brand marketing campaign an evaluation of lipice sheer color brand in 2015

TRƯỜNG ĐẠI HỌC MỞ TP HCM UNIVERSITÉ LIBRE DE BRUXELLES HO CHI MINH CITY OPEN UNIVERSITY SOLVAY BRUSSELS SCHOOL MMCOM9 NGUYEN BA NHAT TAN TRUONG TUYET HONG BRAND MARKETING CAMPAIGN: AN EVALUATION OF LIPICE SHEER COLOR BRAND IN 2015 MASTER PROJECT MASTER IN BUSINESS & MARKETING MANAGEMENT Ho Chi Minh City (2016) COMMITMENT This project was created based on the interesting of ourselves before, during and after finishing the Master in Marketing and Communication Management Course We truly love marketing and communication, therefore we spend enough time in finding information, market survey and some information provided by RHOTO-MENTHOLATUM VIETNAM Co., Ltd to complete this project Some information from the product is non-disclose due to the strict requirement from the manufacturer, however we commit that with the information provided will be sufficient to the thesis for this project ACKNOWLEDGEMENTS Firstly, We would like to send my great thanks to all professors of Solvay Brussels School and the Ho Chi Minh City Open University for the useful marketing knowledge in the Master In Marketing & Communication Management course year 2014 – 2016 Secondly, we would like to send many thanks to my tutor – Professor Nguyen Quang Trung and Mr Ho Cong Hoai Phuong, who have show us a lot experience in guidance, advices and comments on how to build up an effective brand analysis framework We also want to say thanks to ROHTO-MENTHOLATUM VIET NAM team members who have supported us in providing market information, segment and even share the time in working during our studying We also want to show our gratitude to our family who have always trust, support and also be a source of stimulation during our course TUTORS COMMENT TUTORS COMMENT ABBRIVEATIONS ATL Above The Line BTL Below The Line BCI Brand Communication Information BUMO Brand Used Most Often users CEO Chief Executive Officer FB Facebook HCMC Ho Chi Minh City LIS LipIce Sheer Color Regular LIS Q LipIce Sheer Color Q IMC Integrated Marketing Communication MU Lips Make-up NC Non-color POP Point of Purchase POS Point of Sales POMS Point of Sales Material PR Public Relations REF Reference SWOT Strength/ Weakness/ Opportunity/ Threat BCG Boston Consulting Group TOM Top of Mind TV Television WTO World Trade Organization THE TABLE OF FIGURES FIGURE 1.0: ROHTO LIPS PRODUCTS RANGE FIGURE 1.1: THE LAYERS OF PRODUCT FIGURE 1.2: IMC FIGURE 1.3: GDP GROWTH OF VIETNAM FIGURE 1.4: MARKET SHARE OF LIPS MAKE-UP PRODUCT 2014-2015 FIGURE 1.5: PERSONAL CARE MASS MARKET IN ASIA FIGURE 1.6: VIETNAM CARE MASS MARKET SITUATION FIGURE 1.7: BUYER BASE FIGURE 1.8: MARKET SHARE OF LIPS MAKE-UP PRODUCT 2014-2015 FIGURE 1.9: THE GROWTH DRIVER OF LIP MAKE-UP PRODUCT FIGURE 2.0: MEDIA SPENDING ON TV & PRINT FOR MAKE-UP LIP SEGMENT 2014 ROHTO FIGURE 2.1: MEDIA SPENDING ON TV & PRINT FOR MAKE-UP LIP SEGMENT 2014 ROHTO FIGURE 2.2: DISTRIBUTION CHANNEL FIGURE 2.3: THE PORTER’S FORCES MODEL FIGURE 2.4: BCG MATRIX MODEL FIGURE 2.5: THE 7PS MARKETING MIX MODEL FIGURE 2.6: ROHTO LIS SPENDING 2014 - 2015 FIGURE 2.7: ROHTO LIPICE SHEER COLOR SALES 2014 - 2015 FIGURE 2.8: SHARE OF SALES ROHTO LIPS PRODUCTS 2014 - 2015 THE TABLE OF CONTENTS EXECUTIVE SUMMARY CHAPTER I: INTRODUCTION 1.1 Project rationale 1.2 The company 10 1.3 The marketing mix review 12 1.3.1 Product and Price 12 1.3.2 Place 13 1.3.2 Promotion 14 CHAPTER II: MARKET ANALYSIS 15 2.1 Market overview 15 2.1.1 PESTEL analysis 15 2.1.2 Competitor analysis 17 2.1.3 Market research 19 2.1.4 The SWOT analysis 25 2.1.5 The Porter's forces analysis 26 2.1.6 The BCG Matrix 27 2.2 The marketing plan in 2015 28 2.3 The marketing plan analysis 40 2.3.1 The 7Ps Marketing Mix 40 CHAPTER III: RECOMMENDATION 47 3.1 Recommendation 47 3.2 Action plan 48 3.3 Road map 49 REFERRENCES 50 EXECUTIVE SUMMARY Niche market is a small segment but high profit It pros is the brand trust and loyalty you will build up over time Those years of trust then turn into legacy, which sells your events and ideas to newer party goers entering your niche The color lip balm segment with the brand LipIce Sheer Color is an obvious example for the niche market The brand penetrate in the segment for many years that create a legacy in loyalty and strong relationship with end-user and positioning as a market leader with a high investment from marketing campaign However, in the need market, we have to face disadvantages such as less opportunities in market base expand, easy to be attacked by the rivals, effect of the technology, therefore we choose this case for our project to prove that the niche market is still potential and can survive in a long time