KẾ HOẠCH XUẤT KHẢU hải sản SANG THỊ TRƯỜNG QUẢNG ĐÔNG TRUNG QUỐC

KẾ HOẠCH XUẤT KHẢU HẢI SẢN SANG THỊ TRƯỜNG QUẢNG ĐÔNG TRUNG
QUỐC
MARKETING PLAN TO EXPORT SEAFOOD TO GUANGDONG - CHINA
MARKET
FOR MINH PHU SEAFOOD CORPORATION
Forewords
Over the past 10 years, the seafood industry has experienced a rapid and stable development
and significantly contributed to the national economy growth. The growth share of seafood in
the overall agriculture, forestry and fishery sector in particular and in the national economy in
general has gradually increased over the years. Seafood has become an important economic
industry, partially restructe the rural agriculture, eradicate hunger and alleviate poverty as well as
improve standards of living for the community. The presence of civil boats/ships fishing in the
sea has partially ensured the security, and protected the sovereignty of the national marine areas
and islands. With over 3200km of coastline stretching from the northern to the southern areas,
tropical monsoon climate and other favorable conditions, Vietnam is rich in seafood types as
well as potentials. Although seafood exports have recently faced several difficulties and been
negatively impacted by the global economic downturn, Vietnam seafood export revenues have
reached over US$5.5 billion in the first 10 months of 2013. These impressive figures reflect that
export seafood has rich potentials to bring high economic values to the nation.
As a leading seafood group in Vietnam, Minh Phu Seafood Corporation (herein referred
as Minh Phu) was formerly known as Minh Phu Seafood Export Factory headquartered at the
Industrial Zone, Ward 08, Ca Mau City, and Ca Mau Province. Its primary operations include
feeding, processing and trading seafoods & meat products. Founded on December 14 th 1992 and
experienced 15 years of continuous development, Minh Phu has so far affirmed its prestigious
position in Vietnam, in Asia and in the world. In 2006, Minh Phu became a joint stock company
and was listed on the Vietnam stock market. The enterprise has stepped from feeding and
processing breed shrimps and commercial shrimps to exporting these products to foreign
markets. This is a development milestone in the context of fierce competition and strict market
requirements. Minh Phu became the holding company of nine Southern – province – based
subsidiaries. The subsidiaries operate in the fields of feeding, fishing and processing such
seafoods as prawns, fish. Minh Phu’s seafood revenues are currently ranked the top among

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seafood firms in Vietnam. In 2012, the company sales were up to VND 7,965 billion; its export
volume reached 32 million kg (valued at 369.4 million). The company's main market is the U.S.,
EU and Japan. However, the firm exports to these markets have recently slowed down.

Therefore, Minh Phu is looking for new markets for its seafood
exports. One of the potential markets is China. The company has oriented to
penetrate the market and China’s Guangdong Province with many advantages and challenges is
selected as a “pilot”. A marketing plan is set under the expectation to boost the corporation
business in this market with high potentials both vertical integration, high quality and branding.
Besides, the marketing plan is expected to increase Minh Phu’s sales and expand its markets so
as to maintain its current leading position.
I.

AN OVERVIEW OF THE COMPANY AND ITS TARGET MARKET:

Brief introduction about Minh Phu products and services
The marketing plan was developed for the best quality products offered by Minh Phu
Seafood Corporation - shrimps and fish.
The target market is Guangdong, one of China's most populous provinces, has several big
and modern cities and shares border with Vietnam.
Primary products of Minh Phu Corporation:


Shrimps are the main exports of the Minh Phu: shrimps products include black tiger

shrimps and white shrimps. The company offers shrimp breeds, feeds commercial shrimps,
processs and exports shrimps, especially shrimp products of high added value.



In addition to shrimps, Minh Phu also offers fresh fish such as sutchi catfish, grouper,

etc.

