Tài liệu Marketing strategy for launching slim slim in 2011 a product belongs to the anti obesity market & slimming food supplement category

ACKNOWLEDGEMENT Firstly, I would like to express my appreciation to Dr. Nguyen Thi Mai Trang, my project tutor, for all her valued guidance and expert advice in the preparation of this project. Special thanks to my mentor for her personal encouragement and and unlimited support in sharing marketing experience which motivated me to work harder on this project. Last but not least I would like to send my deepest appreciation to my family and my company for their emotional support and spiritual encouragement throughout my MBA study. TUTOR’S COMMENTS I am writing to certify that this project entitled: MARKETING STRATEGY FOR LAUNCHING SLIM SLIM IN 2011 A product belongs to the anti-obesity market & slimming food supplement category   Prepared by Ms. PHAM THI THANH THUY meets the requirement for a business project at the master’s level. It is recommend that Pham Thi Thanh Thuy present her project to the Committee. Hochiminh City, December 9th, 2010 ___________________________________ Tutor’s signature Nguyen Thi Mai Trang TABLE OF CONTENTS   1  CHAPTER I INTRODUCTION ................................................................................................... 1  1.1  VIETNAM BEAUTY INC ........................................................................................................... 1  1.2  PROJECT BACKGROUND ........................................................................................................ 2  1.3  SCOPES AND LIMITATIONS ................................................................................................... 2  1.4  PROJECT OBJECTIVE ............................................................................................................... 3  1.5  PROJECT’S METHODOLOGY .................................................................................................. 3  1.6  DESCRIPTION OF CHAPTER ORGANIZATION ................................................................... 5  1.7  SUMMARY .................................................................................................................................. 5    2  2.1  CHAPTER II LITERATURE REVIEW .................................................................................... 6  MARKETING MIX ...................................................................................................................... 6  2.1.1  The Product ....................................................................................................................... 7  2.1.2  The Price ........................................................................................................................... 9  2.1.3  The Place ........................................................................................................................ 10  2.1.4  The Promotion ................................................................................................................ 10  2.2  TARGET MARKET ................................................................................................................... 12  2.3  POSITIONING ........................................................................................................................... 12  2.4  ATTITUDES AND BEHAVIORS OF CONSUMERS ............................................................. 13  2.5  2.6  2.4.1  Consumer behaviors ....................................................................................................... 13  2.4.2  Consumer attitudes ......................................................................................................... 13  2.4.3  Brand loyalty .................................................................................................................. 14  2.4.4  Brand equity ................................................................................................................... 14  CONSUMER RELATIONSHIP MANAGEMENT .................................................................. 14  2.5.1  Different types of consumer relationships .................................................................... 14  2.5.2  Building long term partnerships .................................................................................... 15  SUMMARY ................................................................................................................................ 16    3  CHAPTER III OVERVIEW OF VIETNAM BEAUTY INC AND ......................................... 17  ITS SLIM SLIM PRODUCT ............................................................................................................... 17  3.1  EXTERNAL FACTORS ............................................................................................................ 17  3.1.1  Political and legal ........................................................................................................... 17  3.1.2  Market situation .............................................................................................................. 17 3.1.3  Social-cultural ................................................................................................................. 19  3.1.4  Technological ................................................................................................................. 20  3.2  THE CORPORATION ............................................................................................................... 21  3.3  THE CUSTOMER ...................................................................................................................... 21  3.4  THE COMPETITORS ................................................................................................................ 23  3.5  SWOT ANALYSIS .................................................................................................................... 24  3.6  3.5.1  Strengths ......................................................................................................................... 