(TIỂU LUẬN) SITUATION ANALYSIS REPORT LIFEBUOY HAND SANITIZER

Unilever believes that through the campaign to increase awareness and encourage people to work together to protect the environment Unilever Vietnam 2021.. Lifebuoy launches a product th

SITUATION ANALYSIS REPORT LIFEBUOY HAND SANITIZER

MKTG1205 – MARKETING PRINCIPLE

Semester C – 2021

Class: Group 10 – Thursday, 8 a.m to 11 a.m

Lecturer: Ms Sang Hua

TABLE OF CONTENT

I INTRODUCTION 2

1 Company description 2

2 Product description 2

II MARKET ENVIRONMENT 2

1 Micro environment 2

1.1 Marketing intermediaries 1.2 Customers 1.3 Competitors 1.4 Public 2 Macro environment 4

2.1 Demographics 2.2 Economic 2.3 Natural environment 2.4 Technology 2.5 Culture environment 2.6 Political III SWOT ANALYSIS 6

1 Strenghts 2 Weakness 3 Opportunites 4 Weakness IV CUSTOMER-DRIVEN MARKETING STRATEGY (STDP) 7

1 Segmentation 2 Targeting 3 Differentiation 4 Positioning V CONCLUSION 12

VI REFERENCE 12

VII APPENDICES 16

1.2 Mission Statment

For customers: To satisfy people's basic nutritional, hygienic, and personal care needs with products to

make them feel well, look good, and get something out of life for a suitable price (Young, J 2017)

For employees: Devoted to creating a safe and happy work environment, supporting people's physical,

mental, and emotional well-being, and assisting them in achieving their particular goals (Unilever 2021)

For society: "The Plastic Reborn " Unilever believes that through the campaign to increase awareness

and encourage people to work together to protect the environment (Unilever Vietnam 2021)

1 Product Description

In the face of the complicated development of the covid-19 pandemic, one of the ways to protect health

is to wash hands properly and often Lifebuoy launches a product that is gel hand sanitizer, which is aneffective solution for people to wash their hands at any time According to Kantar World Panel (2021),Lifebuoy is one of the top 10 most preferred brand owners in Vietnam's urban and rural areas in theHealth and Beauty sector

2.1 Market share

According to Passport (2021), in 2020, Unilever Vietnam has consistently had the largest retail valuemarket share of mass beauty and personal care market sales, with a market share of 29 percent(Appendix 1) Furthermore, Lifebuoy accounted for the highest share of total brand is 8 percent(Appendix 2)

2.2 Brand awareness

Lifebuoy invests a significant amount of money on marketing to create meaningful projects Especially inthe pandemic, Lifebuoy made a campaign called “Protecting Vietnam from covid-19, is in your hand”.The meaningful message from Lifebuoy has reached everyone from children to the elderly, raisingawareness of hand washing to protect health

II MARKET ENVIRONMENT

1 Micro environment

1.1 Marketing Intermediaries

a Reseller

2

Lifebuoy's hand sanitizers are extensively supplied through current distribution channels such as

supermarkets, convenience stores, and mini-marts Pursuant to Deloitte (2019), supermarket chains account for the biggest percentage of customers (66%) (Appendix 3) In addition, Lifebuoy is ranked 3rd and 5th in urban and rural areas, respectively, in the Kantar Brand Footprint ranking (2020)

b Marketing service agency

Lifebuoy collaborates with The A List (Vietnam's largest cooperative surfing network KOLS) to release the music video "Lifebuoy has not, Lifebuoy gone," which features two well-known singers Dong Nhi and Ong Cao Thang In this moment of social separation, everyone being at home means regularly accessing social networks, and Lifebuoy truly grasped the corn at the right time Quan AP (Vietnamese singer) garnered over 49,000 likes, 58,000 comments, and 11,300 shares during his broadcast (The Influencer) These figures demonstrate that Lifebuoy isgetting better at reaching out to clients Lifebuoy and other KOLS covered the song in various styles to promote the campaign Finally, the relationship with KOLs propelled the campaign to the 8th position in the BIS (Buzzmetrics social media rankings) with 300,000 interactive buzzes.According to Buzzmetrics (2021), these initiatives actually assisted Lifebuoy in increasing its viral score to 0.78 (Appendix 4), indicating that more and more users are becoming aware of Lifebuoy's products

