Marketing Plan for Capilano Honey in Vietnam

This marketing plan explains various business activities of Capilano Honey in Vietnam and helps in achieving desired objectives. It includes Value Analysis, Market Segmentation, Positioning, Product, Price, Branding, and Communication. The report also highlights the challenges faced by the company and its target consumer profile.

International Marketing
Capilano Honey
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Pooja Khemani_JPR

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Table of Contents
Introduction................................................................................................................................2
Value Analysis of Capilano Honey........................................................................................2
Market Segmentation and its Tools........................................................................................3
Geographic segmentation...................................................................................................4
Behavior.............................................................................................................................4
Demographic......................................................................................................................4
Lifestyle..............................................................................................................................5
Challenges for Capilano Honey.........................................................................................6
Target Consumer Profile........................................................................................................7
Positioning..............................................................................................................................7
Core values of Capilano Honey.........................................................................................7
Brand Image...........................................................................................................................7
Positioning Strategy in Vietnam........................................................................................8
Positioning Map of Capilano Honey..................................................................................8
Justification............................................................................................................................9
Positioning Statement.............................................................................................................9
Product...................................................................................................................................9
Adaptations by Capilano Honey........................................................................................9
Differentiation of Product................................................................................................10
Comparison between Capilano Honey and Manuka Honey............................................10
Price......................................................................................................................................10
The potential risk that impacts the Pricing for Market Penetration Strategy...................11
Branding and Communication.............................................................................................11
Promotion of Capilano Honey.........................................................................................11
Communication Strategy..................................................................................................11
Potential Risk of Advertisement......................................................................................12
Building strong brand.......................................................................................................12
Expected Outcomes..............................................................................................................13
Conclusion................................................................................................................................13
References................................................................................................................................15

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Introduction
A marketing plan is a complete blueprint that summaries marketing and advertising efforts of
a business for the coming year. It explains the activities of business involved in achieving
specific objectives of marketing in a fixed time frame. This report is being prepared in order
to prepare a marketing plan for Capilano Honey for the Vietnam market. This marketing plan
will explain various business activities of Capilano Honey in Vietnam and will help in
achieving desired objectives. Various business activities that will be explained are Value
Analysis, Market Segmentation, Positioning, Product, Price, Branding, and Communication.
Since 60 years, Capilano Honey has developed from modest start to being one top supplier of
honey, enjoying a desirable status for product invention, best practice processes, and quality
honey. Capilano honey has the ability to produce honey of around 45,000 tonnes every year,
providing honey to approx. 30 countries across the world. All this got possible just because of
the Capilano’s dedicated and hardworking supply team which involves approx. 500
Australian families of Beekeeping (Capilano, 2018).
The leading companies of honey in the market of Vietnam are VINAPI and Manuka Honey.
Value Analysis of Capilano Honey
The company ensures that it offers the best quality of honey to its customers by considering
their health and fitness. Capilano Honey is very much focused towards their target and trying
to appeal the customers (Capilano, 2018). The honey of Capilano is different from other
companies in the market because there will offer the best quality of honey at reasonable
prices where on the other side the competitors such as Manuka Honey offer its products at
high price. With the support of the devoted customer relationship management Capilano
Honey was able to attain a customer satisfaction among current customers and it will also

