SALES AND MARKETING PLAN
Export marketing is something that any business must have when bringing its
products and services to the international market or to a market other than the current
market. Products will be manufactured or distributed at the company's current location
and then shipped to other markets, with other consumers anywhere in the world.
However, there is a big difference between products available to the overseas market and
products designed and manufactured specifically for the overseas market. This is the time
when export marketing can promote the indispensable strength for every export business.
However, the most difficult thing here is that the business cannot be sure whether
the market in the target country is suitable for its product, or whether the customers in
that market have a need to use the product, your service or not. This lies in cultural
differences, costs and also shipping time. Politics and policies on international trade also
contribute to a barrier to marketing communication between customers and suppliers.
The Greenly’s export marketing plan was created to contribute to the development of
a strategy to ensure that products are always available and attract customers' attention to
their products, which in turn translates into revenue. The Greenly’s export marketing plan
and the normal marketing plan have an extremely big difference that is the location
towards implementation. The market research on the current market needs to be more
optimized and expanded internationally.
Determining the location and country that Greenly is exporting to
This is the first step, also the most obvious step in the process of developing an export
marketing plan. However, it is the simplest step. Your business needs to look to different
continents first. One thing that everyone knows is the difference in culture and buying
behavior of customers, but if you look at it more broadly, in each continent, countries will
have more similarities.
Research on natural issues, natural conditions in Spain
This is one of the things that lets you know if your product really works here or not.
Basic information such as weather conditions, environmental conditions, land or even
traffic conditions among other factors will be one of the factors that make your product or
service. successful export here.
The economic condition of the commune
One of the extremely important elements of developing an export marketing plan is
the study of socio-economic conditions in the target country. Products and services your
business provides and distributes need to be really suitable for demographics and
economic conditions to be able to develop and be successful in new markets. Therefore,
this is something that needs to be studied carefully.
Equally important is the customer segment you intend to target. People with low
income, middle income or high income will have different expectations, for example
price, product quality.
Competitive environment
In some countries, the competitive environment is often not equal, so it is difficult to
penetrate the market and succeed. Therefore, prioritizing choosing countries with a more
equal competitive environment, the government promoting business investment will also
be an advantage for you. These countries are often countries with a long history of
international trade, up to hundreds of years, that's why almost every item appears on the
market.
5.1. Pricing Strategy
Defining and setting the selling price of products
Pricing is a combination of domestic cost calculations and costs incurred in delivering
and supporting pricing activities, depending on the company's position in the market, the
uniqueness of the products and the number of similar products of competitors currently
operating in the market.
For a new export company like Greenly, we apply the most common method of
setting prices, which is: matching our company's prices with those of our competitors
applicable or based on the retail price of a comparable product. That means we need to
find out the exact price of a product that is similar to ours, then work again with the
distribution system to calculate the price we need to bring to market to be able to cover
the cost.
Cost-based pricing is a method in which Greenly uses the cost of products as the basis
for determining its final selling price. Cost-based pricing is calculated by taking the
product cost and adding a markup to determine the final price.
First, to use cost-based pricing, the company calculates the costs to create products.
These costs could include:
Manufacturing
Labeling
Shipping
Other cost
Second, the company adds the markup percentage or dollar amount to the product cost
to determine the selling price.
Straw
Cost: 230 VND
Selling Price: 330 VND
Profit: 100 VND
Markup Percentage Calculation
(Price - Cost) / Cost = (330 – 230) / 230 = 43.47%
=>The Straw is being markup up 43.47% from the cost
Big Fork
Cost: 2,000 VND
Selling Price: 2,100 VND
Profit: 1,000 VND
Markup Percentage Calculation
(Price - Cost) / Cost = (2,100 – 2,000) / 2,000 = 5%
=>The Big Fork is being markup up 5% from the cost
Small fork
Cost: 1.500 VND
Selling Price: 1.600 VND
Profit: 100 VND
Markup Percentage Calculation
(Price - Cost) / Cost = (1.600 – 1.500) / 1.500 = 6,6%
=>The Small Fork is being markup up 5% from the cost
Depper
Cost: 2,000 VND
Selling Price: 2,100 VND
Profit: 100 VND
Markup Percentage Calculation
(Price - Cost) / Cost = (2,100 – 2,000) / 2,000 = 5%
=>The Deeper is being markup up 5% from the cost
Small spoon
Cost: 1,500 VND
Selling Price: 1,600 VND
Profit: 100 VND
Markup Percentage Calculation
(Price - Cost) / Cost = (1,600 – 1,500) / 1,500 = 6.67%
=>The Small Spoon is being markup up 6.67% from the cost
Big plate
Cost: 3,500 VND
Selling Price: 3,600 VND
Profit: 100 VND
Markup Percentage Calculation
(Price - Cost) / Cost = (3,600 – 3,500) / 3,500 = 2.88%
=>The Big Plate is being markup up 2.88% from the cost
Small plate
Cost: 3,000 VND
Selling Price: 3,100 VND
Profit: 100 VND
Markup Percentage Calculation
(Price - Cost) / Cost = (3,100 – 3,000) / 3,000 = 3.33%
=>The Small Plate is being markup up 3.33% from the cost
Bowl
Cost: 3,500 VND
Selling Price: 3,600 VND
Profit: 100 VND
Markup Percentage Calculation
(Price - Cost) / Cost = (3,600 – 3,500) / 3,500 = 2.88%
=>The Bowl is being markup up 2.88% from the cost
Small bowl
Cost: 3.000 VND
Selling Price: 3,100 VND
Profit: 100 VND
Markup Percentage Calculation
(Price - Cost) / Cost = (3,100 – 3,000) / 3,000 = 3.33%
=>The Small Bowl is being markup up 3.33% from the cost
To sum up: The markup is higher, the more sale that the company will have.
