HAWTHORN CAMPUS HBI223N: TRANSNATIONAL MARKETING

To Ms. Chamila Perera

OZEE PREMIUM COFFEE

2011
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Executive Summary
The marketing plan is used for Ozee Coffee starts from the end of November 2011. Gradually, the marketing plan will guide the company to achieve its goals by researched and logical methods. Furthermore, the company desire to create a joyful and passionate working environment and to be an excellent coffee supplier and service provider in Vietnam. As the result, these main points have to be the company main objectives which will lead them to the success. In addition, Ozee Coffee also plans to get 3% market share, to promote the brand awareness to 65% of Vietnamese internet users in the two largest cities to 2014 and to keep the growth rate fluctuates from 10% to 12% in 5 years periods from 2012 to 2016. Particularly, the marketing plan will evaluate the markets opportunities, threats through analyzing its strengths and weaknesses and researching the domestic micro and macro environment. Thus, a sufficient understanding of market will guide the company to be a leader of the market. In 4P marketing mix strategy, every single aspect is researched and planned in details to guarantee consistence between marketing plans main subjects. In pricing strategy, the company imports all coffee beans from fair trade countries and to build the distinctive brand awareness of luxury so the staffs have to apply skimming pricing strategy. For distribution channel, Ozee Coffee distribute products through official websites and local groupon websites in special events. In promotion, Ozee Coffee invests its budget to advertise on social network, register to search engine, sponsor to public events. Through these promotion strategies, the company desire to be a well-known coffee brand and a successful foreign company in Vietnam. However, the company has to face numerous of challenges when entering the market. Firstly, it will get barrier of entrance from competitors such as Highlands coffee, Trung Nguyen Coffee, The Coffee Beans. Moreover, the GFC also threats to the company sales performance. This marketing plan is going to launch from the end of November of 2011 to the end of May of 2012. The final step of this marketing plan is control program in which some tasks will be run. These activities will reflects the efficiency of the companys marketing plan through results of sales, revenue, profits and feedback of customers.

Table of Contents
Executive Summary ............................................................................................................................... 2 Introduction ............................................................................................................................................. 3 Situation Analysis: .................................................................................................................................... 5 Macro Environment: ............................................................................................................................ 5 Demographics: ................................................................................................................................. 5 Economics: ....................................................................................................................................... 5 Cultural Force ................................................................................................................................... 6 Technology: (Internet development) .............................................................................................. 6 Micro Environment: ............................................................................................................................. 7 Suppliers: (see more in Appendix) ................................................................................................... 7 Competitors: .................................................................................................................................... 7 SWOT Analysis: ........................................................................................................................................ 9 SWOT ................................................................................................................................................... 9 Marketing Objectives: ............................................................................................................................ 10 Market Segmentation, Targeting And Positioning ................................................................................. 11 Market Segmentation: ....................................................................................................................... 11 Target Marketing: High Income Class ................................................................................................ 12 Positioning: ........................................................................................................................................ 12 Marketing Mix Strategies: ...................................................................................................................... 12 Product ............................................................................................................................................... 12 Price: .................................................................................................................................................. 13 Place: .................................................................................................................................................. 13 Promotion: ......................................................................................................................................... 14 Search Engines: .............................................................................................................................. 14 Linking Strategies: .......................................................................................................................... 14 Control Program:.................................................................................................................................... 16 Short term .......................................................................................................................................... 16 Long term ........................................................................................................................................... 17 References ............................................................................................................................................. 18

Introduction
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Premium Ozee is an Australian company based in Melbourne, Victoria. The company import high quality of fair trade raw coffee beans from Africa, Brazil. Then, they will be processed through a sophisticated roasting procedure which bring to Ozees products the best quality, taste and smell and scent. Finally, those coffee beans will be packaged to different bags, based on their origin, quality and prices. Moreover, most of processes of roasting procedure are handcraft. The company believe the handmade roasting coffee bean will guarantee 99% of quality and enhance value of premium coffee bean. In addition, Ozee commits the whole manufacturing process is totally friendly to the environment which produces lower Carbon dioxide commission than any factories in the world. As the result, the difference between Ozees product and others is the core value. they are definitely encompass the high quality and unique taste that customers can not enjoy anywhere else. Moreover, substitute ingredients which convey different flavours and scents to the products, are completely fresh and natural. At the Ozee, the management board understands that prestigious customers demand is diverse. Hence, customers are able to personalise their orders by selecting their own favourite kinds of coffee beans, adjust flavours, packages and containers design. All orders are placed online and sent by express postage in the 2 days since the payment is received.

