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beef market with 42% of the market share followed by America with 30,7%. Joining this imported beef dominating market, Big C must be carefully in their first steps.b. Review of competitionAs stated before, once joining in the Vietnamese beef market, Vietnamese Wagyu Beef will be facing with a lot of...

Description

I.

Introduction

This study has been constructed fulfilling two purposes: 1. Firstly, the research offers a marketing plan for a product called “Vietnamese Wagyu Beef”. The marketing plan are developed with key elements for Big C to accomplish its marketing objectives. 2. Secondly, the study also provides a media plan for “Vietnamese Wagyu Beef” that suggested media activities that matches with budgetary requirements and achieve the objectives of marketing campaign. II.

Task 1: Marketing plan

1. Executive Summary Big C is ready to publish a new product line called “Vietnamese Wagyu Beef” under the name of a sub-brand “LxFoods”. The reason for this is the slogan of Big C is “Cheap price for everyone” means that the company will do everything in its best to provide cheapest price along with the best quality product to get the most satisfaction from their customers. Therefore, it is best for the organization to create a subsidiary to penetrate in the luxury food market. The sub-brand company has a mission to deliver culinary elites from all over the world to the Vietnamese table with the cheapest price they can get. To execute this mission, Big C – under the name of LxFoods, has created a marketing plan with two purposes in the first year of launching the new product. The first six months is to raise awareness of the new firm and product to create a giant bubble of expectations and curiosity. Another six months is to push sales revenue intensively to recover from all the costs of production and marketing in a whole year. 2. Analysis of recent marketing situation a. Market description The beef market of Vietnam is now dominated with more than 70% of the market are imported. Australia is the number one leading country in importing beef into Vietnamese

beef market with 42% of the market share followed by America with 30,7%. Joining this imported beef dominating market, Big C must be carefully in their first steps. b. Review of competition As stated before, once joining in the Vietnamese beef market, Vietnamese Wagyu Beef will be facing with a lot of competitors in and especially outside Vietnam. In the luxury beef segment, the company will be in competition with numerous of high-end beef distributor namely ClassicDeli, BioPlanet, Mart Food, Fohlah Beef, Meat Deli, and smaller retailer like Thitbowagyu, Sieuthithitbo and so on. Furthermore, Vietnamese Wagyu Beef also has to compete with American or Australian imported beef and local traditional Vietnamese beef. Despite of intensive competition of beef market, LxFoods believes that their Vietnamese Wagyu Beef product can withstand and fight back to conquer the market because of its breakthrough with a new domestic VietnameseJapanese cow breed. c. Review of distribution First of all, Big C must sell these products in their own chain of supermarket for residents who wants to try the finest piece of beef to indulge themselves for achieving big goals in their life. Then, they should try to sell their beef to luxury steak house that serve the upper-class like Stella Steakhouse in the northern, El Gaucho in the southern. Lastly, Big C can distribute the beef through online media for people who want to taste a high-end meat on big holidays but are too far from their stores and have too little money to experience Vietnamese Wagyu Beef served in a fancy restaurant. 3. Analysis of threats and opportunities In this section, the research will analyze threats and opportunities that LxFoods might be facing with by the PESTLE method. In the political and legal aspects, LxFoods will get a massive advantage related to government taxing policies. According to the Value Added Tax (VAT) published by Vietnamese Government in 2008 and edited in 2014, the products are cattle breed will not be applied with tax. Therefore, while imported beef are

