Communication strategy for number 1 strawberry energy drink

MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HOCHIMINH CITY TỐNG THỊ MỸ HẰNG COMMUNICATION STRATEGY FOR NUMBER STRAWBERRY ENERGY DRINK MASTER’S THESIS In Business Administration Ology code: 60.34.05 Supervisor Dr NGUYỄN THỊ MAI TRANG Ho Chi Minh City 2010 i Acknowledgement Firstly, I would like to express my heartfelt gratitude to my tutor, Dr Nguyen Thi Mai Trang for all her guidance, valuable advices, comments and suggestions when I was conducting the survey and writing my dissertation Thank you for sparing time to review my report even though it was a tight schedule for you and me I am sincerely grateful to all the survey respondents and interviewees who have take precious time off to allow me to conduct the study and gain insights into consumer perception and response I would also like to express my deepest appreciation to all my friends and family for their unwavering support and faith in me Lastly, I would like to thank everyone else who has helped me in one way or another in making this project possible Thank you so much Ho Chi Minh City, Oct 25th, 2010 Tong Thi My Hang i TABLE OF CONTENT Acknowledgement i LIST OF FIGURES vi LIST OF TABLES vii LIST OF GRAPHS viii CHAPTER INTRODUCTION 1.1 Rationale of the project 1.2 Problem statement 1.3 Project objectives 1.4 Methodology 1.4.1 Qualitative method 1.4.2 Quantitative method 1.4.3 Data source 1.5 Scope and limitation 1.6 Structure of the project CHAPTER LITERATURE REVIEW 2.1 The role of Marketing Communications 2.2 Developing Effective Communications 2.2.1 Identify the Target Audience 2.2.2 Determine the Communication Objectives 2.2.2.1 Category Need 2.2.2.2 Brand Awareness 2.2.2.3 Brand Attitude 2.2.2.4 Brand Purchase Intention 2.2.3 Design the Communications 10 2.2.3.1 Message strategy .10 2.2.3.2 Creative strategy .10 2.2.3.3 Message source .10 2.2.4 Select the Communications Channels 11 2.2.4.1 Personal communications channels 11 2.2.4.2 Non-personal communications channels 11 ii 2.2.5 Establishing the Total Marketing Communication Budget 12 2.2.5.1 Affordable method 12 2.2.5.2 Percentage-of-sales method 13 2.2.5.3 Competitive-parity method .13 2.2.5.4 Objective-and-task method .13 2.2.6 Deciding on the Marketing Communications Mix 13 2.2.6.1 Advertising .13 2.2.6.2 Sales promotion 14 2.2.6.3 Public relations and publicity 14 2.2.6.4 Events and experiences .15 2.2.6.5 Direct mail 15 2.2.6.6 Personal selling .15 2.2.7 Measuring communication results 16 2.2.8 Manage integrated marketing communications .16 2.3 Advertising media trend 16 2.3.1 Television advertising 17 2.3.2 Print advertising 18 2.3.3 Radio advertising 19 2.3.4 Online advertising .19 2.3.5 Others advertising 22 CHAPTER CURRENT SITUATION .24 3.1 Overall about Number Strawberry 24 3.1.1 Background of energy drink 24 3.1.2 Number Strawberry 25 3.1.2.1 Product structure .25 3.1.2.2 Packaging focus 25 3.1.3 Number Strawberry’s SWOT analysis 26 3.1.4 Number Strawberry communication 27 3.2 3.2.1 3.2.1.1 Research result analysis 28 Focus group 28 Sample description 28 iii 3.2.1.2 Energy Drink Consumption 28 3.2.1.3 Energy Drink Awareness 29 3.2.1.4 Insight .29 3.2.2 Questionnaire 30 3.2.2.1 Sample description 30 3.2.2.2 Energy Drink consumption .31 3.2.2.3 Energy Drink Awareness 34 3.2.2.4 Media Consumption 34 CHAPTER 360 DEGREE COMMUNICATION PLAN .38 4.1 Objectives 38 4.1.1 Business objective .38 4.1.2 Marketing objective 38 4.1.3 Communication tasks and objectives 39 4.2 Market & Environment .40 4.3 Consumer & Target Groups 42 4.3.1 Consumer Profile 42 4.3.2 Target group 43 4.3.3 Consumer’s shopping habit 44 4.3.4 Consumer’s Media Consumption 45 4.4 Communication channel selection .46 4.5 Creative idea .47 4.6 Channel planning 48 4.6.1 Television approach 49 4.6.2 Print approach .49 4.6.3 Digital approach 50 4.7 Budget setting 52 4.8 Implementation 53 4.9 Tracking & Evaluation 53 Conclusion 54 REFERENCE 57 APPENDIX 1: METHODOLOGY .60 iv Data source: 60 Qualitative research .61 Quantitative research 62 Limitations of Research Methodology 63 APPENDIX 2: GUIDELINE FOR FOCUS GROUP 65 APPENDIX 3: QUESTIONNAIRE FOR SURVEY 67 APPENDIX 4: SOME PICTURES OF FOCUS GROUPS 72 v LIST OF FIGURES Figure 2.1 Integrating Marketing Communications to Build Brand Equity Figure 2.2 Steps in Developing Effective Communications Figure 3.1 Structure of energy drink of Tan Hiep Phat Group .25 Figure 3.2 Number Strawberry’s Pack Type .25 Figure 3.3 Number Strawberry’s Television Commercial (TVC) .27 Figure 4.1 The process of developing 360 degree communication plan 38 Figure 4.2 Communication tasks 39 Figure 4.3 Number Strawberry’s key competitors 41 Figure 4.4 Target Group 44 Figure 4.5 Communication plan 46 Figure 4.6 Communication idea 47 vi LIST OF TABLES Table 2.1 Number of title by genre 18 Table 2.2 Top websites in Vietnam .21 Table 3.1 Reason influencing the consumption of energy drink 32 Table 3.2 Criteria