Situation Analysis :
Macro Environment:
Demographics:

The figure clearly illustrated that the population of Vietnam is approximately 83 million which highly distinguished from 20-40. The Ozee coffee is also highly targeted by this range of age. According to Niesel (2008), Vietnamese people in 20s and 30s account for 48.5% luxury goods consumers in Hanoi and Hochiminh city. In addition, the proportion of 20s has been shifting up by 5.3% in only one year (Niesel, 2008). Moreover, according Vietnam Business News, this trend in Vietnam is a part of common scenario widely seen in Asia, which accounts for 50% of annual 80$bln dollars market for luxury brands in the world. Hence, there is a huge potential customers for premium coffee industry in Vietnam. Ozee coffee can get more market shares as early as they enter in the future.

Economics:

In 2010, GDP nominal of Vietnam reached to $104.6 billion, with GDP per capita of $1218 (Pricewaterhouse Coopers, 2008). Hence, Vietnam economy is going to reach the 17th largest economy in the world with expected nominal GDP of $ 436 billion and 4,357$ of GDP per capita in the next 15 years (World Bank, 2010). Moreover,
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Vietnam will probabyly turn to be the emerging economies by 2025, with a potential growth rate of 10% per year which is up to around 70% of the size of the UK economy by 2050 (Pricewaterhouse Coopers, 2008). Moreover, Vietnam has joined WTO since 2006 that help to lift up the whole national economy and creat more economies of scale for the national enterprises to develop on its own way. As the result, tariffs and customs complicated procedures are lifting up to harmonise with the international standards.Furthermore, Vietnamese quaility of life has been increased , so more and more people get interest of luxury products in which they believe these products could improve their life quaility. In addition, coffee is one of the products what are able to bring people a big enjoyable.

Cultural Force

Coffee culture has inspired Vietnam for a long time started from the French colonical period. At the beginning, coffee were only for the French and rich Vietnamese. Then, Vietnamese coffe e culture developed more by numerous of western style coffee shops such as Brodards, Ciao cafetc were opened in Dong Khoi street, a central business street of Saigon. From that time, coffee culture have been widely diversifi ed into all different class of V iernamese and even got more closer to low income class of Vietnamese society from workers to farmers. At the present, coffee is symbolised as a national drink and everybody can be served by a cup of coffee.

Technology: (Internet development)

According to the U.S monitoring service, Vietnam is in top 20 internet fast growing countries in the world, right after Canada (Viet, 2010). In fact, there are 24.3 million Internet users, accounts 1/5 of total

population (Niesel, 2008). In terms of ecommerce, Viet Nam is one of Asia sleeping giants. It also reveals there are 30,000 local and international businesses enterprises have been eyeing ventures with domestic partners to tap this market. In fact, couples of well-known U.S.-based online auction site, eBay has already entered to Vietnam market by cooperating with a 6

local IT solution company. Yahoo and Google also offer localised services, including online shopping exclusive to Vietnamese. Furthermore, Alibaba, the worlds biggest online business to business (B2B) , proposes an expansion plan to this competitive market. From that fact, Ozee Coffee believe that Vietnam E-commerce environment is now matured in conducting online sales and promotion activities.

Micro Environment:
Suppliers: (see more in Appendix)
Ozee Coffee is different from another company which provides online coffee service is the location that coffee beans come from. All of them are imported from the third world country such as Africa. A significant feature of third world country is they own abundant and natural resources. So this point definitely brought the high quality and unique taste that customer can not enjoy anywhere else. As the results, the Ozee Coffee will become famous and highly standardised services. However, substitute ingredients are like sugar, fruit juices and milk which are available in the Australia market and passed the quality test of the health care department, the company will choose instead of importing all the ingredients to reduce cost.

