Building and developing hydrotrim brand in Vietnam market

HCMC OPEN UNIVERSITY UNIVERSITEÙ LIBRE DE BRUXELLES SOLVAY BUSINESS SCHOOL MASTER IN MANAGEMENT PROGRAM (MMVCFB 6) HO VAN THAI BUILDING AND DEVELOPING HYDROTRIM BRAND IN VIETNAM MARKET THESIS TUTOR : Assoc. Pro. Dr. NGUYEN DONG PHONG MASTER IN MANAGEMENT THESIS Hochiminh City 2006 WARRANT STATEMENT This is my original work. All data and results stated in the thesis are completely true. Ho Van Thai ACKNOWLEDGEMENTS I wish to express my deep gratitude to Professors, Universiteù Libre de Bruxelles, Solvay Business School and Hochiminh City Open University for providing knowledge and giving valuable experience during my study. I would like to give my special thanks to my Tutor, Associate Professor Doctor Nguyen Dong Phong, for his valuable guidance, advice and encouragement throughout my research study. Deep appreciation and thanks are also extended to my colleagues, classmates, Mega Lifesciences Company and my family for their support and encouragement throughout the program. Ho Chi Minh City, 20 November 2006 Ho Van Thai TABLE OF CONTENTS Acknowledgements Comments List of figures List of tables Introduction …………………………………………………………………………………………………………………………… 1 1. Problem statement ……………………………………………………………………………………………… 1 2. Objectives of research study ……………………………………………………………………………. 2 3. Scope and limitation of research study ………………………………………………………… 2 4. Study method ………………………………………………………………………………………………………… 3 5. Structure of the study ………………………………………………………………………………………… 4 Chapter 1: Literature review ………………………………………………………………………………………… 5 1.1. Definition of brand …………………………………………………………………………………………… 5 1.1.1. What is a brand? …………………………………………………………………………………………………… 5 1.1.2. Brands versus products ………………………………………………………………………………………… 5 1.2. Brand building and developing ……………………………………………………………………… 6 1.2.1. Brand orientation model …………………………………………………………………………………… 7 1.2.2. Corporate branding ………………………………………………………………………………………………. 9 1.2.3. Building Brand Value through Customer Service …………………………………… 13 1.2.4. The role of public relations in branding …………………………………………………… 13 1.3. Branding in pharmaceutical industry …………………………………………………………… 15 1.3.1. Pharmaceutical brands ………………………………………………………………………………………. 15 1.3.2. The Brand Value Pyramid – Functional vs. Emotional Benefits ……… 17 1.3.3. Laying the Foundations …………………………………………………………………………………… 18 Summary of chapter 1 ……………………………………………………………………………………………………. 20 Chapter 2: Introduction to Mega Lifesciences, Vietnam pharmaceutical market and reducing weight product market ………………………………………………………………. 21 2.1. Overview of Mega Lifesciences Company Limited (Mega We Care) 21 2.1.1. Mega Lifesciences International ………………………………………………………………. 21 2.1.2. Mega Lifesciences Vietnam ………………………………………………………………………. 25 2.1.2.1. History …………………………………………………………………………………………………………… 25 2.1.2.2. Operation………………………………………………………………………………………………………. 26 2.1.2.3. Organization ………………………………………………………………………………………………. 26 2.1.2.4. Medicap’s philosophy, objectives and strategy………………………………… 29 2.1.2.5. Medicap’s products ……………………………………………………………………………………… 30 2.1.2.6. Medicap’s sales performance . ………………………………………………………………… 31 2.2. Pharmaceutical Market in Vietnam ……………………………………………………………… 33 2.2.1. Overview of pharmaceutical market in Vietnam …………………………………. 33 2.2.2. OTC pharmaceutical market in Vietnam …………………………………………………. 34 2.3. Reducing weight product market …………………………………………………………………… 34 2.3.1. Overweight and obesity concepts ……………………………………………………………… 34 2.3.1.1. What are overweight and obesity? …………………………………………………………… 34 2.3.1.2. Facts about overweight and obesity………………………………………………………… 36 2.3.1.3. Overweight and obesity in Vietnam …………………………………………………………. 