I.

The recommended entry mode and distribution channel / channels to

the target customers
Product: Pomelo is the seventh fresh fruit of Vietnam to be licensed to enter the
US market, following mango, longan, lychee, dragon fruit, rambutan, and star
apple. This results in Chanh Thu can export four fresh fruit of Vietnam to be
licensed to enter the United Stated market following Pomelo, longan, dragan,
dragon fruit and rambutan.
1. The entry mode – Direct Export modes
Chanh Thu sells directly to an importer or buyers located in United States. In direct
exporting, they can exam ined ways of reaching foreign markets with working very
hard. Indeed, Chanh Thu will envolve building up overseas contacts, undertaking
marketing research, handling documentation and transportsation, designing
marketing mix stategies. They could also export through foreign-based agents and
distributors.
Chanh Thu would take care of exporting activities and they are in direct contact
with the first intermediary in the USA market. They is involved in handling
documentation, physical delivery and pricing policies, with the product being sold
by the distributors.
Chan Thu will export directly to distributors, which are exclusive representatives
of the company and generally the sole importers. In this case, distributors own and
operate wholesales abd retail establishments, warehouse and repair falicies. They
have negoitiated with Chanh thu. Once distributors have negotiated with Chanh
Thu on price, service, distribution and so on, their efforts focus on working their
own sub-operarions and deadlers.
Noted: Vẽ hình như trong sách 367.
2. Distribution channel
- Business marketing channel: The end customer in this distribution channel is
Business Customer because Chanh Thu still have enough sustainable to
control distribution channel with the end custormer who is final consumer in
United State of American market. Especially, the number of channel
member to use at each level is intensive distribution which is stocking the
product in as many outlet as possible. In each of Channel Member is
American Importers have responsibilities such as decide price, conditional
of sale, territorial rights and specific services to be performed
- Note: Vẽ hình như trong sách trang 602
Types of intermiaries: wholesalers and retailers.
Chanh Thu (exporter) => Wholesalers (importer) (horizental intergration) =>
Retailers => End Customers
- Horizental intergration: Chanh Thu seeking control of channels members at
the bussiness customers.
- Wholesalers are the importers. All product are designed and delivered
directly to individual corporate clients (B2B)
Chanh Thu no applies online retail.
- B2B distribution
Chanh Thu (export) => The business (importer)
- How to export to end customers is impors’ obligilation because it is so risky
when Chanh Thu opened the distrinution channel to end customer who are
American.
II. Market segmentation and justification of target selected
1. Market segmentation
Segmenting Business Markets following
1.1. Operating characteristics
Technology - The importer has a high technology to remain the fresh fruit
(1 - 2 week and above)
- The importer has no ability to remain the fresh fruit ( below
1 week)
Usage rate - The business import rarely ( 2-3 times/year )
- The business import sometime (3-5 times/year)
- The business import usually ( 6 – 10 times/year)
- The business import always ( 10 – 20 times/year and above)
Demand size - The large amount of container imported (2000 tons/ year and
above)
- The medium amount of container imported (1000-2000
tons/year)
- The small amount of container imported (500 - 1000
tons/years)

1.2. Modality of supply

 There are main transportation to export Vietnamese fruit such as air, sea and
truck transportation. In fact, It is absolutely practical that sea transportation is cost-
saving for exporter’s advantage.
The importers’ high obligation The importers’ high obligation
They use the method of delivery: EXW, They use the method of delivery:
FCA, FAS, FOB, CFR, CIF CPT, CIP, DPU, DAP, DDP
 If the business buys FOB and sells CIF, it means that the business will win the
right to transport and insurance in the rental of means of transport, which will
bring a lot of benefits not only to the business but also to the whole country.
 When businesses have the initiative to decide to hire means of transport and
insurance for goods, they will easily negotiate transport prices, insurance fees, and
delivery times to achieve a more favorable price, Cost savings for businesses.
When importing under FOB terms, businesses are proactive about the right to
transport, they can choose and clearly grasp the schedule of trains and trains to
arrange negotiations so that the goods are delivered at a good time for them.
themselves to trade, especially seasonal goods.
1.3. Situational factors
Following the special application, there are 2 segmentations:
- In the right seasonality, the importers have only tendency to order more
majorities quatities with a low – price.
- In the out of seasonlity, the business still always import fruit on regularly
2. Target market
- Chanh Thu would apply an undifferentiated (mass) marketing strategy.
As we have analyzed above, Chanh Thu is suitable for all customer segments, in
addition, Chanh Thu is an enterprise with a strong business capacity and a certain identity
in terms of import and export of flowers. fruits abroad with the highest quality.
Therefore, Chanh Thu targets all businesses from small to large businesses.
Using this marketing strategy will save a lot of costs by exploiting the advantages
of scale, producing and distributing a narrow and homogenous, highly standardized
product range; easy access to price-sensitive markets.
3. Positioning
- Compared to Thailand, China which is export fruit country to Amercican. Inđeed,
Chanh Thu is mapping, designing and developing image of product, company in
the mind of customers. The posotioning map shows customer’ perception of
Chanh Thu’s product and that of competitors
- Fruit Import industry in the United State: Selection of posotioning criteria
+ Quality
 + Price
+ Technology
+ Flexibility in seasionality
+ Response time
+ Package
VietNam Thailand
Quality 4 5
Price 5 4
Technology 3 4
Flexibility in seasionality 3 3
Response time 3 2

