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elsons Corn in Cupguyen HienAnh ThuNguyen Hien Anh ThuNguyen

en Anh ThuNguyen Hien Anh Thurketing Principles Report

November

2011 5th

08Fall

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Table of Contents

INTRODUCTION 222

CONTENTS 333

I. THE VARIOUS ELEMENTS OF MARKETING PROCESS NEEDED TO BE CONSIDERED

BY NELSONS CORN IN CUP TO PENETRATE INTO VIETNAM 333

II. THE BENEFITS AND COSTS OF A MARKETING ORIENTATION APPROACH FORNELSONS CORN IN CUPVIETNAM 555

III. MACRO AND MICRO ENVIRONMENTAL FACTORS FOR NELSONS CORN IN CUP

VIETNAM 7771. MACRO-ENVIRONMENTAL FACTORS 7772. MICRO-ENVIRONMENTAL FACTORS 111111

IV. SEGMENTATION CRITERIA FOR NELSONS CORN IN CUPVIETNAM 151515V. TARGETING STRATEGY FORNELSONS CORN IN CUPVIETNAM 181818VI. HOW BUYER BEHAVIOR AFFECTS MARKETING ACTIVITIES IN DIFFERENT

BUYING SITUATIONS FOR NELSONS CORN IN CUPVIETNAM 202019VII. NEW POSITIONING FOR NELSONS CORN IN CUP COMING TO VIETNAM 222221

CONCLUSION 303024

APPENDIX 323225

REFERENCE 363629

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INTRODUCTION

Nelsons Company was founded in the year 1985 with a unique idea of its very

first founder, Nelson Kwork. This Malaysian company is the first company in the world

to introduce Corn in-Cup to the market. This idea was so welcomed at the beginning

that it has successfully spread all over the world with more than 500 franchised outlets.

Along with suitable operating strategy, Nelsons has now developed into a profitable

business and appears in many countries. There are now 800 outlets in 50 countries,

especially 300 are in the Middle-East. The companys product varies from Corn in Cup,

Ice Cream Potong to Snacks, Waffle and even Soup. Thanks to appropriate marketing

strategy and the quality of the product itself, Nelsons Corn in Cup is now being in a

class above many in the same category of business.

Recently, after such successful result, Nelsons is planning to franchise into Vietnam,

focusing on such crowded and developed cities as Hanoi, Danang and Ho Chi Minh city.

Its goal is to open about 100 outlets by the end of the year 2012. As for that, this report is

carried out in order to plan a clear and detailed marketing strategy to help Nelsons with

its aim.

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CONTENTS

I. The various elements of marketing process needed to be considered by

Nelsons Corn in Cup to penetrate into Vietnam

In order for the business to run well, Nelsons should find ways to discover and

fulfill all of its customers needs and wants. This marketing process is clearly presentedin the chart below.

Chart 1: The Marketing process

First of all, marketing strategy focuses on the organizations activities in

relation to its markets . For this step, what should be considered is the demands of

Nelsons customers. Researches should be carried out thoroughly in order to know what

is the trend now, and more important, what is in need at the moment. Also, the point here

is not only to work efficiently (to do a task well) but also to work effectively (to do the

right task). Moreover, it should be aware of future changes in advance in order to have

perfect planning for that. For doing so, nearly the only way is through customers. From

that on, an effectiveintegrated communications plan should come out to make sure

TheMarketing

process

Marketingstrategy

Marketingplanning

andstrategy

Environmental scanning

Strategyformulation

Marketsegmentation

Themarketing

plan

Marketingaudit

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everything is on the right track. Such plan is vitally important to every market, not to

mentionedNelsons.

Secondly,developing a plan is the next step in marketing process. The main

function of the plan is to offer management a coherent set of clearly defined guidelines,

but at the same time it must remain flexible enough to adapt to changing conditions

within the organization or its markets.What should be considered are the different

customer groups and their needs and wants. Only with clear mission statement can the

company protects itself from going out of the right track. Nelsons Wholesome

goodness on the go has been helping them to continue with its success, now the mission

should be much clearer and more focusing on Vietnamese markets own features.

Besides, strengths and weakness should be covered, also. Nelsons should know

that it has the advantage of being an old company, which has been successfully operating

in many different countries. This is the strength that not many companies have so the task

for Nelsons is to do anything to make good use of its benefit. Despite the strength,

weakness should not be left out. Nelsons competitors can take advantages of its weak

points in order to eliminate the company from its market. That is why ignoring the

weaknesses will cause the company to lose profit or even face failure. In addition, the

company might want to know how flexible is its operation, what is its reputation at the

moment, how strong are particular product lines and what is the extent of brand loyalty

among customers. To know all of that, marketing audit with thorough studying of

strengths and weakness is required.

