Marketing plan to improve brand of samsung washing machine (2011 2012)

TRƯỜNG ĐẠI HỌC MỞ TP.HCM UNIVERSITY LIBRE DE BRUXELLES HO CHI MINH CITY OPEN UNIVERSITY SOLVAY BRUSSELS SCHOOL MBMM4 Dang Thi Hoai An Marketing plan to improve brand equity of Samsung Washing Machine (2011-2012) MASTER PROJECT MASTER IN BUSINESS & MARKETING MANAGEMENT Tutor’s name: Dr Nguyen Thang Ho Chi Minh City (2011) i DECLARATION I declare that this thesis does not incorporate without acknowledgment any material previously submitted for a degree or diploma in any university; and that to the best of knowledge it does not contain any materials previously published or written by another person except where due reference is made in the text Ho Chi Minh City, March 1st, 2011 …………………………………………… Signature of Student Dang Thi Hoai An Master of Business and Marketing Management ii ACKNOWNLEDGEMENT I would express my deep gratitude to my advisor, Dr Nguyen Thang for his useful guidance and encouragement Thanks are also due to the Solvay Business School and Open University for providing the Master of Business and Marketing Program, where I learned practical and applicable knowledge I also would like to extend genuine thanks to Mr Serge Bywalski and Ms Nguyen Thi Mong Thuy for their support during the implementation of my study iii TUTOR’S COMMENTS This thesis is a practical one The objectives were clearly and rationally defined The structure is also logical The author tried to apply marketing fundamentals together with practical concept and models to approach and propose the plan However, the thesis has some limitations such as survey area, sampling method, or the generalized target population… In summary, the thesis meets the requirement (both content and presentation) of marketing master thesis I propose this thesis to be presented in front of examiner board of the Solvay-OU Master of Business and marketing Management Program Ho Chi Minh City, March 1st, 2011 Dr Nguyen Thang CONTENT iv DECLARATION i ACKNOWNLEDGEMENT ii TUTOR’S COMMENTS iii CONTENT iv LIST OF FIGURES & TABLES vi CHAPTER 1: EXECUTIVE SUMMARY AND PROJECT OBJECTIVE 1.1 Executive summary 1.2 Project objective 1.3 Scope and limitation 1.4 Project outline CHAPTER 2: LITERATURE REVIEW 2.1 .Brand equity and its importance 2.2 .Positioning strategy 2.3 .Research method & methodology CHAPTER 3: SITUATION ANALYSIS - THE CASE OF SAMSUNG WASHING MACHINE 3.1 .Market analysis 3.2 .Samsung washing machine business 10 3.3 .Samsung vs Competitors 12 3.4 .Key findings from consumer research survey 15 3.5 SWOT and BCG analyis 18 3.6 BCG analysis 21 3.7 Summary 21 CHAPTER 4: PROPOSAL OF MARKETING STRATEGY AND PROGRAMS TO BUILD BRAND EQUITY 22 4.1 Business and marketing objectives 22 4.2 Segementing, Targeting and Positioning 22 4.3 The marketing programs to build brand equity 26 4.4 Communication strategy 31 CHAPTER 5: CONCLUSION & RECOMMENDATION 35 REFERENCES 37 APPENDICES 38 v vi LIST OF FIGURES & TABLES List of Figures Figure 3.1: Market size and growth of washing machine market Figure 3.2: Price class share by type 10 Figure 3.3: Market share by brand YTD November 2010 .12 Figure 3.4: Brand equity evaluation – key factors influencing purchase decision 13 Figure 3.5: Brand equity evaluation- functional and emotional map .14 Figure 3.6: Brand equity evaluation- mind share .14 Figure 3.7: Key buying factors influencing purchase decision of drum vs top load .16 Figure 3.8: Brand image 17 Figure 3.9: Price sensitiveness – drum vs top load 17 Figure 3.10: Media habit 18 Figure 4.1: Competition base price analysis .29 Figure 4.2: Samsung distribution system 30 List of Tables Table 3.1: Segmentation mapping 13 Table 3.2: Brand awareness 14 Table 4.1: Segmentation mapping 22-23 Table 4.2: Core brand value 26 Table 4.3: Target profit- base price analysis 28 CHAPTER EXECUTIVE SUMMARY & PROJECT OBJECTIVES This chapter gives the general background, the rationale of this project, and then helps understand the problem statements Objectives and scope of the project is also defined 1.1 Executive summary According to Consumer panel conducted by TNS in 2009, washing machine penetration rate in urban Vietnam was around 23%, that was, among 6,174,132 urban Vietnamese households, 1,420,050 of them were using washing machine Give the fact that Vietnamese living standard keeps increasing, the penetration rate is expected to reach 30% by 2015 GFK also announced market size of 843,000 in units and around US$ 191 millions in turn-over by 2011, increasing 11% and 6% respectively in comparison to 2010 Although these figures showed it a potential market, it also unveiled fact that average market selling price only increased 1.8% Compared to 2010 CPI index of 8.9% (according to National Statistic report 2010), this market seemed to be devaluated and suffered from tough price competition This project is to propose a marketing plan to build brand equity for Samsung washing machine in 2011-2012 Why is it relevant? So far, Samsung has not performed well in this market In 2010, Samsung ranged No with 10.6% market share after Sanyo and Toshiba who were two leaders taking account for 48% market share In term of brand image, consumers perceived Samsung as the brand of promotion (according to Brand Attitude Survey 1H2010) It means consumers seemed to buy Samsung washing machine because of price advantage Another fact was that average selling price of Samsung was only equal to 80% total market (sourced from GSK report November 2010) Obviously, Samsung mostly presented at low-end & mainstream segment The situation became worse when this business did not generate profits in 2010 Thus, to face with the vital decision if this business should be retained or not, the board management has a mission of making this business profitable from 2011 by all means Accordingly, marketing team should design a marketing plan to improve brand equity to drive financial performance of this category Hence, where to find the source of profit? Vietnamese living standard