taxed, LxFoods will not be paying any money. On the other hand, LxFoods has to paid more for their labor cost. High-end imported beef takes a several numbers of people to get the work done. Meanwhile, LxFoods must spend money to fund a whole farm with strict Japanese regulation to provide the best service for Vietnamese-Japanese breed cows. Regarding the social issues, Vietnamese Wagyu Beef is considered as beef for the rich. Thus, majority of the social which in the middle class rarely buy the product. They would rather buy imported American or Australia beef for better taste than local beef but more affordable than a Wagyu piece of meat. In terms of technology, social media is the bridge between LxFoods and its clients. The flourish of online media has helped online shopping became more popular than ever. Taking advantage of these, LxFoods should be focusing on distributing their product through “Go! & Big C” – their own online shopping app available on AppStore and Google Play for customers who are too far from the local Big C supermarkets. Finally, environment acted as a dangerous threat to the company. It is easy for regular famers to raise local purebred Vietnamese cow but farmers who take care of Vietnamese-Japanese breed must be careful and alerted when growing this special species. The breed is vulnerable to tropical and harshly climate like Vietnam. They need unique treatment like heating lamp when the weather turns cold and cannot withstand freezing cold of the north and extremely hot of the south. Therefore, beside Japanese strict regulation of raising Wagyu cows, half-blood breed of this specie takes a lot more effort to be taken care of. 4. Marketing objectives a. Growth in revenue Revenue should be raised by at least 50% and purchased by targeted customers aged from 41 to 56 in the end of second quarter (30th June 2022) with the plan of releasing the new product. b. Raise brand awareness

The number of customers should growth by 40% in the end of the first year after launching the new product. This goal can be measure through membership cards that are registered before the date of 1st January 2023. 5. Marketing strategy a. Segmentation LxFoods uses a combination of two different techniques of market segmentation which are demographic segmentation and geographic segmentation to give out the best result when segmenting consumer markets. Firstly, it divided the consumer market using the average income into three market segments. The first one is group of people with low income, second is people with middle income and the last one is the group of people with high income. LxFoods chose to serve group number two and number three but giving more attention to the latter. The reason for this choice is mainly by the price of “Vietnamese Wagyu Beef”. It is considered as a relatively expensive meat compared to the beef market. Therefore, the group number two can only buy this product to celebrate holidays or special events of their lives. On the other side, the pricing of this product with its quality is generally cheaper than imported purebred Wagyu beef from Japan. Thus, the third group with high income in the society can consider this product as an alternative for the true Wagyu beef with the nearly same taste and marbling like the new product of LxFoods. Hence, the third group could potentially become daily consumer of “Vietnamese Wagyu Beef” in the future. Secondly, the company also uses another market segmentation method which is geographic segmentation. From those data collected in the first market segmentation technique, LxFoods acknowledges that the majority of the second group and third group divided by income are living in big, crowded cities in Vietnam. Because of that, LxFoods should focus on serving big cities such as Da Nang, Hai Phong, Hue, Nha Trang, Long Xuyen, Can Tho, Thai Nguyen, Ninh Hoa, Rach Gia. But there are two cities that LxFoods should focusing the main resources of the organization to serve and distribute which are Ho Chi Minh City and the capital city of

Vietnam – Hanoi. These two cities are places that most of the clients of LxFoods’s new product lives in. Therefore, they need exceptional attention. b. Targeting LxFoods chooses to use concentrated marketing and focusing on a few market segments that the company will serve which is middle-class and upper-class people. By choosing this, LxFoods goes after a goal to get a larger market share in the luxury beef market. Also, the company absorbs knowledge about the consumer needs to strengthen the firm’s marketing position. Therefore, they will market more effectively by setting out price, adjusting their product. Furthermore, they can market more efficiently by targeting the company’s new product, channels and programs of communications that fits for the only customers they serve best. c. Positioning To middle-class and upper-class people who wants the most delicious piece of beef with a most reasonable price, “Vietnamese Wagyu Beef” is the product that will certainly provide the most luxurious beefsteak experience they can ever remember.