Thirdly, environmental scanning is also very important. Nelsons should be

clearly aware of what is going on generally in the market. Knowing the competitors

inside out will help to avoid the possibility of being knocked down by them. Knowing the

technological environment helps to catch up with the newest technology and to boost up

productivity. Knowing social environment helps to come up with marketing strategies

that appeal to people of all ages and from all walks of life. Knowing economic and

political environment helps to avoid relating unexpected situation.

Fourthly, knowing the strengths and weaknesses, it is important to come up with

competitive strategies. Nelsons should be aware of when to compete across the entire

market and when to compete only in certain segments. Wrong decision can lead to tragic

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failure as this brand is very new to Vietnamese people. If it only relies on what it has on

other market without having plans suitable for Vietnamese market only, losses can come

at anytime.

Fifthly, market segmentation is the subdividing of a market into distinct subsets

of customers. The important elements here are each segment consists of people with

common needs and preferences and each segment can become a target market with a

unique marketing mix. For example, with behavioral segmentation, while children are

attracted by colorful packages or toys attached to the product, adults are much more

concerned about the quality of the ice cream they eat or the taste of the cappuccino that

they drink. That is why for each segment, there should be different marketing strategies.

For children, there should be toys featuring some famous cartoon characters while for

adults, the product information should be put on top.

After all the researches and evaluation carried out, next, what should be come up

with is a complete marketing planning. As for this, sale and marketing budget should be

forecasted. In every case, an objective is nearly the most important thing. Everything can

go out of control without a specific goal. For Nelsons it is not an exception. Sales targets

and the total marketing budget must be set up, which can contribute to bringing the

balance between cash inflows and outflows for Nelsons.

II. The benefits and costs of a marketing orientation approach for Nelsons

Corn in CupVietnam

Most successful organizations focus on their customers. With marketing oriented

approach, Nelsons Corn in Cup Vietnam has to make decision based on customersneeds and wants.

Marketing orientation approach brings business some undeniable benefits. Firstly,

this approaching method will help Nelsons to build good relationship with customers.

Vietnamese people are not familiar with Nelsons product as this is the first time the

company made its appearance there. However, building up relationship with customers is

not impossible. If the company always pay attention to the market and catch up with the

trend, if the company know and meet peoples wants and needs at the beginning, it will,

at first, find a place to stand in customers mind. Then, if customers are satisfied with

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Nelsons product and the service that they received, next time they will definitely come

back for more. The more next time there is, the more trustworthy Nelsons products

become in customers eyes. Eventually, the company will successfully build up loyalty

and trust within each customer. Moreover, if customers are satisfied, they may come back

or buy more of the same product and even more expensive product. They can even advise

their friends to Nelsons kiosks. Second, trust and loyalty will lead to the brands

affirmation. When talking about Nelsons, people will think of a class above many in the

same category of business. Third, increasing profit is another benefit that marketing

orientation brings to Nelsons. A lot of loyal customers will bring stable income to the

company. Even more, when customers introduce Nelsons to their friends, they help this

business earn profit.

Benefit does not come by itself, one business has to spend time, effort and money

in order to satisfy customers demands. First, the company has to invest in researching

market. After colleting all the information needed, Nelsons must spend time planning to

fulfill the requirement of a new market. Second, producing also involves lots of energy

and money. Such expenses include materials, machine, equipment or building rent.

Moreover, the cost for keeping material in stock is also counted. These costs are

unavoidable. Money can only be saved by minimize errors or miscalculation. Third, cost

includes advertisements and promotion plans. These are key important in terms of

attracting customers attention. In order to sell product, Nelsons at first has to make itself

recognizable with the help of advertisement. Simply the company can rely on TVs,

newspapers, radios or magazines. Then it has to have wonderful promotion plan in order

for the product to be interested in. In this case, expenses will be on such policy as

discounting. Customer retention is also very important since the cost of attracting new

customer is much higher. It is much better to spend effort keeping loyal customers and

having those people advertising for the company than to attracting many new customers.

In short, today almost every organization is trying to be more marketing oriented.

It is a good way to the company to success. In order to do that, what Nelsons has to give

up is considerable but the benefits that it brings is worth trying.


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III. Macro and micro environmental factors for Nelsons Corn in Cup Vietnam

The marketing environment can have both direct and indirect influence on the

organization that it surrounds. It includes all of the forces that affect one companys

ability to build, to maintain good relationship and to server its customers. The marketingenvironment includes both micro and macro environmental factors. For Nelsons, in

order to successfully operate and earn profit in a new market, it has to carefully take both

micro and macro environmental factors into consideration.

1. Macro-environmental factors

The macro environment is all the external factors to the firm and cannot be

controlled. The important factors of macro environment are PEST (Political factors,

Economic factors, Social factors and Technology). Nelsons has to flexibly adapt these

factors when beginning the marketing process.

