The marketing plan to launch one of the ABBOTT maternal nutrition products New Similac Mum Advance EyeQ plu

HCM HO CHI MINH CITY OPEN UNIVERSITY UNIVERSITÉ LIBRE DE BRUXELLES SOLVAY BRUSSELS SCHOOL ECONOMICS & MANAGEMENT MMA6 Author: NGUYEN NGOC TRAM DO ANH TAI The Marketing Plan to launc

TRƯỜNG ĐẠI HỌC MỞ TP HCM

HO CHI MINH CITY OPEN UNIVERSITY

UNIVERSITÉ LIBRE DE BRUXELLES SOLVAY BRUSSELS SCHOOL ECONOMICS & MANAGEMENT

MMA6

Author: NGUYEN NGOC TRAM

DO ANH TAI

The Marketing Plan to launch one of the ABBOTT

maternal nutrition products:

MASTER PROJECT MASTER IN MARKETING & ADVERTISING

Tutor s Name SERGE BYWALSKI

Ho Chi Minh City

(2013)

COMMITMENTS & DISCLAIMERS

We, the undersigned, Nguyen Ngoc Tram and Do Anh Tai commit that we have executed this final project by ourselves based on the information collected either

This document is designed only for the academic purpose of the completion of our Master in Marketing and Advertising It is therefore not expected for any other commercial uses

In present this thesis in partial fulfillment of the requirement for the Master of Marketing and Advertising at the Solvay Business School Economics and Management, we agree that this material shall make it freely available for reference and study It is understood that copying or publication of this thesis for financial gain shall not be allowed

Post-TABLE OF CONTENTS

 COMMITMENTS & DISCLAIMERS 2

 ACKNOWLEDGEMENTS 3

 TABLE OF CONTENTS 4

 ABBREVIATIONS 6

 INTRODUCTION 7

CHAPTER I: ABOUT THE PRODUCT BRAND 11

1 Abbott Laboratories Global 11

2 Abbott Nutrition Vietnam 13

CHAPTER II: ABOUT THE MARKET & BRAND KEY MILESTONES 14

1 Market Situation 14

2 Competitive Landscape 15

3 Market Share 16

4 Brand Key Milestones 17

CHAPTER III: BRAND POSITIONING 18

 New Similac Mum Brand Key Attributes 18

1 Root Strengths 18

2 Competitive Environment 20

3 Target Group 20

4 Consumers Insight 20

5 Benefits 23

6 Driving Beliefs & Personality 23

7 Reasons To Believe 23

8 Discriminator 23

9 Brand Essence 23

 New Similac Mum Positioning Charts 24

1 Brand Awareness Positioning 24

2 Market Share Positioning 24

CHAPTER IV: COMMUNICATION CAMPAIGN 25

1 Communication Strategy 25

2 Interpreted Communication Architecture 26

3 Integrated Communication Execution 28

4 Budget & Timeline 34

CHAPTER V: COMMUNICATION CAMPAIGN EVALUATION 34

 REFERENCES 35

 APPENDIX 36

ABBREVIATIONS

CMR: Customer Relationship Management

CSR: Corporate Social Responsibility

FOS: Frebiotic Fiber

HCPs: Hospital-Clinic Practitioners

HTML: Hyper Text Markup Language

IOM: Institute of Medicine

KPI: Key Performance Indicator

LCD: Liquid Crystal Display

ME: Mother Education

OTS: Opportunity to See

PR: Public Relation

ROI: Return on Investment

SEC: Socio Economic Classification

SEM: Search Engine Marketing

SOM: Search Engine Optimization

TVC: Television Commercial

WOM: Words of Mouth

INTRODUCTION

The Importance of a Marketing Plan

These days, no business can afford to trade without a marketing plan This applies to all types

of businesses, large or small, online or bricks and mortar

A marketing strategy enables us to reach new audiences, raise awareness of our brand and sell our products or services (Internet, adaptiveconsultancy.com, Adaptive Consultancy 2013)

The Benefits of a Marketing Plan

There are several which include:

Stages of a Marketing Plan

A marketing plan consists of a series of stages which are reviewed at intervals These stages include:

Set a budget: cost is always a factor Many businesses avoid marketing due to the cost but

it is possible to market your business on a budget (Internet, adaptiveconsultancy.com, Adaptive Consultancy 2013)

The important of Advertising

Advertising is a favorable representation of product to make consumers, customers and general public aware of products It lets the potential buyers, general public and end users to

be aware and familiar with the brands and their goods and services (Internet, SimonCotter.com, important of advertising, 2009)

