MINISTRY OF FINANCE
UNIVERSITY OF FINANCE – MARKETING

Lê Thị Kim Thoa
Võ Phan Cẩm Tú
Nguyễn Xuân Quỳnh Nga

1921006832
1921005746
1921000934

MARKETING PLAN FOR PEDIA PLUS
PRODUCT OF NUTIFOOD NUTRITION FOOD
JOINT STOCK COMPANY TO PENETRATE THE US
MARKET IN THE PERIOD OF 2022 - 2023

Speciallzation: MARKETING
Majors: MARKETING ADMINISTRATION

MINISTRY OF FINANCE

Ho Chi Minh City, 2021


UNIVERSITY OF FINANCE – MARKETING

MARKETING PLAN FOR PEDIA PLUS
PRODUCT OF NUTIFOOD NUTRITION FOOD
JOINT STOCK COMPANY TO PENETRATE THE US
MARKET IN THE PERIOD OF 2022 - 2023

Speciallzation: MARKETING
Majors: MARKETING ADMINISTRATION

Students perform:

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Lê Thị Kim Thoa
Võ Phan Cẩm Tú
Nguyễn Xuân Quỳnh Nga


TABLE OF CONTENTS

TABLE LIST

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PICTURE LIST

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CHAPTER 1: OVERVIEW OF NUTIFOOD FOOD JOINT STOCK
COMPANY AND PEDIA PLUS PRODUCTS
1.1. Overview of Nutifood Nutrition Food Joint Stock Company
1.1.1. Information about Nutifood Nutrition Food Joint Stock Company
Company name: CÔNG TY CP THỰC PHẨM DINH DƯỠNG NUTIFOOD
International name: NUTI FOOD JSC

Tax code: 0301951270
Tax address: 281-283 Hoang Dieu, Ward 06, District 4, Ho Chi Minh City
Legal representative: Tran Thi Le
Website: www.nutifood.com.vn
Date Range: 12/04/2000

Figure 1.1. Logo Nutifood
Nguồn: Nutifood
1.1.2. History of formation and development
1989: The Medicinal Plant Research Station was transformed into the Nutrition Center
of Ho Chi Minh City, the Dong Tam Complex became the Dong Tam Food Base, where the
research topics of nutritionists were applied to produce products. products to prevent
malnutrition in children and feed the sick in the hospital. The typical product of this period is
Enalaz - the first nasogastric tube feeding food in Vietnam, contributing to the treatment of
critically ill patients at hospitals across the country with the cost only 1/10 of the product.
imported products.
March 29, 2000: Derived from the success of the research and clinical applications of
the Nutrition Center of Ho Chi Minh City. In Ho Chi Minh City, Dong Tam Nutrition Food
Joint Stock Company (original name of NutiFood) was established.
In 2020, the expanded NutiFood Binh Duong Factory (milk powder + liquid milk) was
certified to meet food GMP standards, HACCP standards and continuously for the following
years.
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In 2008, NutiFood became a public joint stock company and had a successful IPO on
the stock market.
In 2010, signed a cooperation agreement with ABS-QE Organization of the United
States to build and monitor the Quality Management System and continuously renew it until
now.

2015: Started construction of NutiFood Vietnam Factory in Kien Khe Industrial Cluster,
Ha Nam with a processing capacity of 200 million liters of fresh milk and 31,000 tons of
powdered milk, the largest factory in the North.
1.1.3. Organizational structure
Administrative
Council

CEO

Vice president

Vice president

Vice president

Vice president

Finance

HR

Marketing

Sale

Figure 1.2. Organization chart of the operation apparatus of Nutifood
Source: Nutifood
Nutifood Nutrition Food Joint Stock Company is organized according to the functional
online chart. The highest is the board of directors, then the director, below the director are the
deputy directors in charge of functional departments such as finance, human resources,

marketing, and sales.
1.1.4. Duties and functions of departments
1.1.4.1. Administrative Council
Duties: To be the ones who decide on company management issues
Function:
- Decide on issues related to share prices and issued bonds.
- Solutions to develop medium and short-term activities of the company such as: annual
development strategy, market expansion, marketing activities, technology innovation.
- To decide on investment plans and investment projects within its competence.

