UNIVERSITY OF FINANCE - MARKETING

INTERNATIONAL MARKETING PLAN

SUBJECT: INTERNATIONAL MARKETING

CLASS: THURSDAY AFTERNOON
TEACHER: MASTER NGUYEN MINH TRIET

Implementation Team
Đỗ Ngọc Tuấn Anh 1921005341
Nguyễn Thảo Sương 1921005637
Nguyễn Minh Thơ 1921005674
Bùi Thị Thanh Tuyền 1921005752

Ho Chi Minh City in 2021

 TABLE OF CONTENTS

LIST OF TABLES AND FIGURES

1. EXECUTIVE SUMMARY ........................................................................................................ 1
2. SITUATIONAL ANALYSIS ..................................................................................................... 1
2.1 Company Analysis ............................................................................................................... 1
2.2 Organization’s Assets and Skills ........................................................................................ 4
2.3 Nature of Demand ............................................................................................................... 4
3. ANALYSIS OF THE EXTERNAL ENVIRONMENT ........................................................... 5
3.1 Macro environment (pestel) ............................................................................................... 5
Political ................................................................................................................................. 5
Economic .............................................................................................................................. 6
Sociocultural ........................................................................................................................ 7
Technological ....................................................................................................................... 8
Environmental ..................................................................................................................... 8
Legal ..................................................................................................................................... 9
Regulatory Environment (Present and anticipated) ...................................................... 10
Demographic Environment (Data and Identification of Trends) ................................. 12
Physical Environment (Infrastructure Indicators) ........................................................ 13
3.2 Micro environment (Porter's Five Forces) ...................................................................... 13
Competitive Rivalry .......................................................................................................... 13
Threat of new entrants ...................................................................................................... 14
Bargaining power of suppliers ......................................................................................... 14
Bargaining power of buyers ............................................................................................. 15
Threat of substitute products ........................................................................................... 15
4. ANALYSIS OF THE INTERNAL ENVIRONMENT .......................................................... 15
System ................................................................................................................................. 16
Human Resources .............................................................................................................. 17
Technological Resources ................................................................................................... 17
Corporate Culture ............................................................................................................. 17
5. SWOT ........................................................................................................................................ 17
6. TARGET MARKET DESCRIPTION (STP)......................................................................... 18
6.1 Target Markets Identification and Segmentation Strategy ........................................... 18
6.2 Market Positioning ............................................................................................................ 19
6.3 Market Entry Strategy ...................................................................................................... 20
7. INTERNATIONAL MARKETING GOALS AND OBJECTIVES .................................... 20
Marketing Objectives ........................................................................................................... 21
Financial Objectives .............................................................................................................. 21
8. MARKETING PROGRAM ..................................................................................................... 22
8.2 Price strategy structure..................................................................................................... 24
8.3 Place (Distribution) Strategy ............................................................................................ 24
9. EVALUATION, MEASUREMENT AND CONTROL ........................................................ 27
9.1 Implementation and control ............................................................................................. 27
9.2 Problems anticipated after entry ..................................................................................... 28
10. LIST OF REFERENCES
APPENDIX 1
APPENDIX 2
 LIST OF TABLES AND FIGURES

Table 1: Import and export situation between Vietnam and the US in the first 4 months of 2020 ..... 3
Table 2: Competitors abroad .............................................................................................................. 14
Table 3: Rice prices of competitors ................................................................................................... 24
Table 4: Marketing plan for the fisrt year .......................................................................................... 27
Figure 1: Organic rice .......................................................................................................................... 1
Figure 2: The United States of America (U.S.A. or USA) .................................................................. 3
Figure 3: Organic certification (Source: http://vienphugreenfarm.com/) ............................................ 4
Figure 4: Excess savings is estimated by difference between 2020 monthly savings and 2019
personal savings average. (Source: https://immica.org/) ..................................................................... 6
Figure 5: Most Commonly Spoken Language Other than English or Spanish
(Source:https://vnexpress.net/) ............................................................................................................. 7
Figure 6: Significant Events for January 2014 (Source: https://ibid.vn/) ............................................ 9
Figure 7: Harmonized Tariff Schedule of the US (2021) (Source: https://hts.usitc.gov/ ) ................ 10
Figure 8: The current population of the United States of America (Source: https://en.wikipedia.org/)
............................................................................................................................................................ 12
Figure 9: Hoasuafoods Market & Bistro ............................................................................................ 16
Figure 10: Positioning map ................................................................................................................ 20
Figure 11: Organic ST24 rice............................................................................................................. 22
Figure 12: Distribution system (Source: https://www.brandsvietnam.com/) .................................... 25
1. EXECUTIVE SUMMARY
The United States market is regarded as one of the most promising for both local and foreign
enterprises. The size of the economy is large, so even though the United States has diverse and rich
resources, it cannot meet the needs of the economy. Besides, the population size is high, so the
quantity of imported consumer goods is high. Rice is one of the most promising and rapidly expanding
goods in the USA, with several rival brands. Our team will investigate and develop Organic ST24
rice products of _Vien Phu Company in the USA market over the next 5 years under the theme
"INTERNATIONAL MARKETING PLAN FOR _ORGANIC ST24 RICE IN THE USA." At the
same time, it addresses concerns concerning the product's market potential, product supply,
competition, the political climate, and USA 's advantageous qualities for developing _rice of the
company and difficulties that may arise while entering the market. The study consists of the following
main parts: Situational analysis, Analysis of the Internal Environment, Analysis of the External
Environment, Target market description, International Marketing Goals and Objectives, Marketing
Program, Evaluation, Measurement and Control.

2. SITUATIONAL ANALYSIS
2.1 Company Analysis
• Main products

Figure 1: Organic rice

Organic ST24 Rice of Vien Phu Trading & Production One Member Co., Ltd

Head office: 119 Pasteur, Ward 6, District 3, HCMC

ORGANIC ST24 RICE - USA 1

Farm and factory: An Phu Hamlet, Khanh An Commune, U Minh Ha District, Ca Mau Province

Scope activities: Cultivating, producing and supplying the organic food chain HoaSuaFoods

HoaSuaFoods brand is a trademark for all organic products produced by Vien Phu Trading &
Production One Member Co., Ltd.