Market Penetration
At the stage where Greenly launches low-priced products to gain market share. In the
begining, this strategy helps provide unique concept or attractiveness of products which
can be successful not only in the marketplace but also gaining market share in Spain.
Greenly wants to build a loyal customer base who will continue to buy as the company
raises prices. By entering the market at a low price, Greenly might deter competitors from
entering during the growth phase of the product life cycle, although initial acceptable
profit margins are low.
5.2. Sales Strategy
Plan and objectives for each year
Note: Currency has been converted to VND
Year 1:
The number of products sold: 120,000,000 units including 24,000,000 straws and
12,000,000 units for each remaining products
Achieving the revenue: 257,520,000,000 VND
Focus on directly exporting to international distributor.
Year 2:
The number of products sold: 120,000,000 units including 24,000,000 straws and
12,000,000 units for each remaining products
The revenue is maintained at: 257,520,000,000 VND
Focus on directly exporting to international distributor in Spain
Create account in e-commerce channel: Amazon
Year 3:
The number of products sold: 141,000,000 units of all the products
The revenue increases 14.9%, achieving the revenue: 296,100,000,000 VND
Focus exporting to international distributor in Spain
Beside, selling on channels: Amazon
Year 4:
The number of products sold: 147,000,000 units of all the products
The revenue increases 11%, achieving the revenue: 330,900,000,000 VND
Keep on exporting to international distributor in Spain.
Beside, selling on channels: Amazon
Coperate with Co.op Mart Vietnam to sell products at their stores
Year 5:
The number of products sold: 153,000,000 units of all the products
The revenue increases 8.5%, achieving the revenue: 359,100,000,000 VND
Keep on exporting to international distributor in Spain
Expanding the market to France
Beside, selling on channels: Amazon
Coperate with Co.op Mart Vietnam to sell products at their stores.
Product 2022 2023 2024 2025 2026
Straws
Quantity 24,000,000 24,000,000 30,000,000 30,000,000 30,000,000
Price 330 330 350 350 360
Revenue
Straws 7,920,000,000.0 7,920,000,000.0 10,500,000,000.0 10,500,000,000.0 10,800,000,000.0
Big Fork
Quantity 12,000,000 12,000,000 18,000,000 18,000,000 18,000,000
Price 2,100 2,100 2,200 2,200 2,200
Revenue
Big Fork 25,200,000,000.0 25,200,000,000.0 39,600,000,000.0 39,600,000,000.0 39,600,000,000.0
Small
Fork
Quantity 12,000,000 12,000,000 12,000,000 12,000,000 12,000,000
Price 1,600 1,600 1,600 1,800 1,900
Revenue
Small
Fork 19,200,000,000.0 19,200,000,000.0 19,200,000,000.0 21,600,000,000.0 22,800,000,000.0
Dipper
Quantity 12,000,000 12,000,000 15,000,000 15,000,000 15,000,000
Price 2,100 2,100 2,200 2,400 2,500
Revenue
Dipper 25,200,000,000.0 25,200,000,000.0 33,000,000,000.0 36,000,000,000.0 37,500,000,000.0
Small
spoon
Quantity 12,000,000 12,000,000 18,000,000 18,000,000 18,000,000
Price 1,600 1,600 1,700 1,800 1,800
Revenue
Small
spoon 19,200,000,000.0 19,200,000,000.0 30,600,000,000.0 32,400,000,000.0 32,400,000,000.0
Big Plate
Quantity 12,000,000 12,000,000 12,000,000 12,000,000 15,000,000
Price 3,600 3,600 3,600 3,700 3,800
Revenue
Big Plate 43,200,000,000.0 43,200,000,000.0 43,200,000,000.0 44,400,000,000.0 57,000,000,000.0
Small
Plate
Quantity 12,000,000 12,000,000 12,000,000 15,000,000 15,000,000
Price 3,100 3,100 3,200 3,400 3,400
Revenue
Small
Plate 37,200,000,000.0 37,200,000,000.0 38,400,000,000.0 51,000,000,000.0 51,000,000,000.0
Bowl
Quantity 12,000,000 12,000,000 12,000,000 12,000,000 15,000,000
Price 3,600 3,600 3,600 3,700 3,800
Revenue
Bowl 43,200,000,000.0 43,200,000,000.0 43,200,000,000.0 44,400,000,000.0 57,000,000,000.0
Small
Bowl
Quantity 12,000,000 12,000,000 12,000,000 15,000,000 15,000,000
Price 3,100 3,100 3,200 3,400 3,400
Revenue
Small
Bowl 37,200,000,000.0 37,200,000,000.0 38,400,000,000.0 51,000,000,000.0 51,000,000,000.0
TOTAL
NET
SALES 257,520,000,000.0 257,520,000,000.0 296,100,000,000.0 330,900,000,000.0 359,100,000,000.0
5.3. Marketing Strategy
Product distribution strategy (with International agents and distributors)
Companies or individuals that conduct business on behalf of their home country in
some other country are called international agents or distributors. These agents can work
with multiple businesses at the same time. Therefore, their level of commitment and
effort towards achieving their goals is often very high.
