Đầu tư sản xuất và phân phối café sang trung quốce

ĐẦU TƯ SẢN XUẤT VÀ PHÂN PHỐI CAFÉ SANG TRUNG QUỐC
INVESTMENT RATE AND DISTRIBUTION OF COFFEE TO CHINA

CONTENTS

I. COMPANY OVERVIEW VINACAFE
II. PRODUCTS AND PRODUCT LINES
1. Products
2. Product line
3. Current business situation Vinacafe
III. WHY INVEST IN CHINA
1. The society-economic conditions of China
2. Infrastructure
3. Distribution channels
IV. STRENGTHS AND LIMITATIONS OF THE CHINESE MARKET
ENTRY
1. Strengths
2. The limitations
V. STRATEGY ENTERING THE CHINESE MARKET
1. Products
2. Pricing policy


3. Investment focus areas
4. Promotion Policy
5. Develop promotions for each channel
6. Revenue and market share

I . INTRODUCTION OF VINACAFE COMPANY AND THEIR PRODUCTS
1. About Vinacafe
- Full Name: Café Bien Hoa Joint Stock Company

- International name: Café Bien Hoa Joint Stock Company
- Abbreviation: Vinacafe
+ 1975 - Bien Hoa Coffee Factory Unified Vietnam, Coronel family returned to
France. They handed over the machine for the Provisional Government of the
Republic of South Vietnam. Coffee Plant Coronel was renamed Bien Hoa Coffee
Factory and is assigned to General Management Food Technology. At the time of
delivery, Factory Coffee Coronel has not tested successfully by even very
passionate about work, but which is an agricultural engineer, Mr. Marcel Coronel


not found how to "tame" the chain complex system including many machine
machinery, equipment and processing coffee.

+ 1977 - Vietnam successfully produced instant coffee, on the occasion of the
second anniversary of unified Vietnam, fresh coffee First the oven for the joy of all
officers and employees Factory. During the previous two years, a collective of
engineers, workers days and nights together to explore, to be able to study
successful operation factory. 1977 marked an important milestone of the coffee
plant Bien Hoa and also Vietnam's coffee industry: first, Vietnam successful
production of instant coffee.

+ 1978 - Vietnam Coffee abroad Under Protocol Vietnam signed with countries in
the socialist system of barter, from 1978, Bien Hoa Coffee Factory started to export
coffee soluble coffee to the countries of the former Soviet Union and Eastern
Europe.

+ 1983 - Brand Vinacafé birth During the 1980s, Bien Hoa Coffee Factory has
improved research technical progress for the construction of standard production
processes, just coffee production soluble coffee exports under government orders.
With address production is recorded on each packaging of products, name

"Vinacafe" the start appear in the Eastern European market starting from 1983,
marked the moment brand Vinacafé life.
+ 1990 - Official Vinacafé back Vietnam: In the late 1980s, the single order coffee
Vinacafé days decreases, with the speed of changes in the disadvantage of the
socialist system in Soviet Union and Eastern Europe. 1990, official Vinacafé turned
back Vietnam even before some of the products Coffee Factory would have been
consumed in this market.


+ 1993 - Birth of instant coffee 3 in 1 : When you return to Vietnam, the product of
Bien Hoa Coffee Factory difficult to find a foothold, so that Vietnamese coffee
market

has

been

haped by the habit of drinking coffee roasters doped (main implications from clean
rivers prohibiting coffee led to a shortage of raw materials, it is corn fillers and
other additives to coffee). Along with the toddler steps of Vinacafé, also the first
Vietnamese to the coffee. Instant coffee 3 in 1 Vinacafé birth has been accepted on
the market quickly. The solution of sugar and flour coffee cream prefilled small
package helped the Vietnamese people for the first time first satisfied the habit of
drinking coffee with milk, but not for drip coffee filter. 3-in-1 instant coffee fast
success the brand Vinacafé immediately Bien Hoa Coffee Factory Intellectual
property registration in Vietnam and many countries around the world.
Drip coffee filter-

