Brand strategies for piattos potato snack in 2012 2019

TRƯỜNG ĐẠI HỌC MỞ TP HCM UNIVERSITÉ LIBRE DE BRUXELLES HO CHI MINH CITY OPEN UNIVERSITY SOLVAY BRUSSELS SCHOOL MBMM5 TRAN CAM LOAN BRAND STRATEGIES FOR PIATTOS POTATO SNACK IN 2012-2015 MASTER PROJECT MASTER IN BUSINESS & MARKETING MANAGEMENT Tutor’s Name: Dr Tran Ha Minh Quan Ho Chi Minh City (2012) i COMMITMENT I hereby, Tran Cam Loan, commit that the study is my own work with information retrieved and obtained from reliable sources which has been acknowledged in the reference page This work has not been submitted for a degree or diploma in any university To the best of my knowledge and belief, the project contains no materials previously published or written by another person except where due reference is made in the project itself HCM City, Feb 19th, 2012 Tran Cam Loan (Ms) ii  ACKNOWLEDGEMENT Firstly, I wish to express my deep gratitude to Professor Tran Ha Minh Quan for his strategic advises and involvement in my final project for the program of Master in Business and Marketing Management His continuous guidance and insightful comments has motivated my successful completion of the research paper Secondly, I am also greatly indebted to respectful professors of the MBMM program They have lifted up me to a new level of profession in marketing career thanks to their advanced marketing knowledge and useful experience sharing during the course Thirdly, I would like to express great gratitude to Ms Ruby Dela Cruz, Marketing Manager of URC Vietnam Company who has provided me the data and has input a lot in my project, as well as Mr Serge Bywalski and Ms Nguyen Thi Mong Thuy of the Postgraduate Office of Open University HMC and Solvay Brussels School for their assistance and coordination for my due completion of this thesis Finally, I would like to thank all of MBMM5 classmates for their sharing of experience and knowledge during the course and my family for their encouragement during my study and thesis completion iv TABLE OF CONTENTS COMMITMENT i ACKNOWLEDGEMENT ii TUTOR’S COMMENTS iii TABLE OF CONTENTS iv LIST OF ABBREVIATIONS vi LIST OF FIGURES vii LIST OF TABLES viii EXECUTIVE SUMMARY vix CHAPTER 1: GENERAL INTRODUCTION 1.1 Company introduction 1.2 Problem statement 1.3 Project Objective 1.4 Scope and limitation 1.5 Structure of the Project CHAPTER 2: LITERATURE REVIEW 2.1 Theoretical knowledge of brand 2.1.1 Brand 2.1.2 Brand equity 2.1.3 Brand identity 2.1.4 Brand image 2.1.5 Brand personality 2.1.6 Brand positioning 2.2 Brand strategies 2.2.1 Pioneering strategy 2.2.2 Late -Entry Strategies CHAPTER 3: RESEARCH & ANALYSIS 3.1 Desk research 3.1.1 Market analysis 3.1.2 Competitor analysis 3.1.2.1 Poca competitor - market pioneer v 3.1.2.2 O’star competitor - early follower 10 3.1.2.3 Tatos competitor - late entrant 12 3.1.3 Brand analysis 13 3.1.4 Consumer analysis 14 3.1.4.1 Consumer insights 14 3.1.4.2 Consumer behavior and attitude 15 3.2 Primary research- Brand health survey 17 3.2.1 Research design and methodology 17 3.2.2 Research results and findings 17 3.3 SWOT analysis 20 CHAPTER 4: RECOMMENDATIONS FOR BRAND STRATEGIES IN 2012-2015 4.1 Brand re-targeting and re-positioning 22 4.2 New brand identity 22 4.3 Recommendation of brand strategies in 2012-2015 23 4.3.1 Differentiate product strategy 23 4.3.2 Value for money pricing strategy 25 4.3.3 Expansion distribution plan with exclusive sales team development 25 4.3.4 Integrated communication plan in non-traditional channels 26 4.3.4.1 Concentrated communication objectives 27 4.3.4.2 Consistent communication message 27 4.3.4.3 Aggressive communication activities on various digital means 28 4.3.4.4 Teenager channels with celebrity endorsement 29 4.3.4.5 Long-standing school advertising 29 4.3.4.6 Long-term cinema advertising and trading 29 4.3.4.7 Visibility campaign and cross merchandising programs 30 4.3.4.8 Co-branding with new on-premises customers 30 REFERENCE .i APPENDIX iii Appendix 1: Quantitative questionnaire ix Appendix 2: Main analysis charts of quantitative research .xii Appendix 3: Pictures of Piattos and competitors’ communication activities in 2011 xv vi LIST OF ABBREVIATIONS A&P Advertising & Promotion BTL Below-the-line FMCG Fast Moving