Integrated marketing communication plan knorr tet 2014

TABLE OF CONTENTS CHAPTER 1: VIETNAM GRANULES MARKET OVERVIEW AND MARKETING ANALYIS OF KNORR .... CHAPTER 1: VIETNAM GRANULES MARKET OVERVIEW AND MARKETING ANALYIS OF KNORR 1.. Being p

TRƯỜNG ĐẠI HỌC MỞ TP HCM UNIVERSITE LIBRE DE BRUXELLES

HO CHI MINH CITY OPEN UNIVERSITY SOLVAY BRUSSELS SCHOOL ECONOMICS & MANAGEMENT

Tutor’s Name: HUYNH BA CHAN NHU

Ho Chi Minh City (2014)

COMMITMENTS

We, Nguyen Minh Hang and Nguyen Thi Thu Hang commit that we have done the project by ourselves based on the information collected either from the Public or Unilever Internal Source

This paper is designed only for the academic purpose of the completion of our Master in Marketing and Advertising It is not expected for any other users

Finally, we must express our deep appreciation to all our colleagues, friends,

and our family, who have, as always, given us their support throughout

TABLE OF CONTENTS CHAPTER 1: VIETNAM GRANULES MARKET OVERVIEW AND

MARKETING ANALYIS OF KNORR 6

1 Introduction about Unilever and brand Knorr 6

1.1 Unilever and Unilever Vietnam 6

1.2 Brand Knorr and Knorr granules 6

2 Marketing Analysis 8

2.1 Market analysis 8

2.2 Granules market analysis 9

2.3 Competitors 10

3 Knorr SWOT analysis 12

4 Segmentation - Target audience 12

4.1 Segment description 12

4.2 Target audience 12

4.3 Insights and innovation of product 13

4.4 Product differentiation 13

4.5 Positioning 13

CHAPTER 2: THEORETICAL FRAMEWORK OF 5M’S OF ADVERTISING 14

1 Steps to develop a communication strategy 14

2 4P’s and 4C’s of Marketing 14

3 Elements of IMC mix 15

4 Measurement 16

CHAPTER 3: ANALYSIS ON MARKETING COMMUNICATON PLAN OF KNORR TER 2013 17

1 Target audience 17

2 Communication plan of Knorr Tet 2013 Budget 17

3 Key message 18

4 Objective 18

5 Timeline 18

6 Media channels 19

7 Measurement 20

CHAPTER IV: RECOMMENDATION FOR INTEGRATED MARKETING COMMUNIATION PLAN OF KNORR TET 2014 22

1 Key message 22

2 Objective 22

3 Target audience 22

4 Media channels 22

5 Timeline 23

6 Communication plan of Tet 2014 Budget 24

CONCLUSION 25

REFERENCES 26

APPENDIX 27

Tet is special holiday of the Vietnamese for eating, entertainment activities, and family traditions This is also a special season for most of businesses to make use

of launching products, marketing campaigns that help to build sales at maximum level The objective of this project is to review and analyze integrated communication plan Knorr Tet 2013 and giving some suggestions for further plan Tet 2014 Knorr has launched Tet campaign yearly and in 2013, Knorr continued to implement thematic TVC and sales promotion to attract its target customers However, in the harsh competition, others foreign players of Maggi and Aji-ngon follow very close to Knorr and also launch Tet gift packages Besides, on Tet, customers have trend to choose brand that have appealing mechanics To solve that issue, in 2013, Knorr decided to choose a premium Lock&Lock gift for Tet to create big impact As a result, Knorr got advantage of value share in urban areas Nevertheless, in rural, Knorr did not achieve the target because people do not realize

outstanding value from Knorr’s gift

From Tet 2013, we have withdrawn some good points, unachieved issues, and

given some recommendations for Integrated marketing communication plan of

Knorr Tet 2014 Continuing with taking advantage of Tet to grow volume sales,

market share, and brand loyalty, we have planned to implement media activities via insightful TVC, eye-catching and premium promotion gifts but focus on customizing promotion gifts basing on different regions to get the highest impact

CHAPTER 1: VIETNAM GRANULES MARKET OVERVIEW AND

MARKETING ANALYIS OF KNORR

1 Introduction about Unilever and brand Knorr

1.1 Unilever and Unilever Vietnam

Unilever is a group of Britain and the Netherlands that specialized in production of consumer goods such as cosmetics, chemical detergent, toothpaste, shampoo, and food Major competitors of Unilever are Procter