Looking at the chart, it is clearly that “Vietnamese Wagyu Beef” offers a highly marbled beef with a much more affordable price compared to Wagyu beef or Kobe beef. This is also a massive completive advantage for LxFoods. All culinary enthusiastic knows that the more marbled the beef, the juicier and buttery the beef is. Those two features also decide whether the beef taste good or bad. Therefore, Vietnamese no longer has reason to spend a large amount of money on a Japanese-originated slice of beef if there is a same quality of meat with much cheaper price on the market. d. Product Firstly, Big C breaks down the “Vietnamese Wagyu Beef” into three levels with the following order: core customer value, actual product, and augmented product. The core consumer value is also known as what need of the customer will the product satisfy. The new beef product of Big C offers its buyers the want of tasting one of the best slices of beef in the market with reasonable price. Furthermore, the customers buying the product

can have the feeling of being in a special club, it is a way to show their social status to the world. Moving on to the actual product, Big C displays luxury beef with stunning marbled and buttery as its remarkable features. Each slice of beef is bagged in an air vacuumed plastic bag then frozen in the freezer of -18 Celsius degree. This keeps the raw meat to be fresh up to 12 months. On the surface of the plastic bag, there must be details about the product’s name, produced by Big C, expired date, instruction of keeping the beef fresh after buying. Moreover, the plastic bags are printed with the information to helps customer to locate which is the part of the cow they are purchasing. For example, a ribeye slice package must be printed with the Figure 1.

(Figure 1). Last factor contributes to the actual product is the brand name. Big C is known for its cheap price for everyone. Therefore, they should formulate a new sub-brand in order to walks their first steps into the luxury food market. The name of sub-brand will be “LxFoods”. Lx is an abbreviation for luxury, this makes the brand goes with what they really sell – expensive price food products. The third level of product is augmented product which consist of four different elements: delivery and credits, warranty, product support and after-sale service. LxFoods deliveries nation-wide with the product is kept in the freezer all the time until it meets its clients, offering the best quality after a long trip. Three other aspects are combined with the return policies if the product by any chance

does not keep the promised quality or it smells, does not fresh before the expired date can be returned to the company for properly disposure and clients will have refunds of the purchase. e. Price When first releasing the new product, the firm should apply the market-skimming pricing. This technique is to set out rather high price for “Vietnamese Wagyu Beef” to see how much is the maximum revenues that customers willingly to pay the price. One notice that the price that are planned to be set out must lower than the price of “Purebred Wagyu Beef” or the company will lose its competitive advantage. This method helps LxFoods to achieve more profitable sales but has lower sales volume. Also, this can make a standing position for the product in the luxury beef market. After the product are stabled in the market for a year, LxFoods uses customer-value pricing method as the way to set out prices for their products. The reason that they choose this technique is LxFoods understands what does the customer needs which are explained in the section a. Product and they answer to that by offering “Vietnamese Wagyu Beef” to the market. Then, they set the target price that they think that the clients will response to it positively which is higher than the regular beef market but lower compared to the luxury beef market. Next, LxFoods limits the costs that can be occurred in producing the product. Finally, the company construct the product to deliver wanted value in the targeted price. f. Place LxFoods has a multichannel distribution system to distribute their products.

(Modified from FIGURE 12.4 from Kotler, 2017, p.366). As seen from the modified figure, LxFoods has three main segments of customers. Consumer segment number one is the group of people who are far from the local retailer of LxFoods and will be receiving products directly from LxFoods through online media in this case is mobile app “Go! & Big C”. Consumer segment number two is groups of people who live near a supermarket of Big C or retail supermarket that LxFoods allows to distribute their product which include VinMart, Co.opmart, AEON, Mega Market, LOTTE Mart, Lanchi Mart. Lastly, LxFoods delivers directly to business segment which consist of famous restaurants and steakhouses located mostly in urban areas. g. Promotion LxFoods will hire KOLs and people who have influences to promote for the new product. In addition, the firm will hire four different people in different occupations to promote the product every quarter in the following order: Christine Ha (Chef), Luke Nguyen (Chef),

Xemesis (Game Streamer), Benjamin Tran (Lifestyle Youtuber). Promotion will be posted on social platform like Facebook and Instagram along with the company’s official website. h. Process The service blueprint of LxFoods with client’s steps and how the employees will be involved is demonstrated in the next figure.

