Building and developing hydrotrim brand in vietnam market

HCMC OPEN UNIVERSITY UNIVERSITEÙ LIBRE DE BRUXELLES SOLVAY BUSINESS SCHOOL MASTER IN MANAGEMENT PROGRAM (MMVCFB 6) HO VAN THAI BUILDING AND DEVELOPING HYDROTRIM BRAND IN VIETNAM MARKET THESIS TUTOR : Assoc Pro Dr NGUYEN DONG PHONG MASTER IN MANAGEMENT THESIS Hochiminh City 2006 WARRANT STATEMENT This is my original work All data and results stated in the thesis are completely true Ho Van Thai ACKNOWLEDGEMENTS I wish to express my deep gratitude to Professors, Universiteù Libre de Bruxelles, Solvay Business School and Hochiminh City Open University for providing knowledge and giving valuable experience during my study I would like to give my special thanks to my Tutor, Associate Professor Doctor Nguyen Dong Phong, for his valuable guidance, advice and encouragement throughout my research study Deep appreciation and thanks are also extended to my colleagues, classmates, Mega Lifesciences Company and my family for their support and encouragement throughout the program Ho Chi Minh City, 20 November 2006 Ho Van Thai TABLE OF CONTENTS Acknowledgements Comments List of figures List of tables Introduction …………………………………………………………………………………………………………………………… 1 Problem statement ……………………………………………………………………………………………… Objectives of research study …………………………………………………………………………… Scope and limitation of research study ………………………………………………………… Study method ………………………………………………………………………………………………………… Structure of the study ………………………………………………………………………………………… Chapter 1: Literature review ………………………………………………………………………………………… 1.1 Definition of brand …………………………………………………………………………………………… 1.1.1 What is a brand? …………………………………………………………………………………………………… 1.1.2 Brands versus products ………………………………………………………………………………………… 1.2 Brand building and developing ……………………………………………………………………… 1.2.1 Brand orientation model …………………………………………………………………………………… 1.2.2 Corporate branding ……………………………………………………………………………………………… 1.2.3 Building Brand Value through Customer Service …………………………………… 13 1.2.4 The role of public relations in branding …………………………………………………… 13 1.3 Branding in pharmaceutical industry …………………………………………………………… 15 1.3.1 Pharmaceutical brands ……………………………………………………………………………………… 15 1.3.2 The Brand Value Pyramid – Functional vs Emotional Benefits ……… 17 1.3.3 Laying the Foundations …………………………………………………………………………………… 18 Summary of chapter …………………………………………………………………………………………………… 20 Chapter 2: Introduction to Mega Lifesciences, Vietnam pharmaceutical market and reducing weight product market ……………………………………………………………… 21 2.1 Overview of Mega Lifesciences Company Limited (Mega We Care) 21 2.1.1 Mega Lifesciences International ……………………………………………………………… 21 2.1.2 Mega Lifesciences Vietnam ……………………………………………………………………… 25 2.1.2.1 History …………………………………………………………………………………………………………… 25 2.1.2.2 Operation……………………………………………………………………………………………………… 26 2.1.2.3 Organization ……………………………………………………………………………………………… 26 2.1.2.4 Medicap’s philosophy, objectives and strategy………………………………… 29 2.1.2.5 Medicap’s products ……………………………………………………………………………………… 30 2.1.2.6 Medicap’s sales performance ………………………………………………………………… 31 2.2 Pharmaceutical Market in Vietnam ……………………………………………………………… 33 2.2.1 Overview of pharmaceutical market in Vietnam ………………………………… 33 2.2.2 OTC pharmaceutical market in Vietnam ………………………………………………… 34 2.3 Reducing weight product market …………………………………………………………………… 34 2.3.1 Overweight and obesity concepts ……………………………………………………………… 34 2.3.1.1 What are overweight and obesity? …………………………………………………………… 34 2.3.1.2 Facts about overweight and obesity………………………………………………………… 36 2.3.1.3 Overweight and obesity in Vietnam ………………………………………………………… 37 2.3.2 Survey on reducing weight product market in Vietnam ……………………… 38 2.3.3 Analysis of Hydrotrim competitors ……………………………………………………………… 41 2.3.3.1 Classification by price and scientific proof ………………………………………… 41 2.3.3.2 Strenghts and weaknesses of Hydrotrim competitors …………………… 42 2.3.4 Opportunities and threats of Hydrotrim ………………………………………………… 44 2.3.4.1 Opportunities ………………………………………………………………………………………………… 44 2.3.4.2 Threats ……………………………………………………………………………………………………………… 