Launching liver product in food supplement market in vietnam master project in business and marketing management

TRƯỜNG ĐẠI HỌC MỞ TP.HCM UNIVERSITE LIBRE DE BRUXELLES HO CHI MINH CITY OPEN UNIVERSITY SOLVAY BUSSINESS SCHOOL MBMM4 THIEU THI VY VY LAUNCHING LIVER PRODUCT IN FOOD SUPPLEMENT MARKET IN VIETNAM MASTER PROJECT MASTER IN BUSINESS & MARKETING MANAGEMENT Tutor: PhD HOANG THI PHUONG THAO Ho Chi Minh City 2010 Thieu Thi Vy Vy Final project – MBMM4 DECLARATION I hereby enclose eight hard copies & two soft copies of my final project “Launching Livica - liver product in food supplement market in Vietnam” to Solvay Business School and Ho Chi Minh City Open University I confirm this final project is my own work And I certify that all data and references using in this project are legal Thieu Thi Vy Vy Final project – MBMM4 ACKNOWLEDGEMENTS Firstly, I would like to express sincere thanks to my tutor - PhD Hoang Thi Phuong Thao for her whole-hearted guidance and feedback which I really appreciate In addition, I would like to show my big gratitude to my special colleagues – Mr Phan Thanh Trung, who accompanies with me the whole course of MBMM4 & Mr Nguyen Phong Phu, who assists me to conduct the quantitative research for the information of this final project, and other colleagues in United Pharma Vietnam, who assist me to complete this final project Finally, I wish to acknowledge and thank to all professors, coordinators and my classmates of MBMM4 program who have delivered valuable experiences, knowledge and assistance to me during the course Thieu Thi Vy Vy Final project – MBMM4 TABLE OF CONTENT LIST OF TABLES LIST OF CHARTS LIST OF ABBREVIATIONS EXECUTIVE SUMMARY Chapter 1: INTRODUCTION 1.1 Background 1.2 Objectives of launching project 1.3 Scope and limitation of launching project 1.4 Research study method serving for project 1.5 Structure of project report Chapter 2: MARKETING SITUATION ANALYSIS 2.1 EXTERNAL ANALYSIS 2.1.1 Hepatic market data analysis (IMS market research agency) 2.1.2 Competitors analysis 2.1.3 Market & consumer’s attitude toward liver products .9 2.1.3.1 Respondents information 2.1.3.2 Market overview 2.1.3.3 Evaluation of product concepts 12 2.1.3.4 Ideas for pricing 14 2.2 INTERNAL ANALYSIS 15 Thieu Thi Vy Vy Final project – MBMM4 2.2.1 Historical business share by regions / provinces in Vietnam of United Pharma’s products 15 2.2.2 Historical business share by channels of distribution of United Pharma’s products 15 2.3 SWOT ANALYSIS 16 2.3.1 Strengths 16 2.3.2 Weaknesses 16 2.3.3 Opportunities 17 2.3.4 Threats 17 Chapter 3: MARKETING STRATEGY TO LAUNCH LIVICA 3.1 MARKETING GOALS & OBJECTIVES 18 3.2 MARKETING STRATEGIES 19 3.2.1 Target segmentation 19 3.2.2 Livica positioning 20 3.2.3 Marketing mix 20 3.2.3.1 Product strategy 20 3.2.3.2 Pricing strategy 22 3.2.3.3 Distribution strategy 24 3.2.3.4 Promotional strategy 25 3.2.4 Action plan for launching Livica .27 3.2.4.1 Consumers 27 3.2.4.2 Pharmacy 29 3.2.4.3 Private clinic 30 Thieu Thi Vy Vy Final project – MBMM4 Chapter 4: FINANCIAL ANALYSIS & CONTROL 4.1 SALES FORECAST FOR YEARS .33 4.2 MARKETING EXPENSE FORECAST 33 4.3 BREAKING EVEN ANALYSIS .34 4.4 CONTROL 35 CONCLUSION 36 REFERENCES APPENDIX Thieu Thi Vy Vy Final project – MBMM4 LIST OF TABLES Table 2.1: Market relevant of hepatic market Table 2.2: Competitor analysis profile Table 2:3: Respondent profile Table 2.11: Business share among channels of United Pharma 16 Table 3.1: Sales forecast of Livica in years 18 Table 3.3: Price of Livica 23 Table 3.4: Competitor pricing analysis 24 Table 3.5: Sales share among channels 24 Table 3.7: Summary of