ADVERTISING & COMMUNICATION CAMPAIGN 2.3.1 Advertising, Communication, Promotion and Merchandising 2.3.2 Help® campaign 3.4.5 TV talk and Demo 3.4.6 Technical seminar and farmer meeti
Trang 1TRƯỜNG ĐẠI HỌC MỞ TP HỒ CHÍ MINH UNIVERSITY LIBRE DE BRUSSELES
HO CHI MINH CITY OPEN UNIVERSITY SOLVAY BRUSSELL SCHOOL ECONOMIC & MANAGEMENT
Tutor’s Name: SERGE BYWALSKI
HOCHIMINH CITY
2013
Trang 2TRƯỜNG ĐẠI HỌC MỞ TP HỒ CHÍ MINH UNIVERSITY LIBRE DE BRUXELLES HOCHIMINH CITY OPENUNIVERSITY SOLVAY BRUSSELL SCHOOL
ECONOMICS & MANAGEMENT MMA6
Student’s name: + Nguyen Xuan Hung
+ Bach Ngoc Tung
COMMIMENT TO OPEN UNIVERSITY AND SOLVAY BRUSSELL
SCHOOL
Here by, I commit to HCM Open University & Solvay Brussel School that this final project in conducted by us under agrrement of ADC company Some data, table and figure in this work which only are provided for purpose of supporting this project will be kept confidential as ADC requirement
Student‘s signature
Nguyen Xuan Hung Bach Ngoc Tung
Trang 3ACKNOWLEDGEMENT
I would like to express my gratitude to all who gave me the possibolity to complete the final project Firstly, I want to thank the ADC company who have support me permission to get the figure, table of conduct survey and use department data to complete the final project Basing all information and help, we could have conducted the final project and more over we understand deeply the performance of marketing campaign of ADC company and have analisys the proposal later
I would thank to my tutor, Mr Serge Bywalski from Solvay Brussel School who have guidance and encouragement of help to us in the initial time of doing final project
We also would thank to my colleagues in MMA 6 during all courses to have shares some information, some studies in team work and in marketing activities outside From that team work activities, we could understand more about practical activities
in all comapnies of marketing and advertising as well
Trang 5
1.4 Competitor product & Help® 400 SC
2 ADVERTISING & COMMUNICATION CAMPAIGN
2.3.1 Advertising, Communication, Promotion and Merchandising 2.3.2 Help® campaign
3.4.5 TV talk and Demo
3.4.6 Technical seminar and farmer meeting
4 PROPOSALS
4.1 PRODUCT
4.1.1 Market research
Trang 64.4.2 Merchandising
4.4.3 Public relation
4.4.3.1 TV talk 4.4.3.2 Newspaper 4.4.4 Direct mailing
4.4.5 Farmer meeting & Demo 4.4.6 POSM
4.4.7 Budget
Trang 71 INTRODUCTION
1.1 MARKET OVERVIEW
Vietnam has 7.2 mio ha rice, 70% is belong to Mekong Delta which is key planted area for export; the North and the Central is for domestic consumption within the territory only
There are 2 main rice crops per year in Mekong Delta, winter – spring season (Nov – Mar) and summer – autumn season (Apr – Aug)
Blast usually occurs in winter – spring season, other diseases are almost happen in summer – autumn season
Fungicide is a key drive of growth in agrochemical industry on rice and other crops
as well, rice accounted for almost 40 – 50 % consumption of total fungicide value
Fungicide accounted for 50 % crop protection costs (US$ 100/ha) on rice; farmers have to apply fungicide 4 - 6 times per crop to control blast, yellow leaf, sheath blight and dirty panicle of which 2 times for blast They have to tank mix 2 fungicides to control ALL rice diseases which almost happen at the same time Broad spectrum products may control most of diseases except blast which is required a specialist blasticide In farmers’ perception, broad spectrum fungicides are not so effective compared to a specialist one for whatever diseases
Source: Pivotal Jan 2008
(selective)
Herbicide selective)
Trang 8Market Value and Market Share in 2007 – 2012
Others 55,375 59.70% 89714 64.71% 109,232 67.24% 117,818 63.91% 128,150 63.46% 134,960 63.16%
Source: General Custom Office & In desk research
For all players, farmer meeting, demonstration, TV talk, TV commercial, radio
commercial, merchandising are popular communication activities Adverting on TV
is the most effective and expensive tool, it’s a “heavy weapon” of market leader
Most useful sources to get info (Source: AGRI insight - Kynatec Oct 2007)
1.2 ALLIED DEVELOPMENT CORPORATION (ADC)
ADC was set up in 9.9.1999 In 2007, they employed more than 300 people, ADC
set up a sales network of 80 whole sellers and 1,200 retailers throughout the
Most useful Useful
