Marketing strategy for launching slim slim in 2011 a product belongs to the anti obesity market slimming food supplement category

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 Pham Thi Thanh Thuy December 14, 2010 ACKNOWLEDGEMENT Firstly, I would like to express my appreciation to Dr Nguyen Thi Mai Trang, my project tutor, for all her valued guidance and expert advice in the preparation of this project Special thanks to my mentor for her personal encouragement and 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 STRATEGY FOR LAUNCHING SLIM SLIM IN 2011 A product belongs to the anti-obesity market & slimming food supplement category   Prepared by Ms PHAM THI THANH THUY meets the requirement for a business project at the master’s level It is recommend that Pham Thi Thanh Thuy present her project to the Committee Hochiminh City, December 9th, 2010 _ Tutor’s signature Nguyen Thi Mai Trang TABLE OF CONTENTS   1  CHAPTER I INTRODUCTION   1  1.1  VIETNAM BEAUTY INC   1  1.2  PROJECT BACKGROUND   2  1.3  SCOPES AND LIMITATIONS   2  1.4  PROJECT OBJECTIVE  . 3  1.5  PROJECT’S METHODOLOGY   3  1.6  DESCRIPTION OF CHAPTER ORGANIZATION   5  1.7  SUMMARY   5    2  2.1  CHAPTER II LITERATURE REVIEW   6  MARKETING MIX   6  2.1.1  The Product  . 7  2.1.2  The Price   9  2.1.3  The Place   10  2.1.4  The Promotion   10  2.2  TARGET MARKET   12  2.3  POSITIONING   12  2.4  ATTITUDES AND BEHAVIORS OF CONSUMERS   13  2.5  2.6  2.4.1  Consumer behaviors  . 13  2.4.2  Consumer attitudes  . 13  2.4.3  Brand loyalty   14  2.4.4  Brand equity   14  CONSUMER RELATIONSHIP MANAGEMENT   14  2.5.1  Different types of consumer relationships   14  2.5.2  Building long term partnerships   15  SUMMARY   16    3  CHAPTER III OVERVIEW OF VIETNAM BEAUTY INC AND  . 17  ITS SLIM SLIM PRODUCT  . 17  3.1  EXTERNAL FACTORS   17  3.1.1  Political and legal   17  3.1.2  Market situation   17 3.1.3  Social-cultural  . 19  3.1.4  Technological  . 20  3.2  THE CORPORATION  . 21  3.3  THE CUSTOMER   21  3.4  THE COMPETITORS   23  3.5  SWOT ANALYSIS   24  3.6  3.5.1  Strengths  . 25  3.5.2  Weaknesses   25  3.5.3  Opportunities   25  3.5.4  Threats   25  SLIM SLIM PRODUCT   27  3.6.1  Product sustainable competitive advantages   28  3.6.2  Effect of Fiber and Psyllium   28  3.7  COMPETITIVE LANDSCAPE  . 29  3.8  KEY TO SUCCESS   35  3.9  SUMMARY   35    4  CHAPTER IV MARKETING STRATEGY   36  4.1  MARKETING OBJECTIVES   36  4.2  FINANCIAL OBJECTIVES   36  4.3  TARGET MARKET   37  4.4  POSITIONING   39  4.5  MARKETING MIX   40  4.5.1  Product   40  4.5.2  Price   41  4.5.3  Advertising and Promotion   42  4.5.4  Places/ Distribution channels  . 45  4.6  BUDGETING   47  4.7  IMPLEMENTATION MILESTONES   48  REFERENCE 50 APPENDIX A – QUESTIONNAIRE .51 APPENDIX B – SPSS OUTPUTS 58 Exhibit B1 – Brand awareness 58 Exhibit B2 – The brand was frequently purchased 58 Exhibit B3 – Weight of consumers 59 Exhibit B4 – Status of marriage 59 Exhibit B5 – Reasons to use slimming food supplement products 59 Exhibit B6 – Advertising Activities were aware .60 Exhibit B7 – Quality trustworthy slimming food supplement brand .60 Exhibit B8 – The most trusted source of information to choose a brand 61 Exhibit B9 – Places where to purchase the product 61 ABBREVIATIONS HCM Hochiminh (city) VBI The Vietnam Beauty INC Compnay DAV Drug Administration of Vietnam SPSS Statistical Package for the Social Sciences LIST OF TABLE Table 2.1 Common Communication platform 11 Table 3.1 Sales of Slimming Products by Subsector: Value 2004 – 2009 18 Table 3.2 Sales of Slimming Products by Subsector: % Value Growth 2004 – 2009 18 Table 3.3 Forecast Sales of Slimming Products by Subsector: % Value Growth 2009 - 2014 19 Table 3.4 Consumer Expenditure by Product Type – 1995/2000/2005/2010/2015 22 Table 3.5 SWOT analysis of VBI 27 Table 3.6 Data on historical market share 2006 – 2009 32 Table 3.7 Analysis on direct competitors 34 Table 4.1 Price Analysis in VND 41 LIST OF FIGURES Figure 1.1 Research design Figure 2.1 The Four P components of the Marketing Mix Figure 3.1 Brand awareness 23 Figure 3.2 Competitors of VBI 24 Figure 3.3 Psyllium most commonly used all over the world 29 Figure 3.4 The brand was frequently purchased 31 Figure 4.1 Weight of consumers 37 Figure 4.2 Status of marriage 38 Figure 4.3 Reasons to use slimming food supplement products 39 Figure 