PADDLE POP MARKETING PLAN 2014

TR NG I H C M TP HCM HO CHI MINH CITY OPEN UNIVERSITY UNIVERSITÉ LIBRE DE BRUXELLES SOLVAY BRUSSELLS SCHOOL ECONOMICS & MANAGEMENT MMA7 VU THI NGUYET QUE LO DANG MY VAN PADDLE POP MARKETING PLAN 2014 MASTER PROJECT MASTER IN MARKETING AND ADVERTISING Tutor’s name: HUYNH BA CHAN NHU Ho Chi Minh City (2014) COMMITMENT We, Vu Thi Nguyet Que and Lo Dang My Van, commit that this project has been accomplished by ourselves based on fact and figure collected from the public and Unilever Vietnam This project is done for the completion of Master Marketing and Advertising MMA course only and will not be used for other purposes ACKNOWLEDGEMENT We would like to express our special thanks to Professor Marianne Claes who has given us clear guideline at the beginning as well as timely support during the project We would also like to thank Ms Huynh Ba Chan Nhu, our tutor, who was very patient, willing and supportive in following up our project with practical advices and guidance Our grateful thank is also extended to all of Professors of the course MMA7 whose lectures have built the foundation knowledge for us In addition, we would like to express our appreciation to great support of Wall’s Vietnam marketing team as well as the encouragement of Class Administrator (Ms Le Thi Ngoc Hien) and all members of MMA7 course Last but not least, our deep gratitude is given to our beloved families, friends and colleagues, who have always inspired and motivated us during the course TABLE OF CONTENT Executive summary ……………………………………… …………………………7 I BRAND OVERVIEW About Unilever …………………………………………………………………8 About Wall’s ice cream ………………………………………………………8 Market situation analysis ……………………………………………………….9 3.1 Macro environment analysis …………………………………………… 3.2 Ice cream industry analysis ………………………………………………11 3.3 Competitors analysis ………… …………………………………………12 II BRAND ANALYSIS Business performance ………………………………………………………….15 Brand marketing activities in 2013 …………………………………………….16 P’s Analysis 3.1 Proposition ………………………………………………………………17 3.2 Promotion…………………………………………………………………21 3.3 Place…… ……………………………………… …………………… 22 3.4 Packaging ……………………………………………………………… 24 3.5 Price ……………………………………………….…………………… 25 3.6 Product… ….…………………………………………………………… 26 III “PADDLE POP ADVENTURE FRAMEWORK” CAMPAIGN ANALYSIS Campaign overview …………………………………………………………….29 6P’s Deep Dive …………………………………………………………………30 2.1 Place …………………………………………………………………… 31 2.2 Promotion ……………………………………………………………… 32 IV RECOMMENDATION Place ……………………………………………………………………………35 Promotion ………………………………………………………………………36 REFERENCE………………………………………………………………………….39 APPENDIX APPENDIX A: STORY - DIAGRAM …………………………………………………41 APPENDIX B: PHOTOS ………………………………………………………………43 APPENDIX C: QUESTIONAIRE SAMPLE OF SURVEY ………………… ………47 GLOSSARY A&P ATL BCI BTL CAGR CVS FMCG JSC KP KS LS MP POSM SMEs Tea RTD TO TVC advertising & promotion above the line brand communication idea below the line compound annual growth rate convenient store fast moving consuming goods joint stock company kids places kids schools leisure parks moms & pops (street shops) point of sales’ materials small medium entrepreneurs tea Ready to Drink turn over television commercial EXECUTIVE SUMMARY Amongst many food and beverage brands of Unilever Corporation – one of the biggest FMCG global corporations, Wall’s is one of the most popular brands worldwide Established since 1922 in London, until now, Wall’s has going through a long-standing history with significant growth Specifically in Vietnam, Walls appeared with huge investment since 1997 but then, due to constraint of market demand, Unilever decided to acquire the whole factory and knowhow technology to Kinh Do Corporation in 2003 Until 2009, Wall’s came back with a lot of effort in innovation and execution to gain back the market share as well as build growth opportunity for the whole industry According to Euromonitor report, Vietnam ice cream industry is really potential to invest with the expected volume CAGR growth will be up to 7% and value CAGR growth will be even higher with 10% at the end of 2017 The better standard living and changing in behavior of consumers from cheaper, poor quality to medium high and branded ice creams are also some main reasons that facilitate for the positive growth of this industry However, along with the attractive of market, surely