SUMMARY EXECUTIVE ORION CHOCO PIE

Orion is one of the top confectionery companies in Korea. Their product range includes
biscuits, cookies, crackers, gum, snacks, chocolate, candy, and the beloved Choco Pie. Orion
entered the Vietnamese market in 1995 with Choco Pie, which quickly became a hit. Our
report's first section gives some general background information regarding the company's
history. In the second section, we'll look at Chocopie's present market situation using both the
macro and micro environments. We will then perform a SWOT analysis to examine the
company's opportunities, threats, vulnerabilities, and strengths in order to assess the process,
make significant progress, and get past any challenges. SWOT analysis has revealed the
underlying problem. Subsequently, one of the most crucial parts of this research is the
Marketing Mix Strategy for Product or the 4Ps. Therefore, this report is to analyze deeply to
find its existing issues, thereby proposing suitable recommendations and solutions for
ChocoPie
I. CHOCOPIE ORION INTRODUCTION

Orion Food Vina Company is a leading confectionery company in Vietnam, with many well-
known products such as Choco Pie, Custas, O’Star, Marine Boy, Goute, and Toonies. After
over 25 years of development, Orion has become an integral part of the daily lives of
Vietnamese people. Its products are common treats for children, gifts for visits, and altar
offerings. Orion now has 2 factories and 6 branches with over 3,000 employees spreading
from North to South in Vietnam. The sales of Orion Food Vina reached $247 million USD,
and its operating profit was $54 million USD in 2020. Even amidst the global COVID-19
pandemic situation, Orion’s Vietnamese subsidiary continues to grow steadily based on a
strong product lineup, including Choco Pie. Orion Food Vina aims to become a total food
company that provides food and beverage (F&B) beyond just confectionery under the
philosophy of “Good Food, Good Life”. Provides a detailed overview of Orion Food Vina
Company and its products.

Choco Pie is one of Orion’s most popular products. It was the first Orion product to appear in
Vietnam, and it has become synonymous with the company. Choco Pie is a soft, moist,
chocolate-coated cake filled with marshmallows. It is a favorite snack for people of all ages,
genders, and occupations, especially students and workers. They can take Choco Pie as a
quick snack during breaks. Chocopie is a product with a reasonable price and high quality.
Reasonable prices help the product compete with similar products on the market, while also
helping manufacturers focus on developing product quality. Orion Food Vina has been
cooperating with companies such as Dong Vang, especially OKS which has Good
Manufacturing Practices (GMP) certification. Using modern food packaging technology and
automated production lines helps improve product quality, safety, and convenience, meeting
the increasing needs of consumers.

I. INTERNAL ENVIRONMENT

Orion successfully captured Vietnamese consumers' hearts with the small round chocolate-
covered snack filled with marshmallows by launching the “Tinh” campaign in 2008. Tinh
means amicability, affection, and empathy among people. Orion has used a similar marketing
scheme as in Korea. with more than 25 years of presence in the Vietnamese market and
enormous business achievements. According to the 2022 financial report, of the 3.4 billion
choco pies sold globally, nearly 600 million are consumed in Vietnam. According to statistics,
Choco Pie cake revenue brought Orion nearly 450 million USD, of which Vietnam
contributed 87 million USD to this group. Besides, Chocopie is also considered a small gift,
expressing affection between loved ones. Thanks to that, Choco Pie has won the hearts of
many Vietnamese people.

EXISTING 4Ps

1. PRODUCT
a. Packaging: Product packaging plays an important role. Packaging is often used to protect
barriers and external influences that directly affect the products inside.
The packaging for Choco Pie is composed of three layers:
- The first layer, which is constructed of PE and includes easy-to-tear grooves, is the one that
directly holds the product. When used, the color is appropriate for the market and the product.
Product safety and cleanliness are guaranteed, and the waterproofness of the contents is
enhanced by sealed packaging. The product name, contents, uses, weight, storage instructions,
manufacturing date, and expiration date are all listed on the packaging.
- A Duplex paper box is the following tier. In addition to serving as a marketing tool, the
primary color box is red to safeguard the goods.
- The cardboard box, or product protection layer, is the final layer. produced using materials
that guarantee no distortion while in transit.

b. Branding: A trademark is a symbol that serves to identify and set one party's goods apart
from those of other parties. Since its inception, Orion Corporation has steadily expanded and
enhanced its brand to demonstrate the caliber of its offerings.
● Brand name: ORION
● Brand logo:
● Brand symbol:
b. Product Line Depth:
2. PRICE
 Market and demand: The cake market is a "never-ending" competition between
domestic and international brands. Vietnamese people always say: "You get what you
pay for", and people tend to look for quality products at affordable prices. Pricing
according to the market and customer needs helps businesses gain advantages in
business.

