Question 1: What is the value of ABC Bakery?

How about the Bakery

industry in Viet Nam? (market, competitor, consumer trends)
a. The value of ABC Bakery:
 Size:

Increased intellectual activities require adequate daily energy supply, but they
must be quick and not time-consuming, so consumers tend to be interested in
processed products available ensuring nutrition, both convenient and hygienic.
Therefore, products such as fresh bread have the potential to grow, gradually
becoming breakfast, snack, ... for almost people (especially student and working
people).

 Growth rate:
- The economy is growing, the income is increased, so the income for people's
spending also increases.
- ABC's outsourcing market share is constantly growing. If only 10% of the
bakery market was 10 years ago, it would be 25% now.
- On average, ABC supplies its partners 30000-40000 hamburgers a day.
- ABC currently has five retail stores in Cambodia, which will soon be upgraded
to 10 stores. Starting from the 11th store, ABC will open in provinces and cities
in Cambodia instead of big cities.
- The company also exports cakes to Japan, England and Australia.
 Factors impact to:
- Positive: To be the supplier for for the world famous fast-food corporation in
HCM and Hanoi such as KFC, LOTTERIA, JOLLIBEE ...
- Negative:

+ Competitors like Paris Baguette, Tour Les Jours, BreadTalk,…

+ Halo effect.

 Value:
- Always put safety on top: food hygiene and safety, choosing sources of quality
raw materials, ...
- Good and professional service (Employees are professionally trained and
skilled to serve customers).
- Organizing scientific shops.
- Affordable price: the lowest price to attract customers but the quality is still on
the top, guaranteed or higher.
- Having a long-term orientation, always setting the top standard: the older the
brand becomes more valuable.
- Store operation.
 Trends:
- Deploy business model with coffee.
- Focus on foreign market.
b. Market:
- Domestic:
+ Fresh bakery of ABC Bakery accounts for a significant proportion of the
market and is widely consumed in Ho Chi Minh City and provinces in the East
and the South West.
+ ABC Bakery is a supplier of Hamburger, Hotdog, Pie for the world famous
fast-food corporation in HCM and Hanoi such as KFC, LOTTERIA,
JOLLIBEE ...
+ ABC Bakery also provides bread crumbs for domestic and foreign seafood
companies based in Vietnam.
- Foreign :
+ The quality of ABC Bakery's brand has been accepted by the international
market, the baguette bread products ordered by customers have been regularly
exported to Japan from 2005 to the present.
+ Moon cakes have also penetrated into Australia and the US market, many
special shipments such as ice cream cakes have entered the US market and are
distributed in Buffet restaurants. Frozen cake exports to Cambodia and expected
month
 + 9/2007, ABC Bakery exported the first shipment to the UK.
c. Competitor:

In Ho Chi Minh City, there are more than 150 fresh bakeries. This market is
increasingly fierce competition with a series of brand new fresh cakes with
unique brands and designs. In addition, new stores and new products appear
continuously to show their own style according to the chain of stores. Leading
in number is the bakery capital with a chain of more than 100 distributors and
retail stores in Ho Chi Minh City. Ranked behind are 23 ABC bakery shops,
Duc Phat bakery system has over 10 stores with coconut net cake masterpieces.
Hy Lam Mon has 8 business locations and is looking for a space to develop the
Sweet Home brand. Pham Nguyen Confectionery Joint Stock Company invests
VND 16 billion to open a system of 7 stores. Besides, there are some bakeries
that have few shops but sell quite strongly such as Dai Phat, Hue Hue, Ly
Binh, ...

d. Customer trends:
- Customers always need fast, convenient meals but ensure essential nutrition.
- Enjoying the new, beyond traditional cakes, customers enjoy fresh and eye-
catching new cakes, many different types to have many choices.
- Products must be always clean, fresh and guaranteed raw materials.
- Customers are always interested in service attitude and after sale service.
- Most of all customers are always interested in promotions, discounts, exciting
 monthly activities for loyal customers.
- Design must create newness, attractiveness, be changed frequently to suit
consumers' tastes. The packaging must be made of safe materials and
environmentally friendly.
- Good quality but reasonable price to suitable for every customers.

2. Kao Sieu Luc built marketing strategy for ABC Bakery

1. Products:
- Quality: all ABC Bakery fresh breads are made according to food safety
regulations and meet the food hygiene and safety standards of the Ministry of
Health.
- Packaging: made from eco-friendly products. Products are packaged in a
manner that is on the packaging, with the company's own logo, product name,
manufacturing date and expiration date on the front. The back has the state
components, the address of the factory, the office company address, the
telephone, the fax number.
- Design: The shape of fresh bread is frequently changed to suit the changing
needs of customers.
- Cost: current prices can be maintained by distributing products with higher
quality instead of price reduction.
- Distribution: via 2 channels: to buy directly at the chain of stores or through
retailers such as supermarkets, markets and grocery stores.With customers as
businesses, the forces will actively contact them to place orders.
2. Promotion:
- Test sample delivery: provided at schools, colleges.
- Gift collecting: children will practice a collection of cartoon character stickers
- Game: Collecting all 6 characters mentioned in the pack will be given Walt
Disney Games.
- Promotion program: to reduce the price when buying large quantities with a
reseller, depending on the speed of their sales and sales to increase and decrease
them.
- Community relations: building an online forum to share cooking suggestions,
breaking Guinness Vietnam record of the longest bread, participating in
international competitions on cake making, participating in the charity program
for children, Australia, etc.
- Sponsor: RMIT International University club, Family Secret program, 1000
years of Thang Long event, build good relationship with foreign partners.

 Growth matrix - market share:

- The main product line is fresh-packed cake, occupies a small portion in the
market and has a market growth rate that may increase in the future.
 - 75-80% market share in the hands of domestic pizza companies such as: Kinh
Do Bakery (36 stores - 17 stores in Ho Chi Minh City), ABC Bakery (28 stores
- 17 stores in Ho Chi Minh City) ... Especially ABC Bakery become the main
supplier for fast food chain chains of KFC, Jollibee, Lotteria, Metro ... and
retail for the popular customers.
- In addition, ABCBakery also catches up with the trend of pie - coffee
competition when opening Bakery - Coffee ABC, as well as cooperating with
coffee shops such as Starbucks, The Coffee Bean & TeaLeaf and other
supermarkets, convenience stores.
- The principle of continuing to approach even small and small customers in
terms of quality, product value, service style has contributed to creating a brand
for ABC Bakery, the popular sense is suitable for customers who have low
income but enjoy the quality of bread.

Question 3: How about differentiation of ABC Bakery?

- Turning competitors into partners: providing bread for fast food corporations in
the world, supplying bread to seafood companies in foreign countries.
- Ready to share recipes for many people who don't hide their jobs: build online
forums to share cooking tips.
- Principles to approach customers, whether big or small, are the same in terms of
quality, product price and service style.
- Brand positioning:

+ Everyone is responsible.

+ Cakes are always high quality.

+ Progressive and creative.

- At the end of each month, products that are favored by customers will continue
to expand production over the next month. Products that are less consumed will
be narrowed and modified to attract customers.
- Get customer feedback for changes and improvement.

Question 4: Write down your learning about ABC Bakery marketing.

- Turning competitor into partner, instead of competing, we should support each
other, cooperate to develop together.
- Focusing on building and preserving brands.
- Always keep the prestige, put the prestige first.
- Stable quality of products.
- Reasonable and stable price.
- Build a good service (regardless of big or small customer, whoever serves the
 same).
- Ensuring hygiene and safety throughout the production process.
- Compliance with time.