& Gamble, Unilever, Nestlé, Kraft Foods, Mars Incorporated, Reckitt Benckiser and Henkel

The company owns several production companies, consumer goods, food, laundry detergent products, cosmetics in the world Unilever employs about

173 thousand employees in 500 companies worldwide, their products are sold

in 190 countries

Business category: Consumer goods (Branded home & personal care and

food and beverage categories)

Unilever owns more than 400 brands with turnover about 51 billion euro in

2012 In 2013, Unilever turnover went down 3% from 2012

1600 people 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

1.2 Brand Knorr and Knorr granules

The story about Knorr has begun in 1838, when Carl Heinrich Knorr founded first factory to provide specialist plant chicory for the coffee industry in Germany Knorr brand became a pioneer in testing dried vegetables for keeping flavor and value ding their support Today, Knorr became the number 1 brand of Unilever Food Solutions - global brand with a particular passion for food with a wide range of product line of spices, sauces and soups

Being put in Vietnam market since 2000, the Knorr brand has launched many product lines to help the lives of modern women Vietnam improved In April

2001, granules Knorr product was first introduced to consumers in Vietnam This is considered a milestone for the product market of Vietnamese spices,

because the product has developed a new concept of the tasting cooking in the culinary culture of the Vietnamese people

Table 1: Knorr Vietnam product overview

Shinbone, tenderloin

& marrow

Mushroom and seaweeds

South braised fish Roast Chicken with

Sour Cream &

The average population of the country in 2013is estimated 89.71 million people and there is an increase of 1.05% compared to 2012 There is 44.38 million male populations, accounting for 49.47% of the total and increasing 1.08% The female population is 45.33 million, accounting for 50.53%, and rising 1.03% In the total of this year's national population, urban population

is 29.03 million, accounting for 32.36%, rising 2.38% compared to the previous year; rural population is 60.68 million people, accounting for 67.64%, rising 0.43%

b) Culture – Society

As one of the Asian countries affected by Confucianism, Vietnam society over 2000 years still honors the woman with full of Cong – Dung – Ngon – Hanh personalities (Homemaking Skills, Appearance, Speech Manners, Good Behavior) A woman is good at doing the housework is always appreciated

and becomes happiness for her husband and children in the family This is also considered as the foundation for a happy family It is said that "Men build houses, women established their home." A woman can both cook well and organize everything in her house logically and orderly, which brings spiritual and physically for herself and her family Today's woman desires to both meet the requirements of social position and well complete role-play of

a wife and mother in the family For that reason, they raise the demand for family care products especially to help creating delicious meals quickly but retaining flavorful and nutritional value for her family

2.2 Granules market analysis

Vietnam is a country with an ancient culinary culture Characteristics of Vietnamese cuisine involves in "Strong fragrance" and "total quality air drips, multiple predicates", therefore culinary art lies in Vietnamese flavorings mix

so that each dish has the taste, style and exclusive to each other Granules product has appeared in Vietnamese market just more than a decade, but this product has become one of the familiar flavorings in many meals of the family and restaurants Knorr is the first brand that appears in the market and

is followed by other brands such as Maggi of Nestlé, Chinsu of Masan Food, Aji-ngon of Ajinomoto Annual consumption of Vietnamese consumers is about 1.500 tons granules (in which about 300 tons Knorr, approximately 400 tons Maggi, 200 tons Aji-ngon and some other local brands e.g Vifon, Thien Huong and some other small businesses)

According to the survey from supermarkets like Coop Mart, Maxi Mart, Citimart, the level of favorite among flavorings brands is not much different

In this industry, brands which have more attractive promotions and advertising activities, the consumption will be more The customers are not loyal to any certain brand now

Because of potential market (expected annual growth rate of flavorings industry, especially those brands which can bring high usability for family meals will grow at 50% / year), the competition between brands to dominate the market will be more intense every day On Tet, beside special advertising programs, brands also invest on products to relaunch products with new improvement That shows the determination of brands in becoming the market leader

Table 2: Value share of granules market 2013

2.3 Competitors

Strengths and weaknesses of Knorr’ competitors are:

Main competitors of Knorr are Maggi and Aji-ngon Actually, market share

of these three brands are at approximately the same level They are strong

brands in this market, but weaker in other markets For example, according to

the Kantar World panel Brand Footprint in 2013, Maggi products have been

purchased the most in the world

Specifically, Maggi’s frequency of purchase is 1,580 points, Knorr is 1,290

points and Aji-ngon is 980 points However, in Vietnam market, according to

the majority of consumers, Knorr is a strong brand in Ho Chi Minh City, but

Aji-ngon is popular in the provinces

Strengths Weakness

Maggi

 Belong to one of leader in nutrition, health and community market

 Products are diversified and have many flavors

 Be the strongest company that is able to do research and develop nutritional products

 Have strong human resources and finance They can research and make new product quickly

to adapt to customers demand

Public opinions about the fact that product quality are not enough nutrients that affect brand reputation in the critical time of the year

as New Year 2012 (Quarter 3/2012), New Year 2013 (Quarter 3/2013)

Aji-ngon

 Belong to Ajinomoto Company, which is the first oversea brand investing into Vietnamese market Ajinomoto is very successful with seasonings product First position of Ajinomoto glutamate product is very helpful to strengthen brand awareness when Aji-ngon granules entered the market

 Come from Asia country, so they can be easy to understand Vietnam culture and society

 Product quality is controlled

Investment in development human resources and research is considered carefully

This brand has joined the market later than Maggi and Knorr, so

communication activities have not been innovative

3 Knorr SWOT analysis

S

 Getting support from Unilever which has

powerful finance

 One of top brands in Vietnam and in the

world over years

 Professional marketing team who have deep

knowledge of Vietnamese market

 Strong business culture environment

 Recognizing the importance of public

 Not prior measuring sharp growth

of granules market size and

communication crisis

O

 Vietnamese granules market has developed

rapidly and it is very potential (30%/year)

 Knorr can be expand their market share

T

developing and competition is increasing harsher and harsher

 Market requirement for products using in food is very strict

 Substitutes are diversified and

rising

4 Segmentation - Target audience

4.1 Segment description

Vietnam woman are under pressure more and more to balance between social

responsibility and responsibilities as mothers and wives Thus, Knorr granule

is launched to solve conflicting demands between saving time and ensuring

nutrition for family meals

Understanding the social movements of Vietnam in evaluating the role of

women, Knorr launched Knorr granules product to help women achieve

effective in cooking delicious meals for loved ones in the shortest possible

time

4.2 Target audience

Target audience is focused on female:

 Age from 22-45, class ABC

 Prepare meals for family, mainly mums

 Housewives, workers, officers

 Have babies or not

4.3 Insights and innovation of product

a) Insight

Vietnamese society and women agree that:

- As a role of a woman, the key and dominant role is housework, especially in caring and creating delicious meals every day for the family

It is the responsibility and duty of those who are mothers and wives in the family

- Family meal is invisible line to maintain happy family

b) Innovation of product

- In Vietnamese cuisine, the process of mixing flavorings in food is raised to art The way which our ancestors concluded

to evaluate the quality of a delicious dish

is the order of the elements to put in food including the following: the first is color, the second is taste, and the third is incense Among three elements, the taste

is really important

- The amount of flavorings for different dishes with different servings is not easy for all women, especially in limited time

in now-being life Thus, Knorr has made

it easy when creating standards for tasteful dished for women

4.4 Product differentiation

- At the time of Tet 2013 product key Knorr granules is product that is extracted from the loin, bone marrow and tubes, here are the basic ingredients to create tasty, sweet and high nutrition for food in accordance with the thought of women Vietnam

4.5 Positioning

Knorr is the first brand which has developed the concept of "granules" in the minds of consumers Currently, Knorr granules are ranked the first position in 36 largest cities of Vietnam (According to the results of Nielsen’s research in 2013)

CHAPTER 2: THEORETICAL FRAMEWORK OF 5M’S OF ADVERTISING

1 Steps to develop a communication strategy

 Identify the reason

 Determine why the communication is necessary

 Create one focused message that requires communication

 Identify the target audience

 Set the target audience

 Describe the target audience

 Name the big idea/key campaign message

 Define the idea through the communication strategy into media channels:

how can the idea be delivered to the consumer/target group?

 A communication strategy often follows difference phases It needs to have a

timeline (also plan the achievement of objectives)

2 4P’s and 4C’s of Marketing

What are the consumer’s wants and needs? The product characteristics have

to match the specifics of what someone wants to buy and part of what the

consumer is buying is the personal” buying experience”

 Not PRICE but COST

Understand the consumer’s cost to satisfy the want need The product price

may be only one part of the consumer’s cost structure Often it is the cost of

time to drive somewhere, the cost of conscience of what you buy