TRẦN KHÁNH HOÀNG STUDENT: NGUYỄN NGỌC PHƯỚC GRADUATION THESIS INDUSTRIAL MANAGEMENT Ho Chi Minh City, December 2021 SKL009173 PLANNING INTERGRATED MARKETING COMMUCATION ACTIVITIES FOR
Research problem
In an environment of fierce competition as today, especially when our country is in the process of economic integration in the world economy have changed dramatically complex, to be able to survive and develop in long-term, it cannot ignore a very important activity is integrated marketing communication activity This activity not only serves as a bridge to help maintain the relationship between enterprise and customers, but also creates opportunities to develop commercial relationships with customers in and abroad
To do so, in business world, particularly with fast changing habit of consumers, media advertising is an indispensable way of any business to survive and thrive The heart of your business success lies tremendously in its marketing communication and the way you deliver your products or services to the market, to your target audience through different mediums Hence, Media unquestionably plays a vital role in this process of every enterprise adaptation and be worthwhile to take into consideration of each company
As traditional media channels are becoming increasingly overloaded, with the ability to interact with internet users and be less effective under the effect of Covid-19, the flexibility in deployment as well as the richness of forms, digital based media is gradually becoming more and more popular in many countries in the world, including Vietnam
To align with current market trends, Castrol Vietnam, a major client of MindShare, has opted for integrated media communication as their strategic approach for promoting their products and brands in the Vietnamese market As a result, they have partnered with MindShare Vietnam as their primary media agency for handling their MCO segment in Vietnam.
Realizing the importance of this promotion mix activities and to increase the level of brand awareness, so I chose the topic: “Planning Integrated Marketing Communication
Activities for MCO Segment of Castrol at Mindshare Vietnam” as the topic for this graduation thesis
Research objectives
• To understand about integrated marketing mix activities of a company
• To analyze the impact of micro and macro environment to lubricant oil industrial
• To analyze the level of access and satisfaction and evaluate good points, limitations of integrated marketing mix activities for MCO segment of Castrol at Mindshare Vietnam
• To propose specific solutions to improve the efficiency of the integrated media activities for MCO segment of Castrol Vietnam.
Research scope
The scope of research: Implementation integrated media planning activities for Castrol Brand at media agency Mindshare Vietnam in 2021
Research methodology
The research methods mainly used in the report are comparative methods, horizontal analysis methods, vertical analysis methods, meta-analysis to give out a right Mindshare Vietnam.
Graduation thesis structure
Graduation with topic: “Planning Integrated Marketing Communication Activities for
MCO Segment of Castrol at Mindshare Vietnam”, in addition to the introduction, conclusion, list of tables, list of figures, table of contents, list of references, the content is divided into four main chapters as follows:
Chapter 1: Introduction about Mindshare and Castrol Vietnam
Chapter 3: The real situation of integrated media activities for MCO segment of Castrol Vietnam
Chapter 4: Proposing solutions to enhancing integrated media activities for MCO segment of Castrol Vietnam
INTRODUCING ABOUT MINDSHARE AND CASTROL VIETNAM
GroupM Vietnam
• Company’s international business name: GroupM Vietnam Limited Liability Company
• Address: Level 42, Bitexco Financial Tower, 02 Hai Trieu Street, District 1, Ho Chi Minh City, Vietnam
• Type of company: Limited Liability Company
• Type of certificate: certificate of business registration
Mindshare Vietnam
• Company’s international business name: Mindshare Vietnam Limited Liability Company
• Address: Level 41, Bitexco Financial Tower, 02 Hai Trieu Street, District 1, Ho Chi Minh City, Vietnam
• Type of company: Limited Liability Company
• Type of certificate: certificate of business registration
Mindshare is the strategic media agency of record for their client partners representing over 15 categories, across branding and performance
Figure 1 4: Structure of Mindshare Vietnam
At Mindshare Vietnam, they organize their structure of working into clusters Each cluster is responsible to 1 to 3 clients or more depending on their capacity led by account lead or cluster director at the specific time And in every cluster comprises of 5 teams to support their clients:
As for the planning team structure at Minshare Vietnam, it is typically broken down into 2 smaller team but quite similar in terms of scope of work and functions for each such as:
• Develop an integrated media campaign approach and how everything integrates within the bigger communication strategy for their appointed clients
• Apply knowledge of Vietnam's media landscape and the role of digital/media channels to deliver compelling solutions
• Communicate and maintain a day-to-day operational relationship with a mid-level person of clients and internal as well as external stakeholders
• Assist in making the quarterly and annual media plan, budget allocation, and own day-to-day reports to regional manager
• Deliver small-size or a part of large-size proposal presentation (from traditional to digital) to clients and internal stakeholders with close support
• Drive tactical innovation across media platforms, including display, video, search, mobile, social and programmatic…
• Manage implementation and collaborate with media owners, agency partners, and internal buying teams to ensure all deliverables are met/launched on time.