HoaSuaFoods organic product chain includes

- HoaSuaFoods organic rice of all kinds

- HoaSuaFoods organic vegetables of all kinds
- HoaSuaFoods organic seafood of all kinds
- Home-made products HoaSuaFoods

Specialty rice ST24 has been voted as delicious rice, specifically:

- Won the first prize of Delicious Rice Contest 2017

- Won Top 3 "World's Delicious Rice 2017" at MACAU
• Mission

Producing and supplying organic foods for the purpose of ensuring the health of people directly
involved in farming as well as providing safe products with high nutritional value to the community.

• Strategic vision

Develop and produce environmentally friendly agriculture, reducing climate change and greenhouse
effect

Creating a product chain of equal quality to products in advanced countries and internationally
certified

Research and develop to create product lines that ensure no residues of harmful chemicals and have
medicinal ingredients to support the treatment of chronic diseases.

• Target country

Area: 9,629,091 km2

Population: 332,611,556 people (2021)

About American agriculture: - America also has a very developed agriculture. Thanks to its large
territorial area and many favorable climatic zones, biotechnology has developed high applicability.
The United States is also the largest importer of agricultural products in the world. The US
government annually won over 10 billion USD in funding for agricultural development

ORGANIC ST24 RICE - USA 2

 Figure 2: The United States of America (U.S.A. or USA)

Import and export situation between Vietnam and the US in the first 4 months of 2020: According to
statistics of the General Department of Customs, the export turnover of Vietnamese goods to the US
market in April 2020 reached 4.2 billion USD.

Table 1: Import and export situation between Vietnam and the US in the first 4 months of
2020

Product Price (USD)

Tea 541.364

Pepper 14.344.187

Vegetables 13.431.995

Soybean 18.578.903

Wheat 3.087.040

Rice 308.648

Rice Product Consumption by US Consumers: The US supplies about 12% of world commercial rice.
Mostly domestic use. Nearly one in five American adults eat at least half a serving of white or brown
rice each day.

ORGANIC ST24 RICE - USA 3

Growing demand for gluten-free foods, convenience, growing population and continued introduction
of new rice products have also contributed to the growth in domestic use.

ð Therefore, the US is the ideal country for the company to export Organic ST24 Rice.
2.2 Organization’s Assets and Skills

Organic certification according to European standards (EU Certificate)

Organic certification according to American standards (USDA Certificate)

100% certified organic products

Complying with strict rules and standards of organic farming methods

Figure 3: Organic certification (Source: http://vienphugreenfarm.com/)

2.3 Nature of Demand

Rice is the staple food of a large number of world consumers and it is indicating the market of organic
rice is expected to go high in the future.The Global Organic Rice market was valued at USD 1918
million in 2020 and it is expected to reach USD 3287.2 million by the end of 2027, growing at a
CAGR of 8.0% during 2021-2027.From 1918 million in 2020 USD, The "Organic Rice Market" 2021
will register a 8.0% CAGR in terms of revenue. Over the next five years, the global Market Size will
reach 3287.2 Million USD by 2026, increasing demand for Organic Rice from various end-user
industries including Direct Edible, Deep Processing is expected to drive the consumption of Organic
Rice Market during the forecast period.

ORGANIC ST24 RICE - USA 4

 2.4 Size and Extent of Demand

Vietnamese rice has been exported to more than 150 nations and territories around the world, with its
market having been expanded to the American and Middle East countries.

Viet Nam’s annual rice export volume accounts for about 15% of the world’s total figure. In addition
to the traditional markets, the country’s high-quality white rice and fragrant rice products have
initially penetrated into the fastidious markets, helping the Vietnamese rice trademark to step by step
set its “foothold” widespread across the world.

In 2020, Vietnam exported 6.15 million tons of rice for US$3.07 billion, down 3.5% in quantity but
up 9.3% in value against last year.

Vietnam is set to remain the world’s second largest rice exporter in 2021 with 6.4 million tons, an
increase of 233,000 tons compared to last year.

• Customer trend

People in the world in general and the US in particular are willing to pay for green products.

To cope with obesity, stroke is increasing in the US, demand for using Organic food in general will
have a significant increase

3. ANALYSIS OF THE EXTERNAL ENVIRONMENT

3.1 Macro environment (pestel)
• Political

The US is a high-income market, with great demand but also challenges: The US continues to increase
trade remedies, mainly anti-dumping duties, and strengthens strict quality standards… This will have
a negative impact on the export of large groups of goods including organic rice

The new US tax reform policy focuses on reducing taxes for manufacturing enterprises in the US.
Specifically, corporate income tax will be reduced from 35% to 21%, and future profits of US
companies from doing business abroad will be largely tax-free or taxed at the maximum rate of 10.5%

The reduction of corporate income tax from 35% to 21% is extremely beneficial for US companies.
They can use this finance to increase equity, increase wages for employees, increase dividends. When
the profit level is better, domestic spending in the US will increase, the demand for importing goods
from other countries will increase, including Vietnam. But it can be said that the policy of the US
President is unpredictable. The trend is still to "tighten" imported goods, prioritizing the "America
first" policy, which focuses on domestic manufacturing enterprises, minimizing imports, increasing

ORGANIC ST24 RICE - USA 5

exports... And so on, there will be a number of new policies attached to tax reform, detrimental to
countries exporting goods to the US.

• Economic

The US economy is the largest economy in the world by gross domestic product (GDP) and the
second largest by purchasing power parity.

The Bank of America (BofA) research team forecasts US gross domestic product to grow 7% in 2021,
higher than the previous estimate of 6.5%.

