Overall business plan and new product launching plan

VIETNAM NATIONAL UNIVERSITY, HA NOI GRADUATION ESSAY (INTERNSHIP REPORT) OVERALL BUSINESS PLAN AND NEW PRODUCT LAUNCHING PLAN FACULTY: MARKETING & PROSPECTIVE INSTRUCTOR: PHD NGUYEN THI HONG HANH STUDENT: HOANG THI VAN ANH CLASS: MARKETING & PROSPECTIVE Ha Noi, June 6th, 2018 Hoang Thi Van Anh VIETNAM NATIONAL UNIVERSITY, HA NOI GRADUATION ESSAY (INTERNSHIP REPORT) OVERALL BUSINESS PLAN AND NEW PRODUCT LAUNCHING PLAN FACULTY: MARKETING & PROSPECTIVE INSTRUCTOR: PHD NGUYEN THI HONG HANH STUDENT: HOANG THI VAN ANH CLASS: MARKETING & PROSPECTIVE Ha Noi, June 6th, 2018 ii Hoang Thi Van Anh ASSURANCE I pledge that this is my own research The results, figures mentioned in this article are collected by myself I not copy from anyone's SOURCE OF INFORMATION TABLE: Table 1: Total Automotive market share (Passenger car only) by maker (source: Registration Data) Table 2: Passenger car sold out from 2010 – 2017 (source: Registration Data and 3M Vietnam) Table 3: Market size & market share estimation in2018 (source: 3M Vietnam) Table 17: Crystalline specification (source: 3M Vietnam) FIGURE: Figure 1: CR heat resistance (source: 3M Vietnam) Figure 12: Customer’s occupation (survey by 3M Vietnam) Figure 14: Customer’s house hold income: (survey by 3M Vietnam) Figure 15: Customer’s hobby (survey by 3M Vietnam) Figure 16: Favorite website: (survey by 3M Vietnam) Figure 17: Favorite TV channels and magazine/ newspaper: (survey by 3M Vietnam) Figure 18: Social networks & Outdoor advertising: (survey by 3M Vietnam) Figure 19: Source of getting information about auto film: (survey by 3M Vietnam) Figure 20: Source of getting information about auto film (by region): (survey by 3M Vietnam) Figure 21: 3M Corporate Core Value Brand (by 3M Vietnam) i Hoang Thi Van Anh LIST OF TABLES: Table 1: Total Automotive market share (Passenger car only) by maker (source: Registration Data) Table 2: Passenger car sold out from 2010 – 2017 (source: Registration Data) Table 3: Market size & market share estimation in 2018 10 Table 4: Score card comparison among 3M, V’Kool, Llumar 10 Table 5: Customer’s opinions on installation auto film for a car 12 Table 6: Considering criteria when deciding on installing automotive film package 12 Table 7: Customers’ requirements for higher satisfaction 13 Table 8: Automotive film brand in customer’s mind 13 Table 9: Number of customer who is willing to pay for a premium film package 14 Table 10: Acceptable price range for CR Package 14 Table 11: Important factors to be considered when purchasing an automotive film brand 16 Table 12: factors effect to customer purchasing decision 16 Table 13: Customer evaluation about their current auto film brand 17 Table 14: Data analysis 17 Table 15: Why customers chose other brands 18 Table 16: Top of mind automotive film brand in customer’s mind 19 Table 17: Crystalline specification (source: 3M Vietnam) 25 Table 18: Competitive advantages of 3M CR in compare with V’Kool, Cool N Lite in the same segment and compare with other 3M products in 3M film portfolio 26 Table 19: Dealer network 46 Table 20: Total marketing budget 48 Table 21: Original Sales Plan 49 Table 22: Detail check list 52 ii Hoang Thi Van Anh LIST OF FIGURES: Figure 1: Company organization chart .4 Figure 2: Overall Automotive Film business plan (Hoa Quan plan) Figure 3: Source of information 21 Figure 4: Switching ratio among segments .22 Figure 5: Product portfolio 23 Figure 6: CR position among product portfolio 24 Figure 7: CR position among segments 25 Figure 8: CR heat resistance .31 Figure 9: Multi-layer optical technology 32 Figure 10: 3M no metal film .33 Figure 11: Customer profile 34 Figure 12: Customer’s occupation (survey by 3M Vietnam) 34 Figure 14: Customer’s house hold income: (survey by 3M Vietnam) 35 Figure 15: Customer’s hobby (survey by 3M Vietnam) 36 Figure 16: Favorite website: (survey by 3M Vietnam) .37 Figure 17: Favorite TV channels and magazine/ newspaper: (survey by 3M Vietnam) 37 Figure 18: Social networks & Outdoor advertising: (survey by 3M Vietnam) 38 Figure 19: Source of getting information about auto film: (survey by 3M Vietnam) 38 Figure 20: Source of getting information about auto film (by region): (survey by 3M Vietnam) 39 Figure 21: 3M Corporate Core Value Brand (by 3M Vietnam) .39 Figure 22: Master communication plan for launching new CR package 40 Figure 23: Media plan .41 Figure 24: Dealer network map 46 Figure 25: Master communication plan for launching new CR package 50 iii Hoang Thi Van Anh THANKS I sincerely thank the Board of Management of Hoa Quan company for accepting me to practice and facilitate me to complete the work assigned during my internship at the company The essays proved to Hoa Quan management board the useful information about market insights, customer insights together with the proposal basing on above research result This proposal is highly appreciated by Hoa Quan’s Director