIC's products are very popular with customers and recognized by government agencies, ministries and prestigious organizations at home and abroad through many certificates of merit and awards such 4 Downloaded by nhim nhim (nhimbien3@gmail.com) lOMoARcPSD|39474592 as the Third Class Labor Medal awarded by the President; Emulation flag, Certificate of the value of the Prime Minister; Emulation flag, Certificate of Merit from the Ministry of Industry and Trade, Golden Dragon Award, Top 10 prestigious companies in the food and beverage industry in Vietnam and many awards for brands such as Neptune, Simply… such as Top 50 Top Brands Vietnam, Top 20 Vietnamese Gold Products… 2. Product overview Product Features - Simply Pure Rice Bran Oil: + 100% pure from rice bran + Rich in Gamma Oryzanol & Phytosterols, helping to repel lousy cholesterol and protect heart health - Simply Pure Soybean Oil: + Rich in Omega 3-6-9 polyunsaturated fats. + Rich in Vitamin E & Natural Phytosterols. + Helps protect heart health - Simply Pure Sunflower Oil: + Rich in natural Vitamin E.
+ Rich in unsaturated fats (> 85%) + Helps slow down the aging process. + Protect heart health. - Simply Pure Canola Oil: + Rich in unsaturated fats (>88%). + Protect heart health.
Table of exported cooking oil products Table 2. 1: Table of exported cooking oil products 5 Downloaded by nhim nhim (nhimbien3@gmail.com) lOMoARcPSD|39474592 Product Type 1L Type 2L Type 5L Type 400ML Simply Pure Rice Bran Oil Simply Pure Soybean Oil Simply Pure Sunflower Oil Simply Pure Canola Oil 6 Downloaded by nhim nhim (nhimbien3@gmail. Business situation It is estimated that the annual revenue of the cooking oil market in Vietnam is about VND 30,000 billion, and the growth rate is still considerable because the average consumption is still low. That attraction makes domestic and foreign businesses increase investment.
According to the Ministry of Industry and Trade, the consumption of cooking oil per capita/year in Vietnam is currently about 9-10 kg, lower than the WHO recommended level of 13. However, this consumption is forecasted to increase to about 18.5-19 kg/person/year by 2025. The situation of domestic enterprises accelerated. Currently, the market has nearly 40 enterprises producing and trading cooking oil.
Palm oil is the main vegetable oil product, accounting for 70% of the market share, soybean oil for 23%, and other vegetable oils for 7%. INTERNAL ENVIRONMENT ANALYSIS (CALOFIC) 3. Supplier CALOFIC selects input materials from rice bran, fresh sunflower seeds, and soybeans of American origin and produces them by modern European refining technology, strictly following international standards on food safety and hygiene: FSSC 22000, HACCP and AIB. Therefore, we are committed to bringing global quality standard products to ensure the health of users CALOFIC continuously invests in building and installing modern machinery and equipment, automating the production of high-quality cooking oil products to serve domestic consumption and export demand.