Subject: "Making a Marketing Plan for Dr Thanh herbal tea product of Tan Hiep PhatGroup in 2013" FOREWORD Want to succeed in business, enterprises and entrepreneurs must have fully under
Trang 1Subject: "Making a Marketing Plan for Dr Thanh herbal tea product of Tan Hiep Phat
Group in 2013"
FOREWORD
Want to succeed in business, enterprises and entrepreneurs must have fully understanding the market, the needs and desires of customers, the art of conducting in business
Nowadays, businesses must operate in fiercely competitive environment and the rapid changes in science and technology, new policies, new laws and customer’s loyalty is diminished
Marketing which is the science of the study of business activities, directly relates the line
of merchandise - services from the producer to the consumer, in order to find effective measures
to protect and develop market Marketing is also applied in many areas of society Today, Marketing plays a key role in the shift of customer‘s information into products, new services, and then locates these products on the market
Marketing Management is an important issue that any manager can not overlook, Marketing Management aims to create, build and maintain beneficial exchanges with buyers that business towards to achieve the organization's objectives: to maximize profits, generate customer’s satisfaction and maximize the choice
To apply the theoretical knowledge in marketing management activities of a business, our group is assigned the theme: "Making a Marketing Plan for Dr.Thanh herbal tea product of Tan Hiep Phat Group(THPG) in 2013"
Trang 21 The Dr Thanh herbal tea product.
1.1 The Introduction.
After a period of research and testing, on December 22nd, 2008, the Dr.Thanh herbal tea product was appeared in the market with the slogan "Take the body out of heat, do not worry about being hot." This product was launched in the New Year event This is the time when people tend to focus on fun activities with high frequency, combines with the eating habits of Asians is preferred with the fried dishes It causes the feeling of "hot inside the body", it is not the disease but it is very harmful for health THPG has launched the herbal tea products to the market
Dr.Thanh is a response to the wishes of the customer at the right time THPG goal of giving Dr.Thanh not only receives profit from high investment, but also has the reputation and image of a company about the product ensuring the quality, reputation and credibility in the market THPG not only wants to occupy the majority of the domestic market in the near future, but also outreaches’ to Asian countries, the U.S and Europe in general development’s trend of the world economy
THPG has the ambition of turning Dr.Thanh becoming a national brand THPG wishes that every reference to "Take the body out of heat "-The Marketing Plan for Dr.Thanh herbal tea product in 2013, every Vietnamese citizen think about the image of Dr.Thanh herbal tea product
Trang 32 The market and target customers
Target customers of the product Dr.Thanh are all ages, especially young and active people, people having no time and often have to participate in the celebrations, or using alcohol, stimulants , causing "hot inside"
Currently, Dr.Thanh is a product for all ages (from the elderly to the children), all market segments, and the products have not personalities which are geared towards any specific objects But in general, and food - drinks in particular till now, there is a few products having successful approach to all segments of consumers Therefore, the company needs to redefine the target market, in order to focus resources, reduce costs, and increase profits: The target customer group is focused on the customers of working much, eating hot spicy food at young age from 22
to 30 and middle-aged from 30 to 50
3 The description about the product.
Dr.Thanh herbal tea is extracted from herbal ingredient; it is not only a beverage, no gas,
no preservatives, no artificial coloring, but also beneficial to human health
Trang 4The main materials used to produce Dr.Thanh Herbal Tea include some kinds of herbal such as: honeysuckle, chrysanthemum, fruit of grosvenor momordica, Prunella vulgaris L, licorice, ”đản hoa”, “mộc miên” flowers, Microcos panicutula L , Mesona chinensis Benth The unique combination of nine herbals have been researched by the scientists from the Army Medical Research Institute of Planning and Marketing for Dr.Thanh herbal tea product in 2012 and they confirmed that it has the cooling effect, the purification can, antioxidants, promote health to the body
Colors Packaging: main colors are red and black This product has inherited the unique about the THPG’s product packaging With the kind of packaging such as PET bottles, glass bottles, Tetra Pak boxes and cans, Dr.Thanh product has really attracted consumers, be suitable for market
