Company introduction
Introduction
SUNHOUSE group Jsc, formerly known as Phu Thang Co., Ltd, was established on 22/5/2000 In 2004, SUNHOUSE took joint venture with SUNHOUSE Co., Ltd, Korea, established SUNHOUSE Vietnam Co., Ltd.
History of Formatic & Development
With 18 years of establishment and development, Sunhouse is proud to be the leading bird of the Vietnamese household industry
- In 2000: Sunhouse group, formerly known as Phu Thang Co.,Ltd, was established on
- In 2004: Sunhouse took joint venture with Sunhouse Korea Co., Ltd, established SUNHOUSE Vietnam Co., Ltd
- In 2010: Sunhouse is officially named Sunhouse Group Joint Stock Company, investing in many diverse fields ( Household goods, home appliances, kitchen equipment, industrial electrical appliances
- In 2014: Expand the business area of civil electricity
- In 2018: Raise the vision New face Next step to success
Vision
Being the leading brand in South East Asia in the home appliances field, Sunhouse always strives to provide safety health to consumers and to meet the needs of the majority of consumers in the region Moving forward is a global brand
Mission
Continuously research and apply advanced technology to help the majority of consumers have the opportunity to use high-end products with reasonable prices.
Core values
- Creative: Sunhouse is constantly pursuing new ideas and challenging ourselves to create new opportunities
- Understanding: Always listening and caring for the needs and expectations of colleagues, customers, agent and shareholders
- Standard: Give the trust to the people with genuine words, express the words that go with the action and take responsibility for what you do.
Executive Summary
- Constantly researching and applying modern science and technology to improve quality; bringing to the market products with eye-catching aesthetics
- excellent quality and absolute safety for consumers' health
- Building an ecosystem of "Vietnamese happy kitchen", creating a value chain to complete a modern kitchen Meeting all the needs of customers from home appliances, kitchen equipment to clean ingredients, delicious cooking spices
- Meets drinking water standards directly according to QCVN06 -1:2020/BYT,3 convenient water modes: Hot - Cold RO, 360-degree block – cooling technology - for cold water up to 6 degrees deep & for longer machine life than conventional chip technology water purifiers
Situation Analysis
Market Analysis
The report "Vietnam water purifier market by technology, sales, forecast and competitive opportunities 2011 - 2021" of TechSci Research From 2016 to 2021 also gives a positive forecast of the growth rate of up to 12.4%
Obviously, in less than a decade, the water purifier market in Vietnam has witnessed a lot of changes, with the transformation of the old and the entry of new people It can be said that this market has never been as quiet as it seems
The demand for clean water and the trend of equipping water purifiers with full hot and cold functions have also developed in recent years, helping to save time, be more convenient and safer for users Besides, in the past time, the Covid 19 epidemic broke out, people improved their health protection, so water purifier products are also a top choice
Currently, the market has more than 400 different brands of water purifiers, the brands are mainly from the US, Japan, Korea, Taiwan, Thailand, Malaysia, Vietnam or joint venture with Vietnam
Targeting the vibrant market in Vietnam Not only diverse in models, types, origins, water purifier products on the market today have a large price difference from a few million to tens of millions of dong/product
Kitchen infrared Air purifier Double infrared cooker
Air cooler - Air conditioner fan
Oven Freezer Negative gas stove
PESTEL Analysis
Vietnam is a socialist nation with a stable and interactive political climate and a growing legal framework that provides possibilities and circumstances for enterprises to plan production and operations With a generally stable political climate, the legal system has strengthened, providing possibilities and circumstances for businesses to organize their production and operations To protect the interests of consumers and the country of genuine manufacturing enterprises, the government has made provisions of the law on standards, technical regulations, the law on industrial property copyright, and regulations on packaging and labels for electronic and electrical household products
This is the basic as well as shaping for Sunhouse in building the image and brand of the product SLIMBIO RO WATER PILTER products ensure technical standards as prescribed by law
Since 1986, Vietnam has consistently innovated, adopted economic and political strategies, and evolved into a low-middle-income nation that is no longer backward, rather than a poor country complaining In recent years, there have been complex worldwide variations Vietnam, on the other hand, has maintained a positive growth rate over the years, with a projected growth rate of 1.82 percent in 2020 (due to the negative impact from the COVID-19 epidemic) However, in comparison to other nations in the area, Vietnam's economy has been highly praised and steady in recent years, owing to its strong growth rate
