Duy Le Nguyen- Market Entry Strategy 2014 (1)

21
1 | Page 2014 MARKET ENTRY STRATEGY By Đặng Bùi Phúc Khang và Nguyễn Lê Duy. From Tran Dai Nghia High School for the Gifted. Attended Ho Chi Minh City’s workshop.

Transcript of Duy Le Nguyen- Market Entry Strategy 2014 (1)

Page 1: Duy Le Nguyen- Market Entry Strategy 2014 (1)

1 | P a g e

2014

MARKET ENTRY STRATEGY

By Đặng Bùi Phúc Khang và Nguyễn Lê Duy.

From Tran Dai Nghia High School for the Gifted.

Attended Ho Chi Minh City’s workshop.

Page 2: Duy Le Nguyen- Market Entry Strategy 2014 (1)

2 | P a g e

Table of Contents Target Market ................................................................................................................................. 3

Product ...................................................................................................................................................... 4

SWOT analysis ............................................................................................................................................ 6

Competitor analysis ......................................................................................................................... 8

Distribution .............................................................................................................................................. 12

Marketing ................................................................................................................................................ 14

Evaluation .................................................................................................................................... 17

Pricing ..................................................................................................................................................... 18

Time Frame .............................................................................................................................................. 19

Goals .......................................................................................................................................... 20

Page 3: Duy Le Nguyen- Market Entry Strategy 2014 (1)

3 | P a g e

Target Market:

Target country : Canada

Canada is located in North America with 10 provinces and 3 main territories.

With the population of 35,344,962 people and area of 9.98 million square

kilometres in total, Canada is the world largest country. In terms of

prosperity, Canada is a developed country and of the wealthiest in the world,

with the eighth highest per capita income globally ($43,146 per capita).

For economy, the country features a big market with all kinds of good and

item in addition with a great amount of potential customers. To the location, since the country is located in

America, the world biggest economy, this creates really good chances an enterprise to reach to other

marketplaces, for example United States.

Although there are plenty of strict regulations requiring each exporting company to obey, the government in

Canada has been introducing new laws helping foreign companies to invest into this country’s market.This

is surely an invaluable opportunity for any brand which wants to export goods to Canada.

Commenced target city: Toronto

Toronto is the most populous city in Canada (2,615,060 people) and the provincial capital of Ontario. As

Canada's commercial capital, it is home to t and the five largest banks in the nation. Leading economic

sectors in the city include finance, business services, telecommunications, aerospace, transportation,

media…etc, Torontor is ranked as one the world’s most liveable city. Considering all of the facts above, this

is the perfect city for a foreign company to make its first paces into

Canadian’s market.

Target customer:

People at the ages from 25 to 65 who go to the market often and concern

about healthful food.

A large number of VietNamese people living in Torontor ( 45 000

people)

Ideal customers:

Women at the ages from 30 to 54 who have got married and had

children with the average income of a Canadian ( $ 21.85 per hour).

Page 4: Duy Le Nguyen- Market Entry Strategy 2014 (1)

4 | P a g e

Product:

Market research:

Canada is one of the most developed and prosperous country in the world, therefore the Canadian

government is willing to invest a huge amount of money into many aspects of the country’s economy in

order to promote the affluence of Canada. Fruit trade or fruit farming are these two of the top concerns of

Canadian ruling elite. According to a survey conducted by Canadian agricultural ministry in 2010, the

government spent nearly $3,662,272000 importing 2,479,160 tonnes of fruits other neighbour contries. In

addition, Canadian government also showed much interest in fruit-based products when almost $2,943

million in total was used for importing these types of

products. Those figures have kept increasing stably and not

faced any sign of decreases recently.

Furthermore, Canadians always care for their health as well

as keeping fit since they are extremely conscious in

choosing types of fruits supplying vital nutrients for their

body. In a survey in 2009, scientists showed that Canadians

had long life expectancy, which was 79 for males and 83

for females at that time. This can be attributed to the high

consumption of healthy fruits of Canadians. According to

data in a survey of Agricultural Ministry, each Canadian

consumed about 7.18 kg of apples; 6.65 kg of bananas and

3.41 kg of grapes per year. This more or less proves that Canadian customers tend to include fruits in their

top lists whenever they go shopping.