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- Decide the establishment of subsidiaries, branches or the acquisition of shares of other
enterprises.
1.1.4.2. CEO
Duties: General Director is the manager and supervisor of all business activities, people
as well as cooperative activities of the Company.
Function:
- Decide on business activities
- Strategic advisor to the president
- Building and managing the enterprise structure
- Build and maintain collaborative relationships
1.1.4.3. Vice president Finance
Duties: Leading the management of financial affairs in the Company.
Function:
- Conduct financial analysis to identify the strengths and weaknesses of the business.
- Planning the financial strategy of the business.
- Evaluating the operation programs of the Enterprise in terms of finance.
- Prepare budget contingency plans in appropriate forms to meet unexpected budget

needs.
- Set up the capital structure of the Enterprise.
- Maintain the liquidity of the Enterprise and ensure sufficient financial resources for the
Enterprise.
- Develop a reasonable profit sharing policy.
- Ensure that the assets of the Enterprise are controlled and used in a reasonable and
profitable way.
- Establish and implement the cash management policy of the Enterprise to ensure there
is enough cash to meet short-term payment needs.
- In charge of managing and directing the activities of Chief Accountant, Accounting
Department, Finance Department, Import-Export Department and auditors, treasury... on the
basis of preserving and developing the Company's capital. commitment time
1.1.4.4. Vice president HR
Duties: Responsible for investor and public relations, coordinating with stakeholders to
organize events, directly meeting with customers, partners, the media, building external
relationships efficiency, improve the image and scope of business activities, be responsible for
human resource management
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Function:
- Coordinate the construction, management and orientation of the company's PR
activities, deploy and monitor the brand promotion strategy through communication channels,
and promote the company's image.
- Building relationships with agencies and departments for the purpose of enhancing the
image and brand of the business.
- Develop and manage the company's human resource plans and processes.
- Planning, organizing and controlling the activities of the Human Resources
department.
- Contribute to the development of HR department goals and systems

1.1.4.5. Vice president marketing
Duties: Responsible for all marketing activities of the Company, performing brand
management, marketing communication (including advertising, promotion, public relations),
market research, management product management, channel management, pricing, and
customer service.
Function:
- Lead and supervise marketing activities
- Make a Marketing Strategy
- Branding
- Ecommerce
- Promotion
- Market and user analysis
1.1.4.6. Vice president Sale
Duties: Manage and run the activities of the International Sales Department to
implement business strategies and goals
Function:
- Develop strategic goals for business activities in foreign markets;
- Building the human resource structure for the international sales department, in order
to achieve the set business goals.
- Develop policies to promote sales.
- Organizing the implementation of the sales plan and assigning targets to the staff;
- Urging, monitoring and evaluating business activities to provide timely solutions.
- Care and maintain relationship with old customers. Find new customers, expand the
market.
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- Negotiating and signing contracts with customers.
- Manage and track orders, coordinate with relevant departments, promptly solve
problems to ensure on-time delivery.

- Collect and evaluate feedback from customers, competitor information.
- Resolve customer complaints within the permitted scope.
1.1.5. Recent business results
Nutifood's latest business results are shown below:
Table 1.1. Nutifood's business results in the last 3 years
Unit: Billion VND
Targets
2018
2019
2020
Net Revenue
7.734
8.944
8.440
Revenues
1.045
894
765
Total assets
5.149
5.408
6.255
Equity
2.067
1.742
1.904
Source: Financial report of Nutifood Nutrition Food Joint Stock Company

Figure 1.3. Some financial indicators of Nutifood
Source: Financial report of Nutifood Nutrition Food Joint Stock Company

From the financial statements of the most recent years, it is shown that, in the period
from 2018 to 2020, NutiFood's business results have slightly decreased, but are still very
impressive. In 2018, NutiFood's net revenue reached VND 7,743 billion, net profit was VND
1,045 billion, equivalent to a profit margin of 13.5%.
In 2019, NutiFood's net revenue reached VND 8,440 billion, down 5.6% compared to
the previous year; net profit at 765 billion dong, while in 2019 profit was 894 billion dong.
As of December 31, 2020, NutiFood's total assets reached VND 6,255 billion, equity at
VND 1,904 billion, up 15.6% and 9% respectively compared to the beginning of the year.
1.2. Pedia Plus product overview
Pedia Plus is a specially formulated product for FOOD children over 1 year old, with a
delicious taste to help stimulate appetite in children. Nutritional deficiencies in order for the
baby to catch up with the growth momentum.
Pedia Plus includes:
- 110ml box
- 180ml box
- 237ml bottle
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Figure 1.4. Pedia Plus products in the US market
Source: Nutifood
PediaPlus has a special formula to help improve anorexia, support digestive health and
resistance for children after 8 weeks of use. Clinically tested results on thousands of
Vietnamese children and FDA certification for standards, production processes and factory
systems not only prove the research and production capacity comparable to advanced
countries of Vietnam. Vietnamese enterprises, but also shows the enthusiasm of NutiFood
experts in accompanying Vietnamese consumers.
Pedia Plus ready-to-drink milk powder is a premium product line exported to the US.
And now, Pedia Plus ready-to-drink milk powder is officially available in Vietnam. Products
to support children's appetite, supplemented with DHA to help develop brains and help

enhance eyesight. At the same time, Pedia Plus provides essential nutrients, supporting the
healthy development of the digestive system.