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The selected products to be exported to this new market will be branded as "Clean Seafood"
or "Chieng Thuy Khai San" in Chinese. They include tiger shrimps, white shrimps, sutchi catfish
and catfish.
The company products’ features: Clean, fresh, nutritious, rich in protein, high quality, etc.
These products are fed in clean environment or fished off-shore and meet EU standards.
"Clean Seafood" is attractively packaged, friendly designed and easy to use with added
values such as low fat or food safety features. Products are produced and packaged in modern
production lines and with advanced technologies of international standards. Besides, food
hygiene and safety are strictly controlled. All activities and procedures of the company comply
with relevant laws, regulations and requirements. Members of Minh Phu are all aware that
product quality always goes hand in hand with the brand and the survival of the enterprise. With
its investments in technology, upgraded machines, following the management systems of GMP,
SSOP, ISO 9001: 2000, BRC, GLOBAL GAP, etc, Minh Phu has become the leader for product
quality in Vietnam and its products are always welcomed in the market.
Target market
Chinese seafood market is expanding with high growth rate. Increased personal income and
changed lifestyles have boosted the demand for seafood consumption in this country, especially
high quality seafood products. China is a potential market for a great number of seafood
exporters around the world.
Guangdong - China is a highly potential market, located on the Eastern coastline of the
People's Republic of China . This province shares the border with Vietnam and has some deep

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seaports near Vietnam. Guangdong GDP has taken the lead among Chinese provinces since
1989. This province includes many big cities which have witnessed both economic and tourism
development. Thanks to the above-mentioned advantages, Guangdong is an attractive market for
not only Vietnamese seafood enterprises but also for other foreign companies.
Competitive Advantages
Minh Phu seafood products have following competive advantages over other products sold in
Guangdong:
“Clean Seafood” is fresh, nutritious, rich protein, high quality, attractively packaged, friendly
designed and easy/simple to use.
“Clean Seafood” will be distributed in the new market in a particular approach which takes
advantage of the successful domestic and foreign distribution of the company so far. With its
network of agents and distributors, the company's products will be delivered to customers fast
and conveniently.
“Clean Seafood” will be advertised with both traditional and new types of advertisements so
that products quickly become customer-friendly. The latest advances of modern marketing such
as social networks, cloud computing, viral marketing, guerilla marketing, etc will be applied to
optimize the effectiveness of advertising and communication at the lowest costs.
Positioning Statements:
The company strives to build the product image for "Clean Seafood" as high quality, clean,
safe, affordable and convenient products in Guangdong.
This will differentiate Minh Phu Products from other existing seafood products in the market
since there is much cheap and low quality seafood which is produced from seriously polluted
water and there is also too expensive seafood imported from European to Guangdong.
Estimated revenues and profits
For the above long term and strategic plan, Minh Phu sets the revenues of US$30 million,
profit of US$2.7 million and a small Guangdong’s market share for the first year. The company
expects to increase the revenue by 50% and 25% in the second and third year respectively. For

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this huge market, even though the business plan is quite “modest”, it is the foundation and first
steps for the company to increase its exports to this highly potential market.
II. ANALYSIS OF THE CONTEXT, CONDITIONS AND MARKET:
1. Strengths:
1.1 Dominant customer service:
As a prestigious company in Vietnam and foreign markets, with the largest export turnover
in Vietnam, Minh Phu Corporation has established an effective service network, delivering
products of the highest quality to customers in the shortest time. Through such local distribution
systems as agents, supermarkets and cleanseafood shops, the company's products delivered to
customers are always of high quality.
In the plan on exporting products to Guangdong, Minh Phu focuses on selecting and
cooperating with commited agents and distributors of high responsibilities, business ethics and
financial strength. The company will support its agents by recruiting, training, and paying
salaries for core sales teams who are assigned to every store to create a professional image. At
sales points, selected staff must be local people who are good at selling products and answering
phone calls, enthusiastic, energetic, love the company and its products and fully understand
customers.
At sales locations, sales are frequently updated using software which is installed on the sale
point computers by the company. These computers are networked to the center/server one.
Salepeople are carefully trained about how to use the software and how to introduce products to
customers.
The company focuses on after-sales services such as bartering, checking customers’ level of
satisfaction via phone calls, customer care, product introduction, vouchers for loyal clients, point
accumulation, VIP customer discount. In addition, products are under warranty terms (customers
can return products, products’ expiration date is ensured, etc).
Professional marketing teams constantly update information and situations in the market and