45 Summary of chapter ………………………………………………………………………………………………… 46 Chapter 3: Building and developing Hydrotrim brand in Vietnam for the last period…………………………………………………………………………………………………………………………………… 47 3.1 Targeting and positioning Hydrotrim …………………………………………………………… 47 3.1.1 Hydrotrim consumer profile…………………………………………………………………………… 47 3.1.2 Customers …………………………………………………………………………………………………………… 48 3.1.3 Positioning …………………………………………………………………………………………………………… 48 3.2 Hydrotrim identity ………………………………………………………………………………………………… 49 3.2.1 Hydrotrim brand as a product ……………………………………………………………………… 49 3.2.2 Hydrotrim price …………………………………………………………………………………………………… 50 3.2.3 Hydrotrim image………………………………………………………………………………………………… 50 3.2.3.1 Hydrotrim name, color and symbol…………………………………………………………… 50 3.2.2.3 Communication ……………………………………………………………………………………………… 52 3.3 Integrated marketing programs to build and develop Hydrotrim brand in Vietnam ………………………………………………………………………………………………………………………………… 52 3.3.1 Marketing objectives of Hydrotrim for the first 12 months ………………… 52 3.3.2 Hydrotrim trial campaign to build the credibility ………………………………… 53 3.3.2.1 The trial research cooperated with Traditional Medicine Institute 53 3.3.3.2 Two trial researches by Mega Lifesciences itself ………………………… 55 3.3.3 Hydrotrim launching campaign ……………………………………………………………………… 56 3.3.3.1 Pharmacy meeting in Hochiminh city and Hanoi …………………………………… 56 3.3.3.2 Television talk show ………………………………………………………………………………………… 58 3.3.3.3 Press articles ……………………………………………………………………………………………………… 59 3.3.3.4 Tele-consulting program……………………………………………………………………………… 60 3.3.3.5 Consumer promotion …………………………………………………………………………………… 62 3.3.3.6 Trade promotion ………………………………………………………………………………………….… 63 3.3.3.7 P.O.S display ………………………………………………………………………………………………… 63 3.3.3.8 Medicap Sales Force…………………………………………………………………………………… 65 3.3.4 Hydrotrim post-launching campaign………………………………………………………… 65 3.3.4.1 Television programs ……………………………………………………………………………………… 66 3.3.4.2 Press articles …………………………………………………………………………………………………… 66 3.3.4.3 Trade promotion …………………………………………………………………………………………… 66 3.3.4.4 Promoter Girl at pharmacies ……………………………………………………………………… 67 3.3.4.5 Promoter Girl at supermarkets …………………………………………………………………… 67 3.4 Evaluation of building and developing Hydrotrim brand …………………………… 68 3.4.1 Sales performance ……………………………………………………………………………………………… 68 3.4.1.1 Sales of Hydrotrim from June 2005 (launching month) to June 2006 68 3.4.1.2 Sales evolution from June 2005 to June 2006 ………………………………………… 69 3.4.1.3 Sales vs target for the first 12 months ……………………………………………………… 70 3.4.1.4 Ranking of Hydrotrim …………………………………………………………………………………… 70 3.4.2 Availability of Hydrotrim at pharmacies …………………………………………………… 70 3.4.3 Survey on Hydrotrim brand awareness ……………………………………………………… 72 3.4.3.1 Consumers surveyed and methodology ………………………………………………… 72 3.4.3.2 Results of the survey……………………………………………………………………………………… 72 3.4.4 Survey on consumer perception of Hydrotrim brand …………………………… 73 3.4.4.1 Objectives of the survey …………………………………………………………………………… 73 3.4.4.2 Criteria to select consumers ………………………………………………………………………… 74 3.4.4.3 Methodology …………………………………………………………………………………………………… 76 3.4.4.4 Results of the survey ……………………………………………………………………………………… 76 3.4.5 Survey on pharmacy perception of Hydrotrim brand ………………….………… 83 3.4.5.1 Objectives of the survey ……………………………………………………………………………… 83 3.4.5.2 Criteria to select pharmacies ……………………………………………………………………… 83 3.4.5.3 Results of the survey………………………………………………………………………………………… 84 3.5 SWOT analysis ………………………………………………………………………………………………………… 95 3.5.1 Strengths …………………………………………………………………………………………………………………… 95 3.5.2 Weaknesses ……………………………………………………………………………………………………………… 97 3.5.3 Opportunities ………………………………………………………………………………………………………… 98 3.5.4 Threats ……………………………………………………………………………………………………………………… 99 Summary of chapter …………………………………………………………………………………………………… 100 Chapter 4: Recommendations for developing Hydrotrim brand in Vietnam market for the next years ……………………………………………………………………………………………… 101 4.1 Marketing objectives for the years from 2007 