Castrol Vietnam
• Company’s international business name: Castrol BP Petco Company Limited
• Address: Level 9, Time Square, 57-69F Dong Khoi, District 1, Ho Chi Minh City, Vietnam
• Type of company: Limited Company
• Type of certificate: certificate of business registration
Maitaining its position as a leading operator in vietnamese lubricant market
Castrol BP commits to serve the best products and excellent customer service for their domestic customers and export to conquer the peek of the ever-changing customer demands
Safety is good business Everything we do relies upon the safety of our workforce and the communities around us We care about the safe management of the environment We are committed to safely delivering energy to the world
We respect the world in which we operate It begins with compliance with laws and regulations We hold ourselves to the highest ethical standards and behave in ways that earn the trust of others We depend on the relationships we have and respect each other and those we work with We value diversity of people and thought We care about the consequences of our decisions, large and small, on those around us
As a leading force in a demanding industry, we are unwavering in our commitment to excellence through meticulous and regimented operational management Adhering to our established rules and standards, we strive for exceptional results, fostering a culture of continuous learning and improvement Unwavering in our pursuit of quality, we relentlessly address any shortcomings, ensuring the highest level of execution.
Our mission demands courage: the fortitude to confront adversity, express our convictions, and stay true to our values We relentlessly pursue integrity, fostering an environment of innovation and collaboration By seeking constructive feedback and embracing honesty, we strive for ongoing growth and impact Our aspiration transcends immediate concerns; we aim to leave a lasting legacy that resonates beyond the present moment.
Whatever the strength of the individual, we will accomplish more together We put the team ahead of our personal success and commit to building its capability We trust each other to deliver on our respective obligations
Figure 1 6: Organization Chart of Castrol BP Petco Vietnam
Channel Development Manager Media Manager
Manager HR Manager Finance manager
The company was organized under the corporate model consists of production and business operation, departments managed by six powerful managers those are Sales, Marketing, Finance, Human Resource, HSSE & Administration, Plant The Board of Directors includes General Director, Deputy General Director and eight other powerful Managers from each departmen Among them, Sales Department is considered the most important Department with total 68 people directed by Head Sales and (also General Director) that directly influence the business result of the company Besides, all other departments have the same important roles in the company’s business
As a scope for Media Activities, Brand team and Media Team of Marketing Department have to work closely with media agency ( Mindshare Vietanm ) to brief and set expectations about the company objectives as well as their marketing objectives and monitoring
Castrol Vietnam has more than 350 products serving customer demand in which there are about more than 90% products have been produced domestically and the rest is imported by sea or sometimes by air to serve various demand from customers
In general, the company segment its products into 3 main categories which are MCO, PCO and CVO
All motorcycle lubricant (MCO segment) has small carton packages from 0.8 to 1L while passenger cars (PCO) need the 4L packages For consumer trucks, appropriate packages are pails of 18L and 25L Especially all industrial lubricants are contained in drums of 208L and 209L
LITERATURE REVIEW
General Issues
Marketing encompasses a wide array of activities, institutions, and processes that aim to create, communicate, deliver, and exchange offerings that bring value to various stakeholders As defined by the American Marketing Association (2007), marketing involves identifying and fulfilling customer needs, building relationships with clients, fostering partnerships, and contributing to the overall well-being of society.
Philip Kotler’s definition of Marketing (1991) is – “Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with other The term also explained that marketing is a combination of the science and art of exploring, creating, and delivering value to satisfy the needs of a target market at a profit Marketing identifies unfulfilled needs and desires It defines, measures and quantifies the size of the identified market and the profit potential It pinpoints which segments the company is capable of serving best and it designs and promotes the appropriate products and services.”
The Marketing Mix is the set of marketing tools that a company uses to achieve its objectives in a selected market Marketing tools are mixed and combined into a unified whole to respond to differences and changes in the market It can be said that Marketing Mix is a situational solution of the organization ( Quach thi buu chau, 2012 )
Marketing tools include: Product, price, place and promotion and are often referred to as the 4Ps (p.23)
2.1.2 Definition of Promotion Mix / Integrated Marketing Communication Mix ( IMC )
In the marketing mix, the promotional mix plays a crucial role in reaching target markets By establishing a positive company image and fostering favorable public sentiment through effective communication, businesses enhance their business contacts and secure necessary investment funds This promotion mix, as emphasized by Philip Kotler, is an essential driver of marketing success, facilitating connections and financial support for business growth.
