THE MINISTRY OF FINANCE
UNIVERSITY OF FINANCE- MARKETING
------oOo------
MARKETING PLANNING FOR NEW
PRODUCTS - NESCAFE'S CHOCOLATE
BUBBLE BY NESTLÉ VIETNAM
COMPANY
Major: Marketing
Specialization: Marketing Management
Ho Thanh Phu
Tran Thanh Tuyen
2021008522
2021008587
Class: CLC_20DMA09
EVALUATION TABLE
Full name
Student ID
Ho Chi Minh, 14 December 2021
0
0
Percent
Ho Thanh Phu
2021008522
50%
Tran Thanh Tuyen
2021008587
50%
Total
100%
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INSTRUCTOR'S COMMENTS
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Score in numbers
Instructor's signature
Faculty of Marketing
M.S NGUYEN XUAN TRUONG
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ASSURANCE
Our team declares that the topic: "Making a Marketing Plan for a New Product
Nescafe's Chocolate Bubble Coffee under Nestlé Vietnam" is an independent research
work under the guideline of the instructor. We also do not have any copying by others.
The topic and content of the internship report are the products that I have researched hard
during my study at the school. The data and results presented in the report are truthful, we
would like to take full responsibility and discipline of the subject and the school if there is
a problem."
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THANK YOU
First of all, we would like to express our sincere thanks to the School Board,
teachers of the University of Finance - Marketing in general and the teachers of the
Marketing Department in particular, who enthusiastically taught and passed on to us. Our
valuable lessons and experiences make us have a piece of solid luggage and put it into
practice in the future.
In particular, we would like to express our sincere thanks to Mr. Dang Huynh
Phuong who has wholeheartedly helped and guided me in the process of practicing my
profession. With the detailed and thorough comments, she conveyed to me. It is a
valuable lesson for us to complete our Marketing Management report.
In the process of making the Marketing Management report, because of the limited
time and knowledge, mistakes will inevitably be made, I hope to receive the advice of
teachers so that I can improve more and more and have good knowledge to apply to work
after that.
Finally, I wish Mr. Dang Huynh Phuong and all other teachers of the University of
Finance - Marketing have a lot of health, always be happy and successful in life.
Thank you sincerely.
TABLE OF CONTENT
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EVALUATION TABLE...................................................................................................................ii
INSTRUCTOR'S COMMENTS.....................................................................................................iii
ASSURANCE.................................................................................................................................iv
THANK YOU...................................................................................................................................v
TABLE OF CONTENT...................................................................................................................vi
LIST OF FIGURES.......................................................................................................................viii
LIST OF TABLES...........................................................................................................................ix
LIST OF ACRONYMS....................................................................................................................x
I.
EXECUTIVE SUMMARY:..................................................................................................1
II.
INTRODUCTION:............................................................................................................1
1.
MISSION STATEMENT...............................................................................................1
2.
Strategic objectives for the first year:............................................................................1
3.
Financial Objectives.......................................................................................................2
III.
SITUATION ANALYSIS:.................................................................................................2
1.
MARKET SUMMARY:.................................................................................................2
1.1
Market Size:...................................................................................................................2
1.2
Market Growth:..............................................................................................................2
1.3
Market Share..................................................................................................................2
1.4
Market Trend..................................................................................................................3
2.
MACRO ENVIRONMENT:..........................................................................................4
2.1. Political Analysis:..............................................................................................................4
2.4. Technological analysis:......................................................................................................5
3.
COMPETITORS:...........................................................................................................6
3.2. Competition on brand:.......................................................................................................7
3.1
Substitute products:........................................................................................................9
4.
SWOT............................................................................................................................9
5.
SEGMENTATION - TARGET - POSITIONING STRATEGY...................................11
5.1 Segmentation....................................................................................................................11
5.2 Target:...............................................................................................................................13
5.3 Positioning:.......................................................................................................................14
6.