report to their managers for timely response. Delivery staff are strictly recruited and selected to
deliver products to customers with their enthusiasm, polite attitude (these staff will wear the
company uniform on which the company logo is embedded.)
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1.2 Convenient store locations with consistent signboards and the network of committed
agents and distributors
To support agents to increase sales as well as maintain the brand image, Minh Phu partially
sponsors store rental, consistent signboards and advertising panels costs for agents and
distributors. That explains why the company’s stores will be based in favorable, airy and
spacious locations to draw customers' attention.
1.3 Unique/distinct products:
For Guangdong market, "Clean Seafood" must convey the company messages to consumers:
high quality, safe, rich in protein, attractive and offered by a top Vietnamese seafood group.
In order to create distinct and unique products, Minh Phu not only focuses on high quality
products but also invests in product packaging to match with the leading Vietnamese seafood
corporation of 10,000 billion VND sales.
With modern technological lines, shrimps and fish are fed and fished in clean water, strictly
processed and packaged. The company offers reliable products of high quality, fresh, clean and
convenient features for customers. Minh Phu exports meet the most rigorous standards of the
import market. An illustration is that the company's products have been accepted in such strict
markets as U.S., EU, Japan so far and Guangdong later.
For the diversification of products to draw the attention of different customer segments, the
company has studied the local culture to create a number of instant foods. These products attract
students, office people and employees, etc who have limited time to cook fresh food. Customers
will be introduced about the process of producing "Clean Seafood" (fresh and high quality
materials, produced and processed with advanced technologies, meet local and foreign hygiene
standards, etc). Thereby, customers are likely to trust the “Clean Seafood” products and they will
become customer-friendly products soon.

1.4

HR: Employees have extensive experience in feeding, purchasing, processing and

distributing products:
Inheriting existing strengths, when penetrating the new market, the company will continue to
maintain the achieved results and experience in domestic and foreign markets. Minh Phu
organizes annual training programs to improve its staff skills and discuss business experience.
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That explains why the company always has staff of excellent skills and experience. These HR
has contributed significantly to further strenghthen the enterprise brand as well as improve the
quality of its products. Thanks to their enthusiasm, the company has consistently ranked in the
top 10 seafood export enterprise in Vietnam. It’s HR that will help the company successfully
implement the export strategy in Guangdong market.
1.5 The company has on – site/local subsidiaries which research, feed, purchase and
process products.
With a network of nine subsidiaries, the Group feeds, purchases and processes on site to
ensure fresh, delicious and nutritious materials. Minh Phu pays attention to its research team
who studies nutritious products, processing methods, the best supplies, etc so as to further
improve the product quality, differientiate the companies products over others and ensure the
leading position of the company. This demonstrates why the company always provides fresh and
clean products which satisfy the requirements of the strictest markets in the world.
The above-mentioned nine members will also significantly contribute to the development of
the company in the field of seafood export to the new market.
2. Weaknesses:
2.1 Sources of supplies constantly fluctuate in both quantity and quality.
Vietnam is a country of a long coastline. However, fishing tools are quite simple and
backward so fishing capacity is not very high. Besides, frequent natural disasters cause

