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Table of Contents
Cover Page……………………………………………………………………………………......1
Table of contents………………………………………………………………………………....2
Phase 1………………………………………………………….…………………………………3
I. Vietnam Environmental Scanning.…………………………………………......3
II. Positioning Strategy for Entering the Vietnam Market...………………….....4
Phase 2 ………………………………………...………………………………………………….5
I. Vietnam Market Entry Plan for Caribbean Breeze……...……………………5
i. Market Entry Objectives…………………………………………..5
ii. Tactical Programs & Strategies……………………………….......6
a. Product………………………………………………….....6
b. Price……………………………………………………….8
c. Promotion…………………………………………………9
d. Distribution……………………………………………....10
Work Cited…..….………………………………………………………………………………13
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Phase 1
Vietnam Environmental Scanning
Due to Vietnam’s sustainable yet rapid economic growth for the market of skin sun care, the
potential for market growth has been increasing by 15% since 2009. For Caribbean Breeze to effectively
penetrate Vietnam’s diversified market and its consumers the company must focus on the following areas:
Geographical
Cultural
Political
Economical
Regulations
Consumer Behavior
Competition
Geographical
Vietnam is located in southeastern Asia, bordering the Gulf of Thailand. Due to
Vietnam’s location the climate is tropical and has monsoons. The rainy seasons are mid-May to
mid-September with a dry season from mid-October to mid-March.
Cultural
Vietnamese culture is ascetically pleased with light skin complexions and their major
languages are Vietnamese, French, Chinese, Russian, and English. Society focuses on increasing
higher levels of education with an average literacy rate of 89.76%.
Political
Vietnam is a social republic led by the Communist Party which controls political
expression. This has caused Vietnam to experience small-scale protests from groups against the
communist parties control over land-use, political space, and the resolving disputes.
Economical
Vietnam’s economy is blooming with a GDP of 171.39 billion while the GDP growth
rate is 6.19% per year. Vietnam’s a main income level is lower middle causing the average
household disposable income little room for discretionary spending. However, tourism is very
prominent and Vietnamese incomes continue to rise.
Regulations
Vietnam’s regulation for skin sun care based on the trading cosmetics through the
ASEAN requires less barriers of entry for regulations on contents and labeling of product like that
of the U.S. Food and Drug Administration.
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Consumer Behavior
Vietnam’s accepts tourism since Vietnam’s GDP increases from tourists shopping in
various markets. Since Vietnam markets small in size, product sizes are typically smaller. For
sunscreen, most of the domestic products feature sunscreen with skin whitening features aimed at
Vietnamese ascetics so tanning products are not very popular.
Competition
The main competition Vietnam is Nivea, Sunplay, and a few other brands from America,
Thailand, and France. Most competition is from international brands, since domestic sun care
brands lack the marketing dollars. However, domestic brands are more aware of the habits of
local women and utilize supported raw materials.
Positioning Strategy for Entering the Vietnam Market
Based on the previously conducted environmental scanning Caribbean Breezes positioning
strategies are to express Caribbean Breeze’s product features/benefits (reason to buy),various product
lines (sunscreen, after sun, lip balm), packaging that creates convenience for travel, and an emphasis on
the product being made in the U.S. to imply the Caribbean Breeze products are high quality, safe, and
reliable. Caribbean Breeze will target its positioning efforts towards the target market of the local
Vietnam market located near the beach and tourists visiting Vietnam. This market consists of males and
females ages 21 to 50, which are health conscious and active outdoors enthusiasts.
Since these consumers focus on attractions in Vietnam such as beaches, local and international
tours, walking, bicycling, and kayaking, Caribbean Breeze will position itself as a product that fills the
need for the health conscious and are active outdoors enthusiasts who require sun protection that has
organic ingredients and is high quality for an affordable price. By Caribbean Breeze emphasizing the
product features of their Sunscreen/Lip Balms organic ingredients, SPF 30+ protection, 80 minutes of
water resistance, USA manufactured, and UVA and UVB protection, Caribbean Breezes provides the
target market the brand image that Caribbean Breeze is high quality, safe, and reliable. The product
feature for the after sun lotions and gels also emphasize these features but focuses on the benefits of
providing relief, moisturizers, and added vitamins that also show Caribbean Breeze as high quality, safe,
and reliable. Another positioning strategy is to show Caribbean Breeze’s products as convenient by
providing smaller sized products and varied types as applicators such as sprays, lotions, and gels. Also
the products labels will remain the same in design, but the product will display translations of Vietnamese
and English upon the containers so that locals and tourists find it convenient for reading the products
label.
