International

Marketing
Chanh Thu Fruit Import-Export Co.,
Ltd entering the US market

PHAM THUY LINH

11196343
 TABLE OF
CONTENTS
01.
02.
ABOUT CHANH THU

03.
ENTRY MADE

04.
STP MODEL

05.
PROMOTIONAL
STRATEGY

REFERENCE

Table of Contents 2
01.
About Chanh Thu
Chanh Thu Fruit Import - Export Group Joint Stock Company, previously
known as Chanh Thu Co., Ltd (in Ben Tre province), is a business that has
been engaged in the area of exporting fresh and frozen fruits for more
than 20 years of expertise. Chanh Thu Joint Stock Company, which has
production facilities in the provinces of Ben Tre, Khanh Hoa, and Dak Lak,
has the ability to supply more than 300,000 tons of fruits of various kinds
each year for export to the markets of the United States of America,
Japan, Australia, Europe, and China., Korea... This qualifies the packer,
who has received certification for food safety in accordance with the
FSSC 22000 standard and "packer code" given by the Government of
Vietnam, to export fresh fruits to the markets in the United States of
America, Australia, and New Zealand.
Mission: Vision:
Customers: Provide products and Importing and exporting fruit as
services with the best quality. a means of meeting the
Employees: Sustainable and growing demand of consumers
effective development to add in the society as a whole, so
long-term value for employees. contributing to the expansion of
Farmers: Closely linked and the economy and raising the
advanced technical support to amount of revenue the firm
develop safe planting areas, brings in.
improve product value and
quality of life of farmers.
Society: Combining the interests
of enterprises with the common
interests of society, contributing to
environmental protection and
public health.

About Chanh Thu 3

฀ENTRY
MODE

02
The recommended
entry mode and
distribution channels
to the target customers
2.1. THE
RECOMMENDED
ENTRY MODE
Chanh Thu could seek direct export
through agents as an entrance method for
the U.S. market. This export option enables
Chanh Thu to sell its goods directly to a
foreign import agency or buyer. This
independent corporation represents
Chanh Thu Inc. while selling to clients.
Typically, it will not see the goods or stock
it. It earns a commission, often 5–10
percent, paid by the manufacturer
according to an agreement

The below factors are analyzed and evaluated before Chanh Thu
decided the final entry mode:
In terms of export mode, Chanh Thu opted direct export through
agents.
Direct exporting happens when a producer or exporter sells directly to
a foreign importer or customer. Agent is an independent firm that
sells to clients on the manufacturer's behalf (exporter). Typically, it will
not see the goods or stock it. It receives a commission (usually 5–10
percent) from the manufacturer, as agreed upon in advance.

Entry mode 5
 ฀Internal Factor

CEO Ngo Tuong Vy established Chanh Thu Co Ltd. Over the course of its

Firm Size almost 20 years in business, Chanh Thu Company has built a solid
reputation for Vietnamese fruit across the globe. CEO Ngo Tuong Vy
claims that Chanh Thu can produce over 20,000 tons of goods annually. In
2018, the firm's revenue hit 400 billion VND. Eight months into 2019, the firm
has already raked in almost 300 billion VND in sales. Furthermore, Chanh
Thu spent heavily in running a new 99,802 m2 facility in DakLak province,
with a processing capacity of 70,000 tons/year. The Vietnamese
government's definition of a small and medium-sized enterprise (SME)
includes Chanh Thu. This means that export strategies are likely to be
Chanh Thu's first choice for breaking into international markets.

Despite being a small business, Chanh Thu has had some international

International success with exporting its goods to places like Japan, Australia, Europe,
China, and Korea. As can be observed, Chanh Thu has earned worldwide

Experience
expertise by operating in foreign markets, adopting export modes, which
decreases the cost and uncertainty of supplying a market, and enhances
the possibility of enterprises committing resources to overseas markets.
The direct export approach has been very fruitful for Chanh Thu in these
nations, and this has opened doors for the firm in the United States. Chanh
Thu is able to exert more influence over the export process and generate
more revenue thanks to this direct export method.

Increased consumer affluence and year-round demand for fresh produce

Product compel merchants or their agents to develop purchasing locations in both

domestic and international growing regions. Some shops have year-
round contracts with packers of fresh fruits and vegetables, who may in
turn have contracts with producers. Contracts and high-volume
purchasing techniques allow packers to acquire enough amounts of
specific items.
To guarantee that fresh fruits and vegetables are available every week of
the year, large fruit and vegetable packers may get into contracts with
farmers in many producing areas. These packers often only deal with
farmers in places with a dense population. In addition, they contract
mostly with the larger producers, especially in places with concentrated
output. Some packers assure supply by cultivating their own crops. Large
merchants and packers are reluctant to acquire items directly from a
single, small-scale producer, particularly if the grower is located in a
distant producing location.

