TRUONG DAI HOC MO HO CHI MINH UNIVERSITEÙ LIBRE DE BRUXELLES
HO CHI MINH CITY OPEN UNIVERSITY SOLVAY BRUSSELS SCHOOL
ECONOMICS & MANAGEMENT

MMA7


NGUYEN DUC TAI – NGUYEN THI THANH TAM



BRAND BUILDING STRATEGY FOR COSY SWEET CRACKER -
KINH DO FOOD CORPORATION






MASTER PROJECT
MASTER IN MARKETING & ADVERTISING

ACKNOWLEDGEMENTS

First of all, we would like to express our greatest gratitude to Prof. Marianne Claes
for her first guideline of the structure of this project.

And then, we also give special note of Thanks to Mr. Minh Nhut for his guidance on
this paper.

We are indebted to Marketing Department of Kinh Do Corporation for their valued
strong support and continued encouragement as well as the courtesy of facts and
figures presented in this project.

We would like to take this opportunity to send our special thanks to all professors
and staffs of Solvay Vietnam-Belgium and Open University, our families & friends,
who have brought us invaluable support throughout.








COMMITMENTS

We, Nguyen Duc Tai and Nguyen Thi Thanh Tam commit that we have written this
project by ourselves based on the information collected from Kinh Do Corporation
and electronic sources.

This project is designed only for the academic purpose of the completion of our
Master in Marketing and Advertising Management. We agree that it freely
available for reference and study. It is unexpected for copying and publication or
any other uses.


























TABLE OF CONTENTS

I. Introduction 1
1. Vietnam Food industry 1
1.1 Vietnam’s economy effect to food industry 1
1.2 The development of Vietnam confectionery industry 2-3
2. Kinh Do Food Corporation 3
2.1 History 3
2.2 Vision-Mission-Value 3-4
2.3 Kinh Do product portfolio 4
2.4 Kinh Do’s revenue Structure 5
2.5 Category-Sweet cracker analysis 6-8
2.6 Kinh Do biscuit category introduction 9-10
3. Cosy brand introduction and portfolio 11-12
II. Current analysis 12
1. 3C business model analysis 12
1.1 Consumer 12
1.1.1 Customer Segmentation 13
1.1.2 Target customers 14-15
1.2 Competitor 15
1.2.1 Price strategy 15-16

1.2.2 Distributions 16
1.2.3 Communication 16-18
1.3 Corporation (Cosy-KIDO) 18
1.3.1 Cosy brand strategy 18-22
1.3.2 Market share 22-23
1.3.3 Brand Awareness 23-24
2. SWOT 25
III. Solution 26
1. Objectives 26
2. Solutions 26
2.1 Competition-based branding strategy 26
2.2 Brand management strategy 27
2.3 New consistent Story concept 27
2.4 Using brand conversion pyramid to increases sales 27-28
2.5 Consumers touch points selection 28






IV. Recommendation 28
1. Competition-based branding strategy 28-29
2. Brand management strategy 29
3. Create new key message and concept 29-31
4. Consumer touch point selection 32
5. Product display 32
6. Integrated Marketing Communication Strategy 2014 32
7. Marketing Plan of Cosy Brand for 2014 33
8. Conclusion and Evaluation 34-35

V. References 36-37
VI. Appendixes 38-43



























EXCUTIVE SUMMARY


Growth of young middle and upper class population makes Vietnam an appealing
proposition among Asian Pacific economies. Specifically, the Vietnamese food
market is growing rapidly and attracting significant market entrance in recent
years, thus the competition between domestic and foreign brands is getting more
intense. And Kinh Do Corporation, one of the biggest food corporations, has also
faced with that intense competition from foreign brands. With a very wide range
of product category portfolio, Kinh Do has given a restructuring of brands strategy.
Their objective is to maximize profit with minimizing investigation in branding and
marketing. And cracker category with Cosy brand is a pioneer in brand
restructuring. Cosy portfolio includes: Cosy Marie (the group leading product),
stick wafer, cube wafer, seasame biscuit, mini butter biscuit, cream sandwich
biscuit.

With a steady growth in consumption of biscuit category in Vietnam up to year
2017, there is a potential market for Cosy to increase the Sales revenue as well as
market share of Biscuit Category in the market. Currently, there are four big
brands in biscuit market that includes: Cosy (KIDO), Oreo (Kraft Food), Goute
(Orion), Cream O (Jack and Jill).

