Paddle pop marketing plan 2014

VU THI NGUYET QUE LO DANG MY VAN PADDLE POP MARKETING PLAN 2014 MASTER PROJECT MASTER IN MARKETING AND ADVERTISING Tutor’s name: HUYNH BA CHAN NHU Ho Chi Minh City (2014) TRNG I HC M TP. HCM UNIVERSITÉ LIBRE DE BRUXELLES HO CHI MINH CITY OPEN UNIVERSITY SOLVAY BRUSSELLS SCHOOL ECONOMICS & MANAGEMENT MMA7 3 COMMITMENT We, Vu Thi Nguyet Que and Lo Dang My Van, commit that this project has been accomplished by ourselves based on fact and figure collected from the public and Unilever Vietnam. This project is done for the completion of Master Marketing and Advertising MMA 7 course only and will not be used for other purposes. 4 ACKNOWLEDGEMENT We would like to express our special thanks to Professor Marianne Claes who has given us clear guideline at the beginning as well as timely support during the project. We would also like to thank Ms. Huynh Ba Chan Nhu, our tutor, who was very patient, willing and supportive in following up our project with practical advices and guidance. Our grateful thank is also extended to all of Professors of the course MMA7 whose lectures have built the foundation knowledge for us. In addition, we would like to express our appreciation to great support of Wall’s Vietnam marketing team as well as the encouragement of Class Administrator (Ms. Le Thi Ngoc Hien) and all members of MMA7 course. Last but not least, our deep gratitude is given to our beloved families, friends and colleagues, who have always inspired and motivated us during the course. 5 TABLE OF CONTENT Executive summary ………………………………………. …………………………7 I. BRAND OVERVIEW 1. About Unilever …………………………………………………………………8 2. About Wall’s ice cream ………………………………………………………8 3. Market situation analysis ……………………………………………………….9 3.1. Macro environment analysis …………………………………………… 9 3.2. Ice cream industry analysis ………………………………………………11 3.3. Competitors analysis ………… …………………………………………12 II. BRAND ANALYSIS 1. Business performance ………………………………………………………….15 2. Brand marketing activities in 2013 …………………………………………….16 3. 6 P’s Analysis 3.1 Proposition ………………………………………………………………17 3.2 Promotion…………………………………………………………………21 3.3 Place…… ……………………………………… …………………… 22 3.4 Packaging. ……………………………………………………………… 24 3.5 Price ……………………………………………….…………………… 25 3.6 Product… ….…………………………………………………………… 26 III. “PADDLE POP ADVENTURE FRAMEWORK” CAMPAIGN ANALYSIS 1. Campaign overview …………………………………………………………….29 2. 6P’s Deep Dive …………………………………………………………………30 2.1. Place …………………………………………………………………… 31 2.2. Promotion ……………………………………………………………… 32 IV. RECOMMENDATION 1. Place ……………………………………………………………………………35 2. Promotion ………………………………………………………………………36 REFERENCE………………………………………………………………………….39 APPENDIX APPENDIX A: STORY - DIAGRAM …………………………………………………41 APPENDIX B: PHOTOS ………………………………………………………………43 APPENDIX C: QUESTIONAIRE SAMPLE OF SURVEY ………………… ………47 6 GLOSSARY A&P advertising & promotion ATL above the line BCI brand communication idea BTL below the line CAGR compound annual growth rate CVS convenient store FMCG fast moving consuming goods JSC joint stock company KP kids places KS kids schools LS leisure parks MP moms & pops (street shops) POSM point of sales’ materials SMEs small medium entrepreneurs Tea RTD tea Ready to Drink TO turn over TVC television commercial 7 EXECUTIVE SUMMARY Amongst many food and beverage brands of Unilever Corporation – one of the biggest FMCG global corporations, Wall’s is one of the most popular brands worldwide. Established since 1922 in London, until now, Wall’s has going through a long-standing history with significant growth. Specifically in Vietnam, Walls appeared with huge investment since 1997 but then, due to constraint of market demand, Unilever decided to acquire the whole factory and know- how technology to Kinh Do Corporation in 2003. Until 2009, Wall’s came back with a lot of effort in innovation and execution to gain back the market share as well as build growth opportunity for the whole industry. According to Euromonitor report, Vietnam ice cream industry is really potential to invest with the expected volume CAGR growth will be up to 7% and value CAGR growth will be even higher with 10% at the end of 2017. The better standard living and