(Tiểu luận) principles of marketing communication innovation plan mien dong pharma j

NATIONAL ECONOMICS UNIVERSITY SCHOOL OF ADVANCED EDUCATION PROGRAMS *** PRINCIPLES OF MARKETING COMMUNICATION INNOVATION PLAN MIEN DONG PHARMA Class: …… Lecturer: Assoc Prof Dr Le Thi My Linh Group 3: Phan … Word count: 5207 HANOI 2021 TABLE OF CONTENTS EXECUTIVE SUMMARY PART 1: CURRENT MARKETING SITUATION ANALYSIS I MARKETING AUDIT External Environment Internal Environment II CURRENT MARKETING PERFORMANCE 2 Product Pricing Place Promotion III SWOT MODEL ANALYSIS 10 Strengths 10 Weaknesses 11 Opportunities 12 Threats IV ANALYSIS OF ORGANIZATION COMPETITIVE EDGES PART 2: MARKETING INNOVATION PLAN 12 13 14 I RATIONALE 14 II MESSAGE 14 III SEGMENTING, TARGETING & POSITIONING 14 IV MARKETING OBJECTIVES 16 V COMMUNICATION OBJECTIVES 17 VI MARKETING INNOVATION (KOLs) 17 CONCLUSION 21 TRANSCRIPT 22 REFERENCE 27 EXECUTIVE SUMMARY Mien Dong Pharma is a pharmaceutical company specialized in dietary supplements and various medical products, ranging from bone strengthening to cough syrup Founded by Nguyen Van Danh on May 29th 2017 in Binh Duong province, the company officially went into operation as a corporate organization after two months Mien Dong Pharma consists of four departments, with the headquarter situated in Binh Duong, while the other three branches are set up in different domains along Vietnam: Sai Gon Branch in Go Vap, Northern Branch in Ha Noi and Central Branch in Nghe An Mien Dong Pharma’s principal activity is distributing medicine and dietary supplements to drug stores nationwide Its product line supplies more than 30 units, which are totally manufactured and stocked domestically Some of remarkable and bestselling products are dietary supplements called Curcuma caesia, Ginseng energy capsules and cough lozenges Regarding target audience, the company aims at middle-income customers of all ages and conditions, since it provides a wide range of products from supplement for the elders to nasal spray for children It is addressed as affordable and easily-approached As a young corporation with only years of operation, relying mostly on traditional marketing, namely through pharmaceutical representatives, accompanied by the competitiveness and volatility of the market, marketing innovation is vital to the success of Mien Dong Pharma The marketing innovation aims at the aspect of communication, namely the use of Key Opinion Leaders This method is adopted with a view to building profitable relationships with young parents who have babies or toddlers PART 1: CURRENT MARKETING SITUATION ANALYSIS I MARKETING AUDIT External Environment 1.1 Economic factor Vietnam's GDP grew by 4.48 percent in the first quarter of 2021, 3.68 percent higher than that in the same period last year, despite a new Covid-19 outbreak linked to new strains This time, after customer experience of the last Covid 19, their awareness of healthcare has been fostered, which increases the demand for healthcare products Since 2019, the pharmaceutical industry has reached the growth rate of 11% In 2020, according to Nieslen, however, the demand for healthcare products decreased by 3% 1.2 Social and cultural factor W&S Vietnam Market Research has shown that 50.2% Vietnamese people will buy drugs for themselves when they face health problems Additionally, from 2013, 82.9% people surveyed paid great attention to healthcare and 79.1% expressed the opinion that those healthy are ones with high resistance As a result, people are buying more healthcare products to prevent diseases other than curing them 1.3 Technological factor Social media dominates every aspect of life It is not simply effective but virtually a must-have means to promote the product Platforms such as websites, Facebook, Instagram, Youtube have become a potential land to increase the brand awareness of the products and build profitable relationships with customers 1.4 Political environment Legislation determines a huge number of marketing decisions such as labeling, designing, distribution, packaging, advertising, promotion of goods and services However in the pharmaceutical market, the impact of legislation can also extend to obtaining sale licenses A level of regulation of the prices of pharmaceutical products is also commonly found Commented [LML1]: Cần có nguồn trích dẫn Các phần phân tích external environment thiếu nhiều trích dẫn Nên xếp thứ tự nhân tố theo lý thuyết In Vietnam, pharmaceutical companies can freely set their own prices for their products as long as they are reasonable Regulation arises to ensure that firms take charge of the social costs When these drugs are crucial to a human’s lives, it is unethical to price them so highly As such, the government has taken an interest in limiting the medical prices Eventually, pharmaceutical companies are left with less profit 1.5 Demographic environment First, elderly people show great interest in health products and medicines due to the health conditions of aging In Vietnam, the number of people above 65 accounts for 10.9% of the country’s population In 2050, this rate is forecasted to continue rising and reach 20.4% Vietnam's population is aging, while the number of adults, or children of the elderly is increasing This can significantly affect the marketing strategy since the way to approach this target group is different from the youngsters