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help in attaining good brand equity among the possible or potential customers in the Vietnam
Market.
The prices of the Capilano Honey are less as compared to its competitors. It tries to offer
honey at a low price as possible. In the market of Vietnam the strategy of the company is to
start offering products at lowest price i.e. ₫ 20 to 30 depending on the type of honey such as
Capilano Natural Australian Honey, Capilano Australian Mountain Honey, Capilano
Australian Forest Honey. Whereas the major competitor of the company i.e. Manuka Honey
offers honey in Vietnam offer products at a higher price.
Honey bees are present on the planet a lot longer than a human being. Honey is considered as
an ancient food used by man as a delicious food. It has been utilized as a sweeter ingredient
before the extraction of sugar from sugar cane. There are various benefits of using Capilano
Honey as it is a solution of concentrated carbohydrate comprising a mixture of simple and
compound sugars. The three main sugars are Sucrose, Glucose, and Fructose. Capilano
Honey contains 0.8-15% sucrose, 28-36% glucose, and 36-50% fructose based on the floral
source (Capilano Honey, 2018).
Sucrose is a common white sugar which is extracted from sugar beet or sugar cane.
Glucose delivers a maximum of the efficient energy to the body's cell, including the
brain.
Fructose is sugar which is normally found in fruits (Andrews, 2018).
Market Segmentation and its Tools
A process of dividing a potential customer’s market into different segments, or groups
depending on different characteristics is known as Market segmentation (McDonald, 2012).
The segments that are made are possessed of customers who will reply likewise to strategies
of marketing and who share common traits like locations, needs, or similar interests. The

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market segmentation is categorized into two parts i.e. Macro segmentation and Micro-
segmentation
Micro-segmentation – This practice comprises dividing consumers into four groups i.e.
geographical, behavior, demographical, and lifestyle (Monk, 2018).
Geographic segmentation – It is a general strategy used when a business provides its
services in a particular area. In order to divide the market according to this segment, a
business can make use of Geographic/ZIP Code Research. This type of tool is useful for those
who are trying to attain demographic information, particularly those identifying to get a
normal feel for businesses and households in certain areas (My Bizz Marketer, 2017).
The company can target its market according to the geographic segmentation and can take the
support of numerous companies of data collection that provide these type of information for
free as well as companies that offer programs of ZIP code look-up like My Best Segments
ZIP code look-up which is US bases. Material provided comprises factors like the people
surviving in that ZIP code, income as well as median age.
Behavior – Behaviour segmentation splits a population depending on their behavior, the
manner people react to, and use of a product (Weinstein, 2013). Cluster Analysis is a tool
which is used to classify substances into pre-defined groups, with every group being
comparatively alike on a basis of selected attributes. The resultant groups are called as
clusters. Therefore, it permits marketers to see the data they have collected and utilized it to
recognize segments or sections they can market to.
Demographic – Demographic segmentation is dividing the market as per race, family size,
income, age, education, ethnicity, gender, and religion. In order to divide the market,
Segmentation trees can be utilized as it is a tool which comprises a marketer making a

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database from scrape. A segmentation tree can also be said as a difference of a decision tree,
which displays the market divided into smaller segments of the market. This tool can be
utilized where there is the absence of usable statistical or study data.
Same as a family tree, this tree begins with a service or product name at the top. This is then
divided into different branches make of potential markets. This segmentation tree can be
utilized by Capilano Honey in order to divide its market. Honey will target kids, teens, and
adults in Vietnam. Kids and teens are the primary segments of the company, therefore, they
have set the prices of honey according to that.
Lifestyle – It support in understanding the requirement of the customers well and depending
on which marketers can make suitable decisions of correctly placing the service or product in
the correct segment (Weinstein & Cahill, 2014). Customer lifestyle segmentation tool can be
Capilano
Honey
Kids
Teens
Adults
Taste
Fun
Diet
Taste
Fun
Diet
Taste
Fun
Diet

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used as it creates small subgroups from the information gathered as per their needs, dislikes,
choices, and likes.
Challenges for Capilano Honey
Being one of the largest honey producers has been facing challenges due to the growth of the
private labels brands. The biggest customer of Capilano Honey has now become company’s
biggest competitor such as Woolworths and Coles. Both these supermarkets are performing
well in the market although Capilano also wanted that retailers should make money by selling
company’s brand as they are selling their own products (Kitney, 2014). Therefore, they tried
to place their brand but the private label products of these supermarkets are affecting the
financial outcomes. In the recent years, there is 25% increase in the private label because
85% of the consumers believe that private label brands equal or better quality as other
national brands.
Similarly, in Vietnam Capilano Honey can face high competition from the private label
brands such as Bonie Bee Co. This company has started offering their private label honey in
the market.
Besides this, the company can also face challenges due to the float of information that
Capilano honey uses toxic ingredients in its honey because their most of the honey is
imported from Argentina, Mexico, and China (Kangaroo Court of Australia, 2016). The
company is trying to enter the Vietnam market however due to the information of toxic honey
people behavior has changed towards this honey and now became worried about the
Australian contaminated honey (Mendes, 2016). This will directly affect the sales of the
products.
Target Consumer Profile
Criteria Primary segment Secondary Segment