changing in behavior of consumers from cheaper, poor quality to medium high and branded ice creams are also some main reasons that facilitate for the positive growth of this industry. However, along with the attractive of market, surely the competitiveness will be also very harsh with strong players that Wall’s has to face such as Kinh Do, Trang Tien, Thuy Ta and some imported brands like Baskin Robins, Swensen’s and Hagen Dazz. Within the scope of this Thesis, Wall’s health will be analyzed under the model 6P’s of Unilever with 6 levers as Price, Product, Proposition, Pack, Place and Promotion to give the brand overview. Then, Paddle Pop – the biggest contributor in TO of Wall’s – with its main campaign “Adventure Framework” will be chosen to analyze deeper. Continue to follow the 6P’s Model but in the deeper layer as 6P’s Detective Worksheet, the surface issue “weak proposition towards consumers’ minds” will be investigated into each P lever and then define the root cause. According to this exercise, Place and Promotion are picked up to dig dive and based on that to offer some relative recommendations that Wall’s can apply to improve Paddle Pop marketing activities next year. Specifically, the recommendation of Place will be focused on howto strengthen its visibility in street shops and increase availability in modern trade. Meanwhile, the recommendation of Promotion will be allocate the A&P split to be more appropriate and effective, pilot the testimonial communication approach to promote innovative products and change the way to implement the promotion burst currently. 8 I. BRAND OVERVIEW 1. About Unilever: Unilever is an Anglo – Dutch multinational consumer goods company founded in 1930 producing food, home care and personal care products. It is the world’s largest consumer goods company and the world’s largest manufacturer of ice cream. Unilever has operations in over 100 countries and owing 400 brands with 25 of its largest brands accounting for over 70% of total sales. The company structure is dual listed company based in Rotterdam, Netherland and London UK which have the same directors but operates as a single business. Unilever started its operation in Vietnam since 1995 with total investment up to date is USD 300 million, specializing in Home and Personal Care brands, Oral Care products, Foods and Tea-based Beverages. Unilever Vietnam is currently operating a factory in Cu Chi while maintaining contract manufacturing relationship with various local SMEs. Many of Unilever Vietnam’s brands have become #1 household brands in Vietnam, including Omo, Sunlight, Dove, Sunsilk, Clear, Lux, Close-up, Lipton, Knorr, Viso, Vaseline, P/S and Surf. 2. About Wall’s ice cream: In 1922, Thomas Walls & Sons, originally a sausage company, began making ice cream in London, same year the company was acquired by Lever brothers. Today Wall’s is part of Unilever’s ‘Heartbrand’, sold in more than forty countries. Each country has its own brand name but the heart logo is universal. 9 Wall’s ice cream entered Vietnam market since 1997 and Wall’s was the first brand had heavy investment in production and professional branding activities in local ice cream market. After 6 years, Wall’s has become a strong brand with 20% - 30% growth per annum, 50% market share and built up a wide distribution network with 115 distributors and 4000 cabinets in main cities. However, the result was not as Unilever expectation due to low income of consumers while the price of Wall’s ice cream was at premium level. As a consequence, in 2003, Unilever sold the entire production facilities and technology of Wall’s to Kinh Do, a big local confectionery producer and the product name was changed to Kido ice cream. During 2003 to 2004, Kinh Do ran campaigns with both Wall’s and Kido’s logos to gradually converted consumers awareness to new brand. In 2005, Kido was the dominant player in ice cream market. Since 2006, Metro Cash & Carry imported Wall’s from Thailand and distributed through their channels as other commodities. Until August 2009, Unilever has stepped up the investment in Wall’s ice cream in Vietnam through import from Thailand when positive growth has been foreseen in local ice cream market. With belief that people need small moment of pleasure in lives, Wall’s ice cream has the vision to create 100 million smiles every day by bringing joy and happiness to every home in Vietnam. 