Market Research Challenges in Vietnam
A multinational company, Globalcorp, produces personal care products oriented toward middle class consumers and it is examining international expansion opportunities. One country that is of interest is Vietnam, whose 88 million people made it the 13th most populous nation in the world. Vietnam is governed by the Communist Party of Vietnam, which controls a range of activities, including the country’s Internet and media sectors. Vietnam joined the World Trade Organization in 2007 and has introduced a number of reforms to promote international trade, foreign direct investment, and economic expansion. In 2011, Vietnam had an annual gross income of over $90 billion, one of the world’s fastest growing economies with an annual gross domestic product growth rate of over 6 percent during the past decade, and nearly 28 million Internet users. Education is free and mandatory from age 6 to 11, but there are tuition fees after age 11 and some poor families have trouble paying these fees. Nevertheless, the national literacy rate is reported to be above 90 percent.
Answer this questions
1. If Globalcorp wanted to undertake market research to determine the potential demands for its products in Vietnam, what are some of the problems that market researcher might encounter? (Use Market Screening or Segmen Screening to support your answer.)
2.What options might be available to Globalcorp if it wanted to reduce the likelihood of problems in conducting market research on the Vietnamese market?