for choosing/buying soft or energy drink 33 Table 4.1 Profile of heavy energy drink 42 Table 4.2 Profile of light energy drink 43 Table 4.3 Media Consumption 45 Table 4.4 Campaign flow strategy .48 Table 4.5 Digital plan 51 vii LIST OF GRAPHS Graph 1.1 Category Spends by year Graph 1.2 Share of Spending by brand in energy and soft drink Graph 2.1 Total industry spend by medium 17 Graph 2.2 Last listened to radio by city .19 Graph 2.3 Total number of dot.vn domain names in Vietnam (‘000) 20 Graph 3.1 Age groups of respondents 30 Graph 3.2 Profile – Education of respondents .31 Graph 3.3 Drinking energy drink 31 Graph 3.4 How often you buy/drink energy drink 32 Graph 3.5 Brand of Energy Drink awareness 34 Graph 3.6 Advertising elements help in making purchase decision .35 Graph 3.7 Media Consumption .36 Graph 4.1 Media spend by brand 40 Graph 4.2 Magazine index 49 viii CHAPTER INTRODUCTION 1.1 Rationale of the project Nowadays, Vietnam has become a very attractive market for both international and domestic players Demand for soft drinks or energy drink in Vietnam is very high and the current production still cannot satisfy demand It is expected that in next period, the market of soft drink or energy drink in Vietnam will continue to maintain its strong growth Graph 1.1 Category Spends by year Source: Kantar Vietnam (TNS) According to the above graph, the energy and soft drink grew year by year, especially in 2009 The growth is 94% (from $ 8,218,000 in 2008 to $ 15,926,000 in 2009) In this year, the market beverage industry growth in Vietnam became more competitive in terms of the number of players entering or competing for market share Both old and new brands need a lot of marketing supports as well as communication strategies in order to make them stand out from competitors The − Johnston C et al (2007), Red Bull Energy Drink – Integrated Marketing Communication Plan, http://www.scribd.com/doc/2444837/Integrated- Marketing-Communications-Plan-for-Red-Bull-Energy-Drink − Slideshare (2009), Red Bull, It Gives You Wiings, http://www.slideshare.net/neha17tyagi/redbull-energy-drink# − Chibber N (2006), Is there a market for energy drink in India, Business Standard, http://www.rediff.com/money/2006/may/24drink.htm − The Student Room, SWOT analysis on Red Bull, http://www.thestudentroom.co.uk/showthread.php?t=986602 − Yaqoob M., Redbull Marketing Strategy, The Red Carpet Broadcast, http://www.trcb.com/business/marketing/redbull-marketing-strategy7375.htm − Drawert S., Marketing Strategy of Red Bull, http://www.drawert.com/red_bull_2.php − FactExpert, Adding Energy to Beverage Industry: A New Drink, http://energydrinks.factexpert.com/882-energy-drink-industry.php − The International Communications Development Research Strategy, Centre, Developing a http://www.idrc.ca/uploads/user- S/11606746331Sheet01_CommStrategy.pdf − McGraw-Hill Companies (2004), An Introduction to Integrated Marketing Communications, http://www.slideshare.net/ves_quan/chap01-an- introduction-to-integrated-marketing-communications-presentation − Li H., Advertising Media Planning: A Primer, Michigan State University − Wikipedia, Integrated marketing communications, http://en.wikipedia.org/wiki/Integrated_marketing_communications − Powell I., Integrated Marketing Communication: Control of the various elements, http://www.youtube.com/watch?v=_TWnGGIELBA 58 − Powell I., Integrated Marketing Communication: What is IMC? (Integrated Marketing Communication), http://www.youtube.com/watch?v=7QdiSAoLaJM − Google Business, Search advertising and Google AdWords, http://www.youtube.com/watch?v=flnbGU9SGzg&playnext=1&list=PL6452 946170B37988 − Blacksheepa, How to Create http://www.youtube.com/watch?v=8OAv0nZ8IzU 59 a Media Plan, APPENDIX 1: METHODOLOGY This part describes in details about the research method, how to collect primary and secondary data, how to conduct the qualitative and quantitative research It also describes about the sampling method and questionnaire design for the qualitative and quantitative purpose Data source: Gordon (1995) pointed out marketing research routinely utilizes many types of data and information The single most prevalent type is data and other pieces of information that were first collected for another purpose When such data are used in a particular marketing research project, this use is then the second use and the data are correspondingly referred to as secondary data The title does not signify secondary importance, minor value, or inferior quality These data are collected and analyzed first, before primary data, in most marketing research projects The secondary data in this project was collected from: − Some reports of Kantar Vietnam (the new brand name of TNS Media): including media spending (television, print, radio) as well as media habit of all target audience in Vietnam − Magazine, journals, articles: including overall information of industry, market share and market volume as well