Building Brand Strategy Hoaloc Mangoes

BUILDING BRAND STRATEGY FOR HOA LOC SWEET-MANGOES AND SUGGESTION TO APPLY FOR SOHAFARM

Tutor: Presenter:

Dr. Bui Thi Lan Huong Huynh Phuoc Nghia CFVG – Intake 14, MBA program

AGENDA I.

INTRODUCTION   

Fruit sector and Hoa Loc mangoes Problem statements SOHAFARM introduction

II. LITERATURE REVIEW III. RESEARCH METHODOLOGY   

Data collecting Conducting survey Interview

IV. ANALYSIS AND FINDINGS V. RECOMMENDATION & CONCLUSION

INTRODUCTION • Fruit sector: – Vietnamese fruit industry is slow growth – Competition from Thailand, China (domestic and international market) – The overall long-term programming does not pay attention – Lack of technology apply in fruit production

• Hoa Loc mangoes: – – – – –

A famous mango of Vietnamese The origin of Hoa Loc mangoes is the south of Vietnam. Might invest to produce large scale (~ 16,000 ha in Vietnam). More economic values and nutrition than other mangoes. Export advantage in international market (Japan, China, Others).

INTRODUCTION • Problem statements: – Labeling Hoa Loc mangoes does not pay attention when selling or exporting to the market. • It bring about un-identify the real Hoa Loc mangoes

– In fact, the traders buy Hoa Loc mangoes without brand name (just like commodity). • Fluctuation of price

– Without organization builds brand strategy for Hoa Loc mangoes. • Firm or co-operative does not build Hoa Loc mangoes as a brand • Brand communication, brand identity, brand structure, promotion mix, international marketing..

INTRODUCTION • SOHAFARM introduction – A biggest farm in Vietnam, born 1979, found by government of Can Tho City, holds 6924 ha lands for cultivation and business. – 252 employees management, 2,800 households member (15,000 peoples), households income is around 60 mil VND/year. – Doing business various fields of agriculture and sylviculture products: exports agriculture products, breed (rice, fruits, poultry, seafood products), food processing, planting trees, juice fruits, textile, pottery trading, handicraft, construction (irrigational work), transporting and logistical. It holds 16 factories. – Investing 150,000 Hoa Loc mangoes tree, 8000 tons/year. It will exporting to USA, EU and Japan market.

LITERATURE REVIEW • • • • • •

Michael Porter, Competitive Strategy, (1980), Havard Business review. Kevin Lane Keller, Strategic Brand Management, (1997), Prentice Hall. Denzil Mayer, Beyond Branding, (2003), Nicolas INC. David Aaker and Joachimsthaler, Brand leadership, (2001), Free press London. Philip Kotler and Gary Amstrong, Principle Marketing, (2001), Prentice Hall. Chris Macrea, The Brand Chartering Handbook, (1996), Addison Wesley Longman.

Brand strategy process

Source: VietnamMarcom

RESEARCH METHODOLOGY Problem statements Literature reviews Research methodology Data collection Primary Data Survey Questionnaires

Secondary Data In-depth interviews

Data analysis

Recommendations and

RESEARCH METHODOLOGY • Data collecting:  Primary Data: Questionnaires, Interviews  Secondary Data: We use the MARD’s report. The research from GTZ, UNDP, OECD, SOFRI, VINAFRUIT and others are the main sources of information

• Qualitative and quantitative research: Method

Parties

Purpose

Technique

Result

Qualitative

Experts in marketing and fruit/ CEO of SOHAFARM

How Hoa Loc mangoes build brand strategy/ their experience in fruits, their forecasting about Hoa Loc mangoes in the market

Interview

Quotation and analysis

Quantitative

Customers

Data collection & analysis Customer expectations/buying behaviors

Questionnaires

Excel and SPSS analysis

RESEARCH METHODOLOGY • Questionnaire design – Objectives: • Consumer behaviors (where, when, how, why they buy) • Consumer spending, like or dislike about Hoa Loc mangoes • Brand perception (brand naming, labeling, identity, image )

– Solution of interview: • Conducting 150 samples, but gather around 120 for analysis • Take place in district 1, 3, 5 and Tan Binh, 30 samples for one. • Two person for each place interview (fruit shop, supermarket, and traditional market) • Run interview on Saturday, Sunday (from 8h30 to 12h00) • Interview place is at fruit shop (50% samples), supermarket (20% samples), traditional market (30% samples) • For one interview around 5 minutes, 30 questions

RESEARCH METHODOLOGY • Questionnaire design (cont) – Interviewees profile: • • • • • •

Woman who living in HCMC Main decision maker in buying mangoes and fruit Used to eat mangoes in harvest, out-of-harvest Their age is around 25 to 35, may got married. Working is 60% and housewife and other is 40% Going to the fruit shop, supermarket, and traditional market on weekend or every day. • Intelligent consumer (education, knowledge, pay attention health, social relationship, smart expense). • Spending time for TV, Radio, magazine, internet…

ANALYSIS AND FINDINGS • Consumer behaviors: – 82% interviewees like eating mangoes. – They usually buy 3 days per one time (31%) one time/week is around 35%. – Consumer accept to pay 20,000VND to 25,000VND/one kg on-of harvest, and out is around 25,000VND to 30,000 VND. – 78% consumer buy 1 kg to 2kg for one time, and the budgets from 20,000 VND to 50,000 VND/one time.

