Page | 1

RMIT University Vietnam MBA

Assignment Cover Page

Subject Code:

BUSM4164

Subject Name:

Business Consulting

Location & Campus where you study:

SGS

Title of Assignment:

(In the form of a question)

Consulting Project – Hobart Saigon Trading

Co. Pty Ltd

File(s) Submitted:

1 pdf file

Student names: Bach Ngoc Lan Anh

Nguyen Thi Phuong Thao

Nguyen Quang Thong

Le Nguyen Minh Tram

Luu Mong Van

Student Numbers:

S3357525

S3131652

S3259052

S3619122

S3373014

Course Coordinator:

Professor Victor Kane

Assignment due date:

03 September 2017

Date of Submission:

03 September 2017

Late Submission Approval:

On time

Number of pages including this one:

22

Word Count:

3,102

Page | 2

Hobart Saigon Trading Co. Pty Ltd

Client Consulting Project

How to be successful as a high-end food and beverage

importing company in Vietnam’s market?

Consulting Team (MBA Students – RMIT University)

Bach Ngoc Lan Anh

Nguyen Thi Phuong Thao

Nguyen Quang Thong

Le Nguyen Minh Tram

Luu Mong Van

- September 2017 -

Page | 3

Executive Summary

Hobart Saigon Trading Co. Ltd is currently in the early stage of development in Vietnam’s

market. Capturing the demand of luxury food in the most fast-paced developing city in Vietnam,

Saigon Hobart is planning to put their first step in the market by establishing a wholesale

network and launching a retail store chain in the central district of Ho Chi Minh City.

By applying the Double Diamond model, this report will provide feasible solutions for the

obstacles when operating in Vietnam. After analyzing the external business environment in

Discovery phase with PEST, the root cause of the main issues will be defined to develop

effective recommendations, followed by an implementable action plan. Indeed, Hobart Saigon is

seeking for a branding strategy to reach out the target market within 9 months. The findings

showed that the limited product portfolio due to the niche target segment is the main obstacle

for Hobart Saigon to sell their products in a developing country like Vietnam. Moreover, different

local consumer behaviors and their lack of awareness about Tasmanian restrain the company’s

launching in Vietnam.

Based on the findings, Hobart Saigon is recommended to revise the product labeling and

packaging to gain the trust of the customers. More remarkably, the company should adopt a

proper branding campaign focusing on digital communications. In addition, the company is

recommended to open a retail store with luxury concept and modern decoration in District 1.

The consulting team also came up with detailed analysis on cost estimation for Hobart Saigon to

prepare a suitable financial plan. Strategic contingency action plan is developed at the end of

this report to provide Hobart Saigon proper guidelines to react within the Vietnam’s market,

specifically in the busy city named Saigon.

Page | 4

Table of Contents Executive Summary ................................................................................................................... 3

Project Overview ........................................................................................................................ 5

Company background ............................................................................................................ 5

Supplier profile ....................................................................................................................... 6

Findings – Discovering the problems ......................................................................................... 6

PEST Analysis ....................................................................................................................... 6

Porter's Five Forces ............................................................................................................... 7

Conclusion – Defining the problems ........................................................................................... 9

Problem 1: Importing products are lack of trusted labeling and packaging ............................. 9

Problem 2: Low consumers awareness of Tasmania products .............................................. 9

Recommendations ....................................................................................................................10

Revising the product labeling and packaging ........................................................................10

Building brand awareness through appropriate brand positioning .........................................11

Developing Marketing Communication Plan to reach target customers .................................13

Traditional advertising .......................................................................................................13

Digital advertising ..............................................................................................................13

Public Relations ................................................................................................................13

Cost Analysis and Action Plan – Delivering the consulting project ............................................14

Logistics and Warehousing ...................................................................................................14

Retail channel .......................................................................................................................15

References ...............................................................................................................................16

Appendices ...............................................................................................................................18

Appendix 1: Business Consulting Engagement Form ............................................................18

Appendix 2: Pricing Strategy .................................................................................................19

Appendix 3: Costing Analysis ................................................................................................20

Appendix 4: Income Statement .............................................................................................21

Page | 5

Project Overview

This report aims at providing comprehensive consulting to Hobart Saigon on official launch to

Vietnam’s market as a supplier for high-end packaged food and beverage produced uniquely in

Tasmania - an island located to the South of Australia. The nature of this business is merely

trading, which means the products are imported from Hobart for sale in Ho Chi Minh City.