Besides, research shows that about 25% of Vietnamese people have a tendency to prescribe themselves medication, instead of getting prescription medicines from doctors or pharmacies Accordingly, that is a challenge for the pharmacy firms, in order to have customers choose their brand, they have to build customer trust in their products, based on online commercials, word-of-mouth marketing and so on Additionally, Vietnamese household size tends to shrink in current periods, people’s demand about the number of children has changed, parents tend to have fewer children but better nurturing and caring Therefore, pediatric patients might be a large target customer for the pharmacy firm nowadays Internal Environment 2.1 The Company With the slogan “Health for Globe”, Mien Dong Pharma’s vision is improving quality, investing in research and development, building production lines according to the highest standards of the world’s pharmaceutical industry, bringing Mien Dong Pharma become a leading enterprise in the pharmaceutical industry in Vietnam, serving public health towards a more sustainable future and the development of the country Mien Dong Pharma’s core values: - Quality: maximally affirms quality, for the benefit of consumers, for the benefit of the community and society - Respect: respect colleagues, respect partners, respect customers - Ethic: Respect ethical standards, promote health and safety - Future: towards a sustainable development with a new health foundation with a foundation for the future Mien Dong Pharma’s missions: Committed to bringing the community safety, highly effective health care products and products with their own dedication and appreciation of their love and responsibility for human life and society Always aim at customer satisfaction with enthusiasm and high responsibility for the job, creating jobs that ensure income and promotion opportunities for employees Provide Eastern Pharmaceutical branded products with international quality and reasonable and diversified prices to satisfy the needs of consumers towards the development of the community 2.2 Customers market 2.2.1 Indirect customers Indirect customers are people who buy medicines from hospitals, treatment facilities or pharmacy stores, etc Characteristics of the group of domestic indirect customers: - Many Vietnamese people have not trusted much in domestic medicine They - High demand for low costs - Habit of often buying drugs by themselves according to personal experience or have a preference for foreign and expensive medical products on the advice of relatives and pharmacists Document continues below Discover more from: Principles of Marketing Đại học Kinh tế… 279 documents Go to course Trắc nghiệm 48 Marketing Principles of… 100% (5) Report MKT group - This is our… Principles of… 89% (19) De cuong Marketing 12 can ban Principles of… 100% (3) 10210769 MPP A2 34 64 Assignment MPP … Principles of… 100% (3) BÁO-CÁO-KINHDoanh-QT-… Principles of… 88% (8) Chapter Promotion - Living standards are increasingly improved, health issues are paid attention more carefully 2.2.2 Direct customers This is the target group of customers of the company The buying quantity is in accordance with the amount purchased by indirect customers The direct customer group is divided into two subgroups: Group 1: hospitals and treatment facilities at all levels Group 2: branches, agents, distributors, pharmacies (pharmaceutical import export companies, trading companies, retail outlets, etc.) Characteristics of direct customer groups: - Requirement for products with quality and prestige - Priority of profitability - Requirement for conformity to signed contracts - Puts high pressure on Mien Dong Pharma because: + They purchase a large number of products, accounting for high sales in the total sales of the pharmaceutical industry + Distribution function + They have a wide choice of sellers 2.3 Suppliers Local pharmaceutical production accounts for nearly half of Vietnam’s drug needs Most of the local products are low-cost generics produced by about 170 pharmaceutical companies in Vietnam Almost 10% of them are foreign investors, with another 4% operating under joint venture agreements To boost domestic production of higher-quality drugs, Vietnam has recently encouraged manufacturers to obtain Good Manufacturing Practice (GMP) certification However, so far only about one-third of Vietnamese pharmaceutical companies accomplished this Principles of… 100% (2) Hai Duong Pharmaceutical Medical Materials JSC, Santex Pharmaceutical JSC are among Vietnam’s leading manufacturing and processing cooperations for pharmaceutical and health food products After nearly 60 years of striving for public health, these suppliers have been customer-focused businesses, with high-sophisticated technology and facilities and always consider quality as the critical goal 2.4 Competitors The competitive level in the pharmaceutical industry is relatively high There are about 178 drug manufacturers nationwide, of which 98 manufacture modern medicines, accounting for 55.1% and 80 companies produce drugs from herbs Currently, Vietnamese pharmaceutical companies mainly serve the domestic market, so the determination of competitors will be based on the market share of companies in the Vietnamese pharmaceutical industry such as: Domesco, Imexpharm, Traphaco, Vien Dong and OPC Traphaco Pharma is