Solutions to improve marketing communication to increase brand recognition of VICHI

ACADEMY OF POLICY AND DEVELOPMENT INTERNATIONAL SCHOOL OF ECONOMICS AND FINANCE SENIOR THESIS Global marketing communications to improve brand recognition of VICHI Instructor: Mrs Nguyen Thi Bich Ngoc Student: Bui Thi Hong Ngoc Student ID: 5073106024 Class: KTDNCLC 7A ACADEMY OF POLICY AND DEVELOPMENT INTERNATIONAL SCHOOL OF ECONOMICS AND FINANCE SENIOR THESIS Global marketing communications to improve brand recognition of VICHI Instructor: Mrs Nguyen Thi Bich Ngoc Student: Bui Thi Hong Ngoc Student ID: 5073106024 Class: KTDNCLC 7A ACKNOWLEDGE To complete successfully my graduation thesis, I would like to express my gratitude to Mr Pham Hoang Cuong and Mrs Nguyen Thi Bich Ngoc, who whole-hearted guided throughout the process of writing this senior thesis I would like to express my sincere thanks to the teachers and students in the I.S.E.F, Academy of Policy and Development for their dedication to imparting knowledge during the years I have studied With the knowledge gained in the learning process, it is not only a foundation for the thesis research process but also a valuable tool for me to enter the life in a firm and confident manner I would like to sincerely thank the Board of Directors of TAME CO., LTD for allowing and creating favorable conditions for me to practice at the company I would like to thank the company's marketing department for helping me understand the importance as well as the necessity and complexity of marketing in the business, especially the importance of marketing communications Finally, I would like to wish all of you the teachers and students good health and success in their noble careers, good health, and great success in their work Because my knowledge is limited, in the process of practicing and perfecting this topic, I cannot avoid mistakes, I hope to receive suggestions from you and your company ACKNOWLEDGE INTRODUCTION .1 CHAPTER I: OVERVIEW OF MARKETING COMMUNICATION .3 1.1 Marketing overview 1.1.1 General concept of marketing 1.1.2 The role and function of marketing 1.2 Overview of marketing communications: 1.2.1 Concept of marketing communication: 1.2.2 The role of marketing communications: 1.2.3 Marketing communication tools: .7 1.3 Marketing communication planning process: 14 1.3.1 Identify the target audience group: 14 1.3.2 Define communication goals: 14 1.3.3 Design messages: 18 1.3.4 Choice of media: 20 1.3.5 Determine media budget 22 1.3.6 Evaluation of results - test communication activities 24 1.4 Factors affecting the implementation of the marketing communication strategy: 25 1.4.1 Micro environment: 26 1.4.2 Macro environment: .29 1.5 Criteria to evaluate the effectiveness of marketing communication activities 31 1.5.1 Match the media budget 32 1.5.2 Target customer awareness level 32 1.5.3 Determine the outcome measures 33 1.5.4 Compare performance with set standards .34 1.5.5 Take the appropriate action 34 1.5.6 Some methods of evaluating communication effectiveness 35 1.6 Overview of brand awareness communication 36 1.6.1 Mode of operation 36 1.6.2 Special Considerations Regarding Brand Awareness 37 1.6.3 Other Ways to Create Brand Awareness 37 CHAPTER II: Actual situation of communication marketing activities of TAME's VICHI cream products 39 2.1 Overview of TAME CO., LTD: 39 2.1.1 The process of formation and development of TAME CO., LTD: 39 2.1.2 The organizational structure of TAME CO., LTD: 40 2.1.3 Business field and development orientation: 43 2.2 The production and business situation of TAME: 45 2.2.1.VICHI product introduction 45 2.2.2.VICHI's business results in 2years 2019-2020 .46 2.3 Marketing activities for VICHI products at Tame Vietnam Co., Ltd: 50 2.3.1.Target market: 50 2.3.2.Marketing activities for VICHI cream products at TAME Vietnam: .51 2.4 Current status of marketing communication for VICHI cream products of TAME CO., LTD .56 2.4.1.The company's target audience: 56 2.4.2.Communication goals: 57 2.4.3.Company message: 58 2.4.4.Media that the company is using: 60 2.5 Evaluate the effectiveness of the company's communication activities: 63 2.5.1.Results achieved: 63 2.5.2.Limitations: .66 2.5.3.Evaluating the cause: 69 CHAPTER III: Some marketing solutions to improve the efficiency of communication activities of TAME CO., LTD 70 3.1 Basis for choosing marketing solutions to improve the effectiveness of TAME's communication activities: 70 3.1.1.Industry development trends: 70 3.1.2.SWOT analysis 71 3.1.2.1.Strengths: .71 3.1.2.2.Weaknesses: 72 3.1.2.3.Opportunity: 72 3.1.2.4.Threat: 73 3.2 Some marketing solutions to improve the communication efficiency of TAME CO., LTD: 74 3.2.1.Solutions related to marketing communication planning: 74 3.2.1.1.Identify the target audience 74 3.2.1.2.Define communication goals 75 3.2.1.3.Media message 75 3.2.2.Solutions related to communication tools: 75 3.2.2.1.Advertisement 75 3.2.2.2.Public Relations 76 3.2.2.3.Direct marketing 77 3.2.3.Other solutions 78 3.2.3.1.About the product 78 3.2.3.2.About price78 3.2.3.3.About distribution channel 79 3.2.4 Some