1491 ONLINE ADVERTISING APPLICATION IN PROCTER&GAMBLE VIETNAM

MINISTRY OF EDUCATION & TRAINING HO CHI MINH CITY OPEN UNIVERSITY UNIVERSITEÙ LIBRE DE BRUXELLES SOLVAY BUSINESS SCHOOL MBMM PROGRAM Le Thi Thanh Huyen “ONLINE ADVERTISING APPLICATION IN PROCTER&GAMBLE VIETNAM” FINAL PROJECT MASTER IN BUSINESS & MARKETING MANAGEMENT Tutor: Dr Dang Ngoc Dai Ho Chi Minh City (2007) ACKNOWLEDMENT May I take this chance to thank many people for making this project possible I would like to thank my tutor, Dr Dang Ngoc Dai for his guidance and support throughout the end-course project and to my mentor, Mr Dau Quang Phan for his encouragement advice and quick respond when I need technical assistance My thanks also go to the professors who involving in lecturing for supporting me in understanding my academic endeavor I would also like to thank Mr Serge and Ms Tran for strong coordination and support throughout the course My special thanks are to Management Board of Vietnam and Belgium program, especially, Mr Bayen and Mr Tran Anh Tuan for their strong collaboration in developing this course TABLE OF CONTENT Executive summary Chapter 1: Introduction Chapter 2: Online Advertising Overview 2.1 Internet characteristics 2.2 Internet comparison with other media 2.3 Online advertising formats 2.4 Online advertising trends in the world 2.5 Vietnam online advertising market context 2.5.1 Internet penetration 2.5.2 Online advertising trends in Vietnam Chapter 3: Business Environment Analysis 3.1 Market analysis 3.1.1 Market context 3.1.2 Target audience 3.1.3 Advantages of online advertising 3.1.4 Competitor analysis 3.1.5 Case: Pepsi’s and Unilever’s online advertising campaigns assessment 3.2 Internal analysis 3.2.1 P&G overview 3.2.2 The current advertising strategy of P&G 3.2.3 SWOT analysis Chapter 4: Online Advertising Application in P&G Vietnam 4.1 Objectives 4.2 Online strategy and tactics 4.3 Online advertising development Conclusion Reference materials Appendix ABBRIVIATION P&G Procter & Gamble FMCG Fast Moving Consumer Goods TNS Taylor Nelson Sofres SMS Short Message Service CRM Customer Relationship Management HCMC Ho Chi Minh City OOH Out-of-home TVC Television Commercial TOM Top of mind TABLE AND CHART INDEX Chart Chart 1: Internet consumption (Share of voice) Chart 2: Media consumption trend Chart 3: Internet penetration in four key cities Chart 4: Internet access frequency in four key cities Chart 5: Internet surfer profile by Gender and Age group Chart 6: Internet surfer profile by Education and Income Chart 7: Internet advertising impact Chart 8: Print advertising impact Chart 9: TV advertising impact Table Table 1: Unilever’s spending proportion by media Table 2: Effectiveness of Unilever’s online advertising campaigns Table 3: P&G’s spending proportion by media Table 4: Sample age distribution in HCMC i EXECUTIVE SUMMARY Procter & Gamble (P&G) is one of leading FMCG companies in Vietnam market P&G is also the second player in Vietnam advertising market with total spending (based on TNS data) at USD 17 million in 2006 In Vietnam, P&G only uses traditional media that is TV, print and radio TV is still the king but there is a fact that people nowadays have a tendency to spend less on TV, print and radio while spends more on internet In addition, TV, print and radio traditionally enable one way communication only while internet allows interactivity with consumers Internet seems to have more advantages than other current media However, Vietnam is just in the first stage of e-commerce and some companies still consider internet as a traditional channel Companies show their concern on using online advertising tools and there is no research company studies the effectiveness of online advertising For above reasons, there is a need to find out whether internet works effectively and should and how P&G use internet as a new channel beside its current channels To answer for above-mentioned questions, the project explores the following matters: - Vietnam advertising context which mentions online advertising trends in Vietnam Advantages of online advertising in terms of cost efficiency, convenience and target audience Online advertising effectiveness is also measured by the attitude of internet users towards advertisements on internet ii - Case study: success of online advertising campaign of Unilever