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Marketing Environment HTTP owns a modern production line and performs very well in managing quality tit international standard such as ‘SO, and others. Moreover, they have invested significantly in research and development. One of the important strengths of the company is that they have a strong distribution system. HTTP also has some limitations. The company has only one factory which cannot provide enough products to the market. In addition, the customer service of the company underperformed is another disadvantage.
The limited liability company is going to develop to Join-stock company for its benefit of such organizational structure. The weather of Vietnam creates a great opportunities for the support of tea. Therefore, HTTP has a large number of supporters. Moreover, the development of technology fosters the communication between customers and producer more easily and inexpensively. Although there are great opportunities, HTTP is suffering from competitive pressure. While the direct competitor – CO has dominated a large proportion of market, there are so many substitute products for consumers to choose for the same need.
Furthermore, the unstable economy has made some impact on the input and purchase process. Target Market The target market of Zero Degree Green Tea is Vietnamese young adults who account or a large proportion of population in Vietnam. Zero Degree Green Tea aims to be a convenient drink that is good for health and has good taste in top of consumers’ mind. Marketing Mix HTTP provides many kinds of green tea in the product line which satisfy different taste of target consumers. The Zero Degree Green Tea is produced by modern technology and contain healthy components such as vitamins.
The product is packaged in PET bottle which is reusable. The bottle is designed with green color, so it looks fresh and eye-catching to target consumers. At the beginning, HTTP follows the skimming price strategy with the Zero Degree Green Tea product. They want consumers to know that the product has good quality and healthy. At the current time, Zero Degree Green Tea has been set at the market price to compete with other competitors. Promotion strategy of Zero Degree Green Tea focuses on media advertising.
In addition, some sales promotion programs were implemented to attract its target market. Products provided by HTTP take advantage from the reputation of the company including Zero Degree Green Tea. HTTP has built good relations with society and media in variety of social activities. HTTP has invested 50 million dollar in striation and facilities. There are two new factories have been built in Chug Alai and Ha Name to provide inventory for the market in the Middle and the North of Vietnam. Zero Degree Green Tea is distributed intensively to the market through many intermediaries.
Company Description Tan Hippie Path was well known as Ben Than bear before. It was established in 1994 by Dry. Trans Guy Than. Nowadays, besides hundreds of foreign brands in drinking industry like Pepsi, Coca Cola, Tan Hippie Path almost converts awareness of Vietnamese about carbonated drink into healthier drink. Tan Hippie Pears products intended to achieve the title “Vietnam High Quality Goods” by consumers voted in honor of National Brands in 2010 and the other valuable prizes which makes the customers trust in quality management as well as environmental protection of Tan Hippie Path.
The company is recognized as Quality Management System according to ISO 9001 :2000 in 1999, Environmental Management system ISO 14001 : 2004 2006 and Hygiene Management System Food Safety HACK standards in 2006 Facilities of Tan Hippie Path Company are very large and organizing: Head Office is at 219 provincial highway located in Bin Dung, Vine PH, Than An, Bin Dung. Scale factory broader 110,000 mm, with the equipment, technological lines of research, and the most modern manufacturing Southeast Asia.
Furthermore, HTTP is proud to be one of the units owned in many produce technology, the most modern lines Vietnam as sterile lines extracted Aseptic cold, fresh beer, beverages and fermented production line. In 2004, symbolism production with advanced technology shelling of Japan was first applied in Vietnam. Than Herbal Tea, Number 1 energy drink, soy milk Soya Number 1, and so on is the leading brand in the market, has proved HTTP always go early in accessing and understanding the ever-changing needs of consumers.
For instance, the most well-known drink, also in one of the first product Tan Hippie Path has produced, Zero decree Green Tea has taken a huge place in drinking generation. Strategic Focus and Plan Vision The vision of company is to become the leading Asian corporations in three main business sectors such as industry drinks, instant food, and plastic packaging. This is measured by a lot of factors; firstly, the company is located in the top 10 leading company in the beverage market and food in Vietnam.
