Tài liệu Launching liver product in food supplement market in vietnam master project in business and marketing management

Thieu Thi Vy Vy Final project – MBMM4 ACKNOWLEDGEMENTS Firstly, I would like to express sincere thanks to my tutor - PhD. Hoang Thi Phuong Thao for her whole-hearted guidance and feedback which I really appreciate. In addition, I would like to show my big gratitude to my special colleagues – Mr Phan Thanh Trung, who accompanies with me the whole course of MBMM4 & Mr Nguyen Phong Phu, who assists me to conduct the quantitative research for the information of this final project, and other colleagues in United Pharma Vietnam, who assist me to complete this final project. Finally, I wish to acknowledge and thank to all professors, coordinators and my classmates of MBMM4 program who have delivered valuable experiences, knowledge and assistance to me during the course. Thieu Thi Vy Vy Final project – MBMM4 TABLE OF CONTENT LIST OF TABLES LIST OF CHARTS LIST OF ABBREVIATIONS EXECUTIVE SUMMARY ......................................................................................1 Chapter 1: INTRODUCTION 1.1 Background ...........................................................................................................2 1.2 Objectives of launching project ...........................................................................3 1.3 Scope and limitation of launching project ...........................................................4 1.4 Research study method serving for project ........................................................4 1.5 Structure of project report ...................................................................................5 Chapter 2: MARKETING SITUATION ANALYSIS 2.1 EXTERNAL ANALYSIS.....................................................................................7 2.1.1 Hepatic market data analysis (IMS market research agency) .................7 2.1.2 Competitors analysis..................................................................................8 2.1.3 Market & consumer’s attitude toward liver products ...............................9 2.1.3.1 Respondents information ............................................................ 9 2.1.3.2 Market overview......................................................................... 9 2.1.3.3 Evaluation of product concepts ................................................. 12 2.1.3.4 Ideas for pricing ........................................................................ 14 2.2 INTERNAL ANALYSIS....................................................................................15 Thieu Thi Vy Vy Final project – MBMM4 2.2.1 Historical business share by regions / provinces in Vietnam of United Pharma’s products ............................................................................................15 2.2.2 Historical business share by channels of distribution of United Pharma’s products..............................................................................................................15 2.3 SWOT ANALYSIS.............................................................................................16 2.3.1 Strengths ...................................................................................................16 2.3.2 Weaknesses..............................................................................................16 2.3.3 Opportunities ............................................................................................17 2.3.4 Threats ......................................................................................................17 Chapter 3: MARKETING STRATEGY TO LAUNCH LIVICA 3.1 MARKETING GOALS & OBJECTIVES .........................................................18 3.2 MARKETING STRATEGIES............................................................................19 3.2.1 Target segmentation ................................................................................19 3.2.2 Livica positioning.....................................................................................20 3.2.3 Marketing mix ..........................................................................................20 3.2.3.1 Product strategy ........................................................................ 20 3.2.3.2 Pricing strategy ......................................................................... 22 3.2.3.3 Distribution strategy.................................................................. 24 3.2.3.4 Promotional strategy ................................................................. 25 3.2.4 Action plan for launching Livica .............................................................27 3.2.4.1 Consumers ................................................................................ 27 3.2.4.2 Pharmacy .................................................................................. 29 3.2.4.3 Private clinic ............................................................................. 