with an appropriate segmentation and positioning strategy CHAPTER I: INTRODUCTION 1.1 Project rationale A strong brand is able to help a company differentiate itself from its competitors, stand out from the competition, influence a consumer’s purchase decision in the company’s favor, build customer loyalty and boost the company’s financial performance Brand management strategy is essential when a firm wants to achieve sustained success, especially when competition is increasingly intense and product differentiation becomes unclear So that, building a clear strategy is an important role in the marketing plan for a company when develop its business in market The Lip Balm Color - Non Color segment was invented by Rohto-Mentholatum Viet Nam since 1996 and followed by Daily Lip Make up segment in 2003 These are also the first “made-in Viet Nam” cosmetic products that customize for Vietnam market and export to Japan and ASEAN countries While other import products communicated as non-season product, Rohto Lip Care Products is segmented as the product of winter and festive season These are the first cosmetic segments make the explosion of mass media channels with the locals advertising talents come along with big end-user promotion campaign that pushing the growth of Daily Lip Care and Lip Make up share speedily The distribution channels also spread out from the General Trade channel to the Modern Trade channel to increasing product coverage Both segments has expand gradually and became popular and high potential to having line-extension on next market stage within the key target consumer is Female 15-35 ABCD ~ 10 mils people by Y 2015 In 2015, Make-up segment take 5.3% in Personal Care category The Make-up for Lip also take 38% in total Make-up segment Rohto Lip Care still being the king in the micro-niche Daily Lip Care and Lip Make Up “emirates” thanks for its integrated activities and product innovation constantly Lip Ice Sheer Color - the market leader in Lip Balm Color microsegment with 11 years in Vietnam market has an outstanding sale performance in Y 2015 thanks to strong mass end-user promotion and product renovation “Lip Ice Sheer Color Q” after previous struggle years However, Lip Ice Sheer Color brand has facing serious obstacle: the scale down of market size and even market share [9] Besides, new rival came from portable and black market also challenge this made-in Viet Nam brand for a quick and thoroughly MKT strategy to revitalize the brands as the sale turnover is still under expectation 36 together a full set of Lip Ice Sheer Color Q There was 2.000 contestants join into this campaign e Pre-Roll TVC on Video Loading channel: To support for TV channels, we also select the Pre-Roll format to air on local video streaming channels with 3.6 mils impression total 37 f Mobile Advertising To spread out the key visual of Lip Ice Sheer Color Q, mobile device is selected with the news reading content ad banner The attractive design is made the banner looked like artist Hari Won is calling audience to pick up the phone Then user click on banner and link to Lip Ice Sheer Color Facebook fan page This tool is support for branding and Q Idol contest with reach is ~ mils 38 j PR Online To deeply communicate with target audience from the brand’s voice, PR online are articles booking with charismatic content to explain for product function, campaign tagline and ambassador feature Those articles was featured on key websites for young female with the trustworthy source 39 2.2.2.8 OOH- Cinema Ad The last appearance of Lip Ice Sheer Color is in cinema theatre to reach to the hub of teenager as well as spread out the BCI content on the big screen The Cineplex selection focus on main cities Hà Nội and HCMC in Dec’15 during festive season that reach to ~ 500,000 people 40 2.3 Marketing plan analysis 2.3.1 The 7Ps marketing mix [14] In order to analyze the marketing campaign, we find out that the 7Ps Marketing Mix is the most suitable for Rohto situation because: - Rohto-Mentholatum is a manufacturer, therefore it access to all of the key elements of the marketing mix Lip Balm color with the unique formula is the niche market, therefore as a manufacturer, they need to focus on the product development, R&D resource, distribution channel… The 7Ps Marketing Mix framework is an innovation from the traditional 4Ps Marketing Mix The 7Ps model was devised by E Jerome McCarthy and published in 1960 in his book: Basic Marketing A Managerial Approach The 7Ps helps companies to review and define key issues that affects the marketing of its products and services Beside the key element Product, Price, Place, Promotion, there are more key elements which is followed: 