GROUP 4 FINAL REPORT

1 GROUP ASSIGNMENT Topic Integrated Marketing Communication Program Class MKT1618 Subject MKT304 Lecture Trần Tuyết Minh Group Members Bùi Ngọc Anh HS163153 Vũ Thu Trang HS163081 Trương Thị Huyền My H.

Trần Cẩm Ly - HS163125

TABLE OF CONTENT

1 Introduction 3

1.1 Company 3

1.2 Chinsu chili sauce .4

1.3 Chinsu's customers 5

1.4 Objectives 5

2 Analysis of Promotional Program Situation .6

2.1 Internal analysis 6

2.11Promotional/ Marketing Department organization 8

2.12 Firm’s ability to implement promotional program 9

2.13 Agency evaluation and selection Review of previous program results 11

2.2 External analysis 11

2.21Consumer behavior analysis 11

2.22Market segmentation and target marketing Market positioning 14

3 Analysis of Communication Process .15

3.1 Analyze receiver’s response processes 15

3.2 Analyze source, message, channel factors 17

3.3 Establish communication goals and objectives 18

4 Develop Integrated Marketing Communications Program 18

4.1 Advertising 18

4.2 Direct marketing 25

4.3 Digital/Internet marketing 25

4.4 Sales promotion 27

4.5 Public relations/publicity 29

4.6 Personal selling 29

5 Budget Determination .29

5.1 Set tentative marketing communications budget 29

5.2 Allocate tentative budget 33

6 Evaluate promotional program results/effectiveness (How/ tools) .34

7 Conclusion .35

8 Reference 36

1 Introduction

1.1 Company

Masan Consumer named Masan Consumer Goods Joint Stock Company is the company that occupies the 7th position in the list of Top 50 most valuable brands in Vietnam in 2016 and ranks 2nd in the consumer goods industry Masan Consumer manufactures and distributes a wide range of food and beverage products Its products include soy sauce, fish sauce, chili sauce, instant noodles, instant coffee, instant cereals, and bottled beverages Masan - The origin of Chinsu brand to meet the needs of 90 million Vietnamese customers

In 1996, Masan started with the food industry, established Viet Tien Technology - Industry - Trade JSC, specializing in spices In 2000, Masan established Minh Viet Import-Export and Industry Joint Stock Company, specializing in trade and import and export In 2003, Viet Tien Company and Minh Viet Company merged to become MaSan Industry - Trade Joint Stock Company In 2008, Masan Industry and Trade Joint Stock Company changed its name to Masan Food Joint Stock Company (Masan Food) In 2011, Masan Food Joint Stock Company changed its name to Masan Consumer Goods Joint Stock Company (Masan Consumer)

In 2002, Chinsu Masan was born with the mission of approaching the high-end spice market in Vietnam with a diverse product portfolio: fish sauce, soy sauce, chili sauce, ketchup In addition to Chin-su, Masan Consumer is also proud of the brands Tam Thai Tu, Nam Ngu, Omachi, Tien Vua, Kokomi, Bfast, Vinacafe, Wake-up, Vinh Hao All Masan products are aimed at safety for the health

1.2 Chinsu chili sauce

Chinsu chili sauce is one of the most popular condiments today thanks

to its pungent taste, which increases the deliciousness of the dish Therefore, genuine Chinsu chili sauce products are widely sold in stores, supermarkets, and grocery stores across the country

Chinsu chili sauce is made from bright red chili peppers and fresh garlic cloves, then pureed and blended, bringing a pungent but not harsh taste, on the contrary, extremely fragrant The product has a beautiful, wavy red color, often used to dip into fried dishes, mix into dry dishes and stir in water to taste delicious Products meet food safety standards, do not add artificial spicy or prohibited chemical ingredients

After years of striving and development, Chinsu chili sauce gradually becomes close to every Vietnamese family, present widely from rural to urban areas, from small kitchens, popular shops or luxury restaurants

Masan is the company that owns the Chinsu chili sauce brand Currently, many people still mistakenly believe that this business is from abroad

1.3 Chinsu's customers

One of the most important and decisive factors to the marketing activities of the business is the customer Chinsu's customers come from two sources: Retail customers and distributors such as agents and supermarkets In order to have the perfect marketing strategy, Chinsu sought to understand and hit the right habits of customers

In Vietnam, Chin-Su is leading the chili sauce market with a 60% market share In addition, this

product has been exported to Japan, North America, Europe, Australia, China, Korea…

1.4 Objective

Masan's upcoming objective is to expand the scale of "Point of Life" Specifically, in 2022,

Masan will initially expand the scale of the WinMart+ chain by 700 - 1,000 points of sale, bringing the total number of mini supermarkets to 3,300 - 3,600 points before the end of 2022 Masan also plans to convert at least 50 % of WinMart+ selling points into mini-mall stores

Expansion into modern retail has increased Masan's market reach from just 1% of the consumer budget to nearly 25% Masan's next five-year plan is to build an efficient model to serve 30 to 50 million consumers and create a tremendous value chain This means that consumers will save 5-10%

on essential goods; producers and farmers will increase profits by 5-10%; Retail franchise partners will increase their profits by 5-10% over their current operations.”