who already aggressively use internet as a supporting tool in the last Lunar New Year and Pepsi who currently uses internet as a main channel to promotion - Online advertising application in P&G Vietnam situation A research is carried out to support the project However, because of limitation in time and resource, just a small sample size is recruited The data, therefore, not ensure a high fidelity Overall, internet has some advantages in comparison with other media which are i) penetration rate is quite high and increasing; ii) people whom internet reaches are young, well educated and have high income, iii) internet can convey more information and get feedback of consumers quickly; iv) there is no limitation in internet and the cost is relatively lower than other media In addition, the online advertising strategy of Unilever has a good result in terms of image, consumer’s recall and business From that point, although current media such as TV, print and radio still show their effectiveness, P&G should use internet as an additional channels to support offline activities With condition of Vietnam market which is in the beginning period of e-commerce, P&G can use online advertising under the forms as follows: website, banner ads and email However, these forms should ensure the attractiveness and innovation to stand out from the cluttered advertising environment Page Chapter INTRODUCTION Procter & Gamble (P&G) and Unilever are two market leaders in Vietnam FMCG market Unilever, therefore, becomes a big competitor of P&G Their products are in harsh competition in most of categories such as hair care, skin care and laundry According to TNS, in 2006, Unilever spent USD 49 million on advertising of which USD 42 million was on television Beside key channel TV, Unilever also uses Print, Radio, Internet and Out-of-home (OOH) At the end of last year, on the occasion of Lunar new year (Tet holiday), the company launched a series of campaigns focusing on internet They use online communication as a backup to offline communications These activities are considered as a part of package to reduce marketing communication budgets and at the same time, reaching a wider audience Meanwhile, most of marketing activities of P&G are advertising on TV, Print and OOH These advertising media have used for many years, but recently there is a need to locate new advertising media that are less costly, less cluttered and potentially more effective than the established media Objectives of the project The project studies the effectiveness of online advertising and considers the possibilities of applying online advertising in P&G business Scope of the project Page The project tries to explore the effectiveness of online advertising in Vietnam market towards FMCG products only Methodology Besides data get from government and market research companies, data also get from a research which is carried out to support the project However, because of limitation in time and resources, just a sample size is recruited which means the high deviation in data Structure of the report There are four main parts to this report Part gives the reason to choose this project, project’s objectives, scope and methodology used to support the project Part introduces some concepts, definition and overview of online advertising in the world and in Vietnam market context Part explores influential factors to online advertising application in P&G Vietnam Part examines the development of online communication in P&G business REFERENCE MATERIALS Vietnamese Hà Anh (2007), Tính tương tác: lợi quảng cáo trực tuyến, Vietnam Investment Review Newspaper (Báo Đầu Tư) Lan Anh (2005), Thời quảng cáo trực tuyến Châu Á, i-Lever Brand Strategy Phương Anh (2006), Thế kỷ 21: thời quảng cáo trực tuyến, E-chip Magazine Quảng cáo trực tuyến sôi động, Vietnam Net online newspaper, http://www.vnn.vn/cntt/2006/07/596957/ Trần Trọng Thủy (2006), Giờ G cho quảng cáo trực tuyến, Báo Nhịp Cầu Đầu Tư Phan Khương (2004), Quảng cáo trực tuyến bùng nổ trở lại, Báo Vnexpress.net T.H (2007), “Việt Nam: miếng bánh quảng cáo trực tuyến ”, Báo Sài Gòn Tiếp Thị Minh Trang, Nguyễn Thạc Minh (2006), Mười lý nên đưa internet vào chiến lược tiếp thị, http://www.chungta.com/Desktop.aspx/CNTT- VT/Marketing-TrucTuyen/ English Bridget Jackson (2007), Innovative Ways To Reach Consumer, Accenture 