4.4 Advertising Activities were aware 42 Figure 4.5 Obesity health risks 44 Figure 4.6 Quality trustworthy slimming food supplement brand 46 Figure 4.7 The most trusted source of information to choose a brand 46 Figure 4.8 Places where to purchase the product 47 Page 1 CHAPTER I 1.1 VIETNAM BEAUTY INC INTRODUCTION Vietnam Beauty INC (VBI) is a totally new private company in the beauty industry The company offers the combination of health and beauty The company is solely engaged in promotion and distribution of high quality pharmaceutical products that carry health benefits as well as improving over all appearance from within The basic products are focused on health food items on skin whitening, skin rejuvenation, slimming, strengthening the immune system against diseases, external skin enhancers like organic whitening soaps, whitening scrubs, peeling sets, whitening creams, etc The company does the marketing and distribution for beauty products which be sourced by the international creditable manufacturer at the Vietnamese market through a strong system of local pharmacies over the country The mission of VBI is to provide best quality products that meet specific consumer’s requirements The company pledges to provide best service in a timely manner at fair, competitive prices For the coming five years VBI seeks to achieve the following goals: a) b) Non-financial goals i To be a well-known distributor in health product area in HCM city ii To add a new product every two years iii To enter Hanoi market Financial goals iv To obtain an average growing rate of 20% per year over time Until this moment, the company has not had any establishment in the market The company is implementing the exploration to launch their first product in the year 2011 Page 47 The rate showed in figure 4.8 can present the place that most of consumers usually go to pharmacies to purchase this kind of product Figure 4.8 – Places where to purchase the product – Exhibit B9 page 61 Therefore, currently, pharmacy is still the key channel for Slim Slim However, to increase usage penetration and off-take, VBI will also expand to make the product available in the modern trade ƒ Stage 1: Pharmacies ƒ Stage 2: Pharmacies & Supermarkets 4.6 BUDGETING This section will offer a financial overview of VBI as it relates to the marketing activities VBI will address five- year projection and indicate how these activities link to the marketing strategy Page 48 Slim Slim is able to earn positive profit in the year 03 This is a very good launch 4.7 IMPLEMENTATION MILESTONES Introducing Slim Slim to a competitive market is a complex task and requires that creative promotional activities gain consumer awareness and initial trial among the target market identified earlier The purpose if Slim Slim’s marketing plan is to serve as a guide for the company The following areas will be monitored to gauge performance of monthly and annual revenue and expenses, consumer satisfaction and new consumers as a percent of overall revenue The following milestones identify the key marketing programs It is important to accomplish each one on time and on budget Page 49 Communication Timeline Year 01 Pre-launch month 01 Budget allocation in year Press Year 02 10 11 12 Total Y 01 Total budget ( VND '000,000) Quarter 01 02 03 04 Total Y 02 VND 3,200 Total budget ( US$ '000) VND 470 VND 3,500 VND 400 Press release VND 220 Weekly Radio Programe VND 250 VND 400 VND 230 VND 300 VND 50 VND 80 VND 100 VND 120 VND 80 VND 100 VND 2,000 VND 2,800 VND 1,600 VND 2,200 VND 400 VND 600 VND 500 VND Online Website Social Network E-mail newsletter Advertising Television Radio Public Relation Celebrity VND 350 Event at Sports fitness centers VND 150 Page 50 REFERENCE Belch GE And Belch, MA 1998, Advertising and Promotion, 3rd Edition Irwin/ McGraw Hill, USA Christ Paul, 2009, Know this: Marketing Basics Know This Media, USA Kotler, P., 2002, Marketing Management, Millennium Edition, Custom Edition for Phoenix University Pearson Custom Publishing, USA Rossister, JR and Percy, L 1998, Advertising Communications and Promotion Management, 2nd Edition Irwin/ McGraw Hill, New York Weitz, BA., Castleberry, SB., Tanner, JF., 1998, Selling: building partnership, International Edition Irwin/ McGraw Hill, USA Wennstrom Peter, 2009, Four factors of success New Nutrition Business, UK