This is information about Kinh Do Bakery, Marketing Plan For 2014-2015

1. July 14, 2014
Ho Chi Minh, Vietnam

2. EXECUTIVE SUMMARY
Kinh Do bakery is one of the most famous company about product cookies at
Vietnam. Company has a lot of kinds of products like snack, plan, noodles, oil, etc. in
1993, kinh do was found by Tran Kim Thanh with net income 14 billion VDN and
6000 labor. Now, kinh do company is developing many stores at HCM city and spread
out 64 provinces with 150 distributors. 40.000 stores and export 20 countries in the
world like American, Singapore, Taiwan, etc. kinh do company mobilizes more
stockholders to maintain and expand market at each provinces. Kinh do bakery was
set up with the aim bring the best quality to customers, make sure health and help
customers enjoy.
And then, we will present more details about a lot of problems of Kinh do company.
(Taken charge by Thu Thao)
PROBLEMS
Binary with the strategies and measures of 4P (product, pricing, place and promotion)
The company began participating in the business sectors with each sector very large
scale the company to reorganize business operations of confectionary segment
oriented management separation between the plates together to ensure monitoring and
evaluating the performance of each segment is best.
KDC reorganization is collecting same items together. Specifically:
Transfer of all assets, interests, rights and obligations related to the confectionery
business from KDC to Binh Duong Kinh Do Corporation (BKD).
BKD will issue shares to increase charter capital to accept the transfer of all assets,
interests, rights and obligations of residential investment in value NKD. KDC will
contribute capital to BKD by transferring operations of confectionary business and
residential investment in value NKD for BKD.
After the restructuring, the KDC will have the specialized industry including:
Confectionery, Dairy Cream, Instant noodles, cooking oil, coffee, Retail.
(Taken charge by Thu Thao)

3. OBJECTIVES
2013, net revenue KDC is 4,561 billion. Profit after tax 493 billion. The dividend is
20% / par value in cash - equivalent KDC spent 378.8 billion as dividends.
2014, KDC plans to 5.150 billion in net revenue, up 12.9%. Profit before tax 660
billion, up 6.6%. Plans 20% dividend / par value in cash
Recently completed new capital issued 40 million shares to strategic investors, earning
more than 1,700 billion. This activity is located in the capital calling plans to develop
new industry leading company set out from the end of 2013.
To implement this strategy the next 10 years, KDC cooperation link to Vewong
Saigon with famous brand MSG instant noodles and A-One. KDC does not disclose
specific figures on estimated sales from wheat fields to bring the package, but
executives revealed KDC expects revenue from instant noodles will equal the current
business confectionary KDC.
KDC will also become a strategic shareholder of the Company Vocarimex cooking oil
- a business is owned and managed by the Ministry of Industry and Trade, the current
KDC has signed initial cooperation with Vocarimex Company.
KDC involved in the coffee sector through partnerships with Phin Deli Coffee
Company. Expect this collaboration, two sides can better exploit the domestic market,
and exports coffee to the United States.
(Taken charge by Thu Thao)
Purpose of SWOT :
The purpose of making SWOT is to analyze strength , weakness as well as
opportunities to prepare suitable marketing strategy for Kinh Đô Corporation in the
long run .
The micro environment :
STRENGTHS
 Kinh Đô Corporation is well known for its professional leaders in the risky
world of stocks that requires good vision and strategic planning .
 Moreover, the company has overcome the economic crisis in the past five
years which proved that the leaders are able to forecast the risk and create

4. appropriate strategic planning as well as exit strategy for the company to
ensure the sustainable development .
 Modern production line was invested . Production technology was
overestimated in compared to the peers . Specifically:
- The Europe production line for Crackers worth 2 million USD with a capacity
of 20 tons / day was put into production in 2000 .
- The Denmark production line for Cookie worth 2 million USD with a capacity
of 10 tons / day was put into production in 1996.
 The huge sale department was trained by the company . Kinh Đô Corporation
also implements new policies to main human resources and attract talent .
Besides , the company builds up human resource management team to keep up
with the growth and expansion of the company in the future .
WEAKNESSES
 Kinh Đô Corporation are focusing on business sector like financial investment ,
real estate , stocks which affects confectionary business .
 A global development requires high qualified human resources .
 A family business will prevent the promotion of good workers .
The macro environment :
OPPORTUNITIES
 Trend in international economic integration and export promotion policies .
 Science and technology increases enables developers to create application of
modern technology in order to meet the criteriaof the domestic and export
market .
 The increasing in income represents for a potential domestic market .
 The export market has great potential as trade barriers (tariff ) are abolished .
 The local competitors are small and weak .
THREATS
 Competitors appear more and more when Vietnam joined World Trade
Organization
 Intensity of competition will be higher .
 Substitute products appear .
 The export market gets more difficult due to high standard of food safety .

