final report consumer behavior product vi dan washing powder of vico company

In which researches customer behavior when standing in front of detergent products to know how customer choose, what they choose, what can make the customer pay attention to a product...

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FINAL REPORT CONSUMER BEHAVIOR

PRODUCT VI DAN WASHING POWDER OF VICO COMPANY Instructor: Mr Nguyen Dinh Cuong

Members:

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download by : skknchat@gmail.com

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INSTRUCTOR’S COMMENTS

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I INDUSTRY/ PRODUCT INTRODUCTION 5

1 Consumer behavior introduction 5

2 Industry/ Product background 5

a Washing powder industry in Viet Nam 5

b Company VICO introduction 8

c Vi Dan product introduction 9

II IN-DEPTH INTERVIEW INFORMATION 10

1 Title of research 10

2 Problem 10

3 Research purposes 10

4 Research subjects 10

5 Type of research 10

6 Survey object 10

7 Survey location 10

8 Survey time 10

III RESPONDENTS BACKGROUND 11

IV KEY INSIGHTS 12

1 General behavior – Factors that consumers are interested in buying and using process 12 a Behavior, opinions and determinants of buying behavior of the worker 12

b Behavior, opinions and determinants of buying behavior of the housewife 13

2 Consumer behavior of Vi Dan 14

a Object 1. 14

b Object 2. 15

c Object 3. 16

d The outstanding features of Vi Dan through online survey 17

3. Analyzing the behavior of two housewives through practical observation (influencing factors: design, layout, promotion, gifts) 17

V RECOMMENDATION 19

1 Rising customer’s awareness strategy 19

2 Marketing channels strategy 19

3 Display strategy 19

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I INDUSTRY/ PRODUCT INTRODUCTION

1 Consumer behavior introduction

Conducting this research with the purpose of researching how both potential customers as well as loyal customers of Vi Dan behave and think when buying In three different processes, including the decision-making process to find out what customers look for about a detergent product in terms of price, product, location, space, customer service, etc The next process is the purchase choice: How

do the customers decide? In which researches customer behavior when standing in front of detergent products to know how customer choose, what they choose, what can make the customer pay attention

to a product How about company affiliate to personally know what customer like and dislike about the company as product and after three stages, based on the results to come up with a proposed promotion plan based on what somethings have just studied save from company's target customer

2 Industry/ Product background

a Washing powder industry in Viet Nam

65% of Vietnamese wash their clothes every day and most of them are using washing machine.However, there are still 42% people wash clothes by hand only or before input those to washingmachine In addition, washing powder is the most common product to use for clothes washing

How do you wash your clothes?

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Omo is the most common used product nationwide Vietnamese washing powder market used to be the competition of Unilever and P&G for a long time Since 2012, the new entrance of some domestic products did change the situation which made the market became more active However, currently Omo from Unilever is still the dominant which overwhelm other competitors for the brand experience with 83% people said that they have used this product at least once Other brands from Unilever such

as Surf, Viso also play good roles in wining consumers’ experiences P&G with Tide and Ariel are placing at the 2nd and 3rd in the ranking Surprisingly, some domestic brands such as Aba and Lix aregetting more market share despite of late launching

Which brands of washing powder or liquid have you

(or your family) used?

is the group of products target at lower segment which are Tide, Surf, Lix and Viso accordingly

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Which brands of washing powder or liqid are you

(or your family) currently using?

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Which brands of washing powder or liquid are you currently use?

Surf Tide Attack Aba Ariel Omo

b Company VICO introduction

VICO Company is an enterprise specializing in the production and trading of detergents, cosmetic chemicals and specialized chemicals import and export, experiencing more than 20 years of development and continuous innovation VICO is gradually becoming a leading enterprise in Vietnam South to conquer the world market VICO is the owner of famous brands such as Vi Dan detergent, VF detergent, Twolemon dish soap, VICO dish soap Starting with many difficulties and challenges from rival companies – multinational corporations in thesame field as Unilever or P&G with great financial potential, strong marketing campaign, VICO chosefor its own path "good product, reasonable price" That is why Vi Dan washing powder was born

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c Vi Dan product introduction

Consumers' demands are increasing with their lives Therefore, detergent products that only meet the basic needs of washing clothes will not be enough to satisfy consumers Understanding this, in 2007, Robot 5 star Vi Dan washing powder was born with five effects: white, clean like new, long-lasting fragrance under all weather, no harm to hand skin, bactericidal and environmental friendly Robot 5 star Vi Dan washing powder is one of the key products of VICO when it contributes a big part in the development of the company.