Competitors:
With a major of Vietnam population, Ozee Coffee stills a new brand name of coffee market. Our company has to compete with other brands which were established for long time such as:

Source: Trung Nguyen coffee website Trung Nguyen was established from 1996 and one of the most famous coffee brand in Vietnam, contain 25% of market share (Nielsel, 2008)

Source: Highland coffee website Highland coffee belongs to an American Vietnamese and has been established from 1998. They opened a lot of branches through Vietnam by using mass marketing strategy.

Source: The Coffee Bean & Tea Leaf website

The Coffee Bean has been established in 1963, all coffee beans are produced from high altitude in Costa Rica, Colombia, Ethiopia and Papua New Guinea.

Gloria Jean's has entered Vietnam market since 2007. Besides offering in store coffee, GJ also introduces to Vietnamese customers premium processed coffee bags which are directly imported from Australia.

SWOT Analysis: SWOT

The weaknesses of our company are that niche customers targeted. Our company only aims for customers who are high-income and able to spent on premium coffee beans. Because of

STRENGTHS
International experience of import and export coffee beans. International reputation of Australian brands. Wide ranges of products. Premium raw materials and ingredients with strict quality control. Qualified training labour forces.

WEAKNESSES
Niche customers target. Unpopular brand name in Viet Nam.
Lack of physical distribution channel in

Vietnam
High price

OPPORTUNITIES
Ozee coffee is the first international company enters the luxurious market of coffee in Vietnam. Intensive local coffee culture. The economy of Viet Nam is increasing rapidly, leads to the demand of customers to enjoy the high quality from foreign brand of high income customers. Vietnam population is young and they are affected by the Western lifestyle, people will easily go and enjoy luxurious products. Viet Nam joined WTO, so trade barriers and tariffs are removing. Increasing number of internet trading. More online payment methods are introduced in Vietnam, such as Payment, Bpay.

THREATS
Local brands are considering to enter the market. The inflation and GFC shrink the income of customers and they tend to save more money and cut off purchasing luxury goods. Fluctuated prices of ingredients. Probability of supply shortage. Weak regulation of local online trading.

the products is all premium coffee; the price for the products became high. On the other hand, our company is a brand new online-based company and hence we are an unpopular brand in Vietnam, so the aim of promotional campaign is to enhance the brand awareness in 65% internet users in Vietnam. Moreover, it will be a circumstance for us during the start-up time. The next weakness of our company is that there is lack of physical distribution channel in Viet Nam. There are also some threats for our company to start an online business. When entering the Vietnam market, the local brands needed to be considered. The local brands in Vietnam are normally old and influence Vietnamese a lot. This may cause people cant easily accept the new brand. The Global Financial Crisis in 2008-2009 causes the inflation and shrinks the income of customers. This makes them rather save money instead of purchasing the luxury products. Besides this, the prices of the raw materials and ingredients can be very fluctuated. This may cause that our company need always adjust the price of the products in order to earn profits. Premium coffee is hardly to be found and may limited supply from suppliers. This makes the probability of supply shortage may happen. Lastly, the weak regulation of local online trading may be a threat to our company. Finally, hackers may be a nominal risk to the company, but the risk is certainly in the minimum scale due to the progress of online security initiatives.

MARKETING OBJECTIVES:
To gain 3% market share by at the end of 2013. To promote the brand awareness to 65% of Vietnamese internet users in the two largest cities to 2014. To keep the growth rate fluctuates from 10% to 12% in 5 years periods from 2012 to 2016.

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Market segmentation, targeting and positioning

MARKET SEGMENTATION:
Age: The company will love by the people who really know coffee and love coffee. This is more interested among the business people. It targets on the business people with the average age from 25 to 45 years old. Income: The price of the coffee that set by Ozee Coffee is high. It is suitable for the people who have high-income and it will be at least

Demographic

$AUD50, 000 per annum and above. Ozee Coffee sells high quality coffee which import from third world country and process in Australia. Hence, only the high-income people who really like coffee afford to buy the products. The middle to low-income people may rather choose cheaper coffee and ready-made coffee from local coffee shops or fast food restaurants instead of the coffee beans. Ozee Coffee is an online-based company in Australia. It plans to enter Ho Chi Minh city and Hanoi city in Vietnam. Geographic distance may

Geographic

be a weakness of the company which issues of the time delay in logistics, lack of distribution channel. However, those problems can be solved by applying advantages of online sales and tracking technology. Social class: high income class whose annual income is a above 80 000 AU$ Lifestyle: Ozee Coffee produces premium coffee beans which suitable to

Psychographic

the consumers who are members of the new generation want to enjoy life and pamper themselves with luxurious things. Vietnamese high consumers need reliable products that enhance their daily lives and make them distinct from others.

