Branding strategy for hura player cake for the period of year 2011 2015 master project in business and marketing management

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TRƯỜNG ĐẠI HỌC MỞ TP. HCM
HO CHI MINH CITY OPEN UNIVERSITY

UNIVERSITEÙ LIBRE DE BRUXELLES
SOLVAY BRUSSELS SCHOOL

MBMM4
Nguyen Hong Quan

BRANDING STRATEGY
FOR HURA CAKE
FOR THE PERIOD OF YEAR 2011 - 2015
MASTER PROJECT
MASTER IN BUSINESS & MARKETING MANAGEMENT

Tutor: Dr. Nguyen Thang
Mentor: MBA. Le Dang Lang

Ho Chi Minh City
(2010)


i

DECLARATION

I declare that this thesis does not incorporate without acknowledgment any material
previously submitted for a degree or diploma in any university; and that to the best
of knowledge it does not contain any materials previously published or written by

another person except where due reference is made in the text.

……………………
Signature of Student
Nguyen Hong Quan
MBMM4


ii

TUTOR’S COMMENTS

Author tried to apply the knowledge and practical analysis to the thesis and
provided

many

interesting

solutions

for

the

brand

strategy

of

Hura.

The thesis objectives were clearly and rationally defined, the structure is also
logical.
In summary, the thesis meets the requirements for the final project of Master of
Business and Marketing Management Program. I hereby propose this thesis to be
presented in front of examiner board.

Signed:

Dr. Nguyen Thang


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COMPANY COMMENTS

Mr. Nguyen Hong Quan presented a good solution strategy and in-depth analysis of
the Hura cake – the best trademark of Bibica Corporation. He displayed a thorough
knowledge of marketing strategy and marketing concepts in this thesis.
He was able to present the marketing strategy in a way that will be useful to
management in making strategic decision knowing full well the relationship of the
brand strategy.
We are impressed with the details of his presentation; some ideas will be applied to
our business plan.
We appreciate his practical suggestions and we wished him successful in his course.

Bibica Corporation

Mentor: Le Dang Lang


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TABLE OF CONTENT

DECLARATION .................................................................................................................... i 
TUTOR’S COMMENTS ....................................................................................................... ii 
COMPANY COMMENTS ...................................................................................................iii 
TABLE OF CONTENT ........................................................................................................ iv 
LIST OF FIGURES & TABLES .......................................................................................... vi 
INTRODUCE ..................................................................................................................... 1 
Project objective ................................................................................................................ 1 
Project scope and limitations ............................................................................................. 1 
Methodology ...................................................................................................................... 1 
CHAPTER 1: BRAND STRATEGY FRAMEWORK ......................................................... 2 
1.1. BRAND OVERVIEW ................................................................................................ 2 
1.1.1. Brand definitions: ................................................................................................ 2 
1.1.2. Brand vision – brand mission and core values .................................................... 2 
1.1.3. Brand identity system .......................................................................................... 3 
1.1.4. Brand positioning................................................................................................. 4 
1.1.5. Brand structure..................................................................................................... 5 
1.1.6. Brand equity management ................................................................................... 6 
1.2. BRANDING PROCESS ............................................................................................. 6 
1.3. BRANDING TOOLS ................................................................................................. 7 
1.3.1. Sales promotion ................................................................................................... 8 
1.3.2. Direct marketing .................................................................................................. 8 
1.3.3. Packaging and design .......................................................................................... 8 
1.3.4. Point-of-sales ....................................................................................................... 8 

1.3.5. Event marketing ................................................................................................... 8 
1.3.6. Publicity and PR .................................................................................................. 8 
1.3.7. Media advertising ................................................................................................ 8 
1.3.8. Direct response .................................................................................................... 8 
1.4. FOUR STEPS TO BUILDING SUCCESSFUL BRANDS ....................................... 9 
CHAPTER 2: HURA CAKE SITUATION ANALYSIS .................................................... 10 