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II IN-DEPTH INTERVIEW INFORMATION

Using face-to-face interview, questionnaire survey and online interview (Facebook

Messenger) in order to reach the people using and used Vi Dan in urban market.

6 Survey object

The survey will be performed on three different kinds of consumers (housewife, worker and student) to observe more generally also to save time but still know their behavior and thinking about buying and using detergent.

7 Survey location

The location will be at the interviewees' houses to ensure that they will have the most

comfortable mood, avoiding other factors affecting their psychology and answers.

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III RESPONDENTS BACKGROUND

Demographic Ages from 18 to 60

All gender but mainly housewives

Psychographic Depending on period during marriage and family size

Choosing high quality goods and cheap price goods Going to supermarkets and markets every week Often washing clothes for family

Buying products recommended by acquaintances Watching TV in free time

Socioeconomic Office workers, workers and housewives

All education

Geographic Mainly urban market

Middle and low income areas in the central region

Vi Dan is a product of VICO Co., Ltd., produced by Vietnamese people, so Vi Dan is made forVietnamese, brearing Vietnamese cultural styles Hence Vi Dan has cited that segment:

Firstly, the demographic Vi Dan targets are all gender, but mainly housewives The price of Vi

Dan is not expensive, which is used for people living in middle and low income areas in the centralregion Vi Dan’s potential customers are people whose ages from 18 to 60, have high using demand

Secondly, the psychographic Consumers are very busy in modern life so they are very smart in

choosing products One important factor is depending on period during marriage and family size.Because women who get married (especially the housewives) will have higher using demand thanyoung women Besides, it depends on their family size If their family has few people, they will choosethe small size of product On the contratry, the bigger family size is, the more amount of washingpowder they use With the housewives, they like high quality and cheap price products They can go

to supermarkets or markets at weekend to see all the goods and decide to buy the best products fortheir family Sometimes they will be affected by recommendation from acquaintances Housewivesoften stay at home to take care of their family, so they watch TV in their free time During watching TV,they can see Vi Dan’s advertisements, these things also influence on them

Thirdly, the socioeconomic Consumers are the the housewives, or can also be the workers or

office workers They mostly have high education, in addition there are manual workers with loweducation Especially, workers care about the ability to clean clothes and remove stains

Finally, the geographic Vi Dan mainly attacks the urban market, the middle and low

income areas in the central region Because this is a market with a high population density,and urban consumers tend to use detergent products more than rural consumers Therefore,

Vi Dan is able to survive and grow (easily get profit).

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IV KEY INSIGHTS

1 General behavior – Factors that consumers are interested in buying and using process

In this section, the analysis will be conducted based on face-to-face interview responses with two objects, there are housewife and worker, both of them do not use Vi Dan detergent products The purpose of this survey is to identify better what attracts the average detergent consumers and how other detergent brands retain their consumers.

a Behavior, opinions and determinants of buying behavior of the worker

Name: Huynh Hong ThamAge: 24 Occupation: Barista

Pre-purchasing.

Product: Tham has used four types of washing powder (includes Omo, Tide, Aba, Suft).

Currently, she is using Omo and has been loyal to this brand for four years The package factor does not play an important role in her buying decision And the different scents mentioned in the advertising for laundry detergent go unnoticed.

Price: For a worker, the factor of price is outstanding While deciding to buy one of two

different types of detergent products, Tham's quality factor is placed behind the price factor.

Promotion: When being asked which detergent advertisement made the most impression,

Tham replied that it is the advertisement of Aba detergent because it follows a different style from the past detergent advertisement, does not focus on the typical uses and advantages but focus on the everyday conversations and then randomly lead to the product She is not impressed by the sampling and trial forms while shopping because of her the current product

is meeting the demand, so no matter what promotion is, she does not change other products.

Place: Tham trusts to buy laundry detergent in the supermarket because the price is cheaper and

more stable than the grocery stores and she also prefers the supermarket space When being asked

to choose between product A that is widely sold in many locations and product B that is affordable andquality but only sold in only one store, Tham chooses product A because it is easy to find and buy It isclearly to conclude that Tham favors convenience over quality

Purchasing.

Her buying laundry detergent decision is easily altered by offers and discounts that comes from other products she does not use After the situation was put in place, she said she would consider the offer, if it gave her the feeling that it was a good deal, she would buy it Therefore, it can be seen that Tham's loyalty level to the Omo detergent is not high.