Consuming Goods GT Traditional Trade Channel HCM Ho Chi Minh MT Modern Trade Channel OOH Out of Home POSM Points of Selling Materials SKU Stock Keeping Unit TVC Television Commercial VND Vietnam Dong U&A Usage & Attitude URC Universal Robina Corporation vii LIST OF FIGURES Figure 2.1 Identity Structure Figure 3.1 Brand penetration level 17 Figure 3.2 Key message take-out of Piattos 18 Figure 3.3 Brand image associations 19 Figure 3.3 Brand associations chart 19 Figure 4.1 New flavor ideas from new product launch in Asian countries 23 Figure 4.2 Current packaging of potato snack product in Vietnam market 24 Figure 4.3 Packaging options for Piattos potato snack 24 Figure 4.4 Snack shape options for Piattos potato snack 24 Figure 4.5 Bulky transportation for a food salesman to carry cases of snack daily… 26 Figure 4.6 Proposed communication models 27 viii LIST OF TABLES Table 3.1 Market share review based on Nielsen audit of six key cities (Nov 2011) Table 3.2 Snack moments 16 Table 3.3 SWOT analysis 20 Table 4.1 Proposed quantity of exclusive snack salesmen for South market 25 vix EXECUTIVE SUMMARY Potato snack segment is potential market and fast growth industry but highly competitive, especially for new players because the market is now cluttered with many players and two biggest players (Poca and O’star) are dominating the market with 66% share As the latest entry in last year, although Piattos has offered some attractive better product and price benefits combined with big A&P budget to support the launch, sales growth after one year has been very modest and market share in terms of sales volume is at 5% only The strategic marketing knowledge gained from this Master course and marketing theories combined with the practice of research and analysis skills of secondary data and primary data will be used in this project to find out and solve brand issues, strengths, opportunities and threats Based on the findings of low brand awareness, weak brand image, ineffective promotion activities and weak distribution which are main challenges for Piattos, the proposal is to apply the positioning model of Keller (2002) with the concept of Frame of reference, Points of Parity, Points of Difference; the Value Proposition model of Aaker (1996) and the theoretical competitive strategies for late-entry brands of Gregory S Carpenter and Kent Nakamoto (2005) to solve those brand issues Self-expression positioning with the consistent communication message “Stand out and win the crowd” throughout four years’ marketing plan will be the main recommendations for Piattos to be more differentiate compared with current competitors The consumer trend of “hyper digitalization” and “search for role models” combined with the findings of snack consumption habit and source of awareness information are the foundation for the proposal of new brand strategies for Piattos to explore the brand building programs in nontraditional or less-cluttered advertising channels such as digital, school, cinema and POSM with long term and integrated plan vi ASK A3b & A3c IF PIATTOS WAS MENTIONED IN A2c (CODE WAS MENTIONED IN A2c) A3b As you mentioned that you know advertising of Piattos, please let me know the “key message” that you have ever known/ heard about this brand? Probe: Anything else? And anything else? A3c SHOWCARD Looking at the list of “key measage” of Piattos, please select ALL that you have known/ heard? (MA) A3b A3c Spontaneous Aided [MA] [MA] 01 01 Hexagon shape of snack 02 02 Natural potato 03 03 Extremely crisp 04 04 Stand out of the crowd 05 05 Exciting/ Fun 06 06 Youthful 07 07 Creative/Innovative Others (please specify) ……………… Don’t know 99 99 SECTION B: BRAND USAGE NOTE: THE BRANDS IN B1 SHOULD BE AWARE IN A1c B1a B1b B1c B1d B1e SHOW PHOTOS Please let me know any brands of potato snack that you ever used in the past month ago? (MA) Probe: What else? Anything else? SHOW PHOTOS Please let me know any brands of potato snack that you ever used in the past weeks ago? (MA) Probe: What else? Anything else? SHOW PHOTOS Please let me know any brand of potato snack that you used as the BUMO (brand usage most often) in the past weeks ago? [SA] Probe: What else? Anything else? SHOW PHOTOS Please let me know any