Secondly, it has to achieve Total Quality Management certification and international management standard. The final factor is internal market penetration; the company makes effort to enter brand of Zero Degree green Tea to Asian market. Mission Tan Hippie Path Group produces and does business the healthy products that are good for Asian consumers with the taste and quality of products according to international standards. At the same time, the company has to satisfy the highest demands of customers to deserve as preferred supplier as well as a reliable partner in business. Goal
The objective of the Tan Hippie Path Trading and Services Limited Liability Company is to create the best drink products through multiple brands such as Number 1, Zero Degree Green Tea, Herbal Tea Dry Than to consumers by an extensive distribution system and spread over 64 provinces in Vietnam. Core Competency and Sustainable Competitive Advantage Core Competency Each company has special core competency. So does Tan Hippie Path, for them, “Today more than yesterday but not right by tomorrow with Spirit” Nothing is impossible” and they commit to achieve “International quality standards”.
Moreover, the many sets orientation according to the highest spirit of family and becomes a trusted partner. HTTP group is striving to become responsible and respectable citizens in the society. Competitive Advantage To compete with the giants of world-class beverages are available in Vietnam, Tan Hippie Path beverage group tried incessantly to create differences. The advantage of HTTP is flexibility, quick decision making, know how to find out the potential demand of consumers to meet and continuous improvement.
The more important thing is that HTTP group is always interested in the development of community because it plays the important role to successes of business. Therefore, HTTP involved in social activities and charity very much. “l am aware the consumer is king, decide the survival of your business, so in order to receive the support of consumers, we have the contribution by contrast, creates belief in love. Therefore, I have captured the hearts of Vietnamese customers. Success depends on many factors, but ultimately the quality of the product remains the number one criteria. (Businessman Trans Quiz Than-CEO of Tan Hippie Path group) Situation Analysis SOOT Analysts Strengths High-quality human resources Modern productions line and productions facilities HTTP is one of the most leading firm, which achieve integrated systems stability standards: ISO 9001-2004, 14001-2000 Having large share of the market for non-gas beverage Substantial investment in product research and development Numerous award for quality, participated in many social events Wide distribution system Weaknesses There is only one factory located in Bin Dung Firm only focus on domestic market Taps beverage products compete with each other.
Customer service is not good Limited liability company Opportunities Large market with modern consumer. High quality materials contribute to improve the quality of products Climate of Vietnam will be a business opportunity if HTTP development suitable products. Tropical climate increases demand for consumer beverage. There are a large number of material supplier of HTTP, That facilitates for manufacture to ensure inputs are favorable Information technology and mass media develop image of HTTP and its products Vietnam located in South East Asia and close to ocean.
That is good position for export to foreign market Vietnam have Joint in WTFO since 2006 Drinking tea is traditional habit of Vietnamese and Asian Threats Competitive pressure: Taps products can be competed with other direct competitors like CO of ARC and other substitute goods Customers require more about quality of product and packaging. That increase pressure on R & D department of HTTP Unfair competition Inflation impact on cost of input and purchasing of customer Complex criteria of hygiene and safety Industry Analysis It is predicted that, Vietnamese beverage tent to increase gradually in gas beverages at about 5% per year.
Whereas, non-gas beverage will have a significant growth at a rate of 10% a year, within the period between 2007 and 2015. Specifically, mineral water ND bottle water will have average increase of 12% per year, fruit Juice’s figures will increase at 4-7% per year (2007-20019) and 10-12% per year (2010-2015). Most of beverage firm tends to produce and sale non -gas beverage, especially products that’s good for consumer’s health. In Vietnam and world’s beverage market, bottled green tea have been developing significantly, since ass.
Almost famous brand which have appeared in Vietnam for many year have produced green tea products in Europe, the U. S, Japan’s market. Such as: Lipton, Nestle, Unprinted, ARC. At the moment, there are a lot of green tea products which are bottled. The two most popular product are “Zero degree green tea” of Tan Hippie Path, CO of ARC. Specifically, the Statistic of Nielsen in 2011 illustrated that. “Zero degree green tea” accounted for 13% of the market while, Co’s figures were 8,1%.
