Marketing Strategy of Close-Up (Unilever)

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ANALYSIS

Overview of the Marketing Process

Marketing Environment and Customer Analysis

Marketing Strategy

Analysis

DAO THIEN NGO

2013

Introduction 3

UNILEVER Vietnam 3

Close Up 3

Vietnam market 3

Marketing Analysis 4

Overview of the Marketing Process 4

Key elements of the marketing process of closeup in Vietnam 4

The benefits and costs of the marketing orientation of closeup 12

Marketing Environment and Customer Analysis 13

Key macro environmental factors which influence marketing decisions of Close Up: 13

Key micro environmental factors which influence marketing decisions of Close Up 15

The behaviour of the target customers in different buying situations for the Close Up: 16

Marketing Strategy Analysis 19

Conclusion 21

Reference 22

UNILEVER Vietnam

In 1995 , UNILEVER– one of the largest and most prestigious corporation in the world abouttheir products of home and personal cares and foods – started to invest in VN With the slogan of “Make Vietnam lives better” , up to now , UNILEVER investment in here has surpassed the number ofUSD 300 millions and become the leading supplier in providing health, hygiene and nutrition products

to the domestic market Through many popularity campaigns and reasonable policy of prices , most

of UNILEVER products has gone into Vietnamese ‘s usual lives such as Omo , Comfort, Knorr , Lipton,Clear, Close up ,… ;many of them even rank 1st

on their fields Being one of the well-known brand inthis country , UNILEVER has been expanding their business for more new successes

Close Up

Close Up is a toothpaste product of UNILEVER Although this brand has just appeared inVietnam since 1994 , it has become a redoubtable opponent to many others competitors With thedifferent way that pay attention to people’s confidence , Close Up has taken the supports fromcustomers especially the youngers

Vietnam market

As from opening the country in 1986 , Vietnam has always be known as a one of the mostattractive markets all over the world Many world brands have been interested in this 90-million-customers vision and had no reservations in investing here a lot of money and advanced technologies The potentiality of this market is limitless, but to take up it , the company has to show its skill andspirit

Analysis

Overview of the Marketing Process

Key elements of the marketing process of Close Up in Vietnam

Understanding Marketplace and customer needs

+ Customer needs :

Because of the development of food industryespecially the sweet foods and soft drinks products,people nowadays have to do much more dental cares.One of those is to brush twice a day It means everyonehave a daily need in using toothpaste to protect

themselves from tooth decay

However, cleaning teeth for only can’t be the satisfaction,people require their toothpaste for more functions , for instance,giving them fresh breath and

white teeth Because of the fact that people talk and

communicate or even smile to others all the time , especially

the youths, they want to have the best appearance to be

confident to join in many social relationships such as go to the

office or appeal sexual partners And bright teeth and fresh

breath are two important elements that can make them totally

can be safe in mind about their impressions Catch up that

consumer’s psychology, Close Up was presented as an effective solution for the confidence andattractiveness

+Marketplace :

Doing personal cares every day is the essential demand of every people, soproducts like shampoo, shower cream or toothpaste always have markets to beconsumed Furthermore, the population of Vietnam ranks 13rd in the world with nearly

90 millions (2012) It means this is the attractive market with the strong buying powerand abundance of consumers

In addition, Vietnamese has strong innovative thought that always head theinnovations Traditional dense gel toothpastes ( white color for usual ) and rich in flour

to protect teeth are too habitual, so the appearance of a new product -Close Up - withtransparent gel as crystal and mouthwash that give customer white teeth and fresh

Althoughthe company has evaluated the situation and potential of this market in order tointroduced new product, long and exacting and effective marketing strategy plays themost important role in taking up the market share.

Design Customer-driven marketing strategy

+ Choose customer to serve:

The market of a country is very large with a lot of different types of customer Nomatter how big the company or how famous a brand, they still can’t satisfy all types of

customers When products disappoint anybuyer, its notorieties will spread to manyothers, so the prestige of company willdecrease Therefore, selecting thecustomers to whom company want to sellproducts so that both two sides receivethe biggest profits is imperative work to

do

Vietnam has the young population, and group age of 20

to 30 years old occupies high percentage

Focusing on this target customers is wise strategy of Close Up Young people tend to take care ofthemselves, express their lifestyles and prefer new things So, a different product to the traditionalones that attach special importance to highlighting the exteriors as Close Up fully meets all people ofyoung age’s desires

+ Proposition:

There are a lots of competitors in the market of any products If the company want to take

up the big market share, our products need some different features to the same kind of opponents’ inorder to bring about customers new experiences and make them easily recognize our brand Manywell-known and prestige companies have been trading in toothpaste domestic market The similarity

of them is to pay more attention on protecting customers from tooth decay and gingivitis by addingcalcium and flour rate or some kinds of plants Close Up has followed a new way We catch the idea,which others competitors skip, that help consumers have not only clean teeth but also cheery feelingthank to new fresh taste and transparent gel with mouthwash inside

C onstruct

marketing progra m

that deliver superior values (4Ps )

+ Products and Prices:

Diversify the kinds of product is remarkable issue because customers will havemore choices, and product have more chances to be sold Unilever Vietnam has presented 3 kinds ofClose Up toothpaste with many sizes: 220gr, 180gr, 150gr and mini one 30gr – which is convenient forthe trips In addition , the price also influences to consuming strength a lot The cost of a Close Uptoothpaste is about 4,000 to 28,000 VND, which are acceptable costs for most of people

+ Place:

If comparing products to blood raising thebody, so distribution system will be the blood vessels Recently,UNILEVER has set up an extensive distribution system with more than

150 wholesale distributors and 200,000 retailers in all provinces andcities of Vietnam for all company’s products in general and Close Up inparticular; including supermarkets , commercial center and groceries.This widen help products come into every residential area