as communication trend nowadays − Internet: including some other past researches that can be referred to make the project strongly persuasive − Youtube: including some video clip about communication strategy or some innovative ideas in communication of famous brands − Wikipedia: some definitions concerning research, or communication 60 The primary data was processed from the results of qualitative research, i.e the focus groups discussion among target consumers, together with the raw data of quantitative research which was a survey with a sample size of 150 respondents in Ho Chi Minh city Qualitative research Qualitative research involves collecting, analyzing and interpreting data by observing what people and say Ghuri & Gronhaug (2005) stated that Qualitative research especially relevant when prior insights about subject of study are modest, implying that qualitative research tends to be more exploratory and flexible with an emphasis on understanding The most common ways to conduct qualitative research are focus group discussion, in-depth interview, and ethnography (or ethnographic observation) After reviewing past research and evaluating the benefits and disadvantages of various research methods available, for the purpose of project, in this research, the focus group was used According to Wikipedia, a focus group is a form of qualitative research in which a group of people are asked about their perceptions, opinions, beliefs and attitudes towards a product, service, concept, advertisement, idea, or packaging Questions are asked in an interactive group setting where participants are free to talk with other group members The aim of the qualitative research for this particular project was to provide a greater understanding of what needs to be studied and understood in the areas of consumer behavior and the effects of promotion and communication Qualitative research examines the attitudes, feelings and motivations of a product user It is characterized by small sample and it can improve the efficiency of quantitative research (Proctor 2005, 222) The focus group in this project was designed as following: 61 − Target demographic: o People aged from 15 to 20 o The respondents chosen to participate are Number Strawberry’s target consumers − Sample: o 14 pupils and students from 15-20 years in Ho Chi Minh city o They are young, dynamic, and often drinker of soft drink or energy drink with their friends o They are extrovert who love music and fashion − Timing: o The focus group was scheduled within August 2010 − Research objective: o The discussion was designed to understand how consumers perceive soft and energy drink in general and Number Strawberry brand in particular − Method: o The interview was conducted in half a day Occasionally a little “chit chat” was included to create a friendly environment Quantitative research Following Ghuri & Gronhaug (2005), quantitative research employs numerical and standardized data in the collection of results and analysis is conducted through the use of statistics and diagrams Quantitative research is used to measure how many people feel, think or act in a particular way Quantitative research can also be used to measure consumers’ awareness and attitudes to different manufacturers and to understand overall customer behavior in a market Structured questionnaires are usually used incorporating mainly closed questions - questions with set responses The interview in this project was designed as following: 62 − Target demographic o People aged from 15 to over 30 − Sample o 150 respondents in Ho Chi Minh city o They are male or female They are often drinker of soft drink or energy drink − Timing o Within August 2010 − Research objective: The questionnaire was designed: o To measure brand awareness of Number Strawberry amongst other soft and energy drink brands o To try to determine levels of consumer desires and usage of soft and energy drink products o To try to evaluate effectiveness of the communication plan as well as media channel − Survey method o The questionnaire process was done via survey online, electronic mails, and through face-to-face conversation Limitations of Research Methodology Due to time and resource constraint, the small size of the sample used in both the questionnaire and focus group discussion limited the accuracy of the results Moreover, the target respondents for both questionnaire and focus group live in Ho Chi Minh city only due to resource and time consideration This limited the applicability of the research data on general consumers as a whole As described above, the marketing communication tools are advertising, publicity, personal selling, and sales promotion Due to time constrain, the project was conducted based on only mass media tools like television, print, radio and interactive (digital advertising, out of home advertising, etc.) 63 Besides, there were also limited availability and access to corporate information