Furthermore, another statistic from Nielsen also showed development of Zero degree green tea proportion in bottled Vietnam green tea market that 1/2007: 30%3/2007: 40%4/2007: 48%5/2007: 49%6/2007: 53%7/2007: 52%8/2007: 57%9/2007: Fact of tea industry Vietnam have climate and geographic conditions for growing of tea. There are 33 over 54 provinces of Vietnam grow tea. Such as Thai Unguent, Lam Dong which is famous place for growing tea in Vietnam. Within period between 2003 and 2004, Tea’s output growth steadily and Tea’s area were 100. 0006 ha.
Thus, it’s good opportunity for bottle green tea to develop because of low cost of input. Competitor analysis Since, Tan Hippie Path discovered and developed bottled green tea market, “Zero degree green tea” brand have begun to be the most popular product in the market. Then, bottled green tea have become potential market that big brands began to Join in. In consequence, there are many bottled green tea products form other firms omitted in this market. Such as: Real leaf (Coca-Cola), Fresh (Vanilla), Lipton Pure Green (Pepsi), CO (ARC).
Furthermore, many brands also diversified instance bottled green tea products. Such as artichoke tea, lemon green tea, honey green tea, free- sugar green tea. It creates their differences compared to other competitor. Prefigure 1: The bottled green tea market of Vietnam in 2011 (At-Nielsen) Although many products of many firm in the bottled green tea market, the report of Canticles illustrates that the two most popular products areas of ARC and Zero degree green EAI of Tan Hepatic. The two big ones still maintain a significant distance rather than other brands.
Investing in Vietnam with total capital of 14,5 million, CO took aggressive advertising campaign, in 2010, ARC raised the yield to 70% by expanding factories in Ho Chi Mini City and completing new one in Ha Non. To compete against opponent- Tan Hepatic which discovered and had larger market shares, CO found its own way. It is focusing on developing distribution network, particularly in big cities and choosing PET bottles which have a small capacity (mall) to fit the customer hand’s size. In consequence, ARC achieved 57% growth in Vietnam in 2011.
Therein, CO is the major revenue of beverages segment with the best growth. Company The first and most important reason why Tan Hippie Path has a high position as it is today is the company’s strengths in facilities and human resources. They have a high quality input sources from prestigious suppliers. Besides (in addition), a well- equipped infrastructure system with modern machineries, equipment, research facilities and the most modern manufacturing process in Asian, alongside with high regarded labor protection procedures to ensure safety for employees.
In HTTP, their moderators (leader) are ambitious and visionary managers: They are very flexible, make decision based on hard working researches and discussions. The success of CO Green Tea is depicted by a great effort of them while they knew how to find out the potential needs of consumers to satisfy and continuous improvement, and not afraid to roll out new products to compete in a hot market of beverage drinks. Their workers are also professionally trained and with high responsibility.
Furthermore, Tan Hippie Path has over 17 years of operation in beverage industries and serves the nonuser, company always get customer’s trust and appreciation for high quality products and service. It is Illustrated with 11 consecutive years (1999-2009), HTTP was voted as “one of the top quality brand of Viet Name” by Saigon marketing newspaper readers. The company is one of the leading enterprises of the country reached an international quality standards system such as ISO 9001-2004, 14001-2000, HACK etc.
Especially, they have a larger market share of the beverage market with an extensive distribution system. Indeed, there are other reasons for the company’s success and marketing strategies is one of the prominent factors to achieve that. Overall, Tan Hippie Path used their strengths in marketing strategies analysis and evaluation process to satisfy customer about high quality products as well as achieving mission goals. Consumer analysis Customers account for an inseparable part in Tan Hippie Path business.
