Integrated marketing communications strategy for Nghi Son bag cement

TRNG I HC M TP. HCM UNIVERSITÉ LIBRE DE BRUXELLES HO CHI MINH CITY OPEN UNIVERSITY SOLVAY BRUSSELS SCHOOL MBAVB4 DO DUC PHUC INTEGRATED MARKETING COMMUNICAITONS STRATEGY FOR NGHI SON BAG CEMENT MASTER PROJECT MASTER IN BUSINESS ADMINISTRATION (PART-TIME) Advisor: Dr. NGUYEN HUU THAN Ho Chi Minh City (2011) i UNDERTAKINGS I certify that master project work titled “Integrated Marketing Communications Strategy for Nghi Son Bag Cement” is my own work. The work has not, in whole or in part, been presented elsewhere for assessment. Where material has been used from other sources, it has been properly acknowledged/ referred. Signature of student Do Duc Phuc ii ACKNOWLEDGEMENTS The completion of this thesis would have not been possible without the help of many people. I would like to express my sincere thanks to following persons who had great support me in difficult stages. Firstly, I would like to express my deepest gratitude to my advisor - Dr. Nguyen Huu Than for his precious support, guidance, share of experience and ceaseless encouragement during this thesis is executed. Secondly, my special gratitude is expressed to say my thank you to my company’s Directors and colleagues in Nghi Son Cement Company who gave me great support and help me in survey process. Specially, my thanks go to contractors who gave valuable time and assisted me in survey process. Last but not least, I am enormously grateful for my beloved parents, my wife for their boundless support and encouragement throughout my period of study. iv EXECUTIVE SUMMARY Nghi Son Cement Corporation is one of biggest cement manufacturers in Viet Nam. Currently, it holds highest market share in industrial cement segment (bulk cement) but it has low market share in bag cement segment (bag cement). The reason of low market share in bag cement segment has some causes. One of reasons is lack of marketing communications strategy. In 2012, Nghi Son Cement will launch up a new bag cement product, named Nghi Son Dan Dung cement, to replace gradually for old bag cement. Therefore, marketing communications should be established and put in a critical role that aims to build brand image, product image and quickly boost up for sales. An integrated marketing communications strategy needs criteria such as: awareness of audience’s media habits and preferences; understanding of audience’s knowledge and beliefs about the product; using coordinated media blend linked to a specific objective; coordinated message and image thrust. Basing on above criteria, this final project was conducted with purpose of building an efficient “Integrated Marketing Communications Strategy for Nghi Son Bag Cement”. This study goes through steps: reviewing literature, analyzing bag cement segment, analyzing opportunities and reviewing marketing communications activities, surveying target customers. In the scope of research, this study concentrates on two target consumers who are necessary to communicate: small and medium contractors and house- owners. Finally, this study recommends to raise messages to communicate with consumers: message about product relating “durability” or/and “fine/smooth wall”, message relating “available cement” for purchase convenience. And then, instruments of marketing communications could be executed in a synergic way to enhance the communications efficiently in condition of Nghi Son Cement Company: advertising, point-of –purchase, sales promotion, public relations and sponsorship, e-communications, personal selling and direct marketing. v TABLE OF CONTENTS UNDERTAKINGS i ACKNOWLEDGEMENTS ii THE ADVISOR’S COMMENTS iii EXECUTIVE SUMMARY iv TABLE OF CONTENTS v LIST OF FIGURES xi LIST OF TABLES xii LIST OF ABBREVIATIONS xiii INTRODUCTION 1 1. RATIONALE OF THE STUDY 1 2. PROBLEM STATEMENT AND OBJECTIVE OF THE STUDY 2 2.1 Problem statement 2 2.2. Objective of study 4 3. SCOPE AND LIMITATIONS 5 3.1 Scope of study 5 3.2 Limitations of study 6 4. RESEARCH METHOD 6 4.1 Secondary data 6 4.2 Primary data 6 5. STRUCTURE OF THE STUDY 7 CHAPTER 1: LITERATURE REVIEW OF INTEGRATED MARKETING COMMUNICATIONS STATEGY 8 1.1 CONCEPTS OF MARKETING AND MARKETING COMMUNICATIONS 8 1.1.1 Concepts of marketing 8 1.1.2 Marketing and instruments of marketing mix 8 1.1.3 Concepts of integrated marketing communications 10 1.1.4 Integrated marketing communications 11 vi 1.1.5 Benefits of integrated marketing communications 11 1.1.6 Integrated marketing communication and brand equity 12 1.2 TOOLS OF MARKETING COMMUNICATIONS MIX 12 1.2.1 Advertising 12 1.2.1.1 Definition of advertising 12 1.2.1.2 Roles and objectives of advertising in IMCs mix 13 1.2.1.3 Types of advertising 13 1.2.1.4 Advantages and disadvantages of some advertising types. 