Marketing plan to launch a packaged soya milk in vietnam final project master in business marketing management

TRƯỜNG ĐẠI HỌC MỞ TP.HCM HOCHIMINH CITY OPEN UNIVERSITY UNIVERSITEÙ LIBRE DE BRUXELLES SOLVAY BRUSSELS SCHOOL MBMM3 NGUYỄN THÙY CHÂU MARKETING PLAN TO LAUNCH A PACKAGED SOYA MILK IN VIETNAM MASTER PROJECT MASTER IN BUSINESS & MARKETING MANAGEMENT Tutor: Trinh Thuy Anh Ho Chi Minh City (2011) STATEMENT OF ORIGINALITY 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 NGUYEN THUY CHAU March 01, 2011 ACKNOWLEDGEMENT Firstly, I would like to express my appreciation to Ms TRINH THUY ANH - PhD, my project tutor, for all her valued guidance and expert advice in the preparation of this project Special thanks to my mentor for his personal encouragement and unlimited support in sharing marketing experience which motivated me to work harder on this project Last but not least I would like to send my deepest appreciation to my family and my company for their emotional support and spiritual encouragement throughout my MBA study TUTOR’S COMMENTS I am writing to certify that this project entitled: MARKETING PLAN TO LAUNCH PACKAGED SOYA MILK IN VIETNAM Prepared by Ms NGUYEN THUY CHAU meets the requirement for a business project at the master’s level It is recommended that Nguyen Thuy Chau present her project to the Committee Hochiminh City, March 1st, 2011 _ Tutor’s signature Trinh Thuy Anh TABLE OF CONTENT EXECUTIVE SUMMARY CHAPTER 1: INTRODUCTION 1.1 Reasons to Research 1.2 Objectives of Research 1.3 Methodology 1.4 Structure of Thesis CHAPTER 2: LITERATURE REVIEW 2.1 Process to launch a new product 2.1.1 Idea Generation 2.1.2 Screening 2.1.3 Concept Development and Testing 2.1.4 Business Analysis 2.1.5 Product and Marketing Mix Development 2.1.6 Market Testing 2.1.7 Commercialization 2.2 Marketing Activities to Build and Develop a New Product 2.2.1 Product 2.2.2 Price 2.2.3 Place (Distribution) 10 2.2.4 Promotion 11 CHAPTER 3: RESEARCH DESIGN AND FINDINGS 12 3.1 Framework of Research 12 3.2 Methodology and Sampling composition 12 3.3 Findings of Research 13 3.3.1 Finding 01: Life attitude 13 3.3.2 Finding 02: Eating behaviors 14 3.3.3 Finding 03: Criteria of Demanding Soy-milk brand 15 3.3.4 Finding 04: Hierarchy of Demanding Criteria 17 3.3.5 Finding 05: Occasions to use 18 3.3.6 Finding 06: Location to drink Soy-milk 18 3.3.7 Finding 07: Activity to drink Soy-milk 19 3.3.8 Finding 08: Places to buy Soy-milk 19 3.3.9 Finding 09: Environmental Concern 20 CHAPTER 4: MARKET ANALYSIS 21 4.1 Market situation 21 4.2 Introduction of La Beaute 23 4.2.1 About La Beaute 23 4.2.2 La Beaute’s Sustainability 24 4.3 SWOT Analysis 25 4.3.1 Strengths 25 4.3.2 Weaknesses 25 4.3.3 Opportunities 26 4.3.4 Threats 26 CHAPTER 5: MARKET ACTIVITIES 27 5.1 Target Consumers 27 5.2 Positioning 28 5.3 Marketing Activities to Launch La Viva 29 5.3.1 La Viva 29 5.3.2 Pricing of La Viva 31 5.3.3 Distribution of La Viva 33 5.3.4 Communication Strategy of La Viva 34 CHAPTER 6: CONCLUSION 37 REFERENCE 38 APPENDIX 39 LIST OF TABLE Table 4.1 Retail value RSP 24 Table 4.2 La Beaute’s Sustainability 26 Table 5.1 Pricing analyses for la Viva 34 Table 5.2 Communication mix 38 LIST OF FIGURES Figure 2.1 A framework of a new product launching process Figure 3.1 Research framework 13 Figure 3.2 Hierarchy of Demanding Criteria 18 Figure 3.3 Occasion to use 19 Figure 3.4 Location to drink soy-milk 19 Figure 3.5 Activity to drink soy-milk 20 Figure 3.6 Place to buy soy-milk 20 Figure 3.7 Environmental Concern 21 Figure 4.1 22 Figure 4.2 23 Figure 5.1 Distribution Channel Organization 35 Figure 5.2 Stages of Communication 36 Figure 5.3 Success Elements of communication 38 Page EXECUTIVE SUMMARY EUROMONITOR International1 forcasted that total Vietnam soy-milk market valued at US$ 18.5 million for the year 2010, growing by 23% vs 2009 also gave a forecast in 2014, this market value will achieve a value of US$ 43 million Thanks to the initiatives in communicating and customizing product offering, local manufacturers are dominating market with 97% market value share by Fami, Vinasoy, Vfresh and Number One etc With the communication of “Good for health” and “Good for heart”, soy-milk market is not