TRƯỜNG ĐẠI HỌC MỞ TP.HCM HO CHI MINH CITY OPEN UNIVERSITY UNIVERSITÉ LIBRE DE BRUXELLES SOLVAY BRUSSELS SCHOOL ECONOMICS & MANAGEMENT MMA6 MAI TRUNG TANH VU NGOC YEN BUILDING DUMEX MAMA GOLD’S BRAND COMMUNICATION STRATEGY FOR THE NEXT 3 YEARS (2013-2015) MASTER PROJECT MASTER IN MARKETING AND ADVERTISING Ho Chi Minh City (2013) TRƯỜNG ĐẠI HỌC MỞ TP.HCM HO CHI MINH CITY OPEN UNIVERSITY UNIVERSITÉ LIBRE DE BRUXELLES SOLVAY BRUSSELS SCHOOL ECONOMICS & MANAGEMENT MMA6 MAI TRUNG TANH VU NGOC YEN BUILDING DUMEX MAMA GOLD’S BRAND COMMUNICATION STRATEGY FOR THE NEXT 3 YEARS (2013-2015) MASTER PROJECT MASTER IN MARKETING AND ADVERTISING Tutor’s Name: ALAIN VAN DEN EYNDE Ho Chi Minh City (2013) i ACKNOWLEDGEMENTS First and foremost, we would like to express deeply gratitude to our major professor, Prof. ALAIN VAN DEN EYNDE, who provided us valuable guidance, comments and also approval on this thesis. We also would like to express appreciation to Mr. Serge Bywalski for his initial advices and guideline of structure of the thesis. We sincerely thank to the Marketing department of Danone Vietnam for their support information, encouragement on this paper. Lastly, we would like to give a special thank to our family, our friends, our colleagues, and staffs of the post graduated Department of the Ho Chi Minh Open University, who give us helps, supports to fulfill this project. March, 2013 Mai Trung Tanh Vu Ngoc Yen ii PREFACE In Vietnam, milk industry is one of industries that still having large potential. In that industry, the products are not only for children but also for elder. Pregnancy women are one of key customer that needs milk during pregnancy period. Dumex Mama is the brand focus on the above segment. Although much investment in Vietnam for marketing and developing market, the sales volume result is still far from the main competitors. On the other hand, brand awareness is also low. This is the reason why we write the thesis “Building Dumex Mama Bold’s brand communication strategy for the next 3 years (2013-2015)” in order to gain more awareness and relevant result. Communication strategy is developed base on Vietnam milk market analysis and current activities of Dumex Mama. iii BUILDING DUMEX MAMA GOLD’S BRAND COMMUNICATION STRATERGY FOR THE NEXT 3 YEARS (2013-2015) Vu Ngoc Yen and Mai Trung Tanh wrote this case under the supervision of tutor’s Serge Bywalski and Alain Van Den Eynde to provide the material for final project of the Master class. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. Our school prohibits any form of reproduction, storage, or transmittal without its written permission. To order copies or request permission to reproduce materials, contact with the author. Copyright © 2013 by Vu Ngoc Yen and Mai Trung Tanh. “The objective was as simple as it was ambitious: to build a food company which could rival with the greatest multinationals by bringing together Danone’s products and brand and the industrial know-how and financial strength of BSN. The creation of BSN GERVAIS DANONE was the consecration of my life’s work. Antoine became President of the new company while Jacques Corbière (who up to that point had been President of Gervais) and I became Vice- Presidents. Thirty years after the fusion, I can safely say that all my wishes have been fulfilled. Not only has Danone managed to become an international brand but its formidable growth has been achieved without sacrificing the human and professional values which, since its very creation, have been at the heart of our group’s identity.” From a conversation with Daniel Carasso, recorded in 2003. iv TABLE OF CONTENT LIST OF SYMBOLS AND ABBREVIATIONS v LIST OF FIGURES v LIST OF