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2.1. INTRODUCE HURA CAKE ................................................................................... 10 
2.1.1. Introduce Bibica Corporation ............................................................................ 10 
2.1.2. Hura cake production line .................................................................................. 13 
2.1.3. Business situation of Hura cake ......................................................................... 15 
2.2. ENVIRONMENTAL ANALYSIS ........................................................................... 17 
2.2.1. Macro environment ............................................................................................ 17 
2.2.2. Target consumer ................................................................................................ 22 
2.2.3. Competitors........................................................................................................ 23 
2.2.4. Distribution channel system .............................................................................. 27 
CHAPTER 3: FIVE YEARS BRANDING STRATEGY OF HURA CAKE 2011 - 2015 28 
3.1. OBJECTIVES ........................................................................................................... 28 
3.1.1. Business objectives ............................................................................................ 28 
3.1.2. Marketing and brand objectives......................................................................... 28 
3.2. BRANDING STRATEGY 2011 - 2015 ................................................................... 28 
3.2.1. Brand vision ....................................................................................................... 28 
3.2.2. Brand positioning............................................................................................... 29 
3.2.3. Brand identity .................................................................................................... 31 
3.2.4. Brand analysis (SWOT) ..................................................................................... 32 
3.2.5. Branding strategy map ....................................................................................... 33 
3.3.1. Product strategy ................................................................................................. 34 

3.3.2. Price strategy...................................................................................................... 34 
3.3.3. Distribution strategy .......................................................................................... 35 
3.3.4. Communication.................................................................................................. 38 
3.3.5. Marketing plan and budget 2011 ....................................................................... 40
CONCLUSION ................................................................................................................... 42
APPENDIX

................................................................................................................... 43

REFERENCES ................................................................................................................... 49 


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LIST OF FIGURES & TABLES
List of Figures
Figure 1.1: Brand Identity system
Figure 1.2: Brand structure
Figure 1.3: Brand relationship
Figure 1.4: Branding process
Figure 1.5: Brand Communication (Integrated Marketing Communication)
Figure 1.6: Michael Foster five forces model
Figure 1.7: Four steps to building successful brands
Figure 2.1: Hura cake turnover during last 3 years. Source Bibica.
Figure 2.2: Hura cake contribution in total revenue. Source Bibica.
Figure 2.3: Hura cake proportion of total revenue. Source Bibica.
Figure 2.4: Value consumption increases across groups, with positive pictures from
Beverage and Food products. Source Nielson Vietnam
Figure 2.5: Value share at 6 city of FMCG. Source Nielson Vietnam
Figure 2.6: Value share of cake industry in VN. Source Nielson VN.

Figure 2.7: Bibica cake performance at 30 cities. Source Bibica
Figure 2.8: Price segment contribution at 36 cities. Source Nielson VN
Figure 2.9: cake analysis by places of usage. Source Nielson VN
Figure 2.10: Pie manufacture in Vietnam comparative. Source Nielson VN
Figure 2.11: Pie product groups. Source Nielson VN
Figure 2.12: Value share comparative at 6 cities. Source Nielson VN
Figure 2.13.: Hura and Solite vs by value share at 6 cities. Source Nielson VN
Figure 2.14.: Map of Bibica distribution channel. Source Bibica
Figure 3.1: Price comparative of cake at 6 city of FMCG. Source Nielson Vietnam
Figure 3.1: Map of Hura branding develops strategy
Figure 3.2: Map of Bibica distribution channel. Source Bibica
Figure 3.3: Price strategy
Figure 3.4: Price comparative of cake at 6 city of FMCG. Source Nielson Vietnam
Figure 3.5: channel setup mission
Figure 3.6: “Love Bus” reseasch report
List of Tables
Table 2.1: Hura cake turnover during last 3 years
Table 3.1: SWOT analysis. Source Bibica.
Table 3.2: Value share of Hura - SWOT analysis. Source Bibica.
Table 3.3: Hura cake line – price brackdown. Source Bibica.
Table 3.4: Master activities and budget plan 2011.