→ Canada is a real potential market for a new business brand like us to import our products to the country.

Athough Canada is well-known for many kinds of tasty fruits such as apples, oranges,grapes,kiwis… it is still

lacking in tropical fruits like those in Asian countries. In a research conducted by Vietnamese Trade Ministry,

the data presented that Canadians showed much interest in dragonfruit since it features various nutrient values,

plus one dragonfruit is more than just being eaten, it can be made into a vast array of drinks such as wine or

syrup containing ingredients essential for bodily functions.

Why are our products unique ? :

Our dragonfruits are grown accordingly to the VietGap protocol.

This is a part of the Global GAP protocol, it is now testified and put

into action under the supervisor of Vietnamese Agricultural Ministry.

With this VietGap protocol, dragonfruits from out company will be

raised on extremely strict regulations about agriculture, each day

there will be one or two

staffs from the company

available on the

dragonfruits’ field to ensure that they are in good conditions and

those staffs have a duty to take note of everything in the process

of farming or harvesting in order to avoid harmful things

occurring to the fruits. Therefore our products are guaranteed for

being completely safe, healthful for human body as well as

environmental-friendly (even our bottles are made from

recyclable materials). Since they are grown only in organic

conditions without any chemicals, they are much cheaper than

any other dragonfruits in same market.

Dragonfruits and commodities from dragonfruits:

Our company provide customers with three main products below:

Page 5: Duy Le Nguyen- Market Entry Strategy 2014 (1)

5 | P a g e

→ Our products will easily meet the customers’ demands as they are organic, eco-friendly, cheap and on top of

that, healthful.

Dragonfruit Dragonfruit Juice Dragonfruit sparkling wine

Description Red-covered fruit with

white flesh and various

edible small seeds inside.

Very soft, sweet and tasty

flesh.

Special type of drink made

from organic dragonfruits

by a VietNamese

traditional process.

100% extracted from

dragonfruits without any

harmful additives or

chemicals.

A wonderful

combination

between organic

dragonfruits and

modern way of

making wine.

Usage Can be eaten directly or be

scooped out by spoon (the

flesh) before eating.

Used as a supplement to

other kinds of food such as

cocktail, yoghurt, ice

cream…etc to make it

tastier.

Drink directly from the

bottles.

Main ingredients for

syrup, pudding, cakes,

cocktail, yoghurt…etc.

Drink directly from

the bottles.

Main ingredients for

syrup, cocktail… etc.

Indispensable drink

in party, reunion or

pub and club.

Benefits Good for bodily functions, digestion and laxative.

Help cure cough, fever…etc

Highly recommended fruit for those suffering from diabetes, obesity, high blood pressure and the

elderly ( not including wine)

Page 6: Duy Le Nguyen- Market Entry Strategy 2014 (1)

6 | P a g e

Positioning:

Resources:

- Dragon fruit is a year-round fruit, meaning it is available throughout the year.

- Set standards according to international GAP standards to control the quality needed of the fruits.

- Aim for the introduction of an exotic food into Canadian soil as well as provide a solid standpoint for

Vietnamese agricultural values in Canada.

- Target Canadian along with Vietnamese communities since the dense Vietnamese population in

Canadian cities is also a major factor to take into consideration.

Therefore, dragon fruit is a suitable means in order to attain these goals.

Service:

- Time is of the essence since our products are organically based. Therefore, transportation and delivery

is our number one priority. The required goods will find itself in Canada within the same week in which

they are ordered.

- Constant research and feedback analysis will be conducted in order to continuously improve our

products as well as enhance the extent to which the customers’ interest lies in our products.

- Delivery service in Canada is mainly by means of delivery companies.

Price:

- Since what our company is offering are organic food and beverage, the price should be reasonable

considering the average cost Canadian willing to pay for groceries, which is about 200-300$ per month.