The situation is based on two pictures of two detergent packages (a simple white design (A), blue and red color with a more prominent design (B)), when being asked about the more attractive package, her answer

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was type A with white package because it gave a minimalistic feeling and the colors were comfortable and fresh, she commented that package B looked very out of fashion and confused This shows that package plays a quite important role in attracting Tham's attention Tham will continue to choose to buy Omo with another net weight in case the weight which she often uses runs out of stock The layout of laundry detergents in supermarkets which is placed at eye level also impresses her more.

Post-purchasing.

Tham wanted the package to have a design that was easy to open before using, although the current product of Tham still had to use scissors when opening; however, this did not make she feel uncomfortable Before using Omo, she used to try to utilize Tide and Aba, then change to Omo for long-term is according to Tham's personal opinion She thinks that Omo’s quality is better and cleaner, so she does not pay attention to the factor of not cautic and pay much attention to the change of Omo’s quality over time In addition, Tham's behavior of using Omo stems from her family's habit of using this product, namely her mother.

Conclusion: From the above references, Tham tends to focus on prices, discounts,

promotions, advantages over usage, she is not attracted to sampling and trial She uses Omo because it is a family habit, influenced by her mother Lastly, her loyalty to Omo is low.

b Behavior, opinions and determinants of buying behavior of the housewife

Name: Luong Bich Huu Age: 58 Occupation: Housewife

Pre-purchasing.

Product: Mrs Huu has used five different washing powder products They are Tide, Omo, Lix, Net,

Ariel, Viso Recently, she has been using Omo and her loyalty to this product lasts for five years Thesame as Tham, Mrs Huu does not care much about the design of the product’s package She is notattracted by the kind of smell of washing powder through TVC, either

Price: The same as the mentality of the worker, Mrs Huu has been known as a housewife who also pay

much attention to the price But if the quality is not good she will not care about the price is cheap or not

Promotion: She has a big impression on the Aba TVC because of its unreasonable details,

different from other washing powder’s TVC It is easily seen that the kind of promotion such

as sampling, trial in market and supermarket could not make her pay attention to other products if she does not have the demand of finding another better product From the above facts, she would not make buying decision via these kinds of promotion.

Place: According to the question of which one is worth trusting, buying at the supermarket and buying at the

grocery store, the answer of Mrs Huu is that she trusts both of them, but she would like the supermarket rather than the grocery store since the price is stable and there are attractive promotions such as discounts,give presents, sales off, etc When being asked to choose between product A that is widely sold in many locations and product B that is affordable and quality but only sold in the only one store, her

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selection was the product B and she explained that she was willing to go to the only store to buy the washing powder if it was satisfied with her requirement.

Purchasing.

Her buying laundry detergent decision is quite steadily with offers and discounts that come from other products she does not use After the situation was put in place, she said she would continue buying her washing powder no matter how attractive the promotion is So, it

is believed that her loyalty to the product Omo is quite high.

The situation is based on two pictures of two detergent packages (a simple white design (A), blue and red color with a more prominent design (B)), when being asked about the more attractive package, her answer was B with red package because its design looks like a detergent product while the package A does not have a similar design of a laundry detergent This showed that her mindset refered kind of familiar package for the detergent.

Mrs Huu will not only continue to buy Omo with another net weight but also buy a bigger net weight in case the weight which she often uses runs out of stock.

Post-purchasing.

After a long period of using washing powder, Mrs Huu said that the package needed to be improved

in order to open and store easily Before changing to Omo, she used to loyal to Viso and Lix, then sheleft because the Omo’s quality was better, its smell also better than Viso’s and Lix’s During usingprocess, Mrs Huu released that its package changed and its prices increased over time; however, shecontinued using Omo products as this change did not affect her much

Conclusion: Through the above answers, what factors Mrs Huu cares about are product quality,

price, and place, respectively In addition, she is not interested in sampling and trial form at the salessite Mrs Huu is the key factor in her family, who makes buying-decision and she is not influenced byother factors in her buying behavior As a result, her loyalty to Omo products is quite high

2 Consumer behavior of Vi Dan

a Object 1.

Name: Dinh Thao Van Age: 22 Occupation: Worker

Pre-purchasing.

Product: Van used lots of kinds of washing powder such as Vi Dan, Omo, Ariel, Aba, Tide, Surf, Lix.

But she does not care much about the design or color of the package.

Price: Quality is the most concerned issue It is clearly that the cleaner the washing powder

is, the better it is However, price is also important Everyone likes good price Therefore, if Van can save more money, she will definetely choose the cheap one.

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