difficulties and bottlenecks for fishing and seafood industry. Therefore, the company’s
inputs/supplies are often scarce. Moreover, prices of inputs fluctuate day by day and the
enterprise is passive in costs.
2.2 Limited financial resources.
In spite of being a large corporation, joining a big market like China will require an extensive
distribution system, enthusiastic and experienced employees that are good at Chinese. Besides,
shipping and storage costs are really high, so it is tough for the company to penetrate this market
without additional funds. Fortunately, the fishery industry in general and seafood export in
particular are encouraged and supported by Vietnamese government. The enterprise enjoys
favorable policies issued by the government and loans accepted by banks.
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2.3 Limited management capabilities of some leaders:
In comparison with Chinese enterprises, leaders and managers of Vietnamese companies are
mainly experts with many years of experience in management. Therefore, the company has
appointed a number of key leaders to China so as to study about business practices and
consumer tastes there.
3. Opportunity:
3.1 Guangdong is a vast market:
Guangdong - China is a big market with the population of more than 80 million. Therefore, it
is a highly potential market for Minh Phu to exploit. Besides, many Chinese people do not really
trust domestic products due to food safety problems. Thus, exports such as fresh, clean and high
quality shrimps or will attract a lot of interest from customers who have high living standards
and demand for clean food. On the other hand, Minh Phu is a high profile corporation in the
strict foreign markets such as the U.S., EU, Japan, etc. That’s why it is not difficult for the
company to establish its Chinese customers’ trust and loyalty.
3.2 Guangdong has several seaports and is the neighbor of Vietnam – This facilitates
transportation.
Geographically, Guangdong is a province which has a long coastline and many deep-sea

ports. Vast Guangdong market which is close to the Vietnamese border will facilitate the
transportation of Minh Phu products between the two nations.
China is a large nation with the population of over 1.3 billion (accounting for 19.22% of the
world population) as of May 7/2013. With this large population, its close-to-Vietnam location
and the fact that consumption of seafood in China has increased by six times in the past 30 years,
China is a “fertile ground” for the development and expansion of seafood enterprises in general
and of Minh Phu in particular.
3.3 Feeding, fishing, processing, consuming and exporting seafood are strongly
encouraged and supported by Vietnamese government.
In terms of government policies, seafood export industry is being encouraged by the nation.
"Decision ref 1690/QĐ-TTg on the approval of the development strategy for Vietnam seafood
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industry by 2020 is issued dated 16/09/2010. " According to this decision, the government
encourages the seafood industry to become famous and prestigious brands of high
competitiveness in international markets. In addition, seafood sector are supported by domestic
commercial banks with low-interest-loans. This is an advantage for the company when
competing with other rivals in foreign markets.
4. Challenges and threats:
4.1 Fierce competition environment:
In fact, when joining either domestic or international markets, the company has to face
intense competition. The competition becomes fiercer because China is a highly potential market
that several companies expect to penetrate.
Minh Phu’s main competitors in Guangdong market are local companies who imports
seafood from neighboring countries including Vietnam with border-trade approach. Because
these companies do not have to pay import taxes, transport costs (Lorries of containers) are very
low for border-trade business. When products are successfully imported, they are packaged and
sold at really cheap prices. Therefore, these products are the main competitors of “Clean
Seafood”.

Other rivals are Vietnamese, European, American and Japanese seafood exporters to China.
Besides, local seafood businesses will also set strategies to compete with Minh Phu.
The aforesaid competitors are challenges of Minh Phu when the enterprise penetrates
Guangdong market.
4.2 Increasingly high requirements for product packages and quality
Seafood products must be strictly controlled and supervised from the stage of feeding and
fishing to processing and transportation by the company production and management system.
Minh Phu regularly inspect, check, praise the achievements of responsible staff in order to
ensure high quality products.
Since features of seafood products are fresh and of short use duration (expire soon), if the
restoration process is poor, the product quality will be negatively impacted and the enterprise’s
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rivals can take advantage of this bad situation to smear “Clean Seafood” brand. That explains
why Minh Phu always pays attention to enhance the sense of responsibility of product delivery
team and ensure the careful restoration process of “Clean Seafood”.
The company regularly assigns staff to penetrate the market and listen to customer comments
and feedbacks on its products for timely response to the strictest customers.