action plan 2011-2013 31 Table 4.1: Livica’s sales forecast in years 33 Table 4.2: Marketing expenses for years .34 Table 4.3: Break-even analysis 35 Thieu Thi Vy Vy Final project – MBMM4 LIST OF CHARTS Chart 2.4: Current hepatic market 10 Chart 2.5: Purpose of taking Hepatic products .10 Chart 2.6: Consumers’ perception on famous brands .11 Chart 2.7: Influencers of hepatic category 11 Chart 2.8: Evaluation on product concepts 13 Chart 2.9: The attractive attributes of concept vs concept .14 Chart 2.9: Pricing evaluation 14 Chart 2.10: Historical business sales of United Pharma VN 15 Chart 3.2: Novex science study on absorb of Siliphos 21 Chart 3.6: Delivery system of United Pharma’s Distributor 25 Thieu Thi Vy Vy Final project – MBMM4 LIST OF ABBREVIATIONS UPI : United Pharma (Vietnam) Inc UNILAB : United Laboratories, Inc OTC : Over the Counter GIT : Gastro Intestinal Track SEC : Social Economic Class WOM : Word of Mouth MD : Medical Doctor PPC : Private Pharmacy Company WS : Wholesaler CBP : Consumer Buying Price CAGR : Cumulative Average Growth OPEX : Operating Expenses ATL : Above the Line BTL : Below the Line BOD : Board of Directors Thieu Thi Vy Vy Final project – MBMM4 a b Adviser Reliable adviser Relatives 1 Friends 2 Private clinic doc 3 Hospital doc 4 Doctor in seminar 5 Pharmacist/salesclerk 6 Public clinic/Nutrition center people 7 Others: 8 What are the strengths of Bar / Boganic? What are the weaknesses of Bar / Boganic? Product concept: show product concepts of tonic liver product one by one and ask with the same below series of questions for each concept What you like about this concept? (probe for as much as information) What is your dislike in this concept? Why? (probe for as much as information) Please tell us your general feelings about this concept? Dislike a lot Dislike a little Neither like nor dislike Like a little Like a lot 10 Please tell us which of the following scale describes how relevant this product is to you? Thieu Thi Vy Vy Final project – MBMM4 Very irrelevant Rather irrelevant Quite relevant Very relevant Don’t know 11 Please tell us which of the following best describes how new & different this product is? Not unique at all Rather not unique Quite unique Very unique Don’t know 12 Please tell us which of the following best describes how believable information in product concept? Very hard to believe Rather hard to believe Quite believable Very believable Don’t know 13 Please tell us which of the following best describes how easy / hard it is for you to understand the concept? Very hard to understand Rather hard to understand Quite easy to understand Very easy to understand Don’t Know 14 If this product is sold at a reasonable price, will you buy it? º Yes º No 15 Please tell us which of the following best describes how likely you are to purchase this product? Thieu Thi Vy Vy Final project – MBMM4 Defintiely will not buy Probably will not buy Probably will buy Definitely will buy 16 Please tell us the reasons why you buy / not buy this product? Pricing: 17 This is price list by table a/ Which price is expensive? b/ Which price is too expensive and you will never buy it? c/ Which price is cheap? d/ Which price is too cheap and make you doubt product quality? a b c d Expensive Too Expensive Cheap Too cheap Below VND 500/tab 1 1 VND 500/tab (~ 5,000/blister - 15,000/box) 2 2 VND 1,000/ tab (~ 10,000/ blister - 30,000/ box) 3 3 VND 1,500/ tab (~ 15,000/ blister - 45,000/ box) 4 4 VND 2,000/ tab (~ 20,000/ blister - 60,000/ box) 5 5 VND 2,500/ tab (~ 25,000/ blister - 75,000/ box) 6 6 VND 3,000/ tab (~30,000/ blister - 90,000/ box) 7 7 VND 3,500/ tab (~ 35,000/ blister - 105,000/ box) 8 8 VND 4,000/ tab (~ 40,000/ blister - 120,000/ box) 9 9 VND 4,500/ tab (~ 45,000/ blister - 135,000/ box) 10 10 10 10 VND 5,000/ tab (~ 50,000/ blister - 150,000/ box) 11 11 11 11 VND 5,500/ tab (~ 55,000/ blister - 165,000/ box) 12 12 12 12 VND 6,000/ tab (~ 60,000/ blister - 180,000/ box) 13 13 13 13 Above VND 6,000/ tab 14 14 14 14 DATA SHEET SUMMARY Thieu Thi Vy Vy Final project – MBMM4 S1 Col % GENDER Male Female Total Age group Total 20-29 YO 30-39 YO 40-50 YO 15 34 51 100 GENDER Male Female Total 3,000,000 - 4,499,999 4,500,000 - 10,999,999 20 64 15 71 22 61 11,000,000 - 14,999,999 16 15 16 100 100 100 Total S2b Col % GENDER Female Male Total Monthly personal income Total 1- 2,999,999 3,000,000 - 4,499,999 4,500,000 - 10,999,999 No income 44 27 11 18 100 45 24 24 100 GENDER Male Female Total Total 42 33 19 100 S3 Col % Occupation 15 34 52 100 S2a Col % Monthly household income 15 35 50 100 Professional Technical Office employee – Clerical/junior level Large-scale trader Production worker Self-employed Student Housewife Unemployed Retired 15 15 42 24 1 100 10 21 35 2 100 13 45 33 100 Thieu Thi Vy Vy Final project – MBMM4 S4 Col Response % GENDER Male Female Total Vitamins Liver food supplement/tonic P6M Category Draught beer usage Branded beer Non-branded alcohol Branded alcohol Total 75 63 81 99 98 100 11 46 15 248 35 79 42 321 31 Q1a Col % Total Tom brand awareness Total Activer Bar Bobina Boganic Fortec Legalon Livsin-94 Ursa-S Others DK Col Response % 40 1 22 13 100 Total Activer Bar Bobina Boganic Chophytol Fortec Legalon Ursa-S Chopytol DK GENDER Male Female 31 17 2 25 15 100 44 5 2 21 13 100 Q1b Total Other spont brand awareness 216 12 2 71 105 GENDER Male Female 10 2 73 106 13 2 70 105 Thieu Thi Vy Vy Col Response % Final project – MBMM4 Q1c Total Aided brand awareness Total Activer Bar Bobina Boganic Chophytol Fortec Legalon Livsin-94 Nissel Ursa-S 77 37 55 18 12 20 311 Total Total Activer Bar Bobina Boganic Chophytol Fortec Legalon Livsin-94 Ursa-S Others Col Response % 44 10 2 25 100 Total 10 77 35 52 20 10 21 305 Activer Bar Bobina Boganic Chophytol Fortec Legalon Livsin-94 Nissel Ursa-S GENDER Male Female 38 19 4 2 25 100 47 25 100 Q2a Total Ever used 75 42 63 15 17 10 19 327 Q1d Col % P6M Bumo GENDER Male Female 60 16 18 3 154 GENDER Male Female 48 15 29 2 158 65 16 14 7 152 Thieu Thi Vy Vy Col Response % Final project – MBMM4 Q2b GENDER Male Female Total Used P6M Total Activer Bar Bobina Boganic Chophytol Fortec Legalon Livsin-94 Nissel Ursa-S Col Response % 53 11 13 122 Total Activer Bar Bobina Boganic Chophytol Legalon Livsin-94 Nissel Ursa-S VG-5 Livolin Chlorophyll Diep chau Vien thuoc mat gan Vinh Xuan Vicgan B DR DK GENDER Male Female 10 1 1 2 1 13 4 1 2 1 2 1 77 106 Total Total 118 77 106 76 105 Q2e Col % Previous BUMO 4 2 131 57 10 2 Q2d Total Repertoire 42 13 21 Bar Bobina Boganic Fortec Ursa-S DR DK 1 89 100 GENDER Male Female 2 88 100 1 90 100 Thieu Thi Vy Vy Col Response % Final project – MBMM4 Q3a GENDER Male Female Total Prevent liver problems Boost overall heath Enhance skin beauty PREVENTIO Protect liver from N beer/alcohol Regulate body heat Filter/Neutralize toxic from the liver Support treatment of fatty liver Acne Rash /Hives Support treatment of hepatitis Support treatment of liver disorders Treat elevated liver enzyme TREATMENT Treat skin allergy Treat boil Treat indigestion Regulate menstruation Treat melasma Treat constipation Treat yellowish skin Regulate body heat Treat liver tumor Treat sore throat Total Col Response % 73 34 34 75 27 10 73 37 44 22 65 18 19 17 12 15 11 23 13 27 21 18 