1.2 Customers

Consumer market: Lifebuoy is a hygiene product aimed at everyone, with the objective "For a

healthier Vietnam" (Lifebuoy Vietnam) and a range of smells to provide customers with

additional options Lifebuoy primarily targets children with its "help children turn 5" campaign (Lifebuoy Vietnam), as these are the most susceptible to infection Lifebuoy hand sanitizers eliminate 99.9% of bacteria in seconds, protecting youngsters from germs When a difficult covid pandemic occurs, hand sanitizer is an incredibly important product that must be used on adaily basis Lifebuoy has added vitamin E with moisturizing properties to help prevent dry handswhen exposed to alcohol on a regular basis, following this trend (Lifebuoy Vietnam)

1.3 Competitors

a Direct competitors

In 2020, lifebuoy holds 3rd place in Kantar's most chosen FMCG brand ranking In addition, Lifebuoy is still facing competition from the domestic market In 2020, Lixco company launched the On1 hand sanitizer line with natural ingredients, thanks to the newly launched product, it helped the company's revenue increase by more than 5% compared to the plan (Lixco Annual Report 2020, page 6) On1 hand, sanitizer quickly reaches consumers thanks to its affordable price, a 500ml bottle is priced at 50,000 VND (Shopee Vietnam) Meanwhile, with the same capacity, Lifebuoy has a higher selling price of 64,000 VND for 1 bottle of hand sanitizer

(Shopee Vietnam) Not only at affordable prices, but On1 also combines natural ingredients to create 5 different scents (On1 Vietnam), helping consumers, especially housewives, have more Lots of fresh options

b Indirect competitors

In addition, lifebuoy must compete with a number of other FMCG items The Dettol brand, which

is regarded as the world's number one germicidal brand (Vietnam Plus) has introduced

antibacterial wet wipes It's tough to refute this product's convenience, as it allows users to clean both their hands and the surfaces they come into contact with The unique feature of this product is that it is fully alcohol-free while killing 99.9% of microorganisms (Dettol Vietnam)

1.4 Publics

a General public

In 2017, Kantar Worldpanel announced Lifebuoy was one of the five most popular Unilever brands in the health and beauty care category in both urban and rural Vietnam Since 2008, Unilever Vietnam Foundation has cooperated with the Ministry of Health to celebrate “Global Handwashing Day” with soap with the goal of reducing the risk of disease spread and raising awareness of the importance of hand washing Through the ceremony, the Lifebuoy brand committed to taking action to increase the rate of people washing their hands regularly Lifebuoyhas extended their importance in people's lives Lifebuoy successfully launched the Infection change system campaign in 2019 with the support of Google technology, which lets provinces

to report the epidemic state with pinpoint accuracy Through Warc, every month, 3.5 million mothers are forewarned about sickness as a result of this campaign This campaign won a Goldcup for ‘Innovation' and ‘Location-based services/targeting’ at Smarties Vietnam 2019

b Media public

There were 47.65 million Vietnamese users of social media in 2017 and this number is expected to grow

to approximately 34.28 million users by 2025 (Appendix 5) According to Statista ( 2021), in Vietnam, around 72 million people actively use social networking platforms, with social network users accounting for two-thirds of the entire population, allowing social networks to become a more popular primary

communication between businesses and customers The fact that Lifebuoy Vietnam's Fanpage (2021) has 275k followers and 273k likes is one of the factors that contributes to Lifebuoy's ability to connect consumers with meaningful marketing In March 2020, Lifebuoy announced a campaign to film a cover video of the hand washing dance in order to raise funds for the construction of "100 field handwashing stations - For a Healthy Vietnam." The hashtag of 100 lifebuoy handwashing stations was widely

circulated on social networking platforms such as Facebook and Tiktok, attracting 46,000 participants and 70,000 recordings (Advertising Vietnam) Not only were 113 hand washing stations erected as a result of this initiative, but it also raised awareness about the importance of proper hand hygiene in preventing disease