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TARGET MARKETING: HIGH INCOME CLASS

The company decides to use Niche- marketing as the primary strategy. Focusing on a small particular group of customers will save cost and time in buyers behaviours research. Moreover, niche marketing also enhance the effect of advertising campaign due to common buyers characteristics and backgrounds. Regards to brand awareness of Ozee Coffee is luxury and premium quality, the image of Ozee Coffees brand towards wealth, so the snob effect will brings customer purchase decision making because of its scarcity, and the bandwagon effect encourages consumers buy goods in order to be distinct with a particular social group.

POSITIONING:
Positioning is not necessary for Ozee Coffee, because in the luxury products segmentation, the matter is being one-of-kind. As the result, if the products of Ozee coffee determines to compete with other rivals who are in a very different market sector, especially in terms of price features, or benefits, then no longer company brand awareness is conceived a luxury. Moreover, luxury goods are superlative, but not comparable. Therefore, the crucial point of success is identity, not the brands position of relation to a competitor. In another meaning, Ozee Coffees customers select Ozees products due to the distinction from others they are entitled to. As a result to build a strong brand awareness of 65% of Vietnamese Internet users is the most crucial point of the companys promotion campaign.

Marketing mix strategies:

PRODUCT
Quality
Ozee coffee are fair trade products, which are imported from Brazil and Africa farmers and complex processed at factory in Australia. It is high quality processed coffee. Beyond that,
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products are packaged in luxury and designable containers which are made from premium woods or metal, depends on customisation of customers. Therefore, the products quality will bring to Ozees customers distinct identity and satisfaction.

Core value:
Luxury products, distinctive value and high quality.

Brand
According to Vietname Business News (2010), The Luxury Institute has found that 91% of affluent consumers surveyed wanted to see their favourite luxury brand online, and 94% did not perceive online trading to cheapen a luxury brand in any way. Customers want to engage with brand online because it provides value to them, often in a convenient way. Understanding such cognitive processes of our luxury consumers, and aligning them with digital usage trends will strengthen strategic planning and increase the likelihood of digital success.

PRICE:
Due to instinctive premium brand awareness, the price of Ozee Coffee is ranging from $150 to $250 per 100 gram, depends on types and flavours. In fact, the price range is higher five times than any competitor in the Vietnam coffee market. Moreover, research and development costs are likely to be high, as are the costs of introducing the product to the market via promotion, advertising etc. In such cases, the practice of price-skimming allows for some return on the set-up costs Company also sells handmade coffee mugs and accessories which could be recycled in reasonable price. There is some discount for loyal customers and customers who buy high value items in total.

PLACE:
Ozee Coffee is online business. It means that the company relies on cyber space to sell products and web-based activities are very important in Ozee business the retail website. The distinctive point of Ozee Coffee websites is customers can customise their orders. The webpage is designed extremely friendly user interface that not require customers intensive knowledge of Internet. Moreover, customers are able to customise their orders from beans to containers, which are always available in diversified premium and hi-end materials. Through the websites, Ozees

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customers could pay by PayPal, visa, or credit payment methods. It should be flexible so that customers might find it easy to deal with company.

PROMOTION:

The company is going to follow seven different ways exclusively on the Internet to promote our site. As a start-up company, the marketing is going to be mainly online with SEO
(Search Engine Optimization) SMO (Social Media Optimization) as well as SEM (Search Engine

Marketing) techniques. The latter will be analyzed and kept within a monthly budget.