"Promotion mix is the specific combination of instruments to promote that company used to convincingly communicate customer value and build customer relationships" (McQuerrey, The Objectives of Marketing Promotions, 2018)
McCarthy (1998) determined the mix of marketing communications (Promotion mix) as a specific combination of elements: advertising, personal selling, sales promotion, public relations and direct marketing that companies use to implement their targets for advertising and marketing
From these definitions I conclude that the promotion mix is the specific blend of advertising, sales promotion, public relations, personal selling, and direct-marketing tools that the company uses to persuasively communicate customer value and build customer relationships
Advertising is a great way for a business to reach a large audience with a broad message It’s an effective type of promotion for telling your prospects about the benefits of your product or service and how it can help to solve their problems It’s also a good way to build brand awareness and introduce new product lines Advertising at key intervals on many platforms helps to keep the brand top of mind for prospects
Because of the many forms and uses of advertising it is difficult to generalize The following qualities may be noted:
• Pervasiveness – Advertising permits the seller to repeat a message many times It also allows the buyer to receive and compare the message of various competitors Large scale advertising says something positive about the seller’s size, power, and success
• Amplified expressiveness – Advertising provides opportunities for dramatizing the company and its products through the artful use of print, sound and color
• Impersonality – The audience does not feel obligated to pay attention or respond to advertising Advertising is a monologue in front of, not a dialogue with the audience
• Public presentation – Advertising is a highly public mode of communication Its public nature confers a kind of legitimacy on the product and also suggests a standardized offering Because many persons receive the same massage, buyers know that their motives for purchasing the product will be publicly understood (Middlebrook, 2019)
Advertising includes messages that your company pays for, delivers through a mass medium and uses to persuade consumers to make a purchasing decision The three general ad objectives are to inform, to persuade and to remind customers about the product and its benefits compared to those of competitors Within these broad goals, companies normally have more specific, quantified objectives, as well
An informative ad is used to introduce a brand new company, product or service to the market Before you can convince customers that you have the best option, they have to know what your product does on a basic level
Persuading customers is a prominent advertising objective of companies in competitive markets Once customers have a basic understanding of your industry and product offerings, you must show them why your brand is elite
Remind: Put the Product Front-of-Mind
Reminder ads simply reinforce your brand message to a well-established marketplace The general idea is to maintain top of mind awareness and protect against competitors coming along and stealing your customers (Kokemuller, 2019)
Currently, enterprises can advertise on a variety of media These means can be divided into the following groups:
• Group of print media such as newspapers, magazines, trade publications These vehicles have been used for a long and popular ever
• Group electronic media such as radio, television, movies, internet These medias began to appear from the mid-20th century and quickly became the advertising media effectively
• Group outdoor media, such as billboard, posters, signs Derived from ancient times and is still widely used today
• Group direct advertising media like direct mail, telephone
• Group other medias such as advertising on the items (Wisla, 2016)
According to Philip Kotler: “Media-based advertising has been first among equals for the traditional Ps of Marketing for over a hundred years Indeed, the advertising agency model of translating a company’s marketing strategy into carefully crafted messages that are inserted into media vehicles that reach targeted consumer with appropriate frequency has perhaps been the most defining characteristics of modern marketing”
In addition to this, “Brand communication boils down to two fundamentals One is content – what brand communicates The second is contact – how the communication connects to its intended audience Media Planning is the art and science of making that connection” (Larry D.Kelley, a Professor of Advertising at the Jack J Valenti School of Communication, 2015 )
Also, Jenning Bryants (2020), in his publication “ The Media Handbook” , determined that “media as a means of conveying a specific kind of information – an advertising message – about a product or service to consumers.”
Alongside with all of these given definitions of trusted experts in relation with what I researched and accumulated during my working time at Mindshare I conclude that media
16 is the art of strategic selection and implementation of advertising channels to deliver Brand’s communication messages to its target audience in the most effective and efficient ways
2.1.4.2 The Objective of Media Planning
SWOT Analysis
Existing businesses can use a SWOT analysis, at any time, to assess a changing environment and respond proactively New businesses should use a SWOT analysis as a part of their planning process There is no “one size fits all” plan for your business and thinking about your new business in terms of its unique “SWOTs” will put you on the right track right away and save you from many headaches later on (Berry, 2017)
Table 2 1: The elements of SWOT analysis
Internal capabilities that may help a company reach its objectives
Internal limitation that may interfere with a company’s ability to achieve its objectives
External factors that the company may be able to exploit to its advantage
Current and emerging external factors that may challenge the company’s performance
Source: Philip Kotler, Priciple of Marketing
Factors Influence Media Planning
The economic environment can impact both the organization’s production and the consumer’s decision-making process