37 2.3.2. Survey on reducing weight product market in Vietnam ……………………… 38 2.3.3. Analysis of Hydrotrim competitors ……………………………………………………………… 41 2.3.3.1. Classification by price and scientific proof …………………………………………. 41 2.3.3.2. Strenghts and weaknesses of Hydrotrim competitors …………………… 42 2.3.4. Opportunities and threats of Hydrotrim ………………………………………………… 44 2.3.4.1. Opportunities ………………………………………………………………………………………………… 44 2.3.4.2. Threats ……………………………………………………………………………………………………………… 45 Summary of chapter 2 …………………………………………………………………………………………………. 46 Chapter 3: Building and developing Hydrotrim brand in Vietnam for the last period……………………………………………………………………………………………………………………………………. 47 3.1. Targeting and positioning Hydrotrim …………………………………………………………… 47 3.1.1. Hydrotrim consumer profile…………………………………………………………………………… 47 3.1.2. Customers ……………………………………………………………………………………………………………. 48 3.1.3. Positioning …………………………………………………………………………………………………………… 48 3.2. Hydrotrim identity …………………………………………………………………………………………………. 49 3.2.1. Hydrotrim brand as a product ……………………………………………………………………… 49 3.2.2. Hydrotrim price …………………………………………………………………………………………………… 50 3.2.3. Hydrotrim image………………………………………………………………………………………………… 50 3.2.3.1. Hydrotrim name, color and symbol…………………………………………………………… 50 3.2.2.3. Communication ……………………………………………………………………………………………… 52 3.3. Integrated marketing programs to build and develop Hydrotrim brand in Vietnam …………………………………………………………………………………………………………………………………. 52 3.3.1. Marketing objectives of Hydrotrim for the first 12 months ………………… 52 3.3.2. Hydrotrim trial campaign to build the credibility ………………………………… 53 3.3.2.1. The trial research cooperated with Traditional Medicine Institute 53 3.3.3.2. Two trial researches by Mega Lifesciences itself ………………………… 55 3.3.3. Hydrotrim launching campaign ……………………………………………………………………… 56 3.3.3.1. Pharmacy meeting in Hochiminh city and Hanoi ……………………………………. 56 3.3.3.2. Television talk show …………………………………………………………………………………………. 58 3.3.3.3. Press articles ……………………………………………………………………………………………………… 59 3.3.3.4. Tele-consulting program……………………………………………………………………………… 60 3.3.3.5. Consumer promotion ……………………………………………………………………………………. 62 3.3.3.6. Trade promotion ………………………………………………………………………………………….… 63 3.3.3.7. P.O.S. display …………………………………………………………………………………………………. 63 3.3.3.8. Medicap Sales Force……………………………………………………………………………………. 65 3.3.4. Hydrotrim post-launching campaign…………………………………………………………. 65 3.3.4.1. Television programs ……………………………………………………………………………………… 66 3.3.4.2. Press articles …………………………………………………………………………………………………… 66 3.3.4.3. Trade promotion …………………………………………………………………………………………… 66 3.3.4.4. Promoter Girl at pharmacies ………………………………………………………………………. 67 3.3.4.5. Promoter Girl at supermarkets ……………………………………………………………………. 67 3.4. Evaluation of building and developing Hydrotrim brand …………………………… 68 3.4.1. Sales performance ……………………………………………………………………………………………… 68 3.4.1.1. Sales of Hydrotrim from June 2005 (launching month) to June 2006 68 3.4.1.2. Sales evolution from June 2005 to June 2006 …………………………………………. 69 3.4.1.3. Sales vs. target for the first 12 months ……………………………………………………… 70 3.4.1.4. Ranking of Hydrotrim …………………………………………………………………………………… 70 3.4.2. Availability of Hydrotrim at pharmacies ……………………………………………………. 70 3.4.3. Survey on Hydrotrim brand awareness ………………………………………………………. 72 3.4.3.1. Consumers surveyed and methodology ………………………………………………… 72 3.4.3.2. Results of the survey………………………………………………………………………………………. 72 3.4.4. Survey on consumer perception of Hydrotrim brand ……………………………. 73 3.4.4.1. Objectives of the survey ……………………………………………………………………………. 73 3.4.4.2. Criteria to select consumers ………………………………………………………………………… 74 3.4.4.3. Methodology …………………………………………………………………………………………………… 76 3.4.4.4. Results of the survey ……………………………………………………………………………………… 76 3.4.5. Survey on pharmacy perception of Hydrotrim brand ………………….…………. 