Page 51 APPENDIX A - QUESTIONNAIRE Full-name Address District Contact number Email address Channel of interview District of interview _ _ _ _ _ _ _ Part 01: Brand Metrics Screening question: Did you use any kind of slimming food supplement in last months? No Ỉ Terminate the interview Yes Æ Q1 Q1 When we talk about slimming food supplement, which brands comes to your minds? [MA] Q2 Recently, did you see or hear any advertising of any slimming food supplement? [MA] Reductil Hydrotrim Vien Giam Can Xenical Lishou Obirax Mega-T Slimcare Chrom Plus (BIN) Hidrolite Other (specific) : ………………………… Q1 Q2 10 11 10 11 Page 52 Q3 Reductil Hydrotrim Vien Giam Can Xenical Lishou Obirax Mega-T Slimcare Chrom Plus (BIN) Hidrolite Other (specific) : ………………………… Part 02: Consumers’ behaviors Q4 a What you concern whenever talking about reducing weight issue? [MA] b And what is the most important thing among these? [SA] Q4a Q4b [MA] [SA] Wellness in general 1 Healthy body 2 Beautiful body 3 Prevent the risk of diabetes 4 Prevent the risk of cardiovascular diseases 5 Reduce Cholesterol 6 Get in shape after giving birth 7 Other(Specific): ……………… 8 12 Others (Specific) 11 Forum/banners on internet 10 Direct introduction from company Internet Website Radio Recommendations from Pharmacist Recommendations from Doctors Introducetion from Relatives/ colleagues Leaflet/ catalogue at pharmacies TV Advertising Commercial Newspaper/ Magazine Billboard How did you know this advertising? [MA] Page 53 Q5 a Which brands of slimming food supplement did you use last months? [MA] b Which brand is the most frequently did you use? [MA] Q5a Q5b [MA] [MA] Reductil 1 Hydrotrim 2 Vien Giam Can 3 Xenical 4 Lishou 5 Obirax 6 Mega-T 7 Slimcare 8 Chrom Plus (BIN) 9 Hidrolite 10 10 Other (specific) : ………………………… 11 11 Q6 How you get these brands? [MA] Recommendations from Pharmacists Recommendations from relatives/Friends/Colleagues Recommendations from Doctor Self-Medication Code 1.Recommendati 2.Recommendati 3.Prescription from Doctor ons from ons from Pharmacists relatives/ Friends/ Colleagues Reductil 1 Hydrotrim 2 Vien Giam Can 3 Xenical Lishou Obirax Mega-T Slimcare Chrom Plus (BIN) Hidrolite 10 Other (specific): ……… 11 SelfMedication 4 4 4 4 4 Page 54 Q7 Where you purchase these products? [MA] Q7 [MA] Market Supermarket Pharmacy/ drug store Private clinic Other (specific): ……… Q8 How frequency you purchase these products? [SA] Q7 [SA] once per weeks Once per month Once per months Once per quarter Once per months Once per months Once per half year Once per 7-12 months Purchase when out of stocking at home Purchase when convenient Q9 How many boxes/ bottles of slimming food supplement product did you purchase for each time? Number: Q10 How long did you used the whole products you purchased in each time? Number: Q11 How much did you spend for each purchasing? Number: Page 55 Part 03: Brand Choice Criteria Q12 Which benefits you expect from a slimming food supplement Brand? Totally Not unimportant important Reduce Cholesterol Contains natural active ingredients beneficial to health Significantly reduce food intake in the diet Increased satiety / hunger reduction Support body to absorb the substance reduced weight gain Replace meals in day No loss of body water Increased metabolism, excess consumption of fat For a healthy body in general Prevent the risk of diabetes Prevent the risk of cardiovascular disease Prevent accumulation of fat in the blood and liver Create a look of sympathy with the opposite sex Keeping the family happy Feeling confident about appearance Give a balanced body shape Help I can wear these beautiful costumes Feeling light, energetic Provide beneficial fiber for digestion Rapid weight loss Widely advertised Widely used Tablets format Sachets format Powder format Can be used regularly and long term Has no side-effects Recommended by pharmacist/ doctor Normal Quite important Very important 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 5 1 1 1 1 1 1 1 2 2 2 2 2 2 2 3 3 3 3 3 3 3 4 4 4 4 4 4 4 5 5 5 5 5 5 5 Page 56 Q12 Which benefits you expect from a slimming food supplement Brand? Totally Not unimportant important Reasonable price Easy to use Q13 Q14 2 Quite important Very important 3 4 5 According to your opinion, which is a Quality Trustworthy slimming food supplement Brand? Is sold widely at pharmacy/ hospital Is a popular brand Recommended by pharmacist Recommended by my relatives/ friend Recommended by Doctors Is a long standing brand Is an imported product Which other futures you expect from an antacid brand? Has different taste to select Has different format to select Has good taste Good advertising Is available in effervescent format Appealing packaging Q15 1 Normal Which sources of information is the most-trusted source for you to choose a slimming food supplement Brand? Recommendations from Pharmacists Recommendations from relatives/Friends/Colleagues Prescription from Doctor Self-Medication Advertisings in general [TV/Newspaper/Magazins/Radio, etc] Page 57 Part 04: Demographic information Q16 Could you please let us know your weight (unit: kg)? [SA] Number: Q17 Could you please let us know your status of marriage? [SA] Marriage Single Divorce Widow Lishou Q18 Code Route How many children you have (if any) [SA] Number: Q19 a What is yourself’s monthly average income? [SA] b What is your family’s monthly average income? [SA] Income of family Below millions VND From millions to millions VND From millions to 10 millions VND Above 10 millions No income Do not know/ not answer Q20 Income of interviewee Could you please let us know your highest education level? [SA] No schooling Primary education is not fully Secondary education is not fully Not graduated from high school Not graduated from university Graduate THANKS FOR YOUR CO-OPERATION ! Code Route Page 58 APPENDIX B – SPSS OUTPUTS After screening interview some members from big sports fit centers and others from beauty care website, we got a number of 120 consumers using different slimming food supplement products, and several findings resulted SPSS 10 has been used to analyze field data obtained from the survey as below Exhibit B1 – Brand awareness Count Reductil Hydrotrim Vien Giam Can Xenical Lishou Obirax Mega-T Slimcare Chrom Plus (BIN) Hidrolite Others TOTAL 67 80 91 4 104 10 372 % 56% 67% 76% 3% 3% 1% 87% 8% 2% 6% 1% 310% Exhibit B2 – The brand was frequently purchased Reductil Hydrotrim Vien Giam Can Mega-T Slimcare Hidrolite TOTAL Count 22 22 33 28 120 % 18% 18% 28% 23% 6% 7% 100% Page 59 Exhibit B3 – Weight of consumers Weight 50 kgs 51 kgs 52 kgs Count 15 24 53 kgs 54 kgs 55 kgs 56 kgs 57 kgs 58 kgs 59 kgs 60 kgs 61 kgs 62 kgs 5 12 14 12 5 Exhibit B4 – Status of marriage Marriage Single Divorce Widow TOTAL % 67% 27% 3% 3% 100% Count 81 33 3 120 Exhibit B5 – Reasons to use slimming food supplement products Wellness in general Healthy body Beautiful body Prevent the risk of diabetes Prevent the risk of cardiovascular diseases Reduce Cholesterol Get in shape after giving birth Count 84 108 120 60 96 12 108 Page 60 14 24 Xenical Lishou Obirax Mega-T Slimcare Chrom Plus (BIN) Hidrolite Recommendations from Doctors/ Pharmacists Introducetion from Relatives/ colleagues 24 Forum/banners on internet 18 Internet Website Reductil Hydrotrim Vien Giam Can Newspaper/ Magazine Billboard Exhibit B6 – Advertising Activities were aware 31 44 47 57 73 63 14 52 52 54 24 7 Exhibit B7 – Quality trustworthy slimming food supplement brand Count Is sold widely at pharmacy/ hospital Is a popular brand Recommended by pharmacist Recommended by my relatives/ friend 15 Recommended by Doctors 84 Is a long standing brand Is an imported product Page 61 Exhibit B8 – The most trusted source of information to choose a brand Count % Recommendations from Pharmacists 7% Recommendations from relatives/ Friends/ Colleagues 16 13% Prescription from Doctor Self-Medication 93 78% 1% Advertisings in general 1% 120 100% TOTAL Exhibit B9 – Places where to purchase the product Supermarket Pharmacy/ drug store Private clinic TOTAL Count 100 17 120 % 3% 83% 14% 100% ... entitled: MARKETING STRATEGY FOR LAUNCHING SLIM SLIM IN 2011 A product belongs to the anti- obesity market & slimming food supplement category   Prepared by Ms PHAM THI THANH THUY meets the requirement... a marketing mix strategy that determine the success of a product in the marketplace A target market or target audience is a group of consumers that the business has decided to aim its marketing. .. companies so that the company can take advantage of experienced marketing plan for a success launching In the other side, the company can take the advantage of the good relationship with pharmacies