25  3.5.2  Weaknesses .................................................................................................................... 25  3.5.3  Opportunities .................................................................................................................. 25  3.5.4  Threats ............................................................................................................................ 25  SLIM SLIM PRODUCT ............................................................................................................ 27  3.6.1  Product sustainable competitive advantages ................................................................ 28  3.6.2  Effect of Fiber and Psyllium .......................................................................................... 28  3.7  COMPETITIVE LANDSCAPE ................................................................................................. 29  3.8  KEY TO SUCCESS .................................................................................................................... 35  3.9  SUMMARY ................................................................................................................................ 35    4  CHAPTER IV MARKETING STRATEGY ............................................................................ 36  4.1  MARKETING OBJECTIVES .................................................................................................... 36  4.2  FINANCIAL OBJECTIVES ...................................................................................................... 36  4.3  TARGET MARKET ................................................................................................................... 37  4.4  POSITIONING ........................................................................................................................... 39  4.5  MARKETING MIX .................................................................................................................... 40  4.5.1  Product ............................................................................................................................ 40  4.5.2  Price ................................................................................................................................ 41  4.5.3  Advertising and Promotion ............................................................................................ 42  4.5.4  Places/ Distribution channels ......................................................................................... 45  4.6  BUDGETING ............................................................................................................................. 47  4.7  IMPLEMENTATION MILESTONES ...................................................................................... 48  REFERENCE ..................................................................................................................................50 APPENDIX A – QUESTIONNAIRE .............................................................................................51 APPENDIX B – SPSS OUTPUTS ...................................................................................................58 Exhibit B1 – Brand awareness ..........................................................................................................58 Exhibit B2 – The brand was frequently purchased ..........................................................................58 Exhibit B3 – Weight of consumers .................................................................................................59 Exhibit B4 – Status of marriage ........................................................................................................59 Exhibit B5 – Reasons to use slimming food supplement products ..................................................59 Exhibit B6 – Advertising Activities were aware .............................................................................60 Exhibit B7 – Quality trustworthy slimming food supplement brand ...............................................60 Exhibit B8 – The most trusted source of information to choose a brand .........................................61 Exhibit B9 – Places where to purchase the product .........................................................................61 ABBREVIATIONS HCM Hochiminh (city) VBI The Vietnam Beauty INC. Compnay DAV Drug Administration of Vietnam SPSS Statistical Package for the Social Sciences LIST OF TABLE Table 2.1 Common Communication platform 11 Table 3.1 Sales of Slimming Products by Subsector: Value 2004 – 2009 18 Table 3.2 Sales of Slimming Products by Subsector: % Value Growth 2004 – 2009 18 Table 3.3 Forecast Sales of Slimming Products by Subsector: % Value Growth 2009 - 2014 19 Table 3.4 Consumer Expenditure by Product Type – 1995/2000/2005/2010/2015 22 Table 3.5 SWOT analysis of VBI 27 Table 3.6 Data on historical market share 2006 – 2009 32 Table 3.7 Analysis on direct competitors 34 Table 4.1 Price Analysis in VND 41 LIST OF FIGURES Figure 1.1 Research design 3 Figure 2.1 The Four P components of the Marketing Mix 6 Figure 3.1 Brand awareness 23 Figure 3.2 Competitors of VBI 24 Figure 3.3 Psyllium most commonly used all over the world 29 Figure 3.4 The brand was frequently purchased 31 Figure 4.1 Weight of consumers 37 Figure 4.2 Status of marriage 38 Figure 4.3 Reasons to use slimming food supplement products 39 Figure 4.4 Advertising Activities were aware 42 Figure 4.5 Obesity health risks 44 Figure 4.6 Quality trustworthy slimming food supplement brand 46 Figure 4.7 The most trusted source of information to choose a brand 46 Figure 4.8 Places where to purchase the product 47 Page 1 1 CHAPTER I 1.1 VIETNAM BEAUTY INC INTRODUCTION Vietnam Beauty INC (VBI) is a totally new private company in the beauty industry. The company offers the combination of health and beauty. The company is solely engaged in promotion and distribution of high quality pharmaceutical