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INTRODUCE

Project objective
This project delivers the three following objectives:

- To give an overview about Vietnam cake market
- Develop a brand strategy to achieve the business goals for the next 5 years
operation.

- To suggest some marketing activities to improve brand equity
Project scope and limitations

- This thesis focuses on branding and marketing of Hura cake and applied for
Vietnam pie market
- focuses on proposing marketing communication strategy fitting with target
consumer insights
Methodology

- SWOT analysis
- Research methodology
 Secondary data: we collect information from existing reports of TNS,
Nielsens, Bibica reports, Economic Time …

 Primary data: conducting survey consumers, and collect all information
related.

 About quantitative research: we use face-to-face interviews. We do the
research with consumers around 18 - 35 years old living in Ho Chi Minh
City, Can Tho and Da Nang. Number of samples is around 830.


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CHAPTER 1: BRAND STRATEGY FRAMEWORK
This chapter will introduce some concepts and theory about brand building. Inside this

concept and theory, there will be some models to drive the process of branding, it also
gives the methodology to do this thesis research, and those models helped many brands
success.

1.1. BRAND OVERVIEW
1.1.1. Brand definitions:
The word "brand", when used as a noun, can refer to a company name, a product name, or
a unique identifier such as a logo or trademark. Today's modern concept of branding grows
out of the consumers packaged goods industry and the process of branding has come to
include much, much more than just creating a way to identify a product or company.
Therefore, we can say that branding today is used to create emotional attachment for
products and companies. Branding efforts create a feeling of involvement, a sense of
higher quality, and an aura of intangible qualities that surround the brand name, mark, or
symbol. So what exactly is the definition of "brand"? Let us cover some definitions first
before we get too far into the branding process.
American Marketing Association
"A brand is a name, words, symbols, logos, graphics designers, ... or set of factors to
identify and distinguish goods or services of a person or group selling goods and
services of competitors. "

Patricia F. Nicolino
"Branding is an entity determined to create its own commitments in terms of value."

Al Ries
"Branding is an idea or a unique concept in mind your customers when they heard of
your company."

Stuart Agres
"A brand is a set of specific commitments, linking a product to the customer."

1.1.2. Brand vision – brand mission and core values
• Brand vision


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Brand vision is a part of corporate vision. It is a short, succinct, and inspiring statement of
what the organization intends to become and to achieve at some points in the future, often
stated in competitive terms. Vision refers to the category of intentions that are broaden, all
intrusive and forward thinking. It is the image that a business must have its goals before it
sets out to reach them. It describes aspirations for the future, without specifying the means
that will be used to achieve those desired ends.
The brand success depends on the vision articulated by the chief executive or the top brand
management. For a vision to have any impact of the employees of an organization, it has to
be conveyed in a dramatic and enduring way. The most effective visions are those that
inspire, usually asking employees for the best, the most or the greatest. To make sure firm
keep stretch in its vision, communicate constantly and keep linking the events of today to
its vision, underscore the relationship between the two.
• Brand mission
A brand mission statement is a brand's vision translated into written form. It concretes the
leader's view of the direction and purposes of the organization. For many corporate brand
leaders, it is a vital element in any attempt to motivate employees and give them a sense of
priorities. A brand mission statement should be a short and concise statement of goals and
priorities. In turn, goals are specific objectives that related to specific time and stated in
terms of facts. The primary goal of any brand is to increase stakeholder value. The most
important stakeholders are shareholders who own the business of brand, employees who
work for the business and clients or customers who purchase brands and/or service from
the brand.
• Core values
Core values of the brand represent the business philosophy that it is pursuing brand,

construction and implementation. This is a promise or commitment of the brand (company)
for customers, shareholders, employees and communities.