recommendations: 80 3.2.4.1.With TAME CO., LTD: 80 3.2.4.2.With the state 81 3.2.5.With foreign markets for VICHI’s product 81 CONCLUSION 83 REFERENCES 84 INTRODUCTION Rationale: The economy is developing day by day, living standards are increasing, especially the open market mechanism has created favorable conditions for businesses to participate in this potential market These are the opportunities and challenges for businesses to assert themselves and find their strong foothold in the market, but at the same time, face many difficulties For pharmaceutical products when the customer's ability to trust drug quality is not high, building a marketing communication campaign to create a desired image in the customer is an important tool in competition in this industry Aware of this issue, along with the enthusiastic guidance of Lecturer Nguyen Thi Bich Ngoc, I focused on researching the topic "Solutions to improve marketing communication to increase brand recognition of VICHI” for my graduation thesis Research objectives: Research overview of marketing communication, analyze and evaluate the current status of marketing communication activities of TAME CO., LTD from there will propose some ideas to improve the effectiveness of marketing communication for the product " VICHI cream "of TAME CO., LTD in the period 2021 - 2022 Research subjects: The research object of the graduation thesis is marketing communication activities for VICHI cream products at TAME CO., LTD - Scope of research: Content: Researching the current status of marketing activities and communication activities of TAME CO., LTD, researching on solutions to improve the efficiency of communication activities of the company - Space: TAME CO., LTD - Time: Basing on three-year data from 2018 to 2020 Research Methodology: Applying the method of synthesis, analysis, and theoretical comparison with practice To increase persuasion of my thesis, I have used a number of diagrams and tables The structure of the thesis: In addition to the Introduction and Conclusion, the thesis includes parts: Chapter I: Overview of marketing communication Chapter II: Actual situation of communication marketing activities of TAME's VICHI cream products Chapter III: Some marketing solutions to improve the efficiency of communication activities of TAME CO., LTD CHAPTER I: OVERVIEW OF MARKETING COMMUNICATION 1.1 Marketing overview 1.1.1 General concept of marketing The term "Marketing" was first used in 1902 in the lecture halls of the University of Michigan in America Up to now, along with the non-stop development of human civilization, the term "Marketing" has also undergone constant changes and diversification The appearance of many concepts of marketing in the business field as well as many other fields such as politics, culture, sports, science has proved this According to Phillip Kotler - a famous American marketing professor, has defined that: "Marketing is a form of human activity to satisfy their needs and wants through communication processes." (Source: Philip Kotler (1994), Marketing Management, Statistical Publishing House) However, in order to match the different business conditions at each stage of economic development, in 2007, the American Marketing Association introduced new definitions of marketing as follows: “Marketing is a collection of activities and structure mechanisms and processes to create, communicate and deliver things of value to consumers, customers, partners and society at large " At the same time, according to the opinion of Professor Dr Tran Minh Dao: “Marketing is not only a business management function, but it covers business activities from discovering purchasing power and transforming the purchasing power of consumers into the real demand for a particular product, to CHAPTER III: SOME MARKETING SOLUTIONS TO IMPROVE THE EFFICIENCY OF COMMUNICATION ACTIVITIES OF TAME CO., LTD 3.1 Basis for choosing marketing solutions to improve the effectiveness of TAME's communication activities: 3.1.1 Industry development trends: Vietnam is a country with a young population structure The number of people aged 15-40 will reach nearly 50% by 2020, which is the age group that is considered to have the greatest demand for cosmetics and beauty care in Vietnam Obviously, young people have a great demand for cosmetics and beauty products because it affects their appearance, while the elderly and uncles need not, but will still be much less Moreover, young people also tend to use services related to shopping, travelling, working They need to focus on their appearance to be more confident in front of the crowd The awareness of pharmaceutical and cosmetic industry for health and beauty care is increasing day by day Therefore, Vietnamese consumers are well aware of which products should be used Because of the COVID epidemic, consumers are now turning to home beauty products rather than going to the hospital or spa Faced with that situation, at present, large and small enterprises, new and old, are engaged in research and development of forms of trading on social networks Currently, pharmaceutical and cosmetic