TABLES vi LIST OF PICTURES vi CHAPTER 1: DISCRIPTION OF THE CASE 1 1.1 About Vietnam milk industry 1 1.2 About Danone Dumex 2 1.2.1 Overview 2 1.2.2 Product line 2 1.3 About competitor 5 1.4 Objective of the thesis 7 CHAPTER 2: ANALYSIS THE CASE 8 2.1 SWOT analysis 8 2.2 Competitor Analysis 11 CHAPTER 3: COMMUNICATION PLAN 16 3.1 Target customers 16 3.2 Customers insight: 17 3.3 Objectives 17 3.4 Communication Strategy 18 3.5 Timing, budget and evaluation 26 REFERENCES 30 v LIST OF SYMBOLS AND ABBREVIATIONS FY: Financial Year IMC: Integrated Marketing Communications OTS: Opportunity To See ROI: Return On Investment SEO: Search Engine Optimizer TVC: Television Commercial WOM: Word of Mouth LIST OF FIGURES Figure 1.1: Sales by Product line 3 Figure 1.2: Volume share of Mama milk in 2009 6 Figure 1.3: Volume share of Mama milk industry 2012 7 Figure 3.1: Customers insight 17 Figure 3.2: Integrated Marketing Communication 2013-2015 20 Figure 3.3: Direct Marketing Channels 25 vi LIST OF TABLES Table 2.1: Compare between milk companies 13 Table 2.2: Compare activities on market between milk companies 13 Table 3.1: Details of Mama class, Workshop and Health Consulting 22 Table 3.2: Plan sales and budget from 2013-2015 LIST OF PICTURES Picture 1.1: Image of Mama GOLD old tin and new with precinutri formula 4 Picture 1.2: Image of Dulac GOLD 1 old tin 4 Picture 2.1: Brand and Customer Ecosystem 15 Picture 3.1: Dumex Mama’s product information 19 Picture 3.2: Illustrate for Dumex Mom Club 24 1 CHAPTER 1: DISCRIPTION OF THE CASE 1.1 About Vietnam milk industry The population of Vietnam is approximately 90 million people and the economy of Vietnam is in developing stage, thus the living standard of Vietnamese is going up through one decade. The GDP of 2010 was US$ 100.5 billion. Vietnam’s GDP growth was 5.3 percent in 2010 and this is expected for the next few years. Consumer spending on food and beverages is growing up. Therefore, milk and other dairy products become common in the Vietnamese life, if before 90s we had only one or two companies produce and distribute milk, mostly is powder milk and condensed milk, nowadays, milk market have around 20 domestic producing company and a lot of foreign companies distribute milk in this potential market. During the last few years the milk industry has rapidly increased, due to high local demand for milk products in consumption and the new policy on the milk industry development from Government of Vietnam. Milk consumption in Vietnam will grow between 12% and 15% by 2015 according to Vietnamese Information Center for Agriculture and Rural Development (Agroinfo). The consumption in 2010 is 14,6 litres of liquid milk per person annually. In comparison, China consumed 23 litres of milk in 2010 and in Finland over 180 litres in 2010 with four main products, namely: Powder milk: the upper range of the powder milk market is still the most profitable one and also the market is showing the fastest growth. Liquid milk: is growing very fast with more than 55% dominated by Vinamilk. Condensed milk: is still representing a significant share of the whole market and does not grow much and is today dominated by the Vietnam dairy market leaders, Vinamilk and Dutch Lady. Yogurt: is growing and currently dominated by Vinamilk with new competition from new entrants such as Kido. Milk production in Vietnam has rapidly increased, however the requirements for domestic consumption has increased even faster, so milk production in our country do not meet short of the local market demand. So an increasing demand for milk and growing population requires the country to examine its milk industry. Even the speed is growing fast, but the