MARKETING MIX STRATEGIES:...........................................................................15
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6.1. Product:............................................................................................................................15
6. 2
Price:............................................................................................................................19
6. 3
Place.............................................................................................................................21
6.4. Promotion:.......................................................................................................................24
7.
ACTION PLAN:..........................................................................................................31
8.
FINANCIAL:...............................................................................................................33
8. 1
Break even analysis:.....................................................................................................33
8. 2
Sales Forecast:..............................................................................................................33
8. 3
Expense Forecast:.........................................................................................................34
9.
CONTROLS:................................................................................................................37
9. 1
Implementation:...........................................................................................................37
9. 2
Backup plan:.................................................................................................................37
REFERENCES...............................................................................................................................40
LIST OF FIGUR
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Figure 1: Market of instant coffe in Vietnam...................................................................................3
Figure 2: Vietnam Coffee - Cocoa Association................................................................................4
Figure 4: Inside the decaffeinated instant coffee production area in Dong Nai...............................6
Figure 5: Positioning map..............................................................................................................14
Figure 6: Design of Egg Coffee product........................................................................................16
Figure 9: Supermarket quantity in Vietnam (source: damac.com.vn)............................................22
Figure 10: convenience/mini store quantity in Vietnam (source: damac.com.vn).........................23
Figure 11: ranking of the leading e-commerce enterprises in Vietnam (source: iprice.vn)...........23
Figure 12: Channel structure of Chocolate Bubbles Coffee...........................................................24
Figure 13: access data of Kenh14 (source: kenh14.vn)..................................................................27
Figure 14: Plastic cups 2 layers lock & lock capacity 750ml.........................................................28
Figure 15: High-class cloth bag......................................................................................................29
Y
LIST OF TABLES
Table 1: Copetition on industry........................................................................................................7
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Table 2: Nescafe's competitors in terms of brand.............................................................................8
Table 3: SWOT of Nescafe.............................................................................................................11
Table 4: Segmentation of Nescafe..................................................................................................13
Table 5: Chemical composition of Chocolate Bubble coffee.........................................................18
Table 6: Pricing structure................................................................................................................20
Table 7: Product’s price of Nescafe................................................................................................21
Table 8: Total advertising cost........................................................................................................25
Table 9: Advertising on Facebook..................................................................................................26
Table 10: The prize structure of Nescafe Contest on Facebook.....................................................29
Table 11: Timeline of action plan...................................................................................................31
Table 12: Sale forecast....................................................................................................................32
Table 13: Expense Forecast:...........................................................................................................35
Table 14: Negative situations and cases may occur that affect the business - Signs......................37
Table 15: Negative situations and cases may occur affecting the business - Solution, Remedial
plan.................................................................................................................................................38
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LIST OF ACRONYMS
FMCG: Fast Moving Consumer Goods
PR: Public Relations
VND: Vietnam Dong
TVC: Television Commercial
ADS: Advertising
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I.
EXECUTIVE SUMMARY:
Nescafe is a famous coffee brand created by Nestle. Nescafe has an
extraordinary market development opportunity when today, in a world that is
constantly moving, busy work is easy to distract our minds, pressure, stress, a cup of
coffee can help them start a new working day full of excitement.
Nescafe is preparing to launch a new instant coffee product line, chocolate
bubble coffee - that combines the bitterness of coffee with a little sweetness of
chocolate and the chewy of bubble. We can effectively compete with many types of
instant coffee because the product offers a unique combination of taste and
convenience. We are targeting specific segments in the consumer market, taking
advantage of the growing interest in food taste and quality yet affordable. The main
marketing objective is to increase the target audience's acceptance of chocolate bubble
coffee by 25%. The main financial goals are to increase Nescafe's first-year sales by
5%, reduce advertising costs, but still retain potential customers.
II.
INTRODUCTION:
1. MISSION STATEMENT
With the mission: Bringing a completely new coffee product of Nescafe,
consumers will feel the delicious taste of coffee along with a special chocolate taste
that is drunk with bubble, everyone can enjoy and creating inspiration for every day to
become more complete.