The objective of Chinsu Chili Sauce is to prolong the product life cycle and successfully become

a popular product in the top of mind of Vietnamese and international consumers By 2030, Chin-su strives to become one of the 10 strongest chili sauce brands in the world, contributing to bringing Vietnam's processed agricultural products to the world

2 Analysis of Promotional Program Situation

2.1 Internal analysis

Strength: The Board of Directors has the capacity, vision, and

strategy to develop the company The staff have good knowledge of the domestic market and a lot of experience in the international market with foreign partners Masan Consumer focuses on investing in strong brand building, which has resulted in many brands quickly gaining market share in the condiments, convenience foods, and coffee industries Large distribution and agent system: Masan Consumer owns

a large distribution channel system The distribution network of the company is very strong, the sales points are spread throughout 64 provinces The company has unique marketing activities, multimedia communication, and promotional campaigns, so brand awareness is very high The company owns the most modern Research and Development Center (MRD - Masan Research & Development Center) in Vietnam The production process is "closed", and the management is strict, promoting the development

of consumer goods products and diversifying product categories The company's products have been chosen by many consumers Many products such as Chinsu fish sauce or Omachi instant noodles are suitable for the consumption needs of Vietnamese people

Weakness: Spending too much budget on promotional activities and product development costs

The management and treatment of employees and key management teams are not really good Most

raw materials are currently imported from abroad leading to high production costs The company has not been able to adapt to unforeseen changes in business activities in the industry or in economic conditions, which greatly affects the strategies of the company

Opportunity: Masan Company is a reputable joinj-stock company above, so it has the ability to

mobilize many capital sources in the financial market Now that Vietnam has joined the WTO,

Vietnamese enterprises benefit from preferential export policies, so the ability to develop with other countries in the world is more favorable than before Demand for export consumer goods is increasing, and the State's policies encourage exports to foreign markets Economic recovery and rising incomes lead to a great demand for packaged food products that still ensure nutrition and food safety The State strengthens the campaign "Vietnamese people give priority to using Vietnamese goods" in the new situation This campaign aims to increase the market share of consumption of goods and services produced by Vietnamese people, and actively support the development of the domestic market in a sustainable way

Threat: The Covid-19 epidemic has caused disruptions to the production process and incurring

costs Besides, the company's plan to launch new products was also delayed due to the impact of the pandemic The trend of using water-branded products is increasing, and the State's open-door policy creates conditions for foreign enterprises to strongly attack the domestic market As income increases, the standards of customers are getting higher and higher, which poses a great challenge for

manufacturers to diversify product categories but still ensure quality, good health, and competitive prices painting Price competition in both import and export markets Competitive pressure to attract labor resources when there are many potential competitors and big foreign brands in the market The exchange rate between the Vietnam doing and other foreign currencies is on an upward trend along with inflation leading to higher import prices of production materials

2.11 Marketing Department organization

Source: Masanconsumergroup.com

2.12 Firm’s ability to implement promotional program

The field of fast-moving consumer goods (FMCG) is considered a fertile land, but the level of competition is extremely fierce If businesses do not invest in continuous brand promotion, it also means giving up the playing field to competitors Therefore, it will not be too surprising if top enterprises such as Masan Consumer, Vinamilk, and Sabeco spend trillions of VND per year on advertising and image marketing

For Masan Consumer, if the amount spent on advertising in 2014 was only VND 1,282 billion, equivalent to 10% of total revenue, by 2015, advertising expenses had reached VND 1,500 billion, equivalent to 11% turnover In the first 6 months of 2016, this figure continued to increase by 26% YoY to VND 737 billion, equivalent to 13% of revenue

In 2017, Masan Consumer's selling expenses were VND3,013 billion; in which, advertising and promotion expenses, market research display expenses account for 2,195 billion VND, equivalent to more than 6 billion VND per day