There are seven steps of the customers in the service blueprint and frontline staffs are personally involved. This blueprint is performed in the Big C supermarket all over the nation. It is important that all the employees of Big C keep a professional attitude when greeting the clients. Securities should be friendly, willingly to help customer and show them where to park vehicle to create positive first impression about the firm. Staffs must be informative and consult customers to choose the products. After the customer

checking out, employees will take heavy bags and help carry them to client’s vehicle. Lastly, securities must thank the customer and invite them to go back next time. i. People All employees of Big C supermarket must be friendly, enthusiasm and helpful. All staffs of the company should be well informed of every product that are sold in the stores. Furthermore, cashier and sales employees must know to how to perform up-selling and cross-selling technique effectively. j. Physical evidence LxFoods when distributing products in every supermarket requires a different section that separate their products from others. The designing must be blended between black and red color to stimulate their eyes to urge them buy the product. In the private section, it is best to play classic music for the customer because that type of music can make clients to feel more relax and is the type of music that the rich enjoy. 6. Action programs The action programs of LxFoods in the first year is divided into four phases, each phase is one quarter in the year 2022. The timeline of activities is portrayed in the following figure. ASSIGNED TO

START

END

Run Facebook Ads

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1/1/22

1/31/22

Run Intagram Ads

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1/1/22

1/31/22

Run Online Paper Ads

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2/1/22

2/28/22

Run Offline Ads

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3/1/22

3/31/22

TASK

Phase 1: Setup

Phase 2: First Introduction

Invite Famous Chefs

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4/1/22

5/1/22

Invite Famous YouTubers

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5/2/22

6/1/22

Create TikTok Trend

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5/2/22

5/31/22

Giving Out Limited Tickets

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6/1/22

6/25/22

Open Exhibition

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6/30/22

6/30/22

Hire mrnigelng (Uncle Roger)

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7/2/22

7/15/22

Hire Xemesis

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7/16/22

8/1/22

Hire Quang Tran

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8/23/22

9/30/22

Hire Benjamin Tran

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8/23/22

9/30/22

Sponsor Cooking Competition

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10/1/22

12/31/22

Giving Sales Discounts

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12/20/22

12/25/22

Phase 3: Reminding

Phase 4: Break-even

(Gantt Chart, https://docs.google.com/spreadsheets/d/1g_ggu4E1ST0KGgy4iHCY9mrDyZPcDesU/edi t?usp=sharing&ouid=101700491203879393170&rtpof=true&sd=true) 7. Budgets

(The table made in Excel does not fit in Word. So, I have to convert it into a picture) 8. Controls LxFoods has set the goal to break-even the cost with 8,000,000,000VND of revenue in the first year. With the average retail price of 3,000,000VND per unit, the company theoretically need to sell 2666 units. Big C’s storage and warehouse will control the product tightly and stick to the Japanese regulation when preserving and transporting Wagyu Beef. This helps the product to always in the best quality. LxFoods pays closely

attention to brand awareness, customer satisfaction and brand image. In case any problem or issues show up, the company will be able to react quicky and resolve the situation. The Return On Investment (ROI) of LxFoods in the year 2022 is 0,0025 (Appendix A). Although the ROI of the company is not high, it is expected because the firm can get their invested money back in just 6 months of selling the products while they have to start the advertising campaign two quarters earlier. If the result of the equation is lower than 0, the marketing and sales department should be working harder to address the company the firm to achieve its objectives. Otherwise, if the result is higher than 0, the company is going on the right path and keep up with what they are doing. III.

Task 2: Media plan

1. Media plan objectives a. Reaching out The total traffic counted by likes and shares on social media like Facebook and Instagram should have raised by 50% in the end of the first 3 months. b. Increase in ROI rate The media plan expected to boost ROI from 0 (calculated in Controls) to 0.5 in the first quarter (March 2022). 2. Target audience Mostly Generation X are targeted as priority customers of LxFoods who aged range from 41-56 years old. These people are mostly employed and have a sustainable financial background. Therefore, they would be more likely to buy high-end products as achievement to indulge themselves or show off their social status. Their understanding of impermanence produces a need for instant gratification (1999, Hoffrichter). 3. Communicating channels A combination of Paid, Owned and Earned media and most of channels are online platforms. Research shows that managers should produce ...