HN.G3 Richy assginment 2A, Exercises of Marketing Theory

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TABLE OF CONTENTS

I/ INTRODUCTION

1. Company description 2

2. Product description 3

II/ MARKETING ENVIRONMENT AND SWOT ANALYSIS

1. Micro Environment 4

2. Macro Environment 6

III/ CUSTOMER-DRIVEN MARKETING STRATEGY (STDP)

1. Segmentation 10

2. Targeting 12

3. Differentiation and Positioning 13

IV/ CONCLUSION 15

V/ REFERENCES 15

VI/ APPENDICES 18

VII/ TASK ALLOCATION 22

RICHY honey rice crackers are one of the famous products in the RICHY rice crackers field which was produced in 2011. In the beginning, RICHY Group realized the potential values available in Vietnam such as rice or human resource, therefore, they decided to make RICHY honey rice crackers with the main ingredient is rice so that consumers can experience completely the attempt of farmers through each piece of cracker. Also, RICHY group states that not only brings the products of Vietnamese rice to the national customers but also aboard the overseas market. RICHY honey rice crackers have eye-catching packaging with the name of the brand, name, and image of the product, nutrition facts, and weight on it. Up till now, RICHY has exported the whole product to 30 different areas of the world such as America, Korea, and Japan. Source: RICHY

During the years of development, RICHY Group reached the Top 10 Reputable Companies based on finance competence, media coding, and consumer survey (Vietnamreport, 2019

p.1). In addition, RICHY Group earned $40 million in Revenue in 2021 (RICHY

Export,2021). Source: Vietnamreport 2019 II. MARKETING ENVIRONMENT AND SWOT ANALYSIS

1. Micro Environment

1.1. Suppliers

There are a lot of suppliers who provide the raw material for Richy. It can be divided into many groups of products such as flour, sugar, dairy, chemical additive, and packaging. Almost all Richy suppliers are local companies (Tikibook.vn, 2019), so Richy is very proactive in controlling the input quality for their products. Dai Phong flour company, Bien Hoa sugar factory, or Phu Yen sugar factory are some reputed names in Richy’s suppliers => Strengths: the connection between raw materials and the factories, lead to decrease the transportation fees, give rise to bring about the surge of revenue =>Strengths: Promote Vietnamese brand (Vietnamese Material, Vietnamese technology), and national identity. Prestigious suppliers also contribute to increasing trust in quality for users

 Characteristics of information reception: besides using common communication

channels such as TVC or social media, sponsoring sports events is also very important to reach out to the customers => Strengths: Richy's taste is well received through awards such as "Vietnamese High Quality Goods" voted by consumers for many years, Top 1 "Vietnamese products are loved by consumers in 2020". In addition, Richy rice cakes are also diverse in many flavors : salty, sweet, honey -> Serve the demands of customers. => Weaknesses: Richy easily has problems with simple and unattractive product packaging -> Difficult to attract top-class customers. Only a few products have been selling well recently due to the appealing packaging. To attract high-end customers, Richy needs more luxurious designs in the future.

1.4 Competitors

Although Richy is one of the famous rice cake brands in Vietnam, they still have to compete with other strong direct competitors like One One or Ichi. Meanwhile, according to Camilleri (2017), it is important for a firm to understand the market and the competitive trends within that marketplace. One One is one of the most famous rice cake brands in the market, it is the first brand of rice cakes in Vietnam. Moreover, the price offered by this brand is also lower than that of Richy. Another brand is a sub-brand of One One, which is Ichi. This is the brand created by One One to go head-to-head in the high-end segment with Richy. Because of the advantage of technology transfer from Japan, Ichi quickly caught the attention of upper-class customers. Besides, there is a wide selection of convenient and healthy products on the market such as energy bars. This product considered as an indirect competitor of Richy rice cake in the segment of customers who love sports.. This is also disadvantageous for Richy because health is a top concern of Vietnamese nowadays. => Threat: The growth of rivals' market share may diminish demand for Richy goods including: price, packaging, product variety.