Chart 2:PEST analysis

1.1. Political factors




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government. The advantage could be multiplied if Nelsons had a suitable plan to deal

with the imported materials such as purchasing a large amount for long-term or located

its manufacturing factory in Ho Chi Minh city (as Malaysia is in the south of Vietnam,

this will shorten the distance and the delivery time, resulting in saving money). All in all,

running business in Vietnam seems quite positive.

1.2. Economic factor

All economic factor: inflation, financial crisis, GDP could affect the business of

Nelsons.

The chart below shows inflation rate in Vietnam from 2008 to 2011. According to

financial report, the inflation rate in Vietnam in 2011 is about 22%, which means the

price of product in general will rise. The increase in price results in customers reducing

the amount of money spending. At this time, if marketing planning is not suitable and

attractive, Nelsons will gradually lose its customers.

However, an increase in GDP could show a positive signal, especially when

Vietnam is targeting average annual GDP growth from 6.5% to 7% in the period of 2011

to 2015.

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1.4. Technology factor

Technology is the final factor in the PEST analysis. Technology is developing

quickly, which can lead to new market, new types of customers, new product and new

marketing strategy. For instance, the Internet has now become familiar to all Vietnamese

people. The Internet provides business with great help in marketing. Thanks to the rapidspread of information on the Internet, marketing today has become much easier than ever

before. Moreover, many people are using the Internet as a tool to buy goods (online

shopping) so it is important that Nelsons focus on this type of marketing.

Along with that, media such as newspaper, magazine, radios and televisions are

now playing an important part in Vietnamese peoples life. If Nelsons know how to do

marketing with these media, the company can successfully reach its goal in the end of the

year 2012.

2. Micro-environmental factors

The micro environment refers to the internal environment that affects an

organization directly. This can be presented with a SWOT analysis, which stands for

Strength, Weakness, Opportunity and Threat.

Table 1: Micro environmental factors

Strengths

- Malaysia famous brand

- Years of experience

- 800 outlets in 50 countries

- Wide range of product (1 brand

providing many kinds of product)

- Appealing shop, reasonable price,

good quality, well-trained staffs

Weaknesses

Getting into a new market means

- Being not known by Vietnamese

customers

- Lack of relationship

- Difficulties in adapting new environment


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2.3. Opportunity

First, the fact that Vietnam is an open market brings Nelsons company many

chances to develop. For example, the government has many policies to encourage foreign

companies and investors to operate their business in Vietnam.

Second of all, Vietnamese peoples living standard is higher and higher day by

day. Now not only want to eat, to wear but they want to eat delicious food and wear

beautiful clothes. As for that, people are wiling to pay larger amount of money and in

return, they want high quality product.

Third, Vietnam is now a country with young population. Mainly there are people

at the age of 1040, who easily accept changes and get used to new things. Nelsons has

already had products that attract this type of people so the most important thing to do now

is to take every good use of those opportunities.

2.4. Threat

Although Nelsons is until now the only brand that provides different types of

products, the threat that it faces is many other competitors who specialized in only want

type of product. Those competitors have experience and they only have to take care of

one product, which means they might produce better product that Nelsons who has to

focus on many things. As a result, if Nelsons cannot carefully plan different department

to take good care of different types of its product, the quality may not be able to compete

with other brands.

Moreover, the economics situation today is also a serious threat. Inflation,

financial crisis can directly affect customers buying behavior. This means that Nelsons

project can fail at any time if the company cannot foresee the upcoming events.

In short, it is very important for Nelsons to be proactive when dealing with the

marketing environment. By doing so, the business will run effectively and efficiency. It is


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also necessary to put equal emphasis on both micro and macro environmental factors and

to quickly adapt to them.

IV. Segmentation criteria for Nelsons Corn in Cup Vietnam

For Nelsons the process of selling product involves only the company and its

customers so this is B2C market. According to Kotler, market segmentation is the

subdividing of a market into distinct and increasingly homogeneous subgroups of

customers, where any subgroup can conceivably be selected as a target market to be met

with a distinct marketing mix.

Customers are different in terms of age, gender, geographic attitude or buying

habit. These differences can affect their buying decision differently. That is why Nelsons

needs clear market segmentation in order to know where and how to focus on each

particular group of customers.

For Nelsons, there are plans to franchise into Vietnam with the focus in cities

like Hanoi, Danang and Ho Chi Minh City. Therefore, the market should be, at first,

segmented by geography. Then more detailed segmentation would be demographic,

psychographic and behavior segmentation. The three cities represent three different part

of the country: the North, the Middle and the South respectively. Due to that, each city

can be considered a different market for Nelsons to develop. People in the three parts of

the country have their own taste, their own needs and wants and their own lifestyle.