Vietnam economy over the years been rated as high growth and stability, the Social Economy Commission in Asia and the Pacific (ESCAP), rated as one of the economies with the speed the highest growth in the ASEAN region In recent years, Vietnam economic growth rate is high and stable: Although 2016 economic growth of Vietnam was down to 6.2%, but the context of a moderate inflation rate and economic situation external economic firm, in 2017, economic growth reached 6.81%, exceeding the target of 6.7% set by the National Assembly, the economic growth in 2018 reached 7.08% compared with 2017 - an increase of the highest for 11 years Quality growth and business investment environment improved, the establishment of new business surged Per capita income of Vietnam in 2018 was estimated at 58.5 million VND, equivalent to 2,587 USD, increases 198 USD compared to 2017 It forecasts that an optimistic consumption situation of consumers in Vietnam next time Macroeconomic foundation is improved and gradually strengthened The positive development of the economy has a positive impact on the development of vehicles industry and also engine oil industry creates a favorable environment for Castrol BP expanding markets, developing business and deploying their integrated media activities
Literacy levels of people in Vietnam have been significant improvements, conditions in economics - culture of the people is improved, leading to the need for employment, education and entertainment developed higher better, more diverse and more modern So that, spending on personal hobbies as well as their belongings continued to increase, most of the people take care of their own vehicles Besides, the number of car, scooter and motorbike increased rapidly, franchised workshop and independent workshop are opened
21 more and more lead to the consumption market of engine oil industry has been raised in terms of quantity and quality
Growing society, Vietnamese were affected by the western lifestyle and other cultural backgrounds Therefore, their interests and tastes with products also changed a lot, they note that foreign technology-based products are always at good quality, make the foreign products enter and affect the domestic market
Also, Covid 19 is a game changer for our consumers lifestyle when it put them doing most of their activities from their home rather than out of home activities Hence, largely affect OOH media consumption in negative way
Sound marketing decisions should always take into account political and/or legal developments relating to the organization and its markets
Political and Legal environment of Vietnam in recent years been rated as stable, the government determine to reform and open up the economy, encourage the economic sectors to get rich legitimately Corporate law, competition law and new investment laws were reformed procedures for investment, widen the resources of the private sector and attract foreign investment, create a level playing field between businesses, impact positive to domestic production
Thanks to the rapidly development of Science and Technology, the machinery, equipment and software was created many with cost reduction as the competitiveness of enterprises increased, the enterprise mastered the technology will become a business leads the trend with advantage At the same time, it also makes the competition in the marketplace more intense, challenging the development of enterprises
Businesses want to survive and compete, they must always update and improve technology, improve product and service quality and make sure using them efficiently, reduce waste of resource, be able to automate highly and high localization rate
Nowadays, the smart devices such as smartphones, tablets, laptops also flourished, affect to demand recording, tracking, data storage and analyzing of consumers behavior, that significantly shape the way consumer perceive information and value from the brand through media
Different market segments are typically impacted by common demographic forces, including country/region; age; ethnicity; education level; household lifestyle; cultural characteristics and movements
Each year, we witness the shift in media consumption towards more diverse and complicated channels Unlike traditional media, a decade ago when TV and newspaper are leading in terms of most used medium for majority of people in Vietnam regardless of gender and age However, as Internet penetration in our country has rocketed strongly in recent years, resulted in the amount of time consumers spend on each media will differ from the others When TV, news, magazines tend to decrease, and the internet has achieved strong growth Hence, Budget allocation and company focus for advertising also be driven by this ever-changing behavior of consumers
Each year, we witness the shift in media consumption towards more diverse and complicated channels Unlike traditional media, a decade ago when TV and newspaper are leading in terms of most used medium for majority of people in Vietnam regardless of gender and age However, as Internet penetration in our country has rocketed strongly in recent years, resulted in the amount of time consumers spend on each media will differ from the others When TV, news, magazines tend to decrease, and the internet has achieved strong growth Hence, Budget allocation and company focus for advertising also be driven by this ever-changing behavior of consumers
Rivalry for market share among industry competitors can range from low to extreme, and the level of intensity refers to the extent to which businesses within an industry put pressure on one another The intensity of the rivalry can pose a threat to an industry by limiting profit potential when competitors forcefully target one another’s markets and aggressively price products to gain the business Several factors determine the intensity of rivalry, including the extent of exit barriers, amount of fixed costs, number of competitors in the industry, growth rate of the industry and demand conditions ( Melissa Warrant,
Evaluation Method
• Evaluation of the reach customers that the enterprise needs to communicate
In fact, this is the assessment of the level reach the target audience of the program promotion mix For integrated marketing mix activities, to assess the results of the ad by the number of objects have approached advertising The scale of advertising is determined by "the number of viewers or also by the number of issued" For active participation in fairs, exhibitions, audience reach results will be the total customers to visit the booth of enterprises in fairs and exhibitions
• Evaluation of the extent impress integrated media activities
This is the assessment of the understanding of the object communication about the information that Brand communications were raised Assess the understanding of the product, the characteristics of the product or the business savvy The measurement can be done by investigating the customer's mind about the products of the business or enterprise itself after a marketing communication