SWOT ANALYSIS:

STRENGTHS :

Our dragonfruits are grown in VietNam before

transferred to Canada → Approriate tropical weather

creates best condition for the fruits to grow.

VietNamese farmers have long-life experiences in

growing dragonfruits tastier than any other countries

→ Customers will surely love our goods.

All of the fruits go through a strict process of

selection in advanced to being exported to Canada →

Customers will buy our most qualified fruits.

We grow the fruits accordingly to the VietGap protocol, we use non- preservative

approaches to preserve our fruits → Customers are assured about our products’ safety.

We features fast delivery services → there will not be any shortage of goods and

customers are satisfied about the time.

We have a team of friendly, accomodating staffs having good command of both English

and French → easily communicate with customers and create a good view of us among

them.

WEAKNESSES:

We are still a weak, unknown brand to Canadian customers.

We do not have a wide coverage in Canadian market, only provide products for

customers in Torontor.

Page 7: Duy Le Nguyen- Market Entry Strategy 2014 (1)

7 | P a g e

Have low capital ( compared to other enterprises) →difficulties in advertising

products and using transportation because of high cost.

Not have first-hand experience in working in a big market like Canada → struggle a

lot while facing possible obstacles in the future ( changes in taxation, economy

depression, inflation…etc.)

OPPORTUNITIES:

Viet Nam is among the countries benefitting from the Tax Incentives Regulation of

Canada → tax imposed on fruits is 0% → easily get into Canadian market.

Canadian government has a keen on importing fruits and

fruit-based products from other countries ( look at the

Market Research to see the data) → great chances for our

company to secure a good position in Canadian market.

Canadian customers are interested in healthful and safe

fruits or fruit-based products ( look at the Market Research

to see the data ) → Our produts meet these two inquiries.

More Asian people are living in Canada nowadays ( 12%

for South Asian people, 14% for Chineses in 2001 and the number keeps increasing

) → they are among our most potential customers.

VietNamese Agricultural Ministry is spending money on researching to create new

kind of dragonfruits →Our company will have chances to diversify our products

from dragonfruits in the future.

Government in VietNam has introduced laws to encourage trade companies to

export goods into American or European markets → We are more likely to succeed

in big market like Canada.

THREATS:

There are many strong competitors, both in American and Asian regions.

Diseases or plagues still occur in some regions planting dragonfruits in Viet Nam →

take more time and money to cure diseases before harvesting.

The economy in VietNam and around the wolrd is still unstable.

A lot of new enterprises from many Asian countries are investing more

money to outmatch VietName companies in dragonfruit export ( for example:

China) .

Page 8: Duy Le Nguyen- Market Entry Strategy 2014 (1)

8 | P a g e

COMPETITOR ANALYSIS:

* Asian regions: 1. Thai Agri Foods Public Co.Ltd : one of the most powerful trade companies, father of the famous

dragonfruit juice brand Foco. Every year, the company exports a large amount of canned or frozen

fruits ( including dragonfruits) to American Markets such as Canada.

2. Chinese companies : Each company in this country is encouraged by the government to start

planting and exporting dragonfruits to other markets so as to make

Viet Nam lose its exclusive position in the world market.

* American regions:

1. Welch’s : a world-famous brand since 1869, its brand has gained

much trust and credit from customers around the world. The fruit-

based beverages and other produts of this brand are extremely

popular to customers in any countries.

2. Pitaya + : A brand in Nicaragoa, although it is still young

compared to other brands mentioned above , its products from

dragonfruits are tasty and reliable. The brand name has spoken

everything: Pitaya ( dragonfruit), it means that the company only

focuses on dragonfruits.

3. Bai : Another famous juice brand in

America. It specialised in creating vast

array of juice from various fruits healthful

for people. Dragonfruit juice is the first big

success of the brand, leading it to become a

well-renowned one.

For Chinese companies:

Although they spend a lot of money on researching new

type of dragonfruit to outmatch Viet Nam this trading

this fruit, they still rely on Viet Namese trade companies

to supply them with dragonfruits so that they can start the research.

For Welch’s enterprise:

This brand has gained popularity all around the world since 1869 with a lot of fruit-based

products. However, the company is most well-known for its grape juice, not dragonfruit.

