Integrated marketing communication strategy for teka vietnam

Therefore, Teka wanted to invest more in “Cook with love” communication strategy to strengthen Teka brand associations.. Hence, we secondly suggest modifying the brand identity and conne

INTEGRATED MARKETING COMMUNICATION STRATEGY

FOR TEKA VIETNAM

HO CHI MINH CITY (2014)

We, Huynh Thuy Bao Tram and Pham Thi Thanh Thuy guarantee that we have done this project by ourselves based on the permitted data from Teka Theory resource are collected from Solvay Brussels School and other trusted sources

This paper is designed only for the academic purpose of the completion of our Master in Marketing and Advertising It is not expected for any other uses

-

First of all, we would like to express our deepest gratitude to tutor Huynh Minh Nhut who have consistently supported and encouraged us in this academic

project

We would like to say thank you sincerely to our class monitor – Do Minh Trung and beloved MMA7 team who, together with us, experienced throughout all difficulties of our student lives

We would like to express our sincere appreciation to the Board of Management at Teka Vietnam – General Director Pham Tran Phuong (Mr.) and Product Marketing Manager Hoang Vu Thuy Giang (Ms.) – who whole-heartedly assisted us during our project study as well as during the time we accomplished this dissertation

Finally, we would like to express our heartfelt gratitude to all Professors at Solvay Brussels School who not only provided us with valuable knowledge but also

dedicatedly guided us in our academic life over years

TABLE OF CONTENT

EXECUTIVE SUMMARY 3

PART I: MARKET SITUATION 5

I.1 Market overview 6

I.1.1 Population 6

I.1.2 Income and Geography 7

I.1.3 Consumer‘s trends in cooking 8

I.1.4 Competition 9

PART II: TEKA BUSINESS ANALYSIS 11

II.1 Sales Performance 11

II.2 Distribution channels 12

II.3 After sales service 13

II.4 Marketing objectives and activities 13

II.4.1 Marketing objectives 13

II.4.2 Brand identity analysis and theory 13

II.4.3 Current communication strategy with theory 17

a.Strategy analysis 17

b Activities and channel 19

b.1Integrated communication mix to bring the “Cook with love” message to life 19 b.2 Evaluation the current communication mix 20

(1) Evaluate the effectiveness of Teka’s offline activities 20

(2) Evaluate the effectiveness of Teka’s Advertising and event sponsor 21

(3)Evaluate the effectiveness of Teka’s PR activities 21

(4) Evaluate the effectiveness of Teka’s customer relationship management 22

(5) Evaluate the effectiveness of Teka’s merchandising program and consumer promotion 23

(6) Evaluate the effectiveness of Teka’s “Cook with love” fanpage 23

Conclusion: 23

PART III: COMMUNICATION STRATEGIC SOLUTIONS 26

III.1 Brand identity 26

III.2 Communication strategy 27

III.2.1 “Cook with love” rebuild 27

III.2.2 Integrated communication campaign 31

III.2.2.1 Big idea 31

III.2.2.2 Mood and tone for communication campaign 32

III.2.2.3 Strategic direction and timelines 32

a.Trigger phase (1st March – 7th March) 32

a.1 Objective 32

a.2 Way-in 32

a.3 Communication Channels 32

b.Awareness raising phase (8th March – 31st March) 33

b.1.Objective 33

b.2 Way-in 34

b.3 Key hook 34

b.4 Communication Channels 34

b.5 KPI for each channel in Awareness raising phase 35

b.6 Backup plan: 36

c.Engagement phase (1st April – 30th September) 36

c.1 Objective 36

c.2 Way-in 36

c.3 Communication channel 36

c.4 KPI for each channel in Engagement phase 38

c.5 Backup plan: 39

d.Commitment Phase (from 1st October 2014) 39

d.1 Objective 39

d.2 Way-in 39

d.3 Communication channel 39

PART IV : CONCLUSIONS 44

Appendix 1.1 46

Appendix 1.2 47

Appendix 1.3 48

Appendix1.4……… 49

EXECUTIVE SUMMARY

In 2009, the presence of Teka brand in Vietnamese retail industry partly helped promote the value of Vietnamese architecture in the period that local architecture still not coming out after 2 years of WTO accession

