MARKETING PLAN PROJECT

MINISTRY OF FINANCE UNIVERSITY OF FINANCE - MARKETING Full name Student Code Lâm Mẫn Nghi 1921001172 Phan Nguyễn Hoàng Thy 1921000937 Nguyễn Minh Tuấn 1921005750 Class: CLC – 19DMA12 Class code: 2021702006012 FINAL EXAM ASSIGNMENT MARKETING PLAN PROJECT FOR THE AUTO-COOL HELMET COOLERS OF ANDES HELMET BRAND MANUFACTURED BY LONG HUEI Co., Ltd Major: Marketing Management Subject: Marketing Management Ho Chi Minh City, 2021 MINISTRY OF FINANCE UNIVERSITY OF FINANCE - MARKETING Full name Student Code Lâm Mẫn Nghi 1921001172 Phan Nguyễn Hoàng Thy 1921000937 Nguyễn Minh Tuấn 1921005750 Class: CLC – 19DMA12 Class code: 2021702006012 FINAL EXAM ASSIGNMENT MARKETING PLAN PROJECT FOR THE AUTO-COOL HELMET COOLERS OF ANDES HELMET BRAND MANUFACTURED BY LONG HUEI Co., Ltd Major: Marketing Management Subject: Marketing Management Ho Chi Minh City, 2021 TABLE OF CONTENTS LIST OF TABLES LIST OF FIGURES EXECUTIVE SUMMARY INTRODUCTION SWOT & MACRO-ENVIRONMENT ANALYSIS THE ANDES’S STRENGTHS, WEAKNESSES, OPPORTUNITIES & THREATS 1.1 OPPORTUNITIES 1.2 THREATS 1.3 STRENGTHS 1.4 WEAKNESS ANALYZE THE CURRENT MARKET SITUATION FOR THE AUTO-COOL HELMET COOLERS 2.1 DEMOGRAPHIC ENVIRONMENT 2.2 ECONOMIC ENVIRONMENT 2.3 NATURAL ENVIRONMENT 2.4 TECHNOLOGICAL ENVIRONMENT 2.5 POLITICAL-LEGAL ENVIRONMENT SWOT OF THE ANDES’S HELMET COOLERS 10 SEGMENTATION & POSITIONING STRATEGY 12 SEGMENTATION 12 1.1 GEOGRAPHIC SEGMENTATION 12 1.2 DEMOGRAPHIC SEGMENTATION 12 1.3 BEHAVIORAL SEGMENTATION 13 1.4 PSYCHOGRAPHIC SEGMENTATION 14 TARGETING 14 POSITIONING 15 3.1 SITUATION ANALYSIS: 15 MARKETING MIX STRATEGIES 16 PRODUCT STRATEGIES: 17 1.1 PRODUCT ATTRIBUTES 17 1.2 VALUE PROPOSITIONS: 17 1.3 BRANDING: 17 1.4 PACKAGING 18 1.5 LABELING 18 1.6 PRODUCT SUPPORT SERVICE 18 PRICING STRATEGIES: 19 PLACE STRATEGIES: 20 PROMOTION STRATEGIES: 20 4.1 IDENTIFY THE TARGET AUDIENCE: NOTE: TIMELINE CAMPAIGN, THE IMAGE OF INFLUENCERS 20 4.2 DETERMINE THE COMMUNICATIONS OBJECTIVES: 21 4.3 DESIGN THE COMMUNICATION: 21 4.4 SELECT THE COMMUNICATION CHANNELS 21 4.5 ESTABLISH THE TOTAL MARKETING COMMUNICATIONS BUDGET 21 ACTION PLAN 23 CONCLUSION 25 LIST OF REFERENCES & ORIGINALITY 26 APPENDIX 28 FINANCIAL PAPER 28 EXPENSE BUDGET FOR PROMOTION ACTIVITES OF THE FIRST YEAR 28 MEMBER’S GROUP WORK ASSESSMENT 30 PLAGIARISM CHECK 32 LIST OF TABLES TABLE 1: SWOT OF THE ANDES’S HELMET COOLERS 11 TABLE 2: IDENTIFY THE PRICE OF THE ANDES’S HELMET COOLERS 19 TABLE 3: THE TABLE OF FINANCIAL PAPER OF ANDES’S HELMET COOLERS IN 2022 28 TABLE 4: THE TABLE OF EXPENSE BUDGET FOR PROMOTION ACTIVITIES OF THE FIRST YEAR 28 TABLE 5: THE TABLE OF MEMBERS’ GROUP WORK ASSESSMENT 31 LIST OF FIGURES FIGURE 1: THE HELMET COOLERS OF THE BLUARMOR BRAND 10 FIGURE 2: THE RANKING OF PER CAPITA INCOME IN 2020 13 FIGURE 3: POSITIONING MAP 15 FIGURE 4: BREAK-EVEN ANALYSIS FOR THE ANDES’S HELMET COOLERS 19 FIGURE 5: DISTRIBUTION CHANNEL OF ANDES’S HELMET COOLER PRODUCTS 20 FIGURE 6: THE TIMELINE ACTION PLAN OF ANDES’S HELMET COOLERS IN 2022 23 FIGURE 7: THE TIMELINE ACTION PLAN OF ANDES’S HELMET COOLERS IN 2022 (NEXT) 24 EXECUTIVE SUMMARY This marketing plan project about the auto-cool helmet coolers called Andes Coolers of Andes brand illustrates detailed the plan to launch new products in the first year First, this plan includes the swot and macro-environment analysis, identification of the target market through the segmentation and from the target market, Andes Coolers can detail the positioning strategy Second, Andes Coolers design the marketing mix strategy based on the positioning to show the specific strategies for the auto-cool helmet coolers From all parts of the marketing mix strategy, the timeline will be mentioned in the action plan to identify the budget for the specific campaign INTRODUCTION In 1988 Long Huei Co., Ltd was founded in Taiwan, this company has professionally manufactured helmets for people moving on motorbikes Long Huei had the first brand of helmets named Zeus, which developed to meet the growth of demand for using motorbikes in Taiwan (sundahelmets.com.vn, 2021) Until 2001, Long Huei Company had officially an opening ceremony in Vietnam with the factory located in Binh Duong province Long Huei has created and developed the Andes Helmet brand as soon as appeared in the Vietnam market (mubaohiemandes.vn, 2021) In the current years, Andes Helmet is a top brand about the guarantee of quality helmets for consumers In 2007, Anh Toc Co., Ltd was chosen as the distributor of Andes Helmet in Vietnam with the desire that the consumers can approach the authentic helmet and help this brand can