Various nations have implemented social isolation measures, limited many activities, and forced many industrial companies to temporarily close as a result of the Covid-19 epidemic, all of which have had a significant impact on consumption a significant reduction However, by implementing excellent illness preventive and response measures in response to Covid-19, Vietnam has been able to stave off a severe economic downturn Vietnam's economy was severely impacted by the COVID-19 epidemic as a result of its deep economic integration, but it also demonstrated remarkable resilience.If Vietnam successfully stops the spread of the virus, the economy is expected to increase by 5.64 percent in 2021 At the same time, export-oriented manufacturing industries fared well, and domestic demand recovered quickly
During the pandemic, consumers began to be more-strict with consumables, careful selection, sure for a good product as well as a reasonable price, can achieve
10 satisfaction SLIMBIO RO WATER PILTER products are not only an opportunity to prove to consumers about product quality and reasonable prices, but also a challenge to products during this time
The population of Viet Nam is around 98 million people, with an average age of 32.9 years and 37.34 percent of the population residing in urban areas, according to UN figures As a result, Vietnam has a sizable share of the working-age population The country's predominant religion is Buddhism, and its primary language is Vietnamese Men have a 93-year life expectancy, while women have an 81-year life expectancy The country's middle and upper classes are fast expanding, and their members have a tendency to travel more than in earlier decades
This is a great opportunity for SLIMBIO RO WATER PILTER products to get closer to customers
The world is using RO water purification technology, also known as reverse osmosis membrane (Reverse osmosis membrane) water purification technology, is the most effective water purification method available today This technology uses an ultra- thin filter, with the openings being microscopic pores of 0.001 micrometer size (only one thousandth of a human hair) that we have to use a microscope to see this filter only allows molecules smaller than the filter pore size to pass through, so it can block 99.99% of pollutants in water such as heavy metals, bacteria viruses, pesticides, Only water molecules can pass through Dirt, bacteria, heavy metals that do not pass through are taken out through the wastewater, that's why people often mention RO water purifiers with wastewater RO technology gives you pure drinking water without having to reheat
RO creates a wave of innovation by applying scientific, technical, and mechanical advances to life and production, thereby helping to improve people's lives more and more
As a product of Sunhouse, using advanced RO filtration technology combined with healthy mineral supplements, SUNHOUSE RO water purifier is the perfect solution, providing a source of clean water, rich in minerals, safe, convenient, suitable for direct drinking and for daily cooking at home
Vietnam is a sovereign and autonomous country with 54 ethnic groups Despite their disparities in regional identity and culture, the brothers' most striking common ground remains patriotism, familial love, and national unity When customers' attitudes and worries about origin are another component that substantially contributes to the growth of Vietnamese consumers, this is also a factor impacting their purchasing behavior Domestic businesses prioritizing support for national products "made in Vietnam" have developed a significant resonance effect among the Vietnamese people, instilling national pride The reality is that environmental contamination is growing increasingly severe across the world, prompting consumers to become more conscious of their own purchasing habits in order to help safeguard the environment
Since 2009, the Ministry of Science and Technology in Vietnam has added 13 categories of household electrical and electronic equipment to the list of goods at risk of unsafety (group 2) that must be controlled according to laws QCVN 4:2009/BKHCN QCVN 4:2009/BKHCN QCVN 4:2009/BKHCN By 2012, the Ministry of Science and Technology will add 07 categories of electrical and electronic items to the list of Group
2 commodities that must be controlled for safety and electromagnetic compatibility, according to QCVN 9:2012/BKHCN
The standard for assessing safety for household electrical and electronic equipment is the IEC 60335 Household and similar electrical appliances Safety set of – standards
This set of standards has been uniformly applied worldwide, most countries have translated this set of standards into national standards Vietnam has translated the IEC
60335 series of standards into the Vietnamese standard TCVN 5699.