From 2011, Vietnamese real estate market was amazing slump and many property developers delayed launching their high-end projects The demand of luxury kitchen appliance from that channel was not stable The changing in sale structure from 2009 which focused more in retail helped Teka kept the growth rate over 25% annually while shifting project sales from 50% in 2009 to 30% in 2012 Today, their largest part of revenue comes from retail sale.

However, since Teka previously concentrated their communication on project sales rather than end – user during the past years, they got very low brand association Realize that, Teka cooperated with Edge Marketing to conduct a Brand Health Checking via Social Listening in August, 2012 Their assumption was confirmed by the result of the report Consumers chose Teka just because it was the most expensive brand which could bring back status recognition Therefore, Teka wanted to invest more in “Cook with love” communication strategy to strengthen Teka brand associations After 2 years of running “Cook with love” platforms and supporting activities, they gained not much significant effect as expected and would like to make a renovation

From the study, we found out that Teka still could not differentiate themselves from other kitchen premium brands in the market because the brand had no unique points in comparison with top brands like Fagor or Bosch, except the price gap The high price strategy confirms Teka position in top of mind luxury brands

up to now but without unique points, Teka become less competitive in the long run when competitors become stronger or consumer is more sensitive with price

In order to maximize the strength of new Teka’s retail distribution system and build up emotional connection with consumers’ mind, we focus in re-strengthen the integrated communication strategy which base on “cook with love” platform Our objectives are to tighten customer relationship and to motivate sales with expectation to grow the net sales at level 30% annually in the period 2013 - 2017 Firstly, we re-evaluated their brand identities and communication mix From our analysis, the current Teka brand identities were somehow similar with their competitors Furthermore, their activities within the communication mix were not

linked well because the “Cook with love” message at each channel was not consistent and bold enough

Hence, we secondly suggest modifying the brand identity and connecting it with the “Cook with love” message, so that Teka can differentiate themselves from other competitors and build up successfully the brand association

Thirdly, we propose an insightful and consistent communication campaign to launch the “Cook with love” platform, aiming to make Teka a trusted companion with Vietnamese modern families

re-PART I: MARKET SITUATION

Teka is a European industrial group was founded in Germany in 1924 It is a European reference in sinks, hoods, hobs, ovens and containers and also the beer kegs production world leader Currently the company has 27 factories spreading across three continents Due to a history of acquisitions, Teka today has a wide range of professional products and solutions that enjoy strong positions around the world and can be found in 125 countries

In Vietnam, Teka brand is famous for premium products with elegant European designs and high quality offering safety, durability and convenience for users Hundred percent of its products were imported from Europe including Spain, Germany, and Portugal Thanks to the good performance of the exclusive distributor since 2000 until Teka officially opened their owned office in Ho Chi Minh City in 2009

From only one exclusive distributor with 3 shops in 2009, Teka has built their own distribution system up to over 100 shops within 5 channels in early 2013 Teka now is less dependent on unstable project sales and having more chance to communicate to consumer through other channels such as exclusive shops, modern trade, traditional channel or kitchen specialist That supported for the average growth rate about 20%/year from 2010-2012

From 2011, they started first step to build the “cook with love” platform which helped to “pull” consumer to their brand emotionally through cooking class and some PR activities However, the “Cook with love” platform has not developed strongly up to now Hereafter are some key business figures that need to review before we analyze deeply the communication strategy

