HO CHI MINH CITY UNIVERSITY OF FOREIGN LANGUAGES INFORMATION TECHNOLOGY
FACULTY OF INTERNATIONAL BUSINESS ADMINISTRATION
---------***--------

MARKETING FINAL PROJECT
Major: Basic Marketing

MARKETING STRATEGY FOR FROSTY
FEATHER SUGAR-FREE ICE CREAM IN
HCMC
Group’s Name: Gỏi Cuốn
Member: Nguyễn Duy Khang – 17DH491457
Nguyễn Phúc Hiền – 17DH491457
Trần Thị Thúy Nhi – 17DH491066
Course: 2017 – 2021


Ho Chi Minh City, June /2021
Table of Contents

1.

Executive Summary (International/Global Marketing Imperative)...................................... 3
1.1.

Overview automotive industry present in the world.................................................................. 4

1.2.

Overview automotive industry in Vietnam................................................................................... 4

2. Present Marketing Situation: The company performance & a rational for your
country chosen................................................................................................................................................... 5

3.

4.

5.

6.

2.1.

The company performance.............................................................................................................. 6

2.2.

Distribution......................................................................................................................................... 7

2.3.

Rational for Vietnam......................................................................................................................... 7

International marketing macro environment (PESTLE Model)............................................. 8
3.1.

Political................................................................................................................................................ 8

3.2.


Economic............................................................................................................................................. 9

3.3.

Social/Cultural................................................................................................................................. 10

3.4.

Technology........................................................................................................................................ 10

3.5.

Legal................................................................................................................................................... 11

3.6.

Environment..................................................................................................................................... 11

International marketing microenvironment (Competition, Suppliers, Customers).......12
4.1.

Competition...................................................................................................................................... 12

4.2.

Supplies.............................................................................................................................................. 13

4.3.

Customers.......................................................................................................................................... 13


SWOT Analysis...................................................................................................................................... 13
5.1.

Strengths............................................................................................................................................ 13

5.2.

Weaknesses....................................................................................................................................... 14

5.3.

Opportunities................................................................................................................................... 14

5.4.

Threats............................................................................................................................................... 14

International strategic planning of STP........................................................................................ 15
6.1.

Segmentation.................................................................................................................................... 15

6.2.

Target................................................................................................................................................. 16

6.3.

Position.............................................................................................................................................. 17


2


The entrance strategy (market entry strategy/penetration)................................................... 17

7.

8. Marketing strategy concepts (Adaptation/Standardization/Adapted standardization)
18
Product – Standardization............................................................................................................. 19

8.1.
8.2.

Price – Adaptation........................................................................................................................... 19

8.3.

Place – Standardization.................................................................................................................. 19

8.4.

Promotion/ Communication – Standardization......................................................................... 20

The International marketing objectives........................................................................................ 20

9.
10.


Recommending international marketing strategy solution (4-7Ps)................................. 21

10.1.

Product.............................................................................................................................................. 21

10.2.

Price................................................................................................................................................... 22

10.3.

Place................................................................................................................................................... 22

10.4.

Promotion/Communication........................................................................................................... 22

11.

Action plan & others........................................................................................................................ 23

12.

Wrapup................................................................................................................................................ 25

13.

Reference............................................................................................................................................. 26