1.1.3. Brand identity system
Brand identity is a set of associations that the brand aspires to create or maintain. It is the
planned expression of the brand values, the input perspective. The way brand identity is
perceived by consumers and other stakeholders constitutes the brand image – the output
perspective. Brand image, then, is the sum of intended brand identity and any other signs
the brand gives to consumers, including its relative positioning against competitors.
The development of brand identity relies on a thorough understanding of the firm’s
customers (and other stakeholders), competitors and its own business strategy. The
stakeholder analysis must not only uncover target market characteristics, but also their
motivations and unmet needs. Studying competitor’s positioning strategies is a key to


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developing a differentiated brand identity. At the same time, brand identity needs to reflect
the business strategy of the firm, its values and the ability to deliver them consistently.

Figure 1.1: Brand Identity system (Source: David Aaker and Joachimsthaler (2000)

1.1.4. Brand positioning
Brand positioning is an important strategy for achieving differential advantage. Positioning
reflects the "place" a product occupies in a market or segment. A successful position has
characteristics that are both differentiating and important to consumers. Every brand has
some sort of positioning — whether intended or not. Positioning is based upon consumer’s
perceptions, which may or may not reflect reality. The positioning is effectively built by
communicating a consistent message to consumers about the product and where it fits into
the market — through advertising, brand name, packaging and other brand activations.

Positioning is inextricably linked with market segmentation. We can’t define a good
position until firm have divided the market into unique segments and selected your target
segments. Consumers make brands famous for many reasons, of which the most important
is that they come to trust brands as friends. That is why deciding on the brand- positioning
strategy is such an important part of brand strategy. However, there are ways in which the
brand may be presented differently to various target audiences.
It includes eight elements are:
 Market definition: The product and service areas in which the brand wants to
operate.
 Consumer target: person the brand must excite and involve. Who are the buyers?
 Consumer insight: Human truth that opens door to opportunity for brand to improve
everyday life.
 Key benefits:the key motivations for buying brand.
 Differentiations: What the brand offers, and why it is better than alternatives.
 Brand personality: human characteristics guiding tone, feel and style
 Brand values: Guiding principle and beliefs.


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

Brand essence: Shorthand distillation of the brand’s reason exit.

1.1.5. Brand structure
Brand structure (brand architecture): Brand architecture is the way in which the brands
within a company’s portfolio are related to, and differentiated from, one another. The
architecture must defines the different leagues of branding within the organization; how the
corporate brand and sub-brands relate to and support each other; and how the sub-brands
reflect or reinforce the core purpose of the corporate brand to which they belong. The

following model, proposed by Aaker, maps out the different elements of brand architecture

Figure 1.2: Brand structure

Figure 1.3: Brand relationship


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1.1.6. Brand equity management
- In Managing Brand Equity, brand equity was defined as the brand assets (or
liabilities) linked to a brand’s name and symbol that add to (or subtract from) a product or
service. These assets can be grouped into four dimensions: brand awareness, perceived
quality, brand associations, and brand loyalty.
- Brand awareness is an often-undervalued asset; however, awareness has been shown
to affect perceptions and even taste. People like the familiar and are prepared to ascribe all
sorts of good attitudes to items that are familiar to them. The Intel Inside campaign has
dramatically transferred awareness into perceptions of technological superiority and
market acceptance.
- Brand loyalty is at the heart of any brand’s value. The concept is to strengthen the
size and intensity of each loyalty segment. A brand with a small but intensely loyal
customer base can have significant equity.

1.2. BRANDING PROCESS
The process of building strong brands is described as follows:
Marketing Researh

Internal Research

Analyze and evaluate information

Build brand visibility
Brand strategy
Brand positioning
Brand identity system
Brand design
Advertise Brand
Assess and improve brand
Figure 1.4: Branding process


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1.3. BRANDING TOOLS
Integrated Marketing Communication or Brand communication is the art of bridging the
gap between our target audiences and the organization (or product or service) we are
promoting. It is the ethereal connection between the physical entity, and the audiences we
believe are best suited to its purchase or promotion. It can therefore be argued that a brand
only exists when this link has been made i.e. a brand is only a brand when it is
communicated effectively. A brand that remains hidden is only an experiential brand - that
is to say, it is only our existing customers who know the brand. Good brand management
demands proactive brand communication to ensure we are managing our reputations as
positively as possible

