Marketing strategy for laurier sanitary napkins of kao vietnam

UNIVERSITÉ LIBRE DE BRUXELLES SOLVAY BRUSSELS SCHOOL OF ECONOMICS & MANAGEMENT HO CHI MINH CITY OPEN UNIVERSITY MMCoM8 PHAM NGUYEN THUY AN NGUYEN THI NGUYET MINH MARKETING STRATEGY FOR LAURIER SANITARY NAPKINS OF KAO VIETNAM MASTER FINAL PROJECT MASTER IN MARKETING AND COMMUNICATION MANAGEMENT TRƯỜNG DAL HOC HO TA THƯ VIỆN Academic Tutor: Prof Nguyen Minh Ha Practicing tutor: Bui Thi Thanh Ha Ho Chi Minh City (2015) AT ` “.a TABLE OF CONTENTS STATEMENT OF AUTHENTICA TION .-+-sstteetreertrirttrrrrrrrrrrrrrre i ACKNOWLEDGEMENTS TABLE OF CONTENTS ssssssssscsssssssseessssessstesnsssanssensssssasesnsstsnesseesssnnetiesessnsesnets iii LIST OF ABBREVIATION LIST OF FIGURES LIST OF TABLE CHAPTER : PROJECT OVERVIEW csssssscssssssscssssesessneecssnseecessnscesssucsessnscsessseecees 1.1 REASON FOR CHOOSING THIS PROJECT .sssssssssccssssnssesesssessnssessessssnsesessesssss 1.2 PROBLEM STATEMENT .ccssssssssssessssssescsssseesssssessssnssssnsscsessuseecssneceessueecessneessess 1.3 PROJECT OBJECTIVES AND QUESTIONS .sscssssssssssssssssssesesscssssssssceceesssssnseecice 1.3.1 Project objectives 1.3.2 Project questions 1.4 SCOPE AND LIMITATION 1.5 RESEARCH METHODOLOGY 1.5.1 Desk research (secondary data) 1.5.2 Qualitative research (primary data) cscsssssssecsssssssescsseesssessssecsssecssesesssvessucesnneees 1.6 STRUCTURE OF THE STUDY - ©+e£+E++++EEE++vtEECvkrrEEELxerrrrrerrrrrke 2.1 CONCEPT OF MARKETING STRATEGY 2.2 STRATEGIC ANALYSIS 2.2.1 External analysis 2.2.2 Internal anaÏySiS s2 xEE1xEE11111121117111711 0711117111 -s-2211110 2xecrrke 2.3 SWOT ANALYSIS i- c2 F19930) c y2 v2csaA .ỊỎ § 2.4.1 Generic strategies — Competitive adVanfage . -sse+vcvzeecccreeeerrrrecee 2.4.2 Blue ocean SIAI€BV, 2.4.3 Functional stTat€gÏ€S cetiteererrerrie — c2 E2 x2 12121112211171112111012111110 171 111tr 10 CHAPTER : SITUATION ANALLYSIS 55 22222ecEC2EEvvrtEErkerrrrrrer rrrrke - 14 EODS>4y2.9/.90.9/.)09/9/00SM 14 i 3.1.1 The Vietnamese market OVerVieW .ssscssssscssssecsssssessssseselesssesesssseesenssecsasaseeessane 14 3.1.2 PEST model sssssesssssssssssssssessessssseceesssssssessessssnseeecesssssssssessssssssususssesensnseeeeeseeane 16 3.1.3 Competitive landscape ssssessssssssscssusessssseccssssecsssssesssssessssssveccssseeesesnnesessneeessase 23 3.1.4 Consumers ccssssscssssssssssesssscsesssneeeccensssnseesessssssnsessessssssssecsessssssesssssesansnseseesssenaneee 30 3.2 INTERNAL ANALYSIS cssssssssssssssssssssesccessnsuessessesssssesccessssssseeesssssssssuesecarsnsneveteees 38 3.2.1 Kao Vietnam overview ccssssecsssssssessssesssssecsssssescssssesssssusssssssecsssnseccsssneessuuseesese 38 3.2.2 Laurier marketing strategy 3.3 SWOT analysis CHAPTER : MARKETING STRATEGY ccssssssssssssssssssssesssssssssssessssssssssveseseensnsniees 54 4.1 Re-Positioning strategy in Vietnam market ssssssssssesssssssessssueecesssecsssssecesssueesssese 54 4.2 New brand proposition strategy sssssssssssssssssesssscsssssvesesessssssssesessssneceesersnnseseteeees 56 4.3 New packaging proposal 4.4 Product display 4.5 Creative brief and communication direction 4.6 Kiey ViSuil -cs-ccscveerxecrserrerrseersrre 59 CHAPTER : CONCLUSION AND RECOMMENDATION ccccccc 61 9990030022 5566 ::Ở:,-ậẨẬ::AAA 61 5.2 RECOMMENDATION REFERENCES [3299060aa.1 .,H.AẬHĂ) 66 LIST OF ABBREVIATION CAGR Compound Annual Growth Rate CPI Consumer Price Index GDP Gross Domestic Product GSO General Statistics Office NW Non-Woven PE Polyethylene R&D Research and Development WTO World Trade Organization VỈ v2.2 RE Re LIST OF FIGURES Figure 2-1: Overview ©OỀ strategic market management (Aaker, 2001) . . -:+ Figure 2-2: The sustainable competitive advantage (Aaker and MeLoughlin, 2010) Figure 2-3: Four actions amework - Value curve of Blue Ocean Strategy . Figure 2-4: Brand Resonance Pyrarmid - ss++++++++++++E++rxetxtrreerrerrxrrrerrserrerre 11 Figure 3-1: Market size of sanitary protection in Vietnam 2008-2018 . - 14 Figure 3-2: Market size of sanitary napkin in Vietnam 2012-2013 .2 s-css= 15 Figure 3-3: Market share by top sheet of napkin in Vietnam 2013 sssssssesssescseeesseeessees 16 Figure 3-4: Menstrual pads .sscsssscsseessseesssessssecsnecsscssneessasecsuecenscsssuccanecssusecssecesneessveessves 20 Figure 3-5: Age pyramid of Vietnam population in 2012 .-se ©se©secse©xsecseerz 21 Figure 3-6: Cross-sectional view ofa sanitary napkin css-cvssczveerrverrrercrreeee Figure 3-7: Sanitary R&D Figure 3-8: Company Shares of Retail Sanitary Protection: % Value 2009-2013 Figure 3-9: Price assortment by pad Figure 3-10: Market contribution channel in cities 27 Figure 3-11: Media share of spending by year 28 Figure 3-12: Media spending (Unit: USD) 1*t half2014 29 Figure 3-13: “Confident teenager” campaign of Kotex .29 Figure 3-14: “Being a girl, doing what you want is great” campaign of Diana Figure 3-15: Kinds of sanitary napkins consumers use during menstruation 31 Figure 3-16 : Important product attributes ssssssssssescssssescssssecssssesccssssesersssecsessuesessneeeees 33 Figure 3-17: Important emotional attributes ssssscsssssscssssesccssscscsssseessssseesessseeesssssecesssuee 33 Figure 3-18 : Consumer’s touch points .cccssscssssessssesssecssseccsseesssssssscssssesssscssssecssvecesevenseees 34 Figure 3-19: Consumer’s touch points by target cusfomer øroups -+-+ 35 Figure 3-20: Price concerns of Sanitary Napkins 2-2+2 zeeccvvveerecreeerrrrr 36 Figure 3-21 : Common place for buying sanitary napkins (Source: W&S, 2012) 37 Figure 3-22: Kao Mission — Vision — Values - Prïneiples - ¿ -sscccvvzeeccvecee 38 Figure 3-23: Sales breakdown by business (Fiscal Year 2013) .¿-cccsseccccvs 40 Figure 3-24: Kao Vietnam strategy until 2018 .sccccssssssscssssescssssecesssseesssssssecsssseeesssseessssnse 40 Figure 3-25: Laurier business strategy from 2014 - 2018 -sccs©xscssersccreel 41 ` .a Figure 3-26: Positioning of Laurier in Vietnam market .s-+ sez©vvsecczsee 42 Figure 3-27: Laurier FRESH & FREE positioning csec©cvveeccccceerrrree Figure 3-28: Laurier Super Slimguard positioning + vzevvveerccvzeerrrre - 44 Figure 3-29: Laurier napkin structure (Source: Kao R&D, 2013) Figure 3-30: Laurier FRESH & FREE testing result in PE Top sheet users (6 cities) 46 Figure 3-31: Brand Awareness - Benchmark HCMC sssssssssssssssesscssseescesseesssssesesssseseese 47 Figure 3-32: Brand Image sssssssscsssseecesssescesssecesssseccessnccessssecssssecessueseesssssesssssesessuseessese 47 Figure 3-33: Laurier Purchase Proces - Benchmark HCMC sc.ssssssssssssssssssssessssssesesssesessas 48 Figure 3-34: Purchase Proces - Benchmark HOMC .ccssssssssssessssssesessssesssssseeesssssessssseesess 48 Figure 3-35: Brand power by brand — Benchmark HCMC - ¿2s 49 Figure 3-36: Laurier marketing activities 2013 sssesssssssssssecssessssecessesssseessusessecessseesseeess Bi Figure 4-1: Laurier Blue Ocean Strategy proposal c.ccsssssesececeesectessecsesnecesssseeseeseeaeenees 54 Figure 4-2: New brand proposition strategy ssssscsssssescsssescssssesccssseecsssseessssseessssseessssseess 56 Figure 4-3: New package proposal for Laurier sssscsssssescsssescsssseesesssessesssseesssseeesssseseesss 57 Figure 4-4: Products display comparision .ssssssscssssssssesssscsssesssssssssecssscssssecssscensueessevesseees 58 Figure 4-5: Key visual