First of all, the three cities are three biggest potential markets through out the

country. Almost all entertainment centers or big shopping malls are built there. For






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Nelsons, opening its outlets in those cities is a big advantages thanks to all the modern

facilities and equipment. All in all, such product as Nelsons will undoubtedly be

welcomed in crowded places like Vincom or Parkson. Moreover, Danang is now

considered the city of tourism, which means a huge amount of tourists coming to this city

will contribute to the successful selling season of Nelsons product.

Additionally, three cities are located in three parts of the country, which brings

them the differences in climate. In Ho Chi Minh city, there are only two main season:

dried and rainy. Most importantly, this city is hot all over the year. On the contrary,

Hanoi has four separated seasons: spring, summer, autumn and winter. The weather

changes according to changes in season. This is also one major factor that Nelsons has to

care about in order to make the best of its business.

Also, between each city, there is difference between incomes. Ho Chi Minh city

has the highest level of income, following by Hanoi, and the next one is Danang. It could

be assumed that Ho Chi Minh city will be the market where products are consumed faster

and with a larger amount than the other two cities. However, this is only a prediction

based on the economic situation. The rest depends on appropriate marketing strategy. For

instance, the company should have attractive promotion campaign or discount policy

toward people with low income.

Second of all, ages make differences. People over the age of 30 normally have

stable income and tend to go shopping more often. They are free to spend money on

things that they like. However, they understand the meaning of money through hard

working so these people always find the way to save money. Reversely, people under the

age of 30 do not have that ability. For adolescents, some have salary but only from part

time job, some receive allowance from parents, but they have the tendency to spend more

money carelessly than adults. For children, they totally have to depend on parents. Only

with the permission from adult can they have what they want. For Nelsons product, it

tends to appeal and attract young people than the old because of its features (which make

it more likely to be considered fast food). In addition to that, gender is worth considered.

Finding out which types of products attract girls and which types attract boys will help to

boost up the selling result.

Third of all, people in each city have different characteristics. For example, in


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Hanoi, people are dignified and calm while in Ho Chi Minh city, people are funnier but

more hot-tempered. Danang people are totally different. They are not very rich, they are

not too easygoing or too serious, they are really realistic but also quite hospitable. As the

result, marketing plan should focus on these differences between characteristics. Careless

ignorance can lead to failure in promoting and selling products.

As for lifestyle, Danang and Hanoi people seem to be quite similar so Vietnam.

As for those people, it is hard to make a choice of buying something immediately. They

have to consider carefully before deciding. They even have to ask many people for

advice, visiting many shops before actually buying. Especially for Danang people, having

quite low income in comparison with two others, it is even harder for them to make

decision. On the contrary, Ho Chi Minh people are generous. They do not need to ask

others for advice but buy everything immediately whenever they like.

Hanoi and Danang people are quite loyal to the brand that they are used to. That is

why it is quite hard to approach this market. Far different from that, Ho Chi Minh city

people are easy going with new product, they can get used to new things quickly.

Northern people are more likely to go shopping in small traditional market while

Southern people prefer huge shopping malls with a variety of luxurious brands.

Focusing on social class is also important. Upper class is easy going with money.

They are willing to spend a large amount of cash on luxurious brand, as long as the

quality is guaranteed. Middle class and lower class people cannot do that. They have to

be more careful with expenses as their income is not really high.

Forth of all, Vietnam market can also be divided into three main groups: children,

adolescence and adult. For children, this group is easily attracted to colourful things.

Although they do not have the ability to pay, their influence on their parents (who are the

main buying group) is considerable. If Nelsons products are appealed to this group, then

the result could be very positive. Attracting children only is not enough. Parents are the

people who make decision. If they think Nelsons ice cream or Nelsons snack is not

good then weather their children like it or not, they will not possibly buy anything. That

is why satisfying the group of adult is also very important. Generally, people in such

group do not very much buy this kind of product on purpose but are affected by others.

The first situation is that they could normally buy ice cream for their children. The


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second one is seeing others buying when being in such places as cinemas or shopping

centrals. The last group is adolescences, mainly pupils and students. They like fast food.

They like eating something when going out with friends or when watching movies on

Vincom for example. This group can also afford Nelsons (about 3-5 RM) with their

monthly allowance. Quality, attractiveness and reasonable price will keep this group stay

with Nelsons product.

V. Targeting strategy for Nelsons Corn in Cup Vietnam

Targeting strategy is the selection of potential customers to whom a business

wishes to sell products or services. Based on behavioral segmentation, Nelsons can

choose for itself a targeting strategy.

It is easy to see that the young, especially pupils and students are most likely to

buy Nelsons product. Therefore, the company should put more emphasis to this group of

customers.