the pioneer in the pharmaceutical industry cultivating and collecting natural herbs from GACP-WHO-standardized material areas, namely Sapa and Bac Ha (Lao Cai) with artichoke and panax pseudoginseng, ligusticum wallichii; Nam Dinh with polyscias fruticosa Traphaco’s long time of development and reputation also serve as the competitive edge to other counterparts in the medical market Danapha pharma has successfully used modern Western pharmaceutical factories for the manufacturing processes With the advance of technology, Danapha is believed to provide quality and various kinds of products to a huge range of customers II CURRENT MARKETING PERFORMANCE Product The firm mostly concentrates on distributing functional foods and medical supplements that are produced by well-known pharmaceutical companies in Vietnam like Hai Duong Pharmaceutical Medical Materials JSC, Santex Pharmaceutical JSC, Currently, the company has nearly 30 products Signature products: Siro Chanh Dao Mat Ong, Cumin Nghe Den, Vien Sam The Lion, etc The “Chanh Dao” product has been a best-seller for years since the company was established It contributes significantly to the company's sales revenue Core benefit: improve and maintain people’s health Turnover: In terms of business’ sales stream, annual revenue fluctuates between 20 to 30 billions VND Indicated in the interview, the income of the company in the beginning of the year is lower than year-end income because the manufacturing depends on the climate, weather and customers’ demand From 2017 to 2019, the net profit accelerated as a result of solid performance The last months of 2017, when the company first started up, the sales were quite low, about 13 billion VND In contrast, in 2019, the sales reached 27 billion VND as a result of the positive growth rate However, in 2020, due to the pandemic crisis, a 30% - 40% plunge in quantity was witnessed compared to that in the previous year Consequently, the total sales of 2020 slightly decreased Customer service: - They provide walk-in customers, who use hot-line, with effective and timely solutions to any issue related to product’s use IV ANALYSIS OF ORGANIZATION COMPETITIVE EDGES USP of Mien Dong Pharma Mien Dong Pharma has provided a quality management system The company always ensures the quality and safety in every product, based on an in-depth understanding, the supporting manufacturing process and most importantly, the using of 100% natural ingredients that can be found in traditional remedies of Vietnamese people, such as honey, lemon, etc These strike an impression of familiarity and trust to customers Manufacturing practices of Herbal Medicines include a variety of natural herb ingredients at an affordable and competitive price compared to other products with similar properties Mien Dong Pharma persists in the goals of sustainable fitness for a healthy life on the base of green supply chain, from qualified materials to utilising technology with an environmental friendly distribution systems and services Competitive advantages of Mien Dong Pharma Herb ingredients like Chanh dao are familiar to Vietnamese residents The use of ingredients is popular in folk remedies and traditional medicine by forefathers and old generations This practice of Mien Dong Pharma strikes an impression of familiarity and trust on those of middle-age and above, who are also the primary influential buyers to the company As a result, when the connection is made, the products of Mien Dong Pharma are likely to be welcomed Well trained and enthusiastic pharmaceutical representatives According to the interview, the company spends much time and effort on training their representatives Since the pharmaceutical representatives bridge the gap between the company and buyers, it helps the company to build more sustainable relationships with their customers Also, as this is the direct marketing method, the chances of making contact with pharmacies are higher than those online 13 PART 2: MARKETING INNOVATION PLAN I RATIONALE Overall, the objective of this innovation plan was to facilitate the marketing performance and related activities of Mien Dong Pharma, especially for the key product - Chanh Dao Syrup This plan aims at taking advantage of the lucrative land that the company has yet to exploit, namely the online platform for marketing It was implemented with a view to bringing the name of Mien Dong Pharma, together with the leading product of Chanh Dao syrup, closer and more approachable to not only its primary customers, pharmacies, but also common buyers With the captured attention through Key Opinion Leaders, the company would stand a better chance of competing in the market and grow more steadily thanks to improved brand awareness and potential profitable relationships with customers II MESSAGE Message: “Chanh dao – Đau họng khơng cịn nỗi lo gia đình” The message aims at the property to ameliorate the overall wellness of the throat and shield people off further sore throat and the like Also, it focuses on the “worry of the family”, which means the product solves the problem for not only adults, parents but also small children III SEGMENTING, TARGETING & POSITIONING Segmenting 1.1 Geographic segmentation The segmentation can be divided on the ground of climate characteristics The Northern weather wildly fluctuates between hot and cold states and especially humid Thus, people