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CHAPTER 2: ANALYSIS OF THE US MARKET
2.1. Overview of the US market
2.1.1. Foreign relations between the US and Vietnam
The relationship between Vietnam and the US is progressing positively, in terms of
cooperation and development in both breadth and depth, bringing many practical results,
meeting the interests and aspirations of the two peoples.
Vietnam's image in international public opinion in general and in the United States in
particular has been increasingly improved, especially since Vietnam became an official
member of the World Trade Organization (WTO), which successful 14th APEC Economic
Leaders' Meeting.

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The United States is the leading industrialized country in the world. Gross domestic
product (GDP) in 2020 will reach nearly 13 trillion USD, accounting for about 31% of global
GDP. Import and export turnover of the United States accounts for about 25% of GDP, the
largest in the world. In 2020, it is estimated that the United States exports worth more than a
trillion dollars, imports worth 1.8 trillion dollars. The GDP growth rate of the United States
has increased continuously in recent years, reaching 3.5% in 2020, a fourfold increase from
0.8% in 2001. However, the trade deficit has always remained high in recent years. past two
decades.
Since Vietnam and the United States officially established diplomatic relations on July
12, 1995, the relationship between the two countries has been increasingly strengthened and

developed. The two sides exchanged many high-level delegations, especially Prime Minister
Phan Van Khai's official visit to the United States in June 2005 and President G. Bush's
official visit to Vietnam on the occasion of the Summit. APEC 14 held in Hanoi, November
2020. Two joint statements between the senior leaders of Vietnam and the United States
affirmed that the two countries work together to develop a multifaceted and friendly
partnership on the basis of equality, mutual respect and mutual benefits.
Economic - trade relations have made impressive development steps. The two sides
have signed a number of agreements and cooperation agreements, the most important of
which is the Agreement to conclude bilateral negotiations between Vietnam and the United
States on Vietnam's accession to the WTO on May 31, 2020; The US Congress passed the
Permanent Normal Trade Relations (PNTR) status with Vietnam and President G. Bush
signed and promulgated this law on December 29, 2020.
Trade relations between the two countries have increased rapidly in recent years, with
two-way trade turnover in 2020 reaching 9.7 billion USD. The United States is Vietnam's
largest export market. US investment in Vietnam by April 2007 reached more than 2.3 billion
USD.
Currently, more than a thousand US businesses are investing and operating in Vietnam,
including the world's largest multinational corporations, such as Intel, Microsoft... Vietnam US cooperation also has significant progress in the fields of science - technology, culture,
education - training, health care, labor, solving humanitarian problems left by war, security,
military, combating terrorism.
These are important conditions that show that the US is completely a large and potential
market that is being exploited and taken advantage of by Vietnam.

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2.1.2. Import turnover
First of all, we can take a look at some features of the economic strength of the United
States.
Fifty years ago, six of the seven most industrialized countries in the world (the countries