2. Strategic objectives for the first year:
-
Wide coverage at most supermarkets and convenience stores nationwide
- Increase the first 25% awareness of the target customer's product within 1 year
from 1/2022 to 12/2022, along with that will increase the awareness level by 2%
every month.
- When customers mention to Nescafe Chocolate Bubble Coffee, they will
immediately think of novel products, a product that is associated with a dynamic,
youthful image that impress personality of customer when using it.
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3. Financial Objectives
- 5% increase revenue in the first year for Nescafe
- Reduce advertising costs but still retain potential customers
III.
SITUATION ANALYSIS:
1. MARKET SUMMARY:
1.1 Market Size:
According to Statista, In 2018, Coffee consumption in Viet Nam reached 28,8
million packages and in 2019, the number Increased to 30,4 million packages. Coffee
consumption in 2020 is 29 million packages, reduced 1.4 million packages because of
Covid 19.
1.2 Market Growth:
In the market, manufacturers are introducing new coffee flavors in order to
expand their consumer base because there are more and more types of customers in
Vietnam. Based on their behavior and lifestyle, Coffee manufacturers focus on making
coffee more affordable and convenient like selling coffee cans in convenience stores.
Thus, the population who started to drink coffee is anticipated to grow in the future.
So our prediction is that the coffee market can be strongly increased during 2021-2025
with a growth rate of 8,3%. Based on 2020 with 29 million, the following years will
be 30.8 million in 2020, 31 million in 2022, and 34 million in 2023.
1.3 Market Share
According to Viracresearch, Nescafe was the market leader in instant coffee
consumption in 2019, account for 46.5%, thanks to modern technology, large
production scale and 75 years of experience in the industry.With 3 dominant brands in
the market - Nescafe, Trung Nguyen, and Vinacafe with a combined 75% market
share. Experts said that the war of market share between Trung Nguyen, Nescafe, and
Vinacafe never end in Vietnam instant coffee market.
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Figure 1: Market of instant coffe in Vietnam
1.4 Market Trend
Young people today have many different interests and habits than previous
generations. Especially they have a preference to buy and try many trending products.
In particular, socola coffee with bubble is a drink that is very popular at milk tea store
today, neither too bitter nor too sweet, bringing a completely different and unique taste
to black coffee. Understanding that trend, Nescafe will create a soluble product that is
not only convenient but also as delicious as the socola coffee in the store.
4. MACRO ENVIRONMENT:
2.1. Political Analysis:
Vietnam has long been known for its stable political and security climate, which has
attracted many global investors, including Nestlé.
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Our state's rights and brands preserve coffee, while also supporting product pricing,
facilitating exports to other countries, and providing several tax and land rental
incentives. In addition, the government founded the Vietnam Coffee and Cocoa
Association, or VICOFA, to operate and develop coffee, as well as the state's policy
lines, monopolies to avoid monopoly power, market disputes, and the scope of
interests of enterprises. In the coffee market, Vietnamese coffee's rights and interests
are protected.
Figure 2: Vietnam Coffee - Cocoa Association
2.2. Economic Analysis:
With many new chances for cooperation and integration, Vietnam is on the rise. The
steady and consistent growth of the Vietnamese economy over the last 30 years is
extraordinary. The market's development is heavily influenced by the economic
climate. GDP per capita increased 2.7 times between 2002 and 2020, reaching roughly
2800 USD. With more than 45 million individuals exiting poverty, the poverty rate has
dramatically
increased from 32% in 2011 to under 2% now. Vietnam's economy has been heavily
damaged by the COVID-19 epidemic as a result of its deep economic integration, but
it has demonstrated remarkable resilience. The Delta virus variation, on the other
hand, comes as a shock to Vietnam, with GDP growth forecasted at 2-2.5 percent in
2021.
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Figure 3: GPD
Nescafe, which belongs to the food and beverage business and has a significant
impact on people's income, is still affected by the pandemic due to shifting
customer’s consumption needs.