I 1 Market overview

I.1.1 Population

According to Euromonitor International Company – Vietnam branch, national statistics 2011 report, Vietnam population structure is as following – There is 50% of urban population in range of 25 to 50 years old, in which, shares of male and female is 50: 50 – There are significant growths in all household sizes, especially, the growth of household from 2 to 4 members is over 20% annually 104,733,619 Bà R ị a - V ũ ng Tàu 10,536,470 997 249.2 10,569 TP.H ồ Chí Minh 21,843,152 7,165 1,791.3 3,049 Hà N ộ i 15,646,294 6,472 1,618.1 2,417 Bình D ươ ng 2,707,615 1,497 374.3 1,809 Đ à N ẵ ng 1,459,437 891 222.6 1,639 Đồ ng Nai 3,629,263 2,491 622.8 1,457 Khánh Hòa 1,558,213 1,160 289.9 1,344 Qu ả ng Ninh 1,523,480 1,147 286.7 1,329 C ầ n Th ơ 1,536,662 1,190 297.4 1,292 H ả i Phòng 2,311,590 1,842 460.4 1,255 B ạ c Liêu 1,053,020 858 214.6 1,227 Cà Mau 1,404,434 1,207 301.8 1,164 Kiên Giang 1,782,697 1,688 422.0 1,056 An Giang 2,027,611 2,149 537.3 943

Tây Ninh 1,007,150 1,068 266.9 943

H ả i D ươ ng 1,607,218 1,707 426.7 942

B ắ c Ninh 932,726 1,027 256.7 908

V ĩ nh Phúc 895,587 1,003 250.8 893

Th ừ a Thiên Hu ế 755,315 1,089 272.2 694

Bình Đị nh 984,604 1,489 372.3 661

Ngh ệ An 1,896,945 2,919 729.8 650

Thanh Hóa 1,910,150 3,405 851.3 561

Total 79,009,633 44,459 11,115

75%

GDP/

Capita (2011) Vietnamese name

City/Province Total GDP

(1000 USD)

Total Pop.

(1,000)

No

of HH

Table 1 : Age tower – urban population

Source : Vietnam national statistics 2011

Table 2: Age tower – urban population Source : Vietnam national statistics 2011

The structure of population and the growth in all family sizes are offering very promising opportunities for home appliances manufacturers’ expansion

I.1.2 Income and Geography

According to Nielsen Reference book 2013, the expansion in middle class and increasing expenditure in key cities are the supporting factors to grow the high price segment products and services (Nielsen defines middle class household is the one with daily expenditure between USD 10 and USD 100 per person)

– It’s 75% of GDP come from key cities which account for 50% of population

(as Table 2)

– The middle class population was forecasted 4.5 times increasing in next 8

years and will be double in the decade after

Table 6: Household size share Source : National statistics, Euromonitor International

Growth rate per family size

Table 7: Growth rate per family size Source : National statistics, Euromonitor International

– The expenditure of the middle class was expected 23% growth within next 8

years and 40% in the decade after

– There will be the differences in spending money behaviors in upper income classes:

According to Nielsen household class and expenditure report 2011, we could realize the differences as following (pls refer the Appendix 1.2 for income classes)

people spent 3% more than the same class in Ho Chi Minh urban

the urban and 10% less than same group in Ho Chi Minh

Those facts give us an clearer view, the Hanoian rich urban people spend more money than Ho Chi Minh while the rural people are more price sensitive than Ho Chi Minh same group This point will be taken in consideration for the marketing activities and budget allocation later

I.1.3 Consumer‘s trends in cooking

According to the Social listening report by Edge Marketing in Aug 2012, the Vietnamese culture mindset is still strong across the generations such as

benefit of cooking implied here is building and keeping happy family Woman wants to cook because she loves her husband and her child

cooking ability of a woman is appreciated

Population ( million people) 8.00 44.00 95.00 Expenditure ( billion USD) 46.00 310.00 940.00 Expenditure per capita ( KUSD/person/year) 5.75 7.05 9.89