so segmented and is considered a normal beverage for health La Beaute is founded by the philosophy of Beauty-oriented company for Vietnamese working people It is planning to offer this soy-milk market with distinct proposal which is uniquely different from the current soy-milk in the market The thesis conducted a qualitative research to find out the insights of its target consumers – Vietnamese young working woman aging from 22 to 40 Then it proposes a concept to launch a soy-milk brand named La Viva to offer its target consumers Euromonitor International Ltd is a privately owned, London-based market research firm, providing market research and business intelligence reports and data to industry The firm was founded in 1972 Euromonitor's website states the firm currently employs more than 1000 analysts and consultants globally, who source market information in 80 countries, producing consumer industry market reports, reference books, company profiles, current market data, and market forecasts (Wikipedia, Aug 2010) With the advantage of marketing capability and consumer-centric philosophy, La Beaute starts its penetration into the big cities first The success of urban geodistribution is the foundation for it to expand its distribution to the deeper and wider areas to the whole nation of Vietnam Page The research found out that target consumers initiatively are demanding much more than the offerings from current players are This unmet need is the huge opportunity for La Beaute since there is no players claiming for “Nourish from Inside out” or “Good for Breast” whare are hugely expected from target consumers This thesis is proposing a marketing plan to launch a soy-milk to best fit the consumers’ unmet demand Page 26 Less flexibility in new product development: we don’t own our in-house facility for producing soy milk Therefore we rely on outsourcing partner It needs more time to develop and launch a new product As mentioned, we don’t have manufacturing facility; therefore we are not competitive in costing It is the obstacles for us to penetrate into the middle-end segmentation 4.3.3 Opportunities The number of people who is changing their Lifestyles is increasing, the result that they are needing convenience and health Also under pressure of modernization and hard work, the number of stressful and highly strained nerve is escalating They need something which is considered as a reward after hard work With the increasing of capita and disposable income, there are big opportunities for premium products On the other, thanks to the increasing awareness of health, consumers are switching to healthy and natural products This is the factbase which helps us to launch premium and healthy brand – La Viva Some problem of in-hygiene caused from loose soy milk, therefore consumers prefer hygienic packaged soy milk Governmental policy privileges local manufacturers to develop their business scale to improve value share contribution to total market It results in the strong development and competition for La Beaute 4.3.4 Threats Soy milk in particular achieved a very high loyalty from end-users because taste Since a consumer sticks to any brand, it is not easy to convince her/him with the rationale reasons Taking chance of trial, La Viva has to deliver the immediate performance Otherwise, he/she would revert back to the familiar brand which was used Therefore, Page 27 beside product concept, it requires the knowledge of R&D to deliver the best winning taste With the hugely financial capability, the reactions of big players such as Vinamilk, Tan Hiep Phat, Quang Ngai Sugar JSC etc may disaffect the marketing campaign of La Viva CHAPTER 5: MARKET ACTIVITIES 5.1 Target Consumers Target consumers of La Viva are described in Demographics and Psychographics: Demographics - Gender: Working Female - Age: 22 - 40 - Social-Economy Class: A+,A,B,C ( Middle-Class above) - Geographic: Living in cities, or towns of provinces Psychographics These ladies are struggling to balance work and family life They are keen to find more time to take good care of themselves, family and kids Their own career is as important to them as family They manage to achieve career success to show their