due to trade secrets and business confidentiality Therefore, there is a need for more investigation and analysis in order to have a more complete picture about communication strategy for energy drink 64 APPENDIX 2: GUIDELINE FOR FOCUS GROUP Good afternoon, I am Tong Thi My Hang Today I would like to invite you to take part in focus group to discuss about soft and energy drink All of your answers/ideas are valuable for this research study Thank you very much for taking the time to meet with me Q.1 Do you drink energy drink? (Yes move to question 4) Q.2 If not, why don’t you drink? Q.3 What is your favorite beverage? Q.4 When the last occasion you drank energy drink and what were you doing at that time? Q.5 When you usually drink energy drink? 65 Q.6 Where you take energy drink? Q.7 Why you choose energy drink? (Mental stimulation, Physical stimulation, Or purely for the enjoyment of taste?) Q.8 Which energy drink brand you choose? (Number Regular, Number strawberry, Sting regular, Sting strawberry, Sting kiwi, Samurai, Red Bull) Q.9 What is your hobby? Q.10 What is your motivation at this time? Q.11 What you think about “dare to think - dare to do” 66 APPENDIX 3: QUESTIONNAIRE FOR SURVEY Do you drink energy drink?  Yes  No (If No, continue to the Question number7) How often you drink/buy energy drink?  1-3 times a week  4-6 times a week  More than times a week  Rarely (fortnightly) Do the following reasons influence your consumption of energy drink? It provides enjoyment It satisfies my basic thirst and is filling It gives me vitality and energy It relaxes me mentally I drink the same soft or energy drink as most of my friends = strongly disagree     = strongly agree                      Rank the following soft or energy drink from to 5, with being least preferred and being most preferred 67 Coca-Cola Pepsi Number tea Dr Thanh tea Sting Sting strawberry Number energy drink Number strawberry Samurai Aquafina La vie = least preferred     = most preferred                                               Please give your criteria for choosing to buy soft or energy drink These criteria are rated from to (1 is completely not important and is the most important to you) Flavor & Taste Easy to buy Good choice for many people Reasonable price Impressive advertising Good quality Having promotion Foreign brands Nice packaging Brand value/brand name Brand ambassador Good manufacturer Many pack types = not important         = most important                                                          68 When you are purchasing soft or energy drink which of the following helps you make a purchase decision?  Ads on television  Ads on the radio  Ads in newspaper  Ads in magazine  Recommendations from a friend/family member  Poster on transport/street/store  Ads on internet  Search engines  Comments on blogs/chat room/forums  In-store display/position on shelf  None of above Please indicate how often you see, hear or each of the following activities 69 Watch television Listen to the radio Read a newspaper Read a magazine See a poster See a billboard See a large TV screen in a public place Go to the cinema Go to a live music concert Go to a live sport events Use the internet for email Use the internet for information (news, research, etc.) Use the internet to communicate with others (e.g instant messaging, Skype, Yahoo chat, etc.) Use the internet for social networks Use the internet for entertainment (watching TV, gaming, etc.) Use an online search engine Mobile phone for calls Mobile phone for the internet Mobile phone for text messages Not very often (about once every Never six months)             Once a month on average       Once a week on average       Very often/most days                                                                        70 Now I would like to know a little more about you Are you?  Male  Female How old are you?  15 – 18 years old  19-20 years old  21-22 years old  23-25 years old  26-30 years old  Over 30 years old 10 And your education?  Pupil - high school  Student – freshman or sophomore  Student – junior or senior  Grad student Thank you for your participation The collected information will be used to create a research study 71 APPENDIX 4: SOME PICTURES OF FOCUS GROUPS Bao Tran & Hien Tran – 15 years of age Trinh – 15 years of age & Ngoc – 18 years of age Phu – 19 years of age Phat – 18 years of age 72 ... – 39 years-old 40 years-old plus 29 29 25 17 17 7 11 1 11 9 50 A B C D E 11 12 36 32 13 3 87 10 2 10 1 82 Redbull Number one Sting Lipovitan Samurai Others 19 33 44 Age Social economic class ED brand... brand in energy and soft drink Source: Kantar Vietnam (TNS) Within the Number Energy Drink portfolio (Number Regular, Number Chino, Number Strawberry) , communication activities for Number Strawberry. .. .24 3 .1 Overall about Number Strawberry 24 3 .1. 1 Background of energy drink 24 3 .1. 2 Number Strawberry 25 3 .1. 2 .1 Product structure .25 3 .1. 2.2 Packaging