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Demographic Kids – 4 to 12
Teens – 13 to 19
Adult – 20 to 30
Positioning
Core values of Capilano Honey
Capilano Honey is focused towards improving and offering products of good quality
with essential ingredient at a low price.
The company also try to do innovations in the product and enhancements in the
existing products so that it can attract new customers. Besides this, it also tries to
increase the satisfaction of the customer by promoting easy to use package/bottle.
Capilano honey is also concerned about the health and security of the people,
therefore, their core value is to take of each aspect related to the safety of its
customers and employees (Capilano Honey, 2018).
Encourage sustainability practice in order to raise brand popularity and increase
awareness of the customers about the number of offerings.
Brand Image
Capilano Honey is very famous in the Australian market as it is one of the largest honey
packers in the world. It is a brand which is recognized by 96% of the population and one of
the most trusted brands (Capilano, 2015). It is famous for reliability, flavor, quality and
advanced delivery mechanisms.

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Positioning Strategy in Vietnam
Customer Benefits – The Company will position itself in Vietnam by explaining the benefits
of the honey to the target audience i.e. kids, teens, and adult. Some of the benefits of
Capilano honey are reliability, quality, flavor, and taste.
Pricing Strategy – This strategy can also be used by Capilano in order to position itself in the
Vietnam market. It can highlight its prices by comparing with the prices of the competitors in
the market.
Positioning Map of Capilano Honey
High
Quality
Low
Quality
High
Price
Low
Price
Capilano
Honey
Manuka
Honey
VINAPI

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The above positioning map reflects the positioning of Capilano Honey that is going to be in
the market of Vietnam. As highlighted above the Capilano honey is positioned in the mid of
Low price with high quality.
Justification
The positioning strategy that is being used in this is customer benefit and price strategy. Both
of these strategies are very useful and will support company in attaining its aim i.e. of
offering honey of high quality at low price. The customer benefit strategy will support in
attracting customers by explaining the benefits of the honey, it can be done by arranging
campaigns in the place. Besides this, the price strategy is also very effective in attracting
customers because other companies in the Vietnam market i.e. Manuka Honey offer products
at very high cost due to which many people cannot afford it, therefore company decided to
position its product at low cost.
Positioning Statement
For Kids, teens, and adults who want to have tasty, healthy honey Capilano Honey is a
perfect choice. That's because Capilano Honey is made from nectar which is collected from
the heart of flowers and is collected by the honey bees.
Product
Adaptations by Capilano Honey
Capilano Honey has made some changes in its process such as it has increased the
organic honey supply while confirming the reliability of the ‘organic' certification and
labeling requirements which is an opportunity for the sector of production to upsurge
the production value.

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Capilano has directed a wide R&D into the satisfying and remedial honey qualities,
which have been proven clinically, as part of Medihoney Pty Ltd which is its
subsidiary company. A variety of medical and cosmetic device products that are
conditionally used like wounds, eczema, ulcers, nappy rash, and burns have been
created and advertised. The medical uses of specific and verified antibacterial medical
honey offer opportunities for the industry of honey bee.
Differentiation of Product
The Capilano Honey will offer its product in Vietnam at low cost because other companies
that are present in the market are offering very costly honey due to which everyone is not
able to afford it. Besides this, the company will offer high quality of honey with organic
ingredients that can also be used for preparing medicines.
Comparison between Capilano Honey and Manuka Honey
The product of Manuka honey is very expensive as it comes from the bees that fertilize
Leptospermum scorparium, or the manuka bush, which produces mainly in Australia and
New Zealand (Hatic, 2016). On the other hand, the Capilano Honey is produced from nectar
which is collected from the heart of flowers and is collected by the honey bees.
Price
The quantity of compensation or payment provided by one person to another in exchange for
a unit of service or good is known as price.
Pricing for Market Penetration – This strategy is aimed towards attracting buyers by
offering lower prices on service and good. Various companies make use of this strategy in
order draw attention away from their competition; penetration pricing does tend to result in
an initial loss of income for the business.