industry is a cosmetic market that is researched and formulated as a pharmaceutical product It has the use of care, beauty,… and it can also treat the root of the problem that the cosmetic line usually cannot In addition, pharmaceutical products are also certified In terms of: safety, production and distribution licenses, etc from relevant authorities and the Ministry of Health in the country The pharmaceutical and cosmetic industry tends to develop strongly It is growing in many countries including Vietnam And especially skin and hair care products According to a survey conducted by Q&Me, with 458 women aged 16 and over, in January 2020, it gives an overview of the cosmetic consumption situation of Vietnamese people The survey shows that the average amount that Vietnamese women spend on skin care cosmetics is 436,000 VND (21% spend 200,000-300,000 VND per month; 8% spend 50,000 VND; 7% spend more than 1,000,000 VND) The survey also shows that women in big cities like Ho Chi Minh City and Hanoi are willing to spend more on skincare and makeup products Consumers search for information about cosmetics in Vietnam through Facebook accounted for 69%, followed by friends 48%, then on websites such as websites of cosmetic brands or on news sites for women Online shopping demand also increased from 57% in 2019 to 63% in early 2020 Online shoppers are willing to spend more money when there are promotions on online sites and when they see many positive reviews from people used 3.1.2 SWOT analysis 3.1.2.1 Strengths: TAME Co., Ltd has its own office, invested with modern and advanced equipment; the staffs are experienced, active and have a high sense of responsibility in their work Quality products ensure safety, certified by the Ministry of Health Product information in Vietnamese helps users know the ingredients, origin, and expiry date; thereby, creating trust and closeness of customers And the price is right In particular, the promotion of online sales in the context of the COVID19 epidemic has also helped the company bring in profits without being significantly affected Besides, the Company's image and brand, especially VICHI brand, are also known and trusted by customers 3.1.2.2 Weaknesses: Brand promotion and marketing are still limited Therefore, after years of existence and development, the company's brand recognition and market share have not improved much Inadequate administrative procedures, unresolved corruption and informal fees continue to make the business environment in Vietnam unattractive, which is a barrier for investors and businesses foreign industry The number of highly qualified employees is not much, human resources are still being screened and supplemented, the ability to adapt to the market and large workload is not high 3.1.2.3 Opportunity: The COVID-19 situation around the world is very stressful Market barriers and trade restrictions are gradually removed, and access to capital and foreign markets is better More and more companies compete in the same industry, thus requiring differentiation of goods and services Followed by that is the increasing need to build and position the brand in the minds of customers, which is done through marketing communication activities Therefore, now and in the future, the demand for mixed promotion activities increase, this is a great opportunity for TAME Co., Ltd The cosmetic market in general and cosmetic pharmaceuticals in particular in our country currently still has a very strong potential for development, which is also reflected in the statistics and very positive forecasts about the market future, large market demand creates great opportunities for all businesses, not just VICHI products, the problem is to know how to meet and exploit reasonable market potential The market trend is increasingly favoring products of natural origin, which are beneficial to the health of consumers In the context that the living environment is increasingly polluted, people tend to prefer to use natural products, especially those that are good for health That creates a huge opportunity for products like VICHI to exploit the market 3.1.2.4 Threat: Currently, businesses mainly focus on quality but neglect design, brand PR, etc Therefore, Vietnamese cosmetics lose right on their own turf The brand does not exist, so the distribution of goods is limited Beauty followers only use cosmetics with clear brands or origins Moreover, Vietnam has a cosmetic hospital, so customers often go to the hospital for treatment instead of buying at retail brands With the current situation of rising prices, raw materials, and production costs, the cost of VICHI products cannot increase much because people's ability to pay is still limited This poses a difficult problem for the company, which is not to increase prices and still be profitable The cosmetic and pharmaceutical market also has the participation of many other firms such as famous Spas, or potential competitors such as Cao Bach Sam, Huyen Phi these large enterprises will excel in terms of capital scale, management skills, operating experience, marketing and well-trained