known today as the G7) had a gross national product value of only 75 percent of that seventh
country's value. is the United States. At that time, the United States often used military power
to invade foreign markets, so at that time the American empire had the proverb "Trade follows
the flag" At that time, it can be said that The economic power of the United States is
overwhelming compared to other countries: the GNP of the United States is 12 times higher
than that of Japan, 8 times higher than that of Germany.
50 years later, Western Europe and Japan have risen, in 1995, compared to the GDP of
the United States, Japan was 70%, Germany was 33%. Thus, the leading position of the US
economy has decreased relative to the general development of the whole world.
However, the US still retains its position as the world's number one power in economy,
science, technology and military, and is also one of the three largest international economic
and financial centers in the world. gender. The current GDP of the United States is over 14
trillion USD (Vietnam's GDP in 2020 is about 1,144 trillion VND, equivalent to 71.4 billion
USD).
In terms of imports alone, the US also has the largest turnover in the world. The share of
US imports is usually 13.5 to 17% of the total import value of the world. The US is also a
very large importer. For example, in 2020, the US imported 2.2 trillion USD (the trade deficit
was over 725.8 billion USD).
Figure 2.5. Chart of countries importing to the US market 2020
Source: World Economic Review 2020
2.2. Factors affecting the market penetration strategy of Pedia Plus in the US market
2.2.1. Product sourcing
Raw material supplier: As a leading dairy company in Vietnam, Nutifood has many
advantages in purchasing raw milk. The company has two forms of purchasing, namely
purchasing from private enterprises and traders and purchasing directly from farmers. With
the first form, when currently private businesses or purchasing agents face many difficulties,
many agents default, directly affecting the supply that is not sufficient in both quantity and
quality. Therefore, Nutifood restricts the use of this supply. Instead, the company has found a
new direction for input materials. It is the direct investment and management of farmers' dairy
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farms, turning dairy farms into a part of the business, thereby helping the company to be more
active in the source of raw materials in the US.
Science and technology supplier: Nutifood orders the world's leading companies from
Italy and Germany such as FEA, NUSHAU NEOTEC to design their own technology,
Nutifood ensures to retain the most quintessential taste of fresh milk in each product. that no
other brand in the world has. Typically, the world's largest and most modern RFB 350 cow's
milk production technology system with a closed process, all parameters of temperature,
time... processing are controlled and managed directly from a central control center in
Germany.
2.2.2. Competition
America is the world's largest milk consumer, whether at home, school, work or public
place, and anywhere, anytime, people can smell the characteristic aroma of milk. Therefore,
the US is an ideal market for many dairy companies to penetrate, but a difficult market,
quality over quantity, dairy companies also need to consider their competitive advantages.
That proves that, when participating in this market, Nutifood had to meet many formidable
opponents. Speaking of Nutifood's main competitors in the US market, we must mention
global dairy brands such as:
Fonterra Dairy Group (New Zealand): Fonterra is the leading instant milk brand in
the world with a history of 70 years. Fonterra is the global brand that Fonterra has
successfully built over the years and has become the world's leading food brand. In particular,
the 3-in-1 instant milk product has been at the forefront of new innovative products.
Food Empire Holadings: Food Empire Holdings (FES) is the world's leading
manufacturer of beverage, dairy, confectionery and convenience food products. FES is a
pioneer group that successfully researches nutritious milk. Currently, this nutritious milk is
rated as one of the most popular daily drinks in the world. In particular, MacCoffee milk - the
main brand of the Group - has been ranked as the leading dairy brand in Russia, Ukraine and
Kazakhstan for many consecutive years..
Besides these direct competitors, Nutifood also faces many difficulties when competing

with potential competitors. Typically McDonalds and Burger King.
McDonalds is a group of fast food restaurant chains with about 31,000 restaurants in
119 countries.cIn the US, McDonalds is trying to increase sales by launching many new
dishes, including dairy products. . Not only serving traditional dishes such as Hamburger or

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chicken, McDonalds also opened a chain of McCafe stores specializing in serving latte and
milk drinks.
Burger King, founded in 1954, is the world's second largest fast-food chain with 13,000
stores in nearly 100 countries and serves an average of 11 million customers every day. Also
with the desire to increase its revenue, Burger King has pushed hard into the dairy market. In
August 2014, the "giant" serving fast food announced plans to merge dairy and bakery chain
Tim Hortons with a budget of nearly 11 billion USD.
In the US market, Nutifood milk also faces competition from competitors that have
substitutes for dairy products. The most prominent product is instant tea (RTD).
Consumer tastes towards healthy beverage products continue to increase demand for
RTD tea. Consumers consider RTD tea to be a healthier product and lower in calories than
other alternatives, despite the high sugar content of many products. Manufacturers have
increased the appeal of RTD tea by adding flavors such as lemon and other fruit flavors. With
the RTD product category, the tea company working between Lipton and Pepsi (Unilever
group) is considered the most formidable competitor in this market. This partnership has
given the company a leading position in RTD tea, in terms of trade value in 2020, accounting
for 25% of the market share of RTD tea in the US..
2.2.3. Barriers to entry
2.2.3.1. Legal barriers
To enter the US market, NutiFood must meet the strict standards of the US Food and
Drug Administration (FDA), one of the world's leading organizations with the most difficult
food standards and requirements. has been approved by this organization FDA. The NutiFood

factory is also tested and certified by the independent testing organization Michelson
Laboratories - USA to US FDA standards to be able to manufacture products and bring them
to the US market.
2.2.3.2. Financial barriers
Firstly, on barriers from financial markets: the growth rate of shares is not high, the
business development market is not yet oriented towards foreign enterprises in the US, the
investor system is monotonous, and the transparency is not high. not high, the quality of
financial statements is low.
Secondly, on barriers from financial intermediaries: there still exists a distinction in
credit preferential policies between domestic banks and foreign banks; regulations on credit
limit and adequacy ratio applied to credit finance make it impossible for commercial banks in
the US to meet all customers' borrowing needs; Large enterprises have easy access to capital
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from banks with large assets, while small commercial banks focus on small and medium
enterprises...
Third, about barriers from financial relations with State finance: the tax burden of
Vietnamese enterprises in the US is still relatively high compared to other countries, which
affects the business environment of Vietnam. Nutifood, negatively affecting Nutifood's ability
to access capital and development.
2.2.3.3. Barriers to business practices and practices
Americans use milk completely at will, not as stylish as Europeans and not too fussy,
comfortable drinking, so the US is the world's largest milk consumer and Americans are also
in the top. The world's largest milk drinker, many Americans consider milk as a beverage,
they can drink several cups of milk at a time. Whether at home, school, work or public place
and anywhere, anytime, one can smell the characteristic aroma of milk..
A dairy product that wants to penetrate the US market must first be a product of good
quality, leading in innovation. American dairy culture is quick, cheap, and convenient without
losing its true bitter aroma. milk. American milk is usually pale, both in color and taste, they