5.  Brain drain ( Talent works for international companies )
(Taken charge by Quynh Mai)
COMPETITIVE ANALYSIS
Kinh Đô Bibica
ABC
(Asia Bakery &
Confectionery)
Leaders
1. Tran Kim Thanh:
CEO, Chairman
of the Board.
2. Tran Le Nguyen:
Vice Chairman,
General Manager.
3. Vuong Ngoc
Xiem, Vương
Buu Linh: Vice
President.
1. Jung Woo Lee:
Chairman of the
Board
2. Truong Phu
Chien: Vice
Chairman,
General Manager
3. Phan Van Thien-
Nguyen Quoc
Hoang: Vice
President
1. Kao Sieu Luc:
Chairman of the
board, CEO
Headquarter
Thu Duc District, Ho
Chi Minh city
Tan Binh District,
Ho Chi Minh city
Binh Tan District,
Ho Chi Minh city
Revenue
4600 Billions:
 Before tax: 612
billions
 After tax: 500
billions
1052.8 Biillions:
 Before tax: 57.58
billions
 After tax: 44.94
billions
Type of company Joint-stock company Joint-stock company Family company
Strengths
 High product
quality
 Well trained staff
 Popular leaders
 Strong
brand/Well
known
 Price
segmentation
(suitable to all
 Consumer gained
trust
 Vietnam honor of
high quality
1997-2006
 One of 100
Vietnam
strongest brands
 The Company's
products are sold
 High product
quality
 Well known
brand
 Consumer gained
trust
 Product price
target to medium-
high class
cunsumer

6. people)
 Big market
 High technology
primarily in
domestic market
 Revenue from
domestic
consumption
accounts for 96%
- 97% of total
company revenue
 Sales in the
Mekong Delta, 42
distributors in the
Southeast region,
23 distributors in
Central Region
and 30
distributors in
Northern areas
 Production from
exports accounted
for only 3% - 4%
of total revenue
 The majority of
products are malt
products.
 108 distributors,
including 13
distributors have
been sold
company’s
products all over
the country
 More than 400
types of cakes
Weakness
 Family business
style, talent
limitted
 Lack of new,
dynamic leaders
 Focus on business
besides
confectionary
sach as real
estate, stock, and
bond
 Confectionaries
are not
necessities, not
cater to the
essential needs of
human beings,
and there are
many other
products to
replace. Thus,
reducing the
purchasing power
will lead to lower
impacts of
company's
 Talent limitted
 Lack of new,
dynamic leaders
 Not joint stock

7. revenue
 Exchange rate
fluctuations lead
to changes in
input costs and
impacts on the
company
Operating Model Retailer, Bakery Retailer
Retailer, Bakery,
Workshop
Price Mechanism
High, Price
competition
Medium-high, Price
competition
Medium, Price
competition
Marketing
 Gather feedback
through marketers
and distributions,
 Through
professional
consulting
companies to
conduct surveys-
market demand
 Media
 Etc.
 Gather feedback
through
marketers and
distributions
 Media
 Tasting products
 Etc.
 Media
 Gather feedback
direct from
customers
 Etc.
Product Sources
 Domestic
supplies
 Bidding type
 Binh Dong flour
company
 Vinamilk
 Etc.
 Domestic
supplies
 Fixed contract
 Bien Hoa sugar
company
 Etc.
 Domestic
supplies
Developing/Reduce
Scale
Developing
Developing-Internal
contradiction with
Lottle
Developing
(Taken charge by Trung Tin)
BUYERS/CUSTOMERS
A. BUYER’S FEEDBACK:

8.  Data of this table based on the opinions of 68 customers when asked about Kinh
Do.
Table: Assessment of customers about Kinh Do
Source: http://luanvan.net.vn/luan-van/de-tai-danh-gia-cua-khach-hang-ve-he-thong-
cua-hang-kinh-do-bakery-tai-thi-truong-ha-noi-8911/
 Data of table based on 49 answers of customers when asked “which is the most
delicious brand’s birth cake in Ho Chi Minh”.
Assessment
Totally agree Agree No opinion Disagree Totally disagree
Number
of
people
% Number
of
people
% Number
of
people
% Number
of
people
% Number
of
people
%
Reasonable
price
2 2.9 39 57.4 11 16.2 16 23.5 0 0
Good quality 16 23.5 44 64.7 6 8.8 2 3 0 0
Eye-catching
colors
2 3 39 57.4 24 35.3 2 3 1 1.3
Very fragrant
smell
3 4.4 38 55.9 26 38.4 1 1.3 0 0
Diverse products 3 4.4 46 67.6 17 25 2 3 0 0
Want to eat once
again
7 10.3 23 33.8 29 42.7 4 5,9 5 7.3