 Competitor-based pricing strategy: Orion focuses on the current rates of products and
services. Despite price fluctuations, Orion Food Vina still keeps prices stable.
Competitors tend to keep their product prices approximately the same as Orion.

 Product pricing strategy: Vietnam is a country with a low GDP/person, and family
spending is decided by housewives. Therefore, Chocopie has appropriate prices
depending on each packaging method product.

Prices:

Product Weight Price

Box 2P 66g 9.000đ

Box 6P 198g 30.000đ

Box 12P 396g 55.000đ

3. PLACE

Chocopie distribution channel: expands the number of customers consuming products for
ORION company, so the distribution policy is different depending on the region and market
situation to help the business develop maximally and bring high profits. In addition, it creates
conditions for the company to form a global sales network.
 Direct marketing channel:
Orion Food Vina has its own website to sell its products. On its website, it mainly sells Tet
gift sets.

 Indirect marketing channel:

Orion uses indirect marketing channels to provide products through retailers (Shopee, Lazada,
Tiki, 7eleven, Winmart, Circle K,...)

Orion Food Vina’s indirect distribution channel is classified into three types:

One-level channel (Manufacturer Retailer Customer): Retailers buy products from

manufacturers and then sell them to the customers.
Two-level channel (Manufacturer Wholesaler Retailer Customer): Wholesalers buy the bulk
from the manufacturer, break it down into small packages, and sell them to retailers who
eventually sell it to the end customers.
Three-level channel (Manufacturer Agent Wholesaler Retailer Customer): The agent stands
in front of the wholesaler and retailer who assist in selling goods. These agents come in handy
when goods need to move quickly into the market soon after the order is placed

4. PROMOTION

Promotion is the most special strategy in the marketing mix strategy of Orion Choco Pie.
a. Advertising

Orion Food Vina regularly appears on major programs such as VTV1, VTV3, and VCTV.
These programs contribute to the dissemination of information with high efficiency. In
addition, it contributes to impacting young people, middle-aged people, and children.
Furthermore, Orion Food Vina also hires news sites to write advertising and editorial articles.
At the same time, sign contracts with celebrities and KOLs to promote products.

In 2016, Chocopie collaborated with Song Jong Ki to make a big splash thanks to the actor's
appearance in the commercial series "Tình". Besides, Lee Kwang Soo's Chocopie
advertisement: "I Love Chocopie Dark". In just 35 seconds, the TVC advertisement conveyed
all the outstanding features of this product line thanks to the influence and natural acting of
actor Lee Kwang Soo.
Chocopie: From the "Tình như Chocopie" campaign that is deeply embedded in Vietnamese
people's subconscious to the sustainable development brand "10 years không tăng giá"
3. Current marketing introduction

3.1 Internal environment

Orion Food Vina Company is a Korean confectionery company with more than 25 years of
presence in the Vietnamese market and enormous business achievements. According to the
2022 financial report, of the 3.4 billion choco pies sold globally, nearly 600 million are
consumed in Vietnam. According to statistics, Choco Pie cake revenue brought Orion nearly
450 million USD, of which Vietnam contributed 87 million USD to this group.

3.2 Micro environment

3.2.1. Company

Choco Pie has two production factories in Yen Phong Industrial Park, Bac Ninh, and My
Phuoc Industrial Park, Binh Duong. Both factories have equity capital of more than 40 million
USD, with expected revenue of more than 50 million USD per year. Choco Pie owns a
professional production team and experienced sales staff, which greatly contributes to the
company's success.

3.2.2. Customer

Choco Pie targets the consumer market including individuals and households. Children,
teenagers, and parents are Choco Pie’s key customer segments. Moreover, regarding reseller
markets, Orion Food Vina provides Choco Pie to retail systems such as convenience stores,
Winmart, Bach hoa Xanh, Coopmart, and Big C.

3.2.3. Suppliers

The ingredients used to make Choco Pie are always guaranteed in quality and censored
according to the Vietnam Food Safety Department. The two manufacturing factories of Choco
Pie have modern production lines and a team of experienced workers, ensuring the high
quality of chocolate pies.