and he has approved this Through studying with this essay, I can equip for myself a good analysis and planning skill My strategic planning ability also improve so much I would like to express my sincerely thank to my teachers at Vietnam National University, specially PHD Nguyen Thi Hong Hanh who enthusiasm to instruct me to complete my essay and share with me many value knowledges during my studying time with her I wish you all have a good health, success and happiness Your student Hoang Thi Van Anh iv Hoang Thi Van Anh TABLE OF CONTENTS ASSURANCE i LIST OF TABLES: ii LIST OF FIGURES: iii THANKS iv SUMMARY PART I: COMPANY INTRODUCTION, DUTY INTRODUCTION I Company introduction History .3 Vision, mission and value 3 Company organization chart 4 Overall Automotive Film business plan II Introduction about my duty in the company .5 PART II: NEW PRODUCT LAUNCHING PLAN- AUTO FILM - CR PACKAGE .6 I Market research and analysis .6 Business environment and SWOT analysis .6 1.1 PESTEL analysis 1.2 The Forces analysis 1.3 SWOT analysis Market over view .8 Qualitative research .11 3.1 Research objectives 11 3.2 Methods, sample, questionnaire 11 3.3 Summary result .11 Quantitative research .14 Market share among segments (high-end, medium, economic) … 21 II Product planning and price strategy 22 v Hoang Thi Van Anh Product portfolio 22 Crystalline Package introduction 23 Target customer .33 CR Product concept and key message 39 III Promotion/ Communication plan 40 IV Place/ Channel setting up 45 V People .47 VI Packaging 47 VII Process and quality 47 VIII Customer relationship management .47 IX Budget .48 X Sales target .49 PART III: CONCLUSION .50 REFERENCES 54 vi Hoang Thi Van Anh SUMMARY This essay includes parts: Part I: Introduce about company, the overall marketing plan of company and my duty in the company My duty in the company is launching a new premium film package name CR Package Part II: The content of Part II is detail information about my duty, what I to prepare for launching CR Package such as market research and analysis (PESTEL, FORCES, SWORT, customer survey), product study (determine competitors, product’s competitive advantages, unique selling point, product concept, product positioning and pricing), determine target customer, key message, propose communication plan, set up Dealer system, build up customer relationship program, … Part III: Conclusion The company named Hoa Quan, a trading and service company, specialize in automotive aftermarket, especially automotive window film and car care The brand of product that Hoa Quan runs business is 3M – a famous global technology company in the World and has head quarter in America The methods are used in this report are: PESTEL analysis, SWOT analysis, FORCES analysis, qualitative survey, quantitative survey, observe, face to face interview The output of this essay play an important role in business activities of Hoa Quan company It provides Hoa Quan an over view about automotive film market with market insight (market size, market share, product and competitors, …) and customer insight This essay also proposes to Hoa Quan a communication plan to approach target customers and activities to support sales team reach sales target This essay provides to reader a layout (route map) of launching a product to the market By reading this essay, the readers will know how a product is launched to the market, how many steps we prepare, what we in each step, specifically: Step 1: Market research and analysis, includes: - Business environment and SWOT analysis - Market overview - Qualitative research - Quantitative research - Market share among segments (high-end, medium, economic) Step 2: Product planning and price strategy, includes: Hoang Thi Van Anh - Product portfolio - Product to be launched (strong point/ weak point, outstanding feature, competitive advantages, ) - Target customer (customer profile), - Product concept and key message Step 3: Communication plan to approach targeted groups - Know clearly about target customers (customer profile, customer’s behavior, their care, their hobby, their habit, …) - Choose suitable communication channel and place to approach target customers: online communication channels (website, face book, you tube, online newspapers, forum seeding, television, radio, ….), offline channel (activation, offline event, launching event, exhibition, …), outdoor advertising (bill board, light box advertising, …at the airport, building, coffee shops, main roads, crowded street, ) Step 4: Set up and develop Distributor/ Dealer channels - Set up levels of Distributors/ Dealers base on their capacity, their business strategy, potential partners, …with different price level, different sales target, … - Training Distributors/ Dealer about product, sales talk, product installation, … - Sales area management among Distributor/ Dealers - Monthly/ yearly evaluation and awarding to encourage Distributor/ Dealers system Step 5: Build up related process or quality control activities, for example: - Sales process training and period evaluation - Technician training and period evaluation Step 6: Develop people who run business Step 7: Customer relationship management: develop tools and program to keep and increase loyalty customers Hoang Thi Van Anh III Promotion/ Communication plan Launching plan for Automotive Film Crystalline Package (CR Package) Figure 22: Master communication plan for launching new CR package - Online: + PR articles: Journalist review PR articles, customer review PR articles, Key opinion Leader review video (Tinh Te, Xe Hay, Café Auto), PR expose on mass media 40 Hoang Thi Van Anh Figure 23: Media plan + Facebook: fan page content development, promote post, live stream, KOLs, 41 Hoang Thi Van Anh + SMS to car owners + Website promoting + Social plat form seeding + Viral clip - Offline channels: + Installation Day (training Technicians of Authorized Shops and PR) 42 Hoang Thi Van Anh + Opening new Automotive Film & Car Care Center + Enhance brand image at Dealer network with POSM (banner, poster, standee, leaflet, …) + Take care Car Owner Clubs to enhance Word of Mouth channel (Chevrolet Cruze Offline Event, Nationwide Pick Up Car Owner Club Off Road, …) Chevrolet Cruze Offline Event: Nationwide Pick Up Car Owner Club Off Road 43 Hoang Thi Van Anh + Distributors/ Dealer system: develop Dealers with around 150 Installation shop nationwide 44 Hoang Thi Van Anh Each Installation Shop will be provided Authorized Certificate and the Installer (Technician of Shop) will be trained and provided Certification also - Promotion: promotion to car owner at low sales season (autumn) + Name of promotion: “ Experience the different from 3M optical film” + Target customers: car owner + Content: replace the current automotive window film by 3M optical film + Gift: Discount 30% for customer who change to 3M optical film + Time: month with 200 first customers + IV Place/ Channel setting up Automotive Film channel development in 2018: 154 Installation shops nationwide under the management of Dealers of Hoa Quan 45 Hoang Thi Van Anh In 2019, we will apply automotive window film business to Car Care shops (36 shops) which have not run yet automotive widow film business in 2018 Table 19: Dealer network A Film B Film only (no & Car car care) Care GRV 15 SLH 27 DTH C Car Total shop Total shop Total shop of with film with car care Dealer A+B B+C A+B+C 20 15 20 27 34 34 61 17 24 24 31 ICDI 40 0 40 40 MLG 28 36 10 38 Total 107 47 36 154 83 190 Dealers Care only (no film) Market share thanks to this network: USD 1,1 Billion for packages Crystalline, Color Stable and Eco Crystalline takes around 20% Figure 24: Dealer network map 46 Hoang Thi Van Anh V People * All sales staffs and technician must be trained by 3M Vietnam and obey standard of 3M Vietnam VI Packaging * The box of Crystalline will have a big 3M logo on top and side of box to raise customer awareness during transportation time/ stock keeping or when opening new roll to show to customers VII Process and quality * All sales staffs and technician must be trained by 3M Vietnam and obey standard of 3M Vietnam * Sales process: Say “Hello” with customer: Good morning Sir! May I help you? Give customer more questions to understand deeply their demand/ need Determine that customer want to buy an Automotive Film Package and tell them that we can serve Introduce Shop: say that we are Authorized Shop of 3M Brand, show customer the Authorized Certification of Shop, Certification of Technician given by 3M, open website 3M Automotive Film and show customer name of the Shop/ phone number on 3M website Consult to customer about kinds of Package and promote Crystalline Package with its outstanding features and unique selling points VIII Customer relationship management * Data of customers is controlled by 3M Vietnam Hoa Quan can ask for data analysis and provide loyalty campaigns to customers such as: - Free wash car vouchers for loyalty customers 47 Hoang Thi Van Anh - Free car care vouchers for loyalty customers - Discount voucher to replace old automotive window film by new automotive window film We will keep tightly the current customers by loyalty campaigns, increase quantity of new customer by attractive promotion campaigns IX Budget Total budget: USD 87,734 and 3M Vietnam will support 70% ($62,000), Hoa Quan pay 30% ($26,000) Table 20: Total marketing budget Unit Items cost I Signboard & POSM at shops 800 Unit Packag e Quant ity Amoun t 86 68,800 II Communication 14,344 Journalist review & 1,000 Package 2,000 1,000 Package 1,000 Customer review 1,200 Package 1,200 (Green View) 1,000 Package 1,000 22 post 22 VOV 2,500 Package 2,500 SMS SMS 1,980 13 889 Package 889 1,000 Package 1,000 Film Catalog Unit 472 2,070 Standees of promotion 30 Unit 155 4,650 customer review PR articles Launching Auto Film Center Xe hay review video Face book promote post Forum seeding Otofun, Otosaigon, Tinh