usually mix it in a large glass jar that can hold 10 people and are poured into disposable paper
cups. The popular way to enjoy milk in the US is Iced milk – condensed, hot milk with added
sugar poured into an iced glass. Americans often have the habit of buying milk at
supermarkets or at grocery stores. In addition, they like to drink milk at shops, or milk shops,
drink milk in the morning or when chatting with friends. Not only that, Americans often
attach great importance to time, so they often have the habit of drinking milk while reading
newspapers, watching the news or at work.
2.2.4. Legal and political environment
Currently, legal institutions related to export activities, including laws and regulatory
documents, have made very positive adjustments. These adjustments have created favorable
conditions for all economic sectors not only to participate in export activities, but also to
create a very flexible and open policy mechanism to help export business enterprises.
Importers get direct support (such as capital support, staff training, etc.) as well as indirect
support (such as support for bank loan interest, tax rates, support for customs procedures,
provision of information related to markets and partners, etc.) in order to quickly improve the
competitiveness of Vietnamese export enterprises. We can see these remarkable results
through some adjustments in legal institutions as follows:

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- Foreign trade business rights have been liberalized many times compared to the period
before doi moi. Enterprises of all economic sectors are allowed to import and export directly,
although there are still some import restrictions for foreign-invested enterprises.
- Measures to control import and export goods have been relaxed. All import and export
quotas for goods have been lifted, leaving only one garment and textile product for export
using the quota applied by the US market to Vietnam. Export licenses have been lifted for
many items, only a few items must be licensed by the Ministry of Trade and the Ministry of
specialized management. Administrative management measures for imported and exported
goods have also been adjusted and rationalized more than before.

Measures to manage import and export by means of tariffs have been systematized and
improved. The list of goods classification in the Import and Export Tariff has been developed
to ensure maximum conformity with regulations in accordance with international practices.
The structure of the tax rate schedule has also been revised towards clarity and transparency.
Import and export tax rates have been adjusted several times to keep up with changes in
domestic and international production and business situations.
- The exchange rate policy and foreign currency management have also been renewed in
a more relaxed direction. Administrative interventions on foreign currencies and exchange
rates have been phased out. The management of the exchange rate has been carried out on the
basis of the participation of market forces. The previous administrative and imposing way of
forming exchange rates has been abolished. Instead, the exchange rate is determined on the
basis of supply and demand interactions in the foreign exchange market. Currently, the
Ministry of Finance and the State Bank are coordinating with relevant ministries and branches
to continue researching and perfecting the foreign exchange market, moving towards building
a free foreign exchange market in line with international practices.
2.2.5. Favorable US attributes for the Pedia Plus product
2.2.5.1. Strain market
America is a metallurgical people. Due to the ethnic characteristics of this country
(according to this theory, over time, all races and peoples living in the United States will
blend together to form a new people, like many people). metal that is smelted to liquid form in
a "smelting pot" to smelt into an alloy). Indeed, there is practically no race that can be called
"American" or a people that can be called "American people". In other words, Americans do
not have a distinct ethnicity like most other peoples.
When checking and censusing, the US State officially recognizes 5 racial categories as
white, black, Hispanic (immigrants from countries in Latin America), Asian descent and
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people of Asian descent. Indians. In which, white Americans are the most numerous,
accounting for 74% of the population, followed by black Americans with 13%, Asians with