3.2.4. Competitors

In the chocolate-covered cake segment with a layer of marshmallow in the middle,

competitors of choco pie include Bibica's Chocolate Pie, Choco PN, and Lotte's Lotte Pie,
Socola Pie of Orion. In addition, Choco Pie also competes indirectly with other confectionery
companies such as Kinh Do, Bibica, Hai Ha, Huu Nghi, and imported

3.2.5. MARKETING INTERMEDIARIES

The resellers of Choco Pie, which include wholesalers and retailers in the distribution network
help Choco Pie easily reach customers. Customers can find it easy to buy the products in
shopping malls, traditional grocery stores, and convenience stores. On the other hand, the
emergence of e-commerce platforms like Shopee, Lazada, and Sendo makes consuming
Choco Pie more productive.

3.2.6. PUBLICS
3.2.6.1 CITIZEN-ACTION PUBLICS

Choco Pie has conveyed its message through the promotional campaign "Love", emphasizing
the core value of family. Choco Pie also participates in “Tiep suc mua thi” in Bac Ninh and
donates 4,000 special Choco Pie boxes to encourage doctors and volunteers during the covid
19 epidemic prevention period. Choco Pie's actions spread loving, caring, and sharing, which
was conveyed in the “Love” campaiggn.
3.2.6.2 MEDIA PUBLIC

Feedback from customers on social media ( Facebook, Instagram) or video reviews on online
video platforms ( Tiktok, Youtube) attract customer’s attention to try Choco Pie. Therefore,
the sales of Choco Pie are promoted effectively.

3.2.6.3 GENERAL PUBLIC

Choco pie builds a good and positive image among Vietnamese consumers. Buyers have a
positive attitude towards the product, so the product is always consumed in large quantities,
especially on special occasions such as the Mooncake Festival, and Lunar New Year.

3.3 Macro environment

3.3.1.Political

The circular 24/2019/TT-BYT on management and use of food additives, article 7. General
principles in the use of food additives help Choco Pie have a favorable view in the eyes of
consumers when declaring no use of artificial colorants and preservatives. Moreover, Decree
No. 98/2020/ND-CP, Section 2. Prohibited service business, production, and trade in
counterfeit banned goods to protect the Choco Pie brand from being copied and traded in
counterfeit goods. Last but not least, Vietnam's stable political situation is one of the
conditions for Choco Pie's business operations.

3.3.2. Economic

According to the General Statistics Office of Vietnam, the average income per person
increased by 6.8% over the same period last year in both urban and rural areas, which
stimulates people's purchasing ability. Increasing income makes consumers more interested in
confectionery products, especially snack cakes.

3.3.3. Social

The average confectionery consumption of Vietnamese people is about 2 kg/person/year,

which is low compared to the young population in Vietnam. Besides, the Vietnamese Ministry
of Health encouraged people to reduce sugar consumption and have a healthy lifestyle, which
affects the buying decision of sweets.

3.3.4. Technology

In the era of technological advancement, Choco Pie must apply high technology in cake
prevention and packaging. The high-quality technology helps the products avoid mold and
damage. Moreover, it is important to develop sustainable packaging processes, which is made
of recyclable and eco-friendly materials.

4. SWOT analysis

STRENGTH WEAKNESSES

High-quality material: To satisfy quality Perceived as being unhealthy: Choco

standards and assure health safety, raw Pie is extremely heavy in sweets and is
materials for Choco Pie production are mostly not the healthiest food to consume on a
sourced from milk manufacturer KerryBio -
Science BV Company (Netherlands), Murray
Goulburn (Australia), and NutriBio Company
(France).
Strong brand recognition: Choco Pie has
been in the Vietnamese market for almost 30
years, and its tasty pastry has become popular
among Vietnamese people ever since.
According to a Nielsen survey, Choco Pie
products accounted for 66% of the pie market.
regular basis. That is because it has a
significant probability of exceeding the
recommended daily sugar consumption.
This could make the brand less appealing
to health-conscious consumers.
Online platform: Even though they have
several online platforms for customers to
purchase from, the official website needs
to be improved with up-to-date
information.

Effective advertising campaign: Orion, the

Chocopie manufacturer, has had success in
developing effective marketing efforts that
appeal to Vietnamese customers with the
phrase "Tình như Choco Pie”

Strong distribution network: Choco Pie is

widely accessible in Vietnam, customers can
easily find it at any retail establishment:
supermarkets, convenience stores, or even
small local shops. With the impact of the
COVID-19 pandemic, Choco Pie is also
developed its e-commerce platform, making it
easier for consumers who want to make online
purchases.

Affordable price: Choco Pie hasn’t increased

its price for 10 years, which allows the brand
to build up a loyal customer base.

OPPORTUNITIES THREATS

Human resources: The Vietnamese market Increased competition: The Vietnamese

has an abundance of affordable and snack market is becoming increasingly
experienced human resources in competitive, with new entrants and
manufacturing and processing that can be domestic businesses competing for market
encouraged and developed. share.