Initially, the company should focus on revising the product portfolio to capture the attention of

Vietnamese customers. Considered all the aspects of the newly established business, Hobart

Saigon is well-prepared to enter the market only if the customers are educated about the quality

of the products. In addition to the nature of the trading business which satisfies the demand of

consuming imported food and beverage for local customers in Vietnam, Hobart Saigon aims to

differentiate itself as a unique product supplier, which brings an amazing first moment of truth

(FMOT) at any touch point of the business. In particular, the sense brought to customers after

walking in the retail store is expected to be distinctive from others. Hence, in order to establish a

strong positioning in the customer’s mind, the consulting team recognizes that the company is in

need of an integrated branding plan in this early stage. After coming up with a consistent

brand image, Hobart Saigon can start the essential preparation for the first retailer store opening

within 9 months’ time in the central district of Ho Chi Minh City.

Company background

As mentioned above, Hobart Saigon is a trading company with the mission to bring high-quality

food and beverage produced in Tasmania Island of Australia to Vietnam’s market. It is founded

in 2012 by Mr. Robert Joseph, a retired banker who has 30 years of experience in the industry.

Hobart Saigon currently has two other representatives based in the South of Vietnam. The

company’s short-term goal is to reach out the high-end market in Ho Chi Minh City. Apart from

strategic collaboration with several well-known hotels in the city center such as New World and

Caravelle - who are willing to be the large quantity buyers, Mr. Joseph also plans to open the

first retail store by the end of September 2018. In the long run, Hobart Saigon wants to become

a well-known brand for high-quality imported food with several store chains in the main cities of

Vietnam.

Page | 6

Supplier profile

The products are imported directly from Tasmania, Australia. Huon Aquaculture, SWIFT

Abattoirs, Brown Brothers and Ashgrove are considered as the most appropriate suppliers for

the business since they were already approved by the Ministry of Agriculture. These products

will be imported with different sizes and cuts to improve the flexibility and convenience for both

wholesale and retail customers.

Findings – Discovering the problems

Considered all the environmental external factors by using PEST Analysis and Porter’s Five

Forces, the factors contributing to the main operational problems of Hobart Saigon are revealed

in the following paragraphs.

PEST Analysis

1. Political

Political factors reflect how the Government uses policy to control the economy or a specific

industry, which placed significant influence on a corporation. According to Australian Trade and

Investment Commission (n.d.) in 2017, Vietnam is creating a great opportunity for Australian

meat exporters since tariffs are reducing to 0%. However, there is an unfavorable legislation

because fruits and vegetables are banned to be exported to Vietnam (Vidot 2015). Thus, the

Hobart Saigon should take into further consideration whether they should include ‘cherries’ in

their product portfolio.

Page | 7

2. Economic

The economic components are used to evaluate the performance of a nation’s economy which

directly affects an organization in the long run. A research on Euromonitor International (2016)

reveals that Vietnam has a healthy GDP growth rate of 5.9% during the last five years.

Furthermore, Vietnam’s GDP of $200 billion is forecasted by World Bank to increase to a trillion

dollars. In other words, annual income is expected to reach $18,000 in 2035 (Hoang 2016).

3. Social

Businesses can take advantage of Vietnam’s huge population of over 90 million people.

Interestingly, more than 50% of total population is young people whose age is under 30 and

Nielsen (2010) indicates that it is a sign of increasing purchasing power. Moreover, AmCham

Vietnam (2013) finds out that Vietnam has the highest growth rate of middle-income class in

Asia and this figure will be double by 2020, which opens opportunities for business development

as Vietnam consumers are getting ‘richer’.