13 27 20 13 10 15 11 3 1 1 1 1 291 Total 269 1 1 301 Q3b Total PREVENTION TREATMENT 2 2 47 53 100 GENDER Male Female 60 40 100 41 59 100 Thieu Thi Vy Vy Final project – MBMM4 Q3b Col % GENDER Male Female Total Prevent liver problems Protect liver from beer/alcohol PREVENTIO Enhance skin beauty N Regulate body heat Filter/Neutralize toxic from the liver Boost overall heath Support treatment of fatty liver Rash /Hives Acne Support treatment of hepatitis Support treatment of liver disorders TREATMENT Treat elevated liver enzyme Treat boil Treat skin allergy Treat indigestion Treat melasma Treat yellowish skin Treat liver tumor Treat sore throat Total Col Response % 22 19 23 10 31 5 4 18 22 10 8 11 10 10 4 3 1 1 1 100 2 1 1 100 Col % Relatives Friends Private clinic doc Hospital doc CMEC doc Pharmacist/Salesclerk 43 39 26 52 47 211 Total 100 GENDER Male Female 45 43 43 45 189 42 38 33 56 47 221 Q4b Total Key Brand influencers Q4a Total Total Relatives Friends Private clinic doc Hospital doc Pharmacist/Salesclerk 19 16 41 18 100 GENDER Male Female 30 11 30 23 100 15 20 46 16 100 Thieu Thi Vy Vy Col Response % Final project – MBMM4 Q5a_Bar GENDER Male Female Total P R O D U C T F U N C T I O N S LIVER BENEFITS NON-LIVER BENEFITS Treat fatty liver Remove/Neutralize toxic in the liver Protect liver health Treat acute liver inflammation Treat hepatitis Treat common liver problems Protect liver from drug damage Protect liver from beer/alcohol Treat acne Treat skin allergy Treat indigestion Treat yellowish skin Nourish skin 31 36 28 2 1 1 23 26 52 27 19 19 56 17 25 29 12 51 32 Treat skin problems PRICE Has low price INGREDIENTS Has herbal ingredients DK DK Total P R O D U C T F U N C T I O N S Support bowel movement Col Response % 7 213 3 17 192 4 222 Q5b_Boganic Treat fatty liver Remove/Neutralize toxic in the liver Treat cirrhosis Protect liver health LIVER Treat acute liver BENEFITS inflammation Treat common liver problems Protect liver from drug damage Treat acne Treat skin allergy NON-LIVER Treat yellowish skin BENEFITS Nourish skin Treat melasma PRICE Has low price INGREDIENTS Has herbal ingredients DK DK Total GENDER Male Female Total 11 28 43 19 12 7 25 1 10 31 144 23 20 23 147 11 26 2 35 142 Thieu Thi Vy Vy Final project – MBMM4 Q5a_Bar Col Response % GENDER Male Female Total Requires drinking many tabs per dose DOSAGE Requires taking many doses per day Is not efficacious INEFFICACY Does not cure cirrhosis Does not cure hepatitis DK DK Total Col Response % 3 1 95 101 INEFFICACY Is not efficacious SIDERaises body heat EFFECTS DK DK Total GENDER Male Female 2 98 100 PRODUCT FUNCTIONS INGREDIENTS PRODUCT FORMAT OTHERS Col Response % 100 100 96 100 Q7 NET GENDER Female Male Total Total 1 95 101 Q6b_Boganic Total Col Response % 94 100 78 57 17 153 88 48 13 148 74 61 19 155 Q7 Like GENDER Female Male Total Protect liver health/Enhance liver functions Protect liver from beer/alcohol Remove/Neutralize toxic PRODUCT in liver FUNCTIONS Protect liver from unhealthy food Maintain health Protect liver from environmental effects Protect liver from drug damage 47 54 44 30 46 24 29 27 30 15 10 16 Thieu Thi Vy Vy Final project – MBMM4 Has extract from natural thistle Contains vitamins B, E, and zinc which are good INGREDIEN for skin Has unique composition TS combination of Siliphos and vitamin Contains high level of vitamin E PRODUCT Is in tablet format FORMAT OTHERS Total 36 33 37 23 17 25 10 1 1 Is safe for long term use 13 10 14 Has been clinically tested 221 223 220 Can be used daily Col Response % Q8 Dislikes GENDER Male Female Total $Q19A Total Col % DK Requires drinking many doses per day