• Evaluation of the persuasive measure of an Integrated Marketing Mix
In essence, this is assessing what customers are thinking after receiving information from the Integrated Marketing Mix activities
THE REAL SITUATION OF INTEGRATED MEDIA ACTIVITIES FOR
Market Research
3.1.1 Overview about Media landscape in Vitenam
Figure 3 1: Overview of Vietnam Market 2020
Source: Vietnam General Statistic Office
According to Vietnam Statistic Office, United Nation 2020, the total population of our country is nearly 97 million people with 26,8 million of households in which we can see the majority of Vietnamese still live in Rural area when urban population accounts for 34,7 % and rural residence is about 65,3% of the total population
At the same time, male gender represents 49,8% meanwhile the female relatively stands at 50.2%, just a bit higher than male
In these statistics, we have roughly about 126,1 million active mobile subscription This means each Vietnamese has about 1,5 sim cards, by this I mean, one person uses more than 1 mobile phone number
Figure 3 2: Internet users over time in Vietnam
Over the years, the penetration of internet users in Vietnam have witnessed an upward trend since 2014 with only 36 million user accounting for 39% of total citizen and now are devoted to 70% of the population with around 68 million internet users in 2020
As we take a closer look into digital landscape, we can see that among all internet access devices, mobile is the most used with more than 66 million active users and goes by 68% compared to total population and higher than desktop
Apart from this, social media platform also is a place for more than 65 million active users everyday across all other platforms to expose and spend their time on it
Figure 3 4: Total Adex for tradional media in 2019 & 2020
On the other hand, the total adex for traditional touch points remained unchanged compared to the previous years However, there is a transformation regarding the amount of advertisement spent for it when we break it down into chanels
As for TV chanel, it is observed an slight increase of 0.4 % compared to 2019 Radio adex climb moderately about 4 % On the contrary, Print adex dramatically fell by 20% from 1.048 billion VND in 2019 to 834 billion VND in 2020 But overall, the total investment accumulated from these three for traditional media chanel is not change
Vietnam is one of the largest MCO markets in the world Vehicle penetration is high with 40% (about 38.4 million bikes vs total population 97 million), growth in vehicle sales is starting to slow down as aspiration moving to car ownership
Despite the addition of 3.3 million new vehicles annually, the demand for 2-wheeler lubricants is leveling off However, there is an increasing trend towards thinner viscosity and full synthetic/part-syn technology engine oil, suggesting a shift towards more efficient and environmentally friendly lubricants.
While Castrol share in total MCO is 25%, our share in 5 cities measured by GFK ( the Germany’s largest market research institute) is 34% share, meaning that we are doing better in 5 cities, but for the rest of country, there is opportunity to grow even faster
Vietnam is young population which accounts for 47% total population, nearly 45 million people at the age range from 15 to 45 YOA
More than 60% of new vehicle sales is Scooter Motorcycle population grows at a rate of 6%, while scooter grows at a rate of 14% Scooter contributes to 30% of total two- wheeler parc in Vietnam and is expected to increase to 77% in next 5 years
Castrol is a premium player which I put my emphasis on in this report: Castrol POWER1 is 62% in premium segments, while Castrol Activ is 20% share in mass segment We see competitors become more aggressive in multi-channel media Hence, we start to see volume growth challenge in both premium & mass segment
In lubricant category, consumer does not do oil change by themselves much with just 12% DIY and 88% DIFM, in which 18% accounts for FWS channel and 70% accounts for IWS channel They usually ask mechanics to do that for them, hence majority of their decision is influenced by mechanics In December 2020, Castrol launched Certified Workshop network for the top-tier services workshops to provide complete-solution and high-end consumers services like FWS channel
Castrol POWER1 is the primary customer-focused brand driving Castrol's marketing strategy Launched in July 2020, Castrol POWER1 Ultimate, boasting fully synthetic technology, was introduced with the aim of representing the Castrol POWER1 brand in communications and media efforts.
After the waves Covid-19 in 2020, the market focus is impacted in short-term but stable in long-term
Some consumers change their behaviors of oil change more economical
For example: Extend the drain interval or find another product less pricing/ more offers with look-a-like product specifications Mechanics, especially in urban, look for more trade offers/ support to save operational cost, than we should come up with solution to help them operate workshop more efficiency while keep premium price segment
Since 2016, Castrol has consistently held its position as the market leader in the lubricant oil industry, particularly in the MCO segment Despite its dominance, the company faces competition from other players Among mechanics, Castrol, Shell, and Motul are consistently ranked as the top three brands with the highest brand predisposition.
Integrated Media Approach and Deployment
3.2.1 Passion Points of Target Audience
Concerning about growing touch points for every brand in the market now, apart from
TV from Traditional media, it is undeniable that Digital is a biggest growing platform we can approach our customer Mobile penetration with demonstrated popularity among
Vietnamese users would be the first priority we put strong focus on
Figure 3 7: Target audience’s activities on mobile & digital
As shown in the picture above, there was a crystal-clear shift of common interest in our target group (18-35 YO) when it observe Sport, games, music and social network are top mobile activities that our TA spend most of their time on recently
Figure 3 8: Sport touchpoint analysis report
In Vietnam, football reigns supreme among sports, captivating an astounding 85% of the population as ardent followers This love for football extends beyond casual viewing, with approximately a third of enthusiasts identifying as "crazy fans" who eagerly consume all forms of football-related news, staying up-to-date on every player, match, and tournament The unwavering passion for football in Vietnam presents a significant touchpoint for Castrol Brand, creating a highly receptive audience for its products and marketing initiatives.