Figure 4: Excess savings is estimated by difference between 2020 monthly savings and 2019
personal savings average. (Source: https://immica.org/)

The US agriculture also focuses on developing a number of essential commodities, both for domestic
supply and for export to other countries. However, the United States also imports many other items,
including Vietnamese rice. Rice is an essential commodity, so most people use it every day, rice
consumption is high along with high GDP per capita, rice quality also meets the requirements of
consumers, so the selling price is also high. very beneficial for the company.

After a period of strong development, now the US economy due to the great influence of the Covid-
19 pandemic, the growth rate has been suddenly reduced and rampant inflation has ended its
continuous development. of this economy. This has caused a lot of impact on the import and export
of the US in particular and many other countries in general, including Vietnam. The company's rice
export will also face many difficulties, causing the price of rice to drop, the shipping price to increase
many times, affecting the revenue and profit of the business.

ORGANIC ST24 RICE - USA 6

 • Sociocultural

America is a multicultural country because this is a country of immigrants. American culture is

shaped by different cultures such as indigenous cultures, Latin American cultures, African and Asian
cultures.

In the US, English is the most commonly spoken language. Second is Spanish, followed by Chinese,
Tagalog and Vietnamese.

Figure 5: Most Commonly Spoken Language Other than English or Spanish

(Source:https://vnexpress.net/)
Social factors have a significant influence on business sales and profits. Following today's trend,
organic food has become popular and quickly chosen for daily nutrition. According to statistics, in
the US market, the consumption of organic food has increased by more than 150% since 2005 and is
being distributed in more than 20,000 food stores nationwide. So this is a good sign for businesses
when producing organic rice and exporting it to this market.

Besides, most consumers in the US market are aiming for environmental protection, prioritizing the
use of products with friendly farming and environmental protection processes. Currently, the
increasing environmental pollution in the United States in particular and the world in general along
with technological advances has forced the company to apply innovative waste management and rice
bag recycling methods. Recycling has almost become the norm of business in the United States.

ORGANIC ST24 RICE - USA 7

As a result, buyers are increasingly inclined to use green/environmentally friendly products, while
the company's rice is a product grown and cultivated according to a completely organic process,
reducing impact of the use of pesticides on the soil environment, so the company's export to a new
market can be seen as an opportunity and apply green business methods to gain trust. ideas of
customers, governments and other stakeholders. Prioritize and focus on marketing the eco-friendly
nature of the company's rice products instead of conventional value propositions

• Technological

Technological background is very developed, along with modern infrastructure to support efficient
distribution of goods, helping to reduce a part of labor costs. The cooperation of international non-
governmental organizations (IRRI International Rice Institute), the main sponsor is the United States,
has helped the Vietnamese rice industry in general and the company in particular to invest heavily in
technology, cultivation techniques. At the same time, being a modern technology helps the rice to be
preserved for a longer time, ensuring that the rice grain still retains the same nutritional content as
the original when kept in a different climate and climate than compared to the previous one. planting
place. And will help the company's product offering, introduction, transaction with customers,
importers, intermediary agents to distribute products of the company quickly and achieve high
efficiency.

With modern information technology, everyone uses social media networks, which will help the
company effectively apply innovative marketing techniques to enhance cooperation with customers.
As the use of social media has become ubiquitous in the modern business environment, a company
can take advantage of the opportunities offered by social media marketing to improve business
performance. Tech trends can be used to start creative social media campaigns to grow your brand
online as well.

• Environmental

With a large geographical area, the climate of the United States has all climate types: temperate
climate in most regions, tropical climate in some southern regions, polar climate in Alaska, Atlantic
Ocean. The plains west of the longitude 100 degrees and in the Great Basin have arid climates, desert
climates in the Southwest, Mediterranean climates in coastal California.

ORGANIC ST24 RICE - USA 8

 Figure 6: Significant Events for January 2014 (Source: https://ibid.vn/)
The majority of Vietnamese people move to the US to settle down, concentrating in the southern
regions (especially California) because the area has relatively cool weather and less cold winters than
other regions, and here there is a distinct seasonality. Therefore, the consumption trend here is to use
rice and other foods in Vietnam. In Northeast America, there are harsh winters and lots of snow, so
people here will tend to use warm foods such as wine, beer and canned foods to move less. Therefore,
this is quite a difficult thing for businesses when rice will not be popular in some regions and states,
so it will affect sales and profits of businesses.

• Legal

Laws to protect workers (discrimination and health and safety): when entering the US market,
companies must comply with worker health and safety laws. Providing a safe working environment
for the workforce is the moral and ethical obligation of product importing companies in general and
Vien Phu company in particular. Similarly, anti-discrimination laws (such as equal employment
opportunities) should be carefully studied when developing human resource practices.

Consumer protection law

Data protection has become an important issue due to consumer privacy and security concerns. When
entering the market, the company needs to study data protection regulations to protect customer data,

ORGANIC ST24 RICE - USA 9

protect consumers from deceptive marketing claims. The company must consider these factors to
ensure compliance with consumer protection laws.

• Regulatory Environment (Present and anticipated)

Figure 7: Harmonized Tariff Schedule of the US (2021) (Source: https://hts.usitc.gov/ )

- Prior Notice of Imported Foods

The Public Health Security and Bioterrorism Preparedness and Response Act of 2002 (the
Bioterrorism Act) directs the Food and Drug Administration (FDA), as the food regulatory agency of
the Department of Health and Human Services, to take additional steps to protect the public from a
threatened or actual terrorist attack on the U.S. food supply and other food-related emergencies.

Along with other provisions, the Act requires that FDA receive prior notification of food, including
animal feed that is imported or offered for import into the United States. Advance notice of import
shipments allows FDA, with the support of the U.S. Customs and Border Protection (CBP), to target
import inspections more effectively and help protect that nation's food supply against terrorist acts
and other public health emergencies.

- Importing organic products into the US

ORGANIC ST24 RICE - USA 10

The National Organic Program (NOP), part of USDA’s Agricultural Marketing Service (AMS),
establishes international organic import and export policies to facilitate trade and expand market
opportunities for certified organic farms and businesses around the world.