2. Macro Environment

2.1 Demographic:

Thanks to the dense population in Vietnam, it has positive effects on the labor forces and large quantities demands. In a little more detail, currently, the population of Vietnam is 97.3 million people, with 100 million predicted by the end of 2024. Its population is estimated to peak at 109.78 million in 2054 (World population review). With its growth, Vietnam has enough supply and demand sources. Locale factors emphatically influence the propensity of shopping. People's buying inclinations too shift by geographic locale. Those that fulfill the requests and criteria of buyers in certain geographic zones might increment their deals and profit. In a few

marketplaces, for illustration, people habitually incline toward certain nourishment and drink flavors. Companies that supply the tastes that clients need in an assortment of places are more likely to create cash. Those who don't give these tastes may lose clients to competition (smallbusiness.chron.com, Chron). It would be a good sign for Richy with multiple flavor choices of products such as Oatmeal crackers, Cheese rice crackers, natural rice crackers, etc. => Opportunity: The increase in population will dramatically promote higher demand for food consumption of customers. To take advantage of that opportunity, Richy can promote market expansion , linking with many agents and facilities in different regions. In addition, Richy should promote advertising , contributing to increasing brand awareness from customers. Having a variety of flavors and cakes also strengthens Richy's position, satisfying customers' appetites in long-term => Threats: Not only Richy but also many other bakery brands try to develop their position in the market. As a result, Richy will have to compete to take advantage of the current population growth. They need to create more prominence and distinction to attract customers towards them.

2.2 Economic:

‘GDP per capita increased by 2.7 times, reaching over US $2.700 in 2019, and more than 45 million people were lifted out of poverty’ (World Bank, 2021). These statistics indicate that the world economy has grown sharply and lead to high living standards and increasing demands of shopping. In addition, based on the Vietnamese Ministry of Industry and Trade, because food products are vital components, customers are increasingly interested in them as a result of COVID-19.In July 2021, retail deals of products are anticipated to reach 2.269,7 thousand billion VND, bookkeeping for 81. percent of by and large deals and a 3.2 percent rise over the same period final year. The current situation will be an advantage for this brand. Customers pay only 48 000 VND per 186g pack of Richy honey rice crackers (the signature) which is low compared to others displayed in supermarkets, groceries. Moreover, according to Iris, GDP is predicted to rise by 6-7 percent and CPI will rise by 3-4 percent between 2020 and 2025. In 2019, the primary factors contributing to Vietnam's economic development are services and consumer goods. In 2020, FMCG grew quicker in both urban and rural areas, owing to the impact of COVID-19. In general, practically all sectors grew faster in the past 12 months than the previous year, with the packaged food sector being the biggest winner. (Kantar, 2020). Source: Iris marketing

focus more on online shopping (Vietnam Times, 2020). Richy has taken advantage of the potential customers available from e-commerce platforms to promote products. This is a great opportunity for Richy to sell products, especially the signature (Richy honey rice crackers), through Tiki, Lazada, Shopee (successful platforms in Vietnam). This brand also promotes its products via its website (https://richy.com.vn/en/), Facebook page,TV, and youtube advertisement to

popularize its brand images and reach customers as much as possible. Clients

ought to be made commonplace with things amid an organisation, agreeing to

Rowley (1998), in this manner promoters ought to give visit overhauls of existing

items as well as data of almost unused items to shoppers.(Meyrick, 2006) (Journal

of Creative Communications). The advertisement of Karo Vuong Tron reaches 1. million views (Appendix 3) over 3 months and 83 thousand likes on Facebook page (Appendix 4) are credible evidence of successfully reaching customers via social media. . Source: Statista => Strength: Richy has successfully approached many electronic markets such as Shopee, Lazada.. increasing the convenience in ordering and purchasing at any time. The plus points for Richy are cheaper prices compared to resellers in the market and free shipping (Appendix 5), which will further promote consumption and economic growth for Richy

III. Customer - driven Marketing Strategy

1. Segmentation

Segmentation Geographic Demographic Psychographic Behavioural

People who are keen on eating snacks Urban and rural areas Age : 10- Gende r: male and female (majority) Income : low to medium Occupation : students, workers Social class : low to middle class Lifestyle : people who want to release stress by eating, people who like convenience and simple, people who active and youthful Personality : friendly, simple, agile, care about their mental health Occasions : almost everyday Benefit sought :

• This product is affordable for this targeted group
• The ingredient of this product contains more than 63% of rice (Richy, n.d) so it is very nutritious and provide a great amount of energy
• Eating snacks is an effective way to reduce stress and enjoy daily life User status : a frequent user Usage rate : heavy Loyalty status : faithful customers Parents who have kids All provinces in Vietnam Age : 25+ Gender : female (majority) and male Income : medium to Social class : middle to upper class Lifestyle : parents who indulge their children and want their kids to have a good source of Occasions : daily use Benefit sought :
• Make their children happy and obedient
• Take this as a reward when

be eaten immediately

• Fully supplement necessary nutrition and have many ingredients suitable for the traditional taste of Vietnam such as rice, chicken cotton rub, eggs, fish sauce, etc. (Richy, n.d) User status : first time user Usage rate : light Loyalty status : normal