staff Without preparing all the best conditions, enterprises in the pharmaceutical and cosmetic industry will face difficulties, not exclude, they will be annexed or will become agents of foreign enterprises There is a shortage of senior human resources and no comprehensive capacity building solution An increase in the unemployment rate reduces consumer confidence Comment: Although there are still many weaknesses and facing many challenges, with the strengths that VICHI has, it opens a promising future for TAME Co., Ltd The company needs to prepare carefully, carefully calculate and set out strategies and measures to handle and overcome the risks that the company may encounter in the coming time Therefore, the company needs to build an image and reposition the brand in the minds of consumers 3.2 Some marketing solutions to improve the communication efficiency of TAME CO., LTD: 3.2.1 Solutions related to marketing communication planning: TAME Co., Ltd will implement the communication plan in 2020 - 2022 3.2.1.1 Identify the target audience During the communication period from 2020 - 2022, TAME Co., Ltd., in addition to the old target public groups, the company identifies new customer groups based on geographical characteristics The company will expand the market through social networks Facebook, Tiktok into other areas of provinces and cities across Vietnam, so it will target the public group of people, workers, parents, especially women over 18 years This public group is relatively consistent with company policy 3.2.1.2 Define communication goals In addition to the goals that the company has set, in the coming period, the company will pay more attention to the number of customers who have used, cured and want to introduce friends to buy, have goals to increase the number of customers : 2020 - 2021: building a return customer policy 2021 - 2022: the number of returning customers increases by 30% compared to 2020 For the potential market, the company's communication goal is to create satisfaction and trust for VICHI products With this market, the company's goal is to expand and capture about 25% of the market The company achieved an annual growth of 20-30% compared to 2020 3.2.1.3 Media message The company still uses the communication message "VICHI - Effective solution for acne and folliculitis" 3.2.2 Solutions related to communication tools: 3.2.2.1 Advertisement Keeping a promotional image and video forever will easily cause boredom for customers That's why all the products of the brands they regularly change advertising images and videos periodically TAME Co., Ltd should also improve and change the image and design of the products to create something new and stimulate customers The design must also be relevant to the customer the company is targeting With the view of today's customers, they will not like to read a lot of words when they are not really interested in the content that the Facebook page posts Therefore, promoting marketing with images and videos will easily reach the majority of customers Limit the number of words in the posted content to avoid confusing readers The video should also choose attractive background music to make an impression on customers Expandable with print advertising, the company can advertise directly in a number of magazines such as: Consumer Consulting, Women's World these magazines also have a relatively large, independent circulation pretending to be young people with stable income, this is suitable for the company's target customers These are newspapers with large coverage, trusted by consumers 3.2.2.2 Public Relations Maintain and expand cooperation with Deal or Voucher buying and selling sites Online deal shopping sites are now attracting a lot of customers Referring to the products on the top deal pages, the number of buyers on a product is at least under 100 and as high as a few hundred people It can be seen that customers today are very interested in learning product information and shopping online Therefore, the company needs to maintain cooperation with old deal sites, expand cooperation with new deal sites Vouchers for customers will be reduced from 20-30% compared to the original price Exchange image links with heavily visited websites This exchange is only done when both parties benefit and only when the Company has financial capacity Choosing high-ranking websites to exchange images is a very effective form that has both a large number of viewers and a high reputation But it will cost a lot in this proposal With the initial estimate, the Marketing department suggested that the company pay 1-3 million for each website In addition, there are currently young people called "Influencer" who are 18-30 year olds who have a certain degree of influence on social networks When a post they post online, simply a photo of any product, followers will buy that product immediately Traffic will increase significantly after they publish the article Depending on the amount of tracking, the cost for post can be up to 510 million VND The cooperation with the "Influencer" friends will also get very good results