Imported organic products must be certified to one of the following standards to be sold in the United
States:

The USDA organic regulations

USDA authorizes organizations around the world to certify farms and businesses to the USDA
organic regulations.

An authorized international standard

The U.S. has established organic trade arrangements with Canada, the European Union, Japan,
Republic of Korea and Switzerland. These arrangements help food producers located in the U.S.
import organic ingredients that are not produced within the U.S.

Terms of the Arrangement. To trade products under the partnership, certified operations must:

§ Produce livestock, or a product that includes ingredients derived from organic livestock,
without the use of antibiotics.
§ Meet additional specifications for wine.
§ Ship imports with an NOP Import Certificate and organic certificate completed by an EU-
authorized certification body.

Excluded Products. Aquatic animals.

Labeling Requirements. Products must comply with the USDA organic labeling requirements. For
packaged retail products, labels or stickers must state, “Certified Organic By (insert name of EU
certification body)” and may display the USDA organic seal and/or the EU organic logo.

ORGANIC ST24 RICE - USA 11

US’s government give supporting policy to local agriculture

Under Title I of the Agricultural Act of 2014, the US Department of Agriculture's Farm Service
Agency (FSA) operates two new crop commodity programs - Price Loss Coverage (PLC) and
Agriculture Risk Coverage (ARC)

• Demographic Environment (Data and Identification of Trends)

The current population of the United States of America is 334,735,155

Figure 8: The current population of the United States of America (Source:

https://en.wikipedia.org/)
The United States population is equivalent to 4.25% of the total world population. The U.S.A. ranks
number 3 in the list of countries (and dependencies) by population. California, New York, Texas are
the three states with the highest Asian population in the US. Currently, 82.5 % of the population of
the U.S.A. is urban (271,365,914 people in 2019)

LIFE EXPECTANCY: 79.11 years (life expectancy at birth, both sexes). The median age in the
United States is 38.3 years.

- Urbanization: The United States has a stable political system and strong legal system
- The United States has a developed education system, so most of the population is educated
and level of education
- GDP per capita $59,928, Ranked 13 in the world (2017 figures)

ORGANIC ST24 RICE - USA 12

 • Physical Environment (Infrastructure Indicators)

Traffic system

- Modern US transportation system with more than 3 million people working. The country
has nearly 150 million cars
- The total length of the railway is 310,000 km.
- Air transport volume accounts for 40% of total world air transport volume
- Over the past decade, the US ranking in the WEF's infrastructure quality rankings has
dropped from 7th to 14th

Transportation System

- Rail transport is the "backbone" of the US economy. In 2014, rail freight contributed $ 274
billion to the US economy.
- List of 10 busiest airports in the US by total cargo throughput
- Listed of 3 US ports for importing rice: Port of Los Angeles, Port of Long Beach and Port of
New York & New Jersey
3.2 Micro environment (Porter's Five Forces)
• Competitive Rivalry

In the country

The rice market is becoming more and more competitive when Vietnam is the leading country in
exporting rice to the international market along with the increasingly high value of exported rice,
bringing more revenue and profit. more profitable for the company than selling domestically. With
the growing development of Vietnam in the world rice export market, rice companies quickly entered
the export business, making businesses have very strong competition. Leading the country in
exporting rice is the Southern food company - Vinafood II, which is the biggest competitor of the
companies in the rice export market ever. Vinafood's rice products are evaluated by consumers in
many foreign markets as meeting quality standards in terms of taste, color, aroma, nutritional content,
and voted by domestic and foreign consumers. Vinafood's rice varieties are mainly rice from the
Mekong Delta region, cultivated according to the process of 3 - 4 crops a year. Vien Phu's next
competitor is Ho Chi Minh City Food Joint Stock Company. Ho Chi Minh City - Foodcosa, exporting
and distributing rice in many countries around the world, Foodcasa has made a great contribution to
the introduction and promotion of delicious and high-quality rice along with Vietnam's unique cuisine
to the international market.

ORGANIC ST24 RICE - USA 13

In another country

Table 2: Competitors abroad

Competitors Strengths Weaknesses

Thai Royal Thailand's scrumptious variety: fragrant, Thai royal rice sold in the market has
Rice pliable, Rice is even and beautiful. been mixed, traders mix delicious rice

Presence in the US market early, so Thai with bad rice so Thai royal rice sold on
royal rice is preferred by many consumers. the market

Lal Qilla Delicious taste with long and slender nuts. High cost compared to many other

Backed by a team of visionaries and long- brands.

term experts, LAL QILLA products have As a traditional Indian rice brand, Lal
gradually gained a reputation and a Qilla has a strange taste compared to
foothold in the US market. many consumers.

• Threat of new entrants

Currently, the area of high-quality rice cultivation in localities is still limited. There are many barriers
for new entrants, therefore, the challenge for sustainable development of the rice industry in the
coming time is not small. Besides the difficulties in production such as application of technological
advances, reducing the amount of pesticides and fertilizers; With the transparency of production
process information with QR code scanning technology, the rice industry also faces other challenges
such as changes in consumption demand, competitive pressure from exporting countries, reduced
self-sufficiency policy. Imports from trading partner countries, rice price fluctuations and climate
change are complicated... So that's why these companies have large economies of scale, helping to
cut production costs. export. These factors influence that new entrants will not be able to compete

• Bargaining power of suppliers

Vietnam's rice products for export are mainly taken from two regions: the Red River Delta and the
Mekong River Delta. The rice source of Vien Phu Company is only taken from the Mekong Delta
and directly buys rice, without intermediaries to ensure the price of the product as well as the
company's revenue and profit.