2 Marco environment

2.1 Demographics

Worldometer reported that Vietnam's population is currently about 97 million people, ranked 15th

worldwide, of which urban population accounts for 37% and agricultural population accounts for 63% Besides, in the period 2010-2020, the fertility rate tends to increase slightly from 1.9 to 2.1, which also means that the group of children tends to increase The increase of this target group will likely lead to anincrease in consumer demand, creating a great opportunity for the FMCG sector Because this is an agethat is easily vulnerable to external environmental influences, specifically, there are from 50,000 to 100,000 cases of TCM each year because personal hygiene measures are not really effective fruit Through demographic numbers, this is a great potential opportunity for Lifebuoy to develop its brand andpromote its mission to the community

2.2 Economic

Since the pandemic Covid 19 occurred, it has had a serious impact on the Vietnamese economy,

specifically, GDP has decreased to 2.5% in 2020 (Passport 2021), the unemployment rate has increasedslightly to 2.27%in 2020 (Appendix 6) Despite the COVID-19 outbreak, in 2020, the size of the

economy at current prices preliminarily reached 6,293.1 trillion VND; GDP per capita attained 64.5 million VND, equivalent to 2,779 USD, an increase of 65 USD compared to 2019 quite low but showing

an optimistic background for the Vietnamese economy (Statistical summary book of Vietnam 2020, p1 09)) In particular, the increased proportion of people consuming health products accounts for the

consumption of hygiene-related products which has increased since the outbreak of covid 19 This has not stopped promoting antibacterial products to increase suddenly According to data from Statista

(2020) have sanitizer increased by 1065% and hand alone accounts for 96% so Lifebuoy should focus 4

on diversified handwashing products to meet market demand (Appendix 7).This shows that users have spent more on hygiene products, which helps Lifebuoy to expand its product distribution scale and open

up abundant profits when the epidemic is still complicated and consumption is still high

1.3 Natural Environment

The Ministry of Industry and Trade of Vietnam has announced the amount of plastic waste in Vietnam is about 1.8 million tons of plastic waste each year According to Statistics, only 10% of that plastic waste isrecycled after use Most of the waste will be buried or discharged directly into the environment This has had a direct negative impact on the land and water environment Therefore, Lifebuoy in particular, or Unilever in general has committed to reducing its plastic waste in the following years For example, Unilever's plastic packaging could be 100% recycled or naturally biodegradable or set a goal to collect and process 600,000 tons of plastic waste per year by 2025

2.5 Cultural Environment

The report of the World Bank shows that the percentage of Vietnamese people who have good hygiene habits is still very low, only 13% and not often only after "key-moments" The report also indicates that improper hand washing also prevents bacteria from remaining and is the main cause of infection Also, the difficult situation in the face of a shortage of clean water is up to 30% in schools where mainly soap products are used to wash away bacteria.To alleviate user anxiety, Lifebuoy has introduced a new generation of hand sanitizer with a 10-second use time When children's awareness of body hygiene is still low, this product is appropriate for them The use of this new product aids in the removal of bacteria, making it easier for mountainous areas or sanitary works that have not been repaired and have many limitations in accessing water sources Besides capturing the psychology of consumers who like the mildfragrance of products, lifebuoy has launched many product lines with multi-scents This affects the psychology of consumers when the target audience is still children and women are the main ones.Culture has a great impact on the consumption process of consumers and in Vietnam too

- Consumption habits and behavior:

+ In addition to buying at the market or at convenient selling points, Vietnamese consumers also changetheir buying behavior at supermarkets, convenience stores, etc In particular, they will take advantage of shopping more often when available promotions