and the cost is not too high Table 1.10 Budget table for writing PR articles on some personal Instagram pages of KOLs (Influencers) based on followers: Fol 100.00 200.00 500.00 3.2.2.3 Direct marketing Telemarketing: With the number of people using phones, especially mobile phones, today is increasing, there is an opportunity for a form of telemarketing for companies to reach closer to customers Through this tool, employees will communicate to customers the company's promotions and introduce products and services that the company provides to consumers In addition, the phone is also used to solve customer questions and polls Online marketing: in this form, the company builds its own online sales website, and then proceeds to advertise products on those websites as the company is currently doing The content posted is mainly to introduce the products that the company provides and the benefits that customers get when buying the company's products through the website such as 20-30% discount for each course Employees are responsible for managing their company's information online and for updating the newsletter every day Keep the company website at the top of the search list, impress customers from newsletter information When using this method, the customer database is a very important thing, the company must establish regular and priority relationships with loyal customers 3.2.3 Other solutions 3.2.3.1 About the product According to the research of experts: mild inflammation ones should use course and severe and long-term inflammation should use COMBO Moreover, regular application of cream and exfoliation 1-2 times a week will help speed up the effect This should be carefully consulted before and after the customer receives the product In addition, during transportation, if there is a spill or spill, it will be completely handled and returned for free Customers are allowed to open the goods to check before receiving and paying the shipper 3.2.3.2 About price The functional departments related to the price making stage should cooperate with the Sales - Marketing Department to minimize the cost of production of products, limit the increase in the price of the product, but still have the assurance of product quality, quantity of packaging and labeling of mineral water for customer satisfaction, increasing price competition for the company 3.2.3.3 About distribution channel Implementing a wide distribution policy is what the company really wants to If the distribution policy works effectively, the promotion activities will quickly be promoted and implemented well through the distribution intermediaries The current system of VICHI's operating channels is short, not long and mainly in Hanoi and places where Facebook ads bring In other places, the product is not available or available, customers not know the product, they buy less, which makes the output and sales lost to competitors is significant In order for the system to work effectively, the company should open more branches in other regions, or give higher discounts to intermediaries operating in that area, we may not need profit or little to have market to grow in the future From the available distribution channels, the company carefully considers the effectiveness of each current channel, which channels are really effective, the company should focus on investing, which channels are ineffective, should be deleted revoke Consider the level of consumption and competition of each market to have an investment direction for stations, branches, agents and retail channels Provide binding contracts for agents and distributors in each area to strictly manage the company's pricing policy for each market that is used by distributors and agents to take advantage of their influence market developments plan, sales deployment strategy, protect and develop the company's market share After implementing the communication campaign, the company needs to evaluate the communication effectiveness that it has achieved through sales, investigate the psychology of customers before and after the communication program In short, it is difficult to have a single policy that works separately to bring high efficiency, so it is necessary to have a synchronous coordination between the policy of promotion and expansion with other policies of the marketing-mix system for business activities The Company's business is becoming more and more efficient 3.2.4 Some recommendations: 3.2.4.1 With TAME CO., LTD: The company needs to have a strategy to invest in training and developing its human resources: Offer attractive salary and bonus policies to attract good, dynamic candidates with sharp market knowledge Create conditions for employees to go to school to improve their qualifications and skills and invite experts to train in communication and sales to foster more knowledge for source staff Strengthen supervision of market staff because in many places, agents have major changes that staff in this area not grasp and report to superiors Organize more contests to encourage employees' talents and create cohesion and solidarity among all levels