4% (in 2020, there are 1,642,950 Vietnamese in the US. and Indians less than 1%). As a
country with too many races, there are huge differences in cultural traditions, customs and
languages, so the relationship that binds racial and ethnic components in the US can form a
National unity is very fragile.
Also due to the multiracial characteristics, in the US, there are no strong and mandatory
social aesthetic standards and conventions like in other countries. Different races still live
according to their own culture, language, religion and over time mix and influence each other.
This has created a diversity in the consumption habits of Americans compared to the
consumption habits of consumers in other countries.
A specific example of color can be taken: Asian-Americans prefer bright and
background colors, while European-Americans prefer warm and vibrant colors. Color
preferences vary from North to South, Northerners prefer warm colors such as red, brown...
while Southerners prefer cool colors such as blue, white, light brown...
2.2.5.2. Consumer market, consumer tastes
First of all, it must be seen that America is a people that loves shopping and consuming.
They have the mentality that the more they shop, the more they stimulate production and
service growth, so the economy will grow.
Goods, whether high or medium quality, can be sold in the US market because the
population in this country consumes a lot of goods. Unique geographical and historical
features have formed the largest and most diverse consumer market in the world.
Abundant resources, not heavily affected by the two world wars, plus a long-term
economic development strategy have given the US a huge economic power and high income
for the people. With that income, shopping has become an indispensable feature in the modern
culture of this country. The store is not only a place where Americans come to buy goods, but
also a place where they hang out, meet to chat and expand social communication.
For the same items, the time spent by US consumers may be as little as half that of
consumers in other developed countries. With such a rapid change, the shopping demand of
the American people is very large and stable. That's why the price of goods plays a very
important role. This explains why consumer goods from some developing countries are of
lower quality but still have a place in the US market because their prices are really

competitive (while this is unlikely in Europe). .

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The large geographical area and diverse landscapes also give Americans a habit of
traveling and exploring at home and abroad. All consumer goods related to car travel have a
huge market. Sports related goods are selling well with all segments of the market from very
expensive goods for the high-income people to cheap goods for the poor.
With the current US financial crisis, US consumption has decreased, Americans have
switched to consuming cheap and essential products. This new US consumption trend can
benefit Vietnam. “Americans are now more frugal and don't go shopping in expensive stores
anymore. Americans' demand for cheap goods will have a more positive impact on Vietnam,"
US Ambassador Michael Michalak told the press on November 13, 2020 in Hanoi. Moreover,
since President Obama took office, There have been measures to stimulate the economy, so
the US economy has gradually stabilized, specifically: according to a report on Monday
(March 2) of the US Department of Commerce, consumption has increased by 0 .6% in
January 2021, the largest increase since May 2020. With this development, Vietnam has many
advantages and needs to promote and take advantage of its advantages in exporting goods to
the US.
2.2.5.3. The market has a wide and complete distribution system
Over time, American consumers have an almost absolute confidence in their retail store
system, they have a guarantee of quality, warranty and other safe hygiene conditions. This
also makes them have a very strong first impression of new items. If this impression is bad,
the goods will have little chance of coming back. Thus, entry by individual exporters rarely
threatens the commercial presence of first comers. The path that Japanese businesses have
taken, which usually takes 10-20 years to gain trust, is now somewhat unsuitable in the US
market.
The reason Americans put their trust in the domestic distribution system is also because
this system has proven its superiority in the distribution of goods. The operating motto of this

system always puts prestige on top, protecting the interests of consumers. Besides, American
distributors have also built a very complete, sophisticated and extensive distribution network
to bring goods to consumers. The form of requesting the delivery of goods via the Internet has
also been widely applied in the US market for a long time and is increasingly being perfected.
It is the completion of the distribution system in the US market that is a favorable
condition for Vietnamese businesses when exporting to this market (of course, before
entering, measures must be taken to learn and master). structure and characteristics of the
distribution system)

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2.2.6. Restrictions on exporting milk to the US market
Currently, Vietnamese milk has been exported to nearly 40 countries and territories. The
main export markets of Vietnam's milk are the US, Germany, Spain, Italy, the UK, France,
Japan, Belgium, China, the Netherlands, Poland... in which Germany and the US alternate. are
the two largest milk consuming markets of Vietnam. However, Vietnam's milk export price is
still low and is completely dependent on the international market.
The main reason for this situation is because the product quality is lower than other
countries and because Vietnamese exporters are still outside the international trading floor.
One of the reasons why Vietnamese milk has low quality is because Vietnam's primary
processing technology is still weak and inconsistent. Besides, farmers have a habit of
harvesting milk mixed with both ripe and green fruits. Therefore, even with good preliminary
processing technology, Vietnam's nut milk exports are still inferior to other countries.
Therefore, experts say that, in addition to improving the quality of exported milk to
have a better export price, Vietnam needs to increase the export value of milk through
processing, promoting domestic consumption, reduce the dairy industry's dependence on
foreign business producers. However, at the present time, Vietnam's dairy processing industry
has only developed to a certain extent, so its advantages have not been fully promoted.
Another limitation is that over the past 10 years, Vietnamese businesses have still