of new communication SITAECBY ve 59 "` LIST OF TABLE Table 2-1: Drivers in SWOT model dimensions (Ward and Rivani, 2005) § Table 3-1: BMI short-term political stability rating — Asia Pacifie Q4 2014 17 Table 3-2: Viet Nam-Japan”s tariffs 2012-20l § - «5s csesrerkrrserrxerkrerserkrerie 18 Table 3-3: Vietnam Economic by year Table 3-4: Result of the Vietnam — household living standard survey 2012 Table 3-5: Competitor summary Table 3-6: Product line u p - + «+ +ketkeSEkeEEkeEExtEkrtErkrrkvrkrrkrrkerkeerkrrrkrrkerrrerrke 25 Table 3-7: Demand change caused by number of pads use per day . -s-s++ 32 Table 3-8: SWOT analySis .tsssssssseseessesssesssssesesescusesecensecacesatssscenscenccenceneeensensenneeaseese 52 Table 4-1: Laurier Blue Ocean Straf€gy DFODOSAÏ St nhờn 55 Table 5-1: Brand stage development by Y€aT .-ô+ +9 xetrerxetrkerxkerkerrkerke 62 cate CEM aơa CHAPTER : PROJECT OVERVIEW 1.1 REASON FOR CHOOSING THIS PROJECT According to Euromonitor International (June 2014), Sanitary Protection in Vietnam, the positive growth rate of Sanitary Protection in Vietnam was 15% in 2013 Especially, Non-Woven market increased rapidly with 67% that mainly fostered by the increasing of consumer’s awareness about hygiene and better education about the benefits of these products However, hot and humid climate of the motorcyclist women feel uncomfortable when they face with menstruation situation Therefore, they tend to look for sanitary napkin with high absorbent and low permeable reverse to give dryness feeling Especially, Sanitary napkin is a sensitive image, thus, women want to stay active during their period and be virtually unaware of the napkin’s presence The Kao Group develops consumer product business that targets general consumers In the diverse business fields, Kao remains committed to Yoki - Monozukuri (In Japanese, "Yoki" literally means "good/excellent" "Monozukuri" means "development/manufacturing of products.") implemented from the consumer/customer's perspective so that we may strive for the wholehearted satisfaction and enrichment of the lives of people globally In Vietnam, Kao launched Laurier sanitary napkin since 1998 Their strategy is focus on distribution and promotion strategy With strong distribution network, good display in supermarket as well as grocery store and high promotion, but Laurier just gained value share 2.1% during 16 years While value share of their competitors are very big (Kotex: 41.2%, Diana: 35.9%) in total market size is 5,200 billion VND (Source: Euromonitor International June 2014) So, after consider all elements, we decided to choose this project in order to understand the situation and propose the solution 1.2 PROBLEM STATEMENT Well-known and loved by women throughout Asia, Laurier is a leading brand in sanitary protection offering a wide variety of high-quality products to suit every woman's needs All because Laurier understands that we can't change periods, but we can change the way you feel about them © Xà Nà Xe But, in Vietnam Laurier brand awareness is still very low, as well as the consumers are not able to clearly identify the Laurier’s brand image While competitors brand images were very clear with “Confident Teenager” of Kotex and “Being a girl is great” of Diana In order to re-determine the consumer’s acceptance of Laurier sanitary napkin, the primary studies needed to be conducted to explore the target consumers’ insights The target consumers’ insight is the foundation to shape the marketing strategy for re-launching Laurier in Vietnam 1.3 PROJECT OBJECTIVES AND QUESTIONS 1.3.1 Project objectives The main purpose of