te Fan-page management POSM III Promotion to end-user 1,300 48 Hoang Thi Van Anh Viral clip production Autumn 1,300 Promotion 25 by Shop Clip package 1,300 IV Others 3,289 Warranty software Warranty card package unit 15,000 0.2 Total (I+II+III+IV) 3,289 87,734 X Sales target Total sales target is 1,1 Billion in which CR product takes USD 440,000 Table 21: Original Sales Plan Product Jan CR 12 CS Fe Mar Apr May Jun July Aug Sep Oct Nov Dec Total 16 28 28 36 40 42 28 60 50 48 52 440 12 21 21 27 30 31.5 21 45 37.5 36 39 330 Eco 12 21 21 27 30 31.5 21 45 37.5 36 39 330 Total 30 40 70 70 90 100 105 70 150 125 120 130 1100 b 49 Hoang Thi Van Anh PART III: CONCLUSION Through market research result, we can see automotive film business is very potential in the next years when the automotive industry is going to boom in near future (the growth ratio is around 35% per year) Market size in 2018 for automotive film business is around USD 11 billion in which the middle up segment takes around USD 3,870 3M share in 2018 is estimated around USD 1,1 billion 3M takes around 20% in the middle up segment and takes around 10% in total market share Income and living standard is increase day by day and customer is willing to pay more to have high quality product Main competitors of 3M are V’Kool (premium segment) and Llumar (Middle segment) CR package launch will enhance product portfolio for 3M and give customer more choice and more chance to experience high quality product This also enhance 3M’s brand image regarding characteristic “advanced technology, high quality and trusted brand” Product concept of CR is “clear breakthrough in automotive window films” Communication message of CR package is “Ultimate comfort and clarity” Target groups of CR package mostly are success man, age from 26 – 55 who have got married, has or kids, working experience more than years, living in urban with high income, well-educated and talented, enjoying working, having positive attitude toward life, like advanced technology, care about health Communication channels to approach targeted group is mix channels: Figure 25: Master communication plan for launching new CR package 50 Hoang Thi Van Anh - Online: + PR articles: Journalist review PR articles, customer review PR articles, Key opinion Leader review video (Tinh Te, Xe Hay, Café Auto), PR expose on mass media + Facebook: fan page content development, promote post, livestream, … + SMS to car owners + Website promoting + Social plat form seeding + Viral clip - Offline channels: + Installation Day + Opening new Automotive Film & Car Care Center + Enhance brand image at Dealer network with POSM (banner, poster, standee, leaflet, …) - Promotion: promotion to car owner at low sales season (autumn) Distributors/ Dealer system: develop Dealers with around 150 Installation shop nationwide Each Installation Shop will be decorated with 3M Visual Identity, provided Authorized Certificate and the Installer (Technician of Shop) will be trained and provided Certification also The box of Crystalline will have a big 3M logo ton top and side of box to raise customer awareness during transportation time/ stock keeping or when opening new roll to show to 51 Hoang Thi Van Anh customers Hoa Quan will build up standard for sales and service activities to enhance quality among system Customer relationship management will get attention Hoa Quan will build up customer database for customer insight study and customer loyalty programs In conclusion, with real marketing experience over 10 years together with the knowledge getting from my Teachers during my studying time at National University and University de Nantes, I will try my best to propose to Hoa Quan a SMART marketing plan and instruct their personnel to implement the plan Each job will have a detail checklist with specific control items as below tables: Table 22: Detail check list 52 Hoang Thi Van Anh I hope that after months working together with Hoa Quan, I can bring to them valuable contribution to their business activities and their growth 53 Hoang Thi Van Anh REFERENCES Ringle, C M., Wende, S., and Becker, J.-M 2015 "SmartPLS 3." Boenningstedt: SmartPLS GmbH, http://www.smartpls.com Survey of 3M Viet Nam Automotive window film website of 3M: https://www.3m.com/3M/en_US/companyus/all-3m-products/~/3M-Automotive-Window-Film-CrystallineSeries/?N=5002385+3292716668&rt=rud 54 ... VIETNAM NATIONAL UNIVERSITY, HA NOI GRADUATION ESSAY (INTERNSHIP REPORT) OVERALL BUSINESS PLAN AND NEW PRODUCT LAUNCHING PLAN FACULTY: MARKETING & PROSPECTIVE INSTRUCTOR: PHD NGUYEN THI HONG HANH... mission and value 3 Company organization chart 4 Overall Automotive Film business plan II Introduction about my duty in the company .5 PART II: NEW PRODUCT LAUNCHING. .. chart Figure 2: Company organization chart Overall Automotive Film business plan Hoang Thi Van Anh Figure 3: Overall Automotive Film business plan (Hoa Quan plan) II Introduction about my duty in