Increase in consumers’ income: The income Price competition: Because of the

of Vietnamese has been increasing in recent
years which improves the purchasing power.
Lifestyle status: Korean culture is becoming
increasingly popular in Vietnam, which could
further boost the popularity of Chocopie.
competitive market, many brands lower
their prices to attract customers, therefore
Choco Pie must compete with numerous
low-cost products.
5. Main issues:

Choco pie has been doing well in the Vietnamese market so far, its products account for
almost 66% of the pie market. However, there are still some issues that remain.

The biggest issue with Choco Pie is that it lacks essential nutritional value and is not a dessert
that should be consumed regularly. Consuming too much sugar and fat increases the risk of
chronic diseases, such as diabetes and heart disease. Thus, it can make the product less
appealing to health-conscious consumers.

However, it is possibly not a challenging task for Choco Pie since it is a brand known for
catering its products to suit the targeted market’s preference. It can expand its market by
developing healthier snacks with low sugar and fat.

Another problem Choco Pie has to face is the intensive competition with other competitors in
the market. There are several brands that offer similar chocolate-coated pies to Orion's
Chocopie such as Lotte, Bibica, Richy,... In addition to these established competitors, new
entrants to the Vietnamese snack market continually emerge, introducing innovative products
and competing for market share. To sustain its position as a leading snack brand in Vietnam,
Chocopie must remain mindful and adapt to changing consumer preferences.

6. MARKETING OBJECTIVES.
SMART OBJECTIVES:
 Vision: Orion wants to dominate the Vietnamese confectionery market. Additionally,
the corporation is attempting to change to become a "sustainable enterprise
development" organization.
 Business Aim/ Mission: The goal of Orion is to provide consumers with food that is of
the highest quality while maintaining food safety and hygiene.
 Business Objectives:
+ In 2023, the Company is planning to build another factory and also aims to become
the largest confectionery manufacturer in Vietnam. (VnExpress.net)
+By offering higher-quality products and having more effective sales than its rivals,
Orion hopes to increase its market share. The Company will also make investments to
encourage the opening of new plants and to expand its current ones at the same time.
( CAFEF.vn)
 Marketing Objectives:
 In fact, not raising our prices in 2023 is no longer simply a strategy, but also a
companion in difficulties with consumers. Keeping the selling price the same
means reducing profits. However, the Company also increases revenue by
expanding distribution channels and continuously releasing new products
according to the needs of local people.
MARKETING ACTIVITIES:
 Advertising campaign to promote a new product line. ( applied IMC).
7. MARKETING STRATEGIES.
A. Segmenting consumer markets

GEOGRAPHIC

 Country: VietNam
 Density: Urban, suburban, exurban, rural
 Cities: almost cities: Ha Noi, Ho Chi Minh cities, Hai Phong, etc.
 DEMOGRAPHIC

