mangosteen marketing plan in south korea

Study on Korean consumers’ Perception and Purchasing Behavior towards Thai Mangosteen products

Present by: Nuthida GrisawanonDate: 12nd January 2011

1

Agenda

-Rationale for the study

-Literature review

-Research Methodology

-Survey result and discussion

-Conclusion and Recommendation

2

Rationale for the study

Mangosteen -Major economic fruit of Thailand, And Thailand is the largest producer and exporter of mangosteen in the world.

Table 1: Main mangosteen producing countries (2009)Country Area(hectares) Production (tons)

1 Thailand 51000 2000002 Indonesia 12000 1055583 Vietnam 10000 400004 Malaysia 73000 283505 Philippines 1050 4200

- New Promising Superfruit

- Unique and Delicious taste and Nutritious value for Health Benefits

3

Rationale for the study

South Korea

- is New Market Entry for Fresh Mangosteen products from Thailand.(effective from October 28, 2010)

-is considered as High market potential ranked no.4 for Emerging Market 2010 Ranks by The Economist Magazine

- Koreans are increasingly consuming the Vitamin rich fruit (Superfruit)

-Successful case of Blueberries 4

Literature review

-Concerned with Nutrition for their health-Accept Health related products-Baby-boom generation ages and Middle age are Mass effects of the lifestyle

HEALTH CONSCIOUS LIFESTYLE

5

Literature review

-Marketing and Product differentiation purposes-Acceptance of fruit products-Likelihood of Consumption- Claims are best received when attaching to

products

NUTRITION AND HEALTH CLAIM IN FRUIT PRODUCTS

6

Literature review

-Growth in Health and Wellness market in South Korea

- Korean consume more healthy and organic product with eco-friendly packaging, higher price following to quality and value

HEALTH CONSCIOUS IN SOUTH KOREA

7

Literature review

-Superfruit = Rich of Nutritional profile with scientific evidence

- Popular “Blueberries” in South Korea

-Newest Superfruit: Mangosteen from Tropical countries are gaining popularityWith Best Taste+BestHealthy Nutrition

SUPERFRUIT: NEW INGREDIENTS IN HEALTH CONSCIOUS CONSUMPTION LIFESTYLE

8

Literature review

Fruit Consumption reason

Pleasure Seeking = Primary motivationTaste+Texture+SmellHealthy Diet

Purchasing decision Factors

PerceptionsFamiliarityDemographic CharacteristicsSocial Influences

FRUIT CONSUMPTION AND PURCHASING DECISION

9

Literature review


Perceptions

-Consumers’health attitudes predict choice and consumption of fruit products

- Perception of Nutrition= important factor in fruit consumption

-High general health interest are likely to choose a healthy fruits


10

Literature review


Familiarity

-the Level of familiarity with a product has a major impact on purchase behaviore.g Case study of Australian mangoes in Japan

- Fruit Characteristics ( Taste, Appearance and Smell)

-The way to eat mangosteen


11

Literature review


Demographic Characteristics

- Many studies have emphasized socio-demographic as important determinants of fruit intake

- “Gender + Age+ Education+ Social status (income) Impacts to fruit consumption”


12

Literature review


Social Influences

- Many studies found that social support from family and other people led to increased fruit intake.

- Fruit consumption benefits from social support (e.g friends, family and spouse)


13

Research Methodology

Non probability sampling—General Korean population

200 sets of Questionnaire

- Paper Questionnaires

-Online http://kwiksurveys.com/?u=jah_mangosteen

QUESTIONNAIRE

14

http://kwiksurveys.com/?u=jah_mangosteen

Demographic Characteristics of Respondents

Survey Result

male53%

female47%

Below 20 years

20-29 years

30-39 years

40-49 years

50-59 years

60 years up

0 10 20 30 40 50 60 70 80

32

79

53

21

15

0

Single Married without child

Married with child

Divorced0

20

40

60

80

100

120

120

29

50

1

Lower than 1000000

1000001-2000000

2000001-3000000

3000001-4000000

More than 4000001

0 10 20 30 40 50 60 70 80 90

84

18

65

15

18

15

Survey Result

HEALTH CONSCIOUS AND FRUIT LOVER

Health Conscious Fruit Lover0%

20%

40%

60%

80%

100%

Yes171

85.5%

Yes153

76.5%

No 29No 47

16

Survey Result

PERCEPTION AND CONSUMING EXPERIENCES OF MANGOSTEEN PRODUCTS

Know Consumed0%

20%

40%

60%

80%

100%

Yes123

61.5%

Yes10653%

No 77 No 94

17

Survey Result

PERCEPTION AND CONSUMING EXPERIENCES OF THAI MANGOSTEEN PRODUCTS

Yes No Not Sure0

20

40

60

80

100

120

8897

15

69

105

26

Know Thailand Mangos-teen Consumed Thailand Mangosteen

x

18

Survey Result

PERCEPTION AND CONSUMING EXPERIENCES OF MANGOSTEEN PRODUCTS

1 2 3 4 5 60

20

40

60

80

100 91

13 7 4 0 4

94

107 2 0 1

ever consumed type

favorite type

1 Frozen or Vacuum Freeze dried Mangos-teen

2 Fresh Mangosteen

3 Mangosteen Juice

4 Mangosteen Tea

5 Mangosteen Wine

6 others 19

Survey Result

x

TOP 5 RANKINGS OF PERCEIVED BENEFITS OF MANGOSTEEN

1. DELICIOUS 55%

2. ENERGIZING 24.5 %

3.Anti-Aging Skin 22%

4. Lower Blood pressure 15.5%

5.Anti-cancer Activities 14.5%

20

Survey Result

RANKING OF IMPORTANT LEVEL OF INFLUENCING FACTORS ON MANGOSTEEN PRODUCTS PURCHASING DECISION

Items MEAN S.D. Important Level1. Advertisement from medias such as TV, magazine, through social network such as Cyworld, Twitter, Facebook etc. TV,