Search Engines:
The company is going to design web pages that will be listed by the search engines. Using descriptive titles and precise META tags, and by going through on page techniques such as density of key phrase, a logic and linked site structure on Google, Yahoo, Live etcThe marketing objective of the company is to shift up the brands awareness of 65% internet users. According to Vietnam Business News (2010), 87% of local luxury goods consumers find information and make decision by using search engine such as Yahoo, Google and Bing. Therefore, it is an alternative place strategy to push up the brand awareness of the company.

Linking Strategies:
In order to get indexed more efficiently and to gain page rank the company is going to focus on link building off page. The more pages pointing to our site the more traffic we will experience. We can get a listing in Google DMOZ directory which is for free and in Yahoo! Directory whose fee could be around $300 per year. Moreover, the company also cooperate to launch promotional campaign on several local Groupon websites such as www.nhommua.com, www.muachung.com. Using Groupon websites have both effects: increasing high volume sales with low fixed cost and creating a channel to collect customers data.

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Viral Strategies:
Writing interesting articles culture and learning methods with links to our site and offer them to others to use on their web sites. Video marketing: create video teasers with reference links to our site and upload them to Youtube and other video distribution sites. Audio marketing: open an account in iTunes directory and post regularly teaser podcasts of the commercial courses that we will be offering.

Social Media Optimization

Brand awareness through contributionforums and blogs and participation in social bookmarking and social news services. We can also create a profile of the company in Facebook, MSN Space, Twiter, Linkedin, etc. Write social news for publishing in Digg or Yahoo! Buzz. And, finally, host pictures of our site in Flicker..

E-mail Marketing:
We are going to build an opt-in list categorized according to our customer profile and send newsletters to our registered clients. There is going to be a personalization of emails to send to people that have just registered or customers that have already purchased one of our courses. The profile of our visitors will be considered also by their interests and, once they sign up to our site they can chose which area of the culture or learning they want to study in depth.

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Control Program:
Short term
The marketing plan will be processed from November of 2011 to May 2012. The control program is one of the most important parts which will stick all departments of the company to process tasks together and ensure the success of companys objectives:

Task Nov Product Invest in Inventory Design package, containers Conduct market research Place Research local IT company Register online domain, trade marks Build websites Promotion Issue membership card Groupon website Register to internet search engine Publish online PR article Interact to customer on social network Advertising Webpage and banner Facebook and My Space

Dec

Jan

Feb

Mar

Apr

May

Responsible Marketing Marketing Marketing IT +Marketing IT +Marketing IT +Marketing Marketing + Finance Marketing + Finance IT Marketing+ PR PR Marketing PR

The final step of this marketing plan is control program in which some tasks will be run. These activities will reflects the efficiency of the companys marketing plan through results of sales, revenue, profits and feedback of customers. Firstly, the IT deparment will conduct a research to choose a reliable IT local service company. Then, an online retailing website will be launched in three months. Along with that process, Marketing department will undertake a buyers behaviour research, in order to provide information of webpage user interface, appropriate local language to ensure the success of the websites. Moreover, marketing department is going to contact to several groupon websites in Vietnam, in every 3 months, there are three different special sales which discount half to 70% price. The aim of those specials program is to enhance the brand awareness and provide sample testing to potential consumers. In long term running, this markting plan will be evaluated its performance indicators in every three months. By receiving customers feedbacks on social networks, groupon we bpages and the official websites, the marketing department will alter the plan to guarantee that the company is always ready to adapt to new environment. In addition, training is necessarily conducted in every quarter of 4 years running, dues to change of global trend of marketing and consumers behaviour on the internet. Finally, the IT department is going to conduct the websites

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security testing in every 3 months to ensure the sustainability of the online channel distribution of Ozee Coffee Premium.

Long term
Action Get ready for change Target Analyse the current company and market industrys situation Conduct buyers behaviour survey to local customers for setting prize, promotional campaign. Establish the congress among departments to discuss about the change Agree about which thing needs to be changed Share the budget among members due to the high cost of carrying the change Responsibility Top managers, logistic managers and market research staffs of all members in the supply chain. Top managers of all members in the supply chain. Duration Every 3 months

In February and November of every year

Search for necessary information Start bring the strategies in practice

Search for Online trading software Review the paper-based data which will be exchanged Search for alternative internet trend Setup the EDI networks or Extranet Test the performance of transaction software with the network connection

IT personnel

Every five months

IT personnel and technical department

Fifth and sixth months

Training

Establish a training course for employees and managers.

