COMPETITIVE

STRATEGY
VINASTRAW
GROUP 8 PRESENTATION
 Page 2

OUR TEAM
TRẦN HẢI DIỆU LINH - 2012150054
TỐNG PHƯƠNG THẢO - 2011150210
NGUYỄN VIỆT NGA - 2011920033
NGUYỄN TRẦN KIM OANH - 2012150074
TRẦN THANH MAI - 2112340603
 Overview of
Vinastraws

Vinastraws Joint Stock Company was established in 2019, constantly

researching to develop new product lines, giving consumers more
choices in the future. One of Vinastraws' first products was cereal
straws. With outstanding advantages such as being environmentally
friendly, Cereal straws are the perfect solution to replace traditional
plastic straws. These straws are made from 100% rice flour, tapioca
flour and natural colors, no additives. The product can be stored in the
natural environment for about 18 months and used in cold water for
about 2 hours, after which the straw will expand but does not affect the
taste of the drink. The company's cereal straws have been exported to
Korea, USA, Germany, Japan. Since the beginning of the year, the
enterprise has exported 500 kg of this type of straw to Korea.

01
 VINASTRAWS

SWOT ANALYSIS
STRENGTHS

Made of 100% eco-friendly materials

Straws are made from 100% natural, compostable and affordable materials (mainly rice and
other grains) completely environmentally friendly, which means that consumers can not only
enjoy drinking but also eat straws without worrying about health effects. Rice straws are
significantly more environmentally beneficial than plastic straws because they decay much
more quickly—in just three months—than plastic straws, which take several millennia.
Outstanding product design and characteristics
Regular plastic straws come in a variety of sizes and colors thanks to natural coloring. The
main components provide the tube higher durability and elasticity, and the surface is also
smooth. Their edible raws remain undisturbed for a long time in both cold and hot water. The
best part is that unlike paper straws or other eco-friendly straw options, rice straws may last
up to 18 hours without deteriorating or changing the taste, making them ideal for use in cafes
and restaurants.
Affordable price thanks to abundant resources
For many years, Vietnam has consistently ranked among the top three rice exporters in the
world. As a result, there is a significant advantage of high input and low cost. Rice straws'
low production costs are also a result of numerous other regional and sociological variables,
making them competitive enough to entirely replace standard plastic straws.

WEEKNESS

Unable to keep up with the high market demand

As of March 2019, Vinastraws has been operational for three years. The business team is
still in its infancy and is lacking in strength and experience. Infrastructure for production is
gradually developing but is still unable to keep up with the high market demand.
High Price
In order to produce in an environmentally responsible manner, the production process must
be given the best possible care (plasticizers, tough). As a result, rice straws are frequently
more expensive than regular straws due to the high input costs and machinery investments.
Depending on pipe diameter, the average selling price is 50,000 VND/box/50 tubes, or
approximately 1,000 VND/tube (compared to plastic straws about 20,000 VND, paper straws
about 30,000 VND, grass straws 40,000-45,000 VND)
 VINASTRAWS

SWOT ANALYSIS
OPPORTUNITIES

Large number of potential customers

Many consumers today choose to utilize items that are safe for their health and the
environment. The population aged 15 to 64 makes up the largest share of the population
structure, according to Statista (2022). In recent years, Vietnam's young population had one
of the highest rates of literacy in the Asia-Pacific region. People can more easily obtain
knowledge on environmental protection, including the benefits of using environmentally
friendly rice straws, as a result of greater educational attainment.
Potential market development thanks to the support of the government
In Vietnam, the job of spreading and enforcing political and legal frameworks, national
economic policies, and development programs for farmers and industries was given to the
government. similar to the Circular advice on how to use agricultural waste as raw materials
for other industries while also conserving and utilizing energy in agricultural production.
Because of environmental degradation, some nations, including the US, Canada, Korea, the
UK, Germany, and France, have restricted or outright prohibited the use of single-use plastics
for export. As a result, Vinatraws' market can grow as much as possible.
Straws have also evolved into must-have accessories for diners who enjoy beverages and
soft drinks. All types of clients and all ages can use rice straws.