83 3.4.5.1. Objectives of the survey ……………………………………………………………………………… 83 3.4.5.2. Criteria to select pharmacies ………………………………………………………………………. 83 3.4.5.3. Results of the survey………………………………………………………………………………………… 84 3.5. SWOT analysis …………………………………………………………………………………………………………. 95 3.5.1. Strengths …………………………………………………………………………………………………………………… 95 3.5.2. Weaknesses ……………………………………………………………………………………………………………… 97 3.5.3. Opportunities ………………………………………………………………………………………………………… 98 3.5.4. Threats ………………………………………………………………………………………………………………………. 99 Summary of chapter 3 ……………………………………………………………………………………………………. 100 Chapter 4: Recommendations for developing Hydrotrim brand in Vietnam market for the next years ……………………………………………………………………………………………… 101 4.1. Marketing objectives for the years from 2007 to 2010 …………………………… 101 4.2. Marketing programs for the years 2007 to 2010 ………………………………………… 102 4.2.1. TV programs ………………………………………………………………………………………………………… 102 4.2.1.1. TV channels ………………………………………………………………………………………………………… 102 4.2.1.2. Programs and contents …………………………………………………………………………………… 103 4.2.2. Press articles ……………………………………………………………………………………………………………. 103 4.2.2.1. Newspapers and magazines …………………………………………………………………………… 103 4.2.2.2. Contents ………………………………………………………………………………………………………………… 103 4.2.3. P.O.S. materials …………………………………………………………………………………………………… 104 4.2.4. Tele-consulting activity …………………………………………………………………………………… 105 4.2.5. Trade promotion and consumer promotion ………………………………………………… 106 4.2.6. New programs …………………………………………………………………………………………………………. 106 4.2.6.1. TV commercials…………………………………………………………………………………………………… 106 4.2.6.2. Press advertisements ……………………………………………………………………………………… 106 4.2.6.3. P.O.S. display …………………………………………………………………………………………………… 107 4.2.7. Market research ……………………………………………………………………………………………………. 107 4.2.8. Sales Force …………………………………………………………………………………………………………… 108 Summary of chapter 4 …………………………………………………………………………………………………… 109 Conclusions ……………………………………………………………………………………………………………………… 110 Lessons ……………………………………………………………………………………………………………………………… 111 Appendices References LIST OF FIGURES Figure Content Page 1 Brand hexagon 10 2 Elements of corporate branding 11 3 The six conventions of corporate branding 12 4 Brand value pyramid 17 5 Organization chart of Mega Lifesciences Vietnam 27 6 Organization chart of Medicap Vietnam 28 7 Organization chart of consulting of Medicap Vietnam 29 8 Medicap sales performance from 2000 to 2005 31 9 Medicap sales by customer type in 2004 and 2005 32 10 A picture of one target consumer of Hydrotrim 47 11 Hydrotrim box and sachets 51 12 Pharmacy meeting in Hochiminh city 55 13 Talk show “Kien Thuc Tieu Dung” on HTV 7 59 14 Consulting cards sent to Hydrotrim consumers 61 15 Hydrotrim VCD package 62 16 Hydrotrim poster 63 17 Hydrotrim leaflet 64 18 Hydrotrim sales kit 65 19 A Promoter Girl worked at Maximart Cong Hoa, HCMC 68 20 Sales of Hydrotrim from June 2005 to June 2006 69 21 Percentage of means consumers know Hydrotrim from 77 22 Percentage of responses to benefits to consumers 85 [...]... Lifesciences, Vietnam pharmaceutical market and reducing weight market Chapter 3 Building and developing Hydrotrim brand in Vietnam for the last period Chapter 4 Recommendations for developing Hydrotrim brand in Vietnam market for the years from 2007 to 2010 Conclusions -5- Chapter 1 Literature Review 1.1 Definition of brand 1.1.1 What is a brand? 