to 2010 …………………………… 101 4.2 Marketing programs for the years 2007 to 2010 ………………………………………… 102 4.2.1 TV programs ………………………………………………………………………………………………………… 102 4.2.1.1 TV channels ………………………………………………………………………………………………………… 102 4.2.1.2 Programs and contents …………………………………………………………………………………… 103 4.2.2 Press articles …………………………………………………………………………………………………………… 103 4.2.2.1 Newspapers and magazines …………………………………………………………………………… 103 4.2.2.2 Contents ………………………………………………………………………………………………………………… 103 4.2.3 P.O.S materials …………………………………………………………………………………………………… 104 4.2.4 Tele-consulting activity …………………………………………………………………………………… 105 4.2.5 Trade promotion and consumer promotion ………………………………………………… 106 4.2.6 New programs ………………………………………………………………………………………………………… 106 4.2.6.1 TV commercials…………………………………………………………………………………………………… 106 4.2.6.2 Press advertisements ……………………………………………………………………………………… 106 4.2.6.3 P.O.S display …………………………………………………………………………………………………… 107 4.2.7 Market research …………………………………………………………………………………………………… 107 4.2.8 Sales Force …………………………………………………………………………………………………………… 108 Summary of chapter …………………………………………………………………………………………………… 109 Conclusions ……………………………………………………………………………………………………………………… 110 Lessons ……………………………………………………………………………………………………………………………… 111 Appendices References LIST OF FIGURES Figure Content Page Brand hexagon 10 Elements of corporate branding 11 The six conventions of corporate branding 12 Brand value pyramid 17 Organization chart of Mega Lifesciences Vietnam 27 Organization chart of Medicap Vietnam 28 Organization chart of consulting of Medicap Vietnam 29 Medicap sales performance from 2000 to 2005 31 Medicap sales by customer type in 2004 and 2005 32 10 A picture of one target consumer of Hydrotrim 47 11 Hydrotrim box and sachets 51 12 Pharmacy meeting in Hochiminh city 55 13 Talk show “Kien Thuc Tieu Dung” on HTV 59 14 Consulting cards sent to Hydrotrim consumers 61 15 Hydrotrim VCD package 62 16 Hydrotrim poster 63 17 Hydrotrim leaflet 64 18 Hydrotrim sales kit 65 19 A Promoter Girl worked at Maximart Cong Hoa, HCMC 68 20 Sales of Hydrotrim from June 2005 to June 2006 69 21 Percentage of means consumers know Hydrotrim from 77 22 Percentage of responses to benefits to consumers 85 - 108 - professional companies like AC Nielsen or Taylor Nelson Sofres At least one market survey should be done every year to measure the market share and brand awareness and to understand consumers’ insight 4.2.8 Sales Force In order to achieve the challenging targets of availability and coverage, we cannot depend on pharmacies themselves We should have Sales Representatives in other cities and provinces to make sure the right communication to target pharmacies and then to target consumers Furthermore, promotion and P.O.S display campaigns are only successful with the active role of Sales Force From 2007 to 2010, Sales Force should be increased to 30 Sales Representatives to cover more cities and provinces such as Haiduong, Namdinh, Vinh, Quangngai, Quynhon, Buonmathuot, Dalat, Vungtau and Vinhlong One Sales Representative is responsible for each city or province We also suggest that current Sales Representatives should also cover additional areas; for example, Sales Representative in Haiphong also covers Quangninh; Sales Representative in Danang also covers Quangnam; Bienhoa with Binhduong; Mytho with Bentre; Cantho with Soctrang; Longxuyen with Caolanh and Rach gia and Camau with Baclieu Until 2010, Hydrotrim Sales Force will covers 28 cities and provinces in Vietnam - 109 - Summary of chapter In this chapter, we presented the recommendations for developing Hydrotrim brand for the next four years based on the marketing objectives and SWOT analysis presented in the previous chapter Integrated marketing programs recommended were maintaining the successful programs, improving some current programs and implementing new programs In the last part of this thesis, we will make conclusions from the research study and then give some lessons for Vietnamese companies from the case of building and developing Hydrotrim brand in Vietnam - 110 - Conclusions The final part of the