 Ages: Centennials, Millennials, Senior population

 Genders: M/F

PSYCHOGRAPHIC

 Social class: working class, middle class, upper middle

 Lifestyle: Love, Support

BEHAVIORAL

 Occasions: Regular
 Benefit: Provides immediate energy, reduces stress in kids, enhances immunity
when paired with fruit, integrates protein.
 Attitude toward product: Positive
B. New plan 4P
1. PRODUCT
Three-layer of product:
 Core Value: Cheap, delicious, popular with the poor, and become the childhood cake
of all children.
 Actual Product:
 Brand name: Today, in Vietnam, Chocopie accounts for 60% of the cake market share.
Sales turnover reached 7 million USD. The scale of exports recovered after the
currency crisis. Orion and Chocopie become the leading cake brands in the
Vietnamese market.
 Packaging: Chocopies prioritizes the use of "gentle packaging", the outer packaging is
replaced with kraft plastic bags (bags using rough paper, no plastic or fabric) and the
cake packaging still has plastic but has minimized ink in shells.
 Design: Diverse, beautiful, and creative designs.
 Quality level:
 Orion never fails to recognize that the food sector is a conscious industry. Candy is
something that is ingested by humans, so Orion constantly keeps in mind that our
children will consume these products when creating new products. The goal of Orion
is to provide consumers with food that is of the highest quality while maintaining food
safety and hygiene.
 All of Orion’s technological equipment meets international standards such as
ISO:9001, American Institute of Baking (AIB), and Hazard Analysis and Critical
Control Point System (HACCP).
 *Orion’s products have a certificate of Food Hygiene and Safety from
the Ministry of Health.
 *Orion Food Vina has received a lot of awards, and certifications voted
by consumers and prestigious organizations as “Vietnamese High-
Quality Goods”, “Top 500 largest Vietnamese enterprises”…
 Slogan: It is likely that Vietnamese customers are overly familiar with the tagline
"Orion is ChocoPie. ChocoPie is Orion." Orion has been attempting to localize its
products that are intimately linked to Vietnamese identity for over 20 years.
 Argument product:
 Delivery and credit: Products from Choco Pies can be found in most market systems
as well as several significant online e-commerce channels.
  Product support: A 24-hour hotline and address email to receive feedback from
customers that has a significant impact on Chocopies' ability to quickly satisfy
customer requests.
 Product lifecycle: With the introduction of Chocopies, a groundbreaking product,
Orion entered the Vietnamese market in 1995 and went on to dominate the country's
confectionery market. Even though Chocopies is in a mature stage of development, it
still has the potential to draw customers and triumph over the challenge of competing
with other significant rivals. Chocopies presently concentrates on offering nutritional
products to everyone.
2. PRICE:
The Vietnamese confectionery market is quite competitive and there are more and more new
competitors entering this market; However, their pricing strategy is based on their
competitors, and keeping prices the same is still effective even though their prices compared
to other competitors are quite low. They also use a new product pricing strategy, Chocopies
has developed new products with competitive prices and many flavors for customers to
choose from.
3. PLACE:
Orion needs to improve both the functioning of its online website and its booth. The candy
company might sell a greater range of products and expand the scope of its product search
engine. In order to give clients the most recent information on the items they need to buy,
Orion also needs to keep the website's latest news, ad campaigns, and promotions up to date.
4. PROMOTION:

Developing Effective Communication

1.Identify the Orion has clearly identified its main target segment – children and
target audience teenagers

2.Set Increase the number of customers by spreading love and educating

communication people about the value of moral principles for Vietnamese children
objectives which is suitable to Vietnamese tradition. Moreover, Choco Pies is also
passionate about bringing the least successful product lines back to life.

3.Desire the Choco pie answers the need to send love in life with their slogan, "Love
message like ChocoPie," which inspires feelings of emotion (e.g., giving love,
reunion, admiration, etc.).

4.Chose the Both personal and non-personal communication channels

media

5.Select the Chocopies typically select individuals who are renowned for having a
message source strong sense of familial love.( e.g: Lee Kwang-soo - the South Korean
actor)

a.Advertising.
Chocopie: Starting with the deeply ingrained "Tình như Chocopie" campaign in Vietnamese
people's subconscious, to the sustainable development brand "10 years không tăng giá"
Orion has clearly identified its main target segment – children and teenagers. This is the
reason why children are always the main characters of Choco Pie as Mr. Lee Kyung Jae once
said. Not only because of the product quality but what makes Orion ChocoPie successful in
Vietnam is the human value shown in the advertisements. Orion FoodVina has skipped the
message about Choco Pie’s quality and partly focused on the sentimental value of the product.
The advertisement has contributed to educating children on moral values which is suitable to
Vietnamese tradition.
b. Public Relation
In 2020, Orion "joined hands" with the Vietnam Fatherland Front to donate 32,000 boxes of
Choco Pie cakes to medical staff and soldiers to encourage morale and effectively support the
fight against the epidemic.
 Chiến dịch quà Tết – hộp quà yêu thương: Take advantage of Tet to send
congratulations and give loving gifts.
 “We can do it” – Chúng ta hoàn toàn có thể làm được: Encourage each person's
self-confidence and abilities.
c. SALES PROMOTION:
Chocopies sells its products through its distributors, both online and in-store.
d. PERSONAL SELLING:
Staff members of Chocopies usually show up in supermarkets to meet people and directly
push their goods. Salespeople can assist customers in finding the right products by providing
them with helpful information. They will therefore probably increase sales and brand loyalty.
e. DIRECT MARKETING:
Customers can order Milo's products using the official Orion Chocopies
website(https://orion.vn/), which provides a list of products. Chocopies will establish
connections with customers through this website since it constantly updates fresh health-
related material and solicits comments from its customers.
8. ACTIVE PROGRAM:

Marketing plan for Budget Year 2023 Year

Chocopies 2024

Month 8 9 10 11 12 1

1 Research and 5 billion

analyze the VND
current status and
development
potential of
confectionery market

2 Analyze the 3
market, the billion
Customer VND
Segmentation

3 Research and 2.5

analyze billion
Customer VND
Insight, Shopper
Insight,
Consumer
Insight
4 Research 600
competitive million
brand (product,;, VND
packaging,
distribution
channel, etc)

5 Build positioning 750

brand million
VND

6 Start doing 500

marketing plan million
VND