the competitiveness will be also very harsh with strong players that Wall’s has to face such as Kinh Do, Trang Tien, Thuy Ta and some imported brands like Baskin Robins, Swensen’s and Hagen Dazz Within the scope of this Thesis, Wall’s health will be analyzed under the model 6P’s of Unilever with levers as Price, Product, Proposition, Pack, Place and Promotion to give the brand overview Then, Paddle Pop – the biggest contributor in TO of Wall’s – with its main campaign “Adventure Framework” will be chosen to analyze deeper Continue to follow the 6P’s Model but in the deeper layer as 6P’s Detective Worksheet, the surface issue “weak proposition towards consumers’ minds” will be investigated into each P lever and then define the root cause According to this exercise, Place and Promotion are picked up to dig dive and based on that to offer some relative recommendations that Wall’s can apply to improve Paddle Pop marketing activities next year Specifically, the recommendation of Place will be focused on howto strengthen its visibility in street shops and increase availability in modern trade Meanwhile, the recommendation of Promotion will be allocate the A&P split to be more appropriate and effective, pilot the testimonial communication approach to promote innovative products and change the way to implement the promotion burst currently I BRAND OVERVIEW About Unilever: Unilever is an Anglo – Dutch multinational consumer goods company founded in 1930 producing food, home care and personal care products It is the world’s largest consumer goods company and the world’s largest manufacturer of ice cream Unilever has operations in over 100 countries and owing 400 brands with 25 of its largest brands accounting for over 70% of total sales The company structure is dual listed company based in Rotterdam, Netherland and London UK which have the same directors but operates as a single business Unilever started its operation in Vietnam since 1995 with total investment up to date is USD 300 million, specializing in Home and Personal Care brands, Oral Care products, Foods and Tea-based Beverages Unilever Vietnam is currently operating a factory in Cu Chi while maintaining contract manufacturing relationship with various local SMEs Many of Unilever Vietnam’s brands have become #1 household brands in Vietnam, including Omo, Sunlight, Dove, Sunsilk, Clear, Lux, Close-up, Lipton, Knorr, Viso, Vaseline, P/S and Surf About Wall’s ice cream: In 1922, Thomas Walls & Sons, originally a sausage company, began making ice cream in London, same year the company was acquired by Lever brothers Today Wall’s is part of Unilever’s ‘Heartbrand’, sold in more than forty countries Each country has its own brand name but the heart logo is universal Wall’s ice cream entered Vietnam market since 1997 and Wall’s was the first brand had heavy investment in production and professional branding activities in local ice cream market After years, Wall’s has become a strong brand with 20% - 30% growth per annum, 50% market share and built up a wide distribution network with 115 distributors and 4000 cabinets in main cities However, the result was not as Unilever expectation due to low income of consumers while the price of Wall’s ice cream was at premium level As a consequence, in 2003, Unilever sold the entire production facilities and technology of Wall’s to Kinh Do, a big local confectionery producer and the product name was changed to Kido ice cream During 2003 to 2004, Kinh Do ran campaigns with both Wall’s and Kido’s logos to gradually converted consumers awareness to new brand In 2005, Kido was the dominant player in ice cream market Since 2006, Metro Cash & Carry imported Wall’s from Thailand and distributed through their channels as other commodities Until August 2009, Unilever has stepped up the investment in Wall’s ice cream in Vietnam through import from Thailand when positive growth has been foreseen in local ice cream market With belief that people need small moment of pleasure in lives, Wall’s ice cream has the vision to create 100 million smiles every day by bringing joy and happiness to every home in Vietnam Market Situation Analysis: 3.1 Macro Environment Analysis: 3.1.1 Political: Recently, Vietnam has good opportunity to develop its export market when going to sign some Free Trade Agreements such as TPP (Trans-Pacific Strategic Economic Partnership Agreement) or European Agreements In vice versa, Vietnam also has to open to welcome more world-class brands into the domestic market which specifically belongs to Food & Refreshment industry can be named as Burger King, Mc Donald’s, Popeye, Subway, Hagen Dazz, Baskin Robins, Diary Queen and so on 3.1.2 Economic: Based on Vietnam Food & Drink Report (BMI, 2013), in 2013, per capita food consumption growth is 6.4% and forecast to 2017, the compound annual growth rate (CAGR) will be 8.39% The healthy increase in food expenditure is a good signal for Food & Drink business to invest more strongly 10 Food Consumption 2010 - 2017 30 300 25 250 20 200 15 150 10 100 50 0 Food consumption (Eur bn) Per capitafood consumption (Eur) Source: General Statistics Office of Vietnam, BMI, 2013 3.1.3 Social: According to the research of US Department of Agriculture in their Retails Food Report 2013, in recent years, Vietnam is witnessing some new trends in society that are: - More consumers have western-minded, especially the large number of youngsters who live in urban areas - More middle-class families which parents are busy with working and not have much time for food shopping - Modern retailers (super markets, hyper markets, convenient stores) offer the wider range of product from low tier to premium that can attract even low income consumers - More women join the workforce and therefore, disposable family income also increase that will be spent for higher-value food products - More concern about and willingness to pay for nutrition, quality, hygiene, and food safety - More loyal to brands but also willing to discover new products - Shop for food in both modern retailers (weekly) and traditional markers (daily) 11 3.1.4 Technology: Though government has focused to build, agriculture sector is still blamed to be too slow to adapt new technology that is globally competitive in the long term However, thanks to the penetration of world-class food & refreshment brands, the know-how technology is also coming to Vietnam and expected to be the motive for agriculture sector to push its technology development 3.1.5 Legal: Owing to some scandals related to Food Hygiene in previous years, since 2013, Ministry of Health started to tighten the regulatory, especially in the additive products, dietary supplements and food advertisement in general This authority’s movement causes a considerable difficulty for food & refreshment businesses when making decision to import or produce new products that might face low chance to be censored or promoted later on 3.2 Ice-cream Industry Analysis: 3.2.1 Market analysis: Ice cream market is regarded as a Blue Ocean which is very potential to grow but quite not harsh competitive yet In 2012, Euromonitor International informed that the market sees the 6% growth in volume and 19% growth in value to achieve 72 million Euro equals to thousand tons ice cream Similar to total food market trend, the improvement in economic situation and disposable income create the growing demand for ice cream in both impulse and take-home Up to 2017 (5 years forecast period), ice cream category in Vietnam is supposed to grow 7% in volume CAGR and 10% in constant value CAGR to reach 113 million Euro or equivalent to 32.5 thousand tons 35 (each for persons) to arrive Disneyland Hong Kong are also offered to push volume sales As this promotion burst has just finished in Jan 2014 so there is no official evaluation yet but feedback from consumers and retailers are extremely wow IV RECOMMENDATION: Place: In order to tackle the common challenge of almost street shops, main distribution channel of Paddle Pop, such as the limitation of space; high loading of good items and low awareness of shop owners about retail display, we would recommend Wall’s to strengthen its visibility in street shops and increase availability in modern trade Strengthening the visibility in street shops In term of statistic, Paddle Pop has wide coverage in market via 5.673 street shops With such a wide network, it is not easy for Wall’s to monitor the execution at all shops which will require huge cost while last year has seen a flat growth year in Unilever Currently, Wall’s has periodic brand audit to track the activities of distributors and shops However, with this huge number of shops, the