International distributors are similar to international agents, except that distributors
have ownership rights to products and services while agents do not.
Distribution is the activities involved in organizing, directing and transporting
goods and services from producer to consumer, in order to achieve maximum efficiency
with minimum costs. The path and mode of movement of products from production to
consumption form the distribution channel of the product, including intermediaries of
commercial nature.
A major difference between distribution channels is their length. A distribution
channel has only a few intermediaries or only one if the producer sells directly to the
consumer or end user of the product. A long distribution channel includes many
intermediaries. The shorter distribution channels are likely to be more effective or less
expensive than the longer distribution channels.
In the international distribution environment in general or export in particular, the
characteristics of this strategy are derived from: product characteristics; market
conditions; geographical distance; exporter's capabilities.
In order to choose a complete export distribution strategy, first of all, it is
necessary to determine the consumption goals according to the needs and desires of the
target customers and the marketing efforts of enterprises, in which selecting Export
intermediaries are one of the most important. There are different forms of distribution
intermediaries, namely: distribution through intermediaries is used with exporters with
small scale, limited export experience, not much understanding of the market; direct
distribution when the exporter has a large scale, is professional, accumulated experience,
and has established many relationships with foreign countries.
Product characteristics: the type of product to be marketed plays a very important
role in determining the distribution channel in terms of the physical and chemical
characteristics of the product and in terms of consumer gender.
According to the results, the supply of disposable goods in Spain is not high,
however, the demand of the people is extremely high with strict requirements on product
quality. The characteristics of Greenly products completely meet the above requirements
with the product material is completely made from rice and rice bran, using natural dyes
to create color, resistance to both hot and cold, in addition, the using time of each product
is much higher than similar products made by paper itself.
Target market conditions: Due to the huge differences in culture, society,
customs, and consumption habits in the markets, there are products that are successful in
this country but not successful in other countries. This requires the distributor to
investigate, choose the distribution ability depending on the context of the target market,
in each different market must have different distribution systems.
Currently, the European market, especially Spain, has stopped importing eating
utensils made from plastic to maximize environmental protection. This has created the
trend and mindset of the Spaniards about using products made from natural ingredients.
In addition, Spain has issued a policy of 0% import tax for food and beverage utensils.
Seeing this, Greenly tooks the opportunity to become one of the distributors of disposable
eating utensils in the Spanish market.
In cooperation with the Spanish distributor- Ibereco Co., we can focus on product
quality management to fully match the requirements of our partners and easily survey the
market as well as implement suitable promotional strategies through them.
Geographic distance factor: Affects the choice of distribution system, the farther
the distance between the exporter and the importer, the more difficult it is to collect and
process information., which requires in business decisions to be quick, accurate and
timely.
Issues related to the transportation of goods, responsibilities and obligations of the
parties will all be clearly stated in the international commercial contract. We will discuss
matters directly with each other through our own connected means of communication to
ensure the safety of the export process.
Linkage: The ability to link one business with another. This association is based
on mutual understanding.
The ability of the exporter: This is a subjective factor of the exporters. It
determines the distribution system. If the environmental factors, geographical distance
are favorable, but the financial capacity, personnel organization, scientific and technical
level, and competitiveness of exporters are weak, the choice of channel is not favorable
distribution will face many obstacles and difficulties.
Depending on the time, Greenly will have different short-term and long-term
development plans. In addition to the product-related factors mentioned above, the
company needs to pay attention to human resource management. Each department must
grasp the general and specific situation of the company, create a good working
relationship and make improvements in the strategies to promote products, increase
revenue and expand the market.
Mixed promotion strategy
Advertising media: Facebook, Website, Shopee
In addition to cooperating with foreign distributors, Greenly itself needs to have its
own marketing strategies to create a position in the eyes of customers. The company uses
the most popular advertising support means to introduce products in the most official and
specific way to domestic and foreign consumers. This is aimed at affirming the
company's brand, on the other hand, paving the way for the development strategy of
domestic operations in the coming years.
International trade fairs and exhibitions
Greenly will implement the strategy of directly promoting products to customers
through international trade fairs or cultural exhibitions in Spain. Here we will display the
products being distributed in this market for the purpose of introducing products, helping
customers to access products by experiencing and feeling the quality of products directly
at the counter. This not only help Greenly have a real survey on customer reviews for the
products but also create the attraction and trust of customers for the company's products
when seeing them being widely sold in their country.