thesis is for the conclusions we make from this research study and then some lessons for Vietnamese companies to build and develop their brands The importance of brand building and developing in Vietnam market From the case of building and developing of Hydrotrim brand in Vietnam market we once again emphasize the importance of brand building and developing Without effort of continuous brand building, Hydrotrim cannot stand at the top of its category After getting the first successes, developing the brand is also very important The model of building an OTC pharmaceutical brand through an example of Hydrotrim We used the brand orientation model to show the case of Hydrotrim The case of Hydrotrim also proves the important role of corporate branding together with product branding Other key points we see in the case of Hydrotrim are using customer service and PR activities rather than advertising to communicate the brand messages Last but not least, four key criteria of building and developing a pharmaceutical brand were also stated in the case of Hydrotrim: relevance, credibility, difference and stretch - 111 - Lessons from Hydrotrim case Continuous brand building Many Vietnamese companies have still not realized the importance of brand building They focus on the product rather than the brand In the case of reducing weight products, many companies focus on the finance and production rather than marketing Therefore, even though they have good products, they cannot make them being aware by consumers Market research Any marketing strategy and program needs to be based on understanding the market Market researches are not so expensive if they are done by the company itself Customer service Always remember that customer service plays an important role in brand building and developing Customers not only need good products at affordable prices, but also need to be served and considered important PR activities Vietnamese companies can spend their advertising and promotion fund on PR activities rather than advertising, especially at the first stage of brand building PR activities are cheaper and more effective than advertising in a sense of educating and convincing consumers with proven scientific data and successful customers i APPENDICES APPENDIX PHIẾU THĂM DÒ Ý KIẾN NHÀ THUỐC Nhà thuốc: Địa chỉ: Số đñiện thoại: Chủ nhaø thuốc: Chúng xin chân thành cảm ơn quý nhà thuốc ủng hộ thời gian vừa qua Kính xin quý nhà thuốc dành chút thời gian trả lời câu hỏi khảo sát Sự hợp tác quý nhà thuốc giúp phục vụ quý khách tốt Bạn vui lòng nêu lợiđđiểm Hydrotrim người tiêu dùng Bạn đánh giá hoạtđđộng đâây Hydrotrim? Hoạt động Các chương trình truyền hình Các viết báo Chương trình khuyến cho Rất hiệu Khá Ít hiệu Rất Không hiệu quả hiệu ý kiến ii nhà thuốc Chương trình khuyến cho người tiêu dùng Tờ rơi nhà thuốc Chương trình tư vấn nhà thuốc (do Promoter thực hiện) Chương trình tư vấn qua đđiện thoại Chúng nên làm thêm hoạt động khác? Bạn vui loøng cho biết ba sản phẩm giảm cân bán chạy nhaø thuốc bạn Bạn vui loøng cho biết ưu sản phẩm giảm cân bán chạy (sản phẩm cạnh tranh Hydrotrim) Xin chaân thành cảm ơn hợp tác quý khách hàng iii QUESTIONNAIRE FOR PHARMACY Pharmacy name: Address: Phone number: Pharmacy owner: …… We would like to say thankyou to you for your support for the last time Please could you spend time to answer to the below questions Your cooperation will help us to serve you better Please state one benefit of Hydrotrim to consumers ………… Please could you evaluate the below marketing activities of Hydrotrim? Activity Very Quite A little Not effective effective bit effective at effective all No idea TV programs Press articles Trade promotion Consumer promotion Leaflets at pharmacies Promoter at pharmacies Tele-consulting What else we should do? iv Please present top selling reducing weight brands at your pharmacy Please state the advantage of top competitor of Hydrotrim Thankyou for your cooperation v APPENDIX NHẬN ĐỊNH VỀ HYDROTRIM (người sử dụng) Họ tên:……………… …………………………… Địa chỉ: Số ñiện thoại: Tuổi bạn Dưới 25 † 26 – 35 † 36 – 45 † 46 – 55 † Treân 55 † Bạn biết