41 Figure 2.5: The 7Ps Marketing mix model Objectives of the campaign - Protect the leader position Protect the market size Avoid cannibalization to other Rohto Lip products New customer generation We will use the 7Ps marketing mix framework to analyze the 2015 marketing campaign for Lips Balm product to with some attributes as table below to find wether company achieve these objectives: 7Ps Marketing Mix Product Quality Promotion Price Place Marketing Trade Positioning communication channel People Individual or marketing activities Process Physical evidence Sales/staff Customer contact focus experience of brand 42 Individual on customer contact Image Personal promotion List Sales support Branding Sales promotion Discount Segmented IT Recruitment Channel Support Features PR Credit People Variants Branding Payment Mix Direct marketing Added value Culture Training and skill Business Product packaging Online experience R&D Customer service Use occasion Availability Warranties 2.3.1.1 Product: Quality: LipIce was formulated in Japan by Rohto Japan and adapted into Vietnam market in 11 years, the product is very high quality and safety for consumer This is the only product for lips that is produced in Vietnam Image: The product keep the same style for 11 year Therefore this product is quite oldfashion and not so impressive appearance Branding: it always sticks with the girly sweet pink color That seem to be boring for many customer generation Not many choice for color and also the product shape and label keeps the same for many year The color is not long lasting for a daily usage Use occasion: the ideas is to create a lips balm product for everyday, however there is no invented in color make consumer loyalty very weak Even the new LIS Q, there is not much innovation for color, this cannot make a big difference with the LipIce 2.3.1.2 Promotion: Marketing communication: Rohto was very ambitious in the marketing campaign in 2015 to introduce a new lineextension that is LIS Q and focus of the feminist, That’s also a mega trend From the mass communication to a customization communication under hastag #congaicoquyendieu has strengthen the brand awareness and give the brand more personification and characteristic This campaign use an IMC mix with these following communication tools: 43 Advertising on mass communication with the strenght is reaching larger number of people and the weaknesses are high absolute cost and difficult to receive good feedback Public relation: the campaign use a lot of public relation tatics such as editorial, KOLs,… however in Vietnam this time, it is very high cost to use this tool and it is considered as an advertising tool The brand cannot utilize the strenght of natural public relation The campaign lack of direct marketing tool on digital channel to the consumer such as email, telesales, ecommerce,… Message: The communication message (Con gái có quyền điệu – Girl must be girly) is general and unclear 2.3.1.3 Price Good price strategy, other competitor offer over 100,000 VND/pcs, only LIS offer lower than 70,000 VND/pcs Howerver no added value for this product as mentioned-above idea 2.3.1.4 Place: The distribution channel of LIS are GT, MT, Covinient store However the display area for the brand is not impressive and usually not diffentiated with other product even in Rohto product range, lack of regconized and no POSM support The digital sales channel is under development by Rohto 2.3.1.5 People: Lack of middle management for the brand as the Japanese culture, the age gap between senior and junior is quite big The idea for branding & product is quite old, not fashionable and conservative like other competitor 2.3.1.6 Process: The brand is lack of CRM system and IT supported The brand is loosing customer base and new cruitment The R&D process is also slow, out of trend and less efficiency 2.3.1.7 Physical evidence: The customer is not reassure by brand image, poor packaging, no sales representative at point of sales and the suggestion from the retailer as well 2.3.1.8 Conclusion After review the Lip Ice Sheer Color Y 2015 campaign, we’ve found that campaign reach to 30% of it’s objective as there’re the remain questions: - Thank to the market research from Kantar World Panel in the previous period of this campaign, we saw that the total market size of Lip Balm Color is shrinking as Lip Ice 44 - - - - - Sheer Color even lost more share (Figure 2.8) Besides, the main competitor Maybelline also double the share Therefore, to protect the dominant position from a quiet year as 2014, this IMC campaign is success to wake-up the sleeping awareness from target customer to protect the smaller market size The product line-extention