Turning to the next possible touchpoint, as the data shows, Music represents 31 % in Tet’s favorite content of Vietnamese, only after comedy, especially young adult when it comes to choices of their entertainment
Figure 3 9: Music touchpoint analysis report
Listening to music is always on top mobile activities/ online activities of Vietnamese people, especially the younger generation
Music marketing is a key strategic approach of most of the big brands in Vietnam, especially during the Festive season Then, this also a must channel of Castrol to have our presence with our target audience
Figure 3 10: Gamers Volume over years
According to Kantar Media, the volume of gamers increases by 48% for 3 years from
2017 to 2020, which is very potential to tap-in to drive affinity at scale More importantly, under covid-19 complex situation in Vietnam, people have to stay at home, working and study remotely, as predicted, these number would keep continuing to go up considerably by 2021 Therefore, Mindshare team also take it as our penetration for Castrol to tap into their prospect’s customers
Figure 3 11: Gaming landscape in Vietnam
Source: Newzoo Global Game Market Report 2020
In addition to gaming context, we observe that 37% of Vietnamese people are gamers which 52% are male and 80% are from 18-35 which directly refers to Castrol MCO segment target audience persona Therefore, this have reinforced our choice of gaming, particularly, mobile gaming platform as our main medium is a reasonable decision for Castrol campaigns If we can deliver personalization ads to these targets, I believe this would result in a big opportunity to grow in both awareness as well as sales
Regarding TV channel: Despite the fact that the channel’s growth rate do not have a remarkable rise in recent years but it is still the most penetrated channel with household and middle aged people in our target group, because as Vietnamese norm, people would have more trust in a product if it is appeared on television
For effective TV planning, Castrol's advertising strategy targeted tier 1 cities with high GRP (Gross Rating Points) and a relevant audience Ho Chi Minh City, Hanoi, Da Nang, and Can Tho were selected due to their dominance in Vietnam's TV landscape and their appeal to the brand's target market This strategic placement ensured maximum reach and engagement with the intended audience.
Table 3 3: Top Program on TV
These are top recommended TV programs that we can run ads on during our campaigns, most of them belong to movie, sport and news category On top of these, HTV and VTV still account for the majorities of programs and having high rating point for our target group Some of the top program such as : 60 giay, the thao 24/7, chuyen dong 24h ( sprot theme ), Therefore, they are our main TV programs for us to run ads on
Figure 3 12: TV occasions of consumption
These figures from GroupM 3D report about when and what occasions Tv program attract the most traffics helps us to have better allocation for buying TV slot in order to optimize our budget as well as effective reach our TV audience
In weekday, there are two distinctive peaks during noon time and 8pm-9pm However, the slopes get flatter at weekend for the same slots
Thanks to this analysis, our team decided to deliver Castrol TVC 15s and TVC 30s on
TV Prime time and pre-prime time which is around 7 pm under format of Instream Ads to have the optimal budget allocation for TV and save the rest for digital platform
Source: Planning team, Mindshare TVC30s can be leveraged for the launch campaign (new product, new communication) to deliver the complete message and drive users' emotions meanwhile 15s TVC play the role of balance the cost and conduct ad recall of the longer TVC
Moving to the subject of Digital Channels, we have many media approaches via digital such as: Facebook, Google, YouTube, Adtima ecosite (Zing mp3, Bao moi, Zing New, 24h)
As for Facebook: with the objective is to build brand awareness and brand love form this channel We deploy advertisements for Castrol Power 1 ULTIMATE with the asset types are image ( mainly vertical form ) and bumper ad mix with in-stream video ( 6s and 15s ) ads and CPE is about 0.10 dollar and 0.11 dollar for video and image respectively
On Facebook, most Facebook ad formats (except Through Play) fit to use less than 10s video assets based on user behavior 6s is the best video duration on Facebook when looking at the VTR effectiveness
If the brand wants to deliver a meaningful message on Facebook, Facebook Mirror via Facebook Watch with Through Play ad format is the best choice to achieve the KPIs
Along side with this, on facebook, we also have PR posts from some relevant KOLs for our Castrol Brand such as: Cong Phuong -national football player, Liem Binh Phat – actor, Trinh Thang Binh – singer for PR promotion part
As for Adtima Ecosite: we deploy display static ad image on both sides of landing page and some impactful ad on top banners of 24h, bao moi sites
Figure 3 14: Castrol Zalo OA Ads
General Assesment of Media planning activities for MCO segment of Castrol in
Figure 3 27: Tet Campaign achievement in Digital Channels
With Tet campaign we have successfully achieved these numers and go beyond the expectation for MCO segment of Castrol:
In relation with digital channels:
• Engagement: 2,2 engagements across all digital channels (like, share, comment, inbox, etc.)