30 Thieu Thi Vy Vy Final project – MBMM4 Chapter 4: FINANCIAL ANALYSIS & CONTROL 4.1 SALES FORECAST FOR 5 YEARS.................................................................33 4.2 MARKETING EXPENSE FORECAST ............................................................33 4.3 BREAKING EVEN ANALYSIS .......................................................................34 4.4 CONTROL .........................................................................................................35 CONCLUSION ........................................................................................................36 REFERENCES APPENDIX Thieu Thi Vy Vy Final project – MBMM4 LIST OF TABLES Table 2.1: Market relevant of hepatic market ..........................................................7 Table 2.2: Competitor analysis profile ......................................................................8 Table 2:3: Respondent profile .................................................................................. 9 Table 2.11: Business share among 4 channels of United Pharma .........................16 Table 3.1: Sales forecast of Livica in 5 years .........................................................18 Table 3.3: Price of Livica ........................................................................................23 Table 3.4: Competitor pricing analysis....................................................................24 Table 3.5: Sales share among channels ..................................................................24 Table 3.7: Summary of action plan 2011-2013 ......................................................31 Table 4.1: Livica’s sales forecast in 5 years ..........................................................33 Table 4.2: Marketing expenses for 5 years .............................................................34 Table 4.3: Break-even analysis ..............................................................................35 Thieu Thi Vy Vy Final project – MBMM4 LIST OF CHARTS Chart 2.4: Current hepatic market ..........................................................................10 Chart 2.5: Purpose of taking Hepatic products .......................................................10 Chart 2.6: Consumers’ perception on famous brands .............................................11 Chart 2.7: Influencers of hepatic category ............................................................. 11 Chart 2.8: Evaluation on 2 product concepts ..........................................................13 Chart 2.9: The attractive attributes of concept 2 vs concept 1...............................14 Chart 2.9: Pricing evaluation ...................................................................................14 Chart 2.10: Historical business sales of United Pharma VN ..................................15 Chart 3.2: Novex science study on absorb of Siliphos ...........................................21 Chart 3.6: Delivery system of United Pharma’s Distributor...................................25 Thieu Thi Vy Vy Final project – MBMM4 LIST OF ABBREVIATIONS UPI : United Pharma (Vietnam) Inc. UNILAB : United Laboratories, Inc. OTC : Over the Counter GIT : Gastro Intestinal Track SEC : Social Economic Class WOM : Word of Mouth MD : Medical Doctor PPC : Private Pharmacy Company WS : Wholesaler CBP : Consumer Buying Price CAGR : Cumulative Average Growth OPEX : Operating Expenses ATL : Above the Line BTL : Below the Line BOD : Board of Directors Page 1 Thieu Thi Vy Vy Final project – MBMM4 EXECUTIVE SUMMARY With the strategy to expand the business of United Pharma VN through exploring the new & potential market – food supplement market, the project of launching a liver food supplement product is suggested. The project depicts plan of launching Livica, which strengthens liver health and protects liver from diseases. It describes clearly the whole process of how to launch Livica in food supplement market. Starting with the introduction of the project on how & why the product is selected. Then it moves to the market situation analysis which bases on data & information from conducting quantitative market research & existed internal information of the company. Following that the marketing strategy is developed to describe how Livica approach its market. It’s the most important part of the project to present many key concerns of a product launch, like what is its target segment, what is Livica positioned in consumer’s mind, what is the marketing mix of Livica. Finally, the finance analysis & control is suggested to evaluate & manage the success of the project. Page 2 Thieu Thi Vy Vy Final project – MBMM4 Chapter 1 INTRODUCTION 1.1 BACKGROUND United Pharma VN is a subsidiary pharmaceutical company of Unilab in Philippine. It has been established in Viet Nam since 1994 as a representative office. From 2000, it has been become a limited foreign company with a factory in Vietnam. At present, United Pharma VN has been one of the biggest OTC pharmaceutical companies in