Source : AC Neilsen Pocket Reference b ook 2013

Income & expenditure 2011 HN HCM HN HCM Total

Source : Analysis from Appendix 1.1 data

In the Report, Edge also mentioned the new trends as following

(1)People are more open and looking for work-life balance

Vietnam consumers are now changing

From traditional to more modernized

From community based society to more individual based society

From multi - generation family to more nuclear family structure

From introvert to more extrovert

From low income and living standards to high ones Upgrading and bringing newness into every aspect of life in Vietnam is the common and desirable Nowadays, young women don’t know how to cook when they are single, totally relied on their moms Their common priorities are career and society activities However, after getting marriage, the priority changes into family and personal work and life balance They cook according the traditional culture but they now expect the husband share the house workloads

For the men, they are more open, less conservative than their fathers and grandfathers They still want the wives cook at home but more willing to support in house works

But both wife and husband, they don’t want to take cooking and doing house works seriously and prefer saving time to enjoy other activities like sports, travel, and entertainment

(2) Health concerns are high: the link between foods and safety is in focusing in

all families The crises from foods out of home and low quality cooking equipments make people hyper care in choosing foods and cooking equipments According to Nielsen Vietnam pocket reference book 2013, health concern is at top 5 key concerns of consumer (please see reference Appendix 1)

(3) Market are divided into different segments because of the consumer

requirements toward kitchen equipments such as functional benefits, health concerns, differentiation, etc

I.1.4 Competition

According to Euromonitor International report for large cooking appliances in Vietnam - Jun 2013,

- Large cooking appliance market continued to growth with 12% in volume and 18% in value in 2012 The growth was lower than 2011 due to the increasing maturity of the category

and Rinnai Vietnam with respective 13% and 8%

- Electrolux is well establish brand which earns great trust from consumer it serves, mostly in the mid price segment through store activities, website, print ads and bill boards

period in 3 year period 2012-2015, because of the increasing of urbanization and the need for convenience life style

Source : Teka annual report 2012

According to Teka, their brand was known as the EU origin, sophisticated design and high price as benchmarks to differentiate to other brands The “Cook with Love” platform was built but was not well connected to target consumer We will deeply analysis this platform in Part II for further understanding

PART II: TEKA BUSINESS ANALYSIS

II.1 Sales Performance

Teka Vietnam performed very well with average growth rate about 20% in the period of 2008-2012 Among the wide range of kitchen equipments, the sink and tab, build in Hob, hood, are four key volume drivers with more than 15% volume contribution each The growth mainly came from the distribution expansion

1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000

-AC 2008

AC 2009

AC 2010

AC 2011

FC 2012

Target 2013 Net sales 1,446, 1,461, 3,178, 3,722, 4,823, 5,695,

Source : Teka annual business report 2012

SUB CATEGORY VOLUME CONTRIBUTION

2011-2012

2010 2011

II.2 Distribution channels

Channels

Teka has successfully shifted the weighted value sales between Project Sales and Retail sales from 50% : 50% in 2009 into 30% : 70% since 2012 while maintaining the growth of each channel over 20% annually

– In the Retail channel, exclusive shop group is the key driver for revenue

– Among the territories, The South is still key driver as biggest volume and value

contributor while the North is catching up with better growth rate

Exclusive 66%

Traditional 12%

Moderntrade 15%

Kitchen specialist 7%

2012 RETAIL CHANNEL CONTRIBUTION

Source : Teka business report 2012

500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000

II.3 After sales service

Since 2009, Teka has built their own team for customer care to receive consumers’ queries Then those queries will be transferred to their third parties (contractors) for actual technical services

A lot of time and effort have been spent to build up qualified after sales service as Teka’s differentiation This direction is challenged because of unequal of technical competency among contractors

At current, Teka is still on the way to improve this service because they are not much different to their competitors

II.4 Marketing objectives and activities

II.4.1 Marketing objectives

Teka is aiming to be No.1 brand position and after sales service provider in built-in kitchen appliances in Vietnam In order to achieve this objective, they are building stronger connections with consumers through “cook with love” platform