9. Sources:https://vn.answers.yahoo.com/question/index?qid=20090428104431AA5KDv
o
http://vozforums.com/showthread.php?t=355644
(Taken charge by Khanh Ngoc)
B. CUSTOMER SEGMENTATION:
Customer segment of Kinh Do was constituted by North Kinh Do Food Joint Stock
Company (NKD) and Kinh Do corporation (KDC). Kinh Do’s customers are quite
diverse, range from popular customers to premier customers.
1. NKD’s customer segmentation:
Products
Segment
Children Teenagers Workers Entrepreneurs/
organizations
Privates
Snack   
Mooncake  
2. KDC’s customer segmentation:
4
1
5
8
5
26
0
5
10
15
20
25
30
KINH DO DUC PHAT HY LAM
MON
BRODARD GIVRAL OTHERS
NUMBER OF VOTES FOR THE MOST DELICIOUS BRANDS' BIRTH CAKE IN HCMC

10. Products
Segment
Children Teenagers Workers Entrepreneurs/
organizations
Privates
Cracker  
3. Other Kinh Do products’ customer segmentation:
4. Within 68 people who have bought Kinh Do products, female accounted for
75% who aged from 18 to 35 and income above 4 million VND per month.
(Taken charge by Khanh Ngoc)
ALTERNATIVE EVALUATION INCLUDING CRITERIA
 Alternative 1 for Product:
From information of Product, candy product line accounted for 2% revenue (the
lowest revenue). If the revenue still remain the same in 2014, the company should stop
running that product line.Kinh Do should sell all product line systems related to candy
to create new investment. This investment will invest in online selling. As is known,
online selling is a trend in modern life. Internet takes much time of people every day.
Considering the top bakery companies at the present, no companies have online
Products
Segment
Children Dieters/Diabetics Workers Entrepreneurs/
organizations
Privates All
ages
Cream
desserts
(Wel, Wel
yo kidz)

Biscuits
(Cosy)

Biscuits
(Yelo)


11. selling service. If Kinh Do invests in that service, it can be an important turning point
of Kinh Do. Kinh Do not only takes the first advantage of pioneer but also could gain
potential positive outcomes from that investment; for example: push sales, make
customers feel more convenient, make a big hit in bakery field, gain more revenue if
that service work etc. The company should keep candy workers who are young and be
able to access the internet and then training them to become online administrators. The
remaining workers will be delivery people. However, workers who are nearly retired
or have poor performance Kinh Do cannot keep them. Instead, the company will
compensate for them by give them amount of satisfied salary.
 Alternative 2 for Promotion:
From the information that within 68 people who have bought Kinh Do products,
female accounted for 75% who aged from 18 to 35 and income above 4 million
Vietnam dong/month, we can make assumption that young female is the major
customer. If Kinh Do invites famous celebrities in TV commercial, it is a good idea
however the cost for payment is extremely high. Thanks to young female customer as
we assume, the company can invite hot vloggersor comedy groupssuch as Jvevermind,
Toanshinoda, Huyme, Pho, Damtv, BB&BG etc. to make TV commercial. They are
very popular in social network and have large fandom, especially netizens (online
users). The cost to invite them is much cheaper than celebrities such as actors, singer
etc. In addition, effects it brings are very huge. If Kinh Do can run that project
combined with online selling services, it seems to be possible for the company to gain
much more revenue and new customers. Besides, it also might maintain the loyal
customers.
(Taken charge by Khanh Ngoc)
PRODUCT
By the name of “The King of confectionery”, Kinh Do has introduced many product
lines to serve the diverse needs of Vietnamese consumers with the best quality.
Two of the products made the reputation of Kinh Do are the two brands: COSY and
exclusive mooncakes product line.
For the COSY product line, it has many choices namely COSY Marie Biscuits, COSY
Cream Sandwich Biscuits, COSY Coconut Butter Biscuits, etc. They are very crisp
cakes, soft and sweet taste to satisfy a large number of consumers in Ho Chi Minh in
particular and Vietnam in general.