→ We have chances to win these two competitors in Canadian market.

Page 9: Duy Le Nguyen- Market Entry Strategy 2014 (1)

9 | P a g e

→ Thai Agri Foods, Bai. Pitaya + are the three biggest competitors:

In order to compete with other brands, we will :

_ Focus more on our advantages and differences:

Assure that our goods always arrive

in time and remain intact to

guarantee our customers that our

delivery service is reliable and safe.

More careful observation on

dragonfruit harvesting or farming to

collect freshest and tastiest

dragonfruits.

_ In addition to selling products, we offer some other services:

Customers advisory through phones or e-mail: Customers can

call us through hotline or send us emails to ask anything about

our products, about usages or effects of juice or wine. They can

also ask us about recipes to make more food or pastry from our

goods.

Since our bottles are recyclable, whenever our clients finished

drinking the juice without damaging or throwing bottles away,

they contact our staffs to arrive at their houses and collect the

JD Fruit Pitaya + Thai Agri Foods Bai

Brand Weak,

new,unknown brand

Famous with many

customers in

various nations for

its special and tasty

products

Has even 28 years

in establising brand

and trust with

customers

Has only 5 years in

building the brand

but quickly gains

popularity among

customers

Scale Medium selling

system, focuses

only on Toronto

retailers or

supermarkets

Well-known in

many American

countries and some

Asian countries

Products exported

to more than 70

countries in the

world

Famous all over the

world

Delivery Fast , maxium only

two days with low

cost

Poor, possible 1-2.5

days

Fair, possible 1- 2

days.

Fast, from 1 to 2

days.

Price Low High Medium Very High

Differentiation _ Export fresh

dragonruits directly

from farms to

Canada, not canned

or frozen fruits like

other brands.

_ Juice and wine

with 100% made

from best

dragonfruits

_ Bottles are made

from recyclable

materials

Has exclusive

frozen pitaya

smoothie packs

Invest much money

in building factories

→ goods available

throughout the year

to be exported

Has antioxidant

products.

Page 10: Duy Le Nguyen- Market Entry Strategy 2014 (1)

10 | P a g e

bottles. The more bottle they give to us, the more bonuses they can obtain, these bonuses will help them

get prizes or promotions from our companies.

_ After achieving our short-term goal, we are going to:

Start to build a second factory in Viet Nam as well as make a market

entry plan into Ottawa- the second largest city in Ontario.

→ We will expand our scale gain

more customers throughout Ontario.

Try to diversify our products more to export some new kinds of

dragonfruit ( for example the one with red flesh inside) . Our companies

will make more researches so as to combine dragonfruit with other flavor

like mago,apple,grape to make the drink more mouth-watering.

Page 11: Duy Le Nguyen- Market Entry Strategy 2014 (1)

11 | P a g e

Distribution

Initially, regarding obtaining the dragon fruits, we will

contact farmers in Phan Thiet and Long An, two

provinces renowned for planting this fruit, and other

private providers.

Secondly, after careful selection based on our own

standards, the fruits are then transported to the factory where they will be classified and processed according to

import purposes.

Immediately after processing, the resulting products will be stored in our storage where they will be refrigerated

to prolong their freshness.

Then, the products will be transported to Canadian ports, particularly in Toronto, by means of airlines due to

the nature of food as a whole. Once there, the arrived goods will be stored in another storage in Canada for

distribution. Next, because of the geographical properties Canada, mostly prairies and plains in the south and

southwest, and the population distribution, which consists of dense population in the south, delivery to our

retailers such as local supermarkets and grocery stores through mobile vehicles is of a matter of sensibility.

Canada, in addition to geographical advantages, also has an expansive railway system which has a total length of

49,422 kilometers. Therefore, trains is another way for us to transport our products in Canada.

As for the retail system, our company will convince major retailers in Canada, specifically Real Canadian

Superstore, owned by Loblaw Companies, and Walmart Canada, to allow our products to be on their shelves

since they specializes in offering customers a wide array of goods.