strategy from Lip Ice Sheer Color Regular to Lip Ice Sheer Color Q has refresh the brand which cleared product function: sharpen color and smell, more charismatic inside….but can’t give the product more fashionable packaging or formula to enhance the competive ability The campaign delivered a general message “Con Gái Có Quyền Điệu” that doesn’t match to young target customer insight Therefore, it could be recall among the current target user but can’t expand to new customer generation This result as reflect well in the TV Post Buy report In media mix, instead focus on deepth and width communication, the brand choose to go mass and shallow means the message can’t be absord well in a micro-niche segmentation The objective is to prevent the canibalization cannot acchieve because the campaign cannot make the differentiation about the brand personification in comparision to Non Color LipIce Also the communication feature highlight the moisturizer and the color aim to the daily usage, thus this can be easily attacked by the Lips Make-up This weakness will be appealed by the point of sales The selection of too many local talent and Hari-Won is also a factor to eliminate the Japanese image of the brand Figure 2.6 ROHTO LIP BALM COLOR - LIP ICE SHEER COLOR SPENDING 2014-2015 - USD 700,000 600,000 500,000 400,000 300,000 200,000 100,000 Y 2014 Y 2015 45 Figure 2.7 Rohto Color Lip Balm - Lip Ice Sheer Color Sales Y 2015 vs Y 2014 - VND 83,000,000,000 82,000,000,000 81,000,000,000 80,000,000,000 79,000,000,000 78,000,000,000 77,000,000,000 76,000,000,000 Y 2015 Y 2014 The sales revenue of Rohto Color Lip Balm in 2015 even lower with 2014 although the spending is more than 2014 18 times Figure 2.8: Share of sales Rohto Lip products 2014 vs 2015 90,000,000,000 80,000,000,000 70,000,000,000 60,000,000,000 50,000,000,000 2015 40,000,000,000 2014 30,000,000,000 20,000,000,000 10,000,000,000 Non Color Lip Balm Color Lip Balm Lip Make Up Miracle Apo Lip Make Up Lip On Lip In 2014, the most spending focus on the Non-color lips with the big end-user campaign That drove to good sales for both non-color lip balm and color lips balm 46 In 2015, to enhance the lipice sheer color brand, most of the budget went to the color lip balm segment which is focus on pure communication Therefore this is the wrong feature product selection that drove to the worse sales for both segment 47 CHAPTER III: RECOMMENDATION 3.1 Recommendation Through the conclusion of previous chapter, our recommendation are input to help the companny achieve their objectives: maintain the market leader position, protect the market size , avoid cannibalization to other Rohto Lip products and approach the new customer generation Besides, we also consider the market movement and sale area coverage 3.1.1 Product + Physical evidence Lip Ice Sheer Color leading the niche market Lip Balm Color thank for it’s unique product formula that are non-adaptable and simulated However, Maybelline has success to invasion by a different formula but have same function Therefore, product innovation is very important to take over the market share and increase market size The product should be verstatile in color, shade, shape, flavor that bringing more options to young user in a adult-look packaging to give them the added value benefit Besides, the Japanese image should be enhanced to recall country of origin Maybelline Lip Smooth Color Bloom vs Lip Ice Sheer Color packaging More line-extension in the premium segment which can be enhanced by the Japanese innovation 3.1.2 Promotion The marketing communication need to be sharpened wider and deeper in the teenager target group The concept need to be focus at the very first perfect lipstick for the make-up starter to get more impress and interest of the end-user PR should focus on the brand engagement and way dialogues communication, respect the user voice through direct marketing The hero product selection must be deeply considered base on the share of sales 48 3.1.3 Price Based on Figure 2.2, we recommend Rohto-Mentholatum Viet Nam to keep the same price for product however increase the added value such as the make-up starter club, Lipice Sheer Color handmade version or adult-look packaging 3.1.4 Place Thank for Figure 1.6, Rural area is growing well vs Urban market Among low price-casual look segment, rural area is a perfect virgin market and Online channel is the best vehicle to approach On the second grade, a flagship store for all Rohto products is nessary for corporate branding and consumer experience purposes 3.1.5 People Internal communication must be enhance to remove the barrier between senior and junior New tool, knowledge and technique for marketing should