4. Technological

The Telegraph (2017) emphasizes that internet has changed the whole retail industry. In the

past, consumers went to the store to buy things but now with the help of internet, they can easily

do their shopping at home without the moving around. Therefore, businesses can use internet

as a useful tool to understand consumer behavior and improve their shopping experience to

encourage consumers to buy more.

Porter's Five Forces

This Porter’s Five Forces analysis takes into account all the aspects affecting Saigon Hobart

when entering food and beverage market in Ho Chi Minh City.

Competitive rivalry - High

There is intensive competitiveness in the high-end food and beverage industry. Not only

importing companies participate in the competition but also the high-quality local vendors do.

For instance, the largest multi-industry cooperation in Vietnam - VinGroup recently launched the

VinEco brand providing high-quality fresh food for consumers. Other newly-established ventures

such as Langfarm, Dalat Hasfarm, etc. also joined this market segment, which increase the

level of competitiveness.

Page | 8

Supplier power - Medium to High

The nature of trading business remarkably depends on sourcing agreements, which means the

suppliers have significant power over Hobart Saigon. Once the partners stop providing products,

the company will face challenges. Since it is now in the early start-up stage, customers are not

so familiar with products from any particular supplier yet. In other words, suppliers can be

substituted, pulling the bargaining power lower. However, the power will undoubtedly increase

by time.

Buyer power - Medium to High

Although the market population is huge, Hobart Saigon only targets at the niche segmentation.

The buyers include larger quantity buyers (restaurants/ hotels) and household consumers, who

have various store options to switch when buying food and beverage. Hence, their purchasing

power is relatively high.

Threat of substitution - Medium to high

In the context of trading business, Australian products can be alternatively replaced by other

foreign products, such as United States, Europe, and other Asian developed countries such as

Japan and Korea. With free-trade agreement, it is easier for these products to be imported in

Vietnam.

Threat of new entry - Medium

If other newly-established companies decide to import Australian products in the same category

to distribute in Ho Chi Minh City market, chances are that they may replicate the business

model of Hobart Saigon.

To summarize the PEST analysis and Porter’s five forces, key areas that the next parts need to

concentrate on as the following:

• Due to competitive rivalry, it is strongly recommended to polish the label and package of

the product to stay differentiated from the rest of the market.

• Given that the supplier and buyer power, threat of substitution is medium to high, it is

important to look at the brand image to bring more competitive advantages over

substitute products and minimize the negative impacts from suppliers/buyers to the total

business sales.

Page | 9

Conclusion – Defining the problems

Problem 1: Importing products are lack of trusted labeling and packaging

First and foremost, the product portfolio needs to meet the consumer trend and demand.

According to Euromonitor International (2016), consumers nowadays are paying more attention

to the country of origin when buying products. As a matter of fact, the labeling should give

detailed information about the supplier name where the products are sourced from. The farming

process and the trading company should also be mentioned. Additionally, there is a rising trend

of health-consciousness driving demand for healthy products. In other words, it is essential for

the core benefits of Tasmanian products to be well-known for healthy products. Furthermore,

BMI Research (2015) and Koning, Crul, Wever and Brezet (2015) also demonstrated that

Vietnamese consumers have high demand for speed, convenient and comfort products and

services. As a result, Hobart Saigon needs to strongly concentrate on the distribution channels,

transportation method and storage conditioning, which enables the speed-to-markets and earns

more market share. More notably, Vietnamese family-oriented culture promotes dinner gather at

home, which calls for designing outstanding packaging to inspire the consumers to buy the

ingredients to cook at home.

In a nutshell, to address the concerns above, Hobart Saigon needs to focus on the labeling and

packaging to gain the attention of the niche market segment.

Problem 2: Low consumer awareness of Tasmania products

Among two drivers encouraging Hobart Saigon to develop in Vietnam food industry, the

optimistic growth rate in food consumption demand and mass grocery retailers should be

mentioned in the first place. It is predicted that the total food consumption in Vietnam would

increase by the compound annual rate of 18.6% from 2014 to 2019, and the mass grocery

retailer selling growth would annually increase by 11.5% until 2019 (BMI Research, 2015).