Moreover, the company will also advertise and merchandize our products through our own website. The site

will be supplied with catalogues and details of specific details of every product. Customers can order online and

we will have the required products delivered from our storage to Canada by means of airlines in a maximum of

two weeks.

Page 12: Duy Le Nguyen- Market Entry Strategy 2014 (1)

12 | P a g e

Farm

Graph showing how we distribute our products:

*In Vietnam

*In Canada

Factory

Storage

Private

sellers

Buying

Buying

producing

TRA

NSP

ORT

ATI

ON

CANADIAN PORTS

Retailers (grocery stores, supermarkets, …)

E-

commerc

e website Marketing

Customers

Shipping

Storage

Page 13: Duy Le Nguyen- Market Entry Strategy 2014 (1)

13 | P a g e

MARKETING

There will be two main approaches in our marketing strategy:

A. Marketing through mass media :

Brochures :

We will send our staffs to many crowded

places like offices, schools, social clubs, sports

clubs to give out brochures featuring vital

information about our products. For

neighbourhoods, our staffs will leave the brochures

on doorsteps or in mail boxes so that the occupants

can get the information without being disturbed.

Newspapers:

Pictures with information in details about our

goods will be provided in the classifieds of all

kinds of newspapers, from daily one (Metro,

Toronto Star…) to weekly one (York Guardian, City Centre Mirror…) and even multicultural

newspapers ( Vancouver Shinpo, Việt Báo, Corriere Canadese, Das Journal…)

Television:

Canada is a very developed country, therefore it has a wide networks of televisions

throughout the nation.

→ Advertising on TV will not only bring our brand to customers in Toronto but in any regions of

Canada.

Since Canadian uses French and English as their main languages, our advertisements will be

featured both English and French national channels such as CTV Northern Ontario, CBC

Television, TVA…

Internet:

Page 14: Duy Le Nguyen- Market Entry Strategy 2014 (1)

14 | P a g e

About 69% of connected households used more than one type of device to go online

in 2012.Laptop and desktop computers remain the preferred types of hardware of Canadians to

access the Internet from home, with 74% and 62% of connected households relying on those

devices respectively.

→ One of the fastest way to let clients know about our brand.

Our own websites :

* We will establish our own official website right after we start to launch the

strategy in Toronto. This website includes:

_ The company profile → help clients know about us

_ Basic information about our products, the usage, the price, benefits → Customers have time to

decide which one they will buy.

_ Recipes about how to make food or drinks from dragonfruits

→ Support customer, especially housewives in their daily cooking.

_ Some fun facts or stories about our dragonfruits, our products or the process of producing and

harvesting in our company while in Viet Nam.

→ Entertain customers, help them know more about this tropical fruit.

_ Our e-mail address or phone number, office address to contact → Help customers easily get

access to the company in case they have some inquiries. This is also the way people contacting us for online

buying.

* There is always one of our employees on duty to answer any question people contact

us through e-mails or phones.

* The web will be uploaded all the time for new pictures, new information, stories, and

contents so that people find it interesting to log into our websites.

Other websites:

* We will put our ads on other websites of Canada, regardless of whether that

website is big or small. Therefore whenever people log into a

web, they will certainly our ads and know about our brands, day

after day the numer of people knowing about our company is

growing bigger. Furthermore we also focus on websites about

family, health, staying fit,medicince ( Canada Safety Council,

AboutKids Health, Dietitians of Canada…) since these ones are

about what our products provide.

* We can also make deals with other websites so that we are

allowed to put our ads on their webs and vice versa.

→ Another way to promote our brand to other enterprises for

future cooperation.

E-mail service:

Customers are encouraged to sign up this

service when they buy our goods. They are

sent e-mails letting them know about new

activities, new sale-offs or promotions,

changes in price or products so that they will

easily get hang of any new information from

our companies. Those e-mails will include

best wishes for them from us on special

occasions in the year.

Other social websites such as Facebook, Youtube, LinkedIn are also used for advertising by uploading fun

videos and pictures about tips, facts or even quizzes for customers to answer and get prizes.