12. The mooncake product line also is a typical and indispensable product on every Mid-
Autumn Festival. There is no denying the fact that not only quality products, but also
nice, luxurious and subtle packaging, Kinh Do’s mooncakes are always one of the top
choices of consumers confidence. Indeed, according to the report of Kinh Do, “in
2011, mooncakes brought a turnover of 650 billion VND, increased by 743 billion
VND in 2012, respectively accounted for 15% and 17% yearly turnover. In 2013,
according to estimate of the HSC, the vast sales of mooncakes reached at 800 billion
VND up 7.7%.” Apparently, Kinh Do has brought the product line of compassion,
integral and meaningful gifts to families, friendship and partners.
It can be said that with every kind of products, Kinh Do is non-stop creativity in tasty,
nutritious ingredients and design that aims to be suitable for all Vietnamese
consumers.
Besides these advantages, Kinh Do still have much disadvantages should be changed
as follows. Packaging should be replaced entirely with paper bags instead of plastic
bags. This not only protects the environment but create sympathy for shoppers as well.
For shaping the cakes, Kinh Do should also be considered, instead of using round,
square, rectangular or simple flowers in shape of the cakes, they need to substitute it
for animal crackers or more unique shapes to attract more consumers’ attention. The
mooncakes should also be more creative in making more novel products than before.
Another article must be improved that is candy. According to Kinh Do’s report,
“candy product line always occupied the lowest revenue (2%) in 2012.” It is essential
for Kinh Do to create a variety in candies, no longer are traditional round chocolate
candies as now.
PRICING
Developing and managing the right pricing strategy is a vital condition to ensure
business operations are highly effective. As far as I am concerned, pricing strategy
should be conducted the following 3 criterions: time- based pricing, bundle pricing
and personalized pricing.
1st. Time-based pricing:
As mentioned above, mooncake is a typical product line of Kinh Do, and an
indispensable product in every Mid-Autumn Festival season. Time before and
between season are considered a peak period for both sellers and buyers. From 3 years
onwards, because more and more demand for donating, the price should slightly
increase, which is totally reasonable. Nevertheless, after this period, reducing costs is

13. a critical thing. To do this for another distinctive products on Father’s Day, Mother’s
Day, Valentine’s Day, Women’s Day, etc. similar to mooncake product line.
2nd. Bundle pricing:
Kinh do should restrict cut the price directly in promotion programs because it can
lead customers to negative sentiments when the price rises again. Instead, making
product packs from different cakes with attractive prices, or carrying out the strategy
“Buy 2 get 3”, “Buy 2 get 1“ in order to stimulate purchasing power and increase
revenue. This project should be applied to all products.
3rd. Personalized pricing:
Kinh Do must be more creative in shaping of birth cakes, should not only used the
samples in the catalog. Allowing customers to print their images onto the birth cakes
or following the customers’ requirements. The flavor also needs to be replaced with
more diverse savors like corn, mango or green tea, and should substitute entire
traditional sponge cakes for ice-creams. Obviously, depending upon the season and
the level of difficulty, or be easy and much, or less customers’ requests, the price will
be high or low.
PLACE
Kinh Do’s products should be sold at almost convenient locations of districts in
HCMC. A nice view on a popular road and near school, dormitory, residential area,
even places attracts many tourists like stations or airports are a great advantage to
hope for bringing a large number of potential customers to store. Besides, products
should also need to sell online, in this way, customers simply go to the website, click
on the product purchased and complete contact information, will be immediately
referredto staff to confirm orders. To do this, Kinh Do must design an informative
and lively website with full of all the products, prices and the list for ordering. Going
into details, on webstie, Facebook; Kinh Do needs to organize and maintain events,
mini games with the prizes are Kinh Do’s products for winners. Moreover, to
continuously update products’ information, 30-seconds commercial or promotional
programs on the website, Facebook, Twitter, Youtube, and blog that is a crucial
mission for Kinh Do. Sms / email marketing for consumers when having promotional
programs as well as a good way to caring for customers. Kinh Do also needs to
introduce products in supermarkets (markets) 3 times per month, and make sure that
PGs always help shoppers to choose the appropriate products. Displaying eye-
catching products and advertising near the counters, or at gate of supermarkets
(markets) and allowing consumers to sample. This leads to stimulate purchasing

