Promotional strategy for Queencare of Global Nutri Co

! ! ! ! ACKNOWLEDGEMENT OF COMMITMENT I attest that this final project for the Vietnam-Belgium MBA program studying the case of Queencare product, a functional food product of Global Nutri Co., is my original work. All data and information in this project are true and collected from sources of the company, customer survey and other official sources. Nguyen Thi Khanh Giang ! ! ! ! ACKNOWLEDGE Firstly, I would like to express my sincere thanks to my supervisor Dr. Nguyen Van Ngai, who has supported, guided and encouraged me a great deal to complete this final project. Secondly, I am enormously grateful for - Mr. Pham Thanh Nghi who has sponsored me to attend this MBA program, and I’d like to say thanks to all of my family, colleagues, and friends who have always assisted me during this program. Finally, I highly appreciate the Vietnam - Belgium MBA program, as well as board of coordinators of this program who contributes greatly to my learning progress. ! ! ! ! TUTOR’S COMMENTS I am writing to confirm that the project named PROMOTIONAL STRATEGY FOR QUEENCARE OF GLOBAL NUTRI CO, written by Nguyen Thi Khanh Giang, has valued in reality and satisfied the requirement of the Master project for MBA Program. I agree the candidate Nguyen Thi Khanh Giang to present the project in the defense jury. March, 1 st 2011 Tutor Dr. Nguyen Van Ngai ∀! ! ! ! ABSTRACT This final project proposes building an effective promotional strategy for Queencare product, a kind of functional food of Global Nutri Co. through promotional tools and customer’s interest. In the context of the very promising market and the development potential of functional foods, a new product like Queencare and its message need to be informative and delivered to customer broadly. It is the reason why the writer has implemented this study. In this study, the writer provides an overview of Vietnamese economics, functional foods and customer perception about functional foods which have been present in Vietnam since 2000. In addition, the study also reviews the current marketing program of Global Nutri Co. in general and promotional program in particular through customer surveys in order to build a new promotional strategy for Queencare. ∀! ! ! ! TABLE OF CONTENTS CHAPTER 1 – INTRODUCTION ………………………………………………………………………………………………. 1 1.1 Problem Statement …………………………………………………………………………………………………………………………… 1 1.2 Research Objectives and Research Questions………………………………………………………………………… 2 1.2.1 Research Objectives…………………………………………………………………………………………………………………… 2 1.2.2 Research Questions…………………………………………………………………………………………………………………… 2 1.3 Scope and Limitations……………………………………………………………………………………………………………………… 2 1.3.1 Scope of Study……………………………………………………………………………………………………………………………… 2 1.3.2 Limitations of Study…………………………………………………………………………………………………………………… 3 1.4 Study Methodology and Data Source………………………………………………………………………………………… 3 1.4.1 Methodology………………………………………………………………………………………………………………………………… 3 1.4.2 Data Sources………………………………………………………………………………………………………………………………… 4 1.5 Structure of Study……………………………………………………………………………………………………………………………… 4 CHAPTER 2 - THEORETICAL FRAMEWORK ………………………………… …………………………. 6 2.1 Marketing Concepts…………………………………………………………………………………………………………………………… 6 2.2 Marketing Mix……………………………………………………………………………………………………………………………………… 6 2.3 Theory of Integrated Marketing Communication ………………………………………………………………… 7 2.4 Promotional Strategy………………………………………………………………………………………………………………………… 8 2.4.1 Definitions………………………………………………………………………………………………………………………………………… 8 2.4.2 Push versus Pull Strategy …………………………………………………………………………………………………………… 8 2.5 Promotion Mix……………………………………………………………………………………………………………………………………… 9 2.5.1 Advertising ……………………………………………………………………………………………………………………………………… 10 2.5.1.1 Advantages and disadvantages of advertising ………………………………………………………………… 11 2.5.1.2 Types of advertising ………………………………………………………………………………………………………………… 11 ∀ ! ! ! ! 2.5.2 Direct Marketing …………………………………………………………………………………………………………………………… 13 2.5.2.1 Advantages and Disadvantages of Direct Marketing ………………………………………………… 13 2.5.2.2 Channels of Direct Marketing ……………………………………………………………………………………………… 14 2.5.3 Interactive / Internet Marketing ……………………………………………………………………………………………… 15 2.5.3.1 Advantages and Disadvantages of Internet and Interactive ……………………………………… 16 2.5.2.2 Combination of Internet and other promotion tools ……………………………………………………… 17 2.5.4 Sales Promotion……………………………………………………………………………………………………………………………… 18 2.5.4.1 Advantages and Disadvantages of Sales Promotion …………………………………………………… 19 2.5.4.2 Customer-oriented promotions ……………………………………………………………………………………………… 19 2.5.5 Publicity / Public Relations ………………………………………………………………………………………………………… 24 2.5.5.1 Public Relations …………………………………………………………………………………………………………………………… 24 2.5.5.2 Publicity ………………………………………………………………………………………………………………………………………… 25 2.5.6 Personal Selling ……………………………………………………………………………………………………………………………… 25 2.5.6.1 Advantages of personal selling ……………………………………………………………………………………………… 25 2.5.6.2 Disadvantages of personal selling ……………………………………………………………………………………… 26 2.6 Process of building promotional strategy ………………………………………………………………………………… 27 CHAPTER 3 - INTRODUCTION TO FUNCTIONAL FOOD AND QUEENCARE 28 3.1 Introduction to Functional Food……………………………………………………………………………………………………. 