history of milk production in Vietnam still young and lack of experience when compare with other countries in South East Asia. Therefore, the Vietnam milk industry has many limitations; e.g. Lacking technical staff, lack of suitable tropical grasses, and lack of some service for animal… However, belong to the Agroinfo, the milk using rate in Vietnam is growing very fast, the first is the powder milk with the average rate is 28.9% from 0.07kg / person (1997) up to 4kg / person (2009) and diet milk with the 20% average rate. 2 1.2 About Danone Dumex 1.2.1 Overview Danone Dumex is a part of the international Groupe Danone. Danone Dumex manufactures infants’ and children’s nutrition products and its state – of – art Nilai plant, and these products are then distributed in Malaysia and Singapore with exports to twenty countries in Asia, Middle East and Europe. Its products span the maternal and growing up milk categories, and are sold mainly in south-east Asia and China. Danone Dumex has been a household brand in South-East Asia since the 1940s. It entered the China market in the late 1990s. Nowadays, Danone Dumex is fast becoming a choice for infants and children’s nutrition in the South-east Asia countries with the highly recommended product by medical professional. Today, Danone Dumex and its related brands are represented in most of the Asian region. Therefore, Danone Dumex is the market leader and ranked number one in overall customer satisfaction in a study conducted among medical professionals and retail trade by AC Nielsen. In 2007 in Vietnam, the officically office of Groupe Danone is opened at Ho Chi Minh City, and until the 2009 with the government policy to help foreign company, the Danone Vietnam is founded. Danone have Dumex brands which is one of the top milk brand in market. Dumex is the fastest growing infant formula brand in the past few years. Dumex just have been in Vietnam for the few years, but from the beginning until now it always become the top of milk product with highly recommended by the doctor from the nutrition hospital. Vietnam dairy products market still young, therefore Dumex have a big part of the milk market cake. 1.2.2 Product line Danone operates in four main sectors, including Fresh Dairy Products, Waters, Baby Nutrition and Medical Nutrition (see the figure 1 for Danone’s sales by product line in 2009). Danone is the world’s leading producer in volume of Fresh Dairy Products, selling a total of 5.1 million tons in 2009. The division of Fresh Dairy Products has a global market share of some 27%, accounts for about 60% of the group’s sales and posted growth of 4.6% in volumes in 2009. In 2009, the Fresh Dairy Products division posted sales turnover amounting to EUR 8.6 billion. [...]... 60,515 58, 230 54,794 51,501 50, 533 52,950 52,778 65,265 59,059 67 ,36 8 60,516 62,229 58,666 54,104 Similac Mom 21.7 23. 3 24.1 24.1 23. 1 22.5 24.5 23. 9 22.4 17.8 15 .3 17 26.1 23. 5 24.1 21.5 22.2 21.5 19.9 Enfamama A+ 37 .6 34 .1 33 .9 36 .3 37.4 36 .4 34 .6 32 .4 38 .7 37 .3 39.9 40 33 .9 33 33 .9 32 .7 32 .3 27.5 28.8 Frisomum 2.5 2 4.1 3. 2 4 4 .3 3.1 3. 5 3. 1 3. 4 3. 9 3. 8 2.5 2 .3 1.7 2 .3 2.2 1.7 2.2 Anmum 4 .3 6.6 5.8... 4.8 6.4 5.9 5 .3 5 .3 7 .3 5.1 5.4 6.7 5.7 5.7 6.6 4.9 6.1 6 .3 Dumex mama Gold 3. 1 3 4.5 3. 5 4 .3 4.1 3. 7 4 3. 3 3. 5 3. 6 3. 