Not only because of the optimal investment goal in marketing and branding
activities for Cosy, but also due to brand awareness of all Cosy products is not high
and product communication style is not consistent from the launch of Cosy
portfolio.

During the study of Cosy marketing plan, we have found out some areas of
improvement and would like to recommend bolding brand awareness, expanding
market share and market size of Cosy umbrella by creating new communication
concepts with the purpose to meet the customer demand for biscuit products.












LIST OF ABBREVIATIONS

GDP Gross Domestic Product
GSO General Statistics Officer
BMI Business Monitor International
MOIT Ministry of Industry and Trade
KDC Kinh Do Corporation
ATL Above The Line
BTL Below The Line
WTO World Trade Organization
HCM Ho Chi Minh City
HN Ha Noi City
R&D Research and Develop
MOST Ministry of Science and Technology
MOH Ministry of Health











FIGURES

FIGURE 1: Annual growth rate of Vietnam’s Gross Domestic Product

FIGURE 2: Vietnam GDP per Capital

FIGURE 3: Food consumption forecast in Vietnam 2010 -2017

FIGURE 4: Confectionery sales forecast from 2010 to 2017

FIGURE 5: Logo of Kinh Do Corporation

FIGURE 6: KINH DO product portfolio

FIGURE 7: The Sales Revenue divided by category of Kinh Do in 2012

FIGURE 8: The Value Share of food industry in 2011

FIGURE 9: The value share of Biscuit Category in 2011

FIGURE 10: The sales value of sweet cracker from 2006 to 2008

FIGURE 11: The value share of Sweet cracker in market 2012

FIGURE 12: The Value share of Sweet Cracker In key cities in 2012


FIGURE 13: KIDO’s biscuit category portfolio

FIGURE 14: KIDO’s all biscuit brands positioning map

FIGURE 15: Research number of people loyalty with biscuit product

FIGURE 16: the decreasing of market share of KIDO’s biscuit compare with
competitors

FIGURE 17: Research number of people aware Cosy product compare with
competitors.

FIGURE 18: The percentage of people aware Cosy product by TVC advertising
compare with competitors







FIGURE 19: 3C’s model

FIGURE 20: Customer-Based Brand Equity model

FIGURE 21: Print Advertising for new concept of Cosy









TABLES

TABLE 1: KIDO’s all biscuit brand segmentation

TABLE 2: The Cosy product segmentation follows the age group

TABLE 3: The Emotional Age Group with Cosy Group Product

TABLE 4: The Competitors with Cosy product Group of Kinh Do

TABLE 5: The Advertising way of KIDO’s and Competitors

TABLE 6: The Brand Proposition formula for Cosy Group Product

TABLE 7: Swot analysis of Cosy Product of KIDO’s

TABLE 8: Cosy brand management



















1





I. INTRODUCTION
1. Vietnam food industry
1.1 Vietnam’s Economy effect to Food industry
The Gross Domestic Product (GDP) of Vietnam increases stable from 2007 up to
now. This is an advantage for all industries Vietnam and especially in Food
industry.



FIGURE 1: Annual growth rate of Vietnam’s Gross Domestic Product
(Source: General Statistics Officer 2013)

In addition, The GDP per capital has also increased quickly yearly from 1985 up to
2012 and forecast 2013 so that the purchase power of people also increases.




FIGURE 2: Vietnam GDP per Capital
2





(Source: General Statistics Officer 2013)

1.2 The Development of Vietnam Confectionery Industry

In line with the country’s development, the food consumption is forecasted would
increase stable from 2010 up to 2017 (Business Monitor International (BMI)
research)


FIGURE 3: Food consumption forecast in Vietnam 2010 -2017 (BMI)

In particular, the confectionery sales also increase from 8 to 10 % from 2010 to
2017 (BMI research).
3








FIGURE 4: Confectionery sales forecast from 2010 to 2017 (BMI)

Vietnam Ministry of Industry and Trade (MOIT) realizes that confectionery industry
would be the strongest development industry in Vietnam up to 2020.


2. Kinh Do Food Corporation (KIDO)

2.1 History
KIDO was established in year 1993. Back to its first days, there were only 70
employees; currently, it has up to 7,741 employees in total. KIDO is by far top-of-
mind company in Vietnam food industry. KIDO takes pride in its wide variety of
product lines, strong distribution channels and dynamic teams in marketing and
sales.
Until now, KIDO has developed into a system of companies in the food industry
including confectionary, soft drink, ice cream and dairy products.