Is not relevant to me - I not have erratic eating habits Do not like tablet - hard to drink Do not believe product can protect liver from all harms Does not have price info Do not like using it daily Do not believe product can protect liver from beer/alcohol Does not have product/manufacturer info 91 88 93 3 2 2 1 1 2 101 102 Total 100 Q9 Overall liking Total Overall liking Dislike a little Neither like nor dislike Like a little Like a lot 49 43 100 GENDER Female Male 35 54 100 55 38 100 Thieu Thi Vy Vy Final project – MBMM4 Q10 Relevance Col % GENDER Male Female Total Relevance Total Rather irrelevant Quite relevant Very relevant 60 32 100 GENDER Male Female Total Total Not unique at all Rather not unique Quite unique Very unique DK 23 51 21 100 24 55 16 100 GENDER Male Female Total Total 23 42 31 100 Q12 Believability Col % Believability 66 25 100 Q11 Uniquess Col % Uniquess 46 48 100 Very hard to believe Rather hard to believe Quite believable Very believable DK Col % 22 74 100 Comperehensi Quite easy to understand on Very easy to understand Total GENDER Male Female 3 97 100 98 100 97 100 Q14 Purchase Y/N Total Yes Purchase Y/N No DK Total 100 23 75 100 Q13 Comperehension Total Col % 19 71 89 100 GENDER Male Female 90 10 100 89 100 Thieu Thi Vy Vy Final project – MBMM4 Q15Purchase Scale Col % GENDER Male Female Total Purchase Scale Total Defintiely will not buy Probably will not buy Probably will buy Definitely will buy Col Response % 34 57 100 Total Am not sure whether product really works as claimed Only use on prescription Do not know product rpice Product is not relevant to me Do not believe product has so many benefits as claimed Do not have any liver problems now Do not want o switch brands for fear of sideeffects Do not know manufacturer Do not know what Siliphos is made of GENDER Male Female 30 33 29 28 33 25 20 22 20 14 18 11 6 3 11 122 108 Q17a PSM Expensive Total Total 112 Col % PSM Expensive 36 55 100 Q16Reason why not Purchase Total $Q31 10 27 63 100 VND VND VND VND VND VND VND VND VND VND 1,500/tab 2,000/tab 2,500/tab 3,000/tab 3,500/tab 4,000/tab 4,500/tab 5,000/tab 5,500/tab 6,000/tab 10 23 17 19 11 100 GENDER Male Female 16 12 33 14 14 100 13 26 20 13 10 3 100 Thieu Thi Vy Vy Final project – MBMM4 Q17b PSM Too Expensive Col % Total PSM Too Expensive Total VND VND VND VND VND VND VND VND VND VND VND VND VND 2,000/tab 2,500/tab 3,000/tab 3,500/tab 4,000/tab 4,500/tab 5,000/tab 5,500/tab 6,000/tab 7000/tab 8000/tab 9000/tab 10000/tab 15 19 14 13 10 3 100 Total Total VND VND VND VND VND VND VND 500/tab 1,000/tab 1,500/tab 2,000/tab 2,500/tab 3,000/tab 3,500/tab 11 42 20 11 100 Total Total 100 12 15 22 11 13 11 2 100 GENDER Male Female 40 12 19 14 100 14 44 24 100 Q17d PSM Too Cheap Col % PSM Too Cheap 2 14 12 21 12 16 Q17c PSM Cheap Col % PSM Cheap GENDER Male Female VND VND VND VND VND VND VND VND VND VND VND 400/tab 350/tab 300/tab 250/tab 200/tab 100/tab 500/tab 1,000/tab 1,500/tab 2,000/tab 2,500/tab 8 10 42 13 100 GENDER Male Female 5 30 16 12 12 100 13 48 12 100 ... Final project – MBMM4 DECLARATION I hereby enclose eight hard copies & two soft copies of my final project Launching Livica - liver product in food supplement market in Vietnam to Solvay Business. .. VN through exploring the new & potential market – food supplement market, the project of launching a liver food supplement product is suggested The project depicts plan of launching Livica, which... the project analyses the SWOT of Livica before moving to the marketing strategy for launching it o Chapter 3, Marketing strategy to launch Livica”, presents the key contents of the launching project