Thus, due to its forecasted number of purchasers, the mass retailers could be considered as a

potential option for Hobart Saigon. Moreover, Vietnamese consumption in food and beverage is

highlighted to remain the stable growth rate of 55% (Amcham Vietnam, 2017). In brief, the

foreseen growth rate of Vietnam food industry implies the accumulation of market share, which

could be recognized as an opportunity for Hobart Saigon penetration.

The second reason comes from Vietnamese habits and tastes. Ho Chi Minh City is known as a

paradise of regional and national immigration. It is a result of the rapid development of foreign

Page | 10

investment in Vietnam due to the industrialization (Meyer, K.E. & Nguyen, H.V., 2005), which

leads to an increase in labor demand attracting employees. Consequently, the large number of

people coming from different areas would lead to the diversity in food consumption and cuisine

tastes. Moreover, Vietnamese people in general are receptive customers who are willing to try

new products (Euromonitor International, 2016). Thus, it is apparent that Ho Chi Minh City, with

its diversity in food consumption, could be considered as a potential market for food and

beverage investors in general, and Hobart Saigon in particular.

Apart from these two incentives, it is crucial to identify the core issue of the firm in the very first

stage. Being aware of the huge profit in this potential market, investors have opened businesses

in food industry, which leads to abundant products along with trademarks. In other words, the

main issue that the firm faces is the fierce competition with the others in brand recognition and

identification. Thus, it is vital to increase customer awareness as well as polish product

trademark. Most Vietnamese people are acknowledged that products from Europe, Australia or

America are marked as high-quality. However, they have little awareness of Tasmania and its

superior products. Thus, in order to gain the market share, one of the fundamental steps is

raising customer awareness and polishing the brand in order to later generate sales. Therefore,

this report will focus on developing a branding strategy as a prior recommendation to effectively

solve the issue.

Recommendations

Revising the product labeling and packaging

As mentioned in the product portfolio, Saigon Hobart provides superior unique products

targeting high-income consumers, which means the company follows Differentiation Focus

strategy (Porter, 2008). Hence, it is crucial for the firm to guarantee the product quality,

including packaging, labeling, logo recognition and customer service. Moreover, since

increasing diseases are caused by food poisoning, consumers worldwide, especially

Vietnamese consumers nowadays are focusing on healthy and fresh food, which is the

combination of food nutrition and trusted origin. Nevertheless, as mentioned above, Vietnamese

consumers trust products from foreign developed countries. Therefore, it is strategic for Saigon

Hobart to carefully focus on the production line with its provision of a full packaging, labeling,

and outstanding logo related to the product origin, along with ensuring the product quality.

Besides product quality, the healthy feeling and attraction could be accompanied by the logo

colors and product branding images. Thus, briefly, the product strategy should start with

Page | 11

targeting the right customers, followed by operating further stages in order to support the

branding strategy purpose, which would be describe in detail later in this report.

Saigon Hobart is recommended to develop the product portfolio as below.

Product Produc t

Supplier Picture Packaging Transportation Mode

Storage Condition

Salmon Huon Aquaculture

-Wholesaler: 5kg each, banquet packs of both hot and cold smoked fish (approximately 1kg/pack) - Retailer: fillets and either sell as 2kg slice or cut down to 170g portions

Airfreight 2 – 40C

Beef SWIFT Abattoirs

Wholesaler: by boxes (20kg boxes) Retailer: by pieces

Airfreight 2 – 40C

Cheese Ashgrove

Sizes of “rounds” for both wholesale and retail

Airfreight 40C

Cherry

5 kg per punnet Airfreight 2 – 40C

Lamb SWIFT Abattoirs

Wholesaler: by boxes (20kg boxes) Retailer: by pieces

Airfreight 2 – 40C

Wine Brown Brothers

Wholesaler: by case Retailer: by bottle

Airfreight 40C

Exhibit 1. Product portfolio

Building brand awareness through appropriate brand positioning

Following a consistent brand strategy is one of the key recommendations for Saigon Hobart to

increase brand awareness - not only for the brand itself but also for Tasmanian products. In

order to develop a suitable brand positioning for Saigon Hobart, a thoughtful analysis on the

insights of target customers should be carefully considered. With the focus on high-end

segment, the key customers are defined as in Exhibit 2. Specifically, they are urban residents in

big cities (Ho Chi Minh City as their priority) who have high income; they enjoy life and seek for