1 Branding has been around for centuries as a means to distinguish... building Hydrotrim brand in Vietnam for the last year and then to understand the evaluation of consumers and pharmacies on the brand Finally, we will give some recommendations for developing Hydrotrim brand for the next years 3 SCOPE AND LIMITATION OF RESEARCH STUDY This research will concentrate on the building and developing Hydrotrim brand since the launching in Vietnam market in June 2005 -3- It... perceptions and feelings about the product’s attributes and how they perform, about the brand name and what it stands for, and about the company associated with the brand 1.2 Brand building and developing -7- 1.2.1 Brand Orientation Model2 Urde (1999) presents Brand Orientation as a brand building model that focuses on brands as strategic resources Brand Orientation is an approach in which the processes... branding in pharmaceutical industry The following key points were mentioned It is important to build a product brand together with corporate branding Another point is that customer service plays a key role in brand building The last point is that PR activities, not advertising, should be focused in branding, espeacially at the early stage Finally, four key criteria of branding in pharmaceutical industry... objective of creating value and forming relationships with the customer 1.2.2 Corporate Branding2 The most recent turn in branding literature emerged in the mid-nineties Businesses began shifting their focus from product brands to corporate branding (de Chernatony 1999, Hatch and Schultz 2003) The corporate brand perspective supports, and could be a consequence of, the strategic view of brands King (1991)... values In other words, an organization’s core values must be the guiding light of the brand building process, both internally and externally They must be built into the product, expressed in behavior, and reflected in communication “Core values influence continuity, consistency and credibility in the building of a corporate brand (p 1036) According to Balmer and Gray (2003), corporate and product brands... of being taken; 4 Cost-effectiveness – will the cost be a barrier? 1.3.3 Laying the Foundations6 Optimizing the opportunity for the brand comes down to maximizing and maintaining the key brand variables—positioning, personality, brand name and identity Establishing clear and strategic foundations, therefore, is fundamental to underpinning the development of any brand The blueprint of great brands can... building product brands together with corporate brand They are continuously building their brands to compete with strong brands from The United States and European countries According to the management board, Hydrotrim, a reducing weight brand, is the most successful brand in a sense of sales and profit for the first year of launching We know that reducing weight market is a potential market with too... development, and protection of brand identity in an ongoing interaction with target customers with the aim of achieving lasting competitive advantages in the form of brands” (p 117-118) Brand orientation focuses on developing brands in a more active and deliberate manner, starting with the brand identity as a strategic platform It can be said that as a consequence of this orientation the brand becomes... 122) According to the brand orientation model, “the starting point for a process of brand building is to first create a clear understanding of the internal brand identity The brand then becomes a strategic platform that provides the framework for the satisfaction of customers’ wants and needs” (Urde 1999, p 129) The point of departure for a brand- oriented company is its brand mission Urde’s Brand Hexagon . market and reducing weight market Chapter 3 Building and developing Hydrotrim brand in Vietnam for the last period Chapter 4 Recommendations for developing Hydrotrim brand in Vietnam market. building and developing Hydrotrim brand since the launching in Vietnam market in June 2005. - 3 - It will only focus on Hydrotrim of Mega Lifesciences in big cities such as Hochiminh. of brand building and developing in the survival and development of a product. Secondly, this research will help us to study the building Hydrotrim brand in Vietnam for the last year and