3


I.
Ice cream is a famous summertime pleasure among young people. People's lifestyles
have improved, and their need for self-satisfaction has risen dramatically. Ice cream is
now more than just a refreshing refreshment; it's also more delicious, with a wide range
of flavors, and more acceptable for each consumer. Ice cream is currently diverse, with
numerous brands such as Celano, Monte Rosa, and Wall's, which young people accept
and enjoy, so why not try something completely new? Frosty Feather ice cream.
In general, for ice cream, although many people love to eat ice cream, there are
quite a few options on the market that are segmented based on taste and price. Some
individuals prefer high-quality ice cream made with natural ingredients that give a great
taste. In contrast, many others cannot tell the difference in product quality, and hence they
will make a purchasing decision. Products are based solely on the price and availability
of ice cream. Currently, there are countless large and small ice cream shops attacking the
mass market and several separate small segments that match their image on the
Vietnamese market. However, there has never been a so-called "luxury" ice cream brand
that has the experience and resources to satisfy the thirst and taste of consumers.
II.
According to Euromonitor International, ice cream sales are expected to reach VND
3,793 billion in 2020, increasing 6,5% over the previous year. When the preceding years'
growth rates were all in the double digits, this one fell dramatically. To-go ice cream (to
eat on the street) contributed the most, accounting for 70 percent of the total with 2,686
billion VND.
Due to social distancing measures such as closing schools, entertainment venues,
food services, and consumers working from home, the Covid-19 pandemic had a
detrimental impact on-to-go ice cream consumption. In comparison to the previous year,
sales of this ice cream product climbed by only 4.6%.


4


Take-home ice cream (ice cream goods that may be taken at home and enjoyed ondemand, ice cream in the shape of plastic or paper boxes holding ice cream) is consumed,
and the price is lower, resulting in a rise of 11.3% in sales.
According to the survey, customers increasingly need ice cream to help them cope
with worry and tension caused by spending too much time at home with no opportunities
to socialize.
The ice cream market in Vietnam is still dominated by three major corporations:
Kido Group, Unilever Vietnam, and Vinamilk. These three units now have a market share
of 64 percent, up from 58.8% in 2016.
According to Euromonitor International's market research department, Kido Group's
ice cream market share increased from 43.1 percent in 2019 to 43.5 percent in 2020,
while Unilever's market share in Vietnam increased from 10.6% to 11.1 percent.
Vinamilk's concentration dropped from 9.2 percent to 9.1 percent.
1/ Marketing objective
Increase consumption: Due to the complicated development of the Covid-19
epidemic, everyone has to apply directive 16 to stay at home, so the demand for Food is
increased, in addition to Food for daily consumption. As a result, desserts or snacks are
more necessary. Nowadays, everyone is focusing on healthy eating, so it is possible to
access healthy products. Frosty Feather sugar-free ice cream will help limit the amount of
sugar in the body, can be used by all ages, especially those who are losing weight or those
who are concerned about their health.
Increase market penetration: to attract customers' interest in new products such as
Frosty Feather, Frosty Feather will have stores in Trade Centers to make it easier to reach
customers. Besides, we will distribute products to convenience stores such as Circle K,
Family Mart, or supermarkets such as CoopMart and Emart. Then we conduct product
promotion campaigns to approach closer to customers, followed by conducting trials for
customers to try products at supermarkets and applying for more seasonal promotions.
5



Increase use-value: by encouraging consumers to pay higher prices for products that
have new functionality or are positioned in a higher position. Frosty Feather is committed
to ensuring product quality from natural ingredients without chemicals and the best
service before reaching customers. Frosty Feather will apply sales on many different
platforms, from direct sales at counters to online sales through partners such as Shopee
Food, Grab Food, or Gojek in a short time to choose the right product according to their
needs.
Increase consumer loyalty: convincing customers of the irreplaceable strengths of
the product and programs and incentives for loyal customers. Frosty Feather uses
environmentally friendly product packaging materials, which can be recycled or reused
for other purposes. Besides, we still uphold that the health factor of the ice cream does
not use chemical sugar and safe production technology. We apply Membership programs
(discount 5-10% of total bill) or accumulate gifts (10 stamps can be exchanged for one
valuable contribution) at the stores and apply the program buy two get one free small-size
ice cream for convenience stores or supermarkets.
2/ Marketing strategy
Product
Frosty Feather will have many flavors for customers to choose from according to
their preferences. We only use flavors made from fruit, do not contain preservatives or
chemical sugars, ensuring safety for users. Besides, the highlight of Frosty Feather is that
it does not add sugar to the main ingredient of the ice cream.
Our menu will include ice cream flavors suitable for the Vietnamese market made
from natural flavors such as:
 Chocolate
 Coconut
 Orange
6