10 Terence A Shimp (2002), Advertising, Promotion & Supplemental Aspects of Integrated Marketing Communications, University of South Carolina 11 Chris Fill (2002), Marketing Communication – Context, Strategies and Applications, London 12 Dan Martin (2006), Vietnam Business Forecast Report, Business Monitor International Ltd 13 Understanding Consumers, TNS i APPENDIX Appendix 1: Quantitative research description Objectives Objective of this research is to confirm some information obtained from qualitative research about internet surfer’s behaviors, their reactions against online ads and measure the effectiveness of some online advertising campaign of Unilever Survey design All interviews were conducted with Vietnamese adults aged 15 and above in HCMC The survey with sample size of 50 internet users is conducted from Apr 14, 2007 to Apr 30, 2007 in HCMC Sample proportion for each age group is defined based on proportion of internet users provided by TNS Media Vietnam Sample proportion as follows Table 4: Sample age distribution in HCMC Gender Total Male Female Age group 15-24 25-34 35-44 45 up 15-24 25-34 35-44 45 up Internet penetration 100 48.9 30.1 11.3 9.7 52.6 29 6.6 11.8 Sample 30 Source: TNS Media Vietnam – Media Habit Survey Wave 1.2006 ii Interview The survey is carried out by email Questionnaire in Vietnamese are sent to respondents with the appropriate age It takes 15 minutes for respondents to follow a structured questionnaire Data processing All data is inputted in excel file and use pivot table to process Questionnaire Please refer to questionnaire in English in Appendix and Vietnamese in Appendix Appendix 2: Media consumption trend And as per a research done by Aegis, people have a tendency to spend less on analog TV and print while spend more on internet Internet consumption increases year by year Chart 2: Media consumption trend Average hour per week Source: Aegis – Czech data iii Appendix 3: Internet access frequency Internet penetration in four key cities The internet penetration in cities is 37% The figure is higher in HCMC with 45% Chart 3: Internet penetration in four key cities Source: TNS Media Vietnam – Media Habit Survey Internet access frequency in cities About 12% of key cities’ population gets access to internet almost everyday Chart 4: Internet access frequency in key cities Source: TNS Media Vietnam Media Habit Survey iv Appendix 4: Internet user profile Most of internet users are young, well educated and has high income which means trendy, modern and of high living standard Internet users profile by gender and age group Chart 5: Internet surfer profile by Gender and Age group Source: TNS Media Vietnam - Media Habit Survey Internet user profile by education and income Chart 6: Internet surfer profile by Education and Income Source: Self-conducted survey v Appendix 5: Advertising impact Internet advertising impact (among internet users) Chart 7: Internet advertising impact Source: Self-conducted survey Print advertising impact (among print readers) Chart 8: Print advertising impact Source: Media Habit Survey – TNS Media Vietnam vi TV advertising impact (among viewer readers) Chart 9: TV advertising impact Source: Media Habit Survey – TNS Media Vietnam Appendix 6: Unilever’s campaign Websites of the company Brand Website Concept OMO www.omotet.com Promotion on Tet COMFORT www.thegioivai.com DOVE www.dovevietnam.com Promote the concept “The Fabric World” Promote new products DOVE www.vedepthucsu.com SUNSILK CLEAR, LIPTON, CLOSEUP KNORR Promote the concept “The Real Beauty” www.phunutheky21.com Promote the contest “Women Century 21” Promote the contest “Vietnam www.vietnamidol.com.vn Idol” Main sponsor: CLEAR,LIPTON, CLOSEUP www.chuctet.com.vn Promotion on Tet vii Omo Tet campaign Omo advertising on internet: banners ad on yahoo messenger, yahoo mail and website developing which offers free SMS, e card, game and news The online campaign has the same concept with TV, print: “Good deed new year, luck all year round” and promotion: win millions of golden heart in Omo packages Appendix 7:English Questionnaire Iam currently conducting a survey on internet using habits The survey' s purpose is to collect information for final proj ect, not for sales Iassure that all ofyour personal information will be kept in confidential and used for this survey only, not