2. Targeting

Richy has successfully applied differentiated targeting strategy by understanding the specific needs of its clients depending on their hobbies and income, and by giving them a variety of items differing in taste, styles, and prices that match their needs and demands. For example, regarding kids and teenagers, Richy focuses on eye- catching product packaging and flavors to attract this target group. For older people, this brand produces items with traditional Vietnamese flavors such as Richy honey rice cake to satisfy even the most demanding consumers. Following the four segments which are mentioned above, parents who have kids and people who are keen on eating snacks are the two main groups that Richy strives for. When it comes to parents who have kids , they are in the middle to upper class with middle and high income so they are very willing to indulge their families and children (Appendix 1). For more details, this targeted group is always busy and needs some ways to make their lives simpler and easier, for example, they find it difficult to balance work and childcare. Understanding the demands of customers, most of the products that Richy provides are individually packaged in packages and do not need complicated processing that can be eaten immediately and still full of nutrients. Furthermore, Richy’s rice cake product line has up to 13 different flavors with different designs, styles and ingredients (Richy, n.d), so it is easy for them to find the right type for each family member’s taste, especially their kids.

Regarding people who are keen on eating snacks , they are usually of the age when they are still studying or working, and in low to middle class. As a result, this targeted group often looks for fast, neat, quick and reasonably priced snacks but still have to give them enough energy to study and work. Therefore, Richy has launched up to 13 different types of Richy rice cakes with different prices and flavors (Richy, n.d). More specifically, this company often has promotions to show gratitude and boost the purchasing power of consumers (Richy, 2021), especially this segment. Moreover, Richy has sold their products in supermarkets nationwide along with e- commerce platforms such as tiki, lazada, shopee (Appendix 2) - where this group of customers often pay attention to, creating good conditions for consumers to know more about this brand.

3. Differentiation

3.1. Product differentiation:

Rice is a notoriously essential food which appeared in any Vietnamese’ family meal throughout its long-lasting history. Therefore, having numerous manufacturers trying to turn it into packaged or convenience food is not uncommon. However, the masterpiece standing out from the crowd with distinctive taste, international quality, an elegantly designed, and reasonable price is Richy’s rice cracker. Each cracker perfectly contains above 50 percent of rice, a dollop of additive components, and most important of all, the locally grown ingredients. Received diverse rewards from overseas such as HACCP, ISO 22000, HALAL, that obviously exemplify an indicator of it.( Richyexport, 2021) Recently, they have honorably achieved the Vietnam National Brand. That's a huge step in the right direction. (National Brand, 2020) Speaking of the variety, they offer crunchy crackers and simultaneously provide an abundant option of flavors. The distinguished tastes of Asian such as sweet, salty, flaked milk or the American identifiable flavors which are BBQ, cheese, and honey, that all can be found in the sizable category. It’s the testament to the fact that Richy is intentionally aiming to meet the demands of different people with the culture dynamics. Chosen snack food for customers by Vietnam National Airlines is the desirable compensation for their effort. (Vietnamreport, 2019) The design of the label is also the part that should not be undervalued. It was thoughtfully created to be descriptive, attractive, and suitable for solely the flavor of a cracker inside. An example of this is a cheesy rice going along with a central yellow color or the conventional compound of a BBQ taste with a red-dark tone. It doesn't need any words to convey what it tastes, because the cover explicitly says it all. In terms of price, it undeniably has a tremendous impact on their large-scale selling. It is trendy, loved and considered as an instant snack, and stamina booster food by an uncountable number of Vietnamese throughout the motherland. (The Top 1 "Vietnamese goods loved by consumers in 2020", Tuoitretv) In all passion for serving

the middle class and below, Richy is an example of a successful responsible

manufacturer in offering international standard, precision designed without

exclusive price.