ORGANIC ST24 RICE - USA 14

The bargaining power of suppliers in the agricultural sector (rice, rice) can be considered quite low.
Although when considering the main inputs that a business that produces and supplies rice to the
market needs, businesses are completely dependent on the output of rice supply. But Vietnam is a
country with the first and second largest rice-producing agriculture in the world, the agricultural land
area accounts for over 27.3 million hectares, equivalent to 80.4% of the total area of Vietnam.
contribute 24% of GDP, employing more than 47% of the nation's workforce. According to the data,
there are many rice suppliers in Vietnam, so the suppliers have little ability to negotiate the price they
have expected.

• Bargaining power of buyers

The bargaining power of buyers in the agricultural sector (rice) is high. Customers can search and
compare prices of different rice brands online such as websites, e-commerce platforms and directly
at stores and supermarkets.

American consumers tend to choose and try new rice varieties that meet the standards of freshness,
flexibility, aroma and affordable prices. Most in the market, rice meets that standard with a high
average price. So there are many choices for customers and they are rarely loyal to a rice supplier or
a certain rice product. Therefore, the customer is in a high position to negotiate the price.

• Threat of substitute products

Rice is a staple food and part of the daily diet of more than half of the world's population. The COVID-
19 pandemic has caused Americans to make major changes to their lives, including the way they eat
and live. According to the IFIC Food and Health Survey, more and more Americans are trying to live
healthier, with 43% of Americans saying they are following a diet. However, rice may not be suitable
for some people with dietary needs. The threat of substitute products is very high. Therefore, it is
possible to choose organic rice alternatives such as Quinoa, wheat, cauliflower, Shirataki rice, barley,
chopped cabbage to make the diet more diverse, still ensure enough nutrition, bring many health
benefits. There are more and more types of food to change the tastes of consumers. Overall, a strong
threat replaces product quality and innovation.

4. ANALYSIS OF THE INTERNAL ENVIRONMENT

• Physical Resources

Vien Phu Green Farm has over 200 hectares of Hoa Sua rice cultivation, 40 hectares of water surface
for fish farming, 40 hectares of vegetables, etc. with a full system of embankments, irrigation canals.

ORGANIC ST24 RICE - USA 15

Here, rice, vegetables and fish are produced according to a closed process from farming to processing
to produce clean and high-quality product chains.

In order to create a reliable destination for customers interested in organic food under the Hoasua
brand, on November 28, 2013, Vien Phu JSC opened the first official showroom at 126 Vo Van Kiet,
Nguyen Thai Binh Ward, District 1, Ho Chi Minh City

Figure 9: Hoasuafoods Market & Bistro

Products of HoaSuaFoods Market & Bistro include:

- Vegetables of all kinds: Forest vegetables, leafy vegetables, spices, tubers, fruits...

- Organic rice of all kinds: Hoa Sua organic black rice, Hoa Sua organic brown rice, Hoa Sua
organic colored rice..

- Organic seafood: Natural organic fish raised on the farm..

- Home-Made products: Detox drink, Purified Tea, Nutritional Rice Flour, Naturally Fermented
Wine, Vermicelli, Noodles...

• System

The 'system' element refers to all the procedures that will help the organization function in the best
possible way on a day-to-day basis. Organic ST24 Rice cooperates with technology partners in the
field of online retail distribution through USA business websites and reputable e-commerce sites. As
a result, Organic ST24 Rice can optimize its competitive advantage and cost. Organic ST24 Rice
focuses its efforts on improving its internal systems to ensure success in order to better connect with

ORGANIC ST24 RICE - USA 16

online retailers so they can learn and communicate with customers through the exchange, direct e-
commerce. Communication and marketing through these stores has a lot of potential and can be seen
as a viable system for product branding. Twitter, Instagram seem to be the most effective tools to
reach customers in the USA. Despite its relative novelty as a communication and marketing medium,
it is a powerful device for content marketing to key influencers, such as journalists.

• Human Resources

The company mainly uses unskilled labor for the production and processing of rice, the rest is
intellectual labor in the office department. Vien Phu always focuses on training skills and knowledge,
sending employees to school to improve their knowledge.

The staff always work wholeheartedly and dedicate themselves to the company to get the results it is
today. The company also has many policies to reward and reward individuals and teams with good
achievements in contributing to the development of the company.

• Technological Resources

Vien Phu Company has constantly updated more advanced equipment and machinery, innovated
technology, invested in modern production lines to reduce labor, and all equipment and machinery
imported from Germany, Italy, Netherlands, ... are installed and operated by skilled engineers in the
rice industry.

In addition, the company also has an international standard rice bag vacuum packing machine to
produce quality standard rice bags before launching to domestic and foreign markets.

• Corporate Culture

According to the criterion "Say no to chemicals", Vien Phu company from planting, tending to
harvesting, processing finished products and packaging, all follows the "Green Agriculture" standard.
With such criteria, the Vien Phu company wants to change production thinking, so that rice farmers
are better aware of how to behave with the environment, absolutely not touch chemicals, and keep
the land they cultivate. It creates an enduring vitality, so that it will serve the interests of people for a
long time.

5. SWOT
• Strengths
- High productivity in contrast to other cereal
- Production inputs (soil, water, etc) are chiefly available
- A wide range of seeds suitable for different climate and land are available

ORGANIC ST24 RICE - USA 17

 - The working force is specialized and abundant
• Weakness
- Production requires large area in order to make profits
- Cannot be produced on a commercial basis
- Production requires a large labour force
- The expired date is shorter
- Hard to preserve
• Opportunities
- Enhancing competitive position, expanding market share
- Create a golden opportunity for enterprises in the rice industry to export, in order to free up
production forces, untie domestic enterprises to be more creative and autonomous in the face
of a large export market, and to facilitate businesses to integrate deeply and effectively in the
context that the world rice market is growing strongly.
- Export values are increasing due to improved quality and quality assurance.
- The world's population is increasing, so the demand for food and food is increasing, especially
rice, because this is the main food used by people every day.
- Free trade agreement An FTA was signed, expanding the market for Vietnam's rice industry,
especially the European market
• Threats
- The cost of rice production in Vietnam is relatively high.
- The use of pesticides in rice intensive farming has been causing heavy environmental
pollution in the two deltas of the Mekong and Red Rivers.
- The big challenge for the agricultural industry in general and the rice industry in Vietnam in
particular is that climate change has had and will have a strong impact.
- With the current situation of the covid epidemic in Vietnam as well as other countries around
the world, rice exports face many difficulties and challenges in terms of transportation to other
countries, and consumption activities are reduced.
- The rice import standards of some countries are very high, requiring the Vietnamese rice
industry to make more efforts, giving priority to quality, safe, and clean rice.
6. TARGET MARKET DESCRIPTION (STP)
6.1 Target Markets Identification and Segmentation Strategy