KIDO has been continuously investing in technology, merge and acquisition, joint-
venture activities and cooperation such as buying Wall ice-cream brand from
Unilever, buying Tribeco, Vinabico and investing in Nutifood, Eximbank, etc.

In 2010, KIDO merged North Kinh Do Corporation to enlarge Kinh Do’s coverage in
4





food industry and develop into a strongest food corporation not only in Vietnam

but also in South East Asia.


FIGURE 5: Logo of Kinh Do Corporation (KDC annual report, 2012)

2.2 Vision – Mission – Value
Mission: “Flavor of life”, Kinh Do commits to bringing happiness flavor to
everyone with safe, nutritious, original and convenient food products.

Vision: Become the largest food corporation in Vietnam and aims to be a
conglomerate in food industry, real estate, finance and retail business. Food
processing is the cornerstone for its development.

Value: Kinh Do always innovates to bring consumers to experience new flavors
as well as the unique value of each product with the highest commitment to
quality and food safety.

2.3 Kinh Do Product portfolio
Currently, KIDO’s food product portfolio includes 9 categories illustrated as
picture below:

5







FIGURE 6: KINH DO product portfolio


2.4 Kinh Do’s revenue structure















FIGURE 7: The Sales Revenue divided by category of Kinh Do in 2012
(Source: www.cafebiz.vn)
6





With contribution of 21% in Kido’s total revenue, the cracker biscuit category is the
most important part of KIDO food segment.

2.5 Category – sweet cracker analysis


FIGURE 8: The Value Share of food industry in 2011

Total Biscuits, Pie & Snacks value share is 20% of Food Industry and the value share
of Biscuit & Pie has increased 28% compared to 2010. And the biscuit market
divides to the biggest 38.1% of sweet biscuit, 27.7% of butter biscuit, 14.2% of
salt/plain, 13.8% of wafer and 6.2% of other. So that sweet cracker is the total
percentage of sweet biscuit, butter biscuit and wafer, that is nearly 80% of total
biscuit market in 2012. It becomes the biggest pie of biscuit market.


7







FIGURE 9 The value share of Biscuit Category in 2011

Sweet cracker sales value
(Unit: million Dong)
0
2,000
4,000
6,000
8,000
10,000
12,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Year 2006 Year 2007 Year 2008

FIGURE 10: The sales value of sweet cracker from 2006 to 2008


The sweet cracker sales value increases steady by recently years. The market size
of sweet cracker was nearly 80% in 2011 and increased to 86% of total biscuit
market in 2012.
8









FIGURE 11:The value share of Sweet cracker in market 2012



FIGURE 12: The Value share of Sweet Cracker In key cities in 2012

There is three key areas is driving market growth which are Ho Chi Minh City with
24.2%, Ha Noi City with 29% and super market channel with 28%.

9






2.6 Kinh Do biscuit category introduction

FIGURE 13: KIDO’s biscuit category portfolio

Biscuit Brand management, by comparing all brand positioning maps for all biscuit
of Kinh Do brands in the markets in:


10






FIGURE 14: KIDO’s all biscuit brands positioning map

STP/Brand
Cosy group
AFC
Korento
Segmenting
Family & group
Personal & group
Personal use
Favorite flavor
Sweeten

Salt/Plain
Sweeten
Main needs
Snacking time,
gathering time.
Feed sudden
hungry
Offer guest, gifting
Message
Sharing good
mood
Healthy
Indulgent
TABLE 1: KIDO’s all biscuit brand segmentation


3. Cosy brand introduction and portfolio
In 2000, KIDO’s sweet biscuit with name Kinh Do Marie was launched in
Vietnam market. Through that decade, other kinds of butter biscuits, cream
sandwich, wafer and crackers also were introduced to the market with
different names such as: Finery, Story, Good Choice, Rostery, etc. In that
decade, KIDO focused on developing stable nationwide distribution network.
In biscuit history, Marie biscuit is a type of round sweet biscuit and usually has
its name embossed upon its top surface, the edges of the biscuits are also
embossed with an intricate design. From 2009, Kinh Do decided to give a name
for Marie sweet biscuit, which became COSY Marie.

To 2012, KIDO has decided to restructure product portfolio by choosing COSY
becomes a master brand of sweet cracker category with the leader product is
COSY Marie. KIDO renamed butter biscuits, cream sandwich and crackers to

under COSY master brand name, which become COSY Marie Biscuits, COSY
Cream Sandwich Biscuits, COSY Coconut Butter Biscuits, COSY Mini Biscuits,
COSY Wafer Rolls, COSY Wafer Sandwich. And COSY Seasame joins Cosy family
in the end of 2012.