Figure 1.5: Brand Communication (Integrated Marketing Communication)
Central to modern marketing management is the concept of ‘integrated marketing
communications’; the planning and execution of all types of communication to meet a
common set of objectives for the brand. The aim is to support a single positioning through
advertising, PR, or co-branding.
A holistic view of the brand should be pursued. This is not to say that there must be one
rigid, omnipotent message, rather it suggests that the messages conveyed by different

media need to interconnect. They all need to tell broadly the same story. There is nothing
to be gained from promising one thing in your advertising and not being able to deliver at
the point of sale.
The elements of brand communication are below:


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1.3.1. Sales promotion
Sales promotion: Materials that act as a direct inducement, offering added value, or
incentive for the product, to resellers, sales persons or consumers. Sales promotion is the
marketing tools designed for immediate (short-term) increase in product sale.
1.3.2. Direct marketing
This marketing tool uses proactive programs to communicate to customer, and promote
sales. Those tools are Direct Mailing, Product sampling, Door-to- door sales, Toll-free
sales.
1.3.3. Packaging and design
This tool is designs product, label, logo and other brand identity systems. Sometime we
must re-design some related brand’s elements.
1.3.4. Point-of-sales
Point-of-sales: the physical location at which goods are sold to customers. It includes
leaflet, shop design, sticker, bag, gift…
1.3.5. Event marketing
Sponsorship and other brand communication activities: sport events, Music events, others
social event…
1.3.6. Publicity and PR
This tool is through independent media station to endorse for brand image. Those
activities are Press relations Activities, Socialized Activities, Hospitality…
1.3.7. Media advertising
Using mass media channel communicates to customer. It includes print, Television,

Billboard, other outdoor …
1.3.8. Direct response
Direct response: a type of advertisement that allows recipients to respond directly to the
sender to order a product/service or get more information. Common methods of response
include mail, telephone and email. Nowadays, this tool is very important for any brand,
because there are many messages from many brand to communicate to customer, and every
brand must applies new technology to contact direct customer.
Michael Foster five forces model

Figure 1.6: MF five forces model


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1.4. FOUR STEPS TO BUILDING SUCCESSFUL BRANDS

Figure 1.7: four steps to building successful brands


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CHAPTER 2: HURA CAKE SITUATION ANALYSIS

2.1. INTRODUCE HURA CAKE
2.1.1. Introduce Bibica Corporation
Bibica Corporation was started from a candy shop of the Bibica sugar factory,
established in 1968. On Dec.1998, by the Decision No. 234/1998/QD-TTg of the Prime
Minister, the shop was officially converted into Bibica Corporation (Bibica)
Over a period of six years, Bibica grew into a large company with two
manufactures and several branches. Bibica was one of the leading confectionery companies

in Viet Nam and was considered by locals to be a “Manufacturer of high quality
Vietnamese products”. Bibica had a wide range of products which included: biscuits,
cookies, layer cakes, moon cake, snacks, hard and soft Candy, jelly, chocolate, instant
cereals and glucose syrup. In addition to these products that also sold many nutritional
products including: sugar-free confectioneries and low GI instant cereals, sugar free
chocolate, baby food
Bibica’s equipments were constantly being modernized. Most of them were imported
from well-known manufacturers in Europe in order to ensure that these products were
always delicious and able to meet the strictl requirements imposed on foods produced for
the export market. Moreover, all of the supplies used had to meet strict hygienic and safety
standards. At the time its quality control system was in accordance with the requirements
of the quality standards ISO 9001:2000. In addition, its production and supply of layer
cakes conformed to the requirements of HACCP CODE: 2003.
Bibica had a large share of the Vietnamese market. In addition, its products were
exported to the United State, Japan, Singapore, Philippines, Taiwan, SouthAfrica and
Cambodia. Howerver, as the food and beverage market in Vietnam had become more
competitive, the company was forced to find new potential markets in order to meet its
target sales.
Bibica Confectionery Corporation’s development
The precursor of Bibica Confectionery Corporation was a group of three production
lines: the candy line was imported from the Europe, the biscuits line was imported from
Britain and the glucose syrup line from Taiwan. Eventually the company domesticated its
production and produced its first series of Vietnamese made biscuits and candies in 1993.
They were distributed throughout the country.