Target Customer: Working Class

● Demographics

ORGANIC ST24 RICE - USA 18

Income: $1500 - $2500

Age: 30 to 50

Education level: Postgraduates or master degree

Marriage status: Usually married with one or two kids

Jobs: Stable jobs with high position

Lifestyle: Normal, simple, busy with work and taking care of children

● Geographics

Anywhere in America, but a lot more people in urban areas and large cities are willing to buy the
product.

● Psychologics

Pay high attention to products having high nutrition and being environmentally friendly.

Technology is vital in their lives

Perception:

Main priority is their families and their own health

Tend to follow the “Go Green” trend

Quality is more important than price

● Behavior

Buying places: supermarkets, groceries, convenient stores, online

Usage rate: Medium (4-5 times/week)

Taste: prefers fresh, no-flavor products

Information sources: personal sources, market sources and public sources.

6.2 Market Positioning

Vien Phu greenfarm considers itself an organic farm that is 100% guaranteed without using
chemicals, even though the fields have weeds, they can be pulled by hand or used water to control.
Unlike other production farms that use chemical chemicals at the allowed level, Vien Phu greenfarm
is committed to absolutely not using chemicals and always keeping the land clean. Vien Phu

ORGANIC ST24 RICE - USA 19

greenfarm believes that only when the land is kept "clean", everything can be produced that is clean
and safe. That is the criterion and also the positioning of the company since its launch to consumers.

Figure 10: Positioning map

6.3 Market Entry Strategy

Vien Phu will apply both ways of exporting including

Direct sales (business or customers can buy the product directly and have it shipped to their locations)

Use of an intermediary (Vien Phu Green Farm will distribute the product to some wholesalers and
retailers)

• Barriers to entry

Economies of scale: Vien Phu Green Farm will have to match the scale to achieve the same cost
advantage

Distribution network: With limited resources, distributing the products will be a challenge

Suppliers: Existing suppliers may have contracts or loyalties with existing companies

7. INTERNATIONAL MARKETING GOALS AND OBJECTIVES

ORGANIC ST24 RICE - USA 20

 • Marketing Objectives

The marketing goal of Organic ST24 Rice is to change consumer behavior, specifically as follows:

Increase consumption: Increasing consumption encourages consumers to use more products. There
is a main way to increase consumption: increase product consumption. In addition, the packaging
will be specially designed to attract customers, so the product consumption will be more.

Increase market share: Organic ST24 Rice strengthens market penetration with strategies to attract
new consumers to use the product such as: a 5kg bag is a bottle of soy sauce, or a bag of salt, sugar,
etc. special offers for each holiday. Combined with strong and continuous communication such as
advertising on social networking sites, participating in social campaigns, etc.

Increase loyalty: Increase loyalty by giving consumers peace of mind about product quality, special
promotions for loyal customers such as: accumulate membership points after each product purchase
Products of Organic ST24 Rice.

In addition, the company's products can be diversified: HoaSuaFoods Organic Vegetables of all
kinds, HoaSuaFoods Home-made Products, etc.

• Financial Objectives

Short-term (1-3 years)

o Monthly
- The official price for Hoa Sua will be $24.99 for 3kg
- Every month the total revenue for store selling would be 560 millions Vietnam dong for
2500kg
- The total income for a month will be 87 millions Vietnam dong for 300kg for online selling
o Yearly
- The money earned from the store selling will be 5.725 billion Vietnam dong and for online
shopping will be 1.044 billion Vietnam dong
- 2nd year: 7,316 billion Vietnam dong
- 3rd year: 7.9546 billion Vietnam dong
- Reach the break-even point after 3 years
- Increase the brand awareness by 5%

Long-term (5 – 6 years)

- Take up 20% of the rice-exporting market in the USA.

- Become the market leader of rice exporter in Vietnam

ORGANIC ST24 RICE - USA 21

 - Raise the brand awareness up to 25%
8. MARKETING PROGRAM
8.1 Product/Service and Branding Strategy

Product strategy can be said to be a strategy that plays an important role in deciding the success of
the entire marketing strategy because the first thing that customers perceive is the product, which is
the quality factor. . Quality, design, brand and support services are things that will be easily measured
by customers to compare and evaluate with other competitors. Currently, Organic ST24 Rice is rice
with natural aroma and characteristic taste; products containing a variety of biologically active
substances; bring high nutritional value and many health benefits. Suitable for dieters, weight loss.

Figure 11: Organic ST24 rice

The organic rice production process is divided into three stages: the rice growing stage, the organic
rice harvesting stage, and the organic rice production and packaging stage.

• Product quality strategy

Nutritional value: Organic ST24 rice has high nutritional value such as: Gluxit, Protein, Lipid and
minerals. In addition, the special feature of organic ST24 rice is its high protein content of 10%

ORGANIC ST24 RICE - USA 22

(higher than normal rice) to help create a feeling of fullness before being full, suitable for people with
diabetes.

Quality criteria ST24 KDM105. Amylose content (%) 17.9 (soft) 15.6 (soft). Gel strength (mm) 100
(soft) 85 (soft). Resistivity (level) 6.8 (low) 7.0 (low)

Rice characteristics

- Rice is fragrant, soft, medium sweet.

- Non-GMO (Non GMO), cultivated and processed according to American and European
organic standards.