Five Forces Analysis
• Customers are individuals and households
• External factors, from friends, relatives, family, affect the decision of customers
• Customers' needs: Product size, luxurious and eye-catching design, full of utilities, saving and optimizing electricity
• Price comparison between different brands, same segment
• Big brands are available in the market such as Kangaroo, Aqua, etc
• Reasonable price, same segment, similar items
• Customers are loyal to other brands
• A large sum of money is required
• Brand building is very difficult, because in the market there are already famous brands in the field
• Small businesses find it difficult to attain economies of scale
• Customers are loyal to the big brands available in the market, the emergence of a new brand that creates interest is very difficult
• There are many domestic and international suppliers
• There is a wide selection and product variety with relatively low affinity so the suppliers are secondary in this market
• In addition, Sunhouse can produce quality components by itself, which makes products more quality, more economical, and convenient for businesses in better product inspection
• There are other alternatives, such as spring water, carbonated beverages, and so on
• Alternative goods, such as boiling pots, filter straws, and so on, can give the same convenience
• A few goods can improve customer convenience while also harming the environment
SWOT
• New upgraded child safety lock feature
• When the power is out, the machine cannot filter the water
• The size is quite large compared to other companies' products
• When health is the top concern of customers, the demand for clean water increases Water pollution is becoming more and more serious, the market is starting to expand
• User demand is also more ready for high-end modern water purifiers in the kitchen
• Domestic goods are prioritized by customers
• The water purifier market is growing rapidly
• Vietnam has joined the World Trade Organization (WTO)
• Sunhouse does not really have a strength in water purifiers in Vietnam
• Products in the same segment are produced by other company last year, with cheaper prise
• The pressure of water purifiers is very much in the market, domestic and imported
• Big companies have a massive share in the market
• The difference between Sunhouse's Slimbio water purifier and other products is very little
Competitive Framework
- Become a leading firm in the manufacturing and trade of water treatment equipment, air treatment equipment, and household appliances in Vietnam and the ASEAN region
- Kangaroo's aim is to build solutions that suit the needs of food hygiene, water source safety, air source safety, and time management and bask in the splendor of existence
- Kangaroo has the greatest rate of counterfeit products on the market today, leaving buyers perplexed while making purchasing decisions
- The cost of replacing the filter core is expensive
- Kangaroo starts with a video that was inspired by a commercial that went viral ten years ago
- Kangaroo applies the first three principles from two masters Al Ries and Jack Trout's book "22 Immutable
Laws of Marketing" once more
- Kangaroo's new TVC, like the commercial from ten years ago, concentrates on one topic without putting a lot of information into it
- The machine's simple design makes it more compact, and it may be used in a variety of settings, including business offices, schools, hospitals, and homes
- Use a RO membrane from the United States
- Kangaroo water purifier has a variety of hot, cold, and cold faucets to meet a variety of consumer needs
- Hydrogen Kangaroo water purification method utilizes a filtration mechanism to produce hydrogen in water
- Water leakage is considerably decreased in most Kangaroo water purifiers due to the use of extremely tight joints Because the pump is built to be extremely durable, the chances of it leaking water are greatly minimized
➢ Ensure that consumers can access refrigeration products, with a focus on RO water purifiers, by optimizing efficiency to satisfy the fundamental values that users require and removing superfluous features to have product pricing that are affordable to the vast majority