products that carry health benefits as well as improving over all appearance from within. The basic products are focused on health food items on skin whitening, skin rejuvenation, slimming, strengthening the immune system against diseases, external skin enhancers like organic whitening soaps, whitening scrubs, peeling sets, whitening creams, etc.. The company does the marketing and distribution for beauty products which be sourced by the international creditable manufacturer at the Vietnamese market through a strong system of local pharmacies over the country. The mission of VBI is to provide best quality products that meet specific consumer’s requirements. The company pledges to provide best service in a timely manner at fair, competitive prices. For the coming five years VBI seeks to achieve the following goals: a) b) Non-financial goals i. To be a well-known distributor in health product area in HCM city. ii. To add a new product every two years. iii. To enter Hanoi market. Financial goals iv. To obtain an average growing rate of 20% per year over time. Until this moment, the company has not had any establishment in the market. The company is implementing the exploration to launch their first product in the year 2011. Page 2 1.2 PROJECT BACKGROUND Prior to the Business Monitor International Ltd’s Report released in Nov 2010, Vietnam’s emergence is as one of the most promising economies in Asia. A bustling market economy has stimulated foreign investment and domestic entrepreneurship, which are now the prime drivers of growth. As a result, the escalating emergence of numbers of middle and high income white-collar workers is inevitable. Together with their high confidence in their future success and economic status, it results in their incremental in disposable income. The demand in work-life balance stimulates them to be appeared as an attractive and goodlooking people. And obesity is one of their primary emerging concerns. With the demand being fuelled by rising obesity levels and increasing consumer disposable incomes, slimming products has been growing rapidly in recent years and expected to achieve a rocket double digit of growth in the next coming years. It is accessed as a most lucrative market than ever. Capturing the opportunity of the increasing demand on slimming products, VBI plans to penetrate this segment by building up an effective marketing strategy for launching its first product “SLIM SLIM”. For the time being, there is no evaluation on marketing activities that will help the VBI’s management know how to have a successful launching for its new product of slimming food supplement into community. The board of management desires to implement a test market, forecast financial plan, etc. in order to establish a marketing strategy for its new product. 1.3 SCOPES AND LIMITATIONS The mentioned project is conducted on end consumer in Ho Chi Minh city where is the first and major market for Slim Slim in Vietnam. The quantitative survey will be conducted to Page 3 explore the important functional benefits and key indicators which drive targeted consumers to choose a slimming product. The results obtained from the survey could be biased because of information collected from the interviewees with different backgrounds. Some executives have provided general answers or requested the author to keep some of their information confidential and served for purpose of statistical calculation only given to the fierce competition in Vietnam. 1.4 PROJECT OBJECTIVE The mentioned project is conducted to explore how the end consumer identify themselves and anti-obesity demand, trend in anti-obesity segment, affordable and acceptable price range, consumers’ perception of current brands in the market, unmet needs and ideal antiobesity brand for consumers. Above all of this exploration, the project is implemented to provide VBI’s management board a marketing strategy for a successful launching Slim Slim product in Hochiminh city market. 1.5 PROJECT’S METHODOLOGY 1. Research Methodology: Descriptive 2. Methodology of collecting data: Quantitative 3. Research tools: Face to face interview 4. Sampling Irrespective of gender: Female, 22-45 years old Geo Coverage: HCM city Sample size: 120 5. Analyzing and findings Figure 1.1- Research design Page 4 This project aims to gain a better understanding of all information related to a successful marketing strategy for launching Slim Slim, therefore, descriptive research purpose was applied. For the descriptive studies such as this one, the quantitative method for data collection and analysis are appropriate. The primary data is generated by using face to face interview. Around 120 respondents with irrespective of gender, age from 22 to 45, overweight and concern on a safe method to lose weight for a good-looking, and who live in Hochiminh city where is the first and major market for Slim Slim in Vietnam, will be interviewed. Questions were asked accordingly to an interview guide (available in Appendix A), which was prepared in advance in order to cover all topics connected to research questions of this study. The questionnaires will be 20-30 minutes length survey analyzing on characteristic, price and market share of main competitive product in local market. After screening interview some members from big sports fit centers and others from beauty care website, we got a number of 120 consumers using different slimming food supplement products, and several findings resulted. The most relevant findings from the survey can be used for the implication of VBI’s marketing strategy. Beside the primary data, the available documents of the company and all the necessary information regarding VBI are also used as the secondary data in order to effectively serve for the study. Furthermore, the relevant statistic information and analyze reports from Euromonitor, Vietnam Nutrition Institute, Salas-Salvado J. and other sources also have been used to illustrate for the study. Based on the secondary data, the current beneficial impact of new slimming product