Billboard:

We are planning to build a billboard in Toronto with pictures of our products and company

logo on it. However because of high cost,we decide to build only one billboard at the heart of

Toronto.

B. Marketing through activities, interactions with clients:

Page 15: Duy Le Nguyen- Market Entry Strategy 2014 (1)

15 | P a g e

Build relationship with potential and close customers:

Every customers usually buying our products in any possible ways will be asked to inform us about

their personal information so that we can put in separate VIP customers profiles. These clients will

have chances to gain many benefits that other normal customers do not have:

E-mails:

This is the same with e-mail service above but these customers are given priority in

sending them e-mails or replying their e-mails without signing up.

Presents:

For individual clients or retailers, on every occasions ( New Year, Christmas,

birthdays…) we will send them special presents in addition to cards with our best

wishes for them.

For other enterprises or supermarkets, apart from Christmas and New Year, we will

send presents to the presidents or CEO of the companies on their birthdays or on

companies’ birthdays.

Vouchers or promotions:

Those VIP clients can get more sale-offs or discounts from vouchers and promotions

whenever they buy our products on special occasions like holidays or at the end of the

year.

Special activities on holidays:

_ Before some holidays such as Thanksgiving Day, Christmas, New Year people usually buy

more fruits, juice and wine for their family reunion party on those occasions. This is when we

give out promotions by selling vouchers or holding sale-offs.

On these days, we also have special gift baskets which are

carefully and beautifully wrapped by our staffs on stock

for people who want to buy our products as gifts for their

relatives.

This programme goes the same for Women’s Day and

Empire Day.

_ On summer holidays ( from June to September), our

company will hold 4 summer classes ( one class in one

month) for kids interested in cooking. Attending those

classes, children will learn many things about dragonfruits

as well as Viet Nam through various fun activity games. The main part of the class is to teach

the kids how to cook and make food,cakes, pastries with dragonfruits, the teachers will be

skillful chefs we invite from Viet Nam. At the end of each class, they still have chances to get

presents from the chefs.

_ A month before the end of summer holidays, we will hold a stamp collection programme.

Different stamps will be attached to our products ( the supermarket staffs will directly give

customers stamps if goods they buy are dragonfruits), people can exchange their stamps for

matching presents. The presents are school tools such as notebook, pencil case, pen,pencil

case,bag… for the kids to start a new academic year.

Collecting bottles for recycling:

( see the competitor analysis)

Online Quizzes:

Every month, we will upload questions or puzzles related cho our products and our country on

Facebook Fanpage, official website.Customers can log in and take part in the quizzes, fastest

people with best answers are granted with prizes or vouchers.

Cooperating with drug stores:

We will sign contract with some pharmacies in Toronto to supply our juice for them as a kind

of nutrious drink.

→ Make people feel safe about our products and see its nutritious values.

Cooperating with schools:

When there are big extracurricular activities held in some schools such as sports festival,

camping…, we volunteer to be a sponsor in that activity and will provide drinks, desserts

(dragonfruits) for students during the activity.

Page 16: Duy Le Nguyen- Market Entry Strategy 2014 (1)

16 | P a g e

Charity:

Our representatives will join in charity trips to orphanages, nursing homes,

hospitals, mental instituions… held by city authority.

Cooperating with tourism companies:

When there are groups of Canadian tourists coming Viet Nam, we will work

with the tourism companies to let them visit our dragonfruit farms, they have

chances to taste delicious dragonfruits which have just been harvested right on

the farms in addition with other tradition Viet Namese food made from

dragonfruits.

Page 17: Duy Le Nguyen- Market Entry Strategy 2014 (1)

17 | P a g e

Evaluation

One of the best way to succeed in building

a new brand in a new market is to

evaluate our business and keep changing

for new approaches, here are some ways

we can utilize:

Products:

We will continue to keep record of sales of the company and eventually plan a thorough evaluation to see the

rate of sale of each of our product. Then, based on other sources such as customers’ feedback through surveys

along with the aforementioned evaluation, we will regulate the quantity as well as the quality of the products to

avoid overabundance of items in stock. In addition, our company will continue to research into customers’

interest, creating more diversity so as to discover and capture their preferences for our products and favor in our

brand. As a result, this could take our brand to a higher level of fame and popularity in the eyes of other retailers.