➢ Expanding the water purifier market
➢ The machine will not be able to filter the water if the power goes out
➢ RO membrane has a short life span and is easily clogged
➢ Introduce a new warranty policy for the R.O Sunhouse water purifier
➢ Sunhouse's strategy is to concentrate on meeting the demands of the target consumer group, owing to the advantages of having a big number of clients (in the kitchen appliances market), a vast distribution network, and an active research and development center
➢ Supported by a large and well-known worldwide brand Samsung and Panasonic Technology Sunhouse Korea
➢ Concentrate on product enhancement and innovation
➢ Bacteria are killed, and contaminants are removed
➢ A mineral compensation core is included to assist replenish the body's micronutrient requirements
➢ A nanofilter with excellent odor-removal capabilities
➢ The design is exquisite and gorgeous
Competition
Customers are households, people who focus on health, focus on product quality, average income - quite
Customers are households, people who focus on health, focus on quality and price of product, income average
Customers are households, people who focus on health, focus on quality and price of product, income average
No 35 Mac Thai To, Yen Hoa, Cau Giay,
At 1 Dao Duy Anh Street, Phuong Mai Ward, Dong Da District, Hanoi
7th floor, HUDLAND Tower, Lot A-CC7, Linh Dam Residential Area, Nguyen Huu Tho Street, Hoang Liet Ward, Hoang Mai District, Hanoi
Marketing Objective
Sunhouse’ goal for water purifier Slimbio R.O 19.500 units by 2023
Marketing Analysis
Target Segmentation
Main Dimension Segmentation Variables Typical Breakdowns
Newlywed families, long-term families, people who need to improve their health and life
Income Middle Income High income –
Density City and urban/rural
Main Dimension Segmentation Variables Typical Breakdowns
Innovators Many features Increase product durability Price goes hand in hand with quality
Touch control Easy to clean Elegant and luxurious design
Water quality certification, prestigious brand, specialized in water purification, warranty regime, modern technology, number of filter errors, water saving
Target customers Woman (mother) in the family
Income From medium to high From medium to high
Location Rural and urban Rural and urban
Search benefits Focus on family health, convenience, time saving, high quality
Focus on nutrition, focus on health.
Positioning
Currently in Vietnam, Sunhouse is gradually asserting product prices with good product quality
Product offering
Polluted water is the leading cause of serious health problems Sunhouse is proud to offer a solution of pure clean water, with the new generation of water purifier Slimbio R.O
• It is a new high quality water filter product
• With a minimalist, modern design Compact, save 15% area
• Suitable for any space, interior style in the house
• The glass cabinet cover overflows, easy to clean
• The faucet is designed with 304 stainless steel, safe, durable, good heat resistance, minimizing water leakage rate
The SUNHOUSE Positioning Among Rivals
High-end segment water purifier Equipped with 10 Imported Filters High safety feature
Modern touch control for water intake
AioTec smart technology connects wifi
High quality RO made in
RO 50 GPD made in Korea
• A single faucet with 3 modes, hot and cold, usually meets many needs of customers 360-degree block cooling technology - for cold water up to 6 degrees deep & for longer machine life than conventional chip technology water purifiers
• 10-core filter with 3 levels of coarse filtration ensures clean filtration and effective protection of the RO membrane
• Removes 99.99% of harmful agents thanks to RO membrane DOW Filmtec (USA)
• 6 mineral cores add minerals, sweeten the water
• Going through the coarse filter, essence filter and mineral edema, the machine will filter out contaminated domestic water, unpleasant odors, impurities, harmful viruses
• Automatically stops when inlet pressure is too low
• Automatically shuts off when the water tank is full.