3-in-1 instant coffee fast success the brand Vinacafé

immediately Bien Hoa Coffee Factory Intellectual property registration in Vietnam
and many countries around the world.
+ 1998 - Second Factory : 1998 marked an important milestone for the outstanding
growth. Home instant coffee processing plant was constructed for the second insite
of the old mill. This plant has a design capacity of 800 tons coffee / year, 10 times
larger than the old factory. Only two years later, new plant was officially put into
operation to meet demand The higher of the domestic market and export.
+ In 2004: JSC Vinacafé Bien Hoa December 29, 2004, Bien Hoa Coffee Factory
transformation of businesses - from state-owned enterprises into joint-stock
companies. Love you brainchild, plus the emergence-known brand Vinacafé, the
founding shareholders (mostly of Bien Hoa Coffee Factory) was new name for the
company is: JSC Vinacafé Bien Hoa (Vinacafe BH). This is the time to open a new
chapter to the history of the company that it planned development strategy,


rewritten porcelain destiny, a new vision and identify your core values, in
Vietnamese context of international economic integration.

II. THE PRODUCTS AND PRODUCS LINES
1. Product line:

2. The products

Roasted – Ground
Coffee

Instant Coffee


Instant Nutrituos

Cereal

De Men Instant
Nutrituos Cereal

III. CURRENT BUSINESS SITUATION VINACAFE
Currently Vinacafe carved wide distribution network both countries with 200 distributors
nationwide. There are three factories in Long Thanh, Dong Nai Province, with 5
production lines, the maximum capacity 1,000 tons / year. Bien Hoa Vinacafe now
accounts for 40% of domestic market share and within five years after listing, the
company plans to continue to from the new plant, the development of the Chinese market
by studying investment in a factory in the north. Sales revenue of Vinacafe from 2006 2011 are very impressive growth and sustainability. The average increase growth year
after year is 25-40%. Specifically:
Revenue in 2007 was 619 billion
Revenue in 2008 was 863 billion
Revenue in 2009 was 1.020 billion
Revenue in 2010 was 1, 301 billion
Revenue in 2011 was 1.585 billion
Revenue in 2012 is estimated at 2.300 billion
Besides, the net profit in 2007 was 138 billion in 2011 is 398 billion, expected
profit after tax for 2012 is 300 billion. The time now Vinacafe are exported to


countries like USA, Japan, Canada, Russia and other countries Eastern Europe
with the traditional product is soluble coffee and roasters. Next 2013 plan of
Vinacafe will study nutrition and grain production suit your taste and the tastes of
consumers in the U.S. and other countries European region, this is also the
strength of Vinacafe

III. WHY INVEST IN CHINA

1. Economic conditions, China's political
China is the most populous country in the world, according to the World Bank China's
population in 2011 was 1.344 billion people, growth the last 5 years average is 8.5% and
in 2011 was 9%, the average income capita is $ 5,000, the Chinese economy after WTO
accession elimination of tariff and non-tariff barriers, Chinese goods will flooding the
world and from the world flow into China. In addition, the China's political stability, legal
system reform significantly in order to attract foreign investment, macroeconomic


policies of State equality in the creation of a competitive environment between the
FDI and domestic enterprises. In 2011, FDI in the U.S. reached $ 227 billion, while FDI
into China reached 116 billion USD (according to UNCTAD data sources) u của
UNCTAD)
2. Infrastructure
On infrastructure, China has in recent years developed strong response to economic
development. Investments "direction future "is in infrastructure and urban planning.
Basically, the high investment and sustainable growth of China is supported by huge
savings and a relatively young labor supply and abundant In the 12 countries with the
world's infrastructures all present in China are ranked No. 9 Source "Global
Competitiveness Report World Economic Forum 2010 -2011"

3. Distribution of goods in China
After opening, China's distribution system at controlled close State as before instead is a
flexible distribution system activities, operating under the regulation, according to the
demand of goods and market competition. Like Vietnam, the distribution of Chinese
goods 2 channel retail and wholesale channels. This is a huge advantage Vinacafe in the


production and distribution in the Chinese market National
IV. STRENGTHS AND LIMITATIONS OF THE CHINESE MARKET