to end consumer can be evaluated and a suitable marketing strategy could be proposed to apply for a successful Slim Slim launching project. Page 5 1.6 DESCRIPTION OF CHAPTER ORGANIZATION This study is organized into four chapters. Chapter I – Introduction: This chapter introduces the background and defines the problems of the project. It sets the project objectives and establishes the design of the research. It shows how the workflow of project goes through the chapter organization. Chapter II – Literature review: This chapter discusses the state of knowledge in marketing communications and relevant concepts within the area of consumer behavior and consumer relationship management. Chapter III – Overview of Vietnam Beauty INC and it’s product, Slim Slim: This chapter generally analysis the internal and external factors which influence to operation of company. It also discusses the advantages and disadvantage of Slim Slim – the first product which VBI intend to launch into HCMC market. Chapter IV – Marketing Strategy: This chapter discusses project findings and its implication into marketing strategy as well as the necessary control for the new product’s launching project. 1.7 SUMMARY This chapter provides the foundation and the blueprint for the study. The background of the research, the research problem, scopes and limitations of the research, the research objectives, design of the research and research methodology are discussed. The discussion helps researcher describe and develop research roadmap for coming consecutive steps. The next chapter will proceed with a detail description of literature review which provides a theoretical foundation before data collection is commenced. Page 6 2 CHAPTER II LITERATURE REVIEW Marketing mix Product Product variety Quality Design Features Brand name Packaging Sizes Services Warranties Target market Price List price Discounts Allowance Payment period Credit terms Promotion Sales promotion Advertising Sales force Public relation Direct marketing Place Channels Coverage Assortments Locations Inventory Transport Source: Marketing Management, Millennium Edition by Philip Kotler Figure 2.1 – The Four P components of the Marketing Mix 2.1 MARKETING MIX Marketing mix is the set of marketing tools that the company uses to pursue its marketing objectives in the target market. Basically, marketing mix involves four Ps elements including product, price, place, and promotion. The company need to create a successful mix of the right product, sold at the right price, in the right place, and using the most suitable promotion. Page 7 2.1.1 The Product 2.1.1.1 What is Product? The product is the central point on which marketing energy must focus. Finding out how to make the product, setting up the production line, providing the finance and manufacturing the product are not the responsibility of the marketing function. However, it is concerned with what the product means to the consumer. In marketing, the term Product is used as a catch-all word to identify solutions a marketer provides to its target market. Marketing therefore plays a key role in determining such aspects as the appearance of the product - in line with the requirements of the market, and the function of the product - products must address the needs of consumers as identified through market research. The product range and how it is used is a function of the marketing mix. The range may be broadened or a brand may be extended for tactical reasons, such as matching competition or catering for seasonal fluctuations. Alternatively, a product may be repositioned to make it more acceptable for a new group of consumers as part of a long-term plan. 2.1.1.2 Key product decision The actual product is designed to provide the core benefits sought by the target market. The company offers these benefits through a combination of factors making up the actual product. There are four keys factors that together help shape the actual product including Consumable Product Feature, Branding, Packaging and Labeling. At this study, the factor of Consumable Product Feature and Branding would be mentioned. Page 8 2.1.1.2.1 Consumable Product Feature Features are characteristics of a product that offer benefits to the consumer. When it comes to developing a consumable product, several decisions related to product features will be faced, including: Feature Set vs. Cost: An important decision focuses on the quantity and quality of features (i.e., feature set) to include in a product. In most cases the more features included or the higher the quality level for a particular feature, the more expensive the product is to produce and market. Is more better? Even if added cost is not a major concern, the company must determine if more feature help or hurt the target market’s perception of the product. A product with too many features could be viewed as too difficult to use. Who should choose the features? Historically the company determined what features to include in a product. For instance, companies offering website hosting services allow website owners to choose from a list of service options that best suit their needs. 2.1.1.2.2 Branding Branding involves decisions establishing an identity for a product with the goal of distinguishing it from competitor’s offerings. In markets where competition is fierce and where consumers may select from among many competitive products, creating an identity through branding is essential. Is is particularly important in helping position the product in the minds of the product’s target market. Page 9 With competition growing more intense in almost all industries, establishing a strong brand allows an organization’s products to stand out and avoid potential pitfalls. A clear understanding of branding is essential in order to build a solid product strategy. Individual Product Branding – with this branding approach new products are assigned new names with no obvious connection to a company’s existing brands. Under individual product branding, the company must work hard to establish the brand in the market since it can not ride the coattails of previously introduced brands. The chief advantage of this approach is it allows brands to stand on their own. This lessens threats that may occur to other brands marketed by the company. 