Advertising is a paid form of persuasive communication that uses mass and interactive media

to reach broad audiences in order to connect a brand with potential customers (the target audience) Advertising helps to identify a brand, provides information about the brand and persuades people to buy things (Professor Alain, Solvay-ULB Vietnam, 2012)

In a successful business, advertising play an essential and important role Though advertising does not mean selling of products and services but it helps in increasing the sales Advertising create awareness in people When general public be conscious to the products, services and goods under the brands and pursuit people towards brands and make them buying better brands

Advertising can be used to create brand awareness in general public and to make business more popular within the circle of potential buyers Advertising, in a straight line, increases profit of the companies by escalating its revenue The expenditure made on advertisement can turn as good boost in earnings (Internet, SimonCotter.com, important of advertising, 2009)

The Roles of Corporate Social Responsibility (CSR)

sustainable environmental friendly methods and participating actively in discussions about ethical social dilemmas (Löhman & Steinholz, 2003; Philipson, 2004) It is a discussion about how companies chooses to do business; solely with financial objectives or in a responsible way that might affect the financial return, but support other values

CSR is all about how a company chooses to run its business i.e in which way business is done A company with a serious CSR intention is likely to gain a competitive advantage, while

a company with a neglecting attitude might face overwhelming problems The discussion about CSR and communication of CSR shows that CSR should be an important part of a

brand management Communicating positive CSR is a way of strengthening a brand, while neglected or negative CSR news can lead to dramatic consequences

Communication Platforms

In marketing, there are different ways of formulating and creating a message that is intended for the receivers These messages are seen as an important part of communication and they may be divided in terms of so called communication platforms Kotler (2003) These five communication platforms are presented in the figure below

Advertising includes the traditional marketing communication tools; newspapers ads, television ads and symbols and logos are some examples (Kotler, 2003) Sales promotion refers to communication through events like fairs, exhibits, games, lotteries and demonstrations and to give away free samples and gifts Public relations and publicity is the platform that is not directly aiming to communicate to customers Examples of public relations are the annual reports from a company, participation in seminars and sponsorships and publications Personal selling is when a sales person from the company approaches potential customers through sales meetings and presentations Direct marketing means that

ADVERTISING

SALES PPROMOTION

PR & PUBLICITY PERSONAL SELLING

DIRECT MAKETING

Corporate communication platforms in terms of different channels and messages, each of these platforms is an important part of creating awareness of the business and the products among various stakeholders (inspiration from Kotler, 2003, 564)

the company contact potential customers through mail, e-mail, fax or telephone and offer the products in a direct, but non-personal, way

An alternative way of describing the different communication platforms is to talk about communication options (Keller, 2001) The division between the different options can be done in a similar way as in the model by Kotler, but the main point is that the sender of a message must make an active choice of which channel to use for communication

Understanding the possibilities and managing the risks of communication a company can create a strong brand (Keller, 2001; Kotler, 2003) The main idea of branding is that everything a company does communicate and that successful brand management will secure

(MSc) & Cecilia Mark-Herbert (Ass.Prof.), Swedish University of Agricultural Sciences, SLU) Based on the above theory and consultancy, we will apply for the below project:

The Marketing Plan for one of the ABBOT maternal nutrition products New Similac Mum-Advance EyeQ Plus (Low Fat Maternal Supplement with Fibre

(FOS) for Pregnant & Breastfeeding Mothers)

Primary objective: to increase products awareness

Secondary objective: to push sales (No.1 in value share)

New Similac Mum-Advance EyeQ Plus

CHAPTER I: ABOUT THE PRODUCT BRAND

1 Abbott Laboratories Global*

Abbott Laboratories is an American global pharmaceuticals and health care products company Founded by Chicago physician, Dr Wallace Calvin Abbott in 1888, today it has more than 83,000 employees, 7,000 scientists, 100 factories that operates in over 130 countries The company headquarters are in Abbott Park, North Chicago, Illinois In 2011, Abbott had nearly $35 billion in revenue In 2011, the company was ranked as Top 20 BioPharma employers by Science journal

Abbott has four core businesses All focused on science-based and advancing innovations that provide better options and outcomes for people in their pursuit of healthy lives

THE FOUR CORE BUSINESS

Diversity is a wonderful source of strength Abbott draws on its diversity of expertise, geographies and technologies to spur innovation that addresses important health needs at every stage of life and enables them to have enduring impact on the lives of millions of people across regions and cultures Abbott products portfolio covers:

THE PRODUCTS PORTFOLIO

VISION TECHNOLOGIES NUTRITION

ANIMAL HEALTH

Abbott works where people need it most With sales, research, manufacturing and distribution facilities located throughout 150 countries, Abbott combines the diver expertise with deep cultural insight to create products that meet local and regional health needs