3. Market Situation Analysis: 3.1 Macro Environment Analysis: 3.1.1 Political: Recently, Vietnam has good opportunity to develop its export market when going to sign some Free Trade Agreements such as TPP (Trans-Pacific Strategic Economic Partnership Agreement) or European Agreements. In vice versa, Vietnam also has to open to welcome more world-class brands into the domestic market which specifically belongs to Food & Refreshment industry can be named as Burger King, Mc Donald’s, Popeye, Subway, Hagen Dazz, Baskin Robins, Diary Queen and so on. 3.1.2 Economic: Based on Vietnam Food & Drink Report (BMI, 2013), in 2013, per capita food consumption growth is 6.4% and forecast to 2017, the compound annual growth rate (CAGR) will be 8.39%. The healthy increase in food expenditure is a good signal for Food & Drink business to invest more strongly. 10 Source: General Statistics Office of Vietnam, BMI, 2013 3.1.3 Social: According to the research of US Department of Agriculture in their Retails Food Report 2013 , in recent years, Vietnam is witnessing some new trends in society that are: - More consumers have western-minded, especially the large number of youngsters who live in urban areas. - More middle-class families which parents are busy with working and do not have much time for food shopping - Modern retailers (super markets, hyper markets, convenient stores) offer the wider range of product from low tier to premium that can attract even low income consumers. - More women join the workforce and therefore, disposable family income also increase that will be spent for higher-value food products - More concern about and willingness to pay for nutrition, quality, hygiene, and food safety. - More loyal to brands but also willing to discover new products - Shop for food in both modern retailers (weekly) and traditional markers (daily). 0 50 100 150 200 250 300 0 5 10 15 20 25 30 Food Consumption 2010 - 2017 Food consumption (Eur bn) Per capitafood consumption (Eur) 11 3.1.4 Technology: Though government has focused to build, agriculture sector is still blamed to be too slow to adapt new technology that is globally competitive in the long term. However, thanks to the penetration of world-class food & refreshment brands, the know-how technology is also coming to Vietnam and expected to be the motive for agriculture sector to push its technology development. 3.1.5 Legal: Owing to some scandals related to Food Hygiene in previous years, since 2013, Ministry of Health started to tighten the regulatory, especially in the additive products, dietary supplements and food advertisement in general. This authority’s movement causes a considerable difficulty for food & refreshment businesses when making decision to import or produce new products that might face low chance to be censored or promoted later on. 3.2 Ice-cream Industry Analysis: 3.2.1 Market analysis: Ice cream market is regarded as a Blue Ocean which is very potential to grow but quite not harsh competitive yet. In 2012, Euromonitor International informed that the market sees the 6% growth in volume and 19% growth in value to achieve 72 million Euro equals to 2 thousand tons ice cream. Similar to total food market trend, the improvement in economic situation and disposable income create the growing demand for ice cream in both impulse and take-home. Up to 2017 (5 years forecast period), ice cream category in Vietnam is supposed to grow 7% in volume CAGR and 10% in constant value CAGR to reach 113 million Euro or equivalent to 32.5 thousand tons. [...]