living here are much more susceptible to respiratory diseases compared to those in the South with hot and dry weather 14 As a result, the North of Vietnam which could have a huge demand for cough medicine and many other treatments for respiratory illnesses will be the target marketplace for the “Chanh dao” product 1.2 Demographic segmentation About ¾ people in Vietnam have a middle to low income level, about million VND on average, so when it comes to making buying decisions, they are more likely to choose products at a reasonable price In order to gain a greater number of customers, it would be illogical to offer high price products 1.3 Behavioral segmentation People working as teachers, MCs, actors or presenters are those who use their vocal cord at a high frequency This, eventually, can exert adverse impacts on their throat Therefore, they are the group of customers who are always looking for highquality cough medicine or supplements in order to keep their voice in the best state to perform their work properly and efficiently Targeting This communication innovation is to build profitable relationships with young parents (25-45 years old) who have small children (aged 2-15 years old) living in the north of Vietnam - Target market characteristics: + Married and got children + Living in either nuclear families or extended ones + Highly active on social networks - where they can connect with friends, post about their daily lives and update news from all around the world + Searching information about products on the Internet when making buying decisions While other competitors often choose the images of teachers or actors to promote cough medicine, Mien Dong Pharma’s marketing innovation will focus on 15 communicating the “chanh dao” product through the image of young and energetic Vietnamese families Since this product can be used by people of almost all age groups, families with more than one generation would be the perfect representatives to send the message that “Chanh dao” syrup from 100% natural ingredients is suitable for all family members Positioning Mien Dong Pharma positions its “Chanh Dao” in the market as the top-of-therange quality product with lowest cost Mien Dong Pharma positioning strategy is the quality base, namely it can effectively cure the typical disease of the Northern of Vietnam, sore throat, as well as deliver the most satisfying consumer experience while customers could pay the reasonable price Mien Dong Pharma made great efforts to establish its image with the best quality by giving customers the best result and using the safest ingredients Mien Dong Pharma pays a great amount of attention and money to continuously improve the quality in terms of not only the engineering of the products but also a quick testing laboratory In addition, Mien Dong takes advantage of the diversity of Vietnamese herbs Its usage of 100% herb to produce the product makes a difference in the market It not only provides customers with safe and natural ingredients which increases the trust of customers but also prevents the side effects of drugs At the same time, the company lowers the standard cost to economically appropriate so that it could reach a large number of customers and gain a significant share of its markets IV MARKETING OBJECTIVES - Current marketing result: Commented [LML3]: Mục tiêu cần SMART + Monthly, about 200 people access the Mien Dong Pharma website to seek information about products + The highest reach of a Facebook’s post being advertised is approximately 20,000 people + Monthly, the company sells about 500 “Chanh Dao” products 16 - Raising brand awareness: + 285,000 people know about the “Chanh Dao” product + 10,000 people access the Mien Dong Pharma website, specifically “Chanh Dao” product website link during the campaign + 1,000 people dial the hotline to seek more information about the product - Raising revenue: + Increase product revenue by 20% after the campaign + Gain bigger market share of cough medicine, from 40-60% after the campaign V COMMUNICATION OBJECTIVES - Awareness building: Increased 200,000 people know about Mien Dong Pharma - Change perception: When customers think about any kind of cough medicine, the first product that comes to their mind is the “Chanh Dao” of Mien Dong Pharma - Persuasive: Stimulating buying demand of customers by social media’s posts of KOLs and especially through a short video of product’s promotion with thoughtful messages and viral tagline - Product selling: The company was able to sell 2000 “Chanh Dao” products in - Comparing competition: This innovation plan will make Mien Dong Pharma the first month since the first post of KOLs was uploaded on social media stand out from their competitors in regards to the cough medicine products Therefore, it can help to expand the business size VI MARKETING INNOVATION (KOLs) Based on the analysis of Mien Dong Pharma’s current business situation, it can be deduced that the corporation has been performing quite stably and promisingly despite the small scale compared to other leading pharmaceutical companies The products of Mien Dong Pharma prove to have some distinctiveness but are yet to approach a large number of consumers and pharmacies In fact, most of the existing marketing activities of the company are push marketing and on a small scale Specifically, the distribution of products are supported 17