We come from different fields, different continents, different generations but we are driven

by a single purpose: translating science into lasting contributions to health

THE COMMITMENT

A Promise for Life

reminding us why our work matters to the people we serve

THE CORE VALUES

SCIENCE

PREMIER

FOR LIFE CARING

CORE VALUES

*Abbott Laboratories Global Source: http://www.abbott.com/index.htm

COST-EFFECTIVE

2 Abbott Nutrition Vietnam*

Abbott Laboratories Vietnam operates in three divisions: Nutrition, Pharmaceuticals and Diagnostics in which the Nutrition is the strongest with its office established in Vietnam since

1995 with today around 150 employees

Abbott Nutrition Vietnam is a Vietnamese citizenship

Following all the values of the group and being a responsible corporate citizen involves more than health care innovation and outreach Good citizenship also extends to the way we run our business and conduct ourselves as individuals While our strategic priorities focus on the material impacts where our company can make the most unique and targeted contributions

to local society, we are equally focused on creating a culture of citizenship grounded in the foundational elements of sound business practice

ABBOTT VIETNAM NUTRITION PORFOLIO

Abbott Vietnam Nutrition has developed and presented to the local market its variety of products for Maternal, Child, Adult, and Healthcare supplement such as Ensure Gold, PediaSure BA, Similac IQ, Similac Gain IQ Plus, Gain IQ and Grow which became some of the most recognizable and reliable brands in Vietnam

NEW PRODUCTS LAUNCHED PIPELINES

continuous introducing innovative products to the market together with the efficient advertising & CSR communication investment

To be more competitive and developed, Abbot Vietnam will launch new products for Vietnam market and New Similac Mum-Advance EyeQ Plus (Low Fat Maternal Supplement with Fibre (FOS) for Pregnant & Breastfeeding Mothers) is obviously one of the strategic products aimed to increase market share in both volume and value

* Abbott Nutrition Vietnam Source: http://abbottnutrition.com.vn/

CHAPTER II: ABOUT THE MARKET & BRAND KEY MILESTONES

1 Market Situation

There are about 22 players classified into 3 main segments: Premium, Medium an Economy with their contributions as follows:

 Premium: 65% volume share / 79% value share

 Medium: 8% volume share / 8% value share

 Economy: 27% volume share / 13% value share

 Hanoi still is the focus market for Premium segment, while Medium and Economy dominates in HCMCC 4 cities (Danang, Hai Phong, Can Tho, Nha Trang) increase their channel contributions in all segments

 Key drivers for the success of brands are: Advertising, Ethical Promotions, Activations, Words of mouth (WOM)

 Key brands participating on the market as follows

• Top price tier of the market  high quality

• Belongs to trustworthy powdered milk manufacturers

• Believed to be imported from the US and Holland  known to be the best countries of producing powdered milk

• Perceived to contain more essential nutrients than other brands

• Owing some unique formulas/ BAIs

– Brain development BAIs (Choline, Taurine, Omegas, DHA, ARA, etc.) – Immune system intensification ingredients

– High fibres  good for digestion

• Delivers hottest benefits (such as brain development, immune system improvement, etc.)

• Low priced brands

• Belongs to local manufacturers / not imported  lower credibility

• Perceived to contain less nutrients  Just average quality (varied by kids,

Description of market products segmentations Source: Nielsen Qualitative Study Focus Group 2009

BRANDS SEGMENTS Main Marketing activities

Enfamama A Plus by Mead Johnson (Supper) Premium Media, Consumer Promotions, Hospital Samples, Mother Education

Similac Mom by Abbott (Supper) Premium Media, Sampling, Trade, ME

Friso Gold Mum by FrieslandCampina Premium Media, Sampling, Trade, ME

Anmum by Fonterra

Premium

Media, Sampling, Direct Sales

Dielac Mama by Vinamilk

Supports fetus brain development through 3 dimensions: maturation, protection and perfection

Brain development

91

Healthy mom, well developed baby

Friso Gold Mum

(Netherland)

Synbiotics (Probiotics BB-12® & L.casei 431® and Prebiotic FOS), Nucleotides, Selenium, DHA, AA&SA support mom's nutrition during pregnancy & give baby the good start for development later

Healthy mom, well developed baby

General, no highlight 32

Volume Share - Jan 2013

Mar'08 Apr'08 May'08 Jun'08 Jul'08 Aug'08 Sep'08 Oct'08 Nov'08 Dec'08 Jan'09 Feb'09 Mar'09 Apr'09 May'09 Jun'09 Jul'09 Aug'09 Sep'09 Volume Sales (Kg) 66,572 61,570 63,238 60,349 58,803 60,515 58,230 54,794 51,501 50,533 52,950 52,778 65,265 59,059 67,368 60,516 62,229 58,666 54,104