2.3. Social Analysis:
Coffee has been a popular beverage in Vietnam for a long time. Vietnamese people
have made coffee a habit, and it has become an indispensible part of daily life,
contributing to the development of a distinct coffee culture. They compete with one
another to learn and share a variety of coffee-making techniques so that they can taste
more flavors from the West or local coffee. Nescafe has a long history in the coffee
industry, and its quality and reputation are well-known among consumers.
Nescafe has a good chance of breaking into the Vietnamese beverage market,
especially with the debut of Chocolate Bubble Coffee.
2.4. Technological analysis:
Currently, the Swiss Nestlé Organization has established and operates six plants in
Vietnam, all of which were planned and built to fulfill the highest quality standards
across the group and to comply with Vietnamese environmental laws. Nestlé Vietnam
has committed to investing US$132 million to double the capacity of high-quality
coffee production at the Nestlé Tri An factory in Dong Nai province, with the goal of
transforming Vietnam into a production hub and submitting high-value approved
coffee to domestic and international markets.
The latest technology will be used to process coffee to produce excellent, safe, and
hygienic coffee on a production line with a capacity of 20,000 tons per year.
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Figure 4: Inside the decaffeinated instant coffee production area in Dong Nai
2.5 Environmental Analysis:
Nestlé is always concerned about the problem environment and is committed to
implementing environments that protect operations, as well as pursuing continuous
improvement goals to meet the School of Systems Management Environment's
criteria.
To reduce environmental effect, all Nestlé servers in Vietnam fulfill environmental
pollution regulations, use cutting-edge technology in production and execution, and
rely on renewable energy. Nescafe is also a co-founder of the Vietnam Packaging
Recycling Organization and a member of the Ministry of Natural Resources and
Environment's Alliance Against Plastic Umbrellas.
=> Nescafe not only offer high-quality coffee but also made Vietnam's environment
green
5. COMPETITORS:
3.1. Copetition on industry:
Nowaday, only Phindeli coffee and Mac Coffee has instant chocolate coffee on the
market, so it can be said that Phindeli is an industry competitor for Socola Bubble
Cofffee of Nescafe.
Strenghts
Socola coffee – Phindeli Socola instant coffee –
Coffee
Mac Coffee
- Abundant supply of - A large corporation in
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coffee
Having
a
good
reputation in the US,
creating an advantage to
impress customers.
- Top quality coffee
Weaknessses
- Newly entered the
Vietnamese market
- There is no place in the
hearts
of
customers
because the price is a bit
expensive
- Not much experience in
doing business in Vietnam
market
Price
105.000đ
Table 1: Copetition on industry
the world
- Technology and capital
are strongly supported
- The consumption habits
of
customers
are
becoming more and more
modern and demanding.
- Many strong competitors
in the market
35.000đ
Besides, there is competition from famous coffee shop chains such as Phuc Long,
Starbuck, The coffe house.
3.2. Competition on brand:
WEAKN STRENG
Vinacafe
Trung Nguyên
- Vinacafe is the most chosen by
-
Trung Nguyen's instant coffee
products are ranked first in
Vietnamese people.
t
f di
it
- The constant change of signs,
- The product line is not diverse
colors, packaging, and designs
- The packaging is not eye-
k itofi brandibl f
Table 2: Nescafe's competitors in terms
t
3.1 Substitute products:
Competitors in the same industry: all manufacturers of instant beverage
products such as Milo, Dutch Lady instant milk powder, Cozy….
Competitors for use are all kinds of beverage and beverage products such as
LaVie, C2, Sting, Red Bull…. And other caffeinated drinks such as green tea, black
tea, Espresso, Cappuccino, Macchiato, etc.
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6. SWOT
STRENGTHS
WEAKNESSES
As a brand of Nestle, it also has
strong
financial
backing
and
it is difficult for first-time
available resources.
consumers to choose.
Highly invested in advertising and
from abroad, so it is not possible
Diverse product portfolio. This
to deeply understand the coffee
gives them a large variety of
taste of Vietnamese people.
of their customers.