Price: The retail price of PET bottle is 7000-9000 USD per bottle
4 Analyze the revenue and profit of Dr.Thanh herbal tea product.
4.1 Analyze the market.
Beverage in Vietnam is considered an industry with high growth rate despite the economic crisis in the world Many brands of beverage having revenue increase 800% per year With 2 billion liters of soft drinks in 2010, per capita consumption of Vietnam is more than 23 liters If compared with the gap of 6 years, the growth rate from 3 to 23 liters is also significant
Trang 5In recent years, the general trend of the beverage market is the strong decline of carbonated soft drinks and the growth of non-carbonated drinks According to the general, the recent market shows a very clear shift in the bottled water industry According to a survey by market research companies every year, while carbonated soft drinks fell 5% market share, the product having natural source is up to 12% Therefore, the beverage production company positively invests the chains, equipments and technologies that exploit the diversify fruit, green tea, herbal and mineral water rich in countries, processes into the drink taste, rich in nourishing vitamins for health meets the consumer’s tastes
Tan Hiep Phat Group has a huge investment in manufacturing of soft drinks from herbs, natural tea The company has launched 20 products, such as the green tea, Dr.Thanh herbal tea, fruit juices from tamarind, sour sop, passion fruit, soy milk, and energy drinks Number one After a period of research and testing, on December 22nd, 2008, Dr.Thanh herbal tea product is marketed This product is a huge success for the group
With the slogan "Take the body out of heat, do not worry about being hot" for almost 3 years of existence in the market, the product is still a major hit with consumers Since planning for the introduction of products, THP Group has identified its target market which is every consumer in all ages Product of Dr.Thanh is suitable and can meet the cooling needs of all ages, from the elderly, youth, and children Therefore, the market which the product towards, is a large market, the high consumption ability At the same time, the product will also be under pressure because it must have to meet the needs of all customers
Trang 6Despite facing with many challenges and pressure from large target-customers, the Dr.Thanh herbal Tea product still has the most successful The greatest success is the receiving
by customers With the large investment costs for advertisement, the image of Dr.thanh gradually captures the feelings of customers: from suspicion to curiosity, and from curiosity to the trial, and after trial, most customers will perceive the quality and usefulness of this tea on human health
Table 01: Forecast the demand for product:
Unit: % Year
Prolonged hot spell, together with the needs of cooling, Dr.Thanh herbal tea product is favored by consumers, is mainly drinks in the meals, parties, picnics From the table of forecasting the demand for product, we find that Dr.Thanh herbal tea is expanding market, the sales growth increases in the coming years
4.2 Estimate the revenue, profit of Dr.Thanh herbal tea product
Table 02: Estimate the revenue and expenses:
Unit: Dong Year
Trang 7Revenue 12.587.400.563.200 15.896.325.300.258 18.536.975.425.100 Cost 10.258.799.658.342 12.589.635.200.147 14.879.652.310.470 Profit 2.328.600.904.858 3.306.690.100.111 3.657.323.114.630
4.3 The break-even point.
Call:
F: is the total fixed cost
V: is the variable cost per unit of product
P: is the price per one unit of product
Q: is the number of products sold
Then:
Revenue = P * Q
Total cost = F + (V * Q)
Profit = Revenue - Total Cost
At the breakeven point, profit is 0
Break - Point event = F / (P - V) =
Breakeven point is the point at which total revenues equal total costs In other words, at the break-even point, revenues start to have profits
Identify the break-even point to:
Set a reasonable price
Achieve the most effective result in combination of fixed costs and variable costs
Identify to attract and allocate the finance in the different strategies of the enterprise
Be used in analyzing the effectiveness of business projects
Trang 8Table 03: Determine the break-even point of Dr.Thanh herbal tea product.
