Marketing Plan for 0° Natural Green Tea
of Tan Hiep Phat Corporation
The College of Business Administration
Central Philippine University
Student: Uyen,Nguyen Thi To
Student code : CPU BA039
Marketing Plan for Natural Green Tea - 0° Tea of Tan Hiep Phat Corporation
1. EXECUTIVE SUMMARY
After the great successes from Number 1, Laser and Ben Thanh beer, Tan Hiep Phat (THP) – a powerful group launched Natural Green Tea 0 (0° Tea) in 2006, which continued marking its important advance in the beverage market.
The competitive ...view middle of the document...
- Create new flavours for different tastes of customers; take the innovation in the package.
*Promotion: plays a vital role in the success of 0° Tea and is invested lots.
- Continue launching advertising activities on TV, newspapers, magazines and the Internet.
- Have specific strategies to encourage the purchasing power through sale promotion (sample, discounts, etc)
- Invest more in PR, be a sponsor of big competitions: Tiger Cup, Miss prepare for its market development outside Vietnam in(Vietnam 2008 2009.
Finally, ‘Action Plan and Budget’ and ‘Control Program’ parts will illustrate specific plans to support for the marketing strategies for 0° Tea as mentioned.
2. BACKGROUND INFORMATION
Tan Hiep Phat Co. Ltd (THP) is one of the biggest companies in the beverage industry of Vietnam. Established in 1990, with the mission: ‘meet the demand of customers with perfect products’, THP has affirmed its leading position and received customers’ trust.
THP has successfully introduced Natural Green Tea 0 (0° Tea) since 1/2006. After great successes when this group continuously achieves many noble rewards from 1998 to 2005, the event of 0° Tea has marked a new step for THP being on the way to make its ambition ‘become the leading Beverage Group in Asia’ come true.
0° Tea is made from fresh green tea leaves, produced on one of the most modern production line in Asia, with four options for different taste: no sugar, honey, lemon and winter melon green tea, is becoming a popular drink of Vietnamese people.
3. SITUATIONAL ANALYSIS
3.1 MARKET SHARE ANALYSIS
Currently, 0° Tea occupies more than a half of the ready-to-drink tea market in Vietnam. It significantly increased by 190% from 12/2006 to 12/2007 (Source: ACNielsen). The chart below illustrates the ready-to-drink market share in 12/2007.(Source: ACNielsen)
3.2 MAKET ANALYSIS
Thanks to Vietnam stable political environment, THP gains many benefits when operating its business. Moreover, with tea products, the Government tends to provide some kinds of subsidies to maintain the balance of payments.
However, THP has to follow strictly the legislations, which are changing overtime; the change in tariffs, for example, may have a negative effect on the sales of 0° Tea.
8.44% GPA in 2007, which ranks three all over the world (Source: The ministry of Foreign Affairs) definitely proves the living standard in Vietnam is increasing rapidly. Thus, the purchasing power of consumers also rises. They are now willing to buy and try new products, especially if these ones are good for their health.
However, due to high inflation rate, which leads to general price rising, THP has to calculate the cost of goods sold effectively to maintain its profit margin.
Tea is a popular and traditional drink of Vietnamese people. That has brought a great advantage for the development of 0° Tea when it jumped into the market.