Caribbean Breeze will focus these positioning efforts in print and outdoor display promotions in
areas such as Ho Chi Minh City, Hanoi, Nha Trang, Danang, Doc Let, Phan Thiet, and other beaches as
well as airport located near the coast of Vietnam. In these areas, Caribbean Breeze will focus its efforts to
position the products by creating discounts and incentives for retailors such as resorts, hotels, convenience
stores, and shopping markets that are near these local and tourists. Also for positioning purposes,
Caribbean Breeze will use such promotional activities as advertisements in plane magazines, print ads,
outdoor promotions, and promotional inserts in these areas, which will cause an increase in brand
awareness and create incentives for retailors to sell Caribbean Breeze.
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Phase 2
Vietnam Market Entry Plan for Caribbean Breeze
I. Market Entry Objectives
Caribbean Breeze’s main market entry objectives for the Vietnam Market are increasing
brand image, implementing price penetration strategies to create price advantage over
competitors, increase market share, and adapt product packaging.
For product objectives, Caribbean Breeze will focus on positioning the product lines of
Sunscreen (spays and lotions), After Sun (lotion and gel), and Lip Balm. Caribbean Breeze will
also focus product objectives on package size adaptation to 8-16oz, labels being in Vietnamese
and English, and focusing on the products health benefits and convenience features. Caribbean
Breeze’s goal for the product is to effectively communicate health and convenience with the
products and its features so that Caribbean Breeze’s product image is known as high quality, safe,
and reliable.
For pricing objectives, Caribbean Breeze wants to utilize value-based pricing for
Sunscreen and After Sun lotions and gels. While for Lip balm Caribbean Breeze will utilize
penetration pricing. This will allow Caribbean Breeze Sunscreen and After Sun products to be
priced so that it reinstalls Caribbean Breeze products as high quality, safety, and reliability.
However, for the Lip Balm since the product is low in price to create penetration pricing
Caribbean Breeze focuses on the convenience based on the price of the product. Also Caribbean
Breeze’s goal is to focus on converting prices to the local currency of the Dong so that Caribbean
Breeze’s prices are competitive towards their local competitors. However, Caribbean Breeze also
plans on acquiring its profits in the form of credit so that Caribbean Breeze will retain as much
profit as possible in order to cover the costs of exporting containers and local Vietnam
transportation.
For promotional objectives, Caribbean Breeze will concentrate on increasing market
reach by informing our target markets about product features/benefits (reason to buy),various
product lines (sunscreen, after sun, lip balm), packaging that creates convenience for travel, and
an emphasis on the product being made in the U.S. to imply the Caribbean Breeze products are
high quality, safe, and reliable. It is Caribbean Breezes objective to inform tourists and locals
about the product features with the use of print ads, posters, product displays, package deals,
outdoor promotions, and trade promotions. In these promotions Caribbean Breeze’s goal is to
present the brand and the products health benefits of protection with 30+
SPF, broad spectrum
UVA and UVB protection, 80 minutes of water resistance, and the products organic ingredients.
Promotions will emphasize the brand image as a USA made product to increase the brand images
credibility and show the brand as a reliable high quality USA based product.
For distribution, the main objectives Caribbean Breeze will try to accomplish is
coordinating distribution activities in a way that creates efficient levels of communication and
transportation through the supply chain in order to cut down the costs of distribution. To do this
Caribbean Breeze will implement strategies of establishing product shipments from the US based
factory to Ho Chi Minh City, where Caribbean Breeze then wants to establish local distribution
by hiring agents, and creating a strategic alliance between Caribbean Breeze, distribution
intermediaries, and retailors. Also in order distribute the products to the sellers, Caribbean
Breeze’s goal is to use the relationships with its agents and intermediaries to help distribute the
products by having them use sales, product discounts, and incentives to get retailors to want to
sell Caribbean Breeze products
6. 6 | P a g e
II. Tactical Programs & Activates
a) Product
The types of products Caribbean Breeze will sell are Sunscreen (spray and lotion), after
sun care (lotion and gel), and Lip Balm, which will be positioned as high quality, safe, and
reliable towards the Vietnam locals and tourists that are health conscious and active outdoors
enthusiasts. Caribbean Breezes tactical programs and activates for the product are as follows.
Goal: Position Caribbean Breeze products (Sunscreen, After Sun, Lip Balm) as a high
quality, safe, and reliable product.
Program: Emphasize product features (Further described in the FAB Table)
Activity: The Sunscreen (sprays and lotions) and Lip Balms labels will list the
features of organic ingredients, SPF 30+, UVA/UVB protection, and a “Made in
the US” logo to show consumers the products provide high quality, safety, and
reliability.
Activity: The After Sun Care lotion and gel labels will list the organic
ingredients, such as aloe Vera, mint extract, and vitamins, and the features that
the product provides skin relief while moisturizing the skin to show the products
high quality and reliability.