Additional toppings will include bananas, strawberries, choco chips, almonds,
walnuts, desiccated coconut, oats, and more.
At the stalls in the shopping mall, we will sell ice cream scoops; customers can mix
different types of ice cream to experience a variety of flavors and toppings to enhance the
experience of the client's Frosty Feather.
Regarding product packaging, we only use environmentally friendly materials,
which can be recycled or reused. We divide ice cream products into two main types:
450ml and 900ml boxes. In addition, customers' goods purchased at the store will be
experienced at a more favourable price (71g scoop).
The ingredients in our Frosty Feather ice cream will include:

Nutrition Facts
Calories
Total Fat
Saturated Fat
Trans Fat
Cholesterol
Sodium
Total Carb.
Dietary Fiber
Total Sugars
Incl.Added Sugars
Sugar Alcohol
Protein
Vitamin D
Calcium
Iron
Potassium
* The % Dairy Value (DV) tells you how much a nutrient in a

serving of food contributes to a daily diet 2,000 calories a day is
used for general nutrition advice.
7


In terms of services, we will provide shipping bags to keep the heat for shippers
when delivering through online ordering apps, only delivering within 30 minutes-1 hour,
ensuring the ice cream still retains its quality and is not damaged melt during
transportation.
Price
Frosty Feather ice cream is a new product with natural flavors made from natural
fruit ingredients and does not use chemicals affecting health, so its price will be higher
than regular ice cream. We have to do research prices to get competitive prices that are
not too expensive compared to brands of the same type but still do not suffer losses, and
at the same time ensure a suitable price for customers to use.
Price for each product (maybe change from time to time):
450ml box: 89,000 VND
900ml box: 199,000 VND
71g scoop: 49,000 (can add 2 optional toppings)
Place
Frosty Feather's market will mainly focus on Saigon. If it develops well, we will expand
the market in the surrounding areas later.
We will sell Frosty Feather ice cream boxes in the refrigerators of supermarkets and
convenience stores next to big brands like Merino, Celano, Monte Rosa.
On the commercial side, we will rent stores where customers can see, maybe near
escalators, elevators, increasing customers' curiosity for new brands like Frosty Feather.
Process

8



Customers will see the process from the time we prepare the ice cream, get the ice
cream, decorate, and pack until the finished product is delivered for customers at the
stores. This will increase transparency, allowing customers to feel more secure about
food safety and the quality of Frosty Feather products.
Customers will first order our products through the Shopee Food or GrabFood app
regarding the online ordering process through intermediary apps. Then the shipper will
receive the order and go to our booths at the mall to receive the order. We will confirm
with the customer again to ensure the exact product the customer ordered is correct, or
the customer can change his mind to another ice cream flavor. We will prepare ice cream
and put it in the shipper's thermal bag. If the shipper does not have a thermal bag, we will
provide it to them and guarantee to deliver within 30 minutes-1 hour within a radius of
10km. To best serve customers, we will have electronic payment gateways for customers
to have many choices in payment such as Momo, VNPay or pay by cash collection.
People
To serve the needs of our customers as best as possible, we must train our staff to be
friendly and whom customers can trust.
Employees are recruited quite strictly and are well trained from professional
knowledge and skills to dedicated service. The staff from sales to customer care must
enthusiastically introduce products and make customers understand that their products are
safe, healthy, and safe to use, which can satisfy customers' needs goods in the best
possible way.
Promotion
For customers to know more about Frosty Feather, we will advertise the brand
through TV, magazines or media such as Facebook. We will organize mini-game shows
on weekends and other events, seasonal promotions (Christmas, Valentine's Day), and
health-related programs to attract new customers. In addition, there will be incentives for
9



old and new customers such as member day, customer gratitude, directly hitting products
such as buy 2 get one free promotion, accumulate points for the gift exchange.
Physical Evidence
This is a factor affecting customer satisfaction. Every business wants to bring the
best practical experience to its customers. Therefore, we always want to attract customers'
attention through the booths arranged in the supermarket, and the store in the trade center
from the product layout to the activities at the store must be eye-catching, ensure hygiene
to make customers feel comfortable, and give customers the most enjoyable and safe
product experience possible. Coming to Frosty Feather, customers will experience the
convenience, free wifi, spacious and relaxed space, along with many other utilities that
are hard to compare with anywhere else.
3/ SWOT analysis
Strengths
-

Good product quality, meeting international standards.