Consumers care more about the safety of the product than the price of the product In times of price storms, consumers are loyal to brands as well as the type and size of packaging of everyday consumer goods that they often use

+ Vietnamese people are who easily accept new and innovative views, have a welcoming attitude to new

things as long as these new things are suitable for their way of life and thinking

+ They like to use new products, always new, the better with improved quality, even when they don't

know a certain product, the problem of promoting the company's products is not too much many

difficulties, because Vietnamese people are very curious, the company when conducting promotion, advertising just needs to stimulate their curiosity, the product will also be successful

+ In addition, the company also realizes that Vietnamese people's preferences are very diverse, very

suitable for the company's rich product categories, Vietnamese people do not like a particular color, like China likes Red as the color of happiness, Vietnamese people are generally diverse and do not exclude

something related to aesthetics, except in cases related to their fine customs and traditions On the otherhand, the company also intends to learn and understand more about these issues when it hires

Vietnamese people to work and joint ventures with Vietnamese partners

- On cultural issues:

+ Religion: Vietnam is a religiously free country, so the coordination and promotion of products are not

as strict as some other Asian countries

+ The role of the company's target customers in society:

Unilever's products are mostly consumer products for family activities such as shampoo, shower gel,toothpaste, soap, etc This helps us to realize that the company's customers are majority women.Understanding the extremely important role of women in the domestic market in Vietnamese families,therefore, in its product promotion programs, the company focuses on emphasizing that its productsThe company will always accompany Vietnamese women in taking care of and protecting theirfamily's health Convenience and good quality products are always the top criteria of women inshopping choices

In addition, the company also focuses its business on young people, who are more independent,liberal and confident than before They will be the ones to make decisions for most issues in life,including choosing to buy consumer products

2.6 Political/Legal Environment

Since Vietnam joined the WTO, the Government of Vietnam has always encouraged foreign businesses

to enter Vietnam, especially in areas where Vietnam has advantages such as labor, natural resources, etc to help Vietnam in the process of industrialization

Because there is only one Party, Vietnam is a politically stable country, people have a positive

perception and opinion about foreign direct investment and value these companies, so building and forming a long-term business strategy in Vietnam is completely grounded In addition, the company will have a better understanding of the investment law as well as the business environment in Vietnam in general when the company hires local people to work for them, so when forming a business strategy, themain issue is: There are no problems with the company's rule and law, no big obstacles The only thing that the company has to deal with and be careful about in the law when formulating its strategy is the issue of labor and the regime for employees, because the Vietnamese government is very concerned about this issue and the public The company has learned lessons from other foreign companies on these issues in Vietnam

Legal system and legal documents: Vietnam's legal system is changing in line with fluctuations and integrating more deeply into the world Many laws have been introduced in accordance with reality With the right to freedom of business, the Vietnamese law has the 2005 Enterprise Law and the 2005

Investment Law This system of laws is being supplemented in accordance with reality

Regulations on product production, brand name, ingredients, product's uses, production date and expiry date, etc Especially, before the product is circulated on the market, all manufacturers are required to comply with regulations must be tested by the authorities In particular, products directly related to human health need to be inspected by the Ministry of Health

III SWOT ANALYSIS

 Cooperate with the Ministry of Health and large corporations such as Google to disseminate and market products using data-driven campaigns.

 By collaborating with well-known shows and performers, a good marketing agency may attract a big number of people

 Purchases are influenced by social media propaganda and statuses that attract a big number of

people

2 Weakness

 Official storefront in Vietnam, depending on retailers too heavily will result in a poor customer

experience and a shift in consumer preferences

 With the average income, product costs are proportional to the number of individuals, hence

Lifebuoy cannot create products that are extremely profitable

 There will be some difficulties in product development due to the fact that technology has not yet matured

 The head office and customer service office have yet to be established, putting the company at a disadvantage in terms of fast client service

 With the presence of Dettol can reduce the profit of lifebouy with more compact and efficient paper products

 Due to the language barrier, customers will find it difficult to use Lifebuoy

IV CUSTOMER-DRIVEN MARKETING STRATEGY (STDP)

Age: 25-45 Personality Occasion:

 Possible on an e-commerce platform that allows customers to purchase items online during a

pandemic

 With over 1065 percent hand sanitizer and 96 percent soap, the hygiene market is increasing

strongly during the covid outbreak, giving the company an advantage (Statista 2020)

 Vietnam's population is growing at a rate of 2.1 percent per year, resulting in a plentiful supply.