Page | 12

high-quality products that fulfill their need of an upscale lifestyle. In addition, this type of

customer is defined as the millennials, who are open-minded and eager to learn about new

products or new lifestyle. Pursuing a sophisticated lifestyle, this customer segment is believed to

be the achievers in society, who are willing to share their knowledge through their social circles,

especially digital social channels.

By understanding our target customers and clarify the product portfolio, Saigon Hobart are

recommended to position the brand as ‘The authentic Tasmanian grocery for your exquisite

lifestyle’. This brand positioning links between the benefits and characteristics of the brand

(authentic, original from Tasmania) with the insight of target customers (upscale, luxury,

sophisticated). Any branding and communication activities should consistently follow this

positioning strategy: from brand identity (including: logo development, store display, product

leaflet, etc.) to communication (such as traditional advertising, digital advertising, and PR

articles). At the beginning stage of launching Saigon Hobart, it is crucial for the brand to

emphasis the origin of Tasmania to the customers. Although Australian food products are well-

known for their good quality, the exclusive Tasmanian brand should tie the quality with exquisite

lifestyle to approach our target customers.

Age range 20-35

Location Big cities of Vietnam (firstly Ho Chi Minh City)

Occupancy White-collar workers, expats

Income $1,000 - $3,000 per month

Household size 2-4 family members

Characteristics Health-conscious, prioritise convenience, prefers foreign products

Exhibit 2. Consumer profile

Page | 13

Developing Marketing Communication Plan to reach target customers

The launching stage requires heavy investment on communication activities. These activities

are the tools to bring our brand positioning into practical channels. To reach out customers,

Hobart Saigon could consider 3 main types of activities in their communication plan.

Traditional advertising

Traditional channels include TV commercials and Print ads, as well as other Point of Sale

materials. Hobart Saigon as a luxury grocery store could focus on airing their Print ads on

lifestyle and travel magazines to communicate with the upscale people. Point of Sale materials

such as leaflet, monthly product booklet should follow consistent branding guidelines (following

logo guidelines with premium look and feelings). TV commercials are massive investment for

media airing, it is suggested that Hobart Saigon to skip this channels; however, they can

consider TV channels in the next stage when the financial status becomes more stable, rather

than during this launching phase.

Digital advertising

Recently, consumers use apps and social media to check out restaurants (Euromonitor

International, 2016). Digital channels include all online communications, especially on social

networks where Hobart Saigon stands a high chance of reaching their target customers.

Facebook fanpage with paid post- boosting as well as instream videos and banners on local

websites are some activities Hobart Saigon can take into consideration. To develop the precise

media plan, Facebook insight analysis and weekly report for local website should be developed

by media vendors to ensure that Hobart Saigon keeps tracks and adjust media cost accordingly.

Public Relations

PR activities are crucial for the launching phase of every business, especially in order to build

the consumer awareness about Tasmanian food products. KOLs (Key Opinion Leaders),

content forum seeding and PR articles are some potential activities. Those are basic PR tools to

build brand awareness during launching phase – when brands need to communicate or educate

on new concepts to customers. For the case of Hobart Saigon, the concept of premium luxury

Tasmanian food products should be introduced to target customers by people they follow (the

KOLs) or by word of mouth (forum seeding) and general information on magazines (articles).

Page | 14

Cost Analysis and Action Plan – Delivering the consulting project

To implement the proposed strategy, Hobart Saigon is consulted to follow the Media timeline as

shown in Exhibit 3 below.

Exhibit 3. Media timeline

Moreover, logistics and retail store set-up activities are adjusted based on the branding plan.

Logistics and Warehousing

Firstly, consumer trend is convenient, time-saving and comfort purchasing, Hobart Saigon

should focus on airfreight and storage condition, which provide customers flexible and in-time

products. Moreover, as technology is rapidly developed, Hobart Saigon should also invest in

online shopping with friendly interface to provide a time-saving solution for target customers.