28 3.1.1 Terminology and Definitions……………………………………………………………………………………………………… 28 3.1.2 Role of Functional Foods……………………………………………………………………………………………………………… 30 3.1.3 Industry Analysis …………………………………………………………………………………………………………………………… 30 3.1.4 Customer Perception about Functional Food ……………………………………………………………………… 32 3.1.5 Description of the Global Nutri Co ………………………………………………………………………………………… 34 3.1.6 Introduction to Queencare Product ………………………………………………………………………………………… 34 3.1.7 Overview of Vietnamese Economy………………………………………………………………………………………… 35 ∀ ! ! ! ! CHAPTER 4 - CURRENT PROMOTIONAL PROGRAM …………………………………………… 37 4.1 Introduction………………………………………………………………………………………………………………………………………… 37 4.2 Review of Marketing Plan …………………………………………………………………………………………………………… 37 4.3 Current Promotional Program ……………………………………………………………………………………………………… 41 4.4 Strengths and Weaknesses of Current Promotion ………………………………………………………………… 45 4.5 Conclusions …………………………………………………………………………………………………………………………………………… 46 CHAPTER 5 - PROMOTIONAL STRATEGY FOR QUEENCARE PRODUCT… 47 5.1 Promotional Strategy ………………………………………………………………………………………………………………………… 47 5.1.1 Advertising Strategy……………………………………………………………………………………………………………………… 47 5.1.2 Direct Marketing Strategy…………………………………………………………………………………………………………… 51 5.1.3 Interactive/Internet Marketing Strategy………………………………………………………………………………… 52 5.1.4 Sales Promotion Strategy……………………………………………………………………………………………………………… 54 5.1.5 Publicity/Public Relations Strategy………………………………………………………………………………………… 55 5.1.6 Personal Selling Strategy……………………………………………………………………………………………………………… 57 5.2 Determine Promotion Budget ……………………………………………………………………………………………………… 57 CHAPTER 6 - CONCLUSIONS AND RECOMMENDATIONS …………………………………… 59 References …………………………………………………………………………………………………………………………………………………… 61 Appendix 1 ………………………………………………………………………………………………………………………………………………… 62 Appendix 2 ………………………………………………………………………………………………………………………………………………… 64 Appendix 3 ………………………………………………………………………………………………………………………………………………… 69 Appendix 4 ………………………………………………………………………………………………………………………………………………… 71 Appendix 5 ………………………………………………………………………………………………………………………………………………… 76 Appendix 6…………………………………………………………………………………………………………………………………………………… 76 Appendix 7…………………………………………………………………………………………………………………………………………………… 77 ∀ ! ! ! ! LIST OF ABBREVIATIONS BMI : Business Monitor International FAO : Food and Agriculture Organization GSO : General Statistics Office SRI : SRI international, an independent, nonprofit research institute GDP : Gross Domestic Product TV : Television TVC : Television commercial Ad/Ads : Advertising FF : Functional food PR : Public Relation IWS : Internet World Stats P.O.S.M : Point of Sale Materials #! ! ! ! LIST OF FIGURES Figure 2.1: Push strategy Figure 2.2: Pull strategy Figure 2.3: Elements of promotional mix Figure 2.4: Sales promotion Figure 2.5: Types of consumer promotions use by packaged-goods manufacturers Figure 2.6: Consumer-oriented sales promotion tools for various marketing objectives Figure 3.1: Product benefit between Functional food and Drug Figure 3.2: Players in Functional food market Figure 3.3: Customer evaluation about price of functional food Figure 3.4: Customer evaluation of different characteristics of functional food Figure 4.1: Product life-cycle of Queencare Figure 4.2: Queencare sale volume Figure 4.3: Brand awareness Figure 4.4: Channels bringing customer to use Queencare Figure 4.5: Percentage of user evaluation toward Queencare TVC Figure 5.1: Changes in use of Vietnamese media Figure 5.2: Media chosen for entertainment/information Figure 5.3: Queencare advertising strategy Figure 5.4: Asia top ten internet countries Figure 5.5: Purpose to be online Figure 5.6: Target customer’s interest toward sales promotion program Figure 5.7: Interest of Queencare users toward sales promotion program Figure 5.8: Exhibition which target customer attended Figure 5.9: Evaluation of customer about health seminars #! ! ! ! LIST OF PICTURES AND TABLES PICTURES Picture 3.1: Queencare product Picture 4.1: Interface of Queencare product on company website Picture 4.2: Pictures of other implemented advertisements of Queencare TABLES Table 3.1: GDP of Vietnam over years Table 3.2: Healthcare expenditure per capita in Vietnam Table 4.1: Queencare specification and price over periods Table 4.2: Vietnam population Table 4.3: Queencare and competitive products Table 4.4: Cost of Promotion program in 2010 Table 5.1: Promotion budget [...]