PERSPECTIVES ON INTERNATIONAL MARKETING AND GLOBAL BRANDING FOR PANGASIUS MARKET

1. PERSPECTIVES ON INTERNATIONAL MARKETING AND GLOBAL BRANDING FOR PANGASIUS MARKET

2. SESSION 1 INTRODUCTION TO INTERNATIONAL MARKETING

3. Core Marketing Concepts Products and Services Needs, wants, and demands Core Marketing Concepts Markets Value, satisfaction, and quality Exchange, transactions, and relationships

4. International marketing • The performance of the business activities that direct the flow of a company’s goods and services to consumers or users in more than one nation for a profit.

5. INTERNATIONAL MARKETING • application of marketing principles to across national boundaries. • refers to marketing carried out by companies overseas or across national borderlines.

6. A stakeholder approach • focus on the roles and interaction of individuals, groups, and organizations within and around the firm, who can impact the firm or be impacted by its activities • management philosophy that regards maximization of the interests of its all stakeholders as its highest objective.

7. Why adopt stakeholder mindset? • To identify issues that really matter • Drives toward understanding different “stakes” that are involved • Enable us better categorize and define problems • Utilisea “sniper approach” (targeted communicationto specific market)

8. Exercise 1: Group Discussion 1. Stakeholder Identification • Who are our KEY stakeholders - Customers, Retailers etc. 2.Stakeholder Profiling • What are their issues, concerns? • What are their perceptions? b) What benefits are they looking for?

9. Pangasius: Towards Sustainability • Defining standards and improving environmental and social performance • Certification schemes help move towards improvement, but is a poor communication tool • CSR communication strategy is highly recommended and can be applied

10. CSR Communication Principles • Involvement and dialogue with stakeholders • Transparency and openness: show improvements but also demonstrate areas that are still lacking • Consistent reporting to stakeholders • Follow-up on stakeholder inputs and comments • Recognize existing problems, ask stakeholders for inputs • Show good faith in trying to become more sustainable, with its opportunities and challenges

11. Case Study: Nike and Sweatshops • 1991: Jeff Ballinger reports on Nike low wages and poor working conditions in Indonesia • 1993: The New York Times, The International Herald Tribune and The Economist also reported on Nike's Asian factories. • 1994: Further bad press in The Rolling Stone, The Boston Globe, The Los Angeles Times, The Chicago Tribune and a book by Donald Katz called Just Do It. • 1997: Anti-Nike rallies held in 50 US cities and 11 other countries • 1998: Nike sales begin to be significantly affected • Phil Knight (CEO): “The Nike product has become synonymous with slave wages, forced overtime, and arbitrary abuse”

12. What did Nike do? • At first, Nike adopted defensive stance and rhetoric, but this strategy was unsuccessful • Starting 1998, Nike adopted a new approach by recognizing the problems raised by activists and committing to solve them • Issues are being addressed, code of conduct upgraded: • Improving working conditions • Efforts to reform the shoe industry • Participation and leadership in a range of multi-stakeholder coalition to find solutions • Independent monitoring and auditing of factories • Consistent reporting to stakeholders (CSR and Sustainability Reports)

13. Learning from Nike • Nike’s rebuilding of its reputation was a long and difficult process with many ups and downs • Stakeholders were skeptical (some still are) about Nike’s commitment • But Nike strived to continue improving working conditions, at its own pace • The company remained consistent in its communication and engagement with stakeholders • After a few years, activist acknowledgement begin to show, although some issues still remain • Over the years, Nike has become a recognized leader for applying best practices in the shoes and apparel industry

14. Applications for Pangasius • Building reputation is a long and arduous process (it took about 5-10 years for Nike) • Being defensive, even when you are right, does not pay • Stakeholders may be skeptical at first and may have expectations that are too high, do not let this put you down • Recognize problems and make efforts to solve them in good faith. In the long run, acknowledgement will come

15. Pangasius: Addressing Consumer Concerns through Marketing • Main Issue: Product quality and safety • Anti-pangasius campaigns has created food scares in Europe and US • Untrustworthy product • Poor quality • Not so safe for consumption • Labels did not help much to improve reputation among consumers • Be customer-focused: listen and understand their real concerns • Use marketing and branding strategies and approaches to build the Vietnamese pangasius brand and reputation

16. SESSION 2 INTERNATIONAL MARKETING ENVIRONMENT

17. Foreign environment (uncontrollable) Political/legal forces Economic forces Domestic environment (uncontrollable) Competitive structure (controllables) Political/ legal forces Cultural forces Competitive forces Economic climate Geography and infrastructure Level of technology Structure of distribution Environmental uncontrollables country market A Source: Philip R. Cateora. International Marketing. Ninth edition Source: Philip R. Cateora. International Marketing. Ninth edition Source: Philip R. Cateora. International Marketing. Ninth edition Source: Philip R. Cateora. International Marketing. Ninth edition International Marketing Environment

18. International environmental forces • Marketing controllables: The successful manager constructs a marketing program designed for optimal adjustment to the uncertainty of the business climate. • Domestic uncontrollables: This includes home-country elements that can have a direct effect on the success of a foreign venture: political forces, legal structure, and economic climate. • Foreign uncontrollable: The problem of uncertainty is further complicated by a frequently imposed “alien status” that increases the difficulty of properly assessing and forecasting the dynamic international business climate.