After five years from being the top 3 largest advertising spenders in Vietnam and reaping revenue growth "on all fronts" of consumer goods, Masan Consumer has increased its inventory to 80 Today, although the distributor benefits from the big promotion policy and cheap purchase, of course, the revenue and cash flow of the company has decreased accordingly Realizing the disadvantage of the sales strategy is also a necessary marketing support for new products, especially as Masan Consumer is planning to increase the proportion of its premium products, the Company has returned to the strategy

of contributing to the success of the market The previous stage: Invest in marketing to build strong brands

With the characteristics of essential and fast-moving consumer goods, the company is forced to use marketing to increase brand love and remind customers of the company's products That is why Masan is one of the companies that has spent a lot of money on advertising and has become the Top of mind in its field

Therefore, the company is fully capable of implementing campaigns to increase revenue and increase brand awareness

2.13 Agency evaluation and selection Review of previous program results

Masan has always focused and invested seriously and effectively in advertising activities,

becoming the top 3 companies with the largest and most effective advertising in 2018 In advertising for Nước mắm Chinsu products, staff Masan's marketing and advertising has done well in

implementing the idea and exploiting the advantages of the product, thereby helping Chinsu fish sauce products to stand out from competitors' products at the same time, Knorr Phu Quoc With large media coverage on TV shows and social media advertisements, Masan's products have become familiar to generations of Vietnamese consumers

Currently, chin su chili sauce is at the top of mind But lately there hasn't been a campaign specifically for chinsu chili sauce

2.2 External analysis

2.21 Consumer behavior analysis

To have an accurate and specific view of Chinsu chili sauce brand awareness and identify the products competitors The team conducted the survey and got the following results:

Figure: Chili sauce chart is most popular among consumers by age

Chart: Chili sauce is most popular among consumers by age

The survey had 86 participants The most surveyed age group is 18 to 24 From the survey, it can

be seen that chinsu chili sauce is in first place in the group and closely followed by Cholimex This is a remarkable competitor when it is increasingly expanding and capturing more market share

Source: Google Trend

According to the survey on Interest over time in Vietnam in the last 12 months, the search level of chinsu chili sauce was on average higher, but there was a time when cholimex chili sauce surpassed chinsu Therefore, a battle is needed campaign specifically for chinsu chili sauce to increase brand love and remind

Industry growth rate:

Comparatively speaking to other condiments like fish sauce and soy sauce, the Vietnamese market for chili sauce is underdeveloped Chili sauce has traditionally been used as a dipping sauce, but it is increasingly being used in cooking Due to the market's wide availability, increased demand for convenience, and health concerns, consumers have also switched from using fresh chili to branded chili sauce The retail price of chili sauce in Vietnam is anticipated to reach about VND

558,000,000,000 by 2013

The following tendencies, which have evolved during the previous several years and are probably going to keep influencing chili sauce retail sales:

In the past, chili sauce was used as a dipping sauce for dried seafood in Southern Vietnam and as

a condiment for rice and noodles in the North Consumption of chili sauce has increased as a result of the introduction of chili sauce in fast service restaurants like KFC, Lotteria, and Pizza Hut

Changes in consumer behavior - Violent marketing and creative packaging have increased

customers' interest in chili sauce The constant increase in consumption has also been facilitated by the progressive substitution of chili sauce for fresh chili

Health and safety concerns - Vietnamese consumers started moving to branded chili sauces because of rising health concerns in food manufacturing and consumption As customers become increasingly brand conscious and concerned about food safety, this trend is anticipated to continue Product Innovation: In response to the rising demand for chili sauce, manufacturers have

produced varieties with extra benefits, such as Masan's Chin-su chili sauce, which is vitamin

A-fortified (Thêm của các tương ớt khác) A minor portion of the market is also being taken up by "sweet and sour" chili sauces and sauces that also contain tamarind, plum, and garlic It is anticipated that the introduction of new goods will maintain consumer interest in branded chili sauce

2.22 Market segmentation and target marketing Market positioning

Through the general assessment of the market, it is found that the market for chili sauce products

is growing rapidly, to have a successful campaign, it is necessary to determine the right STP

Market segmentation: Based on the content of the chinsu campaign, it brings convenience, a

happy meal, and a loving reminder So, segmentation will be based on demographic, behavior, age, lifestyle, psychological to determine the target audience

Target marketing: This campaign is aimed at young people (18-25 years old) who are currently

students, blue-collar, white-collar work away from home, the fast pace of life, always busy with work and study Having a fast-paced lifestyle, busy with work and not paying much attention to a nutritious meal Focusing mainly in big cities where everyone is busy with work (Hanoi, Saigon, )