... program for Queencare? Q4: Which promotional strategy is suitable for Queencare? 1.3 Scope and Limitations 1.3.1 Scope of Study The research study of Queencare case only focuses on Vietnam market, in term of promotion (the fourth P of marketing mix) to analysis target customer’s interest and use 6 tools of ! ! #! ! promotional mix to create a promotional strategy to promote Queencare That strategy. .. purchase, or even a vote Direct marketing is one of the fastestgrowing forms of promotion, and for many marketers, it is rapidly becoming the medium of choice for reaching consumers Traditionally, direct marketing is not considered an element of the promotional mix However, because it has become such an integral part of the IMC program of many organizations and often involves separate objectives, budgets,... Marketing Communication The American Association of Advertising Agencies (the “4As”) which developed one of the first definitions of integrated marketing communications, defies it as a concept of marketing communications planning that recognizes the added value of a comprehensive plan that evaluates the strategic roles of a variety of communication disciplines -for example, general advertising, direct response,... communicates a common theme and positioning 2.4 Promotional Strategy 2.4.1 Definitions According to Johnson and Scholes (Exploring Corporate Strategy) , strategy is defined as followed: Strategy is the direction and scope of an organization over the long-term, which gain advantages for the organization through its configuration of resources within a challenging environment, to meet the needs of the markets... they called to the company for consultancy The interviewees consist of 40 women who used Queencare Collected information includes (a) customers’ perceptions about Queencare (b) current position of Queencare in consumers’ mind Sample Method The sample method used for this project is simple random sampling design in which every element in the population has a known and equal chance of being selected as... often use refund offers to induce trial of a new product or encourage users of another brand to switch Bonus packs offers the consumer an extra amount of a product at the regular price by providing larger containers or extra units Price-offs: Another consumer-oriented promotion technique is the direct price-off deal, which reduces the price of the brand Marketers use price-off promotions for several reasons... expectations Promotional Strategy is a part of the marketing strategy as well as the organization’s general strategy It can be defined is the element of a firm's decision-making concerned with choosing target and formulating the most appropriate promotion mix to influence it (businessdictionary.com) 2.4.2 Push versus Pull Strategy Marketing theory distinguishes between two main kinds of promotional strategy: ... promotion, and public relations, and combines these disciplines to provide clarity, consistency, and maximum communications impact The 4As’ definition focuses on the process of using all forms of promotion tool to achieve maximum communication impact Consumers’ perceptions of a company and/or its various brands are a synthesis of the bundle of messages they receive or contacts they have, such as media... proof of purchase as a condition ! ! ∀∀! ! for entry Entrants need only submit their names for the prize drawing Scratch-off cards with instant winners are a popular promotional tool Refund/rebates: Refunds (also known as rebates) are offers by the manufacturer to return a portion of the product purchase price, usually after the consumer supplies some proof of purchase Packaged-goods marketers often... promotional program of Global Nutri Co with data collecting from a survey and interviews ! ! %! ! Chapter 4 - Current Promotional Program - this chapter provides the situation of current promotional program of Queencare It also mentions about customers’ interest toward promotion Chapter 5 - Promotional Strategy - This chapter presents new promotional strategy for Queencare product based on promotion . building an effective promotional strategy for Queencare product, a kind of functional food of Global Nutri Co. through promotional tools and customer’s interest. In the context of the very promising. program of Global Nutri Co. in general and promotional program in particular through customer surveys in order to build a new promotional strategy for Queencare. ∀! ! ! ! TABLE OF CONTENTS. who contributes greatly to my learning progress. ! ! ! ! TUTOR’S COMMENTS I am writing to confirm that the project named PROMOTIONAL STRATEGY FOR QUEENCARE OF GLOBAL NUTRI