Senior managers often stand side by side with employees Thereby monitoring, evaluating and encouraging employees to work, creating a friendly working environment TAME should advertise regularly to enhance the brand and image of VICHI in the minds of customers Strengthen relationships with distributors and agents so that they are loyal to VICHI brand When having the loyalty of distributors, the company's products will be more developed and offered for sale by them The company offers reasonable pricing and distribution policies to stimulate distributors to promote product consumption 3.2.4.2 With the state The State should have policies to encourage domestic companies to boost production and business, remove unnecessary procedures, and create conditions for enterprises to stabilize production In addition, the state should encourage Vietnamese people to use Vietnamese goods, create many commercial channels to promote and help companies through the current difficult situation The State should create incentives on loan policy for the Company The Department of Industry, the General Department of Standards, Metrology, and Quality should have measures to stimulate and encourage companies to apply ISO 9001-2000 3.2.5 With foreign markets for VICHI’s product The country that TAME chose is Korea If compared globally, the cosmetic market of Vietnam is relatively small But it is growing rapidly Korean cosmetics are always rated as one of the most popular cosmetic products by Vietnamese consumers Because of the variety, richness of products and ease of use, it is suitable for Asian tastes and cultures and is also affordable Talking about the beauty market in Asia, the Korean name is always at the top, not only developing in aesthetics but the country's cosmetics industry is also a prominent highlight The development process of the Korean cosmetics industry is increasing very quickly with many famous cosmetic brands such as The Face Shop, 3CE, Innisfree, Ohui, etc The cosmetics industry in particular and other service industries in general are very developed and account for a high market share in GDP structure Therefore, Korea's cosmetics industry is a very potential industry, promising to develop in the future Currently, consumers are gradually afraid of fake cosmetics of unknown origin, not only of poor quality, but these products also cause unnecessary consequences for consumers' skin Realizing the widespread situation of low-quality machines and cosmetics, mainly from China, VICHI has outlined a plan to move to Korea despite the Covid-19 epidemic, with the desire to bring all users the best products quality and safe products with natural extracts, improving the lives and confidence of customers CONCLUSION In the process of forming and developing TAME Co., Ltd has achieved business achievements as not easy During my internship at TAME Co., Ltd., it helped me gain more understanding of marketing communication activities With the ultimate guidance of the instructor and the sales and marketing staff of TAME, I have learned a lot outside of the book of knowledge about marketing activities at the company, especially marketing communication activities to complete the thesis with the topic: "Solutions to improve marketing communication in product brand recognition of VICHI " However, for a student who has not been closely related to the real situation, his experience is still limited, so his thesis cannot avoid errors, the comments are still subjective I am not completely accurate Therefore, I would like to receive sincere contributions from the teachers of the Department of Economics and from the aunts, uncles, brothers and sisters in TAME Co., Ltd so that I can complete this thesis well Finally, I would like to express my sincerest and deepest thanks to Mr Pham Hoang Cuong, Mrs Nguyen Bich Ngoc and the aunts and uncles and brothers and sisters in TAME Co., Ltd for creating favorable conditions for me to have the opportunity to approach real and complete this thesis Thank you sincerely! Hanoi, June 25, 2021 Student Ngọc Bui Thi Hong Ngoc REFERENCES Vietnamese Prof Dr Tran Minh Dao (2009), Basic Marketing Textbook, National Economics University Publishing House Philip Kotler (1994), Marketing Management, Statistical Publishing House Al Ries and Laura Ries (2005), Advertising abdicates PR to the throne, Ho Chi Minh City Youth Publishing House) Online Documentation http://apd.edu.vn/ https://viemnanglong.tame.vn/ https://www.brandsvietnam.com/ https://tamegroup.vn/ ... Some marketing solutions to improve the efficiency of communication activities of TAME CO., LTD 70 3.1 Basis for choosing marketing solutions to improve the effectiveness of TAME's communication. .. Overview of marketing communication Chapter II: Actual situation of communication marketing activities of TAME's VICHI cream products Chapter III: Some marketing solutions to improve the efficiency of. .. Aware of this issue, along with the enthusiastic guidance of Lecturer Nguyen Thi Bich Ngoc, I focused on researching the topic "Solutions to improve marketing communication to increase brand recognition