3.2. Channel differentiation:

Richy notably used the same for less approach. They’re sapping the cost by self-grown rice, in order to dictate appropriate price along with finer quality. Perhaps, the firm can advance the budget bargain, by relying on large-scale selling as the backbone. IV/ CONCLUSION In conclusion, based on the data and achievements mentioned above, it is certain that RICHY is a substantial corporation in both the fields of import and export products in Vietnam. With the investment in modern technology and high quality of materials, RICHY would be able to export all of the products to more customers all over the world. Also, with the honey rice crackers RICHY could suit more and more different customers’ taste since the flavour is easy to adapt, especially for Asia countries. However, with the development of the confectionery industry in this day and age, it is a struggle for RICHY's honey rice crackers to rank at the first position as many other powerful competitors such as: Ichi or One One. Besides, RICHY Food should concentrate on fixing the packaging of products and open an official brand store for the products’ promotion more easily and conveniently. V/ REFERENCES Bánh gạo richy xuất khẩu sang 18 quốc gia, viewed 4 August 2021,https://vnexpress.net/banh-gao-richy-xuat-khau-sang-18-quoc-gia-3480541.html Câu chuyện của người sáng lập thương hiệu bánh kẹo Richy và hành trình đến với “Thương hiệu quốc gia 2020”. [online] Available at: <http://nhipsongkinhte.toquoc.vn/cau-chuyen-cua-nguoi-sang-lap-thuong-hieu-banh-keo- richy-va-hanh-trinh-den-voi-thuong-hieu-quoc-gia-2020-42020281182432535.htm> Dịch Covid-19 tác động tiêu cực đến hoạt động thương mại, dịch vụ, viewed 4 August 2021, [online] available at: <https://moit.gov.vn/tin-tuc/thi-truong-trong-nuoc/dich-covid-19-tac-dong-tieu-cuc-den-hoat- dong-thuong-mai-dic.html> FMCG Monitor January 2021, viewed 4 August 2021, [online] available at: https://www.kantarworldpanel.com/vn/news/FMCG-Monitor-January-2021 Glynn, Mark S., Woodside and Arch G., 2009, ‘Business-To-Business Brand Management : Theory, Research and Executive Case Study Exercises’, view 4 August 2021, [online] available at: <https://ebookcentral.proquest.com/lib/rmit/detail.action?docID=453226&query=Woodside %2C+Arch+G.> Impact of Media Advertisements on Consumer Behaviour, viewed 4 August 2021, [online] available at:

https://journals.sagepub.com/doi/10.1177/0973258618822624 Online shopping in Vietnam spirals up as Covid-19 returns, viewed 4 August 2021, [online] available at: <https://vietnamtimes.org.vn/online-shopping-in-vietnam-spirals-up-as-covid-19-returns- 23611.html> RICHY 2018, Về Richy – Bánh kẹo Richy , RICHY, viewed 31 July 2021, https://richy.com.vn/en/ve-richy/ Richy 2021 , 'COMBO RẢ RÍCH - An Toàn Mùa Dịch', Facebook , viewed 4 August 2021, https://www.facebook.com/banhkeorichy/posts/3442902415812718. Richy Export 2021, ‘Our Development’ – summary table, Richy Export , viewed 1 August 2021, <https://richyexport.com/? fbclid=IwAR1qpyOA6PhfmsbvmPprohL2bpz8hlj_KS08yEKv6K2TsDtOk4LGkvsgZug>. Richy Group – Thương hiệu bánh kẹo hàng đầu Việt Nam. [online] Available at: <https://vietnamreport.net.vn/Richy-Group-%E2%80%93-Thuong-hieu-banh-keo-hang-dau- Viet-Nam-8907-1007.html> [Accessed 14 November 2019] Richy, n.d , 'Bánh gạo mật ong 108g', Richy , viewed 4 August 2021, https://richy.com.vn/shop/banh-gao-mat-ong-108g/. Richy, n.d , 'Bánh trứng tươi – chà bông Karo Richy', Richy , viewed 4 August 2021, https://richy.com.vn/shop/banh-trung-tuoi-cha-bong-karo/. Richy, n.d , 'Richy:homepage', Richy , viewed 4 August 2021, <https://richy.com.vn/product- category/gia-dinh-richy/banh-gao/>. Richy, n.d, ‘Tự hào bánh gạo Richy: Top 100 sản phẩm Tin & Dùng năm 2019’, view 4 August 2021, [online] available at: https://richy.com.vn/tu-hao-banh-gao-richy-top-100-san-pham-tin-dung-nam-2019/ Richy: Căng buồm, đón gió, mang thương hiệu Việt Nam ra thế giới. [online] Available at: <https://baophapluat.vn/richy-cang-buom-don-gio-mang-thuong-hieu-viet-nam-ra-the-gioi- post369723.html> [Accessed 3 November 2020] Shopee, viewed 4 August 2021, https://shopee.vn/shop/173513432/search. Statistics World Bank Vietnam, viewed 4 August 2021, [online] Available at:https://www.worldbank.org/en/country/vietnam/overview#1

VI/ APPENDICES

Appendix 1

Source: Youtube

Appendix 2

Source: Shopee

Appendix 3

Source: Youtube