6
฀External Factor
Despite the fact that both Vietnam and the United States have
high-context cultures, there are still considerable variations in
industrial processes, language, income, etc. between the home
Sociocultural
nation and the host country. Chanh Thu should choose for low-
risk entrance methods, such as agents or importers, due to the Distance
vast gap in terms of culture, economic systems, and business
customs.

In addition to the fact that the United States is not truly a

politically stable nation, its economy is experiencing a recession.
According to Trading Economics global macro models and Country risk
experts' forecasts, the U.S. gdp per capita was $63,028 in 2020, a
decrease of 3.18 percent from 2019. 2019's GDP per capita in the
United States was $65,095, a 3.65% rise over 2018. This economic
slowdown in the United States might be due to the spread of
Covid-19. The economic uncertainties may impact Chanh Thu's
export strategy; consequently, Chanh Thu will be safer using
export modes while entering the US market.

In addition to the fact that the United States is not truly a

politically stable nation, its economy is experiencing a recession.
According to Trading Economics global macro models and
Market size and
growth
experts' forecasts, the U.S. gdp per capita was $63,028 in 2020, a
decrease of 3.18 percent from 2019. 2019's GDP per capita in the
United States was $65,095, a 3.65% rise over 2018. This economic
slowdown in the United States might be due to the spread of
Covid-19. The economic uncertainties may impact Chanh Thu's
export strategy; consequently, Chanh Thu will be safer using
export modes while entering the US market.

Despite the United States' enormous fruit market size and

development, competition is intense in the host market. Chanh
Thu would do well to avoid internalization, since such markets are
Intensity of
competition
often less lucrative and so do not warrant substantial resource
investments. Therefore, export mode is a great entry method
given its low risk and low commitment requirements.
฀Desired Mode
Characteristics
As stated before, Chanh Thu is a small and medium-sized enterprise with a high risk aversion.
Therefore, the company will choose export modes over hierarchical modes since the former requires
fewer financial and managerial resources. In contrast, direct modes provide the corporation more
flexibility, allowing it to cancel an agent contract within a relatively short time frame or reimburse
the foreign agent for the lost commission for one to two years (depending on the agent contract).
Direct modes are the most appropriate because Chanh Thu demands less commitment of
resources and control than subsidiaries (or hierarchy) and more than indirect modes, which provide
little or no control over the circumstances under which the product or service is promoted overseas.

Risk Averse
As a small and medium-sized company, Chanh Thu has limited business resources accessible on
the market. Due to the company's exposure to several risks, including financial risk, strategic risk,
reputation risk, liability risk, and the unpredictability of COVID-19, etc., SMEs like Chanh Thu have a
high risk aversion. With a strong aversion to risk, export channels with modest financial and
managerial resource commitments are feasible options. Chanh Thu will be able to export the
natural product to the US market with less resources and money if she uses agents as opposed to
intermediate or hierarchical modes.

Control
Indirect export requires the fewest investments of time and money, but it gives you very little say
over how your firm is run in other markets. Therefore, Chanh Thu may have more command over the
running of the company in terms of finance, credit, advertising, etc., when exporting directly via
agents. Conversely, Chanh Thu is cautious about making large investments because of the scarcity
of accessible resources. These considerations led to the rejection of hierarchical and intermediate
forms.

Flexibility
Chanh Thu is able to enter the worldwide market rapidly and with more flexibility because to the
several export mechanisms available to her. Export modes allow the firm to cancel an agent
contract in a very short period of time. For SMEs like Chanh Thu to thrive in today's competitive
global market, the company must be able to quickly and cheaply adapt to market shifts.
 Transaction-specific
factor
Chanh Thu might feel
confident using direct mode
in the United States because
to the many distributor
intermediates present there.
To put it another way, this
may assist the company
prevent opportunistic
conduct, or "self-interest
seeking with guile," on the
part of its intermediaries. This
means that Chanh Thu may
adopt measures like value-
adding and expanding
internationalization without
incurring excessive
transaction expenses.