ability and independence They look for a soy-milk which is good for health from inside out They want to be seen as an independent and attractive as well as a good lady They perceive soy-milk as a supplement to nourish inside out to nurture their breast Page 28 5.2 Positioning In the market, there is not any soy-milk which has the clear positioning Most of key players are claiming that their products are good for health As a result, majority of their consumers perceive that soy-milk is good for health, particularly good for heart Taking this opportunity, we launch La Viva which is positioned as “A FRIEND TO WAKE UP THE INSIDE BEAUTY” With communication, we will build La Viva as an image of close friend We humanize this brand and incorporate this characteristic into La Viva through communication “A Friend” means that La Viva understands what modern lifestyle ladies expect They need La Viva because it is convenient to them since they don’t have too much time for caring and nourishing them Moreover, La Viva is a symbol of Environmental-friendly product It is the icon of Community and Social care La Viva is incorporated into our sustainable philosophy Thanks to the emerging awareness of environmental issues, the target consumers are paying their attention on this issue And La Viva is the mean for them to express their concern Every La Viva they support for, every carbon footprint emission they may save We follow the premium segmentation; our retailed price is about 25% higher than our competitors’ retailed price With the more competitive margin for resellers, it is a tipping point for resellers to expose La Viva to end-users Page 29 5.3 Marketing Activities to Launch La Viva 5.3.1 La Viva - Packaging Specification: o Package: Box 200ml o Box Size: 60Width mm x 100Height mm - Functional benefits of La Viva: o Pure taste o No flavor o 100% natural ingredients o Soy milk packaged in sterile paper everyday for hygiene and convenience - Emotional benefits: o Nourish from inside out o Responsible ingredients o Sustainable packaging o Sharing profit - WHY La Viva? Environment Synthetic Fertilizers Free Pesticides LA VIVA Community Health Page 30 Environmental & health practices - It maintains and increases soil fertility and guarantees the long-term productiveness of the land using techniques such as crop rotation to prevent the depletion of the soil - It uses insects to prey on pests so that there is no need for chemical insecticides and adding composted manure to the soil to keep it nutrient-rich - Its papers are sourced from sustainably managed forests, and it continues to seek out the most environmentally friendly options for its packaging - Health: La Viva is rich in protit, lipid, casein protein, and full of amino acids, vitamins, and mineral salts for the development and maintenance of human body La Viva helps reduce body heat, and care women's beauty and memory thanks to its zoflavo antioxidant - The sterilization technology of La Viva processes Soy milk at high temperature (138 - 140 degree C) during about seconds, and then refrigerates milk quickly to retain all its flavor and nutrition value Thus, sterilized soya milk in sterile paper packing can be fresh in a long time but does not need any preservative or keeping in cool condition Page 31 Product summary “A Friend to wake up the inside beauty”       Nourish from inside out, sustainable packaging  Pure taste, no flavor, 100% natural ingredients & responsible ingredients Innovative Responsible Sociable Active Feminine  Package: Green & White  Pure Taste 5.3.2 Pricing of La Viva Pricing strategy will help La Viva to pool its consumers and influence retailers to push La Viva to end-users Especially a higher margin for retailers is a key factor to influence them to bring La Viva to customers Page 32 Below is the pricing analysis table which indicates the trade pricing structure of key competitors in the market: (common package size: 200 ml) Retailers Brands La Viva Fami & Vina Soy Vfresh Number One Buying Price (VND w/o VAT) 5,300 Selling Price (VND w/o VAT) 6,000 Gross Margin (VND w/o VAT) 700 % Gross Margin 12% 3,200 3,400 4,400 3,500 3,700 4,800 300 300 400 9% 8% 8% Table 5.1 Price Index (Compared