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

0 5 10 15 20 25 30 35 40 45

0 10,000

Volume Share - Sep 2009

ENFAMAMA A PLUS Mead Johnson

SIMILAC MOM Abbott

FRISO GOLD MUM FrieslandCampina ANMUM Fonterra Brands

DUMEX Dumex Mama Gold

DIELAC MAMA Vinamilk

Others

Source: Retail Audit AC Nielsen Feb 2013

 In 3 years, top 3 remains unchanged, however declined: Dielac Mam (-10%), Enfamama A Plus (-6%) and Similac Mom (-3%) Top 5 saw Dumex Mama left (-2%) and Friso Gold Mum joined (+9%)

 Super Premium contributions remain 51% in total but it seems 9% went to Friso Gold Mum who enjoyed the most healthy increase in all segments and the only one increased within the segment

 Premium witnessed the contradictory performances between Dumex Mama (-2%) and Anmum (+6%)

 Similac Mum earns highest Value/Volume rate at 1.3, Enfamama, Friso Gold Mum, Anmum: 1.2 while Dielac Mama has to tolerate at lowest: 0.5

4 Brand key milestones

 1997: Fomance Introduced in Vietnam to complement the growing business

 1999 to 2005:Full ethical promotions, consumer promotions, print ad

 2005: Changed brand name from Formance to Similac Mum “

franchise Similac Mum with TPAN for immunity (new news in Vietnam)

 2006: Full consumerization of the brand through the TVC, doubling the sales versus previous year

 2007: Surpassed internal sales target, and achieving # 3 rank from # 4, surpassed Anmum, winner of Abbott Global Best Practice

 2008: Surpassed Dielac Mama to be no.2 player in vol share

 2009: Revitalized label to be consistent with EyeQ range

 2011: Similac Mum EyeQ Plus launched with media campaign support TVC

 2013: New product launch: New Similac Mum-Advance EyeQ Plus

Top 5 Brands - Shared by Value & Volume

Jan 2013

Others

DIELAC MAMA Vinamilk

ANMUM Fonterra Brands

FRISO GOLD MUM FrieslandCampina SIMILAC MOM Abbott

ENFAMAMA A PLUS Mead Johnson

CHAPTER III: BRAND POSITIONING

 New Similac Mum Brand Key Attributes

1 Root Strengths: Product Features and Claims The most advanced and outstanding formula ever for mums

As a mother a woman wants the very best for her baby This desire is birthed the moment she begins to plan for her pregnancy She needs the strongest foundation that nutrition can provide to support her precious baby as he or she journeys from her womb to the world New Similac Mum-Advance EyeQ is a low-fat milk-based maternal supplement containing 24 essential vitamins and minerals, protein, DHA and a prebiotic (FOS) which is scientifically formulated to support the increased nutritional needs of pregnant and breastfeeding mums New Similac Mum-Advance EyeQ provides the most advanced and outstanding formula ever for mums with the most complete maternal supplement It has the most number of vitamins and minerals that meet US DRI for both pregnant and breastfeeding mothers

1/ ROOT STRENGTHS

2/ COMPETITIVE ENVIROMENT

3/ TARGET 4/ INSIGHT

9/ ESSENCE

Brand key model -Source: Internet-Author: Unknown

 MOST ADVANCED

DHA

• A fat naturally found in breast milk

Choline

• A Vitamin B naturally found in breast milk

• The USA Institute of Medicine (IOM) recommends higher choline intake during pregnancy and breastfeeding

Prebiotic (FOS) promotes the growth of good bacteria to help maintain a

healthy digestive system Dietary fibre aids the digestive system Selenium, Zinc and Vitamins C and E help to protect cells from free radicals that may have escaped the natural processes of our body system These ingredients are at optimal level to support healthy digestive system and build immune defenses Only maternal drink contains scFOS (a prebiotic fiber) helps improve bowel regularity , scientifically formulated supporting the increased nutrition needs without excess calories

 VITAMINS AND MINERALS

• Works synergistically with Vitamin D on bone metabolism to build strong bones

 LOWEST IN FAT: Supports appropriate weight gain and provides a host of valuable nutrients with

less fat to avoid weight exceed

 Work hard and well balance in take care of family and personal life

 Looking for the best thing for her child, will not settle for anything that is second best for her baby

 Open to new thing/ search for the new knowledge, seek the advice

of friends/relatives/doctors on the choice of what is good for

child before taking on advices

 Maternal milk is often regarded as a supplemental to ensure fetus development, on top of prenatal vitamins prescribed by her doctor

 Price is often a proxy for a product quality