Geographic Demographic Behavior

Fast-paced life Busy by working

Market positioning: Is a product reminiscent of happy meals full of nutrition Help users feel

good when using the product The campaign is also the purpose of increasing brand love customers about the product, the product always accompanies you with every meal

Currently, chinsu chili sauce products are in the top of mind of the industry, to increase brand love this campaign with the desire that chinsu chili sauce always accompanies you in every meal, is a part

of Vietnamese memories

3 Analysis of Communication Process

3.1 Analyze receiver’s response processes

The AIDA model was developed to represent the stages a salesperson must reach a customer in the personal selling process This model depicts the buyer successively passing through attention, interest, desire, and action (Advertising and promotion: an integrated marketing communications perspective, George E Belch & Michael A Belch, page 161)

- Attention:

+ In recent years, Chinsu chili sauce is leading the chili sauce market in Vietnam (according to the military newspaper, in 2021 Chinsu will account for 60% of the market share), but Chinsu chili sauce is increasingly competing with many brands such as: Cholimex, Vifon, So to draw attention to TA, first in this campaign will create a topic for everyone to discuss on Facebook, then book some influential people to post to state their views about this topic and tag the campaign hashtag

+ Using banners and booking print media

- Interest:

+ The campaign's target audience is men and women aged 18-24 According to a report

by the United Nations Children's Fund (Unicef) in 2017, more than a third of internet users in Vietnam are between the ages of 15-24 Therefore, this age has a very high level

of interaction with social networks So Chinsu will create events on platforms like Facebook, youtube and tiktok and create models to get people interested

+ Chinsu's target audience in this campaign is mainly aimed at young people (from 18 to

24 years old) Therefore, the appropriate source that Chinsu chose to convey the message to TA this time is based on the attraction of KOLs who are similar to TA and are liked by TA

- Message:

+ The campaign "Thousand of loves in the taste of nostalgia" (Vietnamese is “Ngàn yêu thương, muôn vị nhớ) In the campaign, the message conveyed to customers is "It is not every Tet that we feel homesick Because family is always inside of each of us" The campaign aims to evoke homesickness and convey the love of family to those who are studying and working away from home through the flavors of familiar family dishes eaten with Chinsu Chili Sauce

- Channel Factor:

+ Facebook: Chinsu is the most active on the Facebook platform with 306,857 thousand likes Therefore, Chinsu will post product information lines, and campaign messages from stories about family meals with Chinsu Chili Sauce

+ Youtube: No less than Facebook on this platform Chinsu has 158 thousand subscribers

On Youtube, Chinsu will post TVC and cooking videos with Chinsu Chili Sauce

3.3 Establish communication goals and objectives

- Goal:

● Increase brand love with customers

● Affirming the top position of mind for the customer segment from 18 to 24 years old

- Objectives:

● Increase 10% profit of Chinsu chili sauce products compared to before the campaign

● Increase 15% sales of Chinsu chili sauce products

4 Develop Integrated Marketing Communications Program

4.1 Advertising

4.11 Out-of-Home Advertising Media

- Billboards: Place large billboards hanging overhead in the outdoor

- Quantity: 4 Billboards

- Location:

● Ho Linh Dam, Giai Phong, Hanoi

● Lane 4 Lac Trung – Kim Nguu – Thanh Nhan, Hanoi

● Lane 4, Phan Dang Luu – No Trang Long, Ho Chi Minh City

● Binh Trieu Bridge, Binh Thanh, Ho Chi Minh

- Time: During the campaign

- Billboards are placed at locations with high traffic volume and are easy to see, it will

be noticed by passersby Advertising content placed on large billboards will attract all eyes and influence all people in traffic

- Street Furniture: Do low-level advertising such as putting up posters at bus stops

- Quantity: 12 bus stops

• Hanoi: 6 bus stops

• Ho Chi Minh 6 bus stops

- Time: During the campaign

- At most times of the day there will be people waiting for the bus and when bored, people will tend to look at everything around them So, when putting up posters at bus stops, it will help us reach more people

- Transit: Display banner of Chinsu chili sauce on the outside of the bus

- Quantity: 10 cars

• Hanoi: 1 bus of each route 74, 88, 107, 16 of Hanoibus

• Ho Chi Minh City: 1 bus of each route 05, 06, 08, 10, 53, 56 of Quyet Thang Bus Transport Cooperative

- Time: During the campaign

- We choose regular bus routes that go through the university and will go around the city So when we put the banner on the car, it becomes easier to reach our potential customers