14 1.2.2 Sales promotion 15 1.2.2.1 Definition of sales promotion 15 1.2.2.2 Roles and objectives of sales promotion in IMCs mix 16 1.2.2.3 Tools of sales promotion 16 1.2.2.4 Advantages and disadvantages of sales promotion 16 1.2.3 Sponsorship 17 1.2.3.1 Definition of sponsorship 17 1.2.3.2 Roles and objectives of Sponsorship in IMCs mix 17 1.2.3.3 Types of sponsorship 18 1.2.3.4 Advantages and disadvantages of sponsorship 19 1.2.4 Public relations and publicity 20 1.2.4.1 Definition of Public relations and publicity 20 1.2.4.2 Roles and objectives of public relations and publicity 20 1.2.4.3 Tools and activities of public relations 21 1.2.4.4 Advantages and disadvantages of public relations 22 1.2.5 Direct marketing 22 1.2.5.1 Definition of direct marketing 22 1.2.5.2 Roles and objectives of direct marketing in IMCs mix 22 1.2.5.3 Tools of direct marketing 23 1.2.5.4 Advantages and disadvantages of direct marketing 24 1.2.6 E-communications 24 1.2.6.1 Definition of e-communications 24 vii 1.2.6.2 Roles and objectives of e-communications in the IMCs mix 24 1.2.6.3. Tools of e-communications 25 1.2.6.4 Advantages and disadvantages of e- communications 26 1.2.7 Personal selling 26 1.2.7.1 Definition of personal selling 26 1.2.7.2 Roles and objectives of personal selling in IMCs mix 27 1.2.7.3 Types of personal selling 27 1.2.7.4 Advantages and disadvantages of personal selling 27 1.2.8 Point – of – purchase communications 28 1.2.8.1 Definition of point-of-purchase communications 28 1.2.8.2 Objectives and roles of point-of- purchase communications 28 1.2.8.3 Tools of point-of-purchase communications 29 1.2.8.4 Advantages and disadvantage 29 1.2.9 Exhibitions and trade fairs 29 1.2.9.1 Definition 29 1.2.9.2 Roles and objectives of exhibitions and trade fairs 29 1.2.9.3 Types of exhibitions and trade fairs 30 1.2.9.4 Advantages and disadvantages of exhibitions and trade fairs 30 1.3 FACTORS IN SETTING THE MARKETING COMMUNICATIONS MIX 30 1.3.1 Push versus pull strategy 30 1.3.2 Product life- cycle stage 31 CHAPTER 2: INTRODUCTION TO CEMENT SECTOR AND NGHI SON CEMENT CORPORATION 33 2.1 INTRODUCE TO VIET NAM CEMENT INDUSTRY 33 2.1.1 Introduce to cement product 33 2.1.2 Introduce to Viet Nam cement industrial sector characteristics 33 2.2 INTRODUCE TO NGHI SON CEMENT COMPANY 35 2.2.1 Overview of Nghi Son Cement Company 35 2.2.2 Vision, mission 36 2.2.3 Business results of whole NSCC 36 viii 2.2.4 Introduce to the cement products of NSCC 37 2.2.4.1 Bulk cement of NSCC 37 2.2.4.2 Bag cement of NSCC 38 2.3 INTRODUCE TO NEW BAG CEMENT PRODUCT 39 CHAPTER 3: ANALYZING OPPORTUNITIES 41 3.1 CONSUMER ANALYSIS 41 3.1.1 Objects relating to bag cement consumption 41 3.1.2 Analyzing target consumers 42 3.2 COMPETITOR ANALYSIS 43 3.2.1 Analyzing product, price, place and brand name of NS and dominant competitors 43 3.2.2 Analyzing the marketing communications activities of NS and compet itors 45 3.3 MARKET ANALYSIS 47 3.3.1 Macro environment 47 3.3.2 Micro environment 47 3.4 MARKETING COMMUNICATIONS REVIEW OF NGHI SON BAG CEMENT 48 3.4.1 Life cycle of Nghi Son bag cement kinds 48 3.4.2 Business characteristic of Nghi Son bag cement 48 3.4.3 Budget proportion in each tool. 49 3.4.4 Advertising 49 3.4.5 Sales promotion 50 3.4.6 Sponsorship 50 3.4.7 Public relations and publicity 51 3.4.8 E-communications marketing 51 3.4.9 Point- of- purchase communications 51 3.4.10 Personal selling 51 3.5 SWOT ANALYSIS OF NGHI SON DAN DUNG CEMENT 52 3.6 ORGANIZATION DIAGRAM OF NSCC’S MARKETING DIVISION 53 CHAPTER 4: SURVEY OF NGHI SON BAG CEMENT 54 ix 4.1 TARGET CONSUMERS NEED TO BE SURVEYED. 54 4.2 INTRODUCTION TO RESEARCH PROCESS 54 4.3 FOCUS GROUP OF CONTRACTORS 55 4.3.1 Sampling 55 4.3.2 Questionnaires and data collection 55 4.3.3 Focus group’s result 55 4.3.4 Findings from focus group’s result 57 4.4 QUANTITATIVE STUDY 58 4.4.1 Sampling 58 4.4.2 Data collection and Questionnaires 59 4.4.3 Data analysis 59 4.4.5 Result analysis 59 4.4.5.1 Sample profile 59 4.4.5.2 Finding selected criteria in cement purchase process 59 4.4.5.3 Finding channel information impact on the awareness of consumers 61 CHAPTER 5: SOME SUGGESTIONS OF MARKETING COMMUNICATIONS STRATEGY FOR NGHI SON BAG CEMENT PRODUCT 563 5.1 BUILDING MESSAGE 63 5.1.1 Building message for product 63 5.1.2 Building message for communications program 64 5.2 BUILDING MARKETING COMMUNICATIONS STRATEGY 64 5.2.1 Advertising strategy 64 5.2.2 Point-of-purchase 66 5.2.3. Sales promotion 68 5.2.4. Public relations and sponsorship 69 5.2.5 E-communications 71 5.2.6 Personal selling and direct marketing 73 5.3 BUDGET ANALYZING 74 x CONCLUSIONS 64 REFERENCES 82 APPENDICES 83 APPENDIX 1 83 APPENDIX 2 84 APPENDIX 3 87 APPENDIX 4 89 APPENDIX 5 90 APPENDIX 6 90 [...]