serve its customers by the best service quality After 10 years of the establishment of the Andes Helmet, the branches of showrooms were founded, and in 2019, there were 15 showrooms stores in all of the districts in Ho Chi Minh City and store in Can Tho (mubaohiemandes.vn, 2021) According to the Andes Helmet Brand, when it has just been founded, it declared the mission statement that: - Develop sustainably with other companies which manufactured helmets in Vietnam to bring benefits to economic and social development - Have more creativity and promote the advancement of technology to meet the demand of customers in the domestic and foreign markets - To be the best choice for customers with the various discount programs and the policies of improving the staff's standard of living - Stimulate the strategy of brand development, maintain the loyalty of old customers and raise the potential customers, expand the market with the slogan "For perfect happiness" The Strategic objectives for the first year: The Andes launch the new product called Andes Coolers about helmet coolers to develop the brand, enhance brand awareness Besides, Andes also wants to be the exclusive brand which the first manufacturer of helmet coolers in Vietnam Moreover, Andes Coolers desires to improve the quality of human life through the technology in the coolers SWOT & MACRO-ENVIRONMENT ANALYSIS THE ANDES’S STRENGTHS, WEAKNESSES, OPPORTUNITIES & THREATS 1.1 Opportunities O1: Multiple partner companion: Andes is the number helmet brand in Vietnam, its products are trusted by partners and customers Partners and customers are a great bridge to bring Andes helmet products to every Vietnamese family Some Andes’s Strategic partnerships such as: CocaCola, Loteria, Unilever, Vespa, BIDV, Amway,… O2: Political-legal environment: According to a study, up to 89.9% of the total helmets surveyed did not meet quality standards, failing to protect users from the risk of traumatic brain injury in the unfortunate event of a traffic accident Vietnamese law clearly regulates the quality of helmets Therefore, standard helmets are tested by the QCVN 2: 2008 standards that the Andes brand has built for a long time As a result, the company's customers feel more secure in choosing Andes helmets, helping to avoid penalties for fake, poor quality, and untested helmets being sold in the market 1.2 Threats T1: Many competitors: Currently, the whole country has over 80 helmet production facilities (down 20% compared to 2019) However, out of the total number of helmet manufacturers at present, the number of enterprises producing all components and assembling complete helmets by themselves does not exceed 10 (e.g Amoro, Protec, HSL, Honda, Royal, ), while the rest are other enterprises, especially Small establishments only produce helmet shells and buy other components to assemble helmets T2: Percentage users of motorcycles decreased The decrease in people's demand for buying motorbikes and the impact of the Covid19 pandemic in the first half of 2020, made motorbike consumption in Vietnam 2020 decrease by about 10.9% compared to 2019 according to the report Motorcycles Data 1.3 Strengths In 2010, the branch of LONG HUEI Vietnam Co., Ltd was established with the factory located at Lot CN12 CN13 adjacent to N6 and D1 streets, Kim Huy Industrial Park, Thu Dau City, Binh Duong – the head office is in Taiwan With more than 30 years of experience in manufacturing helmets for the international market, LONG HUEI Co., Ltd has always been the leader in Vietnam in the field of MBH manufacturing LONG HUEI with its strength in technology, modern equipment and human resources rich in intelligence, experience, skill level, high discipline has created products with quality, design, Various models, rich, meet the needs of domestic and foreign customers LONG HUEI factory in Vietnam uses advanced and automatic machines from Spain, Germany, Italy LONG HUEI is the only company with a modern and international standard laboratory in Vietnam 1.4 Weakness In 10 years of business and production of helmets, Andes has 12 showrooms in the central districts of Ho Chi Minh City The distribution system is only concentrated in Ho Chi Minh City, while niche markets in different provinces and cities which the population is smaller than HCMC did not have access to genuine Andes products ANALYZE THE CURRENT MARKET SITUATION FOR THE AUTO-COOL HELMET COOLERS 2.1 Demographic environment Three main cities include Ha Noi, Da Nang, Ho Chi Minh City are the most developed in Vietnam The most crowded city is Ho Chi Minh City, which