effectiveness of brand audit will be a challenge In order to strengthen the monitoring at shops, we would recommend Wall’s to rank these shops based on strategic location, business performance, shop image and divide them into different focus groups in order to implement different level of monitoring as the following example Focus group Top 1000 Criteria Top revenue + good image + strategic location (District 1, 2, 3, 7) Bottom 500 Decreasing revenue + poor image Actions - Weekly visit by salesmen - Monthly brand audit (at 85 - 90% compliance is required) - More activities: display contest among shops in group, mini – event during promotion campaign Clean up to save budget for additional activities at shops in Top 1000 group Same for new shops, tougher opening criteria should be applied and Wall’s should prioritize on efficiency rather than cabinet development 36 Increase availability in modern trade As current strategy, Wall’s ice cream is sold in 76% modern trade including supermarket, convenience stores and minimart In this channel, Cornetto is the core product as well as the main display theme to target to teenagers and young consumers Moreover, convenience stores and minimarts are predicted to grow faster in the next years to replace street shops when consumers nowadays have the tendency to switch to this channel Taking the advantages of modern trade (good location, good display, professional operation and professional service) and disadvantages of street shops (messy image, limited space, low brand awareness of shop owners) into consideration, we recommend that Wall’s should expand the presence of Paddle Pop in modern trade besides strengthening its visibility in street shops In modern trade, the assortment of Paddle Pop should be more diverse with Paddle Pop box for mom consumers to take home Budget will not be mentioned here since Wall’s can utilize current operation budget but more focus on cost efficiency by close monitoring execution at shop to protect brand image Promotion: Investment Split: The ratio of ATL & BTL actually can be revised a little from 30:70 to 35:65 to strengthen proposition of innovative products more Above The Line: With ATL, besides adapting Thematic and Promotional TVCs like before, Paddle Pop should also focus to promote Paddle Pop Moo via Testimonial approach People usually think that eating Ice Cream is for fun only but not nutrition at all The product concept of 37 Moo is very new but exciting towards Vietnamese consumers: a Moo stick contains the same Calcium amount compared to a 200ml milk bottle A Testimonial TVC which interviews the satisfied consumers, including parents and kids, about their good point of view towards great benefit and great taste of Moo can lead to the awareness and credibility in other target consumers Moreover, the hallo effect from this TVC will help other Paddle Pop products to increase brand equity and hence, push more sales Below The Line: As for promotion program, Paddle Pop should still keep the mechanic they are doing now for Year End promotion burst: combine between Instant and Valuable Gifts The quick survey within the scope of this analysis (Appendix 3) shows kids are impatient to sit down silently waiting for the big prize without anything to keep them calm and also are higher demand year by year about the prize value Thus, Instant Gifts might not need to be high value but must be very creative, diversified and insightful with kids such as Game Cards, Color Pencils, etc… that are designed under the format of collection so kids will love to buy more to have all Meanwhile, Valuable Gifts can repeat the good momentum of last year with Abroad Amusement Trips and also, some prizes that are not super big in real value but still sounds very appealing like “1 year of eating Paddle Pop” which costs around 30 € per prize only Towards Summer promotion burst, Paddle Pop can apply the new mechanic of Valuable Gift that is totally different with Winter In addition to Instant Gifts, when collecting 10 sticks with different animations, kids can exchange a ticket to join Lion and his friends in “An Adventure to Paddle Pop World” This event will be organized in an amazing park with the design of real animation world of Paddle Pop Kids will be classified into “Group of Great Friends” up to their ability when joining small games Each