to La Viva) 100% 58% 62% 80% Pricing Analyses for La Viva Source: Collecting from market research Price Index illustrates that La Viva price is more expensive than other key players, however as mentioned La Viva’s target consumer is from middle – end and above, for those who especially see the uniqueness of La Viva product which contains 100% natural ingredients that are rich of good sources of protein as well as containing high Calcium, and moreover having friendly environmental images through all communication channels as well as marketing activities Page 33 5.3.3 Distribution of La Viva Distributor La Viva Small Coffee Shop 10% sales share Figure 5.1 Convenient Store (SHOP & GO; CIRCLE K; 40% sales share Supermarket (Lotte Mart, Citimart, Co-op Mart) 50% sales share Distribution Channel Organizations La Viva will focus 50% of its share on Supermarket mostly in big cities like Hochiminh, Hanoi & Hai Phong And another 40% of share is from most of popular Convenient Stores like Shop & Go, Circle K where everyone can easily pick up their breakfast or snack nearby office or during shopping time, etc Especially La Viva will be also distributed in big coffee shops, where customer go there and tend to order fruit juice, but they also can enjoy La Viva that can be served in a fancy glasses, or even can be mixed with another flavor like Chocolate or Corn and Yogurt, fruit In order to achieve 10% of share from Coffee Shop, La Viva will have to win everyone about their in-store communication Page 34 5.3.4 Communication Strategy of La Viva  Communication Objectives  To make La Viva brand of Soy milk the preferred brand of 22-40 years old females in Vietnam  To increase La Viva awareness among target audience  To building loyalty customers via word of mouth  Position La Viva “A FRIEND TO WAKE UP THE INSIDE BEAUTY” Moreover, La Viva is a symbol of Environmental-friendly product and it is community and social care  Communication Messages Stage 01: Reality of Soy Milk Stage 03: La Viva – Your Friend Figure 5.2 Stage 02: Does the current brand satisfy you? Stages of Communication Page 35  Stage 1: Reality of Soy Milk In order to care and protect the skin effectively, besides the methods of avoiding sunlight, it is necessary to set a diet full of nutrients Soy milk is a drink good for health, delivering easily digested vegetable proteins It helps reduce bad cholesterol in blood; plays a role as antioxidant with vitamin E for a youthful skin and body It is recommended to drink soy milk being produced upon sterilization technology for the sake of health  Stage 2: Does the current brand satisfy you? Most of current local brands in the market don’t have strong positioning They’re seen as a brands that good for health, especially human’s hearth The consumers not yet see the difference between brands, so that they easily switch to another brand or even can buy many different brands at the same time  Stage 3: La Viva – Your Friend La Viva Communication will be “A Friend” to help sophisticated women to nourish their body from inside out La Viva is bringing out an image of community and social responsibility Therefore, La Viva is the way for consumers to show their concern “Every La Viva they support for, every carbon footprint emission they may save” Page 36  Communication Tools  Successful communication is based on the below three important elements: COMMUNICATION UNDERSTAND THE BENEFIT NEED THE PRODUCT Figure 5.3 BRAND TRUSTING Success Elements of Communication COMMUNICATION PLAN Press Advertising on Beauty Magazines Online PR Press Advertorial Social Network (Facebook) Beauty Events; Nutrition and environmental education Program (Theme: Good for you & Good for environment); Iphone Application Print Ad Brand Website Ambassador Celebrity Release Radio Table 5.2 Communication Mix Page 37 CHAPTER 6: CONCLUSION Soya market is increasing its market value because of changing of lifestyle and with hard work and stress have negative impact on the health of a person Soya market is becoming more and more lucrative market manufacturers to penetrate into As life is getting busier, consumers tend to buy packaged soya milk, it’s recommended to drink two boxes of soya milk