3.72 .89 High

2. Nice packaging 3.34 .94 Medium3. Well known brand 3.27 .89 Medium4. Country of Origin 3.23 1.10 Medium5. Shop and Display 3.13 .95 Medium6. Recommendation/word of mouth from others 3.08 .82 Medium7. Providing health benefits- Nutritional Value 2.92 1.04 Medium8. Quality Certification 2.83 .91 Medium9. Way of production 2.82 .90 Medium10. Convenient Location 2.72 .83 Medium11. Organic products- Free of pesticides etc. 2.51 1.02 Low12. Providing beauty benefits- Skin care Value 2.40 .98 Low13. Reasonable prices 2.32 .79 Low14. High Quality - Appearance, texture and so on 2.05 .85 Low

15. Good taste and flavors 1.46 .57 Very low16. Freshness 1.45 .69 Very low

Overall 2.70 .42 Medium

x

21

Survey ResultCOMPARED DEMOGRAPHIC CHARACTERISTICS IN PERCEPTION AND INFLUENCING FACTORS ON MANGOSTEEN PRODUCTS

male female0

10

20

30

40

50

60

48

5859

35

Consumed

Not Consumed

Compared Gender

22


Below 20 years

20-29 years

30-39 years

40-49 years

50-59 years

0

5

10

15

20

25

30

35

40

45

16

43

28

10 9

16

36

25

11

6

Consumed

Not Consumed

Compared Age

23


Lower than 1000000

1000001-2000000

2000001-3000000

3000001-4000000

more than 4000001

0 5 10 15 20 25 30 35 40 45

Not consumed

Consumed

Compared Income/KRW

24


Number 1. Age: 50-59 years old Consumed: 60%Married without child Consumed: 62%Income above 4 Mil.KRW Consumed: 66%

Number 2.Age: 20-39 years old Consumed: 53%Married with child Consumed: 56%Income 2 -3 Mil.KRW. Consumed: 52%

Groups that Have ever consumed before?

25


Number 1. AGE : 50-59 years

oldYES -- 66.70 %NO -- 33.30 % Income: More than 4

Mil.KRW

YES -- 66.70 %NO -- 33.30 %

Number 2. AGE: 30-39 years oldYES – 50.90 %NO -- 43.40 % Income: 2 Mil.- 3

Mil.KRW

YES – 49.20 % NO -- 46.20 %

Know Thai Mangosteen product?

26

RECOMMENDATION

TARGET GROUPFirst Target Group-MALE or FEMALE-AGE : 50-59 years old-MARRIED

- HIGH INCOME

Above 4,000,001 KRW

27

RECOMMENDATION

TARGET GROUP

28

Second Target Group

-MALE or FEMALE-AGE : 20-39 years old-SINGLE or MARRIED

- MIDDLE LEVEL - INCOME

2,000,001- 3,000,000 KRW

RECOMMENDED MARKETING MIX STRAGIES

MARKET POSITIONFirst Target

Edible Mangosteen products

- -PREMIUM , HEALTHY and QUALIFIED HYGIENE

Second TargetEdible Mangosteen

products- DELICIOUS , HEALTHY

WITH DOMINANT BRAND NAME

29


PRODUCT STRATEGIESFirst Target -Certified Quality on the

product label with Country of origin as an imported fruit products

- Health benefit or Nutrient value on the product label

30


PRODUCT STRATEGIES

31

Second Target- -Nice Packaging and

appealing product design with dominant brand name on the product label

-Showing good taste delicious value

Pleasant package


PRICE STRATEGIES

32

Second Target- Economy Pricing

For example,

Frozen Mangosteen products 6 Pieces

Price range = 8,000 KRW = 10,000 KRW =15,000 KRW


PRICE STRATEGIES

33

First Target- Premium Pricing

For example,

Frozen Mangosteen products 6 Pieces

Recommended retail Price range

= 18,000 KRW = 20,000 KRW =25,000 KRW


PLACES STRATEGIES

34

First Target- Recommended retail

places- -Specific shops (e.g

selling only Organic or imported fruit products)

- -Nice display and selling shelves, Pleasant ambiences

- -Situated nearby Residential area


PLACES STRATEGIES

35

Second Target

Recommended retail places

- -Convenient and Small shop

- -Nice display and selling shelves, Easy to find

-Situated nearby business area


PROMOTION STRATEGIES

36

First TargetRecommended Advertising Campaigns- -Educate and Emphasis term of

“Superfruit” and “Premium” ones in the product labels and ad -words

- List for healthy nutrient benefit in the label or advertising banners- Promoting on Health contribution- e.g

“Anti-aging skin, Anti-cancerLower blood pressure, Lower fever”- -Advertising Channels=- Health blogs online, Medias



37

First Target

Recommended Sales Promotion Tactics- Buy Big one get Small one free

- - Free premium healthy gift or product lines as small package for tasting e.g Books about Healthy living



38

Second TargetRecommended Advertising Campaigns

-Taste demonstration

-Promoting on some Health

Contribution e.g- -Energizing- -Reducing Migrain+Stress- -Anti aging+ Anti Cancer

“Antioxidants”

Advertising Channel= Cyworld, Naver blog

Magazine



39

Second Target

Recommended Sales Promotion tactics - Discount for large package, and discount

more in some special events- - Buy one get one free- - Free fun gift e.g related to health

contribution of products such as Stress ball

mangosteen marketing plan in south korea

Travel