4.3 Trade Barriers:
Trade barriers are a major problem for any exporter. Chinese government has imposed 14 tax
types on foreign-invested companies and exporters. The taxes include VAT, consumption tax,
business tax, corporate income tax, personal income tax, resource tax, land value-added tax,
urban real estate tax, transport license use tax, stamp duty, deed tax, slaughter tax, agricultural
tax and import tax.
The company’s research shows that Vietnamese seafood exports to Guangdong will be
subject to the following main tax rates:


Corporate income tax rate: 33%



VAT: 13%



Business tax: 5%

The above taxes will affect the company’s product prices. This is also one challenge for Minh
Phu when exporting seafood to Guangdong market.
4.4 High insurance and transportation costs as well as transportation risks are major
challenges for the business plan:
Insurance and transportation costs are factors that increase the product prices and make it
difficult for the company to compete in product prices, especially when the company exports
seafood to Guangdong - a market of a great number of cheap products. This reduces “Clean
Seafood” products competitiveness even though they are of high quality.
The company’s transportation methods vary from market to market. For markets that are near
Vietnamese border, the company transports its products by frozen containers.

For coastal
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markets, the company will ship its products with shipping enterprises such as Vinaline, Cosco
Container Ltd - China, Grand China, Shang Hai, Hai Hua, etc.
Insurance cost and transportation risks partially increase price of exports. Although insurance
limits losses and damages during the transportation process, not all risks are covered. This is also
a challenge for the company consideration.

4. 5 High costs of stores and warehouses in China:
The company’s store network is not only sales points but also places to create brand image
and build customers’ trust. For frozen storage system which keeps the products before
distributing to supermarkets, restaurants and distributors, certain standards to ensure quality
products are required. Besides, this system should be based at locations which are convenient for
transportation and suitable for sales purpose. This is a big challenge for companies requiring
appropriate strategies to reduce business costs.
III.
1.

ANALYSIS OF CUSTOMERS AND MARKET SEGMENTS:
Geography and population:

China is a large nation with the population of more than 1.3 billion (account for 19.22% the
world population) up to July 2013.
Seafood supplies from several major fresh water seafood feeding centers in China have
significantly reduced due to drought. This increases seafood prices in China. Therefore, several
Chinese fish markets are searching for alternative supplies of white fish. China boosts seafood
imports due to the shortage of domestic supply resulting from hot weather in the summer. Rural
population aging forced China government to issue some policy changes, followed by
modifications in policies on seafood production and import.
Geographically, Guangdong is not only a big and populous province and a neighbor of
Vietnam but also has a long coastline and many deep seaports. These favorable geographic
features facilitate transportation of products.
Guangdong is currently among the richest provinces in China with its highest GDP among
administrative units (excluding Hong Kong and Macao). With the population of 110 million (80
million locals and 30 million immigrants), Guangdong is the most populous provinces in China.
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Therefore, their demands for seafood items such as fresh shrimp, fish, pearl oyster, holothurians,
abalone, dried squid, etc are various. Wealthy people needs "high quality" seafood while people
of average income need affordable items and are not very strict about the product quality.
Guangdong is a neighbor of Vietnam, so it’s easy to travel from Vietnam to Guangdong.
Guangdong is located along the coastline of China, so it’s convenient for shipping seafood
(through Da Nang or Hai Phong seaports) or road transport through Mong Cai - Dong Hung
border gate. Another advantage is that it costs less to ship products through seasport when
Vietnam has Haiphong seaport which is near China.
Guangdong is an attractive tourist destination in China and famous for its longstanding
cuisine. It welcomes thousands of tourists around the world. Therefore, its demand for food is
also really high. Guangdong people prefer crispy and fresh tastes. Minh Phu products with fresh,
clean and hygienic features will satisfy Guangdong people tastes.
Through market research, the company thinks Guangdong is a highly potential market
because of its local competitors’ problems as follows:
“Dirty food” is currently a pressing problem for the Chinese people. Compared with other
countries, China has fewer food safety standards, and its standards are often lower than others.
1/4 of these safety standards have not been updated for more than one decade. According to
experts, Chinese seafood is facing with several safety and hygiene problems (microorganism or
antibiotics portions excess the approved regulations/standards). Therefore, Chinese seafood
products are not welcomed by foreign markets. The main reason for this situation is China’s
polluted environment. China’s economy sharply grows. There are many harmful organisms in
the Chinese gulf and sea. Besides, in the shrimp and fish feeding process, dirty waste excreted
by shrimps and fish and chemicals also contaminate the water environment. Excessive fishing
has negatively impacts on the marine economy development. That explains why despite its large
sea area, China still has to import seafood to satisfy its domestic needs.
In fact, the Chinese have recently had a deep awareness of the domestic food industry crisis.
Therefore, a supply of clean, hygienic, and nutritious seafood will certainly be welcomed by
Chinese people.
2.