• Consideration index is uplift about 21 points compare to last year
• Purchase Intent index also witness an uplift of 17 points compare to the previous year
• Reach: 77% on our TA pool
Besides the achievements that brand Castrol, particularly for MCO segment, has achieved in the implementation of the integrated media activities, it still exists some shortcomings and certain restrictions
Usual delay in reporting and billing stage caused time waste regarding to planning team confirmation with vendor to having our campaign and ads on air as timeline
Staffing shortages within the finance team, particularly in the human resources department, hinder efficient billing processes Additionally, the requirement to obtain multiple confirmations from various departments delays the process further The absence of authorized personnel for stamp approvals exacerbates these delays, leading to significant setbacks in the timely execution of billing tasks.
Percentage of Reach on TV Channel is not as expected with the media investment
Reason: Due to the peculiarity of the specific TV program and device and TV content now is evolving and changing over time with more targeting features and the downstream in using cable TV as well as hybrid TV among Vietnamese youngsters
Lack of Castrol presence e-Commerce platforms under the huge impact of Covid-19 on Vietnamese going out activities Castrol does not have any official store on Lazada or Shopee or Tiki to maintain their brand visibility compared to other competitors so far
Reason: As we noticed Castrol is a market leader in lubricant industry in Vietnam and in this period of time, they solely focus on upper funnel in marketing which is about brand awareness and Engagement However, other competitor such as Caltex and Shell already launched their store on e Commerce sites From my point of view, we totally can- do branding on e Commerce
PROPOSING SOLUTIONS TO ENHANCING THE INTEGRATED
Proposed Solution for Internal Billing Process
The implementation of a digitalized billing process eliminates the time-consuming need for physical office visits and manual confirmations By establishing a comprehensive group system, the planning team can seamlessly import confirmed media plans and actual monthly expenditures This system grants access to key stakeholders, including the finance team, media investment team, and Mindshare leadership, enabling them to grant permissions and access critical data in real-time This streamlined process frees up valuable time, allowing for increased efficiency and timely completion of vendor billing.
To alleviate the workload of the Finance team, the HR Department should consider both short-term and long-term solutions In the short term, the process of checking billing and vendor reports can be partially transferred to the OOH team, whose workload has decreased significantly due to COVID-19 Additionally, in the long term, the HR Department should implement a recruitment plan to hire more staff and distribute the workload of the Finance team more evenly.
Proposed Solution for Reach
To address the problem of growing percentage of Reach on TV platform I propose to shift our investment of TV program to OTT ( over the top )
According to The Trade Desk organization, OTT basically refers to video content streamed via the internet regardless of which device are using
For example: People can watch OTT content such as a streamed football match on any device, it could be PC, mobile, tablet, Laptop or Connected TV (which included Smart
TV, Streaming Device and Game Console )
I suggest this because nowadays people watch a particular content through many device and also a lot of program live music concert, movie, series only broadcasted on some channel in OTT platform such as Vieon, Netflix, FPT play, Viettel In addition to that, OTT audience scale in terms of monthly active user is reaching about half of YouTube penetration Plus, with OTT content, the audience can re-watch the catch-up videos or TV shows as many time as possible so higher chance our ads can be exposed to them Therefore, we should invest more on OTT channel to increase our reach better
Table 4 1: OTT audience scale vs YouTube
So as to make this solution more measurable and feasible, I will roll out a description as well as detail media plan for pilot OTT campaign for Castrol Power1 ULTIMATE for
1 month to see its estimated cost and performance
Table 4 2: Description for Pilot Campaign with OTT
- Focus Areas: Top 6 cities (HCM, HAN, DAN, CAN, HP, NT)
• Section: Opensite OTT - Instream Video
4 Objective Maximize awareness in top 6 cities for MAGNATEC
5 Market Top 6 cities (HCM, HAN, DAN, CAN, HP, NT)
8 Note Exclude POPs App inventory
• Buying Type: CPM (Cost per Mille)
Table 4 3 Top OTT Channels for the Campaign
Proposed Solution for Brand Availability on e-Commerce sites
Concerning the issue of our competitor such as Caltex and Shell having their own official store across 3 biggest e commerce site in Vietnam I also recommend Castrol Vietnam to launch their official store in these top 3 e commerce sites
Figure 4 2: Top e commerce sites in Vietnam
As Covid 19 has spread out and having affected to our target audience shopping behaviors Our TA tend to make their purchase online more, and visit e commerce sites such as Shopee, Tiki and Lazada on their daily basis more frequently as we can see in the figure 3.3 below
By leveraging Castrol's focus on awareness and engagement, we can effectively tap into our target audience's routine through strategic placements on social media platforms This approach will enhance our brand's overall presence and coverage across multiple channels, maximizing our reach and fostering deeper connections with our target demographic.