group then will be equipped with some basic skill and then assigned a challenge by Lion to win over the bad power and gain the prize for whole group For example, Jaguar – The Fastest group will select kids who run fastest in the short marathon then giving them some tips of how to breathe right and place their foot into the ground right to ensure the fast but also the durability After that, they will join a relay with obstacle along the way to bring a secret message from Lion to his friends but not caught by wizards from bad powers In the meantime of waiting for kids, mums will be invited to join a talk show of nutritionist and psychologist specifically about kids to find out how to raise kids better Event then will be followed with a gathering of both mums and kids to follow a new episode of Lion and his friends cartoon and wrapped up by a lucky draw with appealing prizes 38 Besides promotion programs, Paddle Pop also can create a mini game on Iphone/ Ipad for kids to capture the trend of technology-savvy in kids nowadays The game is no need to be complicated, just need to feature the Lion and his friends to go adventure and overcome obstacles which are quiz of Math or Science for instance This game will help Paddle Pop not only gain love from kids but their moms owing to the educational characteristic In summary, the activity of Paddle Pop next year might be more diversified but still keep the same budget like 2013: Jan Feb Mar Apr May Jun Sep Oct Nov Dec Paddle Pop MOO Paddle Pop New Product Type Product Inno Product Inno Promotion Promotion ATL Activity -Testimonial TVC (production + airing) -Thematic TVC (adaptation + airing) -TVC (production + airing) -TVC (adaptation + airing) Cost 170,000 € 150,000 € 150,000 € 150,000 € -POSM -POSM -POSM -Instant Gifts -Event -POSM -Instant Gifts -Valuable Gifts 10,000 € 10,000 € 180,000 € 160,000 € 10,000 € 400,000 € 100,000 € 650,000 € 10,000 € 400,000 € 210,000 € 770,000 € Campaign BTL Activity Cost Total Cost Paddle Pop SUMMER Jul Aug 1,760,000 € Paddle Pop YEAR END 39 REFERENCE Links: www.unilever.com.vn http://m.tuoitre.vn/chuyen-trang/Tuoi-Tre-Cuoi-tuan/1059648614,Nhay-voi-soi.ttm http://www.doanhnhansaigon.vn/online/kinh-doanh/chuyen-laman/2013/08/1075961/thi-truong-kem-mat-nguoi-an-nong-nguoi-ban/ http://nhipcaudautu.vn/article.aspx?id=2464-unilever-tai-tung-kem-walls http://hoidoanhnhan.vn/news_detail_hdn.php?id=2284 http://sgtt.vn/oldweb/cacsobaotruoc/412_16/p25_visaokemwalllaiban.htm http://www.bryantchristie.com/blogs/vietnam-publishes-new-food-additive-regulation http://vietnamnews.vn/economy/237343/ministry-tightens-food-advertising-laws.html http://www.intellasia.net/unilever-sells-out-ice-cream-interest-48095 http://massogroup.com/knowledge/insights/8058-vietnamese-ice-cream-market-greatpotential.html http://www.thanhniennews.com/2010/pages/20100522105054.aspx http://english.vietnamnet.vn/fms/business/82963/domestic-ice-cream-market-heatsup.html http://www.itpc.gov.vn/exporters/news/tintrongnuoc/2013-01-02.663050/2013-0801.610091/2013-08-26.108241 http://celano.vn/ 40 Reports Vietnam Food & Drink Report, BMI, 2013 Retails Food Report, US Department of Agriculture, 2013 Ice Cream in Vietnam, Euromonitor International, 2013 Books Michael Porter, Competitive Strategy, 1980 Philip Kotler, Marketing Insights From A to Z, 2006 41 APPENDIX A: STORY - DIAGRAM Appendix 1: New Paddle Pop Story Appendix 2: Media Plan 2011-2012-2013 Source: Internal Data 42 Appendix 3: Price Ladder Wall’s vs Snacks & Drinks Source: Internal Data Appendix 4: Cabinet allocation per channel Channel Convenience store Kid place Kid school Leisure park Street shop Supermarket Stock point dealer Teen school Total cabinets Source: Internal Data Cabinets 283 49 11 764 5617 42 160 130 7056 Ratio 4% 1% 0% 11% 80% 1% 2% 2% 43 APPENDIX - PHOTO Appendix 5: Various displays at various channels Street shops Swimming pool Leisure park Kid school canteen Kid s places Teen s school canteen Mini mart Convenience store Sport club Street shop near teen s school 44 Appendix 6: POSM and product display as standard Appendix 7: Messy display at stores 338 Nguyen Thi Dinh Street, Dist 2, HCMC 336 Nguyen Thi Dinh Street, Dist 2, HCMC 93 Nguyen Duy Trinh Street, Dist 2, HCMC 253 Luong Dinh Cua Street, Dist 2, HCMC 45 Appendix 8: Poor cabinet display 580 Nguyen Duy Trinh Street, Dist 