Therefore, customer segmentation and analyzing consumers’ characteristics are very essential. Particularly, Tan Hippie Path realized that nowadays consumers have higher education levels and their living standard is better than before, so they always require better laity products. Viet Name is a populous country and with young population who follow modern lifestyle with fast food and convenient drink. Another pro for beverage development is a tropical climate (very hot) so this increase demands for cool drinking.
In addition, with respect to the lifestyle of Vietnamese, their products are combinations of traditional (tradition of drinking tea) and modernity (the product is capable of using fast). Tan Hippie Path provides valuable contribution to customers through health and nutrition which is one of the issues people concern today. Take example, because green tea is good for human health: increase resistance, refresh body (compare with Coca cola). O degree green tea of company is a high quality product too that is guaranteed thanks to technology bottled still in high temperatures from 86 degrees C to 90 degrees C.
This process keeps honest green tea flavor characteristics, pure quality, and nutrition. Market-product Focus Target Market Zero Degree Green Tea’s target market is Vietnamese young adults who are suffering from the negative impacts of fast-paced lifestyle such as pollution, great pressure at school and work. Therefore, they raise awareness of healthy drinks use (Best Sustained Success, 2011). Since Vietnam has youthful age structure, this target market becomes very attractive.
If GET dominates the market, HTTP can gain much profit. Points of Difference HTTP provides ready-to-drink green tea to the markets with some points of difference. Firstly, it is convenient to carry on and it saves time of making. Moreover, Zero Degree Green Tea is made by natural materials and it has no gas. Therefore, the product does not damage consumers’ health. In addition, GET taste very good with lemon flavor. Another difference is that GET is packaged in high quality bottles using PET technology and they are reusable.
Positioning The positioning of GET in consumers’ mind is a healthy product which supports energy to young consumers. Green tea is also a traditional drink in Vietnam and HTTP has made it more convenient to consume. In addition, the product has low price which is more affordable for everybody, especially young people. Marketing Program Product strategy Product line. Tan Hippie Path also provides a variety of green tea products such as free-sugar green tea, lemon green tea, honey green tea honey and lemon green tea, ND even prepare to launch green tea in box.
It has diversified the containers of original flavors such as producing lemon green tea in glass bottle, PET bottle and can to satisfy customer needs and wants. Unique product quality. Produced on modern Japanese technological production line with selected verdant leaves plucked out of tea plants on plains, green tea is able to keep its natural and pure flavor. Green tea is mad through hot extraction process in order to ensure food safety and hygiene standard and to detain precious essences of green tea. Zero Degree Green Tea has original flavors to satisfy consumer needs and increase customer value.
With nutritious element such as vitamins E, C, and especially EGG, a strong anti-dioxide element, green tea helps people to reduce stress, reinforce resistance, prevent skin ageing and cancer in order to cool down your body and spirit after a hardworking day or after a long trip. Furthermore, this products have light yellow color which is same color with nature tea and is not too much sweet. It makes consumers believe that this beverage is good for their health, although, people normally think that bottled and manned drink is harmful from color chemical and sweeteners.
It is very convenient to bring along Zero Degree Green Tea on trips, picnics, or in conferences… And sometimes simply drink it at home instead of purified water. Packaging. Its cover are designed finely because green color on it makes consumers feel fresh and friendly with the environment. It is also eye-catching and distinguished from other competitors’ products. With the use of heat-resisting mall PET bottle, the choice of trade mark logo (two circles), and green tea bears high aesthetic value under the sponsorship of Number One trademark.
Its cover are designed finely because green color on it makes consumers feel fresh and friendly with the environment. It is also eye-catching and distinguished from other competitors’ products. Price strategy Since Tan Hippie Path group explored the bottled green tea market in the early of 2006 and achieved success, this market has become an exciting” playground” with a lot of participants such as CO, Green tea 100 and Lipton green tea. In that situation, Tan Hippie Path used the advantage of “first-mover” in green tea market in order to apply skimming pricing strategy to Zero Degree Green Tea.