priced milk by relying on resale information of Reuters news agency, deducting costs,
converting into Vietnamese dong at the exchange rate and then offering local selling price.
While for hundreds of years, world dairy businesses have only traded through large futures
markets like NYMEX (New York). Some Vietnamese dairy enterprises are still apprehensive
about how to transact in this market. Joining the world exchange will help businesses quickly
access foreign markets. In fact, thanks to market judgment and the use of forward contracts as
a tool, it has partly limited risks for businesses.
In addition, Vietnam's milk exports also face tariff, anti-dumping and trade protection
barriers of the US, thus hindering the export as well as the export advantages of this product.
2.3. Market potential for Pedia Plus product and first 5 year sales forecast
2.3.1. Market potential
When assessing the potential in terms of the size of a market, people often consider the
population of that market and, more importantly, the level of disposable income of the people
in that market.
In both these respects, the US appears to be a promising market. According to the US
Census Bureau, the population of this country reached 303 million 150 thousand people in
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January 2020, ranking 3rd in the world (after China and India ). With rich and diverse natural
resources (oil, gas, coal, uranium ore, hydroelectric power...) the United States has reached
the level of an industrially developed country with an average income. per capita in 2008
about 45,000 USD/person, ranked among the countries with the highest per capita income in
the world.. According to a study by the Federal Bank, the US has more than 1 million in total
97 million households in the US have net assets of 1 million USD or more. With such a high
income, the shopping and consumption needs of Americans are very significant, making the
US a huge market for goods of other countries.
Although the US is currently falling into an economic recession and financial crisis,
Vietnam still has a great opportunity to export to the US because the US fell into a crisis that
made American people used high-end goods, now before the crisis, they will switch to using

cheaper products, pure goods.. These goods Vietnam has production capabilities and has great
advantages. And important than when Vietnam has joined the WTO, as well as signed
multilateral bilateral trade agreements with the US, creating great opportunities for Vietnam
when exporting to the US.
2.3.2. Sales forecast for the first 5 years
The prospect of trade relations between the two countries in the coming time is
forecasted to be very positive. The development trend of trade relations between Vietnam and
the US in the coming years is governed by many factors. According to the forecast results of a
number of research projects published by the Ministry of Trade, in the period of 2021 - 2025,
Vietnam's export turnover to the US will reach an average growth rate of 15-17% per year and
in the period of 2021 - 2025 is 13 - 14% per year. Meanwhile, Vietnam's import turnover from
the US will achieve a higher average growth rate of 18 - 20% and the next period from 2021
to 2025 may decrease to 13% per year.
In addition, based on the revenue plan in Vietnam in the past time, the Pedia Plus
product is expected with the revenue set out according to the marketing plan as follows:
Table 2.2. Sales forecast for the first 5 years of Pedia Plus products in the US market
Unit: VND
Year
0
1
2
3
4
5

Expected revenue
1,450,000,000
1,667,500,000
1,667,500,000
1,838,419,000

1,930,340,000
2,026,857,000

Average monthly
revenue in Vietnam
market
1,310,000,000
1,450,000,000
1,450,000,000
1,598,625,000
1,678,557,000
1,762,484,000

Expected difference
when promoting
Marketing program
140,000,000
217,500,000
228,375,000
239,794,000
251,783,000
264,373,000

% contribution to
increase revenue
of Marketing plan
11%
15%
15%
15%

15%
15%

Source: Nutifood's forecast
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In the first year period, the expected contribution to revenue growth is 11%. In the
following years, after stabilizing in the market, the revenue contributed from the Marketing
plan is expected at 15% over the years.

CHAPTER 3: MARKETING PLAN IMPLEMENTATION OF
OPERATIONS IN THE FIRST YEAR OF INTERESTING THE US
MARKET
3.1. Define plan goals
3.1.1. Penetrating and developing in the US market
- Dominate the nutritional milk market in the US of Fonterra.
- The goal is to put the company on the international stock exchange and build a
"nutrition milk empire" in the future.
3.1.2. Revenue target
Through marketing campaigns to help drive sales:
- Average annual growth rate of 5% - 10%
- The average annual revenue is from 2.5 to 3 billion VND
- Average annual business capital from 4 to 4.5 billion VND
- Average annual profit after tax is from 300 to 400 million VND
Table 3.3. Target for sales of Pedia Plus products in the period of 2021 - 2025
Unit: billion VNĐ
No
1
2

3

Targets
Revenue
Profit
Capital

2021
2,5
0,5
4

2022
2,7
0,7
4,5

2023
2,9
1
4,5

2024 2025
3
3
1,5
1,5
4,5
4,5
Source: Nutifood


3.2. Implementation plans
Option 1: Normal export
Exporting is the simplest method for domestic enterprises to expand their markets.
Enterprises only need to produce goods and transfer them to foreign enterprises, the enterprise