Having a nationwide distribution
Abundant
coffee
Marketing efforts have not yielded
high results.
channel system
Nescafe is a brand originating
marketing
products to suit the different tastes
Products have so many types that
There is no experience in
combining coffee with socola and
sources
bubble.
with
reputable suppliers - quality and
available in the country
Striving for a green industry (using
recycled materials and choosing
materials from renewable sources
whenever possible)
Experience in the coffee industry
OPPORTUNITIES
THREATS
Cooperation: It can link up with
Consumers who are more
various companies, educational
concerned about their health tend
institutes, and other public
to stay away from beverages with
enterprises to gain market share
caffeine content.
and drive profits.
In fact, recently, the area of aging
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Society is increasingly modern,
coffee has increased in the
life is busy, everyone's pace of
Central Highlands provinces, the
life is faster, so instant coffee and
yield has decreased by up to 50%,
canned coffee are considered a
negatively affecting the output as
convenient product, so they easily
well as the quality of coffee beans
accept unique products and as
in the country and for export.
fresh as instant socola bubble
The impact of covid 19 has led to
coffee
an increase in the price of raw
The market growth rate and the
materials, leading to difficulties
growing demand for coffee create
in the production
profitable opportunities for Nestle
There are many competitors, from
to market a more ready-to-drink
big manufacturers: Trung
coffee market.
Nguyen, Vinacafe, to coffee shop
Vietnam is a potential market and
chains such as Phuc Long,
Vietnam joins the WTO to ensure
Starbuck, The Coffee House, etc.
product quality
Customer needs are complex and
The instant coffee market is
affected by many factors
saturated, lack difference in taste
A wide variety of alternative
Nescafe launches new products,
products are increasingly gaining
creating competitive advantages
the trust of customers
Table 3: SWOT of Nescafe
7. SEGMENTATION - TARGET - POSITIONING STRATEGY
5.1 Segmentation
Segmentation
Variables
18-22
23-30
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Geographic
Demographic
Region: focus on big cities,
Region: focus on big cities,
near buildings, downtown,
near buildings, downtown,
etc.
etc.
Gender: both
Gender: both
(males and females)
(males and females)
Age:18-22
Age: 23-30.
Family life cycle:
Family life cycle:
independence, coupling
independence, coupling
stage.
stage, newly married
Occupation: College
couple.
students, part-time
Occupation: employees,
employees, employees,
whitecollar workers
Income: low to medium
Income: medium to high
income or only pocket
income.
money
Social class: middle to
Social class: low to middle. upper.
Psychographic Personality attributes:
Personality attributes:
busy, ambitious, hustle and
busy, stable, responsible,
bustle, time and sanity
hustle and bustle, coffee
needed.
drinking habit
Motives: sanity, flavor,
convenience
Motives: sanity, flavor,
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convenience, habit
Lifestyles: Sensitive to
technology, advertising,
Lifestyles: hard working,
youthful, pursue new
gourmet coffee drinkers,
trends, experiences. Ask for pursue new trends,
friend's advice
experiences selectively,
personal opinions. Ask for
friend's advice
Behavioristic
Usage rate: low to heavy
Usage rate: medium to
product users.
heavy product users.
Benefit expectation: coffee
Benefit expectation:
product that suits their
convenience, sanity, tasty
taste, convenient, helps
coffee
them stay awake.
Price sensitive: budget
Price sensitive: growing
management for other
money awareness, limited
purposes like family, etc
budget.
Loyalty status: medium
Loyalty status: low loyalty, loyalty, may consider other
always look for new things.