It means that Tan Hippie Path sets the price which was 20 % more than the others beverage. However, customers still accepted and were willing to buy the product with that price because it was still consistent with Vietnamese standard of living at that time. PET bottle Zero degree green tea Green tea 100 Lipton pure green tea some VEND 7,500 VEND 6800 mall VEND 5,500 mall VEND 6,000 Figure 2: Retail price comparison of RED green tea 2011 in Vietnam Although the price of zero degree green tea is higher than others, the customers really desiring the product are willing to pay.
These people are not very price sensitive because they usually concern more about the quality of the product. When the company sets the higher price compared to the competitors, the customers think that the quality of product is higher than others, too. Tan Hippie Path grasped clients’ psychology which most consumers believe that the high price is the good quality. This is one of the factors contributing to the success of this product. However, nowadays, the green tea market becomes more and more competitive with a lot of new brands penetrating the market such as Tea Plus, Fresh, Wonderland and Thin Tar.
The customers have ore comparisons about price and quality between the different brands to choose the best product for themselves. Therefore, Tan Hippie Path does not concentrate on skimming price strategy as the first time. The price of Zero Degree green Tea at the moment is medium compared to the other brands in the bottled green tea market. However, within the advantage of “first mover”, Zero Degree Green Tea has been known and believed in high quality and healthy product, so customer behavior does not change significantly in purchasing decision making.
Moreover, setting the medium price is also another advantage of this product in today’s market because he company can prevent some brands from entering the market. If Tan Hippie Path still keeps high price as the first time, this makes lots of chances for the other brands entering the market by setting lower price but also ensuring to earn profit. Promotion strategy Zero Degree Green Tea is the first ready-to-drink tea in the market of Vietnam. By understanding consumer’s psychology, it had a high position in the consumer’s perception. However, today the market has a lot of substitute products.
Facing this risk, it should focus more on promotion strategic to attract consumer. Tan Hippie Path articulated on activities sponsored in many different fields such as: sports, arts and culture-social activities. Whether being charities donation or trade the item are not out the main purpose for the consumer that is make consumer know about the product and its brand. In the year later, Tan Hippie Path was standing in the top 10 businesses spent on advertising in Vietnam. The most activities are funded biggest like brands for health care, such as: green tea, Barley tea.
Advertising. The media which was used in advertising of Zero Degree Green Tea was variety such as newspapers, magazines, televisions and outdoor advertisement. Zero Degree Green Tea has creative advertisement, which has been broadcasting in popular channels like WV, TV and Vietnamese cable TV like ACTS, heal, Lets Viet, yang TV, ACTS. Target customers is people who concerned with health and nutrition so their advertisement concentrated on delivering the idea that Zero Degree Green Tea is able to keep tea’s natural and pure flavor.
Print Advertisement was posted on almost newspapers such as Auto tree (Youth), Than nine, The gigs pH nu (Women’s World), Tip HTH gig Dinah (Marketing family). Advertising campaigns about utilities and benefits of Zero Degree Green Tea which were posted 1 time/week in 3/2006, is presented in the newspapers and magazines. There are several bus stations in which Zero Degree Green Tea puts their advertising panels. Painting advertising on the buses is also the best way for attracting consumer. Moreover, people possibly notice on those advertisements and try to drink Zero Degree Green Tea.
They use tools to support sales such as promotions, consumer sampling, sampling route, display products, posters, billboards, organize event to increase brand perception for consumers. Internet is the quickest and shortest way to deliver information to any consumer. Their own website which is updated regularly. They also use social network such as backbone which is crowned with young people in community network. In some popular websites for specific group of people (zing. Van, heal . Com, yang. Net), Zero Degree Green Tea puts their animated banner to display attractively their product.
Publicity and Public Relations. In the economy’s situation today, advertising is declined gradually and abdicated for PR then raising activities and the creation of corporate value are not only in the quality of product, but also the brand’s image associated tit the community activities. Tan Hippie Path considered this as a principle of its business operations. Zero Degree Green Tea’s brand associated with sports activities, typical is ‘Student contest: Literature – Fitness -Art 2012 U – League’ (Hoi HTH sins vine Van-The-My 2012 U-League).