Price acceptability per one kg/out-of-harvest

6% 3% 11%

o Below 20,000 VND/kg

34%

o 20,000-25,000 VND/kg o 26,000-30,000 VND/kg o 31,000-35,000 VND/kg

46%

o Above 35,000 VND/kg

ANALYSIS AND FINDINGS • Brand awareness: – 85% of interviewees know Hoa Loc mangoes, this is strong competitive advantage. – Functional benefits of Hoa Loc mangoes is better than others. – Lack of loyalty. If there is not Hoa Loc mangoes in the fruit shop, they will choose other fruit (31%) and buy other mangoes (36%).

23%

0%

9%

Brand sw itching behaviours

o Do not buy o Find another place

29%

o Buy another mangoes o Buy another fruit

39%

o Don't know

ANALYSIS AND FINDINGS • Brand positioning: – Most of consumer think Hoa Loc mangoes sweet, but if comparison with Thailand mangoes, It have more sweet-smelling than Thailand mangoes. – The attributes of Hoa Loc mangoes is nutrition, sweet smelling, pulp.

ANALYSIS AND FINDINGS Mangoes' food processing

• Brand strategy: – Consumer expect Hoa Loc mangoes must build the brand name. (the signal commit quality for consumer buying). – Beside Hoa Loc mangoes eats ripening, 63% of interviewees think that it should makes food processing. – Brand strategy must be both category: fresh fruit and food processing.

2%

9%

11% 4%

o Cakes o Candy o Fruit juices o Jam

29%

o Desiccation o Flavouring (industry)

38%

o Other

7% Benefits of building brandname o Easy identified

2% 21%

26%

o Avoid confusedness o Know ing original product o Do not w orry about price

15%

o Take time to buy

21% 15%

o Other

ANALYSIS AND FINDINGS • Brand plan:

MARKETING PLAN

• Quality control process • Packaging strategy • Fluctuation price should be within 10,000 VND for in and out of harvest • Reducing middle channel, direct distribution to fruit shop, supermarket, traditional market • Brand identity design • Focusing on point-of-purchasing: shop design, banner…

ANALYSIS AND FINDINGS Brand images of Hoa Loc mangoes

• Brand equity:

Pr em ium

5

4

3

2

1

pre mi um

40 30 20 10 0

No t

– Building Hoa Loc mangoes become the premium mango. – Keeping the brand perceived through quality control. – Building loyalty through food processing and fresh fruit.

RECOMMENDATION • SOHAFARM – SOHAFARM should build the brand name “Hoa Loc Mangoes SOHAFARM”, beside it holds the fruit preservation process and huge investing. – Registering trademark for international and domestic market – Hoa Loc is famous mango, so, building the brand will meet advantage, and it may be a leading brand. – Brand strategy should includes fresh fruit and food processing strategy. • Food processing focus on Vietnam market at first stage • Fresh fruit must sell like a brand to domestic and international market with high quality.

RECOMMENDATION • SOHAFARM (cont) – Brand implementation should be: • Quality control in producing • Packaging for both fresh fruit and food processing products • Stabilizing price fluctuation, it should be around 10,000 VND for in and out of harvest. • Reducing the middle channel in distribution • Building brand identity, it is very important for promotion mix and brand communication.

RECOMMENDATION • Government aspects – Government should makes long-term programming for key fruits when agricultural are challenges to accessing WTO. – Supporting technology, scientific research, competitive information, and training employees for firm, cooperative and farmer. – Organizing international trade fair in Vietnam to promote agricultural products.

• Customer aspects – Satisfying demand and safe through buy brand

CONCLUSIONS • Problems: – Labeling for Hoa Loc mangoes – Selling like commodity, not a brand – Without brand strategy for long-term

• Methodology: – Collecting secondary data – Conducting survey (qualitative and quantitative research)

• Key recommendations: – – – –

Building brand name and doing business in mangoes by brand. A famous mangoes, so , it will be advantage in brand building. Brand strategy should be business on fresh and food processing Brand implementation : • Packaging, Stabilizing price , reducing middle channel, design brand identity.

CONCLUSIONS (cont) • Limitations: – The mangoes’ statistics are very limitation, and information’s of research requirements come from many sources. – There is no once of research in branding in fruit sector before. – The samples size is limitation, and it just focus on HCMC. – We ignore the technology, soil condition in this research.

• Extending: – We must have a research on economic value to forecasting demand, competitiveness in the market. – For the further research, we need to explore the planting and postharvest of Hoa Loc mangoes. – Hoa Loc mangoes need the solution to innovate in resisting a disease. – For implementation this strategy, we should organize the people who can be ability in branding skill and management.

THANK YOU VERY MUCH ! Picture 3