for any other purposes This questionnaire will take 15 minutes, it could be only useful ifmy whole questions are completely answered (no exception) Thanks for your time S1 Do you or anym em ber in your fam il yor your friends work in the fol l owing fiel ds Marketing research com panies Term inate Advertising agencies Term inate Media (Newspaper/Magazine, Radio/TV stations or distributors…) None ofabove S2 Term inate Continue Have you gained access to internet within l ast days? This coul d be either for personalor professionalreasons, at work or at hom e, browing the web or sending and receiving em ail , chat or using internet phone? SA Yes Continue No Term inate Note There are types ofquestion in this questionnare SA (single answer):choose one answer onl y MA (multiple answer):m anyanswers possibl e Section 1:PERSONAL INFORMATION Nam e Address Age group 15 to 24 Gender From 25 to 34 Mal e From 35 to 44 45 and over Fem al e W hat is your current j ob? SA Office staff Housewife Executive l evel Looking for a j ob Business m en Never work / no intention to work Shop owners Retired Student Others Pl s specify W hat is highest l evelofeducation you com pl eted? SA Post university Grade 10 -12 University Grade -9 Studying / Ungraduated university Grade -5 Graduated col l ege Sel feducation W hat is your approxim ate personalm onthl yincom e? This shoul d incl ude al lincom e be it pocket m oney/ gift / bonus / al l owances SA Under 200$ From 600$ to 1,000$ From 200$ to 400$ From 1,000$ to 2,000$ From 400$ to 600$ Over 2,000$ Are you the person who decides what shoul d be bought for the househol d for the products such as toil et soap, toothpaste packaged food, etc SA Yes No Section 2:INTERNET ACCESS How often you surfthe internet? SA Everday Once every2 weeks -6 days a week Once a m onth 3-4 days a week Less often -2 days a week Do you use internet to? MA Em ail Make internet phone cal l Chat Discuss in forum Pl aygam e onl ine Read news Listen to m usic Search inform ation W atch TV onl ine Others Pl s specify Listen to radio onl ine Have you ever seen advertisem ents in websites which you often access? SA Yes No Continue Go to 11 W hich kinds ofinternet advertisem ent you often see? MA Quiet banner Pop up Fl ash banner Pop up l ogo Sl ide banner Others Pl s specify Logo W hich ofthe fol l owings best describes your reaction when you see and advertisem ent on internet? SA W atch with interest and cl ick to the ad Look at the pictures but not read tex Onl ywatch and cl ick to the interesting ads Do not payattention W atch as usual Others Pl s specify Gl ance at the ads briefl yand m ove on 10 According to you, which are the m ost im portant criteria for an internet ads? (W hich one can attract your attention) SA Pictures Position ofad Col or Content ofad Sound Others Pl s specify Anim ation 11 Have you ever receive anyadvertising em ailin Vietnam ese? SA Yes No 12 Continue Go to 13 W hich one offol l owings best describes your actions when you receive ad em ailin Vietnam ese? SA Read with interest Read as usual Gl ance at the content and save it for l ater reading Gl ance at the content and del ete it Del ete it right away Others Pl s specify Section 3:ADVERTISING ACTIVITIES 13 Have you ever seen the ad "Good deeds new year, l uck al lyear round"ofOMO? SA Yes No 14 Continue Go to 16 W here did you see the OMO ad? MA TV On websites Newspaper and Magazine On Yahoo m essenger Outdoor 15 Others Pl s specify Have you ever accessed to OMO' s website (www.omotet.com)? SA Yes No 16 Have you ever seen the ad "The fabric worl d"ofCOMFORT? SA Yes No 17 Continue Go to 19 W here did you see the COMFORT ad? MA TV On websites Newspaper and Magazine On Yahoo m essenger Outdoor 18 Others Pl s specify Have you ever get access to COMFORT' s website (www.thegioivai.com)? SA Yes No 19 Have you ever heard about Vietnam Idol ? SA 20 Yes Continue No Terminate How you know about Vietnam Idol ? MA TV Newspaper and Magazine Friends 21 Have you ever get access to Vietnam Idol 's website (www.vietnamidol.com.vn)? SA Yes No Our interview ends here Thanks for your time Internet Em ail Others Pl s specify Appendix 8:Vietnamese Questionnaire Ch̀o b n, ch́ng hi n th c hi n m t cu c kh o śt v nh ng th́i quen c a ng Cu c kh o śt ǹy ch nh m thu th p thông tin, không mang t́nh ch t th s đ i dân vi c s d ng internet ng