has more than million people according to the General Statistics Office of Vietnam (gso.gov.vn, 2020) About the labor force, Ha Noi has the largest labor force, which occupied 67 percent in 2020 (gso.gov.vn, 2020), yet the rate of trained workers in this capital just got 48 percent in 2020 (Minh Ngọc, 2021) Ho Chi Minh City had the rate of trained workers reached 85 percent in 2020 (Hoàng Cảnh, 2020) Nowadays, most of the three markets have a large amount of using motorbikes According to the Department of Transport, in 2019, the number of motorbikes in Ho Chi Minh city reached 8,12 million, this number increased 6,14 percent in the same period in 2018 (tuoitre.vn, 2019) 2.2 Economic environment 2.2.1 Unemployment and labor supply The number of unemployed people of working age in the first nine months of 2020 was nearly 1.2 million, an increase of 132.1 thousand people over the same period last year The unemployment rate of working age in months of 2020 was 2.48%, 1.14 times higher than the same period last year The youth unemployment rate in the nine months of 2020 was 7.07 percent, up 0.45 percentage points over the same period last year The youth unemployment rate in urban areas was 10.7%, up 0.09 percentage points over the same period last year The underemployment rate of workers aged months in 2020 was 2.69%, up 1.15 percentage points over the same period last year, of which underemployment in rural areas increased by 1.21 points percent The number of unemployed people, the rate of unemployed young and The rate of underemployment increased in the comparison with those of last year which have been affected by the Covid-19 pandemic Those above factors would become Andes’s opportunities which will help recruit a large manufacturer in the first year The slogan of Andes is "For perfect happiness", the production of the new novel products which the auto-cool helmet cooler bring happiness, a comfortable feeling, and a better quality of life 1.4 Packaging All parts of the Andes Coolers are pre-installed in the box The contact packaging: Andes Coolers are packed in bubble bags to avoid collision during transportation Besides the charging cable kept in the small plastic bag which separated from the coolers The outer packing: Andes Coolers are packed in a box designed by the hard carton paper to keep safe the products inside The shipping packaging: When consumers buy the Andes Coolers, the products are contained in sturdy paper bags to easily transport in a long distance 1.5 Labeling Due to the target customers at the age between 20 to 34 years old, the labeling of Andes Coolers has the fresh red color and the font of the name products’ Andes Coolers is designed in basic type in the 1990s 1.6 Product Support Service Support Service enhances the customers’ experience when they use the exclusive production products in Vietnam Because the Andes Coolers are the first manufactured in Vietnam, they also have risks during use Providing support service to help Andes Coolers support the issues about the coolers and free repair for the coolers within the warranty period Moreover, Andes Coolers have a 24/7 hotline on the Andes website to support customers 18 PRICING STRATEGIES: As analyzed in the targeting The company decided to produce the first batch of 40,000 coolers to serve the market in Ho Chi Minh city Because the cooler is the first high-tech product characteristics in Vietnam, temporary exclusivity, market’s purchasing power is about 100.000 target customer Besides, The Andes brand is the No.1 quality in long term in Vietnam, the selective distribution system with 16 showrooms From those above, Group decide to chose the profit-based pricing to identify the price of helmet coolers: Fixed costs = 18 billion VND for the production cots + billion VND (Marketing costs) Desired profit = billion VND Variable costs = 50.000 VND Desired units sold = 40.000 Break-even point for 40.000 coolers = 40.000= 𝑓𝑖𝑥𝑒𝑑 𝑐𝑜𝑠𝑡𝑠 + 𝐷𝑒𝑠𝑖𝑟𝑒𝑑 𝑝𝑟𝑜𝑓𝑖𝑡 𝑃𝑟𝑖𝑐𝑒−𝑉𝑎𝑟𝑖𝑎𝑏𝑙𝑒 𝐶𝑜𝑠𝑡𝑠 18,000,000,000đ + 2,000,000,000đ+2,000,000,000đ 𝑃𝑟𝑖𝑐𝑒−50.000đ Price = 600.000 đ per unit Table 2: Identify the price of the Andes’s helmet coolers Figure 4: Break-even analysis for the Andes’s helmet coolers The price of coolers is expected at 600,000VND, the company uses a skimming price strategy in the first year of the new product introduction phase taking place in 2022 19 PLACE STRATEGIES: In Vietnam, Andes use the exclusive distribution strategy, they choose Anh Toc Co.,Ltd as their exclusive distributor in Vietnam They have many showrooms in cities and provinces in Vietnam and their official