Secondly, the company needs to develop a coherent plan of logistics and distribution channels

of their products. As airplane is determined to be the main method of goods shipment, the

company’s warehouse should be located only 1km away from Tan Son Nhat Airport. This helps

to preserve the products at 2-40C at night before delivery to the destinations in the next morning.

Distributing products through both wholesale and retail channels, Hobart Saigon plans to use

3rd party logistics: TECS Express Company. This helps to deal with customs clearance, storage

and finished products delivered from their warehouse to the city center where their retail store

and partner hotels are located.

Page | 15

Retail channel

Since we attempt to polish Saigon Hobart’s luxury reputation and image, it is crucial to

consciously select and apply suitable retailing model, especially learn from other existing

retailers in Vietnam. With the premium products imported from Australia targeting high-income

customers, it is in the same segment with the well-known retailer Annam Gourmet. Their

concept is selling high-quality imported goods in Vietnam from Europe. They provide a diversity

of foods and beverages for instances, beef, cheese, vegetables, fruits, candy, etc. They

established four stores in HCMC and 1 store in Hanoi. All of their stores are opened in a

crowded and attractive location, which significantly increases the customer accessibility. Thus,

relating our products and targets, it is reasonable to select a location in the city center.

1. Rent and Operating cost

a. Renting cost

i. Location: District 1

ii. Street: Tran Hung Dao, Nguyen Cu Trinh, etc

(a two-way street would be much more favorable)

iii. Acreage: width (8-10m) / length (17-20m)

iv. Price: 4500 – 8000 USD / month

b. Utilities security deposit for the rental lease (3-6 months, could be negotiated):

13,500 – 48,000 USD

2. Miscellaneous Operating Expenses

a. Water expense: 150 USD / month

b. Electricity: 1500 USD / month

c. Telephone expense: 50 – 70 USD / month

d. Staffs

- 5 sales (250 USD / month – first & second shifts)

- 1 supervisor (400 USD / month)

- 1 accountant (350 USD / month)

- 2 securities (200 USD / month)

3. Maintaining marketing: 500 USD / month

This expense is used for monthly marketing (printing discount ads, flyers, standees, etc).

* Further operational costs are estimated in Appendix 3.

Page | 16

References

AmCham Vietnam 2013, ‘Vietnam’s middle class set to double by 2020: BCG’, AmCham Vietnam, viewed 21 August 2017, <http://www.amchamvietnam.com/vietnams-middle-class-set-to-double-by-2020-bcg/>

Amcham Vietnam, 2017. Vietnam Consumers Trends 2017. Infocus Mekong Research.

Australia Trade and Investment Commission, n.d., ‘Food And Beverage To Vietnam’, Australia Trade and Investment Commission, viewed 21 August 2017, <https://www.austrade.gov.au/Australian/Export/Exportmarkets/Countries/Vietnam/Industries/food-and-beverage>

BMI Research 2015 ‘Vietnam Food & Drink report: includes 5-years forecasts to 2019’, London, United Kingdom, www.bmi research.com.

BMI Research 2015 ‘Vietnam Food & Drink report: includes 5-years forecasts to 2019’, London, United Kingdom, www.bmi research.com.

BMI Research, 2015. Vietnam Food and Drink Report, includes 5-year forecasts to 2019. A Fitch Group Company, pp.7.

Deloitte ‘Retail in Vietnam, Emerging market, emerging growth’.

Deloitte ‘Retail in Vietnam, Emerging market, emerging growth’.

Euromonitor International 2016 ‘ Consumer lifestyles in Vietnam’, Passport.

Euromonitor International 2016 ‘ Consumer lifestyles in Vietnam’, Passport.