... 1: Review literature of integrated marketing communications strategy This chapter will review the marketing and integrated marketing communications strategy theory, instruments and factors affect to integrated marketing communications strategy Chapter 2: Introduction to Nghi Son Cement Company This chapter will introduce to PCB40 cement product, characteristics of Viet Nam cement industrial sector,... built some marketing programs to boost strongly Nghi Son bag cement In 2012, NSCC will launch new bag cement product for civil construction segment, named Nghi Son Dan Dung cement (NSDD) This bag cement type has high quality, and more suitable quality than existing product This step aims to penetrate deeper and expand wider in the market share of bag cement segment At currently, several marketing communications. .. NS cement product, cement volume pressure, and for success of new cement product, NSCC need an integrated marketing communications strategy to deliver its message through appropriate tools in marketing communications mix, increase the brand awareness, sales volume and gain a strong position in future 2.2 Objective of study The object of this study – Integrated Marketing Communications Strategy for Nghi. .. suggestions of integrated marketing communications strategy for Nghi Son bag cement product Base on the finding result, each appropriate marketing communications tool is formulated and combined together in suitable way to reinforce the effectiveness Conclusions and recommendations This chapter provides conclusions and recommendations of the study 7 CHAPTER 1: LITERATURE REVIEW OF INTEGRATED MARKETING COMMUNICATIONS. .. Communications Strategy for Nghi Son Bag Cement will identify consumer’s criteria to choose cement and information channel to support for their decision After that, this study will present an integrated marketing communications strategy for NSCC to increase the brand awareness and goodwill, to persuade consumer about the superior and stable quality of Nghi Son bag cement Ultimately, it aims to boost... cement, NSCC is lacking a consistent and synergic integrated marketing communications (IMCs) strategy toward to target customers who buy Nghi Son bag cement on the other hand, other competitors are performing professionally and getting huge results Besides, there is little survey mentioning about integrated marketing communications strategy for civil cement segment in Viet Nam Deriving from above necessaries,... cement image ………………………………………………………….39 Diagram 3.1: Structure of Marketing Division of NSCC…………………………… …53 xii LIST OF ABBREVIATIONS IMCs : Integrated Marketing Communications MCs : Marketing Communications MMC : Mitsubishi Material Corporation NS : Nghi Son NSCC : Nghi Son Cement Corporation NSDD : Nghi Son Dan Dung Cement PCB40 : Portland Cement Blended 40 PR : Public Relation P.O.P : Point-Of-Purchase... of Nghi Son bulk and current bag cement, new bag cement product for civil segment Chapter 3: Analyzing opportunities This chapter will analyze the opportunities for Dan Dung Cement in severe competition situation Besides, it will analyze consumer’s behavior, competitor, market and segment In the internal factor, this chapter will review marketing plan, analyze SWOT Chapter 4: Survey of Nghi Son bag cement. .. new integrated marketing communications strategy for cement bag product of NSCC To recommend management board for future marketing communications activities Research questions: with purpose of understanding consumer preferences and build the efficiently marketing communications for NSCC, the survey intends to approach and answer below questions: 4 How are consumer’s awareness and knowledge about cement. .. co-authors (1999), Principle Marketing, P111, Prentice Hall Europe De Pelsmacker, Geuens, and Van den Bergh (2010), Marketing Communications: a European Perspective, p4, Prentice Hall Europe 15 Pickson and Broderick( 2008), Integrated Marketing Communications, P.4, Prentice Hall Europe 14 10 Literature review of integrated marketing communications strategy 1.1.4 Integrated marketing communications Pelsmaker . of marketing communications strategy. In 2012, Nghi Son Cement will launch up a new bag cement product, named Nghi Son Dan Dung cement, to replace gradually for old bag cement. Therefore, marketing. some marketing programs to boost strongly Nghi Son bag cement. In 2012, NSCC will launch new bag cement product for civil construction segment, named Nghi Son Dan Dung cement (NSDD). This bag cement. of this study – Integrated Marketing Communications Strategy for Nghi Son Bag Cement will identify consumer’s criteria to choose cement and information channel to support for their decision.