brands of potato snack that you would like to buy in the next purchasing? [SA] Probe: What else? Anything else? SHOW PHOTOS Please let me know any brands of potato snack that you would like to recommend with others? [SA] Probe: What else? Anything else? vii BRANDS Piattos O’Star Poca Tatos Sachi Oishi Swing Silde Others (pls specify) ……… B1a Used in the month ago [MA] B1b Used in the weeks ago [MA] 01 02 03 04 05 06 07 08 09 01 02 03 04 05 06 07 08 09 B1c BUMO in weeks ago [SA] 01 02 03 04 05 06 07 08 09 B1e B1d Recom Next -mepurchas ndatio -ing n [MA] [MA] 01 02 03 04 05 06 07 08 09 01 02 03 04 05 06 07 08 09 NOTE: ASK B2 FOR BRAND THAT WAS MENTIONED IN B1c B2 Please let me know the reasons that you used potato snack of ………………… (read out the brand that was mentioned in B1c) as the BUMO? Probe: What else? Anything else? NOTE: ASK B3a IF RESPONDENTS AWARE PIATTOS BUT NOT USE PIATTOS/ NOT USE PIATTOS AS THE BUMO (CODE WAS MENTIONED IN A1c BUT NOT MENTIONED IN B1a OR B1b OR B1c) B3a As you mentioned that you know the potato snack Piattos but you have not used it OR have not used it as the BUMO? Probe: What else? Anything else? ASK B3b FOR BRANDS WERE MENTIONED IN B1b B3b SHOWCARD Plesase let me know the level of satisfaction about potato snack of …………………………… (read out the brand that was mentioned in B1b) [SA] Piattos O’Star Poca Tatos …… 1 1 Definitely dissatisfaction 2 2 Somewhat dissatisfaction 3 3 Neutral/ normal 4 4 Somewhat stisfaction 5 5 Definitely satisfaction viii B3c Please let me know anything that you feel satisfy/ dissatisfy about potato snack of …………………………… ( read out the brands that were mentioned in B3b) Probe: What else? Anything else? PIATTOS O’STAR POCA TATOS Satisfaction Satisfaction Satisfaction Satisfaction Dissatisfaction Dissatisfaction Dissatisfaction Dissatisfaction B4a If you have a wish, you were a manufacturer of potato snack, how’s an ideal potato snack you would like to produce? Probe: What else? Anything else? The shape of snack Taste/ flavor Others (Please specify) SECTION C: OPTIMAL PRICE C1 C2 C3 C4 SHOWCARD + MOCK-UP OF THE PACK Please let me know which price is too cheap to make you not to be reliable on the quality of potato snack products? [SA] SHOWCARD+ MOCK-UP OF THE PACK Please let me know which price is cheap to make you to be attractive to buy the potato snack products? [SA] SHOWCARD+ MOCK-UP OF THE PACK Please let me know which price is expensive but good quality to make you to be attractive to buy the potato snack products? [SA] SHOWCARD+ MOCK-UP OF THE PACK Please let me know which price is too expensive to make you not buy the potato snack products? [SA] ix 2,500 VND/ pack 25 gram 3,000 VND/ pack 25 gram 3,500 VND/ pack 25 gram 4,000 VND/ pack 25 gram 4,500 VND/ pack 25 gram 5,000 VND/ pack 25 gram 5,500 VND/ pack 25 gram 6,000 VND/ pack 25 gram 6,500 VND/ pack 25 gram 7,000 VND/ pack 25 gram 7,500 VND/ pack 25 gram 8,000 VND/ pack 25 gram 8,500 VND/ pack 25 gram 9,000 VND/ pack 25 gram 9,500 VND/ pack 25 gram 10,000 VND/ pack 25 gram C1 Too cheap [SA] 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 C2 Cheap [SA] 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 C3 Expensive [SA] 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 C4 Too expensive [SA] 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 SECTION D: IMPORTANT FACTORS & BRAND IMAGE D1 SHOWCARD I will read out some important attributes that consumers often consider choosing the brand of potato snack For each attribute that I mention, please let me know how is important to you [SA in row] By using the rating scale from to 5: “1” means it is not important at all & “5” means it is very important ROTATION R01 R02 R03 R04 R05 R06 R07 R08 PROPOSITION Reliable brand Modern brand Premium brand Brand can be shown my style Brand is recommended from friends/ relatives Brand is recommended from sellers PACKAGING Eye-catching/ Unique/ Attractive pack Youthful/ Modern pack Not Not Some what Very important Neither important important important at all 01 01 01 01 02 02 02 02 03 03 03 03 04 04 04 04 05 05 05 05 01 02 03 04 05 01 02 03 04 05 01 02 03 04 05 01 02 03 04 05 x R09 R10 R11 R12 R13 R14 R15 R16 R17 R18 R19 R20 R21 R22 R23 R24 R25 R26 R27 D2 Ingredients (nutritions, flavors…) are shown clear & informative pack Fashionable pack Easy to recognize the brand on the pack Convenient pack PRODUCT High quality Good taste Hexagon shape of snack This size of snack is just right Good flavor/ Just right flavor Have many choices on flavor Harmonious spice PRICE Expensive price Cheap price Valued for money PLACE Wide availability/ easy to buy Eye-catching/ Attractive display PROMOTION Good advertising Attractive promotion campaign Have many practical program/ attractive event 01 02 03 04 05 01 02 03 04 05 01 02 03 04 05 01 02 03 04 05 01 01 01 01 01 01 01 02 02 02 02 02 02 02 03 03 03 03 03 03 03 04 04 04 04 04 04 04 05 05 05 05 05 05 05 01 01 01 02 02 02 03 03 03 04 04 04 05 05 05 01 02 03 04 05 01 02 03 04 05 01 01 02 02 03 03 04 04 05 05 01 02 03 04 05 SHOWCARD I will read out some statements that consumers usually consider choosing the brands of potato snack For each statement, please let me know the brands that you feel associated with this statement You can choose many brands for each statement [MA in row] ASK FOR BRANDS WERE MENTIONED IN A1c ROTATION R01 R02 R03 R04 PROPOSITION Reliable brand Modern brand Premium brand Brand can be shown my style Piattos O’Star 01 02 03 04 01 02 03 04 Poca Tatos …… 01 02 03 04 01 02 03 04 01 02 03 04 xi R05 R06 R07 R08 R09 R10 R11 R12 R13 R14 R15 R16 R17 R18 R19 R20 R21 R22 R23 R24 R25 R26 R27 Brand is recommended from friends/ relatives Brand is recommended from sellers PACKAGING Eye-catching/ Unique/ Attractive pack Youthful/ Modern pack Ingredients (nutritions, flavors…) are shown clear & informative pack Fashionable pack Easy to recognize the brand on the pack Convenient pack PRODUCT High quality Good taste Hexagon shape of snack This size of snack is just right Good flavor/ Just right flavor Have many choices on flavor Harmonious spice PRICE Expensive price Cheap price Valued for money PLACE Wide availability/ easy to buy Eye-catching/ Attractive display PROMOTION Good advertising Attractive promotion campaign Have many practical program/ attractive event 05 05 05 05 05 06 06 06 06 06 07 08 07 08 07 08 07 08 07 08 09 09 09 09 09 10 11 12 10 11 12 10 11 12 10 11 12 10 11 12 13 14 15 16 17 18 19 13 14 15 16 17 18 19 13 14 15 16 17 18 19 13 14 15 16 17 18 19 13 14 15 16 17 18 19 20 21 22 20 21 22 20 21 22 20 21 22 20 21 22 23 24 23 24 23 24 23 24 23 24 25 26 25 26 27 25 26 27 25 26 27 25 26 27 27 THANK YOU VERY MUCH! xii APPENDIX MAIN ANALYSIS CHARTS OF QUANTITATIVE RESEARCH  Brand awareness and advertising awareness level Sources of awareness N = 90 N = 82 N = 15 N = 10 xiii Brand health check level Product satisfaction level xiv Ideal potato snack Price optimal xv APPENDIX 3: PICTURES OF PIATTOS & COMPETITORS’ COMMUNICATION ACTIVITIES IN 2011  A PIATTOS TVC advertising “Piattos moment” digital contest on Face book (Jun 2011) “ I love Piattos” digital contest on Face book (Aug 2011) xvi “Love wishes to beloved people” digital contest on Face book (Dec 2011) Piattos cinema advertising activities Piattos POSM Display rack Hanger Poster MT display xvii Piattos sampling activities B POCA Poca football promotion TVC Poca print ads 10 Poca promotion website http://www.poca-ngoaihanganh.com xviii 11 Poca digital advertising for football promotion 12 Poca out of home activities at supermarket 13 Poca POSM Various display rack C O’STAR 14 Advertising of O’star Farm Promotion on TV channel Hanger xix 15 O’star print ads on teenager magazines 16 O’star digital activities on O’star website and YouTube 17 O’star POSM Display rack Hanger xx D TATOS 18 Three TVC versions of Tatos with “Real potato, truly funny moments” message 19 Tatos print ads & billboard ... provinces only Regarding cinema, Piattos aired 15-second-advertising film in Megastar, Galaxy and Cinebox cinema during Jul-Sep 2011 in HCM city However, because O’star also invests in cinema... and findings 17 3.3 SWOT analysis 20 CHAPTER 4: RECOMMENDATIONS FOR BRAND STRATEGIES IN 201 2- 2015 4.1 Brand re-targeting and re-positioning 22 4.2 New brand. .. of brand 2.1.1 Brand 2.1.2 Brand equity 2.1.3 Brand identity 2.1.4 Brand image 2.1.5 Brand Personality 2.1.6 Brand positioning 2.2 Brand strategies 2.2.1 Pioneering strategy 2.2.2 Late-Entry Strategies