To begin with, the products are very much suitable for these customers. First,

there is a wide variety of choices. Nelsons Corn in Cup, which has zero cholesterol, can

go with any movie time. Today, that people (especially the young) buying popcorn seems

to become a part of cinemas culture. If Nelsons can take advantage of this market

location, the turnover will be unexpected. Moreover, cinema and theater are not the only

places where Nelsons product can be sold. Ice cream or cappuccino can be sold in

shopping centers such as Vincom or Pico mall. Furthermore, school gate is an ideal

places where products are sold the quickest. After school time is when this place is full of

people who are willing to pay for anything that attracts them. With the advantage ofselling many types of snacks and fast food, Nelsons kiosk is like a small canteen to

every students. Second, the price is acceptable. Students and pupils mainly depend on the

allowance coming from their parents. They are not able to control their financial income.

Due to that, the price that Nelsons brings will undoubtedly catch these young customers

attention.

Beside that, these customers have every habits that fit the products

characteristics. They like to eat something when hanging out with friends such as going

shopping, going to the movie or to the park. In this case, Nelsons ice cream, cappuccino

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or snacks are the choices that cannot be missed out. Moreover, this group of customer

likes new things. They can easily get used to new brand, new product. For the first time

coming to Vietnam, Nelsons has every condition to fulfill this requirement. In addition,

young people cannot completely control their spending money. That is why providing

high quality product at a stable reasonable price will keep these customers loyal to the

company.

Nhm mc tiu chin lc l la chn ca khch hng tim nng m

doanh nghip mun bn sn phm hay dch v. Da trn phn on

hnh vi, Nelson c th la chn cho mnh mt chin lc nhm mc

tiu.

N rt ddng thy rng, trc bit l hc sinh, sinh vin c nhiu

khnng mua sn phm ca Nelson. V vy, cng ty nn ch trng

hn ti nhm khch hng ny.

bt u, cc sn phm rt thch hp cho cc khch hng.u tin,

c nhiu s la chn. Nelson ca ng Cup, trong c khng

cholesterol, c thi vi bt k thi gian b phim. Ngy nay, m mi

ngi (c bit l gii tr) mua bng ng dng nh tr thnh mt

phn ca vn ha in nh. Nu Nelson c th tn dng li th ca a

im ny thtrng, doanh thu s l bt ng. Hn na, in nh v sn

khu khng phi l ni duy nht m sn phm ca Nelson c thc

bn. Kem hay cappuccino c th c bn trong cc trung tm mua

sm nh Vincom hay trung tm mua sm Pico. Hn na, trng hc

ca khu l mt ni l tng, ni sn phm c bn nhanh nht. Sau

thi gian hc l khi ni ny l y ca nhng ngi sn sng tr tin

cho bt ciu g thu ht h. Vi li th bn nhiu loi n nh v

thc n nhanh, kiosk ca Nelson l ging nh mt cng tin nh mi

hc sinh. Th hai, gi c th chp nhn c. Sinh vin v hc sinh

ch yu ph thuc vo tr cp t cha m ca h. H khng th kim


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sot thu nhp ti chnh ca h. Do , gi ca Nelson mang li chc

chn s thu ht s ch ca cc khch hng tr.

Bn cnh , nhng khch hng c tt c cc thi quen ph hp vi

c im ca sn phm. H mun n mt ci g khi i chi vi bn

b chng hn nh i mua sm, i xem b phim hoc cc cngvin. Trong trng hp ny, kem Nelson, cappuccino hoc cc n

nh l cc la chn khng th b l. Hn na, nhm khch hng thch

nhng iu mi. H c th ddng c c s dng thng hiu

mi, sn phm mi. Ln u tin n Vit Nam, Nelson c mi iu

kin thc hin yu cu ny. Ngoi ra, nhng ngi tr tui c th

khng hon ton kim sot tin chi tiu ca h. l l do ti sao cung

cp sn phm cht lng cao mt mc gi hp l n nh s gi cho

cc khch hng trung thnh vi cng ty.Sometimes the law can be restricted

and very complex or it can even limited one company from its target. For example, some

of Nelsons products maybe restricted to its targeted customer such as Corn in Cup

VI. How buyer behavior affects marketing activities in different buying

situations for Nelsons Corn in Cup Vietnam

1.The differences between customer and organization buying behavior

2.Organizational buyingbehavior for Nelsons Corn in Cup

3.Customer buying behavior for Nelsons Corn in Cup

Nelsons directly provides its product to the customers, the process does not

involve any third party so this is the B2C (business to customers) market.

Chart 5: Consumer buying behavior




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Buying behavior can significantly affect marketing activities in different

buying situations. Using specific examples of buying situations will help to

demonstrate this theory. In this case, children and adult will be chosen as two

different buying situations to examine.