packaged in sterile paper everyday for hygiene and convenience With the qualitative research, the thesis did found out the required functional and emotional benefits of target consumers, and then proposed a soy milk brand La Viva to meet all consumers’ insight La Viva is developed based on the findings of research to optimally satisfy the consumers’ needs and desires Together with competitive price strategy, La Viva not only attracts consumers in premium segment, but also influences retailer to push it thanks to competitive margin However, La Viva still confronts with some challenges since it is the new brand with low brand awareness And loyalty of soy milk from consumers still exists; it is not easy to trigger consumers to use other brand if familiar brand well delivers its function Other challenges come from the strong competition of local brands and also their financial capability Page 38 REFERENCE A DOCUMENT OF MBMM-4 COURSE Claire Gruslin, Market Research, BIS & Competitive Intelligence Jean Pierre Baeyens, Strategic Marketing Management Stephane Paulus, Management Accounting & Control Systems B BOOKS Peter Wennström (2009), Wennstrom's Four Factors of Success: A Simple Tool to Innovate Healthy Brands Philip Kotler (2000), Marketing Management Millenium Edition Robert Y Cavana(2001), Applied Business research: Qualitative and Quantitative Methods William M Luther (2001), The Marketing Plan: How to Prepare and Implement It Page 39 APPENDIX Appendix 01: Discussion Guidelines OBJECTIVES  To understand consumers’ perception on soy-milk and the role of soy-milk: o Usage & attitude towards a soy-milk o Triggers & barriers  Define the potential soy-milk ideas INTRODUCTION  Introduction of research  Respondent’s introduction o Name, job, age… o Family, kids…  How you think about your current life? What makes you happy / unhappy in life?  How you think about your current health? What makes you concern in life?  What you in your free time?  How you entertain yourself? o Media habit? o Activity? CONCERN & HEALTH IN GENERAL  What are your concerns when taking care of your health? Why?  What are your expectations for your health’s improvement? Which factors you care the most? Why?  What comes to you mind when I say “Health”?  How you evaluate your current Health repertoire? o What makes you satisfied? What are the unmet needs? o What you expect to make it better or you need any improvement? SOY-MILK BRAND ASSESSMENT  What brands of soy-milk are you aware of? How you know those brands?  What comes to your mind when I say brand AAA? ( One by one – Vfresh, Fami, Vinasoy, Number One, etc ) o Impression/ strengths / weakness for each brand? Page 40              o Marketing activity of each brand? o Personification for each brand? What brand are you using? o Who makes decision of that brand? o Factors make you choose it? Why? How long have you used that brand? When you use this brand? On which occasion? Which brand did you use before it? How you shift to the current brand? Why did you switch to this current brand? If we have a new brand of a soy-milk with better functional benefits than your current one, how is it possible to switch to this brand? What should we to convince you to switch to this brand-new brand? What you think about the current soy-milk in the market? What are the differences amongst the brand What is the strengths and weakness of each brand? What are the roles and benefits of each brand? What you expect from a soy-milk? What are your unmet needs with your current soy-milk? Which flavor you think is the best for your taste? Why? THANKS AND INCENTIVES Thank you ... from plantations that respect and enhance local human, social and environmental Sustainable Packaging We want to lead the local market in sustainable packaging While our packaging must first and... Euromonitor International Figure 4.2 There are two main kinds of packaging for packaged soy milk, glass bottle and carton Because of busy life and convenience of carton pack, the carton pack is gaining... 4.2.1 About La Beaute La Beaute runs its operation by sourcing its carton packaged soy milk from packaged manufacturer in Thailand and import goods to commercialize imported in Vietnam market