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will make sales in foreign markets. At that time, their products will be consumed by foreign
markets.
Option 2: Direct investment
Invest in dairy factories, invest in dairy farms, open Nutifood dairy stores right in the
US.
Option 3: Franchise business
According to the International Business Franchise Association - the largest association
in the United States and the world, the concept is stated as follows: "Francess is a contractual
relationship, between the assignor and the franchisee, under which The Transferor proposes or
must maintain a constant interest in the Recipient's business in such aspects as: know-how,
staff training; The Receiver operates under the trademark, methods or methods of doing
business owned or controlled by the Transferor; and the Receiver is, or will be, making a
substantial capital investment in the enterprise with its own resources.
Option 4: Joint venture
Nutifood will associate with a company in the US. The advantage of this form is that
Nutifood can take advantage of the partner's production facilities and experience in the
Philippines market to reduce production costs and penetrate the market better. However, the
risk is also great when it is difficult to control the product quality as required by Nutifood.
Nutifood is positioning itself as a clean milk production company. If there are any problems
related to Nutifood's milk quality, it will greatly affect not only Nutifood's reputation in the
Philippines but also in the domestic market.

Option 5: Standardization
Canned fresh milk when exported to the US will have the same quality, taste,
specifications and appearance as canned fresh milk consumed in the domestic market. The
production process and quality control are exactly the same for the two types of milk. This
strategy has the advantage that it can reduce costs due to the advantage of scale, without
having to invest in new machinery, equipment and raw materials for production. However, the
disadvantage is that the taste preferences of Filipino consumers are different from Vietnamese
consumers, which will make it difficult to consume products.
Option 6: Adaptation
Canned fresh milk when exported to the US market will be different from fresh milk
consumed domestically to suit the tastes and needs of American customers. To implement this
strategy, enterprises need to invest in new production lines to produce products suitable for
the US market, leading to an increase in initial costs..
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3.3. Evaluate and select options
To evaluate the options, the group of students conducts the scoring as follows:
Table 3.4. Evaluate and select options
Criteria
Option 1
Option 2
Option 3
Option 4
Option 5
Option 6
Total

Weight (%)


Score (1-10)

20.51
12.82
17.95
15.38
17.59
15.38
100%

8
5
7
6
7
6

Total
= Score x Weight
164.08
64.1
125.65
92.28
125.65
92.28
690
Source: Student group made

Option 1: Exporting milk to the US market - this is the option with the highest choice
with 8 points, accounting for 20.51%. Thereby, the availability of Nutifood is most suitable

for this option.
Option 2: Investing in dairy factories – This option is the least chosen, accounting for
only 12.82%. It can be seen that the potential risks as well as the ability to invest in a factory
in the US is the most difficult and expensive thing for Nutifood.
Option 3: Franchising – Occupying 17.95% is the second highest option after option 1.
With the current business situation in the US of Nutifood, this activity is feasible but not
really optimal.
Option 5: Standardization - accounted for 17.95%, equivalent to the second highest
choice. This is a suitable option in the current context in the US market.
3.4. Decide on a plan
Nutifood has decided to enter the US market through two ways: Export and Franchise.

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3.4.1. Normal export plan
According to the Vietnam Dairy Association in the US market, Vietnamese milk
accounts for less than 15% of the volume and 6% of the total value of US milk imports, and
90% of Vietnamese milk is exported to the US in the form of unprocessed ingredients. , only
10% canned processing.
In 2019, Nutifood had a breakthrough, launching Pedia Plus product and gradually
bringing this product to markets in many developed countries, including the US.
- Product quality: Nutifood offers the criterion of "convincing consumers by quality".
This is very clearly shown by the fact that Nutifood has created a special formula: Good
ingredients + high technology + Oriental know-how + a new perspective on nutritious milk.
Pedia Plus is produced by Nutifood from raw materials that are pasteurized fresh milk
ingredients selected at Gia Lai dairy farm, which is rated as the best in the world by its strong
taste, rich in pure milk flavor.
Product packaging: The boss of Nutifood once said “Packaging is a silent but effective
seller”. So Pedia Plus products are also carefully invested with luxurious and modern

packaging designs.
Price policy: Nutifood always attaches great importance to reducing production costs,
lowering product costs, thereby improving competitiveness with other businesses. To reduce
product costs, the company has also introduced many practical policies such as:
- Invest in technology lines, increase labor productivity and product quality.
- Improving business methods, management, motivating workers to work, improving
the efficiency of using machinery and equipment.
- Training and fostering to improve business and management skills.
- There are preferential and discriminatory policies for each customer group. For
intermediate customers, Nutifood also has reasonable financial terms to create a bond between
Nutifood and intermediary customers.
3.4.2. Direct investment
Nutifood built a dairy factory in the US. The advantage of this form is saving
transportation costs, complete control of production and business. However, its limitation is
that the investment capital to build a dairy factory according to the standard process is very
large, the labor cost of the US is higher than that of Vietnamese workers, Nutifood has no
experience in the market. If this happens, it will cause great damage to Nutifood.

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