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After receiving positive feedbacks from the local market, the company continued to
invest in a new assembly line for producing cookies in 1996 and for Jelly in 1998. After

that, the company became one of the leading confectionery manufactures in Vietnam
producing a range of products, which at that time included: biscuits, cookies, hard and soft
candy, Jelly and starch syrup.
In the beginning of 1999, Bibica was established. Its brand name, the abbreviation of
Bibica’s biscuits and candy, was Bibica. The company’s initial chartered capital was
twenty-five billion VND with which the company rebuilt its distribution system in 2000.
Branches in Can Tho, Da Nang, Ho Chi Minh City and a factory in the North of Vietnam
(Ha Noi) were set up to meet the market demand. In 2001, moon cakes and fruit- filled
biscuits were produced for the first time. At the end of 2001, the company installed a layer
cake assembly line.
In April 2002, Bibica establish a second factory in the North of Vietnam (Sai Dong
Industrial Zone, Gia Lam, Ha Noi). In September 2002, the chocolate production line was
in operration. At the end of this year, Bibica implemented the snack project and expanded
the line to produce up to four tons per day.
In 2004, Bibica strong invested in the management of the business (ERP – Enterprise
Resource Planning). 2004 also marked a new step for the company during which the
company moved to start producing a new line of nutritional products in cooperation with
Vietnam’s National Institute of Nutrition in order to meet consumer’s desired for healthy
foods.
From 2008, BIBICA issues shares to raise chartered capital and Lotte invests into
buying shares as a strategic partner with expectation of increasing 30% of chartered
capital. 4.6 million Shares for the first time in the second stage are sold to Lotte. These
shares are not transferable within 2 years.
Capital from issuance is invested into two projects: BIBICA eastern company (the
second stage) in Binh Duong province and BIBICA northern company in Hung Yen
province. Cooperating with Lotte creates great opportunities for BIBICA in the next time
because Lotte has experience in confectionary field, ability to support BIBICA to expand
market, develop operation, technology, consult & orient strategies, advice finance and new
chances for investment projects. Revenue of Bibica in 2010 on estimated around 1,000
billion VND.

Achievements
Bibica was choosen by consumers as a “Manufacturer of high quality Vietnamese
products” for 13 years by local consumers from 1997 to 2010. It was also the first
confectionery manufacturer in Vietnam granted certificate ISO 9002:1994 on January 22,
2000. Since then, Bibica Corp.’s control has continuously improved.


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On September 24, 2004 it obtained certificate ISO 9001:2000 from BVQI. From 2002
to 2004, Bibica supplied fortified biscuits for the School Nutrition Assistance Program, a
program financed by the United States Department of Agriculture in cooperationnn with
Land O’Lakes Company.
Bibica was choosed by Sai Gon Tiep Thi Magazine one of the top five Vietnamese
confectionery manufacturers. The company received a gold cup from the Vietnamese
Ministry of Health for its efforts to improve the human health and safety in its production
plants.
Bibica special honor to be awarded "Vietnam Gold Star Award" top 100 enterprises in
2010.
Technology and Machinery Capacity
Hard candies and soft candies: Bibica was one of the larggest candy manufacturers in
Vietnam with annual capacity of 10,000 tons of candies which were produced from high
quality materials; especially enzyme hydrolyzed starch syrup which ensured a much better
taste than that of candies produced by other manufacturers.
Starch syrup: Starch syrup was made by enzyme hydrolysis of tapioca, purified and
decolorized by active carbon and icon exchange technology creating a syrup that was
almost transparent (I0 can be less than 10) and considered one of the best starch syrups in
Vietnam.
Layer cakes: Layer cakes were produced on a brand new synchronized production line
built in Italy using high-quality, raw materials from Europe and built in accordance with