THREATS
Competitive market
The common reason why so many people use plastic straws is for their immediate
commercial advantages, such as their low cost and wide variety of sizes and patterns. Due to
higher expenses, few restaurants and beverage establishments have dared to totally replace
plastic straws. Few people typically carry their own straws or spend more money to get eco-
friendly straws. Additionally, vinastraws must compete on the market with comparable
names and goods like plastic straws, bamboo, paper, and grass. Eco Straws is the market
leader for rice-based straws in Vietnam at the moment. Other companies in the sector
include Nuihut, etc., or companies like Fuma that include rice drinking straws in their line of
goods.
The COVID-19 pandemic
The COVID-19 pandemic's after effects have left the world still reeling. This has an impact on
new enterprises like Vinastraws' limited investment capital and production expansion.
Strategy overview
Many businesses choose to restructure over time and will use a
variety of strategies to advance and distinguish themselves in
the marketplace. We consider creating a differentiation strategy
to increase profits without high risk or lowering our prices.

Differentiation strategy

1
A differentiation strategy is an approach businesses develop by providing
customers with something unique, different and distinct from items their
competitors may offer in the marketplace. The main objective of implementing
a differentiation strategy is to increase competitive advantage. A business will
usually accomplish this by analyzing its strengths and weaknesses, the needs
of its customers and the overall value it can provide.

A differentiation strategy is called a “broad differentiation strategy” when the

differentiator-company goes for segmenting its market into several small
segments (niches) and then offers a product designed for each market-
segment. After considering the current condition of Vinastraw and the benefits
of this strategy (in the section below), we decide to use differentiation as the
main competitive strategy for Vinastraw.

Benefits of creating a differentiation

2 strategy
Differentiation strategies have several advantages that may help develop a
unique niche within a particular industry. Here are the possible benefits of
creating a differentiation strategy for the firm:
1. Reduced price competition
Differentiation strategy allows a company to compete in the market with
something other than lower prices. For example, our company may differentiate
the rice straw by improving the design and durability or using healthier and
more environmentally friendly ingredients. Although our competitors have
cheaper straw, they cannot satisfy consumers' wants from those straw
production company.
2. Unique products
This benefit of a differentiation strategy is that it builds on the unique qualities
of a product. Our company can create a list of characteristics its products
contain that our competitors lack. Those characteristics will differentiate our
product, and we may communicate this through effective marketing and
advertising.
Strategy overview
Benefits of creating a differentiation
2 strategy
3. Better profit margins
When products are differentiated and turned into higher-quality products, it
offers more opportunity for larger profit margins. A product with differentiated
features can command premium prices (i.e., prices above the industry-
average). Customers are usually to pay premium prices because they value the
differentiated features of the product. Thus, the company that adopts a
differentiation strategy can increase profits by charging higher prices and is
able to outperform its competitors.
4. Consumer brand loyalty
Effective differentiation may create brand loyalty in customers if a business
maintains the perceived quality of your products.
5. No perceived substitutes
A strategy that successfully differentiates may present the idea that there is no
other product available on the market to substitute it with. A business may gain
an advantage in the market even when there are similar products available
because customers will not be willing to replace your product with another one.
Companies try to differentiate themselves by providing consumers with unique
products that are frequently revolutionized.

Goals

3
Short-term goals:
Gain competitive advantage in the marketplace with new products and
services
Providing superior value to customers through satisfying their needs
Raise awareness of consumers on environmental issues: The common
reason why so many Vietnamese people use plastic straws is for their
immediate commercial advantages, such as their low cost and wide variety
of sizes and patterns. Due to higher expenses, few restaurants and
beverage establishments have dared to totally replace plastic straws. Few
people typically carry their own straws or spend more money to get eco-
friendly straws. Thus, raising customers' awareness and changing their
behavior to more sustainable consumption will help increase more
purchases in rice straw and the profit in return.
Engage more impressions through the omnichannel of marketing: social
media, website, e-commerce sites…
Long-term goals:
Out compete the competitors
Gain strong position in the market
 Strategies
Product
The company may incorporate performance-raising features in the product. Several
features/attributes can enhance product performance. Michael E. Porter suggested
seven such features and Vinastraw can consider using them.