Marketing Mix – 4Ps
- Slimbio product, which is a high-end product line of Sunhouse, with a modern and slim minimalist style, saves 15% of space compared to conventional machines, impressive with all areas, no time Tempered glass overflows edge, luxury and simple color, easy to clean
- Design 1 single faucet with 304 stainless steel structure, anti-rust, along with 3 rotary buttons of 3 modes, to meet the needs of each user
- Smart connector cut-out reduces installation time by 70%
- Combined with the monitor mechanism, making the water cooled and stable by 2.5% compared to conventional machines
- Warning when the water tank is empty
- Anti-shock ELCB system, ensuring for users
• Performance a Set of 3 upstream prefilters SUNHOUSE SHA-WF123 is composed of 3 coarse filters, made of transparent PP material, safe and easy to observe:
- Filter core 1: PP core 5 Micron: Remove impurities, dirt size > 5 micron; increase the life of successive cores.Activated carbon (granular) GAC filter cartridge:
- Filter core 2: Partially adsorbs organics, heavy metals, pesticides, odors, etc
- Filter core 3: Cation filter core: Treats water contaminated with limestone, softens water b The R.O DOW Filmtec filter (USA) and a quality pre-filter with 6 filter errors with different functions:
- Filter core 4: Imported from Korea, the RO reverse osmosis membrane removes all pollutants, heavy metal ions, bacteria, organic compounds, amoeba, arsenic, and other contaminants, leaving the water perfectly pure
- Filter core 5: Flavoring core, pH balancing, mineralization, and natural sweetness for water are the five cores of the filter
- Filter core 6: Mineral stone core, which provides the body with trace minerals such as iron, calcium, magnesium, and other minerals found in nature
- Filter core 7: Alkaline generator core, which raises the pH index, produces alkaline water, and neutralizes excess acid in the body
- Filter core 8: Polarizes water molecules, making it easier for the body to absorb water
- Filter core 9: Bactericidal core (nano silver) kills germs, deodorizes, balances pH, adds minerals, and gives water a natural taste c Provide beneficial minerals
- Filter Core 10: ORP core produces water with a high pH and low electrolytes, reduces oxidation, and provides clean, safe water
In the table is price of Slimbio at official store of Sunhouse
According to a Deloitte research on the Vietnam consumer survey 2020, the majority of customers choose to buy consumer electrical items via supermarket chains, shopping malls, and enterprise store systems,
- Accounting for around 80% of the total
- About 15% of purchases are made through traditional commercial channels
- The online commerce channel accounts for around 5% of total sales
Sunhouse creates and delivers multiple pricing methods based on the market by understanding and feeling the requirements and wishes of consumers To be able to get into the high-end market with the Slimbio water purifier product line Brands like Kangaroo and Karofi compete by offering items at reasonable pricing to consumers The value
- For partners (customers) who are electronics supermarkets such as Dien May Xanh, Cho Lon, and others, the value is quite high The price will be negotiated/
- For conventional electronic shop dealers (level 2 agents) Sunhouse will give discount to agents who sign a contract with them
- Sunhouse gives customers incentives and prizes in addition to prices for items purchased at Sunhouse's system stores
Plan 1: Showrooms for sunhouses -> customers
Sunhouse's website is https://sunhouse.com.vn/ customers may pick from a variety of options and purchase online to earn rewards
At the showroom: Sunhouse showrooms may be found in all provinces and towns around the country
Plan 2: Sunhouse — Customers interact with an electronic supermarket system
Customers choose supermarket chains, shopping malls, and a system of business outlets based on a full introduction, selected items, gift policies, promotions, and assistance Approximately 80% of the population takes this type
Plan 3: Sunhouse — Traditional store (level 2 agents)
Customers prefer brick-and-mortar establishments because they are simpler to barter with on price This type accounts for around 15% of all transactions
Slimbio water purifier products are available in all provinces, both conventional and online, and are easy to find, buy, and use
• Advertising objectives: Popular forms of advertising, easy to reach users, so that customers can add options, refer to Sunhouse's filtered water
• Messaging: To show that Slimbio is a family brand, we send out the same message to all of our customers: "choose purity - live comfortably”.