strict sanitary and food safety control procedures. The layer cakes have a shelf life of up to
one year instead of one week that most normal cakes have. Bibica was the pioneer
manufacturer of layer cake product in Vietnam and was able to produce annually over
1,500 tons “Hura” brand layer cakes.
Chocolates: Chocolates were produced on the production line built in England using raw
materials and technology from Europe which allowed Bibica to produce chocolate
products comparable to those imported from Europe. Its annual capacity was over 600 tons
of chocolate products.
“Bibica leading confectionery company with a strong brand name”
Currently Bibica is thesecond largest listed confectionary company, accounting for 7-8%
market share of domestic sweet and cake. Possessing a strong brandname which is
particularly important in consumer product sector and the confectionery industry, Bibica
also benefits from the strategic partnership with Lotte Confectionary (Korea). The
company has become the exclusive Vietnamese distributor for Lotte’s confectionary


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products since May 2008. In exchange, Lotte offers supports to Bibica in R&D,
technologies, product enhancements, and marketing. Bibica’s extensive distribution
network and its established presence in the market, coupled with techonology expertise and
experience from one of the leading confectionery makers like Lotte will be strong
foundations to set the company apart from its peers.
Traditionally, Bibica is strong in manufacturing candies while Kinh Do leads the cake
segment (crackers, mooncake, and layer cake). However, with the new cake production
lines at Bibica Mien Dong, Bibica has been growing to be a strong player in cake-making
in recent years.
Deferentiates by targeting niche groups. As competition is getting fiercer from both
domestic peers and overseas confectionary makers, since 2004, Bibica has collaborated
with the National Institute of Nutrition to commercialize nutrition rich products such as

Growsure nutrition powder, Mumsure powder milk, and Netsure cereal and dietary
products including sugar-free mooncake, jam, candies, and Hura cake.

2.1.2. Hura cake production line
Hura is a line of fresh industrial cakes including many kinds of cake:

-

Hura layer cake
Hura cupcake
Hura swissroll

Hura Nutritious
But they did’t have a good segmentation by products functional. From 2008 Hura was be
re-segmentation to 03 groups:


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-

Hura Deli: premium product
Hura Minie: tradititional product
Hura BFY (Best For You): Nutritious product but it not belong Hura brand, this is a
part of Nutritious and functional product line.

In 2001, Bibica was beginning to consider the production of Hura cake from a kind of
imported fresh industrial cake- APOLLO- that was a potential product in the Vietnam cake
market. Layer cake is a standard kind of cake in the international cake market, with a
complete production line, and strictly satisfying food safety standards. Most big cake

companies in the world produced this cake. Bibica was the first Vietnamese company that
invested this fresh industrial cake production line with the Hura trademark.

Production and consumption
In the end of 2001, the company installed production lines for Hura cake with an
initial capacity of 5 tons per day. Hura was produced using the highest quality production
techniques in order to maintain an unique product with premium quality and safety.
Technology
At first, the moist cake, which uses a lot of eggs and fat, should be very easy to roll flat out
to make small cakes in the process of circulation. This makes the cake lslightly less
attractive. Also, the top of the cake stuck too the packaging further reducing its
attractiveness.