Need recognition begins when people realize their needs or wants. For children,

need recognition starts when they see the attractive colorful package. That is why if

Nelsons ice cream, for instance, should be beautifully packaged; or Nelson s snacks

should be attached with cartoon characters such as Ben 10. The situation is different

when it comes to adults. They are mature and not attracted by colorful things. For them,

quality and safety are much more important. Therefore, marketing strategies toward this

group should be different. More emphasis should be put on nutrient information, expire

date or ingredients.

Once people have realized their needs, the next thing to do is to search for

products or services that satisfy the needs. Consumer information sources fall into four

groups: personal sources, commercial sources, public sources and experiential sources.

For children, normally information comes from funny, colorful and easy-to-remember

advertisements. For adults, information can come from all four sources mentioned above.

Marketing activities toward this group should be creating loyalty and satisfaction among

Needrecognition

Informationsearch

Evaluation ofalternatives

Purchasedecision

Post

purchaseevaluation


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customers (so that they introduce Nelsons to their friends) , having attractive promotion

girls (especially toward male customers), advertisement on TVs or asking some people to

try out Nelsons product (as Vietnamese people normally like to try free product).

After gathering information of the needed product, people will try to evaluate

their alternatives in order to find out what is the best for them. Children are much likely

to choose the item that is more colorful or gives him/her toys that it likes. Therefore,

spending time studying childrens psychology is essential. In contrast, adults are much

more careful when comparing choices. They even ask for help from friends. That

explains why, for adults, putting more emphasis on product quality is more important that

only concerning about the attractive package.

It is time for purchasing decision after all evaluation of alternatives. The key thing

for Nelsons in this step is to prevent ba d image from influencing its target customer.

Especially, adults are easilyaffected by others. Going to the cinema, seeing other people

buying Nelsons, they shall buy also; but hearing even one piece of negative feedback

about Nelsons will make them get rid of this brand immediately. Besides, children are

not the people who make decision whether to buy or not so it adults group shall need

more care.

Assuming that customers have made decision to choose Nelsons , post purchase

decision cannot be ignored. The quality of product and service that customers receive

tells a lotabout this. It affects the decision of whether to come back next time or not. For

keeping the customers, or winning customers loyalty, Nelsons should assure the quality

of its products, make sure the food tastes good or the staffs serve customers with smile.

These are some of the factors that bring customers back to Nelsons shops.

VII. New positioning for Nelsons Corn in Cup coming to Vietnam

For Nelsons getting into a new market, it needs appropriate positioning in order

for the business to run smoothly and effectively.

In Malaysia, prices for Nelsons product are quite cheap, about 3-5 Rm, which is

about 21,000 35,000 VND. When coming into Vietnam, it is understandable that the

price shall be higher because of some expenses such as delivery or building rental (to

store delivered goods). However, it is suggested that Nelsons should leave the

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impression of its brand in customers mind as a high quality but low price brand. When

talking about Nelsons, the customers will be satisfy because of the quality, the price, the

wide range of choices and also, the service.The market will be behavioral segmented with

three groups of customers: children, adolescences and adults. However, the key group

that would be taken care of more carefully is the group of adolescences due to some of its

feature.

First, price is very important as it is one of the main factors deciding whether

customers want to try out the new product or not. If the price is too high, people will

hesitate to buy Nelsons product. Moreover, in the market now, there are many kinds of

ice cream, beverage or snack that offer very reasonable price. For example, HAIHA-

KOTOBUKI (a familiar brand to every Vietnamese people) offer snacks with only about

5,000VND. Needless to say, people all realize the attraction coming from such price.

Another example is TrangTien ice cream. With only 20,000VND can one buyvery

delicious icecream.Vendors, who are very used to this market, offers price of about

10,00015,000 VND. Those are really competitive prices and can outweigh Nelsons at

any time if it does not set the price suitable to the market that it is in.

Besides, Vietnam is still a developing country, it is clear that Vietnam ese income

is high enough to purchase high quality and high price product regularly. That is why

setting an acceptable price will be a big advantage for Nelsons. If the problem of making

profit is not assured, there shall be a solution to this. At first, Nelsons should sell its

product with cheap price in order to attract customers. After that, when it has a certain

number of loyal customers, who know for sure that Nelsons is an ideal choice and who

are willing to introduce their friends to come to nelson s, then the company can gradually

raise the price to the level which can make up for the lossor help to earn profit in the

future.

Moreover, choosing adolescences as the targeted customers , Nelsons should

understand that these people do not have stable income (as they are still depending on

parents allowance). Selling cheap product is one of the ways to keep these customers

with the company.

Second, quality is also one thing to mention. After the price, the question here is

how to make people believe that with cheap price, they can still get high quality product.