-

Products are diverse and rich in flavor.

-

It is a product extracted from natural ingredients, safe for health.

-

revents obesity problems, boosts the immune system, contains vitamins,

and reverses the risk of high blood pressure because the natural amount of calcium

in ice cream can regulate and stabilize blood pressure, so it's good for health.
Service style of professional staff, dedicated and attentive customer care
team.
Weaknesses
-

Because it is a new product to the market, so it has not yet gained trust

from customers, customers will doubt the safety of Frosty Feather ice cream.
-

We currently have traditional flavors and have not created many new

flavors to stimulate customers' tastes.
10


-

Higher cost than regular ice cream products.

-

We have to face big rivals like Vinamilk, Kido.

Opportunities
Accessible to a group of customers who care about their health and
aesthetics.
Market demand increased after the crisis because of the COVID-19
pandemic.

-

Currently, there are few competitors in sugar-free ice cream that compete

with us in Vietnam.
Threats
-

The economy after the COVID-19 recession, all consumers are tightening

their spending.
-

Many products can be substituted in the market; consumers switch to

cheaper products.
Development of new products increases the risk of old products
disappearing.
4/ Target market
a/Customer behavior
Ice cream is a commodity in the consumer product market that is selected by emotion.
The primary audience to buy ice cream are young people and family customers.
However, in the family customer group, children are now the ones who decide which
products to buy, so we can see that the ice cream market's leading target group today is
young people between the ages of 17-27.
When there is a need, consumers will choose products through some ways: personal
experience (liked brands), from groups (friends invite each other to try), from marketing
activities (advertising, marketing from brands. In addition, ice cream is a variety-seeking
item, so any ice cream label that attracts more attention to consumers is accepted. The
primary audience of ice cream is young people:



11


-

Although the personal income is not high, it is entirely provided by the family, or

active young people always have their ways of earning income from part-time work.
- Desire to present themselves as a young and dynamic person.
- As life develops, people are increasingly concerned about their health, so they are
willing to pay for branded products to ensure their health and safety, especially in
the food industry.
=> Young customers now tend to choose ice cream products of famous brands to ensure
food safety and express their style, accept a higher price to satisfy their needs. your needs
then choosing a cheap cream of an unknown, unsafe brand.
b/ Segmentation
Geographics
-

Frosty Feather is interested in the level of economic development,

population and simple accessibility in the Ho Chi Minh City area in market
segmentation.
-

We will focus on densely populated districts, city centers such as District 1,

District 3, Binh Thanh District, approaching customers through commercial

centers, where the population is crowded on weekends or other events, holidays.
Demographic:
In the HCMC market, we will segment the market by age, gender and income of
consumers. Firstly, we can divide age into two categories: young, active people who have
a liberal mind in their way of thinking, the other is older people like working people.
Second, our customers are both male and female. Finally, Frosty Feather divides the
market into different income groups; Customers are divided into those with good income
and lower-income.
Income: The poor, according to researchers' estimates and international
standards
(Source: World Bank), will account for 40% of Vietnam's population (30% in
HCMC), 50% on average (60% in Ho Chi Minh City) and the rich can afford to


12


spend on luxury only 10% or even less out of the 9 million population in HCMC.
In the middle-income segment, 20% of the near-poor people barely meet their
basic needs, 50% have enough for basic needs and save quite a bit, while the
remaining 30% have a small amount of money, good savings for additional needs.
So we will focus mainly on people with average income and above.
-

Age: In the Vietnam market, Frosty Feather's target is 17-25 years old.

Those are the people who are the most responsive to fashion and technology
trends with better knowledge of foreign brands. Unlike other Western countries, in
Vietnam, if the families of those consumers are well off, then they, as descendants,
can also enjoy that wealth by being their parents. They will also spend more time

in cafes and will be more easily persuaded to experiment with flavors.