Table 4: Segmentation of Nescafe
5.2 Target:
Nescafe will focus on two main customer groups including 18-22, 23-30 because
Nescafe's Chocolate Bubble Coffee meets most of the needs for taste, convenience,
and mental alertness…
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Besides, Nescafe intends to use a variety of social media such as TV advertising,
magazine advertising, online advertising, etc. Thanks to those means, the product
information will be disseminated to customers. target customers and create motivation
to buy. On Vietnam's most popular social networking platform, Facebook, Nescafe is
strongly promoting its youthful products such as Nescafé Cappuccino, Nescafé Latte,
and now Chocolate Bubble Coffee. suitable for young customers who spend a lot of
time using social networks. Thus, it is easy to see that Nescafé is applying a very
effective marketing strategy to differentiate its products
Differentiated market stategy:
Nescafe uses a differentiated marketing strategy for all of its products by
creating a wide variety of products to suit the different tastes of its customers. And
probably, Socola Bubble Coffee was created with this spirit. Socola Bubble Coffee is
suitable for all ages and genders. Those who especially like the aroma of coffee along
with the bitter taste of chocolate and the chewiness of bubble
5.3 Positioning:
With the mission of creating high-quality coffee cups for everyone to enjoy,
Nescafe’s socola bubble coffee prioritizes building strong coffee flavor, made from
pure Vietnamese instant coffee blended with quality bubble and chocolate flavor and
reasonable price to make its products competitive compared to other products on the
h price
market. Therefore, Socola bubble coffee Hig
product
always bears in mind because of high
quality, and seductive aroma not only through TVCs but also throu
of consumers.
Positioned as
coffee prod
"Chocolate Bubble C
ble Sweatn
evoke creative emotio
m the first s
e
Low Quality
Positioning
map:
High Quali
C h ocola te
B u bbl es C o ff ee
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Low price
0
Figure 5: Positioning map
8. MARKETING MIX STRATEGIES:
6.1. Product:
6.1.1. Levels of products:
Levels of products will be identified to satisfy customers’ needs.
The core benefits:
Individual benefits
Low caffeine content
Bittersweet
The aroma of chocolate
Soft tough bubbles
Functional benefits
Refresh
Increase focus and alertness at work
Relax, reduce stress, weariness
Emotional benefits
- Professional attitude Professionals who have a "gout" to enjoy coffee
- Bringing people together who have similar interests and passions
Mission: "In the simplest way, bring a cup of chocolate bubbles coffee with the
most real sensation."
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6.1.2. Individual Product
Product attributes:
Quality: Chocolate pearl coffee is made from 100% high-quality Vietnamese Robusta
coffee beans, and is a bitter blend of coffee and cocoa with the sweetness of milk and
the softness, toughness from bubbles
Features:
The danger of being substituted will be minimized because this is the first instant
chocolate bubbles coffee product in Vietnam and the globe market.
The reason for the distinction is due to Nescafe's proprietary technology: To
generate a thin coating of roasted coffee, the product is treated using modern
technology - proprietary Micronized Roasted Coffee (MRC) technology.
Preparation is made easier with the help of suitable packing.
Style and design: a rich brown hue reminiscent of coffee beans and chocolate,
with black bubbles embellishments
Chocolate
BubblesCoffee
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Figure 6: Design of Egg Coffee product
Brand Elements:
Brand mane: NesCafé is a well-known coffee brand that holds the world's top spot in
instant coffee.
Slogan: Nescafe is the top unit, providing "global coffee flavor" to Vietnamese
people with the worldwide tagline "A New Day Begins."
Chocolate Bubbles Coffee, Nescafe's newest product, debuted with the phrase
"Chocolate Bubble Coffee – Double your sweetness" offers customers a distinctive
flavor together with alertness, attention, and concentration. attention, stress reduction,
and increased multi-productivity at work
Packaging: Packed with 6 x 12g boxes. Chocolate bubbles coffee's exterior
package is eye-catching, including pictures of pure ingredients like chocolate and
Vietnamese coffee. customers will readily sense the Vietnamese essence via the
package, which features an image of a coffee grove in the highlands of Vietnam. The
Nescafe logo appears at the upper center of the box.
Labeling: ingredients, directions for use, expiration date, and manufacturing location
are all included on the label.
The chemical composition of the product
By vegetable cream
Milk Protein
Emulsifier
Sugar
Chocolate powder (7%)
Starch
Instant Coffee (14%)
Stabilizer
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