2.1.2 The Price 2.1.2.1 What is Price? Of all the aspects of the marketing mix, price is the one, which creates sales revenue - all the others are costs. The price of an item is clearly an important determinant of the value of sales made. In theory, price is really determined by the discovery of what consumers perceive is the value of the item on sale. Researching consumers' opinions about pricing is important as it indicates how they value what they are looking for as well as what they want to pay. A company’s pricing policy will vary according to time and circumstances. 2.1.2.2 Importance of pricing Setting the right price level takes considerable market knowledge and, specially with new products, testing of different pricing options. Often times consumers’ perceptions of a product is formed as soon as they learn the price, such as when a product is first seen in a store. While the final decision to make a purchase may be based on the value offered by the entire marketing offering, it is possible the consumer will not evaluate a product at all based on price alone. Otherwise, pricing may become the most important of all marketing Page 10 decisions if it can be shown that consumers are avoiding learning more about the product because of price. 2.1.3 The Place Although figures vary widely from product to product, roughly a fifth of the cost of a product goes on getting it to the consumer. 'Place' is concerned with various methods of transporting and storing goods, and then making them available for the consumer. Getting the right product to the right place at the right time involves the distribution system. The choice of distribution method will depend on a variety of circumstances. It will be more convenient for some manufacturers to sell to wholesalers who then sell to retailers, while others will prefer to sell directly to retailers or consumers. 2.1.4 The Promotion 2.1.4.1 What is Promotion? The role of promotion, is also termed as marketing communications, is very important as it builds brand awareness, creates favorable brand attitudes and enhances purchase intention. (Belch and Belch 1998; Rossister and Percy 1998). Promotion is the business of communicating with consumers. It will provide information that will assist them in making a decision to purchase a product or service. The razzmatazz, pace and creativity of some promotional activities are almost alien to normal business activities. The cost associated with promotion or advertising goods and services often represents a sizeable proportion of the overall cost of producing an item. However, successful promotion increases sales so that advertising and other costs are spread over a larger output. Though increased promotional activity is often a sign of a response to a problem Page 11 such as competitive activity, it enables a company to develop and build up a succession of messages and can be extremely cost-effective. 2.1.4.2 Promotion mix Promotion is also termed as marketing communications. The role of marketing communications is very important as it builds brand awareness, creates favorable brand attitudes and enhances purchase intention. (Belch and Belch 1998; Rossister and Percy 1998) Advertising Print, broadcasts, online ads Packaging Motion pictures Brochures, booklets Sales promotion Public relations Personal selling Contest, games, sweepstake, lotteries Press kits Sales representation Premiums, gifts Sampling Fair, tradeshow Video news releases Speeches Seminars Annual reports Directories Demonstration Billboards, posters Coupons Charitable donation Rebates Sponsorships Low interest financing Publications Display signs Point of purchase displays Audio visual materials Websites and banners Trade-in allowances Continuity program Sales meetings Incentive program Fairs and tradeshows Direct marketing Catalogue Mailings Telemarketing Electronic shopping TV shopping Fax Email Voice mail Community relation Lobbying Identity media Special events Source: Marketing Management, Millennium Edition by Philip Kotler Table 2.1 – Common Communication platform Page 12 2.2 TARGET MARKET The target market and the marketing mix variables of product, place(distribution), promotion and price are the two elements of a marketing mix strategy that determine the success of a product in the marketplace. A target market or target audience is a group of consumers that the business has decided to aim its marketing efforts and ultimately its merchandise. A well-defined target market is the first element to a marketing strategy. Target markets are groups of people separated by distinguishable and noticeable aspects. Target markets can be separated into geographic segmentations (their location); demographic/socio-economic segmentation (gender, age, income occupation, education, sexual orientation, household size, and stage in the family life cycle); psychographic segmentation (similar attitudes, values, and lifestyles); behavioral segmentation (occasions, degree of loyalty); and product-related segmentation (relationship to a product). Once these distinct consumers have been defined, a marketing mix strategy of product, distribution, promotion and price can be built by the business to satisfy the target market. 2.3 POSITIONING The most common definition of positioning is identifying a market niche for a brand, product or service utilizing traditional marketing placement strategies (i.e. price, promotion, distribution, packaging, and competition). Positioning is the perception that happens in the minds of the target market. It is the aggregate perception the market has of a particular company, product or service in relation to their perceptions of the competitors in the same category. It will happen whether or not a company's management is proactive, reactive or passive about the on-going process of