All values in %
10 10
12 12 14 16 16
16 28 34 34
16 7 19
7 5 0 1 0
0 12
Demo trials Posters & leaflets Farmer radio programs
Radio ads Papers/magazines Agriculture books
Trang 9country Until now, they have expanded their business into fertilizers, seeds,
pharmaceutical, aqua-feed Their vision is Bringing Fourth Goodness to their partners and farmers, which reflect through the date ADC was established 9.9.99
1.3 COMPETITOR COMPANIES
Syngenta (Swiss company) is a market leader They dominated rice fungicide
market (36.2 % market share in 2007)
There was about 100 crop protection suppliers in Vietnam, Chinese suppliers took 37.8% market share of rice fungicide, they supplied to many local distributors; most
of Chinese suppliers did not have an office in Vietnam
There was a big gap between Syngenta and the rest of players ADC ranked 2nd in rice fungicide market although its share was only 4% in 2007
1.4 COMPETITOR PRODUCTS & HELP® 400 SC
Tilt® Super and Filia™ were a key drive for growth of Syngenta not only for fungicide but the whole product portfolio as well
Tilt® Super is a rice fungicide for controlling dirty panicle, sheath blight, yellow leaf, it make more filled grains which bring bumper harvest as their positioning Filia™ is a specialist blasticide, it effectively control rice blast and make strong plants
Syngenta recommended tank mix Tilt® Super and Filia™ to control ALL diseases
Help® is a latest generation of broad spectrum fungicide, it effectively control rice blast and other diseases By launching Help®, ADC expected to open a new segment for a broad spectrum fungicide, effectively control ALL diseases including blast They positioned it as a latest fungicide generation which effectively control rice blast, dirty panicle, yellow leaf and sheath blight, increase yield and quality thanks to greening effects
Help® would be enable farmers reduce 50% fungicide application and cut half of application costs compared to Tilt® Super mix with Filia™; besides, Help® brought greening effects to rice plants, more foliage green is more yield and better grains quality in both farmers’ perception and scientists’ study
By launching Help®, ADC wanted to build up Help® as a market standard for rice fungicide, open a new segment for a real/ effective broad spectrum fungicide They positioned it as a latest generation of rice fungicide which effectively control rice blast, dirty panicle, yellow leaf and sheath blight with results are more than expectation of farmers
Trang 10Products’ value and market share in rice fungicide segment
Super 21,553 23.24% 22,068 15.78% 25,535 15.72% 25,891 14.05% 28,073 13.90% 28,073 12.98%
Source: General Custom Office & In desk research
2 ADVERTISING & COMMUNICATION CAMPAIGN
2.1 IN 2007
In summer 2007, ADC organized launching ceremony in Can Tho province which
is considered as a capital of Mekong Delta 20 whole sellers, 30 farmers (belong to
ADC Farmer Club) and all of their field force including sales and marketing were
invited They went through product presentation including technical, trial results,
benefits of using Help®, the ceremony was end up with gala dinner Sales team
then follow up with sales scheme to whole sellers in the other days
2.1.1 Advertising, Communication & Promotion
ADC selected television in key provinces (Long An, Dong Thap, Vinh Long, Can
Tho, An Giang, Kien Giang) throughout Mekong Delta to ensure 80% coverage to
the area and some province in the east of Vietnam during TV commercial airing
Technical and Marketing Department would follow up with farmer meetings, TV
talks in which their people would joined with an officer of Sub Plant Protection
Department and a professor from agriculture universities to talk about rice, pests,
Help® 400 SC and other products of ADC (if any related questions), farmers sat in
front of a television just picked up a phone and asked a question, they would reply
at one as a direct dialog; they collaborated with some television in key provinces for
a TV talk which could be covered several provinces at a same time
Their communication message in TV commercial only focused on a latest
generation of broad spectrum fungicide with animation of diseases spot without
voice over on name of diseases They ended up the TVC with a tagline and voice
over as “Help® 400 SC – More than expectation!”