Economic characteristics:

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Over the past eight months, Vietnam export turnover in Guandong market has been US$2.9
billion (increase by 22.3% compared with the previous year) and import turnover has been
US$4.7 billion (rise by 62.1%).
In 2012, China imported 34,253 tons of frozen fish fillets (valued at US$ 89.89 million). This
figure increased by 41.43% in volume and 37.2% in value compared to 2011. Vietnam accounted
for 15, 676 tonnes (valued at US$32.4 million) out of the above-mentioned 34,253 tons, an
increase of 83.65% in volume and 67.6% in value.
The demand of the Chinese market is quite diverse and the market is considered to be an
“easy” market of different classes and incomes. Besides, most Chinese consumers prefer foreign
products to domestic ones. This is an advantage that helps “Clean Seafood” compete with local
products.
2.

Market segments:

Based on market research, let us look into features of market segments/target market:
Minh Phu products are clean, fresh, hygienic and nutritious products which meet European
quality standards. Therefore, its markets are diverse, spreading across big cities. Because its
target markets are tourism, populous and high intellectual centers, Minh Phu focuses on the
following market segments for its “Clean Seafood”:
-

Customer group of large, medium and small supermarkets.

-

Customer group of small and medium store chains.

-

Customer group of wealthy and common people

-

Customer group of restaurants

Market surveys show that Minh Phu’s target customers in Guangdong are large, medium and
small supermarkets and small and medium store chains through a network of distributors. In
terms of shopping habits, Chinese customers often go shopping at supermarkets on weekends
and holidays. The company booths at supermarkets are conveniently located to draw the
attention of housewives. Minh Phu products are scientifically showed in glass cabinets and
elegantly packaged.

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Another shopping habit of Guangdong customers is that they prefer shopping at specialized
stores, product showrooms, etc along streets in major cities. Through its network of committed,
credible and loyal distributors who have strong financial resources and business experience,
Minh Phu "Clean Seafood" always to reach consumers with its best quality. The company
actively supports its agents and distributors with favorable price policies, promotions, sales
bonuses, trained staff assigned to sales locations and partial store rental cost sponsor. Because
the company’s stores must be based at favorable, airy and spacious locations, it will be easier for
its agents and distributors to gain profits and continue to stand side by side with Minh Phu.
These stores are effective advertising channels for the enterprise.

The company’s focus on the cooperation with small and medium sized distributors always
helps it gain expected achievement and effectiveness. Its distributors will timely deliver "Clean
Seafood" of high quality to restaurants, hotels and households at their assigned areas. Under
several supports of Minh Phu, its distributors will build their own advertising channels via social
networks, leaflets, promotion programs, etc. The company has a professional marketing team
who are ready to assist distributors to build the professional image for the company at each sales
point.
IV.

GOALS AND OBJECTIVES

Mission statement
The mission statement of Minh Phu Cooperation is as follows:
"We offer clean and high quality products which build our customers’ trust and
satisfaction to the utmost.”
Based on the company’s potentials, the level of competition and Guangdong province
market, Minh Phu has set goal and objectives in the future. To accomplish its mission, the
corporation has developed a detailed plan of objectives with sales volume, market share, gross
margin, net profit and return on investment for “Clean Seafood” products in Guangdong market
as follows:

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ESTIMATED PROFITS AND FIGURES UNDER THE
MARKETING PLAN FOR “CLEAN SEAFOOD”
(in USD)
Criteria

Shrimp

Volume (tonnes)
Initial investment
Sales
Cost of goods sold (70%)
Selling expenses (10%)
Administrative expenses

(5%)

Marketing expenses (3%)
Net Profit
Corporate income tax
Gross profit
Gross profit margin (%)
Net Earnings (= EBIT – corporate
income tax)
Return on investment (%)