be applied to create better communication protocol 3.1.6 Process A CRM should be apply to maintain and expand buyer base Online sale channels can contribute very well to deliver a useful customer database that need to manage by a professional CRM system 3.2 Action plan - To revitalize the rand, we should focus on segmentation & positioning strategy, as follow: 3.2.1 Segmentation Geographic Demographic Focus on big cities Female + rural Age: 13 – 19 (teenager) Low – Middle income Behavioral Lip make-up starter, daily usage Trend follower, can change new product easily, loyalty is low Psychographic Young, enegertic, want to try new thing 3.2.2 Positioning LIS is a perfect lip stick for make-up starter with safe ingredient, trendy color, tasty flavor and easy to apply anytime, anywhere Using LIS daily to enjoy the natural beauty with refresh tatse 49 3.3 Road map PATTERN Theme Y 2016 Y 2017 Y 2018 INNOVATION CUSTOMIZATION TRENDSETTER DETAIL ACTION Innovation from current: Perfect lip stick for make-up starter concept Launch a new Lip Ice Sheer Color line extention that can having more shades and unique packaging A made-by-user product material that allow end user can produce a handmade LIS product by themselves Product Made-by-you concept Sheer Color not only a lipstick but will be a make up starter make up kit with full range: foundation, mascara and blusher to provide a Sheer Beauty trend from Japan The Sheer Beauty concept Be confident when start to make up Make up is a sweet challenge for any young girl Let’s share the funny story when join in that battle to win a trip to Japan every quarter Promotion run whole year You formula will be apply into new LIS SKUs which named by you Of course with a sexy patent paid Promotion Made-by-you concept Win a prize to open your own beauty channel on Youtube with sponsorship from Rohto Become a second Michelle Phan The Sheer Beauty concept Price Bottom-up approach Place E Commerce expand Enjoy the great value with a sexy price Join into e-marketplace Launch an E-flagship store Upgrade E-flagship store with advance virtual make-up tool 50 REFERENCE [1] Rohto-Mentholatum mentholatum-viet-nam Vietnam history - http://rohto.com.vn/index.php?m=rohto- [2] Rohto Global vision and mission - www.rohto.co.jp/global/ (3) Voice of Vietnam – Political stable is an advantage of Vietnam - http://vov.vn/chinhtri/on-dinh-chinh-tri-la-mot-loi-the-cua-viet-nam-142773.vov [4] VNExpress – Vietnam population is nearly 90.5 million - http://giadinh.vnexpress.net/tintuc/to-am/dan-so-viet-nam-co-gan-90-5-trieu-nguoi-3121884.html [5] Nhip cau da tu margazine – GDP Vietnam with highest growth in the past years http://nhipcaudautu.vn/kinh-te/gdp-viet-nam-nam-2015-tang-668-cao-nhat-5-nam3296086/#axzz42n7saGj9 [6] Nielsen Vietnam – Are you ready for the future 11/12/2015 – Page Nielsen Vietnam – Are you ready for the future 11/12/2015 – Page 13 Nielsen Vietnam – Are you ready for the future 11/12/2015 – Page 15 Nielsen Vietnam – Are you ready for the future 11/12/2015 – Page 17 [7] VNExpress – Vietnam Cosmetic and the war of 15,000 million VND http://kinhdoanh.vnexpress.net/tin-tuc/doanh-nghiep/my-pham-viet-va-cuoc-dau-15-000-tydong-3092586.html [8] Competitor analysis – from Rohto – Mentholatum Vietnam – Non-disclosure [9] Kantar World Panel 2015 - Surf the growth opportunity in personal care – Prepare for Rohto – Non-disclosure [10] SWOT Analysis - https://www.mindtools.com [11] The Porter’s Five Force Model: Tips http://www.businessnewsdaily.com/5446-porters-five-forces.html [12] The BCG Growth – http://www.netmba.com/strategy/matrix/bcg/ Share Matrix and Example - – NetMBA - [13] LipIce Sheer Color 2015 – TVC post check report – Intage Vietnam – Prepare for Rohto – Non-disclosure [14] Basic Marketing – A Global – Managerial Approach – William D Perreault , Jr – E Jerome McCarthy – 2002 – Mc Graw Higher Education - http://resource.1st.ir/ The 7ps of Marketing - http://www.entrepreneur.com/article/70824 How to use the 7Ps marketing mix http://www.smartinsights.com/marketingplanning/marketing-models/how-to-use-the-7ps-marketing-mix/ ... was created based on the interesting of ourselves before, during and after finishing the Master in Marketing and Communication Management Course We truly love marketing and communication, therefore... main cities Hà Nội and HCMC in Dec’15 during festive season that reach to ~ 500,000 people 40 2.3 Marketing plan analysis 2.3.1 The 7Ps marketing mix [14] In order to analyze the marketing campaign, ... Branding Sales promotion Discount Segmented IT Recruitment Channel Support Features PR Credit People Variants Branding Payment Mix Direct marketing Added value Culture Training and skill Business