ADC collaborated with Sub Plant Protection Department, Plant Protection Station,
farmers for demonstrations with a demo board stood in a middle of rice field with
Help® brand and tagline
They also organized spray events for several rice fields in a same day and came
back 1 week later to check results and had spot meetings at the rice field
Trang 112.1.2 Merchandising
They decorated point of purchase (POPs) with product posters, banners, stickers,
leaflets and product mock-up
2.2 In 2008
2.2.1 Advertising, Communication, Promotion and Merchandising
They reduced advertising expenditure of Help® and other products
They maintained product demo, TV talks and merchandising as in 2007
2.2.2 Help® campaign
ADC focused resources on Help® campaigns They organized 5 campaigns in Mekong Delta, the East (Dong Nai, Lam Dong, Binh Duong, Binh Phuoc province), Highland (Daklak, Gia Lai province) It cost them almost US$ 750,000 for these campaigns through an agency
120 – 200 promotion girls (PGs) were admitted for a campaign (US$ 25/day/PG All PGs were recruited in Hochiminh City, they hired 12 – 20 vans (15 seats) to carry PGs and promotion gifts (condensed milk, electric fan, samples, refined sugar, sodium glutamate and ect…); a big quantity of promotion gifts were carried to POPs some days before the campaign
A campaign happened in 7 – 10 days and run through 5 – 7 provinces They stopped
in 2 – 3 provinces for the event
A huge logistics were required for a campaign such as hotels reservation (staff, PGs, guests), promotion gifts purchase & delivery, field force gathering and transportation almost from the whole country for a campaign, invitation to whole sellers, retailers & their farmers to join the campaign, permission of local authorities including national security as ADC wanted to have load speaker on the way to event area, area selection for the event, invitation to press, television, speakers from universities & Sub Plant Protection Department, training to staff and PGs, invite well-known singers, POSM for POPs decoration and ect…
2.2.2.1 Event
ADC selected provincial stadium for the event Whole sellers requested their retailers set up POPs in the stadium, there were 5 – 10 retailers joined the event Farmers free to come into the stadium, they also brought 100 – 200 farmers from
Trang 12neighbored provinces to the event by bus There were gifts for farmers if they bought Help® (and other products depending on growth stage of rice crop) for a certain amount During the event, farmers could join some games with prize as T shirt, product sample…; they could listen to music and song, exchanged & took photo with singers
ADC arranged Help® technical seminar during the event, they offered lunch box for ones who joined the seminar
2.2.2.2 Help® Festival
ADC would nominate a province among the ones they run through for a big event called Help® Festival, the nominated province should be the one which ADC expected to push up Help® sales (with criteria such as market size, market potential, competitors’ activities) Farmers bought Help® during the Festival could join lottery at the end of a day (prize divided into 1st, 2nd, 3rd and consolidation including Honda motorcycle, television, DVD player, electric cooker ….) ADC opened a live music show at the end of the Festival, farmers may join as a singer
Technical seminars took place inside Festival, ADC may bring farmers to nearby rice fields to observe efficacy of the fungicide, they also “brought” rice field to the Festival by pots with rice planted in
Farmer representative of each province would join a game show in which knowledge of the products, rice, farmers’ practice and ect… were raise to attendants
Throughout the campaign, PGs took a role of product consultant and supported retailers to sell products Sales reps would be with PGs for tough questions and situations
2.2.2.3 Merchandising contest
Retailers took a certain amount of Help® & other products could join Merchandising contest, ADC would sent 3 – 4 PGs to the retailers PGs supported retailers to sell products, delivered gifts for big purchase (gifts were defined on purchased package) and the most important thing is POP decoration for the contest There are 3 levels awarded to 3 best decorated POPs, a level had 2 prizes with a same value offered to owner of POP and a group of PGs who decorated it; 1st award
is Honda Wave which valued was US$ 700
PGs had to use a limited POSM which counted by ADC There was no limitation to use carton box and bottle of Help® (100ml bottle) for decoration the more the better
Trang 13as retailers must order more from whole sellers Assessment based on good looking merchandising, creativity, less competitors’ POSM in the POP, sales of Help® for 3 months (recorded and checked by sales rep and whole seller) and decoration must maintain for 3 months
ADC took photo of the merchandising initially and after 3 months, then they appraise for awards
… They finished marketing budget by Quarter 3 in 2008, no TV commercials airing for all products, no farmer meetings for all product and almost no marketing and promotion activities
2.3 In 2009
2.3.1 Advertising, Communication, Promotion and Merchandising
ADC almost cut all marketing activities including TV advertisement
2.3.2 Help® campaign
ADC reached 7 campaigns in 2009 with larger size, longer time, more gifts…
… They almost finished marketing budget by 2 nd half of 2009, sales department had
to release some of their budget for advertisement of key products
In agrochemical industry, a local company, even a leading company as ADC is hardly to conduct pre-launch and post launch study, information from field force is one of a major source for their decision making; however, it’s one sided view rather than customers’ need
A qualitative research (before launch) will help ADC test product concept, if farmers think it’s worthwhile for a new rice fungicide, then farmers would give ideal price and expectation Thanks to pre-launch study, ADC could re-check costs
Trang 14per ha to control all diseases including fungicide costs, number of application, number of tank mix, labor costs and ect…
A quantitative research (before launch) would enable ADC in large scale know how many percent farmers understand product concept, which ones they are still struggling on the concept, do they believe the concept, are they willing to test it, what are challenges to farmers (weather change, labor shortage, salty water invasion and ect…)
Through a market research, ADC may have campaigns to ask farmers reduce number of application as most of them apply too much fungicide which come from their needs to see a thoroughly clean field (sometime diseases don’t reach a threshold of application but they still apply chemicals) and promotion activities of agrochemical companies (apply fungicide cause greening effect, healthy rice, they may use fungicide because of emotional benefits rather than disease control) ADC would recommend farmers apply Help® on important stages which mostly effect to yield
Post launch study will enable a company to appraise a launch campaign if it’s successful, feedback from the market about their communication and what should
be modified or improved and ect… The study can be conducted after 1 year launch (2 rice crops)
3.1.2 Positioning
Based on internal and external studies, ADC would have a good positioning for Help® whether it control all diseases or just claim it as a specialist of blast and dirty panicle control; in scientific studies and farmers’ practice, a fungicide control dirty panicle well can control effectively other diseases except blast
A good positioning with functional and emotional benefits would sharpen communication message It’s quite general for a tagline of Help® “More than expectation!”, ADC need to specify benefits of Help® in a sentence, it’s should be clear enough and understandable