At the same time, Castrol Brand can consider doing branding on these sites through daily sales and promotion utilized the great amount of traffic on Shopee, Lazada and Tiki
On these sites we can collaborate with them to have our product promotion through daily flash sale activities which have the most traffic of visitors on the site, mini campaign and big campaign every month, live stream sponsor daily
Participating on some package like Cash back, Free Ship Extra vouchers to attract users and having better visibility for our target audience in e commerce site
Besides, we also can optimize our shop in shop page regarding key visual, product coupon and layout to gain more engagement of people who first visit our store on e
Using SEO-optimized techniques, e-commerce businesses can allocate saved budgets from out-of-home (OOH) advertising towards targeted digital campaigns This includes search ads on e-commerce homepages and discovery sites, cost-per-acquisition (CPAs), and Google Shopping ads to drive off-site traffic to their stores By leveraging these strategies, businesses can effectively target and convert users who may be shopping with their competitors on e-commerce platforms.
Particularly, to demonstrate the possibility of the suggestion, I also have one of the Top
3 E commerce Marketplace Media Team – TIKI Media counseling for their on-site solutions and have quite impressive with their offer for 3 Ads Solutions: Product Ads, Brand Ads and Display Ads
Figure 4 3: Always on Tiki Ads Solution Source: Tiki Media
Figure 4 4: Position and Visibility Using Tiki Ads
Figure 4 5: Demo Visibilities across all Pages of Tiki Site
As illustrated by 3 figures above, with each Tiki Ads, it can help brand to achieve certain goal, but overall can open up broader chances to reach to target audience from this site
Product Ads are ideal for Always-On campaigns due to their prominent visibility options They appear on multiple key pages within the e-commerce platform, including the Home Page, Search Result Page, Category Page, and Product Detail Page As a result, these ads have the potential to generate higher click-through rates (CTR), directing users to the Castrol Official Store This extended exposure allows for ample time to educate customers about the product portfolio and drive conversions.
With Brand Ads, this is special solution when it only shows our ads in SRP and while we are typing keyword, it will suggest Brand Store ‘Logo As a result of this, it would draw attention of searcher to likely click on our brand store more and increasing traffic But because of its limit visibility, only on SRP, it would be more suitable when we want to retarget our current user rather than new user to our store
Last but not least, Display Ads, this is a ultimate solution at the moment only on TIKI to drive traffic, because of the size of the banner, also it can appear in all pages of TIKI with dynamic mix between vertical banner and horizontal banner So that people will perceive more not only about brand product but also message or promotion on banner However, Unlike Product and brand Ads when it comes to pricing model is CPC, quite affordable for brand, display ads pricing model is CPM Hence, I only suggest using this format during big event/campaign to better accommodate the ROI of Castrol
Table 4 4: Tiki Ads Plan for Super Brand Day of Castrol
Brand Investment (VND) GMV Generated (VND) Click ACOS Biker Power1 29,000,000 122,559,809 3,129 23.66%
The Media Plan is my recommendation after considering products of Tiki Media Team, Total Budget for this Super Brand Day will take approximately about 4 thousand Dollar with the duration for 4 days with all 3 solutions running together Besides, it is also expected to gain about 8734 click to our ads to bring new user to Castrol Official store on TIKI
This graduation thesis has carried out the task from the study of theoretical basis of integrated media activities of the MCO segment of Castrol Vietnam into assess the situation of integrated media activities for Castrol Vietnam at Mindshare Vietnam to propose solutions to enhancing the effectiveness of integrated media activities for Castrol at Mindshare Vietnam
The graduation thesis “ Planning Integrated Marketing Mix Activities for Castrol at
Mindshare Vietnam ” have resolved some key issues:
• To apply the reasoning, documents, and statistics to analyze the situation of production and business, competitive situation and assess the status of integrated media activities for Castrol Brand at Mindshare
• To propose some solutions to Enhancing the effectiveness of integrated media activities for MCO segment of Castrol at Mindshare
In process of researching this graduation thesis, due to the ability and more restrictive conditions, this report does not avoid shortcomings With the motto of learning, by doing, learning from experience to complement completely, the author would like to receive more feedback and addition from teachers, friends and colleagues for essays are rich and complete more customization
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Appendix 1: Brand Equity Connection to Consumer’s Preference
Brand is a set of associations (ideas, memories and feelings) in the mind of a consumer Its value stands at helping to increase the likelihood the consumer will buy and the how much the consumer are willing to pay
Brand Equity is an intangible asset of a brand, the value of which is determined by the capacity of the brand to predispose consumers to choose it over others or pay most for it now and in the future
Figure 0 1: Key Attributes to Brand Power The Meaningful -Different - Salient framework provides a laser focus on understanding these 3 types of consumer predisposition and how to influence them
Figure 0 2: MDS Model Influence Brand Selection
These 3 attributes to the brand transform from validated fundamental characteristics to measurable metric Here are some understandings about them according to Kantar Insight:
• Meaningful: meaning involves both cognition and affect It is about how the brand makes you feel and how well it satisfies your needs
• Different: is about standing out from the rest thus becoming a more attractive
(better) option Different is a strong marker of future growth
• Salient: is about coming easy to mind the time deciding about brand Salience gives a brand an advantage because of the habitual nature of much human behavior
Figure 0 3: Measurement for each attribute