Customers’ feedback:

To keep our customers interested in our company’s products, constant

monitoring is necessary. We will continually conduct surveys via our

own website and analyze the amount ordered of each of our products.

Also, direct and personal interactions might be required as we will give

out samples at supermarkets and local stores to collect users’ opinions.

From the information gathered, improvements to the quality and

alteration in quantity can be decided and profit can be more assured. We,

consequently, will be able to preserve our customers’ patronage as well

as to attract many others.

Profit:

As set in our short-term plan, we will closely monitor our sale

throughout the year while devising several smaller targets in order not

only to make it easier to reach our goal but also to promote flexibility pertaining to other variables such as

market fluctuations, customers’ demands, … thereby reducing losses and increasing gains.

Connections and cooperation:

Whether our company is successful or not is a question based hugely on whether we can create connections with

other retailers and possibly expand to wholesalers in Canada. Therefore, it would be wise for us to establish

contact and form business relationships with as many retailers as possible as the more products sold the better.

New layouts according to holidays:

Physical appeal is also taken into account when we will transform the covers of our bottle and packages to suit

the holiday. For example on New Year holidays, all of our bottle covers will be turned into red colour while on

Christmas it will have some small pictures of snow or santa claus printed on the cover. These can be said to be

small things but it still creates interesting attitude fro customers whenever they buy our products.

Page 18: Duy Le Nguyen- Market Entry Strategy 2014 (1)

18 | P a g e

Pricing

Factory + Machinery + Storage in Vietnam (equipment fees): 30 000$

Materials: 45 300$/year

Storage in Canada: 16 800$/year

Domain fee for website: 144$/year

Total salary: 121 000$/year

Air freight fees: 28 000$/year

Distribution: 3 600$/year

Advertisement: 6 000$/year

Total cost of goods: 250 844 + costs incurred = 260 000$ (230 000 excluding equipment fees in the following

years)

Raw price

- Juice: 1.5$/bottle

- Fruit: 1$/kg

- Wine: 3$/bottle

Selling price (VAT 5% included):

- fruit: 2.625$/kg (VAT = 0.125$)

- juice: 4.2$/bottle (VAT = 0.2$)

- wine: 8.4$/bottle (VAT = 0.4$)

Gross profit per product per unit:

- juice: 4.2 – 1.5 – 0.2 = 2.5$/bottle

- fruit: 2.625 – 1.5 – 0.125 = 1$/kg

- wine: 8.4 – 3 – 0.4 = 5$/bottle

Plan of sale in 1 year: profit (excluding 5% VAT)

36 000 juice bottles/year: 36000 x 4 = 144000$

12 000 wine bottles/year: 12000 x 8 = 96000$

10 800 kg of dragon fruits/year: 10 800 x 2.5 = 27000$

Total Revenue: 267 000$

Break-even point reached (in 1 year if favorable or 2 years at most)

Page 19: Duy Le Nguyen- Market Entry Strategy 2014 (1)

19 | P a g e

Time Frame

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Production

(harvesting

and producing)

• • • • • • • • • • • •

Shipping and

distribution • • • • • • • • • • • •

Advertisements

programmes • • • • • •

Sale-offs • • • • • Monitoring • • Company

Conferences • •

Page 20: Duy Le Nguyen- Market Entry Strategy 2014 (1)

20 | P a g e

Goals Short-term goal:

- Selling 36 000 juice bottles, 12 000 wine bottles, 10 800 kg of dragon fruits to reach the break-even

point in one year if possible and 2 years at most.

- Aim for 70%-80% of our ideal customers.

Long-term goal:

- Expand to retailers in other cities such as Montreal, Ottawa,… and reach out to wholesalers in Canada.

- Use the information and position here in Canada to form a stepping stone for our company to enter

other nations in North America such as the US, Denmark,…

Page 21: Duy Le Nguyen- Market Entry Strategy 2014 (1)

21 | P a g e