19. The International Trade System Economic Environment Political-Legal Environment Cultural Environment Key Influences in the Global Marketing Environment

20. Trends in Fish and Seafood in Europe Market overview

21. PANGASIUS EXPORTS TO EU IN 2014:

22. PANGASIUS EXPORTS TO EU IN 2014 Pangasiusexports to EU hit US$344.3 million, down 10.7%year on year. - Export value to 4 single markets posted year-on-year decline: + Spain: US$72.48 million (-5.4%) + The Netherlands: US$58.73 million (-2.2%) + The UK: US$40.87 million (-0.1%) + Germany: US$39.76 million (-11.9%)

23. PANGASIUS EXPORTS TO EU IN 2014: MARKETS, OPPORTUNITIES & CHALLENGES

24. PANGASIUS EXPORTS IN JAN-JUN 2015 • - VN’s pangasius was exported to 128 markets, 9 market lower than the same period of last year. • - Pangasius exports hit US$749.9 million, down 9% year on year. • - Top 8 largest markets included the US, EU, China, ASEAN, Mexico, Colombia. Canada and Australia made up 72.15% of total export value. • - Pangasius exports to some markets posted slight rise: the US (+4.8%); China(+50.7%); Canada (+2.9%). • Pangasiusexports to some markets posted the year-on • year reduction: EU (-17.6%), ASEAN (-4.1%); Mexico • (-25.9%). Colombia (-13.2%).

25. THE STRUCTURE OF PANGASIUS EXPORTS, JAN-JUN 2015

26. PANGASIUS EXPORTS TO EU 2015 • In Jan-Jun 2015, pangasius exports to EU hit US$142.6 million, occupying 19% of total export value and felling 17.6% year on year. • 4 biggest single markets in EU block: • Pangasius exports since the early 2015 have been affected by the devaluation of EUR that fell to the record low against USD in the past decade.

27. PANGASIUS EXPORTS TO EU, JAN-JUN 2015 • Exports to the UK up 41% • Pangasiusexports to the UK hit US$25 million, up 41% year on year • In QI&II/2015, exports to the market reported the positive growth in which exports posted the sharpest growth of 97.8% year on year in Jan 2015. From February to May 2015, exports rose 12-60.5% year on year. • The UK is the 4th largest importer of pangasius and catfish among EU block behind Spain, the Netherlands and Germany.

28. PANGASIUS EXPORTS TO EU, JAN-JUN 2015 The Netherlands – the largest importer among EU block - Pangasius exports to the Netherlands hit nearly US$27.99 million, down 7.5% year on year. - VN’s pangasius & catfish exports to the market in QIV/2014 down 23 percent from QIII/2014 and continued to drop 6% in QI/2015. This is the sharpest drop in the recent 3 years. - VN’s pangasius sales made up 82.6% among Netherlands’ total import value. The Netherlands also imports pangasius from some European countries such as Belgium, the UK, Germany and even from Indonesia.

29. PANGASIUS & CATFISH IMPORTS INTO EU • 2015: monthly import volume continuously dropped. • Average prices by Euro/kg markedly increased. However, prices by USD decreased due to euro devaluation. • Importer reduced purchasing and tried to lower prices.

30. PANGASIUS & CATFISH IMPORTS FROM VNINTO EU

31. Market overview What Are the Drivers for Consumption of Fish and Seafood?

32. Environmental Scanning

33. Elements of SWOT Analysis

34. Strategies of SWOT Analysis

35. Strategies of SWOT Analysis

36. Exercise 2 : Group Discussion Each team to conduct a SWOT analysis on the current market for Pangasius Fish in the Global market

37. Exercise : Group Discussion Using the SWOT Analysis, each team is to discuss the key issues that need to be addressed

38. SESSION 3 INTERNATIONAL MARKETING MIX - PRODUCT STRATEGY

39. Product Offering • A decision must be made about which is the more appropriate of the two product design strategies – standardization or customization • Standardization means offering a common product on a national, regional and world basis • Customization means adaptation, that is making appropriate changes in a product to match local perspectives

40. Product standardization • Primarily industrial products • Convergence and similar tastes in diverse country markets • Marketing to predominately similar markets • Standardized products marketed by competitors • Scale economies in production, marketing and R&D

41. Product Customization • Differences in technical standards • Primarily consumer and personal-use products • Variations in consumer needs and tastes • Variations in conditions of use • Variations in ability to buy – differences in income levels • Strong Cultural differences

42. Environmental factors influencing the balance between standardization and adaptation

43. Standardization and adaptationof the international marketing mix

44. The product life cycle

45. PLCs of different countries for a specific product

46. Global Product and Communication Strategies

47. Global Product Strategies • Straight Product Extension: • Marketing a product in a foreign market without any change. • Product Adaptation: • Adapting a product to meet local conditions or wants in foreign markets. • Product Invention: • Creating new products or services for foreign markets.

48. Exercise 3 : Group Discussion Each team to propose different global product strategies for Pangasius Fish Market

49. SESSION 3 INTERNATIONAL MARKETING MIX PRODUCT STRATEGY (GLOBAL BRANDING)

50. Branding • Brand image • Quality, innovation, superior service, customer satisfaction, value • Brand extensions • New product introduction at lower advertising expenditures