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The Capilano Honey will be sold at lowest price i.e. ₫ 20 to 30 depending on the type of
honey customer is picking.
In Vietnam, Manuka Honey is very expensive due to its rare ingredients and manufacturing
process. A jar of Manuka Honey cost approx. ₫ 60 (Export Genius, 2017).
Capilano Honey Price Manuka Honey Price
₫ 20-30 ₫ 60
The potential risk that impacts the Pricing for Market Penetration Strategy
Unmet Production Cost – if the raw material or equipment became expensive they offering
products at low cost will not provide significant profit to the company.
Missed Opportunity – If a company makes luxury products mostly miss the opportunity
because they perform cheap marketing of their product. Due to this customer avoid the
product (White, 2018).
Branding and Communication
Promotion of Capilano Honey
Advertisement – An advertisement is a form of visual or audio marketing communication
that makes use of openly sponsored, and non-personal message in order to sell or promote a
service, product, or idea (Einstein, 2017). Capilano Honey will make use of advertisement in
order to promote its healthy and qualitative honey to the customers in Vietnam.
Communication Strategy
In order to advertise, Capilano Honey will make use of campaign, newspaper, television, etc
communication strategy. In order to get the position in the market company will do the
various campaign in Vietnam in which it will explain the benefits of Capilano honey. Besides

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this, it will promote its products on television channels which is majorly famous for kids,
teens in order to target them.
Potential Risk of Advertisement
Artistic and Creative Risk
When it comes to the quality and comparable artistic selections, the most general and safe
ideas becomes a serious risk of being unremarkable. On the other side, whenever the business
tries to do something different it takes a risk (Villion & Company, 2018).
Advertising Campaign Tagline
“Once you taste the Capilano Honey, you want more of that”.
In the advertisement campaign Company will make use of this tagline by endorsing famous
celebrities who will help in promoting the products.
Building strong brand
First step - In order to build a strong brand company will first conduct a detailed brand audit
in which it will identify its customers and target market i.e. Kids, teens, and adults in
Vietnam Market.
Second Step – In order to get success in the branding of the production company will prepare
its value proposition statement i.e. ‘The Company ensures that it offers the best quality of
honey to its customers by considering their health and fitness”.
Third Step – Here, the company will create the voice, feel, and look of its brand with the help
of marketing channel (Louis, 2018).
Fourth step –Several strategies will be adopted to increase the brand awareness such as
advertisements, campaigns.

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The Capilano Honey will definitely make use of its current brand portfolio. This will help the
company in attracting more customers due to its effective brand image in Australia. This can
be used by representing the company’s performance in the previous market through
advertisement.
The company wants to have a brand personality in the eyes of customers that represents its
high quality of products at low cost.
Expected Outcomes
It is expected from the above marketing plan that company will definitely make its place in
the Vietnam honey market by offering its quality products at low cost. The company will get
20% increase in its sales with the help of marketing plan and will give strong competition to
the existing companies.
In order to penetrate the product in the next 5 years company will make some innovations in
the packaging and the systems of product delivery which will help the industry in reaching to
the target market and overcome inherent problems and purchaser anxieties related with
honey, like mess and stickiness.
Conclusion
In the conclusion, it can be said that the above-specified marketing plan will support
company in attaining the Vietnam market by offering high quality of honey and low price.
Besides this, the advertisement strategy of the company will support in gaining the customers
of existing players in the market. The advertising campaign will help the company in
explaining the benefits of the Capilano Honey to the customers. Demographic segmentation
will be used in order to segment the market. Along with this company will position in the

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market by using strategies i.e. customer benefit and price strategy. Moreover, the product of
Capilano is different from its competitor in terms of manufacturing process and price.