ENTRY
1. Strengths
In recent years, Chinese people tend to consider drinking coffee Coffee is the new
style, instead of the traditional tea practices systems. With a population of over 1
billion people, China is actually a potential market for Vietnam. According to
statistics from the General Department of Vietnam Customs, exports of coffee
Vietnam to China increased by 30% compared to 2009, reaching more than 32
million, accounting for 1.5% of the total export turnover of Vietnam's coffee 2010
around the world. Vinacafe is a famous brand in Vietnam, sales and marketing
section are ranked No. 1 in Vietnam. Individual coffee industry, current Vinacafe
are two types of product lines is soluble coffee and coffee roasters Soluble coffee
product identified in the intensive strategy enter the Chinese market, it is found
that the people China favored by taste and reasonable price with the majority of
Chinese people. According to a survey that the company's staff Vinacafe survey in
Beijing and Shanghai is the second largest city of China is currently in a cup of
instant coffee in 2 cities equivalent to about 10,000 - 12,000 USD, while a small
package Vinacafe only price is U.S. $ 2.000 to 3.000. Similarities in culture,
politics between Vietnam and China is also one of the conditions interest in
investing in this market In addition the company has a team of qualified
managerial and economic experience, 70% are university graduates and
postgraduates. Division product research and development are trained in the basic
and worked in large foreign corporations. Examples such as Nestle, Maccoffe ....
this is the important resource in the development of Vinacafe in recent years. Can
confirm that this is the advantage of very big investment in production and
distribution of products soluble coffee market China.


2. The limitations
In addition to these strengths, while investors soluble coffee market China
Vinacafe company also has a few limitations need to improve First, inexperienced

foreign investment, financing limited and dependent on loans Monday is not a
professional PR department in the enterprise and also investment is not adequate
for this part
V. MARKET ENTRY STRATEGIES IN CHINA
1. Products
Provide products suitable to the taste of the Chinese people, in addition must be
redesigned packaging and color of the product line with the customs and practices
of the Chinese consumer is taken red is the dominant color of the product With the
policy of "coffee made from coffee" are considered strategic long-term in the
natural production of coffee has no flavor materials, cornstarch mixed with ... the
product concerned to the benefit of consumers and public health
2. Pricing policy
Strategy for the period 2013 -2015 of Vinacafe soluble coffee is put enter the
Chinese market as a precondition for successful café roasters and cereals market
participants. Segment Vinacafe targeting the youth as dynamic class is the main
contribution to the soil water in the future. So the price for this segment must
match with their income and compete with the same products. Plan of Vinacafe
will sell to Chinese consumers as follows:

Box of 20 sachets
42,000 VNĐ

Box of 24 sachets
Price shops

50,000 VNĐ


Price shops
48,000 VNĐ

Consumer

Consumer

58,000 NVĐ

Price

Price

3. Market focused investment
After analysis of the survey and the fact that Vinacafe focus on five provinces and
cities: Beijing, Shanghai, Guangzhou, Guangdong and Fujian. This is where the
concentration of population and income capita in China. Also in these provinces /
cities, of Vietnam's coffee production is also exported to the region this, but only
exported across the border. Thus, if investment and specific strategies and clear,
this is a potential market of Vinacafe it used to enter Chinese
4. Distribution channels
To penetrate quickly and effectively to consumers, the company will choose many
different distribution channels will prioritize investment and traditional 2-channel
development and (GT) and modern distribution channels (MT) With GT, the
company will give priority channel in the rural areas where the system
undeveloped supermarkets, consumer habits of the people want convenience, the
standard of living of people is not high and not well developed infrastructure GT
channel is the optimal choice to reach consumers MT channel will invest heavily
in the city center, the park career. The selected partner company distributes
products are prestigious corporations in the world such as: Metro, BigC...
5. Develop promotions for each channel

Like the distribution system in Vietnam, the price will be research companies
thoroughly before entering this field to make insurance distribution channels not
hamper but support for the development of products. Also offer support programs
promoting sales goods to suit each different distribution channels, in addition to
the company during product launch is expected to invest about 5,000 points
Sampling at the crowd and distributed free of charge to 2,000,000 households
family in the big city, every household is a soluble coffee package In parallel with
the Sampling and Wet sampling, the company will invest 10,000 baner, 1000
Standee at grocery stores and supermarkets. The media and press releases, TVC
and other electronic media will promotion company in the time-to-market products

6. Turnover and market share
Goals 2013 - 2015 of Vinacafe is geared towards system stability
distributor to complete the objectives in terms of revenue and market share

Year

Revenue
( Billion USD)

2013

$8,000,000

2014

$15,000,000

2015

$24,000,000

References
1. World Bank
2. General Department of Vietnam Customs

Market share
10 %
16%
22%


3. Source: UNCTAD
4. http:// www.vinacafebienhoa.com.vn
5. http:// www.Biz.cafe.vn
6. http:// www.vinacafe.com.vn