As with every firm, there will always be distribution partners that take
advantage of their position. The loss of these other partners was brought
about by their pursuit of economic self-interest at any costs. By having
several viable market middlemen from which to choose, Chanh Thu will be
protected from the opportunistic actions of some of her business associates.
If people aren't out to take advantage of others, they can keep transaction
costs down. For this reason, Chanh Thu sees no need to boost internalization
in favor of more sophisticated export modalities.
2.2. The recommened
distribution channels
There are a variety of
factors to consider before
choosing a distribution
channel:

Type of product. Fruit

is perishable or is
unstable. So that, it
need to be delivered
arrive quickly and in
controlled conditions.
So, a direct distribution
method will be most
suitable
Market. It’s a fact that letting customers buy products from
the company when exporting will cause a lot of difficulties in
the distribution process. Therefore, the company needs to
negotiate to sell these products to the product distribution
agents, creating wider awareness and reducing a large
amount of operational cost for the product through
distribution channels.
Middlemen. Depending on the company’s needs and the
demands on time, a middleman can help distribute products
quickly and efficiently.

So we choose the Distribution 2:

Producer => Business Distributor => Business Customer
 STP
MODEL

03
 STP
Model
Segmenting:
฀Geographic: Rural and urban area in the
USA
Ages: All ages
Reasons to buy:
+ Want to provide more nutrition and more
flavor
+ Lots and lots of fiber
+ Maintain good health.
+ Low in sodium and cholesterol.
+ Affordable fruit
+ Fresh and delicious fruit

Targeting:
When exporting to the United States, Chanh
Thu's goods are also designed to serve American
people in the nation. Since the Covid-19
epidemic, Americans have a tendency to
consume more fruits and vegetables, and their
eating patterns have shifted toward healthier
cuisines. They consume a greater range of
veggies and fruits.
Distribution Channels:
+ General grocery store: These establishments, which account for more than 2 percent of total
product sales, consist of shops in residential areas, supermarkets, hypermarkets, and discount
stores. This category is highly concentrated in terms of both the number of shops and the
number of firms.
+ Shops selling a variety of products and markets: This sector consists of grocery shops
specializing in a certain kind of food or outdoor food markets. In this market sector in the United
States, retailers offering fresh fruits and vegetables have an average market share.
+ Food Service: Approximately one-fourth of the food market is held by the food service sector.
This section consists of food courts, coffee shops, restaurants, hotels, corporate cafeterias,
schools, and so forth. This category is generally serviced by specialist food service wholesalers,
of which only a small fraction deliver fresh produce. Consequently, distributors of fresh fruits and
vegetables have a significant market share in this area.
 High price
Product positioning is a crucial
component of effective marketing. When
evaluating the implications of product
positioning, it is essential to note the
significance of the nation of origin. The
term "Made in Vietnam" will have a
Bad Good
significant impact on how consumers
country country
perceive the quality of Chanh Thu fruits.
image image
In the food area, according to the Q&Me
survey "Country of Origin," 45% of
respondents had a neutral view, 40% had
favorable emotions, and 13% had
negative reactions to Vietnam-made
products.
Low price

According to Amazon's e-commerce website, the

average price of imported fruits from other
European or Asian brands is more than the price of
Chanh Thu's tropical fruit. It is evident that Chanh
Thu fruit now has a considerable competitive edge
over other international companies, enabling the
business to strengthen its brand and reputation in Chanh Thu may overcome this impediment
the eyes of consumers. by highlighting the company's complex
Although the price is modest, Chanh Thu's goods certifications that meet US product safety,
are always of the highest quality, thanks to health and environmental, specialized, and
rigorous input and output procedures that international trade standards. To retain
regulate and synchronize quality. As a Chanh Thu's position in the US market, they
consequence, Chanh Thu products will be must emphasize competitive price, great
desirable in the U.S. fruit market. quality, and Vietnamese region's
distinctiveness.
 04
PROMOTIONAL
STRATEGY
 Promotional
Strategy
Communication objective:
Making contact with potential customers
and commercial associates in the United
States
·Successfully breaking into a new market
and increasing brand recognition for
Chanh Thu's goods requires attracting
the attention of potential buyers.
·Making sure that any rewards offered to
potential clients don't break regional laws
·Inspiring buyers to branch out and try
something different
·Getting people excited about trying out
Chanh Thu's wares so they fall in love with
the brand.
·With the use of cutting-edge media
technologies, Chanh Thu Co., Ltd. is able
to interact with its intended clientele and
win their loyalty.
·Creating dedicated clientele that will
gladly recommend you to others based
on their own positive experience