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Bibica spent two months and many efforts to test the product and overcome
technological challenges. Ultimately, Bibica successfully produced Hura cake and
commercialized products in the Vietnam confectionery market
Market
In the early stages, the power of sales was concentrated in the North because Northern
consumer’s customs are to enjoy drinking tea and eating cakes. This was very consistent
with Hura‘s features. In the South fresh cake was considered to be a kind of cake that was
used only occasionally. Fresh industrial cakes were too new, for consumers to immediately
understand and prefer.
Advantages of Hura Cake
Hura, layer cakes are produced using brand new synchronized production line from Italy,
with excellent raw materials from Europe and are under strict sanitary and food safety
control procedures Bibica expected to satisfy Vietnamese consumers’ needs when they use
this product. Those are:







Good, balanced nutrition with egg, milk and fresh cream, and a delicious taste
Small and convenient packaging (20 gram). Each package is individually wrapped
for convenience and guaranteed freshness, easy transportation, and easy use
without kitchen appliances
Long shelf- life (1 year) due to the modern production line.
safe food

Due to the above advantages, and with the initial marketing strategy of "anybody, any
time, any where", Hura quickly infiltrated the domestic market and many consumers used
this product as a gift for visiting relatives.
2.1.3. Business situation of Hura cake
Hura cake turnover during last 3 years:
Sale (mil. VND)
HURA layer
HURA deli
HURA swissroll
Total HURA

2008
204,222
1,502
205,725

2009

193,295
22,932
216,227

2010
172,665
32,834
49,838
255,337

Table 2.1: Hura cake turnover during last 3 years. Source Bibica.


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Figure 2.1: Hura cake turnover during last 3 years. Source Bibica.
Cakes are currently Bibica’s main products, making up 40% of the company’s total
revenue with gross margin of 25-30%. Candies contribute 35% total revenue with gross
margin of 25-28%, moon cakes 10% with gross margin of around 40%, and nutrition/
functional food products with 35-40% gross margin claim the rest.
Bibica’s biggest brand in terms of revenue is layer cake Hura, which constistutes 30% of
the company’s cake sales.

Figure 2.2: Hura cake contribution in total revenue. Source Bibica.


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Figure 2.3: Hura cake proportion of total revenue. Source Bibica.

2.2. ENVIRONMENTAL ANALYSIS
2.2.1. Macro environment
Overview of Vietnam cake - candy market
Like other food and beverage processing industries in Vietnam, the confectionery
industry had been undergoing a process of long-term development. The whole country had
more than thirty enterprises producing confectionary items on a large-scale and hundreds
more small producers. The Bibica Confectionery Corporation accounted for 8% market
share nationwide. Their main opponent was Kinh Do Corporation, which was the leading
confectionary company controlling 20% of the market. They also had other domestic
competitors such as Hai Ha and Hai Chau confectionery companies and Quang Ngai Sugar
Company as well as foreign confectionary products which were imported from China,
Thailand, Indonesia, Hong Kong, Malaysia. However, Vietnamese market, accouting for
around 70% market share, while only about 30% of the market consited of imported
candies.
Because of Vietnam’s increasing population, the confectionary market was also
increasing. In 2000 the confectionery market in Vietnam was worth about one trilllion
VND per year. By 2005, the market had increased to over two trilllion VND per year (a
growth rate of 20% per year). It is estimated that by 2010 the market is expected to reach
four trilllion VND per year. The potential of the Vietnamese candy market created the
desire to increase production and consumption of confectionaries; however, increased


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production would require suitable technology, machinery and equipment in order to
produce products high quality products at a low cost in order to best meet the needs of
domestic and foreign consumers.

Figure 2.4: Value consumption increases across groups, with positive pictures from
Beverage and Food products. Source Nielson Vietnam

Vietnamese confectionery manufacturers had almost no competition in the
confectionery market segment which targeted low to average income consumers,
especially since each manufacturer had created a unique niche for them by specializing in
the production of certain products. For example, Hai Ha specialized in producing wafers,
Duc Phat was knownn for fresh bread, Kinh Do produced biscuits and Bibica Corp had a
monopoly on the production of candy and layer cake.
Pie & Biscuits in the FMCG (FMCG):
In 2010, the FMCG sector increased by 15% compared to 2009. In particular, the growth
of 11% of the food groups is highly contributing to the growth of FMCG. But this increase
is not equal to the increase of the whole industry, so the market value of the food groups
decreased from 17.6% (2009) also 16.9% (2010).