 2009: Marie biscuit
as sub-brand under
Cosy brand
11







COSY portfolio:


 COSY Marie Biscuits are crispy and mildly sweet, now with twice the milk
content.
 COSY Cream Sandwich Biscuits come with creamy fillings and many flavors
to choose from such as strawberry, chocolate and vanilla.
 COSY Coconut Butter Biscuits uniquely blend the rich flavor of coconut in
each crunchy bite, making them an irresistible snack.

 COSY Mini Biscuits come in small bites but big in tastes, a great choice for
the young and dynamic.
 COSY Wafer Rolls with tiramisu, orange, chocolate, and strawberry fillings
are ideal for sharing with family and gifting.
 COSY Wafer Sandwich is distinct in its flavors and texture. The crunchy
wafers combine wonderfully with 2 layers of creamy fillings bringing about
unique and harmonious taste.

 It can be seen that cracker category is 21% revenue of KIDO. It is the biggest
contributed revenue for KIDO. Futhermore, the percentage of value share
and volume share of cracker biscuit category increases hightly in many
recently years.
12





 In recently difficult economic years, 2012 KIDO’s strategy with the purpose
is saving cost for building brand and marketing for many separate small
brand of different product. KIDO decided to collect sweet cracker brands
put under Cosy master brand and Cosy Marie is the leading product for the
group. So that KIDO just needs to invest to build a group of product under
Cosy brand at same time, then all sub-brand products get benefits.

II. CURRENT ANALYSIS
1. 3C business model analysis
1.1 Consummer
People usually use sweet biscuit in snacking time with family and friend (83%),
relaxing (70%) or snack for sudden hungry (60%) and gifts (30%). More over, sweet

biscuits have positive emotional value while using in bored, tired, listening music
time (30%).

This is a chance to develop product to meet customer demands (snack, eat for fun,
gift) of users and also a chance to push strong communication with message
”Share”.


(Source:U&A research 2011-2012)


Research in figure below was for Cosy Marie. Consumer’s loyalty of Cosy Marie
was low in comparation with Oreo and Goute in line with the biscuit category. In
addition, 49% consumer will buy different biscuit product if Cosy products is not
available in retail shop.

13







FIGURE 15: Research number of people loyalty with biscuit product
(Source: U&A Research 2011-2012)

 Cosy Seasame incharges to compete and has chance for gaining share from
Goute, which has highest number of loyalty consumers.



1.1.1 Consumer segmentation

COSY family products could serve all age of people from 7 – 80 years old who like
sweet cracker.


TABLE 2 :The Cosy product segmentation follows the age group
14





1.1.2 Target customers

TABLE 3: The Emotional Age Group with Cosy Group Product
With the segmentation is for all people who like sweet cracker. However Cosy’s
targeting customer focus to 3 groups of ages, these are married women, young
women and teen & kids, who directly make decision and drive decision when
buying.

Group 1: Married women
- Age: 25 – 45
- Office or housewife
- Family oriented: take care meals for whole family and high caring to each
member in family
- Live in 2-4 generations family
- Class A, B, C
Group 2: Young women

- Age: 18 – 25
- Student or office
- Focus on study or work, usually need to have snack when working
- Usually go to supermarker and choose products by themselves
- Class A, B, C
Group 3: Teen & Kids
- Age: 7 – 17
- Love to go to supermarket with mom
- Love sweet cracker
15





- Love television
Those are 3 groups of target customer that Cosy needs to communicate with.

1.2 Competitor
There are some main competitors with Cosy product group.

No
Company
Brand
Category
Direct competitor with
1
Kraft Food
Oreo
Cream

sandwich
Cosy Rostery& Cosy
Cream Sandwich
2
Jack&Jill
Cream O
3
Orion
Goute
Seasame
Cosy Seasame
4
Jack&Jill
Marie
Sweet Cracker
Cosy Marie & Cosy Mini
Table 4: The Competitors with Cosy product Group of Kinh Do

1.2.1 Price strategy
For the price segment, Cosy has the price less than Oreo 10-15%, less than Goute
30-40% and equivalent price with Marie because Cosy position the price for middle
class.

(Source: AC Nielsen Retail Audit data Aug 2012)