this thesis is to build marketing strategy for Laurier Sanitary napkin through create new value in niche market and propose trustful brand image to increase trial users, pull back stop purchaser in order to boost sales volume With this core purpose, the research objectives are: o Overall analysis of Vietnam sanitary protection industry o To re-determine customer’s insight in term of using behavior and needs o To propose suitable marketing strategy for Laurier 1.3.2 Project questions Based on the project objective set above, there some project questions: o What are the Strengths- Weaknesses-Opportunities-Threats of Laurier? o What are the consumer insights in term of using and purchasing behavior? What are their unmet needs or expectation? How to satisfy them? o What kinds of marketing strategies should Laurier apply? 1.4 SCOPE AND LIMITATION Laurier was distributed in nationwide with mainly focusing in cities Due to constraint time and budget, the primary research just can be conducted in Ho Chi Minh And, research methodology is qualitative research So, we need to measure by quantitative research to confirm all finding element ¬—— ` a 1.5 RESEARCH METHODOLOGY In this case, the “Qualitative research” has been chosen to capture the acceptability of Vietnamese consumers for making new strategy Selecting research design is the next step after choosing type of research There are four types of research design from which to select: survey, experiments, observation and secondary data (Zikmund, 1997) In this study, both survey and secondary data methods are used in combination 1.5.1 Desk research (secondary data) Data from external: PEST (political, economic, social, technological), market (size, growth, trend ), competitors (products, strategies, strengths, weaknesses se) Data from internal: annual reports, market research, company value chain, product information 1.5.2 Qualitative research (primary data) A customer survey - in-depth interview with 20 consumers, was carried out to understand the usage behavior, purchase behavior, perception and expectation of consumers toward sanitary napkins so that the brand can find the strong approach for new strategy 1.6 STRUCTURE OF THE STUDY Chapter 1: Project Overview — - This chapter includes the rational of study, problem statement, research objectives and questions, scope and limitation, methodology, and structure of the study Chapter 2: Literature Review - This chapter provides theories related to marketing strategy and marketing mix It includes definitions, models, and structures of strategic analysis of internal and external environments, 4Ps strategy including branding and integrated marketing communication Chapter 3: Situation Analysis - This chapter analyzes the internal and external factors including PEST analysis, customer analysis, competitor analysis and cooperation analysis Chapter 4: Marketing strategy — Base on the SWOT would be proposed in this chapter Chapter 5: Conclusion and Recommendation analysis, a marketing strategy ... the marketing strategy for re-launching Laurier in Vietnam 1.3 PROJECT OBJECTIVES AND QUESTIONS 1.3.1 Project objectives The main purpose of this thesis is to build marketing strategy for Laurier. .. Overall analysis of Vietnam sanitary protection industry o To re-determine customer’s insight in term of using behavior and needs o To propose suitable marketing strategy for Laurier 1.3.2 Project... 38 3.2.1 Kao Vietnam overview ccssssecsssssssessssesssssecsssssescssssesssssusssssssecsssnseccsssneessuuseesese 38 3.2.2 Laurier marketing strategy 3.3 SWOT analysis CHAPTER : MARKETING STRATEGY