... Proposition Paddle Pop - proposition than competitor, Merino of Kido Understanding the insight of kids who love to play and explore the world with limitless imagination, Paddle Pop is formulated as the ice cream for fun and play so its icon, Paddle Pop Lion is designed as a friend to bring kids to a mysterious and magical world Paddle Pop Lion and adventure have been the heart of Paddle Pop ice cream... Product assortment: 5 Paddle Pop, 2 Cornetto, 1 Taro and 2 - Product display: Paddle Pop is in center position, within the reach of kids - Cabinet display: cabinet in center position/ main entrance/ front position Attach price tag, product map, new product poster - POSM: Paddle Pop standee/ poster/ promotional ice cream, signboard, flyer, umbrella - Product assortment: 2 Paddle Pop, 3 Cornetto, 1 Taro,... Vietnam, Paddle Pop is always necessary to deep dive into Paddle Pop to review and get out learning for improvement Hence, this thesis will be served to focus on the main campaign of Paddle Pop in last 3 Wall's Vietnam TO Contribution 2010-2012 120% 100% 80% 60% 3% 1% 27% 27% 16% 17% 26% 26% 8% 31% Fruittare Across Age 40% 12% 16% 20% 33% 29% 28% 2010 2011 YTD Jul '12 Cornetto Take Home Paddle Pop 0%... or influencing them Cartoon Packaging POSM Game TVC In order to differentiate from Paddle Pop after the acquisition, Kido created Merino Cutie in advertising, POSM and packaging However, according to the survey, Paddle Pop has stronger position in customer mind about ice cream for kids and Paddle Pop Lion becomes more popular than Merino cutie bear 19 TVC Packaging POSM Cornetto vs Celano For teen... and build the category consistently and continually to promote in marketing activities Jan Campaign Paddle Pop MOO Feb Mar Cornetto VALENTINE Apr Cornetto MINI May Jun Paddle Pop SUMMER Jul Aug Sep Oct Nov Dec Paddle Pop YEAR END Paddle Pop BTL Activity Cost Total Cost Product Inno -TVC Activation -TVC -POSM Type ATL Activity Cost -PR (digital + print) -POSM -Event DINO Product Inno -TVC -POSM Promotion... (messy image, limited space, low brand awareness of shop owners) into consideration, we recommend that d the presence of Paddle Pop in modern trade besides strengthening its visibility in street shops In modern trade, the assortment of Paddle Pop should be more diverse with Paddle Pop box for mom consumers to take home more focus on cost efficiency by close monitoring execution at shop to protect brand... street shop is an effective distribution and promotion channel for Paddle Pop However, regardless of proper strategy, the loosen monitoring in execution stage that has left certain impact to the visibility, accessibility and availability of product and brand is the case of Paddle Pop According to the result of trade visit on Jan 24, 2014 at 20 street shops in District 2, Hochiminh City, the following... event to show their love 20 POSM TVC Digital marketing Event If Cornetto is perceived more relevant to couple, love and connection, Celano is is conveyed with the image of hot boys, hot girls in all advertising POSM TVC Digital marketing 21 Taking all parameters i 3.2 Promotion: to now, all marketing activities are used to promote sub brand (either Paddle Pop or Cornetto) rather than promote mother... Turn Over 2 Brand Marketing Activities in 2013: and 1 activation with total Advertising & Promotion expenditure was 2,2 mil Euro which round 25% of FMCG market, this is quite a much higher number but in fact, when translating back to absolute grow business further, gain share and build the category consistently and continually to promote in marketing activities Jan Campaign Paddle Pop MOO Feb Mar Cornetto... prevented consumers to access to new product information or promotion campaign (Appendix 9) 2.2 Promotion: A&P budget last 2013 of Paddle Pop was 1,757 thousand Euros which accounts 80% of very healthy at the moment compared to FMCG norm around 60:40 Communication of Paddle Pop focused equally between Thematic message to introduce new product innovation as well as Promotion message to announce the theme . QUE LO DANG MY VAN PADDLE POP MARKETING PLAN 2014 MASTER PROJECT MASTER IN MARKETING AND ADVERTISING Tutor’s name: HUYNH BA CHAN NHU Ho Chi Minh City (2014) TRNG I HC. promote in marketing activities. Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Campaign Paddle Pop MOO Cornetto VALENTINE Cornetto MINI Paddle Pop DINO Paddle Pop SUMMER. imagination, Paddle Pop is formulated as the ice cream for fun and play so its icon, Paddle Pop Lion is designed as a friend to bring kids to a mysterious and magical world. Paddle Pop Lion and