Suggested use: To keep the delicate taste of rice, cook with less water. Should only be submerged
1cm, no need to stir. The cooked rice grains are long and well arranged.

• Brand strategy

Brand is an indispensable element for each product, it creates a difference for the product and helps
customers distinguish products of the same type.

- Product name: Organic ST24 Rice

- Logo: Leaf shape
- Image: The front of the product is decorated with rice grains on a blue and white background.
Milk flower symbolizes sweet love with passionate and passionate flavor. This represents a
peaceful and simple beauty. It also evokes prosperity and family image

Packaging: Simple and environmentally friendly packaging, made from paper. Nutrition facts and
introduction will be added on the back of the product for more information.

Labeling: The company name will be written in Vietnamese, the customer will automatically
associate the rice quality with the country of production of the company. The main color of the label
is green, white. The main image is pure white rice and the product name is below.

• Product packaging process

Packaging size: 2kg (15.7 x 15.7 x 18.1 cm)

- Expiry date: Printed on the package.

- Does not contain preservatives.

Brand Preference: After customers experience the product, encourage customers to evaluate the
quality of the product, thereby knowing the customer's preference for the product, thereby changing
it. in a better direction.

ORGANIC ST24 RICE - USA 23

Support service: This is a factor that determines the reliability and future intention of each consumer
to use the product.

Customer care hotline: (024) 89 8114868

Email: info@vienphugreenfarm.com

There are also separate customer support channels for each region from Website, Facebook, Zalo,…

8.2 Price strategy structure

Having appeared in the organic rice market later than other competitors, Vien Phu Greenfarm has
chosen a competitive pricing strategy for its Hoasuafoods product line. Specifically, compared to the
rice prices of other competitors, the price of white ST24 rice is an average price, neither too high nor
too low. Placing the price in such an average row helps customers not to be confused about the price.

Rice of Hoasuafoods: Organic ST24 Rice = 5 $

Table 3: Rice prices of competitors

Rice Price (2kg)

ST25 Rice of ResHP Vietnam Trading &

5.5 $
Service Joint Stock Company

Fragrant Rice Miss Can Tho of Gatrenco

2.2 $
Joint Stock Company

Green Rice Flower of Foodcosa 3.8 $

With the average price, the company has stable revenue and profit as well as a stable number of
customers.

The downside of this strategy is that, at the average price, there are many different brands of rice in
this range, so it is very likely that customers will compare the price of one brand with the price of
another and it is difficult to make a decision.

8.3 Place (Distribution) Strategy

The company will use a multi-channel distribution strategy, to help the product's recognition quickly
reach consumers. Since this is an imported product in the US market, there will be an intermediary
distribution channel to make the product distribution more convenient.

• Direct distribution channels

ORGANIC ST24 RICE - USA 24

Company (manufacturer) -> E-commerce platform -> Website -> Consumer

• Indirect distribution channels

(A) Manufacturer -> Distributor -> Dealer -> Wholesaler -> Retailer -> Consumer

(B) Producers, Distributors (large and small supermarkets, commercial centers) -> Consumers.

At the same time, the company will use the strategy of mass distribution, so that the product can reach
many places in the United States because rice is also an essential commodity, it is necessary to use
the maximum distribution intermediaries to sell products throughout the country. market area with
the goal of bringing as many goods into the market as possible. This helps Vien Phu company increase
market share and revenue.

Figure 12: Distribution system (Source: https://www.brandsvietnam.com/)

8.4 Promotion Strategy

Communication message: “Healthy rice for a better life”

The message fits in the healthy and balanced lifestyles that Americans are trying to achieve.

The company's financial resources are limited, so the company opt for push strategy. Aim at
wholesalers and retailers first, then those intermediaries will promote the product to the final
consumers

Advertising

• Objectives

- Create brand and product awareness by 20%

ORGANIC ST24 RICE - USA 25

 - Persuade customers to try the product

• Advertising Format
- A continuous format: run commercials to inform and keep reminding people about the
product
• Advertising Medium
- Advertising in social platform is cheaper and easier to reach target customers.
- A 20s TVC broadcasted on Youtube, Facebook, Instagram
- The message strategies of the TVC will include both cognitive message strategies and
affective message strategies
• Support media: Posting posters at subway tunnels

Sales Promotions

• Sampling
- Booths will be set up in mall and supermarkets where there is organic ST24 rice to
give out a bag of 200g rice
- Prepared rice will also be available at the stall for them to try immediately
• Product Placement
- Masterchef is an ideal place to promote organic ST24 rice. The product will appear in
the cooking pantry of Masterchef and happen 2 times a year

Public Relations

Be the main sponsor for 2 episodes of Masterchef each year

Organizing a charity event during Christmas time where a wide range of food is served to homeless
people in areas such as New York, California, etc. in 1st year.

In the next year, the same charity event will also happen during summer to provide food and
especially drink for people in poor areas

ORGANIC ST24 RICE - USA 26

 Table 4: Marketing plan for the fisrt year

THE FIRST YEAR (2022)

Promotional expenditures
Jan Feb Mar Apr May Jun July Aug Step Oct Nov Dec
Youtube
Internet Facebook
Advertising Instagram
Others (Poster,
Subway tunnels,…)
Sales Sampling (200g)
promotion Placement
Public Sponsors
Relations Charity
9. EVALUATION, MEASUREMENT AND CONTROL
9.1 Implementation and control
• Product

Strengths

- Meet the taste and current trends of the target customer group and market
- Product size consistent with consumer demand in the us
- Packaging and labeling demonstrate environmental friendliness and reflect traditional
vietnamese characteristic

Weaknesses

- The design of the package is completely made from paper, so it is difficult to preserve
and easy to be damaged by weather or impact force
ð Solution: improve packaging design, add a funnel on the top right of box to make it easier to
pour rice to use and preserve
• Price

Strengths

- Prevent new competitors from entering the same market, increasing the
competitiveness and promoting the development of the company.