Hydrotrim từ đâu? (chọn yếu tố quan trọng nhất) Các chương trình truyền hình Các viết báo Nhà thuốc giới thiệu Bạn bè, người quen giới thiệu Nhân viên nhà thuốc Tờ rơi nhà thuốc Khác Bạn có thấy phản ứng phụ Hydrotrim không? CÓ † KHÔNG † Bạn có thích đđược tư vấn qua điện thoại không? CÓ † KHÔNG † Bạn cho biết đánh giá bạn hoạtđđộng tư vấn qua điện thoại công ty Mega Lifesciences vi (0: không ý kiến, 1: , 2: kém, 3: trung bình, 4: tốt, 5: tốt ) Tháiđđộ nhân viên tư vấn Kỹ giao tiếp Giải đáp thắc mắc Thời gian tiếp nhận gọi Góp ý bạn ñể cải thiện hoạt ñộng tư vấn quađñiện thoại Bạn có hài lòng qùa tặng Hydrotrim không? hộp tặng hộp Hydrotrim Rất thất vọng (1) † Không hài lòng (2) † Hài lòng (3) † Rất hài lòng (4) † Góp ý quà tặng Hydrotrim : ……………………………… Bạn giảm bao nhieâu kg sau duøng hộp Hydrotrim? 10 Bạn có hài lòng với kết giảm cân không? Rất thất vọng (1) † Không hài lòng (2) † Hài lòng (3) † Rất hài lòng (4) † 11 Bạn vui lòng cho biết lý bạn không hài lòng: Xin chaân thành cảm ơn hợp tác bạn vii QUESTIONNAIRE FOR CONSUMER (ALREADY USED) Name: …………………… Address: City / province:……………………………………………………………….…………………………………………………… Phone number: Your age Under 25 † 26 – 35 † 36 – 45 † 46 – 55 † Over 55 † How did you know Hydrotrim? (please select the most important factor) TV programs Press articles Pharmacy recommendation Friends, family’s recommendation Promoter consulting at pharmacy Leaflets at pharmacy Other Have you observed any side-effect of Hydrotrim? YES † NO † Do you like to be consulted by phone (tele-consulting)? YES † NO † Please could you evaluate the tele-consulting activity of Mega Lifesciences (0: no idea , 1:very bad, 2:bad, 3:acceptable, 4:good, 5:very good ) viii Tele-consulting staff’ attitude Communication skill Answer to questions Waiting time What we should to improve the tele-consulting activity? Are you satisfied with the gift of Hydrotrim? Buy boxes get one box free Very dissapointed (1) † Dissatisfied (2) † Satisfied (3) † Very satisfied (4) † Comments on the gift of Hydrotrim : ……………………………… How many kg of your weight was reduced after you take boxes of Hydrotrim? 10 Are you satisfied with the rsult of reducing your weight? Very dissapointed (1) † Dissatisfied (2) † Satisfied (3) † Very satisfied (4) † 11 Please state the reason of dissatisfaction Thankyou for your cooperation ix APPENDIX TOP 20 OTC BRANDS IN VIETNAM MAT Q2 06 (Source: IMS Meridian Research report) x REFERENCES Vietnamese Business edge (2006), Nghiên cứu thị trường giải mã nhu cầu khách hàng, Nxb Trẻ, Tp Hồ Chí Minh Lê Anh Cường (2004), Tạo dựng quản trị thương hiệu danh tiếng – lợi nhuận, Nxb Lao động – xã hội, Hà Nội TS Dương Ngọc Dũng, TS Phan Đình Quyền (2005), Định vị thương hiệu, Nxb Thống kê, Hà Nội Lê Xuân Tùng (2005), Xây dựng phát triển thương hiệu, Nxb Lao động – xã hội, Hà Nội David J Luck, Ronald S Rubin (2005), Nghiên cứu marketing, Nxb Thống kê, Hà Nội (Translators: PTS Phan Văn Thăng, Nguyễn Văn Hiến) English Brannan, Tom (1998), A practice guide to integrated marketing communications, Biddles Ltd, Guildford and King’s Lynn, Great Britain Keller, Kevin Lane, Building, Measuring and Managing Brand Equity, The Prentice Hall, New Jersey Kotler, Philip (2000), Marketing management, The Prentice Hall, New Jersey McDonald, Malcom (2005), Marketing plans, Elsevier ButterworthHeinemann, Italy 10 Ries, Al and Laura (2002), The fall of advertising and the rise of PR, Harper Business xi Websites 11 www.brandchannel.com 12 www.imsasia.com 13 www.megawecare.com 14 www.who.int ... and reducing weight market Chapter Building and developing Hydrotrim brand in Vietnam for the last period Chapter Recommendations for developing Hydrotrim brand in Vietnam market for the years... on the building and developing Hydrotrim brand since the launching in Vietnam market in June 2005 -3- It will only focus on Hydrotrim of Mega Lifesciences in big cities such as Hochiminh city,... importance of brand building and developing in the survival and development of a product Secondly, this research will help us to study the building Hydrotrim brand in Vietnam for the last year and then