The total fixed cos 5.789.257.400.125 6.897.543.215.000 8.745.258.413.237
The quantity of products
Revenue 12.587.400.563.200 15.896.325.300.258 18.536.975.425.100 Cost 10.258.799.658.342 12.589.635.200.147 14.879.652.310.470 Profit 2.328.600.904.858 3.306.690.100.111 3.657.323.114.630 The break-even point 1.122.089.397 1.193.900.907 1.307.071.757
5 The detailed plans of 4P
5.1 Product
Innovate and renew the product:
5.1.1 What are the research and the development of product?
This is the investigation of a business for the purpose of considering the possibility of developing new products and processes aim to improve products and existing processes The research and development are the way in which businesses may consider to evaluate the potential for future growth by developing or improving new product, completing and expanding the company's operations
The research and development activities play the platform role for long-term success of the business In the hard times, companies tend to cut this expenses, which are generally the expenditure for science and technology, to create new product, new process and service _ this set of parts have the highest capital in the cost structure of the business However, investors should note that any businesses cut the investment for R & D too much, then that business will not only have difficulty in the present but also may affect growth rate in the future
Trang 95.1.2 Who are in the implementing team?
Group of implementing the research and developing product, includes the staff of the Planning Department in manufacturing company They are knowledgeable about the products and strategies of most companies
5.1.3 Other Resources
For the success in the implementing plan, the Department of production planning needs
to be supported from the market research experts to forecast the product’s demand and supply in the market, the level of consuming
5.1.4 Expenses for researching and developing product
Table 03: Estimate the costs and resources for R & D.
Unit: Dong Year
The human cost 80.531.577.318 98.828.636.321 116.805.270.637 The equipment cost 29.237.579.026 35.880.460.320 42.407.009.085 The other resources (if available) 18.465.839.385 22.661.343.360 26.783.374.159
The costs of researching and developing are based on the production of business, the human resources, the financial resources and capital to make the promotion’s plan of Dr.Thanh herbal tea product, to improve the sales and to expand the consuming market
5.2 Price
5.2.1 What is the Product Valuation?
Price is one of four important variables of marketing mix Price plays a decisive role in purchasing this or other goods of consumers For the company, price has the competitive
Trang 10position in the market The pricing of products is important for enterprises because it directly affects the sales and profits
Price set by the company that will be in the range between a too low price- no profit and other is too high- have no any demand The cost of the product will form the foundation for the price The consumer's perceived value of products makes in height The company must consider the price of competitors, and the internal, external factors to find the optimal price of 2P's The companies resolve the price valuation by choosing a generalized approach between the three types on the basis of such considerations
o The valuation is based on the cost
- Cost-plus pricing
The most rudimental valuation method is adding a goal profit: we can use the formula:
G = Z + m
G is the unit price of the product
Z is the cost per unit of the product
m is the target profit,%, m can be calculated as % of cost or price
However, this method does not account demand and competition on the market, there are also certain disadvantages An alternative approach of valuation method in cost and target profit
is using the method of defining the breakeven point
o Valuation based on the buyers
More and more companies set prices based on the value of the products felt They see the value perceived by the buyers, not the sellers’ cost, as the key to set price They use non-price variables in the coordination of marketing to build perceived value in the minds of buyers Price
is set out to achieve that perceived value The Company uses the valuation of perceived value set in the sense of buyers in relation to other competive products
o Valuation based on competition.
Quotation based on price time:
When quotation is based on price time, the companies base primarily on price of
competitive parters, pay attention less to expense or demand It can evaluate equal, higher or lower than the partners Small companies follow the leaders Setting price on the date is very
Trang 11popular, where elasticity of demand is difficult to measure, the prevailing price represents the collective wisdom of all industry that generates adequate revenue Valuation on time price will preserve the harmony of the whole industry
o Bidding valuation
The value is based on the dominant competition ruling firms to bid to get work Company quote price based on the competitors If the enterprises want to win the contract, they have to lower valuations compared to other firms The company can not lower the cost without prejudice to its position But if the valuation is higher than expense, the contract may reach fewer and fewer lucks Net results of the two opposing traction can be described by the expected profit term of a particular bidding Using expected profit as a standard to write the price is the significant value to the large company that is implementing several tenders
5.2.2 Who made product pricing?
The implementation of valuating Dr herbal tea products Thanh is incharged by technical department This Division is responsible for collecting data on production costs, market prices, the Company's strategy for conducting product pricing Selling price is determined based on the above criteria
5.2.3 Other resources
Valuation is mostly done by the manufacturing techniques department but still have the support from the executive producer, research laboratory and development, production planning department
5.2.4 Cost of the product
Year