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Among Vietnamese people, there still exists a clich that a high price will almost always

be associated with high quality and equally, low price with low quality. Popcorn at

Vincom bears quite high price but it still has many customers because of its strategic

location or discount policy in related with movies shown at that time in the cinema. For

Nelsons, the first thing is to make sure that Nelsons products can keep its original taste

and quality when entering Vietnam market and more importantly, keep its taste forever

if the company does not want to lose customers. Many food brands in Vietnam started

with very delicious food, attracting a huge amount of guests at the beginning. However,

for the time being, the quality started to drop as companies try every way to cut down

their expenses (which this report will not go into details). If Nelsons can avoid being so,

then the result will be unexpectedly successful. For them, it is not only the matter of good

products, it is the matter of attracting and keeping as much customers as possible.

Third, Nelsons variety of choices brings the strength that not many other brands

can have. As mentioned before, Nelsons kiosks would be much like a canteen for

everyone. Everything from soup to waffle, snack, beverage to ice cream is included. As

the matter of fact, it is much more interesting to sit in one place enjoying many things

than going everywhere buying one item at once. However, it does not mean that Nelsons

competitors cannot catch up with this. They have every possibility to design and sell new

kind of product. Due to that, Nelsons should not be satisfied with what it is having now,

but try hard all the time to come up with the trend, to be the market leader. For example,

candies will attract almost ever child. Students like fried corn, on the other hand while

adults like cake. IfNelsons can combine its core product with these hobbies, there will

be unbelievable success.

Finally, every company has to put lots of care on customer services. As for

Nelson in Malaysia, it is known that all staffs are well trained with the theory of

S.H.A.R.P. (which stands for smiling, honesty, alertness, action and active mind,

responsibility and respect, product knowledge and patience). It is essential to keep that

spirit here in Vietnam. The company should give thought to training employees well. In

reality, everyone shall know the power of words of mouth. Among students, this is

undoubtedly true. They are the people who spread information very quickly. For some

restaurants, the staffs do not serve well or show appropriate manner. Gradually, those


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ngay tu. Tuy nhin, cho thi gian c, cht lng bt u thnh

cc cng ty c gng mi cch ct gim chi ph ca h (bo co ny

skhng i vo chi tit). Nu Nelson c thtrnh c nh vy, sau

kt qu s l bt ng thnh cng.i vi h, n khng ch l vn

ca sn phm tt, n l vn thu ht v gi chn khch hng cngnhiu cng tt.

Th ba, nhiu s la chn ca Nelson mang li sc mnh m khng c

nhiu nhn hiu khc c th c. Nh cp trc y, Nelson ca

cc kit s c nhiu ging nh mt cng-tin cho tt c mi

ngi. Tt c mi th t canh bnh, snack, nc gii kht kem

c. Khi vn ca thc t, n l nhiu th vhn ngi mt ni

thng thc nhiu iu hn l i mua m t mn hng khp mi ni

cng mt lc. Tuy nhin, n khng c ngha rng cc i th cnh tranh

ca Nelson khng th bt kp vi iu ny. H c mi khnng thit

k v bn cc loi mi ca sn phm. Do , Nelson khng nn hi

lng vi nhng g n c, nhng c gng tt c cc thi gian n vi

xu hng, dn u thtrng. V d, bnh ko s thu ht hu nh bao

gi con. Sinh vin nh ng chin, mt khc, trong khi ngi ln nh

bnh. Nu Nelson c th kt hp sn phm ct li ca n vi nhng s

thch, c c thnh cng khng th tin c.

Cui cng, cng ty u c rt nhiu chm sc dch vkhch hng.ivi Nelson Malaysia, n c bit rng tt cnhn vin c o

to tt vi cc l thuyt ca SHARP (Vit tt ca mm ci, trch

nhim, trung thc, s tnh to, hnh ng v tm tr hot ng v s

tn trng, kin thc sn phm v kin nhn). N l iu cn thit gi

cho tinh thn Vit Nam. Cng ty cn cung cp cho cho o to lao

ng tt. Trong thc t, tt c mi ngi s bit sc mnh ca "nhng

li ca ming". Trong scc sinh vin, iu ny chc chn l ng. H


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l nhng ngi lan truyn thng tin rt nhanh chng.i vi mt s

nh hng, nhn vin khng phc v tt hoc hin th theo cch ph

hp. Dn dn, nhng ni ny s mt tt c cc khch hng ca

mnh. S hi lng vi cc dch v smang n cho khch hng tr li

ca Nelson mt ln na v mt ln na, cng vi nhiu khch hngkhc. N r rng l ddng hn nhiu c mt khch hng mang li

nhiu khch hng nhiu hn dnh nhiu n lc thu ht nhiu khch

hng khc nhau (m khng nhn c bt k "gip " t h). Tnh

hnh thm ch cn ng hn khi ni n khch hng ngi ln. H c

thu nhp n nh. H khng nhn ra bt c ai cho tin. H ln nhau,

bit iu g l tt nht cho h. Gi cc khch hng l khng th nu

nhn vin khng hin th theo cch tt. Ngoi ra, b mt i chng c

ngha l mt i cc nhm tr em (li gii thch r rng hn c da

trn phn khc th trng).