The age group, 36-45, can also be attractive to Frosty Feather as it is the most
successful and affluent consumer group; they have a mature career and chance to
travel abroad and more free time to enjoy their life.
-

Gender: Frosty Feather's target segment is mainly female consumers and

male consumers
Psychographics
In the psychological segment, the Vietnamese market can also be divided into three
segments based on health-conscious lifestyle:
The first segment is very health-conscious people; 97 people are willing to pay
more or take the time to find products that can support this lifestyle. This segment
currently accounts for a tiny part of the market (less than 15%) but grows very fast.
-

The second segment has a moderate knowledge of what is good for them but is not
too focused on it. Therefore, not willing to pay too much or spend too much time
and effort searching for healthy products. This segment is also overgrowing and
accounts for about 45% of the market.

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-

The last segment either does not have enough knowledge and awareness about


a healthy lifestyle or cannot afford to pursue it; therefore, they do not care about the
health aspect. This segment has a relatively large market share (about 40%) but is
decreasing.
We will target a group of customers who have the habit of caring about their health.
They will know that Frosty Feather contains ingredients that bring safety and health to
their health. In addition, we will reach out to a group of customers who are less
concerned about their health by explaining or giving the factors that Frost Feather brings
to their health.
Behavioural
*Purchasing behavior:
Purchasing behavior can be divided into four main categories :

-

Complex: Customers are heavily involved in the purchasing and decision-

making processes, and there is considerable variation between the brands they
consider. They will compare product ingredients or packaging between multiple
products.

14


-

Variety-seeking: When customers don't pay much attention to the purchase,

they can try using new products compared to the product they are using. If the
new product suits them, they will stick around for a long time with them.
-


Dissonance-reducing: When customers make their purchasing decisions,

however, there is not much difference between similar products. They may make
purchasing decisions based on the price rather than the quality of the product.
-

Habitual: When customers are not heavily involved in a purchase, the

product offered doesn't vary much between brands and is mostly just personal
preference; they will randomly choose a product.
*Occasion or timing
Frosty Feather can also segment the market based on the different times that
consumers may choose to use the product. These different occasions can be called
different festivals celebrated in Vietnam. For example, on Valentine's Day, we
decorate ice cream mainly with pink or chocolate to add romance for couples or 2for-1 programs.
*User status
-

User status is also another way to segment customers by behavior. Standard

forms are as follows:
-

Customers buy once: Maybe they are curious because Frosty Feather is a

new product so that they will buy and try it, then they don't feel like buying
anymore. Or not need to use but still buy for gifts.
-


Prospective customers: We will target the group of customers who have

their own health care needs. Use Facebook Ads to target users with needs,
interests, food and health review groups.
-

First-time customers: Those who have health needs but are confused

between sugar-free products. Therefore, Frosty Feather will have the opportunity
to help them better understand the product's features through consulting and
exchanging information to make sure customers will know the benefits that Frosty
Feather brings.
15


-

Regular customers: Introduce more promotions, additional services that

Frosty Feather has to increase customer trust and loyalty.
-

Rejected customers: For old customers who have left to use our

competitors, we will further improve our products and services to make them
come back to our
brand, for them to know that the problem that caused them to leave has been fixed.
Loyalty
Customer's trust goes hand in hand with purchasing behavior if the product meets
safety criteria and ensures users' health. It's essential to segment by customer loyalty

because these people generate the most revenue, cost less to maintain than acquiring new
customers, and have the highest lifetime value. So you have to maximize their value and
find more customers just like them.
To retain customers, we need to offer many best quality health products to
understand and feel secure when using the products and many promotions to attract
potential customers and new customers.
Differentiation & Positioning
a/ Differentiation
The difference of Frosty Feather products is in premium quality with luxurious textures
and flavors, high end, delicate by using only the freshest and finest ingredients. We
promote the pure authenticity of our products by emphasizing that Frosty Feather will not
contain sugar. Furthermore, unlike other mass-produced brands, Frosty Feather uses no
artificial flavours, colors, emulsifiers or stabilizers; instead, we look for natural
alternatives. However, better can benefit customers.
The primary service differentiation at Frosty Feather is through our mall stores. All
Frosty Feather stores in Ho Chi Minh City are staffed with highly trained staff whose
primary concern is to keep customers comfortable in a cozy space and enjoy their
favorite foods scrumptious ice cream. The staff must always wear perfect uniforms, greet
16