keeps increasing, housewives pursue for convenient solutions to their daily chores Washing machine is one of necessary home appliances among their choices According to Consumer Panel research 2009, penetration of washing machine increase significantly from 23% in 2009 to 35% in 2011 It promises a potential market Washing machine is divided into to two main types: top-load and drum Top-load is volume driver which contributes 80% which has tough price competition with low margin However, drum is a new trend and perceived as new and premium technology Currently, competitions in this segment are not tough, complimenting with Samsung Global product strategy of drum prioritization So, improving performance in drum can be the right direction to improve profit and Samsung brand equity In short, this project is mostly to design marketing plan for drum How to that? The approach comes from theoretical concept and factual business problem Firstly, there are some literature reviews about brand equity and models to build brand equity which strengthens my later analysis and recommendations Secondary data are sourced to give thorough situation analysis of business performance, brand performance compared to competitors SWOT analysis & BCG models are two effective tools to find out indications for marketing strategy In addition, primary research including expert interview, qualitative and quantitative research is conducted to explore current key factors influencing purchase decision of consumer The top line result from survey shows that there are three key attributes including “durability”, “design” and “washing performance” And one of the most driving factors that consumers look for drum compared to top load is “less fabric damage” Based on such findings, I would propose the positioning of Samsung drum is “expertise in fabric care” Combining with other core value, suggested Brand Mantra is “Modern, Cloth-care Solution” targeting at youngminded, mid-high income housewives who look for convenient and comfortable life The marketing programs including three phases are designed to deliver the new positioning from 2011 to 2012, in which the first phase of launching Eco bubble drum is developed in details 1.2 Project objectives The project aims to deliver the three following objectives - To give an overview about washing machine market and Samsung brand equity in comparison to key competitors - To explore Vietnamese consumers’ key buying factors of this category, which gives indications for new brand positioning and marketing plan to improve brand equity - To design some marketing activities to improve brand equity 1.3 Scope and limitations Samsung is global brand which brand and product innovation strategy has to be aligned Thus, this project mostly focuses on proposing marketing communication strategy fitting with local consumer insights based on availability of product strategy In this case, pricing and channel strategy also are taken into account Given the time and budget constraint, all secondary data are utilized for analysis For primary data, the surveys are conducted in Ho Chi Minh City, the trading and economic center of Vietnam considered the most dynamics markets for washing machine The survey also suffers from certain inherent limitation of the convenience sampling method that may cause constraint of nationwide generalization 1.4 Project outline Chapter : Executive summary, project objectives and scope Chapter : Literature review of some marketing concepts and models that support theoretical background for analysis and recommendations 26 100% 90% 80% 70% 60% S2 Yes -> S3 S2 Do you consider buying a washing machine in 3-6 months? Yes -> S3 S3: Are you over 45 year olds? Yes-> terminate No-> Q1 Q1 When we talk about washing machine, which brands you know? (list at least brands) Q2 Which brand that you like the most? Part 03: Consumers’ behaviors Please fill your answer for Q3-Q5 in the table below Q3-Q5 Which attributes that is important to buy a washing machine in general / a top load / a drum respectively? Completely not important Not important Normal Important Very important Washing machine (Q3) Durability Washing performance Energy efficiency Advance feature Easy to use Better & difference design Less fabric damage Cheaper price Less noise & vibration Top load (Q4) Drum (Q5) 39 Promotion Q6 Which brands you think suitable to below attributes? Samsung Sanyo Durability Washing performance Energy efficiency Advance feature Easy to use Better & difference design Less fabric damage Cheaper price Less noise & vibration Promotion Q7 What are acceptable price for the most popular capacity? To p load 7-8 kg VND 3,500,000-4,000,000 VND 4,100,000-4,500,000 VND 4,600,000- 5,000,000 VND 5,100,000- 5,500,000 VND 5,600,000- 6,000,000 VND 6,100,000- 6,500,000 VND 6,500,000- 7,000,000 VND 7,100,000- 7,500,000 VND 7,600,000- 8,000,000 VND 8,100,000- 10,000,000 VND 10,100,000- 11,000,000 VND 11,100,000- 12,000,000 Electrolux Drum 6-7kg Part 04: Media habit Q8 Which media channel that you get information about washing machine? (MA) Q9 Which channel influence your purchase decision making most?(list 3) (SAT3) Q8(MA) Q9 (SAT3) Advertising TVC Print ad Billboard Leaflet Ad banner Advertorials/News 40 On TV On news/ magazine On Internet Product display POSM Recommendation Friend Sales representative at shops Promotion program Other (pls specify) Thank you./ ... for new brand positioning and marketing plan to improve brand equity - To design some marketing activities to improve brand equity 1.3 Scope and limitations Samsung is global brand which brand. .. Aligned with business objectives, marketing aims to build brand equity of Samsung washing machine, focusing on drum - Improve brand awareness from 21% to 50% - Improve brand image by owing key attributes... means Accordingly, marketing team should design a marketing plan to improve brand equity to drive financial performance of this category Hence, where to find the source of profit? Vietnamese living