Weaknesses

- The first time it enters the new market it may incur initial losses

ORGANIC ST24 RICE - USA 27

 - The company will be stuck in undervalued and difficult to raise prices
ð Solution

The company has the advantage in reducing maintenance costs and maintaining domestic production,
improving production lines.

Make gradual price increases with customer incentive strategies to build loyalty or increase the price
of substitutes.

• Place

Strengths

- Diverse distribution strategies combining flexible direct and indirect channels

Weaknesses

- The shipping time was quite long and forced customers to order for a long time
ð Solution

Strategies are needed to encourage members of the distribution channel

Regularly assess the members of distribution channels to promptly adjust

Building a management department right in the us

Provide additional fast delivery service (aircraft, ..) For customers in urgent need

• Promotion

Strengths

- Those strategies have promoted the product to a wide range of customers. The brand
awareness objective has been achieved.

Weaknesses

- Due to its lack of fund, many promotional strategies can only happen for a short period
of time.
ð Solution

Diversify the promotional activities. Choose cheaper form of advertisement as the customers have
already been aware of the brand image

9.2 Problems anticipated after entry

ORGANIC ST24 RICE - USA 28

The company fails to meet compliance and regulations in the USA. This will put a halt to Vien Phu’s
expansion plans and create additional cost in home country.

The order for rice may be overwhelming. The product may not be ready for orders.

Shipping risks may also occur. A container ship is delayed a week or it may not show up at all or it
may be impounded by customs.

ORGANIC ST24 RICE - USA 29

 10. LIST OF REFERENCES
1. Nguyen, P. (August, 14 2020), “Vietnam is returning to the position of the world's No. 1
rice exporter”. Available at : https://laodong.vn/kinh-te/viet-nam-dang-tro-lai-vi-tri-xuat-
khau-gao-so-1-the-gioi-827721.ldo
2. Song, A. (September, 23 2019), “Opportunities for Vietnamese rice to enter the US
market”. Available at: https://tapchitaichinh.vn/nghien-cuu-trao-doi/co-hoi-cho-gao-viet-
nam-vao-thi-truong-my-313160.html

3. Du, T. (March, 2010), “Rice export strategy of Vietnamese enterprises, current situation
and solutions” Available at: https://tailieu.vn/doc/khoa-luan-tot-nghiep-chien-luoc-xuat-
khau-gao-cua-cac-doanh-nghiep-viet-nam-thuc-trang-va-giai-phap-1611283.html

4. Ngoc Anh (January 7th, 2018), “High-priced organic rice is still popular”. Available at
https://nld.com.vn/kinh-te/gao-huu-co-gia-cao-van-duoc-chuong-20180107205839042.htm

5. Indec (July 27th, 2021), “American climate: What you need to know about the typical
climate of the US regions”. Available at: https://indec.vn/khi-hau-nuoc-my/

6. Hoang Hai (May 22nd, 2021), “ST25 rice stands firm in the US market”. Available at
https://vtv.vn/kinh-te/gao-st25-dung-vung-tai-thi-truong-my-20210522081826324.htm

7. My Thanh (November 11st, 2020), “Promote organic farming to meet new consumption
trends”. Available at: https://baocantho.com.vn/thuc-day-canh-tac-huu-co-dap-ung-xu-
huong-tieu-dung-moi-a127321.html

8. Duy Khanh. (06/05/2021), “Export prospects in the US market”. Available at:

https://nhandan.vn/tin-chung1/trien-vong-xuat-khau-vao-thi-truong-hoa-ky-644916/

ORGANIC ST24 RICE - USA 30

APPENDIX 1

SALES FORCAST FOR THE FIRST 5 YEARS

1ST YEAR
6,769 billions VND
2ND YEAR
7,316 billions VND
3RD YEAR
7,9546 billions VND
4TH YEAR
8,327 billions VND
5TH YEAR
8,9251 billions VND

BUDGET

Spending (1st
Name of expenses
year)

Packaging 3.400 USD

PRODUCT
Exclusive trademark
700 USD
registration

Printing 1.700 USD

Spending (1st
Name of expenses
year)

Shipping cost 7.000 USD

PLACE
Discount for
48.640 USD
distributors

Insurance cost 10.000 USD

ORGANIC ST24 RICE - USA 31

 THE FIRST YEAR (2022)
Promotional expenditures
Jan Feb Mar Apr May Jun July Aug Step Oct Nov Dec

20s TVC – 350.000 viewers

Youtube
(Cost: 1.600 USD/year)
Internet
Facebook 3.000 USD 2.500 USD
Advertising
Instagram 1.500 USD 1.300 USD

Others (Poster,
27.000 USD 10.000 USD
Subway tunnels,…)

Sales Sampling (200g) 12.000 USD

promotion Placement 2.500 USD 2000 USD

Public Sponsors 3.500 USD

Relations Charity 8.600 USD

TOTAL 75.500 USD

ORGANIC ST24 RICE - USA 32

APPENDIX 2

FULL NAME STUDENT CODE

Đỗ Ngọc Tuấn Anh 1921005341

Nguyễn Thảo Sương 1921005637

Nguyễn Minh Thơ 1921005674

Bùi Thị Thanh Tuyền 1921005752

COMPLETION
MARKETING PLAN OUTLINE MEMBER
LEVEL

Executive Summary Tuyền 100%

Situational Analysis Tuấn Anh + Sương 100%

Macro
Tuyền + Thơ 100%
environment
Analysis of the Internal
Environment
Micro
Thơ + Sương 100%
environment

Analysis of the External Environment Sương + Tuấn Anh + Thơ 100%

Swot Sương + Tuấn Anh 100%

Target Market Description Tuyền + Thơ 100%

International Marketing Goals and

Tuấn Anh 100%
Objectives

Marketing Program All 100%

Evaluation, Measurement and Control All 100%

Edit work Tuyền 100%

ORGANIC ST24 RICE - USA 33

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