1. Provide buyers greater reliability, durability, convenience, or ease of use.

As it is mentioned in the Strength of our SWOT analysis: Straws from Vinastraw are made
from 100% natural, compostable and affordable materials (mainly rice and other grains)
completely environmentally friendly, which means that consumers can not only enjoy
drinking but also eat straws without worrying about health effects. Rice straws are
significantly more environmentally beneficial than plastic straws because they decay much
more quickly—in just three months—than plastic straws, which take several millennia. They
should keep these outstanding features in their further production to increase product
reliability.
Moreover, VinaStraws can add some special features to the rice straw such as: using used
rice straw as organic pesticides for plants (as they are able to decompose in around 60
days without any effects on the environment) or improving the products to sustain more in
the hot water and reuse for many times.

04
Date//Time//Year

Strategies
Product
2. Improve the design, superior craftsmanship, upscale fashion, to satisfy
buyer’s desire for status, image and prestige

Packaging also plays an essential role in product

strategy. Protection, convenience, product
information and security are benefits of packaging.
Besides, product packaging also shows the first
impression and tells how customers see the
products. Therefore, it not only protects products
but is also considered as a marketing tool (Pentago
2019). Thus, one of the key strategies to increase
the competitive advantage of Vinastraw in the
market is to improve the design of packaging. Here
are our suggestions:

Packing boxes are big enough to be

seen and carried. Images of straws
are printed clearly to attract attention.
Packages include product and
company information as quantity,
ingredients, expired time, how to use,
address of the company.
Simple design with green color
provokes friendly usage to
customers. Besides, some packages
also include slogans to persuade
customers to choose products and
encourage environment protection.
Packages made mostly of paper or
recycled materials. Boxes are
designed to safely contain the
amount of straws and are able to be
kept in a large cardboard package for
distribution.
Date//Time//Year

Strategies
Product
3. Exceed environmental or regulatory standards
To improve customers reliability, Vinastraws should put their to the test in third-party clinical
trials. They also should share the certificate from reliable environmental or health related
organizations.

4. Meet the buyer’s needs and requirements more completely, compared

to competitors’ offerings:
We offer comprehensive after-sales services: unconditional guarantee, long-time warranty,
refund for a purchased product if returned within a specified time, replacing a purchased
product, refunding purchasing price for a defective product, and so on.

5. Give buyers more flexibility to tailor their own products to the needs of
their customers.
 Strategies
Pricing

Vinastraw has an advantage in production costs. Vietnam has continuously been

in the top three largest rice exporters in the world for many years. This creates a
huge advantage of abundant input at low cost.
Large production scale and large capacity make the cost per product lower than
enterprises from other countries. From the above advantages, Vinastraw can
balance in offering attractive prices but still bring high profits.
Market-oriented pricing: With the goal of bringing products to the most
consumers, products are priced based on consumers' perceptions of both price
and value when using them. We offer a retail market with prices from 50,000 -
70,000VND/100 straws/box.
Price adjustment strategies
Discount and allowance pricing: For the retail market: When buying 1 box (150
straws), you will get a discount of 150 straws/box
Promotional pricing: By lowering the price for a short time, a brand artificially
increases the value of a product or service by creating a sense of scarcity.
Buyers can get a discount of 20-40% off or benefit from the "Buy 1 Get 1"
program on specific occasions.
Date//Time//Year

Strategies
Promotion
Advertising:
Social media: Facebook, Instagram, Tiktok, Youtube Channel
E-commerce platforms
Sales promotion:
Discounts on E-commerce platforms
Direct marketing:
Sponsors restaurants, coffee shops, etc. to use Vinatraw

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