 Positioning: Fruits exported from Vietnam are always brought to the US market with the
freshest product quality with reasonable prices and cheaper than products imported from
other countries. The technology applied by Vietnam has now been verified by the US to be
safe enough for consumers. Moreover, Vietnam's geographical location is convenient for
transporting goods from Vietnam to the US market in a short time and ensures that the fruit
is delivered to users as quickly as possible.
Compared to Thailand, Exporters from Vietnam can choose competitive advantage
as price and response time.
 Vietnamese exporters, known as Chanh Thu can approach United State of
America by lower – price and response time but the same quality.
III. Promotional stategy
1. Identify the target audience
From taking real-time and dynamic, the target audience in long-term buyer who
are making larger purchases and involve more businesses like decision – maker
and infliencers that require more maintence and updates, relationship are usually
stronger. Firstly, targer audiences is the importer US who does not have needs for
Chanh Thu product but they would have be attracted by your branding.
The main purpose of target audience B2B is to built trust and credibility with
your marketing and the quatily of the product of Chanh Thu. It is widely acceptef
that B2B target audience who need to be shared expertise with them as they are
more rationally driven. At the end, Chanh Thu need to build strong relationship
with not only the new business customer but also the old business custormer.
2. Tools to use
2.1. Trade fairs
In trade fairs which are concentrated event at which manufactures, distributors,
and other vendors display their products and describe their services to current and
prospective customers, suppliers, other business associates and the press.
Participating the trade fairs can enable Chanh Thu to reach, in a few days, a
concentrated group of interested prospects that other wise take several months to
contract. In here, the potential importer can examine and compare the outputs of
competing firms in a short period at the same place. They can see the lastest
development and establish immediate contract with potential suppliers. Trade fairs
also offer international firm the opportunity to gather vital information quickly,
easily and cheaply. More detaitly, within a short period, Chanh Thu can learn a
considerable amount about its competitive environment, which would take mich
longer and cost much more to get through other sources.
Chanh Thu should select carefully a world-wide leading trade fair and
participate regularly in the same trade fair. The business would be use trade fairs or
conferences as a key instrument to develop personal contacts. As mentioned, a
average person just spend 3 -5 seconds glancing at a booth and the average visitor
spend about 7 hours meeting approximately 25 exhibitors. Beside, there are
averagely from 400 – 500 exhibiting companies while the average attendee has
about 15 exhibitors on his agenda before he arrives at the show. More importantly,
the average attendee receives about 30-50 pre- fair communications before
attending the show.
 Chanh Thu should put trade fairs in the centre of their marketing mix concept
and plan other marketing activities in relation with trade fair participations.
Chanh Thu should focus on: design booth, prepare my product, preliminary
budget, plan booth construction, catalogue entry forms to organizer, deliver
exhibition materials to forwarding agent and payment checks before departure,….
2.2. Direct mails
The most effective method of contacting target audiences is direct mail.
According to statistics, there are around 50% more opportunities to have an
influence than there are with email, texts, social media, etc. With account-based
persons, direct marketing enables Chanh Thu to establish a crucial moment with
those who matter most. You are elevating yourself above rivals seeking for their
business when you capture their attention before they are prepared to buy or take
action. build trust by showing your credentials, such as highlighting your
professional accreditations, awards, business memberships, ratings, and
testimonials.
 In direct mails, Chanh Thu can use the most effective way to reach potential
attendees is through personal invitations. In that case, the business customers
argreed that the best way to attract them to your booth was by sending a personal
letter along with: a strong motivating reason why they had to agree with your
invitation, speacially address your potential customer’s area of responsibility,
suggest why your potential customer would want to meet with you, provide the
location of your booth at the fair and schedule of “special events”.
2.3. Advertising &Public Relation
Word of mouth advertising is not only cheap, but also very effective. Public
relations seeks to enhance corporate image building and influence favourtite
meadia treatment. Publicity carries out programmers which are designed to earn
public understanding and acceptance
In a more market – oriented sense, the PR activities is direct towards an
influential through relatively small, target audience of editors and journalists who
work for newspaper or magazines or towards broading aimed at the firm’s
customers and stakeholders. Chanh Thu should link advertisement trade fair
participations . There are some material which Chanh Thu need to prepare: Price
list, Website, Flyer or Brochure and Catalogue.
2.4. Customer Relationship Marketing
Chanh Thu should making event in traditional day such as New years,
Celebrating,… to create a strong relational bond between Chanh Thu and their
customers. Morover, the company can create the customers group in order to a
sense of identity and community for many of the customer. The company has
updated the database with all new information they learnt about the expectations of
their customer. There are some useful different categories such as existing clients,
highly promising contacts, general contacts and specific market segmet.
 Overall, Chanh Thu should apply potential joint promotion activities like: trade
fair participations, buyers missions, advertisements, Internet and Market
research.