 Because Vietnam is a relatively young market, investing there offers to open up a lucrative

 Hand sanitizer with only 10 seconds of sterilization helps create a breakthrough for places with

poor hygiene problems

 Using friendly materials and ensuring environmental regulations will help lifebuoy gain trust and long life

Millennial

mothers

modern Live mostly

throughout Vietnam's cities and suburbs, especially areas with cases of covid

years old

Gender: female Family size: 3-4

people

Education: High

school or University

Marriage status: married,

traits:

Open-mindCare their familyAware of

potential illnesses that hurt their child's wellbeing

Lifestyle:

Healthy, HouseworkCare quality more than priceTrying to strike

a balance between job andfamily life is difficult

Wash hands dailyAfter touching things

in public Before eating and cooking

support financial

Occupation:

Students

Personality traits:

NaughtyDutifulGood-heartedObey

Lifestyle:

Outdoor activities

No patience

Do not care much about health

Occasion:

Wash hand dailyBefore eatingAftertouch something

in publicAfter using bathroom and playing

Loyalty status: low

2 Tageting

The differentiated marketing (segmentation) of Lifebuoy sanitizer is focused not only on providing

products that protect people from bacteria and viruses, but also on beautiful packaging design Lifebuoy

is well aware of the consumer market and the current state of the world, so it has effectively adjusted thecompany's strategy to serve everyone

The first segment of this product is to serve doctors and nurses on the front lines against the epidemic Due to frequent exposure to F0, they will prioritize products with high safety and convenience In

September 2020, Lifebouy donated more than 68,000 bottles of hand soap and more than 48,000

bottles of hand sanitizer (total value up to VND 11 billion) to hospitals in Vietnam to help the country fightthe epidemic However, this is also considered a "weapon" of Lifebouy because it has created a trust for the Vietnamese people, bringing the brand to every home, helping to increase sales

According to WARC (2019), the second segment is aimed at modern housewives, and they are also the main target group They prioritize products that are of high quality and bring

convenience to them Therefore, with the trust of doctors in the first segment, these women will trust that Lifebuoy's products will protect their families In addition, they are also interested in the design of Lifebuoy's hand sanitizer gel products to attract children, teach them to protect 8

themselves from viruses In general, this segment is considered as potential customers with high demand for the brand's products.

or work to 1.1l household versions, with the price from 40.000vnd to 259.000vnd (Lifebuoy Vietnam)

3.2 Image differentiation

Compare with others in the hand sanitizer market, Lifebuoy usually attachs special importance to the

image and promation of their product Thus, when it comes tospecial Vietnamese events, this business has created severaladvertisements and campaigns At the beginning of 2021, because of its profound implications, the significant campaignnamed “10 vạn đôi tay sạch, chắp nên muôn nguyện cầu” made a lot of imprints in the customer-heart They appeal to customer’s self-consciousness, urging them to wash their hands regularly as the epidemic worsens With full fluctuation after 2020, their image will cover many perspectives,

otherwise, it will miss certain key goals

In addition, their image is frequently altered throughout time with the seasonally uinque tag bags Cute accessories captivate not only youngsters but also young people and adults, who are drawn to a range of tag bags For instance, Lifebuoy Vietnam released the superhero version, DC collection for youngsters, Tet edition for

Vietnamese Traditional Tet, etc The safety4all design for PRIDE month, in particular, includes many profound understandings It is not only about the creative marketing about the right love of all people andgenders, but also about the distance between many people during the lockdown

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