m i.Nh ng thông tin ćc b n cung c p c gi b́ m t v̀ ch ph c v cho cu c nghiên c u ǹy, ngòi không d̀ng cho m c đ́ch ǹo kh́c B n câu h i s ḱo d̀i 15 ph́t B n câu h i ǹy s ch ć ́ ngh a tòn b nh ng câu h i đ u đ c b n tr l i đ y đ (không ć ngo i l ) Xin c m n b n đ̃ d̀nh th i gian đ tham gia cu c kh o śt ǹy n thân b n hayng S1 it n gia nh Công tynghiên c u t Truy n t ng i ng (b o S2 Trong ng ua b n n k ng ng? ng K tt c PV o K tt c PV K tt c PV t thanh) Ti p t c c nh v c c, u n sau tr s d ng internet không? Bao g m uan o c tr , c nh v u ng nh, p , truy n Không thu c m vi c vi c s d ng cho ch phê, t m ki m thông tin internet ho nhân haycho công vi c, trao it t (em ail ), t n g u (chat), g i i n t o i qua internet,… Ti p t c SA K tt Không c PV L uý B n câu h i g m lo i câu h i nm t SA (single answer): p n n nhi u t MA (multiple answer): p n Ph n 1:THÔNG TIN Ć NHÂN Tên a TuT i n T Gi i t nh n n nm t Tr n tu i N ng cho bi t ngh nghi p hi n t i Xin vui SA - T Nam ab n p n N n i n np ng Sinh viên Nhân viên u n T ang t ng gia, doan n c a n T Ng ng, c a hi u N i tr M c c v n cao nh t SA - nm t ang b n Xin vui g? c c/ i c L p 10 -12 i c L p -9 a t t nghi p i c L p -5 ng i ng / trung c p ng t ng ng, k ab n ti n th n p i ng c o ng bao nhiêu? ng, u th ng, ti n a gia nh p n i Xin ghi r Tr n s ti n t nm t SA - u ng i p T t nghi p ng cho bi t thu nh p Bao g m t t Ng p n T t nghi p ao t i t ng i p T n T n i quy t đ nh vi c mua s m e n r ng, th c ph m ,… SA nm t p n Không T T n , , n , Trên 2,000$ c s n ph m tiêu d ng gia nh, ch ng nn b t gi t, Ph n 2:TRUY C P INTERNET M c đ th ng xuyên b n tru nm t SA - p n o internet t n o? p n ng ng y Hai tu n m t ln -6 ng ytrong m t tu n M tt -4 ng ytrong m t tu n t th ng m t ln ng u n n -2 ng ytrong m t tu n n th MA - …… ng truyc p internet n nhi u t p n i i n t o i internet Em ail Trao Chat i di n n, forum i ga es on ine Nhe n c tin t c c T m ki m thông tin Xem TV c Xin ghi r Nghe radio bao gi n n th ynh ng u ng n nm t SA - o b n th c trang web ng truyc p không? p n Ti p t Không o i u ng MA - on o b n th n nhi u t Sang câu 11 ng th ytrên internet p n anner anner t n Pop up ng / as Pop up l ogo anner tr t o i Xin ghi r Logo Banner l̀ b ng rôn qu ng ćo đ t web, ć d ng t nh ho c đ ng, liên k t đ n m t trang web qu ng ćo kh́c Banner tr t l̀ d ng banner n m hai bên trang web, tr Logo l̀ hình nh nh ć t́nh bi u t t theo b n di chuy n lên xu ng ng, đ i di n cho m t công ty hay m t s n ph m Pop up l̀ d ng qu ng ćo đ c th hi n d s ǹy không gi ng m t trang web thông th i d ng m t c a s m i ng i s d ng m m t trang web ǹo đ́ C a ng m̀ ch ch a nh t n i dung qu ng ćo Pop up logo l̀ d ng qu ng ćo m̀ logo ch y ngang m̀n hình, ho c ch y lên xu ng u n o sau di n t nm t SA - Xem v i s t ch t xem ng n cl ick SA - n o ng o m u u ng t t u nm t ab n i i u u ng o tr n internet n n o ng c m u u ng o i n i t u u ng t ng n n nm t u ng o Xin ghi r o tr n internet n V tr N i dung Âm u n c p n n SA - ng a b n) M us 11 c ch Không quan tâm Xem b nh th ts ng nh nh ch ot n o quan tr ng nh t T eo b n, ti u (Ti u n o nh ng u ng cl ick Xem l t qua 10 t p n n Xin ghi r Tiêu chíkhác ng (ani ation) e i n i dung u ng o/ ung pt ng tin u i b ng ti ng Vi t n a p n Ti p t Không 12 u n o sau di n t ng n t n ng Sang câu ab n in n 13 e u ng o/ ung pt ng tin u n i b ng ti ng Vi t? SA - nm t e p n t ua u is t t bn t ng i sau e t ua a i Không quan tâm xóa n ng c Xin ghi r Ph n 3:HO T 13 n t ng t u u ng nm t SA - NG QU NG ĆO o "T t làm u hay, v n may nhân kh p" a M a p n Ti p t Không 14 n u qu ng cáo T t t n nhi u t MA - a Sang câu 16 M u p n TV o ng u ng 15 n t ng truy c p nm t SA - Trên website t p Trên Yahoo m essenger o ngo i tr i o trang web a N i M Xin ghi r a (www.omotet.com) p n Không 16 n qu ng cáo "Th gi i v i" t ng t nm t SA - a o ort a p n Ti p t Không 17 n t t MA - u u ng o "Th gi i v i n nhi u p n Sang câu 19 a o ort u TV o ng u ng 18 n t ng truy c p nm t SA - Trên website t p Trên Yahoo m essenger o ngo i tr i o trang web a M N i Xin ghi r RT (www.thegioivai.com) ch a? p n Không 19 n t ng ng e ng tr n Vietnam Idol nm t SA - a p n Ti p t Không 20 n bi t MA - ng tr n Vietnam Idol t n nhi u t tt V u p n TV o nb 21 n SA - t ng tru nm t p ng o trang web Trên internet t p it Em ail n a Vietnam Idol (www.vietnamidol.com.vn) Ngu n a p n Không Cu c ph ng v n c a k t thúc t i C m n s h p tác c a b n Xin ghi r