Euromonitor International 2016, ‘Vietnam: Country Profile’, Euromonitor International, viewed 21 August 2017, < http://www.euromonitor.com/vietnam-country-profile/report>

Hong, A 2016, ‘World Bank: Vietnam able to reach US$18,000 annual income by 2035’, VnExpress International, viewed 21 August 2017, <http://e.vnexpress.net/news/business/economy/world-bank-vietnam-able-to-reach-us-18-000-annual-income-by-2035-3361956.html>

Johannes Cornelis Brezet 2015 ‘Sustainable consumption in Vietnam: an explorative study among the urban middle class’, International Journal of Consumer, Vol.39, pp. 608-618.

Jotte Ilbine Jozine Charlotte de Koning, Marcel Rudolphus Maria Crul, Renee Wever and Koning, J I J CCrul, M R M Wever, R Brezet, J C 2015 ‘Sustainable consumption in Vietnam: an explorative study among the urban middle class’, International Journal of Consumer, Vol.39, pp. 608-618.

Meyer, K.E. and Nguyen, H.V., 2005. Foreign investment strategies and sub‐national institutions in emerging markets: Evidence from Vietnam. Journal of management studies, 42(1), pp.63-93.

Page | 17

Nielsen 2010, ‘Vietnam Is Heating Up’, The Nielsen Company, viewed 21 August 2017, <http://www.nielsen.com/content/dam/corporate/t3/vietnam/reports/Nielsen_PFM%20Presentation_English.pdf>

The Telegraph (2017), ‘How The Internet Of Things Is Changing The Retail Landscape’, The Telegraph, viewed 21 August 2017, <http://www.telegraph.co.uk/business/digital-leaders/horizons/how-internet-of-things-is-changing-retail-landscape/>

Vidot, A 2015, ‘Vietnam Closes Door On Australian Fruit And Vegetables’, ABC News, viewed 21 August 2017, < http://www.abc.net.au/news/rural/2015-01-05/vietnam-ban-in-force/6000770>

Page | 18

Appendices

Appendix 1: Business Consulting Engagement Form

BUSM4164 Business Consulting Dr. Victor Kane

Business Consulting Engagement Form

Team Members:

Name Student ID

Bach Ngoc Lan Anh S3357525

Nguyen Thi Phuong Thao S3131652

Nguyen Quang Thong S3259052

Nguyen Le Minh Tram S3619122

Luu Mong Van S3373014

Client Organization: Hobart Saigon Trading Co. Pty Ltd Organization Address: 21 Maning Ave, Sandy Bay, Tasmania 7005, Australia Contact Name: Robert Joseph Contact Title or Position: Director Contact Phone Number: +61 418 443 665 Contact Email: robert@hobartsaigon.com

Summary of Project

Briefly describe the nature of the project and the goals or objectives expressed by the client.

Hobart Saigon Trading Co. Pty Ltd – a Tasmania, Australia based company focused on importing/

exporting of Tasmanian products (fish, cheese, beef, lamb, wine, etc). The goal is to act as a

wholesale to up – market establishments and have a retail presence in selected districts in HCM (D1,

D2 and D7).

Requirements:

▪ Research the external and internal environment of Vietnam.

▪ Recommend marketing techniques to build brand awareness of Tasmania products and reach

consumers in the retail space.

Page | 19

Appendix 2: Pricing Strategy

Since our target is high-income customers, who require high-quality products, it is apparent that

the product price should follow the Premium Price Strategy (Figure 1). In other words, the

product price should be marked as premium to cover the R&D research, storage and high-

quality material costs.

(Source: businesssetfree.com)

Page | 20

Appendix 3: Cost Analysis

Item Cost/kg ex Supplier

Freight/kg (air)

Freight LCL

Freight 20'

Cont Kg/month

(Wholesales) Kg/month

(retail) Total

demand Salmon HOG 10 4

2,000

500

2,500

Salmon Fillet 12.5 4

500

250

750

Hot Smoked 24 4

500

150

650

Cold smoked 24 4

750

200

950

Beef 22 4

5,000

1,000

6,000

Lamb 22 4

2,000

500

2,500

13,350

Cost/bottle ex

supplier Bottles/month (Wholesales)

Bottles/month (Retail)

Wine 12 1.33 0.6 1000 500 1500

Page | 21

Appendix 4: Income Statement

Page | 22