All member of s department and some related departmental managers and logistics managers from supply chain members. Top managers and logistics managers and staff of all supply chain

Every 3 months

Implementation the strategy in logistics

Using Extranet or EDI network to support the logistic activities Primary test the performance of Extranet

Eighth, ninth and tenth months

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or EDI network to the Unicharms business Test the operation of strategies Evaluate the performance of marketing plan and other supporting information systems based on the improvement of CPFR and flow of information compare with cost saving. Update information marketing strategy Evaluate and fix some mistakes of the strategic plan

members Logistics manager and Marketing department End of every year

Marketing department

End of every year

References
Trong, K. 2009, "Online Shopping Flourishing in Vietnam", Lifestyle, Vietnews, view on 14th October 2011, <http://www.vietnewsonline.vn/News/Lifestyle/5898/Online-shoppingflourishing-in-Vietnam.htm> The Nielsen Company, 2008. Vietnam Grocery Report 2008, Annual Report, view on 14 October 2011, https://vn1.nielsen.com/site/NielsenVietnamGroceryReportOctober2008.pdf Stocking, B. 2007, "Vietnam develops taste of luxury goods", World News, The Washington Post, view on 14th October 2011, <http://www.washingtonpost.com/wpdyn/content/article/2007/09/23/AR2007092300319.html> Pricewaterhouse Coopers, 2008, "China to overtake US by 2025, but Vietnam may be fastest growing of emerging economies", Annualreport, view on 14th October 2011, http://www.pwc.com/gx/en/press-room/2008/china-asia-economic-markets-growth-emergingmarkets.jhtml Viet, N. 2010, "Vietnam Ranks High for Internet Users", News Report, view on 13rth October 2011, http://newamericamedia.org/2010/08/vietnam-ranks-high-for-internet-users.php Vietnam Culture, 2010, "Gift and Gift-giving Customs in Vietnam", Gift Ideas, view on 14th October 2011, http://www.vietnam-culture.com/articles-143-17/Gift-and-Gift-givingCustoms-in-Vietnam.aspx Vietnam Business News, 2010, "Vietnam spends $5.7bln importing luxury goods", Import-Export, viewd on 14th October 2011, <http://vietnambusiness.asia/vietnam-spends-5-7blnimporting-luxury-goods-in-2010-moit/>
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World Bank, 2010, "Doing Business in Vietnam", Vietnam annual report, view on 14th October 2010, http://www.doingbusiness.org/data/exploreeconomies/vietnam

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Appendix
Product Description: #1 Kopi Luwak
The most expensive and first-class coffee bean in the world, origins from Indonesia. Kopi Luwak is coffee made from beans that have been eaten, partially digested then excreted by the Common Palm Civet, also known as the toddy cat. This is a type of animal similar to a weasel which looks like a cross between a raccoon and a cat, also known as toddy cats. The raw red coffee beans are ingested and the outer part partially digested and eliminated. The digestive process erases all traces of bitterness. The local population looks for the scat and picks the beans from it, then cleans and sells them. Harvested beans go for up to $200 a pound and the coffee can be up to $50 a cup!

#2 Island of St. Helena

A bit less expensive is coffee from the Island of St. Helena Coffee Company at $79 pound. This coffee grows on the island where Napoleon Bonaparte was exiled, 1200 miles off the African coast. The bean itself was originally brought to the island from Yemen in 1732. Production is limited; only six estates are producing it but demand is considerable. Some years the crop is not that good because of soil and weather conditions that further contributes to its big price tag. On average, only 4,500 pounds of these beans are produced per year. The coffee has a bright citrus and berry flavor, spicy and slightly peppery with notes of cola nut and chocolate in the darker roasts.

#3 Brazilian Fazenda Santa

From Gerais, Brazil comes Fazenda Santa Ines at about $50 per pound. It is a sweet coffee with bright color and flavors of lemon and clove. It is creamy on the palate with a chocolaty body and a sweet finish. This coffee got the highest score in the history of the Cup of Excellence, receiving 95.85 points out of 100.

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