Besides the programs funded to the health care of community that were done by Tan Hippie Path such as ‘Day for blood glucose testing and caring diabetes patients’ (Nagy hoi HTH dung yet VA sham Soc been Nan dad that dung); TV Program ‘For the quality of life’ (Vi chat lung choc song) aired on HTTP. The meaningful of community activities have asserted Tan Hippie Pat’s brand increasingly not only production, good business but also serving the community benefits. Tan Hippie Path Group and music channels Hanta signed cooperation within two years from 9/9/2009.
Because their customers are young people and with the same goal which is bringing quality products to consumers, the cooperation between the two sides will support each other in business expansion and exploitation market potential and advertising two brands. Tan Hippie Path got many certifications such as Vietnamese flag of Ministry of Labor, Invalids and Social Affairs’ Unit Emulation excellent work of occupational safety and health in 2006 (03/17/2007); certificate of famous Brand country (26/04/2008); -ran Hippie Path received Vietnamese’ Gold Star Medals, honoring businesses WTFO, Vietnam Dragon Symbol (30/0112010).
These prizes and certifications are recognition of government and community about product’s quality. Sales promotion. Tan Hippie Path had many promotion’s methods such as discount for buying block, lucky prices, promotions in supermarkets and other retailers to applying for consumers. They organized a lot of activities to promote and deliver their product. For example, promotion program ‘Fun spring, torn label, winning gold’ (Year of the Dragon 2012); Zero Degree Green Tea-life moments cooling-Khan shack gigs intent choc song (2012); Zero Degree Green Tea- smile spread-Nu quoi Ian too.
Goal of this event is creating opportunities for people to laugh with all people in Vietnam and spread the spirit of optimism, love of life to other people, discover the power of smile. In addition, Tan Hippie Path also held mini- contests for community networks on fan page of Zero Degree Green Tea. Game- shows were taken place every week with attractive gifts. On the occasion of holidays, hey were a sponsor for the promotion of the discount programs of Big C supermarket, Co-pop mart, Metro to stimulate consumption on last year’s holidays.
Personal selling. Main orientation of Zero Degree Green Tea is most concerned with agency. In the mature stage of the product life cycle should not promote this tool. Because of customers and distributors were aware of product’s brand in market. Primarily based on advertising to inform, persuade and remind customers. Direct marketing. The company will directly promote their product to targeted customer and improve brand awareness as well. Tan Hippie Path has always focused on tools of discount for sales to wholesalers and retailers.
Promote policies and programs as well as support sales and promotions to attract and retain the principal agents. Promotion cost. Nowadays, Zero Degree Green Tea is high in position in the product life cycle. Advertising campaign in favor of psychology attained good results in building images of a natural product, beneficial health, bringing fresh feeling fresh, cool. At the same time, awareness of the tea’s benefits for consumers is quite high (over 50 %), besides that the Joining of another brands such as CO, Fresh, tea plus, hat also contributes to increasing competition in the market.
Advertisements are not only introducing the product but also its purpose is increasing revenue and profit. However, depending on the life cycle of products that promotions have a certain goal, Zero Degree Green Tea of Tan Hippie Path is on saturated stage of the life cycle of product while rivals the brand’s market share is quite Vietnam large, each brand launching different strategies to attract customers. It leads to market which is influenced by many factors detrimental to business so at this time, the primary objective of business is strategy to compete with rivals and large market shares.
Therefore budget planning which is suitable for promotional activities will contribute to the success goals. Figure 3: The promotion cost and revenue of Zero Degree Green Tea over the period of life cycle product At the present, the bottled green tea market share is full, Zero Degree Green Tea has to compete more drastically with other opponent. Tap Hippie Path was assessed one of five companies having the highest promotion cost in 2009. Specifically, promotion cost increased 3 times at that time, while other competitor’s figures were quite small