Purpose: + Use social ads to present new product features to customers and debut products to the market
+ Increase brand awareness (Brand Awareness)
Youtube: Advertising on channel SUNHOUSE GROUP, Dien May Xanh, etc Facebook: Carousel AD
With the Sunhouse Group channel, videos are advertised to reduce advertising costs
Use promotional videos on other youtube sites with a price of 50 VND/view
Use promotional on Facebook with a price of 500 VND/view
Sunhouse always promotes the content of television advertisements to suit each period and catch up with consumer trends The program will introduce slimbio R.O water purifier product
VTV3: 2021 - 2022: Sunhouse co-sponsor: program " Dau Truong Am Thuc"
VTV1: 2023: Sunhouse co-sponsor: program " Am Thuc Duong Pho"
Location: Board Door To Tan Son Nhat Airport, Ward 2, Tan Binh District, Ho Chi Minh City
Location: 325 Giai Phong, Dong Da, Hanoi
Location: Supermarket - Electronics supermarket in nationwide
Time: First 6 months of 2021 Total budget: 360.000.000 VND Purpose: Increase brand awareness (Brand Awareness)
Purepose: Conveying information, trust, and product quality with the brand representation of football player Tien Linh
- 750 million VND for 8 hours photo with Slimbio
- 1.800 million VND for using image on mass media during 6 months
- 750 million VND for billboard during 6 months
- 350 million VND for 7 posts on Fanpage TIEN LINH
• Evaluate:It important to evaluate our marketing approach to ensure that it is accurately reflects Sunhouse Slimbio RO's overall effectiveness Sunhouse must track essential aspects of their marketing plan, such as profitability, promotion efficacy, and consumer perceptions of the product The Sunhouse marketing team has access to research processes and measuring facilities to aid in the evaluation process.
Financial Summary
- In the above table, Slimbio RO water purifier is forecasted with revenue and sales volume from 2021-2023
Source Units Sales Units Sales Units Sales Units Sales
- The bar chart below depicts our sales prediction from 2021 to 2023 for SHA76213CK-S and SHA76214CK-S
SALES FORECAST SLIMBIO FROM 2021 TO 2023
Proportion of sale per year
The Slimbio RO water purifier was originally introduced in 2021 to coincide with the Lunar New Year celebrations with family The machine's sales increased by 34% as a result of this occurrence The demand for water is high, and according to the product's assertion, with the quality that Slimbio RO provides, the product will account for 38% of the previous year's sales in 2022 Sunhouse, on the other hand, may improve the product while decreasing its usage
- This table show our advertising campaigns for 3 years
Marketing expenses for the SHA76213CK-S and SHA76214CK-S account for around 5 % of overall income, according to Sunhouse Group's ,2 prediction
A d ve rt is in g C a m p a ig n s
Advertising On Dien May Xanh (Social network Ads) channel 150
Advertising On VTV3 – “ Dau Truong Am Thuc” 1.300 Advertising On VTV1 – “ Am Thuc Duong Pho” 700
Pano advertising in TAN SON NHAT AIRPORT 1.200 Pano advertising in 325 Giai Phong, Dong Da, Hanoi 1.505
Using image on mass media during 6 months 1.800
Posts on Fanpage TIEN LINH 350
Leaflet for first 6 months of 2021 360
- We decided to deduct 7,76% of total revenue for marketing budget, so it wil be 7,76%x 251.431= 19.526 million VND
- The following table shows the figures of our estimated marketing budget for SHA76213CK-S and SHA76214CK-S
- The following bar chart shows the total marketing budget for SHA76213CK-S and SHA76214CK-S
Most of our marketing budget use for first and second year, so we can get maxium volume units we want In 2023, we are going to reduce more than 50% compared to first year, in order to lauchned new product
Advertising (67%)Promotion (20%)Retailer discount (4%)Distribution channel (7%)Other (2%)
The marketing plan for the SLimbio RO water purifier in Vietnam is depicted in this paper Sunhouse will be able to brand affirmation at water purifier market in Viet nam and able to achieve sales goals, which will offset product development and advertising expenses, resulting in an overall profit for the company, based on the cost- benefit analysis and marketing analysis.