14. power, and at once, the brand will be widely promoted thanks to the customers who
tried the product and narrate their relatives or friends. In addition, wholesale
distribution is also one of important issues, in particular, on holidays, or meetings,
customers demand a large number of cakes, they should pre-order for store. More
importantly, in the long run, Kinh Do needs to concentrate on researching a strategy to
expand distribution, exporting the products to foreign markets rather than just the
stores in Viet Nam.
PROMOTION
Promotion is an instrumental factor for any corporation to create excitement for
customers, to assert the quality and unique flavor of the product. Additionally, the
purpose of promotion is to let more customers know and maintain brand and stores.
It can be said that Kinh Do has done quite good in marketing of products on channels
like television, TV commercials, newspapers, websites, Facebook; however,
everything was sill misty. It is necessary for Kinh Do to intensify more their
marketing strategies. There are a wide range forms of advertising should be
implemented.
Firstly, nowadays, a large number of people who use television and internet that is a
vital facet to help owners focus on creating video clip 30-secondcommercial. One
distinctive advertisement’s idea together with celebrities (without any scandals) would
make a strong impression on viewers (customers).
Secondly, Kinh Do should keep up strategic discount, promotion on holidays. When
buying in bulk, consumers or companies will receive a 3%-5% discount (the more the
customers buy, the more reduction they get) or free gifts from Kinh Do.
Thirdly, a plan of accumulating points and membership cards should be conducted. Its
purpose is to build customer loyalty to the brand. More specifically, basing on this
strategy, each time customers buy cakes at the store with the value from 80.000VND,
they will collect 1 point. Moreover, gathering 15 points, 30 points and 45 points,
customers will get 5% discount and Silver card, 10% discount and Gold card, 15%
discount and Diamond card respectively.
Fourthly, Kinh Do should also propose practical programs for community such as
giving candidates cakes or breads on university entrance examination seasons,
financing charities fund and television programs or campaigns help the poor and
underprivileged children, families. This is a fully-humane plan with the aim of
creating a great consumers’ sympathy for Kinh Do’s brand.

15. Finally, offering products for sale with preferential prices and good services to
boarding-schools, companies, conferences or events is a task worth doing due to its
large and stable source of profits will brings to store.
(Taken charge by Ngoc Quy)
REFERENCES
http://doc.edu.vn/tai-lieu/de-tai-xay-dung-chien-luoc-cho-cong-ty-kinh-do-giai-doan-
2010-2015-18508/
http://www.kinhdo.vn/#/vn/nhan-hang/than-tinh-ngay-le
http://luanvan.net.vn/luan-van/de-tai-danh-gia-cua-khach-hang-ve-he-thong-cua-hang-
kinh-do-bakery-tai-thi-truong-ha-noi-8911/
http://gafin.vn/2013100205292032p0c36/kinh-do-lai-200-ty-dong-voi-banh-trung-
thu.htm
http://123doc.vn/document/851080-phan-tich-swot-kinh-do.htm
http://www.misa.com.vn/tabid/91/newsid/11475/Phan-Tich-SWOT-trong-kinh-
doanh.aspx
http://www.stoxplus.com/download.asp?id=2151
http://luanvanbaocao.net/tai-lieu/31645-chien-luoc-marketing-cho-banh-trung-thu-
kinh-do-docx.html
http://kinhdo.vn/
http://m.gafin.vn/20140630020537519p0c36/dhcd-kinh-do-xac-dinh-dau-tu-vao-cac-
nganh-giup-kdc-dat-vi-tri-top-3-tro-len.htm
http://kinhdoanh.vnexpress.net/tin-tuc/doanh-nghiep/kinh-do-se-chuyen-het-mang-
banh-keo-cho-cong-ty-con-3008166.html
http://luanvan.net.vn/luan-van/de-tai-danh-gia-cua-khach-hang-ve-he-thong-cua-hang-
kinh-do-bakery-tai-thi-truong-%20%20ha-noi-8911/

16. http://gafin.vn/2013100205292032p0c36/kinh-do-lai-200-ty-dong-voi-banh-trung-
thu.htm
http://123doc.vn/document/851080-phan-tich-swot-kinh-do.htm
http://www.misa.com.vn/tabid/91/newsid/11475/Phan-Tich-SWOT-trong-kinh-
doanh.aspx
http://www.stoxplus.com/download.asp?id=2151
http://luanvanbaocao.net/tai-lieu/31645-chien-luoc-marketing-cho-banh-trung-thu-
kinh-do-docx.html
NOTES
Members take charge parts as follows:
1. Trương Thị Thu Thảo (1258072)
-Executive Summary
-Problems/Objectives
2. Nguyễn Thị Quỳnh Mai
-SWOT (Macro-Environment & Micro-Environment)
3. Triệu Trung Tín (1258079)
-Competitive Analysis
4. Nguyễn Thái Khánh Ngọc (1258041)
-Buyers/Customers
- Alternative Evaluation Including Criteria
5. Trần Thị Ngọc Quý (1258061)
- 4P (Product, Pricing, Place & Promotion)
- Format all typescript