Promotional Strategy:
Since Chanh Thu Co., Ltd. is a South-East Asian brand that is trying to break into the American
market, promotion is an extremely important part of the overall strategy for exposing the
company to potential clients. The primary objective of this introduction's promotion strategy is
to increase awareness of Chanh Thu Co Ltd. among Vietnamese users in the United States as
well as local individuals in the United States.
As a result of the COVID-19 issue, the majority of offline marketing activities are being delayed,
and it is being anticipated that 2022 will be the earliest available chance for them to be
planned..
 Event Marketing
Chanh Thu Co Ltd. will leverage international food fairs to showcase and market their goods to
distributors, retailers, and consumers. Some worldwide gastronomic events that often occur in
the United States might provide such invaluable prospects. By participating in these expos,
Chanh Thu Co., Ltd. is able to contact not only Vietnamese citizens but also food-focused
enterprises in the United States. In addition to clients, businesses may meet potential business
and product development partners in the same industry. Participation in such an international
environment is a step forward, as it demonstrates that Chanh Thu Co Ltd.'s goods have
completed a rigorous testing procedure on the US market; hence, the likelihood of confirming
product quality is quite high. Chanh Thu Co Ltd. may communicate with media businesses,
therefore marketing its company and its goods to a large audience.
Street food festivals are another method for Chanh Thu Co., Ltd. to reach the local American
populace. Chanh Thu Co Ltd. might offer to support spices used by local cooks participating in
festivals. Boards or standees promoting the Chanh Thu Co Ltd. brand might be positioned next
to these food booths to increase brand recognition.

Sales Promotion
The legislation of the United States rigorously regulates sales and discounts to guarantee that
farmers and other producers are paid fairly. Supermarkets are only authorized to provide
discounts on 25 percent or less of their items. Shops are only permitted to have deals twice a
year between times designated by the government. This includes price cuts and special deals
such as buy-one-get-one-free.
Free will not be permitted in advertising for Chanh Thu Co., Ltd. Furthermore, since the ultimate
price of Chanh Thu Co Ltd. spices is fairly cheap compared to current goods marketed in the
United States, price incentives will not be used as often as other promotions such as free
samples and bulk purchase discounts...

Public Relations
The Association of Vietnamese in the United States hosts many exchange activities where
Chanh Thu Co Ltd. Foods can become an image and media sponsor, sponsor fruit for catering,
and participate in customer appreciation events in addition to events in which the company
will participate in the future.
Paid newspapers in Vietnam are just one method of spreading the word about how much
Chanh Thu Co Ltd. has developed over the years; the company also keeps an eye on American
press publications aimed at Vietnamese speakers in the United States and uses other online
information gateways to reach a wider audience. These pieces will educate locals to
Vietnamese tropical fruit and discuss the increasing availability of Vietnamese goods in the
United States. U.S. consumers' point of view will be reflected in the marketing, which means an
emphasis on cultural relevance.

Direct Marketing
TWhen the items finally make it to the United States, Chanh Thu CoLtd. will announce the latest
export-related developments. Chanh Thu CoLtd. has a website and a Facebook page where
they announce their events. The news should be uploaded in both Vietnamese and English to
provide readers the best possible first impression. In addition, comments on Chanh Thu's
offerings and advertising campaigns may be sent through various channels.
฀Referrence
1. The U.S. Trade Situation for Fruit and Vegetable Products
2. Chuyện về nữ doanh nhân 8X xuất khẩu xoài đầu tiên sang Mỹ
3. Công ty TNHH XNK trái cây Chánh Thu kỷ niệm 10 năm thành lập
4. Chanh Thu's website
5. Lessons from Vietnamese market
6. Công ty XNK trái cây Chánh Thu - Nâng tầm thương hiệu trái cây VN
7. Đưa những trái 'gai góc' vào thị trường khó tính
8. The U.S. Trade Situation for Fruit and Vegetable Products
9. King, Robert P., Michael S. Hand, Gigi DiGiacomo, Kate Clancy, Miguel I.
Gomez, Shermain D.Hardesty, Larry Lev, and Edward W.McLaughlin.
Comparing the Structure, Size, and Performance of Localand
Mainstream Food Supply Chains, ERR-99, U.S. Department of
Agriculture, Economic Research Service, June 2010.
10. US Fruit And Vegetables Market Size And Forecast
11. U.S. Fruit Imports Grew By $8.9 Billion Over the Last Decade to Meet
Rising Demand
12. U.S. Fruit & Vegetables Market Size, Share & Trends Analysis Report By
Product (Fresh, Dried, Frozen), By Distribution Channel
(Supermarkets/Hypermarkets, Grocery Stores, Online), And Segment
Forecasts, 2022 - 2030
13. FUNDAMENTAL FORCES AFFECTING U.S. FRESH PRODUCE GROWERS AND
MARKETERS
14. Fruit and Vegetable Market in US by Product and Distribution Channel
- Forecast and Analysis 2021-2025
15. Climate change is making it harder to grow fruit and vegetables