Vietnam with famous brands like Decolgen, Alaxan, Enervon, Obimin, etc. It has more than 300 employees with sales representatives in most of provinces in Vietnam. The average revenue growth in the past 5 years was about 23% and the operation management has also been expanded with many new departments like Marketing Information & Services, Portfolio Medical, Trade Marketing departments. The vision of United Pharma is the world-class healthcare partner for life. And the mission that United Pharma provides quality and affordable products and services that promote and enrich life for all communities. Inconsistence with the vision & mission of United Pharma, Livica is suggested to launch. Food supplement with herbal compositions has become the new trend in the world, and Vietnam has started to follow that trend nowadays. Consumers have been more aware of side effects of medicines in long term treatment & move forward to take herbal products for both prevention & treatment. The product is chosen about liver protection because of two reasons. Page 3 Thieu Thi Vy Vy Final project – MBMM4 Firstly, according to IMS data (IMS - a research company supplying data for pharmaceutical industry in Vietnam) that total hepatic protection category had a high average growth of 38%, which was faster than the average OTC growth of 17% from 2007 to 2009. Among this category, total food supplement products achieved a remarkable average growth of 304%. Secondly, because of the emergence of active life-style, the number of potential sufferers who usually drink and eat out is probably increasing. In sight of this vitally emerging demand of hepatic protection, the launch of a liver food supplement product is necessary to penetrate the potentially lucrative segment. Livica contents Siliphos & multivitamin, which is better than most of the existed players in formula & benefits. Siliphos is the combination of Silybin & complexation with soy. Silybin is the standardized extract (silymarin) obtained from the fruit of S. Marianum and containing main constituents SILYBIN, SILYDIANIN and SILYCHRISTIN, is widely used in European medicine in the treatment of liver diseases. Livica will be imported from Unilab, the mother company in Philippine. Livica is a pioneer of food supplement product for United Pharma to explore & test the new attractive market in Vietnam. 1.2 OBJECTIVES OF PROJECT The project will be gone in depth with three main objectives as follows: o To explore & analyze the characteristics of the current market and competitors to launch Livica in food supplement market. o To analyze potential consumers’ attitude & usage to Livica product. o To create shape & sound marketing strategy to launch Livica successfully in Vietnam Page 4 Thieu Thi Vy Vy 1.3 Final project – MBMM4 SCOPE AND LIMITATION OF PROJECT This project will be implemented in nation wide of Vietnam from 2011. However, due to the limited time of preparing the project, the market research on consumers & market is just conducted in HCMC and the result will be assumed to nation wide. 1.4 RESEARCH STUDY METHOD SERVING FOR PROJECT There will be two methods using for this project: desk research and quantitative research: o Desk research: the analysis bases on secondary data from internal and external source: 9 Internal data: The project will get sales value of United Pharma products through past three years 2007 – 2009 from sales portal system of United Pharma as the data reference. 9 External data: The project will get market data of hepatic market, sales volume & value of players through past three years 2007 2009 from the data panel of IMS. The hepatic market in IMS presents data of both medicine & food supplement products. These data are collected from the sales of distributors to pharmacies in 5 key cities, which are HCMC, Hanoi, Cantho, Danang & Haiphong and are set as representative for the whole national market. o Quantitative research: this research is conducted by face to face interview with 100 respondents in HCMC following list of questionnaires. The target respondents are set into 3 groups as follows: - Group 1: (40 respondents) Page 5 Thieu Thi Vy Vy Final project – MBMM4 • Gender: all • Age: 20-50 • SEC: ABCD • Occupations: all • Past 6 months users of liver products - Group 2: (30 respondents) • Gender: all • Age: 20-50 • SEC: ABCD • Past 6 months users of liver products • Users of Boganic, using the brand regularly with or without intervals - Group 3: (30 respondents) • Gender: all • Age: 20-50 • SEC: ABCD • Past 6 months users of liver products, length of use at least 3 months • Users of Bar, using the brand regularly with or without intervals In this research the questionnaires of 21 questions is designed to be asked face to face by interviewers at the consumers’ houses. Please see the detail of questionnaires & data sheet in the appendix. 