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Program: Emphasize health benefits and convenience
Activity: Labeling the features of organic ingredients, SPF 30+, UVA/UVB
protection, and a “Made in the US” logo on the package, Caribbean Breeze will
emphasize the products ability to provide a product that protects and benefits in
the maintenance of skin health
Activity: For convenience, Caribbean Breeze products will come in different
types of applicators such as lotions and sprays for the Sunscreens and lotions and
gels for the After Sun products. The Lip balm will have only one application
type. Also the range in sizes of the products provides convenience of having a
smaller 8oz (travel sizes) to 16oz package.
Program: Adapt packaging
Activity: Caribbean Breeze’s package labels will be in both English and
Vietnamese.
Activity: The packages range from 8oz (travel sizes) to 16oz.
FAB Table
Features Advantages Benefits
Sunscreen
Organic Ingredients
SPF 30+
UVA/UVB protection
80 minutes of waterresistance
Spray/Lotion
“Made in US” logo
Sunscreen lasts
longer for water
resistance than the
competitors
Credibility is
established since it is
US manufactured
High SPF and
UVA/UVB
protection provides
reliability for the
safety that the
sunscreen provides
Convenience from
the variety of
applicator
Provides consumer
with a product for
the health
conscious and
outdoor enthusiast
who needs
protection,
convenient
application, and
confidence of the
brands quality
Lip Balm
Organic Ingredients
SPF 30+
UVA/UVB protection
80 minutes of waterresistance
“Made in US” logo
Quick and
convenient lip balm
that has a higher
level of sun
protection and water
resistance with the
use of organic
ingredient.
Provides
consumers with a
higher level of
protectionlip balm
that protects from
the sun and water
exposure.
After Sun Care
Organic Ingredients (Aloe
Vera, mint Extract, vitamins)
Moisturizes
Coolingagent
“Made in US” logo
Lotion/Gel
After sun products
unlike competitors
helps to soothe the
skin while providing
moisture to the sun
exposed skin.
Provides skin relief
after sun burn/sun
exposure
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b) Price
With the exchange rate of USD and the Dong being $0.0000469704 USD for every 1
VND, Caribbean Breeze is going to have to create a price adjustment for the products of
Sunscreen, After Sun, and Lip Balms in order for the Caribbean Breeze competitively compete
against local market leaders as well as to make a profit in the Vietnam market. To do this
Caribbean Breezes tactical programs and activates for price are as follows.
Goal: Competitively price product against competitors.
Program: Utilize Value-Based Pricing.
Activity: Price Sunscreen at $14.00 USD or 298,449.66 VND causes price to be
competitive with competition while being a high quality product.
Activity: After Sun (lotions or gels) at $8.00 USD or 170,405.27 VND causes
price to be competitive with competition while being a high quality product.
Program: Utilize Penetration Pricing.
Activity: Lip Balm at $3.00 USD or 63,901.985 VND provides a cheaply priced
product for instant purchases by consumers.
Program: Prices for Sunscreen, After Sun, and Lip Balm products in the local currency
of the Dong.
Activity: Convert USD prices to the trade value of 1 VND for $0.0000469704
USD so that Vietnam locals and tourists will be able to buy the products instead
of only the competitions priced in the Dong
Goal: Retain as much profit as possible despite the currency rates
Programs: Acquire profits in the form of credit.
Activity: By using the form of Credit, Caribbean Breeze allows less profit loss
from converting the Dong into the US dollar so that with these prices Caribbean
Breeze can project a total profit of $880,000 USD or 18,744,579,383.20 VND.
Based on the estimated sales goals of 50,000 bottles of Sunscreen for a profit of
$700,000 USD (or 14,910,460,873.00 VND), 15,000 After Sun products (lotions
and gels) for a profit of $120,000 USD (or 2,556,079,006.80 VND), and finally
20,000 sticks of Lip Balm for a profit of $60,000 USD (or 1,278,039,503.40
VND).
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c) Promotion
Caribbean Breeze promotional strategies to build brand image and increasing
market reach to tourists and locals in the Vietnamese market, starts with promotional efforts to
inform our target markets about product features/benefits of Caribbean Breeze sunscreens, after
sun lotions, and lip balm. Since Caribbean Breeze recognizes the target markets necessity for high
quality, safety, and reliability, Caribbean Breeze will use the following tactical programs and
activates for promotion.
Goal: Build Brand image with Vietnam Locals and Tourist Market
Program: Print Ad Programs
Activity: For the first two years Caribbean Breeze will use print ads in
newspapers and magazines such as Vietnam Economic Times, Vietnam News,
and The Saigon Times. These print ads will be positioned mainly for the local
market rather than the tourists.