+ Promotion :

Advertisement is the most effective way to make customers know about ourproducts Big companies always attach special importance to this work, so do the UNILEVER Series ofadvertising campaigns of Close Up has been launched:

“Ngay Hoi Bang Tuyet” (Christmas Snowy Activation) in December 2005

“Tim Em Noi Dau” (The Love Quest) in January 2009

“Thanh Pho Thom Mat” (Fresh City Website) from January 2010

"Dem Valentine The Ky" (The Century Valentine) in February 2011

“Hay De Tinh Yeu Dan

Loi” (Let Love Lead The

Way) in 2013

Mass media is also an useful way to popularize products Close Up has appeared

in many TV’s and newspapers as advertisements, or sponsor to some game shows In addition, Close

Up has also salvaged the rapid development of social media Many online advertising programs havecreated to attract internet users’ attentions

However, those campaigns haven’t brought about company the high efficiency that just raisethe sales for a short time Moreover, for only hold in some special occasions like Valentine , Women’sDay or Christmas , it has made customers feel that should only use this toothpaste for some specialopportunities, and shouldn’t for daily

Build profitable

relationship and

create customer

delight

+ Customer value and satisfaction :

Close Up has been satisfying its customers by bringing about them superior value:the quality of product always meet customer needs, new types have been presented regularly,packing designs have been polished so as to be perfect , and customers have protected from fakegoods by using anti-counterfeiting stamps Besides that, Vietnamese likes products of an internationalcompany, so using Close Up makes buyers feel that they have chosen a high quality and leveltoothpaste Yearly, company builds many promotion programs like giving samples, reducing the pricesand giving brushes as gifts

+ Partner relationship management:

In the relationship with partners such as materials suppliers and distributors, Close Up brand ( UNILEVER Company) has taken the strong belief by always providing products which are sufficient both quality and quantity Building good relationship with partners ensures the

sustainable development of Close Up

Capture value from customers to create profits and customer equity

Close Up has created customer loyalty throughout giving them superior value More and more people buy and use Close Up, so the retail turnover has increased considerably The more important thing is that customers want to use Close Up for more than once, and they also introduce products to many others potential customers The shortcoming of us is that there have been no any benefits to respond those customers

The benefits and

- Launching advertising campaigns This is activity that we have to spending much more money than others work of marketing process, including costs of TV’s , newspaper, magazines, and radio advertisements, and especially big campaigns which require the meticulosity and long and exacting

- Costs of product’s introduction programs, samples, gifts , and sales promotions

- Defining true target customers to serve as best as we can

- Affirming our reputation and prestige through the superior value that we bring about customers

- Building profitable relationship with customers

- Ensure that company and product brand develop sustainably

Environment and Customer Analysis

Key macro environmental factors which influence marketing decisions of Close Up

- Demography: The target customers of Close Up is youngers in urban areas Youngers

tend to have impulse buys, and they are also more easy in spending money than others groups age as long as the products they bought can satisfy them A reasonable price of 30,000 VND for a toothpaste that help them more confident in social communicating is not a big deal Besides that, in urban areas, the popular density is thick and the

infrastructure is good So if we can create the distribution and advertisement strategy for good enough, chances of products be sold will be in high rate About this , we are doing very well

- Economic environment: GDP per capita of Vietnam has increased steadily and now

reaches about USD 1,540 ( more than 30,000,000 in Vietnam Dong Spending quiet little

of money for daily using product

as toothpaste is necessaryexpense

Macro environment factors (Close Up)

Demography

Technogical environment

Political environment

Economic environment

Vietnamese has habit of thinking carefully before buying anything, but they arealso ready to spend money for a product in high quality With its own reputation andprestige, Close Up can make customers spend money

- Technological environment: The science and technology of Vietnam hasn’t caught up

with others advanced countries However, with the high class and stature of a giantcorporation, UNILEVER can invest in Vietnam the most advanced production lines andbuilding here modern manufactories to produce high quality goods Close Up has beenproducing base on those lines, so both quality and quantity are always in best state

The problem here is that the service industry of Vietnam is still poor, so lead to thelack of suppliers which can provide us raw materials such as chemicals Therefore, wehave to import them from others countries As a result of that, the prices of productshave increased which directly affects to the consumption To solve this problem, weneed to notice about investing to service industry This may require us big expenses, but

in the long term it will be a wise investment, because we can be initiative in havingmaterials suppliers, decreasing prices of products, and rising the competitive position.Furthermore, there are some companies in Vietnam which major in producingchemicals And cooperating with them is also an effective solution

- Political environment: For many years, the political situation of Vietnam has always

been stable So although the commercial laws is still complex , investors can feel secure about a safe environment for trading through many government’s preference policies toattract foreign investors such as reduce taxes, lease land with priority costs,…

Key micro

environmental

factors which influence marketing decisions of Close Up

At present, the marketing decisions of Close Up has been influencing by these following micro environmental factors

- Suppliers: Suppliers are important factor that can strongly affect to production and

building marketing strategy We need suppliers to provide us with materials andservices such as researching activity and advertising With reputation of a big company,UNILEVER can cooperate with the best suppliers to have best materials and services

- Marketing intermediaries: Products can be sold to customers from the manufactory must pass

many steps and intermediaries Those are distributions and resellers who directly sell product to

customers through below process: Close Uphas built a wide distribution channel which canprovide products to every dealers ateverywhere Besides that are services agencieswho help us do marketing research andadvertise the products

- Customers: Consumer market and reseller market

MANUFACTURER WHOLESALERS RETAILERS CONSUMERS

Micro environmental factors(Close Up)

Suppliers

Customers

Competitors

Marketing intermediaries