1.5 STRUCTURE OF PROJECT REPORT The project includes four chapters, in which o Chapter 1, “Introduction”, introduces the where the project comes from, the objectives, the scope of work and research study methods to write this project. o Chapter 2, “Marketing situation analysis”, goes to analyze the market overview of liver products, the competitors which are about the top 2 players with their strengths & weaknesses, the historical sales performance by regions of United Pharma products, and the Page 6 Thieu Thi Vy Vy Final project – MBMM4 quantitative research result which explores the target segment, the ideas for pricing & evaluation for winning product concept. Then the project analyses the SWOT of Livica before moving to do the marketing strategy for launching it. o Chapter 3, “Marketing strategy to launch Livica”, presents the key contents of the launching project which are developed based on the information & data analysis of chapter 2. In this chapter, the objectives are set and the marketing strategy is deployed from defining the target, the product positioning to the marketing mix to for action plan of launching. o Chapter 4, “Financial analysis & control”, mentions about the sales & marketing expenses of the project. As the criteria of launching new products in United Pharma, the sales target should be forecasted for first 5 years to see how potential growth of product for investment. Then the project is calculated the all the expenses from operations to product marketing expenses to make the project be broken even in 3 years. And the needs to set up criteria the project measurement. In summary, chapter 1 gives an overview on the reasons of launching Livica, setting up objectives for project and suggesting study methods to be applied and the structure which the project will go through. So the 1st step of launching a new product is to analyze the market it will enter. Page 7 Thieu Thi Vy Vy Final project – MBMM4 Chapter 2 MARKETING SITUATION ANALYSIS 2.1 EXTERNAL ANALYSIS 2.1.1 Hepatic market data analysis (IMS market research agency) The IMS research result shows that among players in hepatic market, the hepatic food supplement products emerged from 2007 and quickly showed the potential development & trend of liver food supplements in Vietnam with 304% of average growth from. It’s easy to understand the big growth of hepatic supplement. It’s the trend of taking food supplement products to avoid the side effects of medicine in long term treatment. Table 2.1 describes clearly the market trend of liver products. Table 2.1: Market relevant of hepatic market HEPATIC MARKET RELEVANT (medicince + supplement BRAND COMPANY BOGANIC % GR % SH (TRAPHARCO) BAR % GR % SH (PHARMEDIC) FORTEC % GR % SH (IC VIETNAM) ACTUAL SALES 2007 2008 2009 % CAGR 05 - 09 13.17 37% 6% 22.45 71% 8% 35.19 57% 9% 63% 20.99 17% 10% 23.63 13% 8% 23.98 1% 6% 7% 13.79 41% 7% 14.32 4% 5% 17.91 25% 5% 14% 0.92 14.91 237% 4% 304% 0% 4.42 383% 2% OTHERS % GR % SH 154.57 34% 76% 217.44 41% 77% 294.45 35% 76% 38% TOTAL RELEVANT MKT 203.44 282.26 386.44 HEPAT FOOD SUPPLEMENTS % GR % SH % GR 51% 39% Source: IMS research in Q2, 2010 37% MAT (accumulative of 4Q) Q2-2009 30.33 9% 24.04 7% 14.96 5% 7.67 2% 251.44 38% Q2-2010 34.79 15% 8% 24.75 3% 6% 20.10 34% 5% 18.53 141% 4% 77% 314.62 25% 76% 328.44 412.78 26% Page 8 Thieu Thi Vy Vy Final project – MBMM4 2.1.2 Competitors analysis In general, the classification of total hepatic market is based on therapeutic classification, which products have similar ingredients in treating or protecting liver diseases. And the process of defining competitors of Livica is based on the ranking of products in hepatic market (mostly leader), product claims, the advertising claims, and the activeness of marketing activities of players in same market. Therefore, the competitors of Livica are Boganic & Bar, who are in top five of rank with big market shares; have the advertising claims competing with Livica, which is for liver protection & treatment, and same target customers (consumers, pharmacist and MD). The table 2.2 will summarize the competitor analysis profile for a general view of readers. The table 2.2: Competitor analysis profile. BRAND Manufacturer LIVICA BOGANIC BAR United Pharma VN Trapharco Pharmedic 9% 6% Market share 2009 Com pos ition - Silybin-Phos 120mg Vitamin B 1, 2, 6, 12 Niacinamide, 14mg Vitamin E, 12mg Calcium, 5.4mg Zinc, 5mg Key Indication - Maintain healthy liver - help to produce liver enzymes -support liver f unction - detoxif y liver - prevent & support treatment of high cholestorol,biliary tract disorder - support liver f unction - secrete toxicity, antiallergic - antherosclerosis Target Cus tom e rs _ Consumers _ Pharmacists _ MD in private clinic _ Consumers _ Pharmacists _ MD _ Consumers _ Pharmacists _ MD Buying Price 38,500 vnd / box (100 tab) 35,000 vnd / box (180 tab) Selling Price 43,000 vnd / box 41,000 vnd / box Pr ice per day 3 times x 3 tabs / day = 4,000 vnd 3 times x 2 tabs / day = 1,500 vnd Unique Stre ngth _ _ _ _ - Heritaged brand - Low price - Strong distribution Unique We aknes s - Not appealing packaging - Lack of emotional claims - Limited promotion activity - Not appealing packaging Pos itioning Herbar remedy f or hepatic dysf unction Remedy f or toxicity secretion Key prom o Activitie s PR program, Conf erences f or MDs. -OOH: Billboard in highw ay - Extractum cynarae, 10mg - Extractum cynarae, 10mg - Extractum polygoni, 75mg - Extractum polygoni, 75mg - Extractum lpomoeae - Extractum lpomoeae Popular Brand Low price Strong distribution High aw areness Page 9 Thieu Thi Vy Vy Final project – MBMM4 2.1.3 Market and consumer’s attitude toward liver products. 