Activity: These print ads will always present Caribbean Breezes products as
focused on providing consumers products that are high quality, safe, and reliable
with the mention of the products features and benefits for the health conscious
and outdoors enthusiasts.
Activity: The print ads will include coupons to help create local market
enthusiasm and ultimately sales.
Program: Posters Programs
Activity: Caribbean Breeze will provide various posters that will display
Caribbean Breezes product lines, features, and benefit where they will be
displayed at major airports in Vietnam and the USA.
Program: Sales promotions through package deals of products.
Activity: Caribbean Breeze will be offering bonus packs that will include a bottle
sunscreen with the bonus of a travel sized “clip on” after sun lotion. The clip on
bottle of sunscreen can be easily attached to the consumer’s backpacks or
personal bags for easy carrying when traveling. This promotion is intended to
appeal to the tourists market that is backpacking and traveling a great deal of
their time outside while in Vietnam.
Goal: Increase market reach to Vietnam Locals
Program: Outdoor advertising Programs
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Activity: Provide advertisements at bus stops and on local buses to increase the
amount of the market the advertisement for Caribbean Breeze reaches at a low
promotional cost.
Program: Trade Promotions
Activity: Provide retailors with incentives to sell Caribbean Breezes products
such as discounts allowing retailors to sell the products for free and receive
promotional allowances of Product Displays and promotional advertisements for
the stores
d) Distribution
Caribbean Breezes wants to coordinate distribution activities in a way that creates
efficient levels of communication and transportation of the products through the supply chain
while cutting down the costs of distribution. To do this Caribbean Breeze’s tactical programs and
activates for distribution are as follows.
Goal: Create efficient levels of communication and transportation of the products through
the supply chain
Program: Establish distribution with international exporter
Activity: Caribbean Breeze will utilize UTS product shipment, which will allow
Caribbean Breeze’s products to ship to the port of Ho Chi Minh City in Vietnam.
Since Ho Chi Minh City’s port is near the beaches as well as one of the cities
Caribbean Breeze will be implementing promotional activities, Ho Chi Minh
City will be the port that Caribbean Breeze will use UTS to export to (Below is
the chart of estimated costs to ship the product per 20 foot container).
11. 11 | P a g e
Program: Establish local Vietnam distribution and promotions by hiring agents and local
distribution intermediaries
Activity: These local Vietnam agents will be stationed at Ho Chi Minh City and
will handle local distribution as well as promotional activities. These agents will
act as sales agents for getting the products into retail stores. This means the
agents will represent the Caribbean Breeze company for communicating with
local Vietnam retailors of the products prices, features, displays, and brand
image.
Activity: Designate local distribution intermediaries that will monitor, screen,
and handle the Caribbean Breeze exports that arrive at Ho Chi Minh port. These
intermediaries like the agents will communicate with Caribbean Breeze about the
products status and the progress of distributing for the products to Vietnam
retailors.
Program: Establish local Vietnam distribution of Caribbean Breeze products with the use
of local distributors.
Activity: Caribbean Breeze will have local distribution intermediaries designate
local distribution companies to distribute the product among retailers in the beach
areas of Ho Chi Minh City, Hanoi, Nha Trang, Danang, Doc Let, Phan Thiet,
and locations located on the Gulf of Tonkin(as shown in the map below).
Activity: Some of the major tourist’s resorts that these local distributors will
transport the product are to resorts such as Diamond Bay Resort & Spa, Sunrise
Nha Trang Beach Hotel & Spa, Evason Ana Mandara Nha Trang, and Elegant
Hotel Saigon City which will be given trade promotions. Also in the areas
mentioned, the nearest convenience and beauty retail shops will also receive
Caribbean Breeze products and displays from local distributors.
12. 12 | P a g e
Goal: Create efficient Distribution to lower costs of distribution for larger profit margins.
Program: Create a strategic alliance between Caribbean Breeze, distribution agents,
distribution intermediaries, and retailors.
Activity: Caribbean Breeze’s strategic alliance with local distribution agents,
local distribution intermediaries, and retailors will occur through the use of trade
promotions. These trade promotions will provide incentives for each agent,
intermediary, and distributor to monitor the supply chain and remain up to date
on the movement the product towards sales. By creating an alliance Caribbean
Breeze will eliminate the costs of inefficient communication and performance
that affect distribution costs.
Activity: Caribbean Breezes distribution will monitor the progress of distribution
of products from the manufacture, to international distribution (UTS), to local
distribution intermediary/agents, to local distribution, to the retailer, and finally
to the consumer in order to determine if distribution is being conducted
efficiently and effectively.
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