2, HCMC 253 Luong Dinh Cua Street, Dist 2, HCMC 14J, Quoc Huong, Thao Dien Ward, Dist 2, 338 Nguyen Thi Dinh Street, Dist 2, HCMC 46 Appendix 9: POSM at shop Paddle Pop standee was put away POSM was hidden POSM was not attached to ice cream cabinet No POSM 47 APPENDIX C: QUESTIONAIRE SAMPLE OF SURVEY Sample size: 15 mums & 15 kids from -10 ages, Ho Chi Minh City, Class A-B-C Methodology: In Depth Interview SURVEY ON AWARENESS OF PADDLE POP’s “ADVENTURE” PROPOSITION Form for Mum Thank you to join this survey about Paddle Pop Ice Cream We ensure that this survey is used for study purpose only, not commercial and also, your identity will not be exposed at all Age: Number of kids: Sex: Kids’ sex: Kids’ age: Part 1: PRODUCT & PACK Which kinds of snacks/ drinks your kids usually to have? Why? Which brands of ice cream your kids usually to have? Why? Which specific products of that ice cream brand your kids usually have? Is there any improvement needed for the products mentioned above, about Taste? Is there any improvement needed for the products mentioned above, about Packaging (format, size, material)? Part 2: PRICE Which price you think is suitable for a single proportion of ice cream? Why? What you think about the price of ice cream products your kids usually have? High, low, value for money? Why? How you know about the price of ice cream products your kids usually have? Via TV, display tools at stores, information from retailers, etc…? Part 3: PROPOSITION Is there any difference between the ice cream brand that your kids usually to have and other brands? If yes, what is the difference? Part 4: PLACE Where you and your kids usually purchase ice cream? Why? Do you satisfy with the place you and your kids usually purchase? Why or Why not? Do you always can find the products your kids usually have in that place? What kinds of display tools you can see at that place? How easily can you and your kids find the products you and your kids want? Via help of retailers, self searching, ect…? 48 Part 5: PROMOTION How you and your kids know about the new products/ promotion programs from the brand you like? Via TV, information from retailers, display tools, etc? What is the latest TVC of the brand you and your kids like? What did it communicate about? What is the latest promotion program of that brand? What did it communicate about? Is there any improvement needed for that brand’s activities? Is there any improvement needed for that brand’s promotion programs? SURVEY ON AWARENESS OF PADDLE POP’s “ADVENTURE” PROPOSITION Form for Kids Thank you to join this survey about Paddle Pop Ice Cream We ensure that this survey is used for study purpose only, not commercial and also, your identity will not be exposed at all Age: Sex: Part 1: PRODUCT & PACK Which kinds of snacks/ drinks you usually have? Why? Which brands of ice cream you usually have? Why? Which specific products of that ice cream brand you usually have? Is there any improvement needed for the products mentioned above, about Taste? Is there any improvement needed for the products mentioned above, about Packaging (format, size, material, etc…)? Part 2: PRICE How much is the ice cream products you usually have? How that price is compared to other brands’ products of the same range? High, low, the same? How you know about the price of ice cream products you usually have? Via TV, display tools at stores, information from retailers, etc…? Part 3: PROPOSITION Is there any difference between the ice cream brand you usually have and other brands? If yes, what is the difference? 49 Part 4: PLACE Where you usually purchase ice cream? Why? Do you satisfy with the place you usually purchase? Why or Why not? Do you always can find the products you usually have in that place? What kinds of display tools you can see at that place? How easily can you find the products you want? Via help of retailers, self searching, ect…? Part 5: PROMOTION How you know about the new products/ promotion programs from the brand you like? Via TV, information from retailers, display tools, etc? What is the latest TVC of the brand you like? What did it communicate about? What is the latest promotion program of that brand? What did it communicate about? Is there any improvement needed for that brand’s activities? Is there any improvement needed for that brand’s promotion programs?