website For the Andes Cooler product, the product’s target market is in Ho Chi Minh city Andes Cooler Products will be distributed through the indirect channel, from manufacturer to retailer- Anh Toc Co., Ltd to consumers They open 16 showrooms in Ho Chi Minh city and have an official website so there are two ways for customers to purchase this product, direct sale at showrooms or shopping online through the website Consumers Manufacturer Retailer Consumers Figure 5: Distribution channel of Andes’s Helmet Cooler products PROMOTION STRATEGIES: 4.1 Identify the Target Audience: note: timeline campaign, the image of influencers The group has identified the target audience as a group of people between the ages of 20 and 34 who are living and working in Ho Chi Minh City In addition, key influencers strongly influence target customers, who are passionate and knowledgeable about technology, especially Andes' automatic helmet cooling technology Those influencers are Ly Thanh Co (Travel blogger), Tran Dang Dang Khoa (Travel blogger), Nguyen Duy Luan (technological blogger), vat vo studio (technological channel) 20 4.2 Determine the Communications Objectives: Brand Awareness: The goal of the communication strategy is to help customers realize the benefits that Andes coolers bring through the following activities: - Building Brand awareness on platforms such as Tiktok, Youtube, Facebook - Using the influence of tech experts to provide good Andes cooler product reviews and product manuals - Using the location advantage of 16 stores to announce new product launches from print ads 4.3 Design the Communication: Message strategy: “For perfect happiness” is the slogan that the firm wants to customers set the first impression in mind with the promise to bring the high-quality of life Creative strategy: Discuss three strengths of the auto-cool helmet coolers that consist of exclusive technology in Vietnam, improving the usability of helmets, cooling inside the helmets Message source: This message will be transformed to the target audiences by the various means of social platforms like Tiktok, Youtube, Facebook In particularly: education video clip, review video clip or post on Facebook 4.4 Select the Communication Channels Nonpersonal communication channels: Andes Coolers designed the communication strategy based on the nonpersonal communication channels to aim for the most target customers - Andes Coolers will run a discount program for 160 coolers products, which Andes discounts 20 percent for each unit - Opening Sale-off show on Jan-2022 is the event that can create attention and have a lasting effect on brand awareness about quality strengths of Andes coolers - Social media: This is an effective communication channel that creates the initial attention for the customer about the product From posts, articles and clips introducing details of influencers will create a curiosity about the product among young people aged 20-34 in Ho Chi Minh City 4.5 Establish the Total Marketing Communications Budget The project for social network platforms in the first year: the Andes will give a combo that includes a full-face helmet and an Andes cooler for each influencer The influencers will write a post or make a clip to review the effectiveness of Andes Coolers and illustrate the strength of the product Brand Andes will provide detailed specifications for influencers to easily review the products In particular, the Andes brand will spend 312,8 million VND 21 on the influencer like: Trang Dang Dang Khoa, Nguyen Duy Luan, Vat Vo Studio and 8,6% of the budget will be used to hire the online marketing articles who are the big newspaper such as: Tinh Te magazine, Tuoi Tre newspaper and Thanh Nien article Besides the social media budget, the Promotional Calendar strategy takes about 19,2 million VND for discounting 20% per unit price with 160 units in all branches More particularly presented in the timeline of the action plan 22 ACTION PLAN Figure 6: The timeline action plan of Andes’s Helmet Coolers in 2022 23 ... EXAM ASSIGNMENT MARKETING PLAN PROJECT FOR THE AUTO-COOL HELMET COOLERS OF ANDES HELMET BRAND MANUFACTURED BY LONG HUEI Co., Ltd Major: Marketing Management Subject: Marketing Management Ho Chi... ACTION PLAN OF ANDES’S HELMET COOLERS IN 2022 23 FIGURE 7: THE TIMELINE ACTION PLAN OF ANDES’S HELMET COOLERS IN 2022 (NEXT) 24 EXECUTIVE SUMMARY This marketing plan. .. marketing plan project about the auto-cool helmet coolers called Andes Coolers of Andes brand illustrates detailed the plan to launch new products in the first year First, this plan includes the