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References
Andrews, R. (2018). All About Fructose. Retrieved from
https://www.precisionnutrition.com/all-about-fructose
Capilano Honey. (2018). All About Honey. Retrieved from
http://www.capilanohoney.com/au-en/health-wellness/naturally-good
Capilano Honey. (2018). Our Heritage. Retrieved from http://www.capilanohoney.com/au-
en/hive-to-home/our-heritage
Capilano. (2015). Company Profile. Retrieved from
http://www.capilanohoney.com/uploads/Corporate/company-profile/pdf/CP-
Company_Profile.pdf
Capilano. (2018). Capilano Story. Retrieved from https://www.capilanousa.com/capilano-
story/
Capilano. (2018). Quality Assurance. Retrieved from https://www.capilanousa.com/capilano-
story/quality-assurance/
Einstein, M. (2017). Advertising: What Everyone Needs to Know. 3rd edn. U.K: Oxford
University Press.
Export Genius. (2017). Vietnam Import Data of Manuka Honey. Retrieved from
https://www.exportgenius.in/import-data/vietnam/manuka-honey.php
Hatic, D. (2016). What Is Manuka Honey and Why Is It So Expensive? Retrieved from
https://www.eater.com/2016/8/25/12644050/manuka-honey-why-so-expensive

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Kangaroo Court of Australia. (2016). Australia’s Capilano Honey Admit Selling Toxic And
Poisonous Honey To Consumers. Retrieved from
https://kangaroocourtofaustralia.com/2016/09/17/australias-capilano-honey-admit-
selling-toxic-and-poisonous-honey-to-consumers/
Kitney, D. (2014). Capilano sees private label honey as a sticky problem. Retrieved from
https://www.theaustralian.com.au/business/capilano-sees-private-label-honey-as-a-
sticky-problem/news-story/81b4a770f406a957cfabfcf951e1af4b
Louis, M.S. (2018). 5 Steps to Building a Strong Brand Identity When the Game Is
Constantly Changing. Retrieved from https://www.inc.com/molly-reynolds/5-steps-
to-building-a-strong-brand-identity-when-the-game-is-constantly-changing.html
McDonald, M. (2012). Market Segmentation: How to Do It and How to Profit from It. 5th
edn. U.S: John Wiley & Sons.
Mendes, J. (2016). Capilano and beekeeper Simon Mulvany suing each other as honey
dispute turns sticky. Retrieved from
http://www.abc.net.au/news/2016-11-15/capilano-beekeeper-suing-each-other-over-
social-media-posts/8024150
Monk. (2018). How to Use Micro Segmentation Marketing Effectively in Marketing
Automation. Retrieved from https://monk.webengage.com/how-to-use-micro-
segmentation-in-marketing-automation/
My Bizz Marketer. (2017). Market Segmentation – Tool and Techniques. Retrieved from
http://www.mybizmarketer.co.ke/market-segmentation-tool-and-techniques/
Villion & Company. (2018). Risk In Advertising: When Does It Pay To Take Creative Risks?
Retrieved from https://villing.com/articles/risk-in-advertising/

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Weinstein, A. (2013). Handbook of Market Segmentation: Strategic Targeting for Business
and Technology Firms. 3rd edn. U.K: Routledge.
Weinstein, A., & Cahill, D.J. (2014). Lifestyle Market Segmentation. 4th edn. U.K: Routledge.
White, W. (2018). Market Penetration Strategy: Definition & Pros and Cons. Retrieved from
http://inevitablesteps.com/marketing/market-penetration-strategy/
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