2.1.3.1 Respondents information: There is no significant difference between the general and potential market. Female looks more dominant than male in hepatic category and the group have more concerns on their liver health is in middle age from 30 to 50 year olds. And most of them are self-employed and housewife. See table 2.3 Table 2:3: Respondent profile General MARKET POTENTIAL MARKET GENDER Male Female 32 68 32 68 15 34 51 13 34 53 16 64 20 17 62 21 5 1 6 1 5 5 Large-scale trader (excluding business owner) 4 4 Production worker Self-employed Student Housewife Unemployed Retired 15 42 2 24 1 1 16 40 1 25 AGE 20 - 29 30 - 39 40 - 50 SOCIAL ECONOMIC CLASS Class B Class C Class D OCCUPATION Professional Technical Office employee – Clerical/junior level 1 Base: all respondents (n=100), screening questions 2.1.3.2 Market overview: Chart 2.4 shows that the hepatic market looks stable with users sticking to their brand after trial, and Bar is the leader with 91% of retention, followed by Boganic with 72% of retention. Page 10 Thieu Thi Vy Vy Final project – MBMM4 Chart 2.4: Current Hepatic Market BAR Retention Rate DEPENDABLES BOGANIC 91% 72% 44 10 54 13 REPERTOIRE 54 TRIALISTS P12M 6 60 Ever used 40 12 25 77 AWARE TOM/Other Spont./Aided 135 18 P12M Ever used 95 41 55 TOM/Other Spont./Aided Base: All respondents (n=100) - Q1, 2 The consumer’s usage of liver products is quite similar to that of tonic. Some ones use them to treat mild illnesses like fatty liver or hepatitis, while the others to treat common skin problems like hives/acnes. And the usage especially differs between genders, in which males think more about beer or alcohol damage and females think about the skin beauty. See chart 2.5 Chart 2.5: Purpose of taking Hepatic products Page 11 Thieu Thi Vy Vy Final project – MBMM4 From that, only Bar & Boganic have gained the clear position in consumer’s mind as liver tonics. Bar is currently the only product to win both and enjoys more association with skin benefits, while Boganic is more likely to be used for protection against beer / alcohol. See chart 2.6 Chart 2.6: Consumers’ perception on famous brands Bar POSITIVE PERCEPTION OF BAR Base: n= INDIRECT BENEFITS TOTAL 80 84 Treat yellowish skin 52 Nourish skin 27 Treat skin allergy 26 Treat acne 23 DIRECT BENEFITS Remove/Neutralize toxic in the liver Treat fatty liver Don' t know Base: n= DIRECT BENEFITS Remove/Neutralize toxic in the liver Treat fatty liver Treat acute liver inflammation Treat common liver problems TOTAL 58 55 28 9 9 7 47 INDIRECT BENEFITS 31 31 Treat yellowish skin 25 Treat acne 9 7 OTHERS Has low price Has herbal ingredients Boganic POSITIVE PERCEPTION OF BOGANIC OTHERS 5 3 7 Has low price Has herbal ingredients Don' t know 1 10 31 Base: Those who are aware of brand, Q5,6 Besides, this category is influenced by MD, pharmacists and WOM. Females, particularly, are more influenced by private clinics. See chart 2.7. Chart 2.7: Influencers of hepatic category Page 12 Thieu Thi Vy Vy Final project – MBMM4 2.1.3.3 Evaluation of product concepts The two product concepts are proposed to consumers to check their perception & evaluation toward the product. And based on consumer’s feedback, it helps to define the product positioning and ad claims for advertising activity later. And here’re the 2 concepts tested in the research: Concept 1: (focus in protecting liver from beer/alcohol for male) Active life-style like too much eating & drinking habits bring bad effects on your health. And liver is one of the most affected organs in your body. You need to find a way to protect your liver from the harmful effects of alcoholic drinks and unhealthy eating. Besides improving eating & drinking habits, taking liver tonics is necessary to remove toxics out of your liver. Product A – specially formulated & clinically proven liver protection tablet composed of Siliphos and multivitamins. Siliphos is extracted from the native milk thistle which was proven by clinical trials that it protects the liver from harmful toxins from drugs, alcohol and food. Product A also has vitamin B complex, vitamin E and zinc which will help keep the liver healthy and functioning well. The product is made from herbal extract therefore it is safe to use. Take the product everyday for healthy liver and you can enjoy life. Concept 2: (communicate multi-benefits for both male & female) Industrial living, air pollution, and eating habit bring bad effects on our health. Liver is affected the most by those factors.