1 4.5 4.8 4.2 6.2 6 .3 7.1 5.4 Dielac mama 24.5 25.8 20.8 20.1 18.7 19 22.2 26.4 22 .3 25.2 28.4 26.5 22 26.2 26.6 26.8 28.8 32 .6 34 .1 Volume Sales (Kg) Figure 1.2: Volume share of Mama milk in 2009 (Source: Retail audit AC Nielsen, 2009) 0 7 Value share - Dec 2012 ENFAMAMA A PLUS Mead... Age: 25 – 35 years old Geography: urban Customer class: A and B < 25 years old 25 - 35 years old in urban > 35 years old Primary: Mother to be: o They love their children o They pay attention on health conscious o They wants to prepare the best for the new born Want to give their child enough nutritious to growth healthily Want their children to be smart o They continuously searching for information... + Dumex Mama gold: is the high class - fomula milk for pregnant and lactation with low fat content and attractive taste Because of the pregnant and lactation is very important for both children health and the mother, hence, the mother need to have a balance and good regime The Dumex Mama Gold has the immunoforce, DHA, Folate, Calcium and low fat ingredients For all of these ingredients will help the. .. also have the advantage of being produce in Vietnam, less transport, therefore, the price is much cheaper Leveraging on the preference of using foreign products, the report also warns the consumers of the risk of coming across fake products branding foreigner famous brand The report ends with the call to use domestic produce milk 11 2.2 Competitor Analysis We can compare Dumex Mama with other competitor... 12% DIELAC MAMA Vinamilk 12% 23% DUMEX MAMA GOLD Danone Others Figure 1 .3: Value share of Mama milk industry 2012 (Source: Danone Marketing Department, 2012) 1.4 Objective of the thesis Dumex Vietnam with the mission and vision is “bring the good health for every people by the good food and milk” Company is researching and developing the new products which suit the Vietnamese environments and the Vietnam... parts of the body Low in Fat: Prevent from obesity - Timeline: January 1st 20 13- December 31 st 2015 19 Picture 3. 1: Dumex Mama s product information (Source: www.dumexmamavietnam.com) 20 3. 4 Campaign Activities Objective: To increase awareness of Danone and Dumex Mama brand To raise credential on Dumex Mama To increase favorability toward the products PR campaign Advertising Dume Mama Gold... Danone is reported to be the leading brands in Europe and Asisa In FY 2011, Danone was the global leader in fresh dairy products capturing 21% of the market shares The group is also the second largest in baby nutrition globally, and the largest in Europe in FY 2011 With the preference for foreign products, it is very favorable for Danone to capture the market if the awareness for their product is widely... beginning of 20 13, Danone launched new version of Dumex Mama Gold with precinutri formula in new package image 4 Picture 1.1: Image of Mama GOLD old tin and new with precinutri formula (Source: www.dumexmamavietnam.com) + Dulac Gold 1: this product for the baby from 0 to 6th month This is the health food to help baby add up the nutrition, good growing up and to strengthen immune systems for them Dulac... nourishment for pregnant and lactating mothers' Sales promotion Direct marketing Figure 3. 2: Integrated Marketing Communication 20 13 - 2015 21 Story angle: Food for pregnancy period: during pregnancy period, it is essential that the woman receives enough nutrition to feed herself and the baby Therefore, these are the list of things that will help giving the nutrition to your fetus Also, consuming Dumex Mama . 24.5 23. 9 22.4 17.8 15 .3 17 26.1 23. 5 24.1 21.5 22.2 21.5 19.9 Enfamama A+ 37 .6 34 .1 33 .9 36 .3 37 .4 36 .4 34 .6 32 .4 38 .7 37 .3 39 .9 40 33 .9 33 33 .9 32 .7 32 .3 27.5. 4.1 3. 2 4 4 .3 3. 1 3. 5 3. 1 3. 4 3. 9 3. 8 2.5 2 .3 1.7 2 .3 2.2 1.7 2.2 Anmum 4 .3 6.6 5.8 6 4.8 6.4 5.9 5 .3 5 .3 7 .3 5.1 5.4 6.7 5.7 5.7 6.6 4.9 6.1 6 .3 Dumex mama. BUILDING DUMEX MAMA GOLD’S BRAND COMMUNICATION STRATEGY FOR THE NEXT 3 YEARS (20 13- 2015) MASTER PROJECT MASTER IN MARKETING AND ADVERTISING Ho Chi Minh City (20 13)