Ni chung, c rt nhiu cch khc v tr ca Nelson c th thc

hin.y chl mt gi gip ca Nelson t c mc tiu m

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CONCLUSION

Being a famous brand all over Asia, Nelsons has every advantage to invest in

such new market as Vietnam. In spite of all its reputation everywhere else, Nelsons has

not found for itself a place in Vietnamese customers mind. That is what makes it

difficult for them when trying to open outlets here in the country. However, it is difficult

but not impossible, thanks to the help of appropriate marketing strategy.

As for that, this report is written in order to propose a detailed and quite effective

marketing approach for Nelsons. In this report, micro and macro environmental factors

are presented, segmentation as well as a suitable marketing strategy is also included. The

task for Nelsons now is to carefully follow this marketing plan, along with some changes

when necessary (especially when sensing something coming up unexpectedly).

All in all, suitable marketing plan will lead the company to the stage of

developmentand flourishing.

L mtthng hiu ni ting trn ton chu , Nelson c mili thu t vothtrngmi nhVit Nam. Mc ddanh ting camnh khp mi ni khc, Nelson khngtm thy cho mnhmtni trong tm tr khch hng Vit Nam. l nhng g lmcho nkh khn cho hkhi c gng mca hng y trongnc.Tuy nhin, n l kh khn nhngkhng phi khng th,nhsgip cachin lc tip th ph hp.Nh cho rng, bo co nyc vit xut mtphng php tipth chi tit v kh hiu qu choca Nelson. Trong bo co ny, vi mv cc yu tmi trngv mc trnh by, phn oncngnhmtchin lc tip th ph hpcngc bao gm.Nhimvca Nelson ti lcn thn theo k hoch tip th ny, cng vimt sthay ikhi cn thit(cbit l khi cm nhnmt ci g ln bt

ng).Tt c trongttc,k hoch tip thph hpsdn dt cng ty giaion developmentand pht trin.

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APPENDIX

Nelsons shop and kiosks:

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Chart 3: Vietnam inflation rate

Chart 4: SWOT analysis

Chart 5: Consumer buying behavior

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Market segmentation

Needrecognition

Informationsearch

Evaluation ofalternatives

Purchasedecision

Post

purchaseevaluation


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REFERENCE

The Marketing environment

http://marketingteacher.com/lesson-store/lesson-marketing-environment.html

Market environment

http://en.wikipedia.org/wiki/Market_environment

The World Law Guide: Legislation Vietnam

http://www.lexadin.nl/wlg/legis/nofr/oeur/lxwevie.htm

Nelsons website

http://www.nelsons.com.my/index.php

Vietnam tax rate

http://www.taxrates.cc/html/vietnam-tax-rates.html

Vietnam Inflation Rate

http://www.tradingeconomics.com/vietnam/inflation-cpi

Marketing Principles course book, July 2010 edition

Marketing orientation

http://tutor2u.net/business/gcse/marketing_orientation.htm

Targeting strategy

http://www.businessdictionary.com/definition/targeting-strategy.html

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http://marketingteacher.com/lesson-store/lesson-marketing-environment.htmlhttp://marketingteacher.com/lesson-store/lesson-marketing-environment.htmlhttp://en.wikipedia.org/wiki/Market_environmenthttp://en.wikipedia.org/wiki/Market_environmenthttp://www.lexadin.nl/wlg/legis/nofr/oeur/lxwevie.htmhttp://www.lexadin.nl/wlg/legis/nofr/oeur/lxwevie.htmhttp://www.nelsons.com.my/index.phphttp://www.nelsons.com.my/index.phphttp://www.taxrates.cc/html/vietnam-tax-rates.htmlhttp://www.taxrates.cc/html/vietnam-tax-rates.htmlhttp://www.tradingeconomics.com/vietnam/inflation-cpihttp://www.tradingeconomics.com/vietnam/inflation-cpihttp://tutor2u.net/business/gcse/marketing_orientation.htmhttp://tutor2u.net/business/gcse/marketing_orientation.htmhttp://www.businessdictionary.com/definition/targeting-strategy.htmlhttp://www.businessdictionary.com/definition/targeting-strategy.htmlhttp://tutor2u.net/business/gcse/marketing_orientation.htmhttp://www.tradingeconomics.com/vietnam/inflation-cpihttp://www.taxrates.cc/html/vietnam-tax-rates.htmlhttp://www.nelsons.com.my/index.phphttp://www.lexadin.nl/wlg/legis/nofr/oeur/lxwevie.htmhttp://en.wikipedia.org/wiki/Market_environmenthttp://marketingteacher.com/lesson-store/lesson-marketing-environment.html

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