Fish

Total

1,66
7
50,00
0
20,000,0
00

14,000,0
00
2,000,0
00
1,000,0
00
600,00
0
2,400,0
00
792,00
0
6,000,0
00
3
0

3,3
33
50,0
00
10,000,0
00
7,000,0
00
1,000,0
00
500,0
00
300,0

00
1,200,0
00
396,0
00
3,000,0
00

5,
000
100,
000
30,000,
000
21,000,
000
3,000,
000
1,500,
000
900,
000
3,600,
000
1,188,
000
9,000,
000

30

30

1,608,0
00
8.0
2

804,0
00
8.
00

2,412,
000
8.
01

In order to obtain the above-mentioned objectives, the company needs detailed plans for the
future:
After the first year Minh Phu joins Guangdong market, the company expects to achieve sales
of US$30 million including US$ 20 million sales from shrimps and US$10 million from fish. In
this year, the company will focus on its initial investment, acquire market share and create the
Page 15


habit of using Minh Phu Clean Seafood, support distribution channels with advertising and
marketing costs.
Therefore, the company sets the estimated profit of US$2.4 million for the first year. In the
second years, sales are expected to reach US$ 45 million, an annual increase by 50%. From the

third year onwards, sales and profit margin are expected to grow by at least 25% and 10%
respectively.
V.

STRATEGIES AND TACTICS:

In order to achieve the expected goals and objectives, the company has built a system of
strategies and tactics which focus on pricing and product strategies and trade promotion so that
Minh Phu “Clean Seafood” will dominate the Guangdong market.
- Pricing strategy:
To compete with other products in the market, the policy of the company is to offer products
of reasonable prices to attract customers. In the short term, profit is not the top priority. The most
important task is to strengthen the habit of using Minh Phu Clean Seafood products in
Guangdong market.
Guangdong customers are considered to be quite sensitive to changes in prices. Because
there are many alternative products such as local seafood, European and American exports, etc,
when there is a change in price, customers will tend to find an alternative product of cheaper or
more stable prices. Therefore, Minh Phu product prices should be stable. This is a challenge for
the company in the current context which requires the enterprise to put its efforts to retain its
customers when products prices increase. The tough task for the company marketing forces is
how to support and maintain stable sales activities.
To achieve the break-even point, the minimum sales should be US$30 million in the first year
(i.e. the equivalent output should be 1,667 tons of shrimp and 4,000 tons of fish exports).
The average prices of shrimp and fish are US$12/kg and US$3/kg respectively. These are
reasonable prices for the Guangdong market. Customers will feel that Minh Phu seafood prices
are neither very high nor cheap. Its product quality is high and product packages are elegant.
Minh Phu Clean Seafood has been positioned international markets and will become more and
more consumer-friendly in Guangdong market.
Product Strategy

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Product quality is a vital factor for every business. To ensure products of international
standards, Minh Phu has built a sound strategy and consistently pursued its goals. The
company's products always meet safety, hygiene, nuitrion, protein and quality standards. The
company has set and complied with strict processes such as input selection, fishing and
restoration, pre-processing, processing, packaging, loading, transportation, distribution, etc. The
enterprise always searches for feeding and fishing area of clean environment. Besides, the
company pays attention to select quality and strong breeds, foods for shrimp and fish.
Committed and high responsible suppliers and quality fishing grounds are also among Minh
Phu’s priorities. The last but not least task is to take notice of research and study products and
market so as to improve product quality, minimize business expenses and apply the most
advanced technologies and modern techniques in the production process.
Product pacakaging is also an important factor which helps increase sales:
In order to win Guangdong consumers’ trust, “Clean Seafood” packages should be safe,
attractive and convenient to draw customers’ attention. Therefore, the company regularly
improves its packages and studies local and foreign products to ensure the sales growth.
Promotion strategy
In order to compete with local enterprises, Minh Phu has set the following promotion
strategies:


Advertising Strategy

The company takes advantage of ecommerce channels such as social networks, guerrilla
marketing, viral marketing for its marketing purposes. Besides, cloud computing, mobile
communication and new development in e-commerce are effective tools for advertising and sales
promotion. These will be effective, convenient and low cost advertising channels.
The company also draws customers’ attention by adversiting on local supermarkets’ websites,

press, Sohu, Alibaba sites, etc.
Minh Phu supports distributors in renting convenient sales location to promote its brand.
During the Vietnam cuisine week, Minh Phu products will be directly introduced to local
consumers. On this occasion, the company will focus on seafood topics and invite potential
partners to join.
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It is a good idea to invite Chinese distributors, agents and traders (Business owners, shop
owners) to visit Vietnamese seafood feeding areas and factories.


Sales Strategy

Financing small and large supermarkets to implement discount programs (similar to Walmart
discount program) and directly deliver products to Chinese consumers to wake their needs.
Thereby, the company indirectly helps increase its product volume offered to its distributor and
agent network.
Minh Phu will assign staff to contact managers of small and medium store chains; large,
medium and small supermarkets, merchants, agents, restaurants via through communication
tools such as telephone, meeting in person, etc. Thanks to its showrooms, advertising and
marketing activities, etc, the company will send its product samples to customers.


Sales Promotion Strategy

Minh Phu plans to join seafood trade fairs such as VietFish and other trade fairs in
Guangdong to search for its partners.
The company will contact and meet Chinese partners and introduce its products to them.
The enterprise is also going to conduct promotion programs (voucher, discount, etc) for

customers.


Public Relations

Minh Phu plans to take part in seminars on seafood imports and exports.
Besides, the company will join social networks to get customer feedbacks and give timely
response.
VI. BUDGET AND CONTROL:
In 2012, Minh Phu obtained its net sales of VND 7,936 billion of which marketing budget
accounted for 1.2%. However, for the business plan in the Guangdong - a highly potential
market, the company is going to invest more in marketing activities in order to position its
products in this market.

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With the estimated total cost of US$26, 4 million of which marketing activities accounts for
U.S. $ 900,000 in the first year, the company expects to obtain US$30 million sales. Marketing
expenses are allocated in the following table:
MARKETING BUDGET ALLOCATION FOR “CLEAN SEAFOOD”
IN GUANGDONG MARKET

Activity

Budget

(in USD)
Percentage

Communication

369,000

41%

Direct offer

110.700

Participating

trade

fairs

and

events

in

221.400

Guangdong
Advertisments on press, TV, social networks

36,900

Sales

486,000

Sales expenses, supplier supports

413.100

Discounting and promotions

72.900

Marketing provision

45,000

Total

900,000

54%

5%

VII. CONCLUSION:
Exporting seafood products to foreign markets is a sound solution and direction for a great
number of Vietnamese enterprises. Thanks to this solution, Vietnamese products become friendly
in the international arena. This has contributed significantly to the added value of Vietnamese
currency, helping the nation to gain more foreign currency. Vietnamese government always
encourages and facilitates Vietnamese exporters.
It can be seen that exporting seafood to Guangdong market is feasible even in the short term.

In the medium and long term strategy, based on the existing achievement, the company will lay a
strong foundation to gradually acquire market share and increase its sales and profits.
Through the above-mentioned marketing plan with analysis of products, target/potential
market, strengths, weaknesses, opportunities, threats, challenges, goals and objectives, estimated
sales and expenses, marketing tactics, etc, a picture of an export project in Guangdong market
becomes clearer.
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With our limited time and knowlege, this assignment may not avoid certain restrictions and
mistakes. However, with the willing-to-learn-spirit, we look forward to receiving your valuable
recommendations to complete our plan.
REFERENCES:
1.

Vietnam Economic Times

2.

Vietnam Seafood Journal

3.

Prices and Market Magazine

4.

Foreign Trage Magazine

5.

Marketing Management Textbook and Lecture – International Executive Master of

Business Administration - Doctor Soren Russel Kirchner – California Miramar University, US.
Websites:

(Trade Promotion Bureau – Ministry of Industry and
Trade)

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