customers, respond to customers' requests and needs to feel like they are being served in
a five-star restaurant. Customers will feel satisfied with themselves even though they
only come to use the product. Staff readiness and attentiveness to customer requests, even
during peak hours, can significantly enhance Frosty Feather's image of providing highquality service. However, Frosty Feather's service should not go to the point of being so
fussy that customers lose their friendly side. "Serving with a smile" has always been a
great way to create and maintain a good impression on customers visiting Frosty Feather
stores. The moment a customer enters the store, Frosty Feather's staff must greet them
with a smile. Customers will feel appreciated and automatically smile in return, creating a
positive atmosphere and attitude between the customer and the brand.

Frosty Feather realized early on that superior, and consistent quality ensured positive
word of mouth and helped build a brand. Therefore, Frosty Feather always focuses on
each stage to bring the best experience and meet customers' needs.
b/ Positioning
Ice cream is a new market, but the competition is very fierce because although the
number of brands in the market is small, most of them already have a clear market share,
most of the ice cream market belongs to the famous "giants". With the highest market
share, there are still only a few names such as Kido's (with small brands such as Celano,
Merino, Kido's Premium), Vinamilk, Wall's, Monterosa with significant investment, wide
distribution, and great taste. Delicious and has a methodical marketing strategy.
According to the results of a nationwide consumer survey on high-quality
Vietnamese goods 2020 organized by Saigon Newspaper, the Vietnamese ice cream
market share is divided as follows: Kido's holds 45.8% market share, Vinamilk accounts
for 20, 8% and other labels about 20.8%. In the mid-and high-end segments, Kido's
accounts for about 60% of the market share. Currently, segmenting the ice cream market
with big names is quite straightforward, with its advantages. Vinamilk has the advantage
in boxed ice cream and take-home ice cream, Monterosa has the advantage in the high-

17


end ice cream group sold in the store system, and Kido's with two brands Merino and
Kido's Premium has the leading position in the Vietnam ice cream market segment.

Competitors

Kido’s

Wall’s


Baskin-Robbins


18


Brand

Factors

Cheap price

Delicious
taste

Eyecatching

High-end
brand

Brand trust

Convenient


19


Food safety


Expressing
style
Frosty Feather's positioning strategy in the Ho Chi Minh City market is "More for The
Same," which means we position ourselves as a high-quality ice cream brand that charges
customers the same price as the market's other competitors while providing a good
product experience, quality, and health assurance. The reason behind Frosty Feather's
ability to provide customers with the superior products and services they experienced at
the ice cream parlour is that Frosty Feather promotes its commitment to the best quality
and delivers prestige, a symbol of status and a noble lifestyle for buyers..

20


High Quality

Fanchises
(BUD’s,
Swensen’s,MOF,
Baskin-Robbins)
Local

Low Price

Local Brands
(Kinh Do,
Vinamilk,
Wall’s)

Local
Coffee

houses
Mediu
msized
shops
(Pinky,
Goody
)

Low Quality

Biểu đồ trên cho thấy Frosty Feather nên định vị như thế nào so với các đối thủ
cạnh tranh trên thị trường, chẳng hạn như các điểm bán kem địa phương như
Kinh Đô, Wall’s và Vinamilk, cũng như các cửa hàng kem địa phương khác
hoặc các thương hiệu nhượng quyền, đã được phân tích trong phần phân tích
tình hình hiện tại. Để truyền tải chiến lược vị trí này đến khách hàng, Frosty
Feather cần có khả năng duy trì các sản phẩm chất lượng cao, thuê và đào tạo
nhân viên để thực hiện dịch vụ tốt hơn các gian hàng và phát triển các thông