II.4.2 Brand identity analysis and theory

According to professor Christian Bluemelhuber, Solvay Brussels School, the brand should be positioned differently with competitor and the brand concept has to

be new

North, 1,600,536 , 43%

Central, 37,222 , 1%

South, 2,084,420 , 56%

TERRITORY CONTRIBUTION 2011

Source: Teka buisness report 2012 with revision

(Source : the handout chapter 5, Brand management & Design, professor Christian Bluemelhuber from Solvay Brussels School , 2012-2013)

Besides that, according to the theory developed by J.N Kapfere we understand that to build the strong brand, we need to have 3 principle points:

In this project, we will only focus to review the brand identity and solution to communicate the brand identity to consumer According to Kapfere, brand identity will be included following elements:

(Source Caperer’s brand identity Prism model by European institute for brand management – Pls refer Appendix 1.4)

In which

- The good brand will be showed as person through the constructed source (physique and personality) and also as the stereotypical user by the constructed receiver (reflection and self image)

- The social aspect of the brand will be defined by its external expression (physique, relationship and reflection) and also the aspects that are incorporated into the brand itself (personality, culture and self image)

According to Kapferer, “strong brand are capable of weaving all aspects into an effective whole, as a way of coming to a concise, clear and appealing brand identity According to Kapferer, the six aspects can be described as following:

1 Physique: this is the set of the brand physical features, which are evoked in

people’s minds when the brand name is mentioned This aspect has to be considered the basic of the brand Key questions regarding this aspect are

“what does the brand look like” what can consumer do with it in terms of functionality? How can it be recognized? It is also important to have a clear flagship product representing the brand over all qualities”…

2 Personality: is the brand character

3 Culture: is the system of values and basic principles on which a brand has to

base its behavior (product, communication) Culture is the direct link between brand and the organization, country

Physical Personality

Culture Relation

Self Image Reflection

4 Relationship: a brand can symbolize a certain relationship between people

This aspect requires a brand manager to express the relationship his/her brand stand for

5 Reflection: this aspect makes reference to the stereotypical user of the brand,

and is the source for identification

6 Self- image : the mirror the target group holds up to itself

Hereafter is the brand identity of Teka from the online brand health check report

by Edge Marketing, Aug 2012

– Teka brand was perceived extreme high price, nice design, elegant EU origin was also mentioned as one of brand attribute

( Source: Teka brand health check report – Aug 2012)

From that report, we can map the brand identity prism of Teka is as

following

Brand identity is the back bones for brand building and also the communication plan It needs to be defined clearly the unique points to differentiate the brand with competitors Current Teka brand identity has not been defined clearly the differentiations For that reason, we would like to suggest Teka consider to add the differentiation in their brand prism first then using the new brand identity as the back bone for the communication plan

II.4.3 Current communication strategy with theory

Physical

Kitchen appliances

Personality

Elegant, Sophisticated in choosing things

Priority target

Female who is above 25 years old, class A, B plus

Progressive wife who is successful wants balancing work-life As reported in Consumer’s trends in cooking (Part I.1.3), she is more extrovert, and modernized, priding of her achievements and social activities She updates herself constantly and likes to spend quality time with her beloved ones

She enjoys and confident to manage family and home even, feeling the need to enjoy life and partake in this new and modern Vietnam Above all, she still wants

to cook to express her love and care to husband and kids but she expects the cooking become more convenient, time-saving and easier with innovative kitchen equipments

Learning from the consumer’s trends in cooking (Part I.1.3) young women don’t pay their attention to cook when they are single because they have moms to cook for them After marriage, cooking become their duty and bring more pressure as the elderly require them to handle it

Insight of Priority target:

priorities on career and social network so that they are too busy to cook frequently

- Realizing that cooking is important but don’t want to take it serious

- Eating outside and ordering fast-food mostly, the cooking is only for weekend

things

see the husbands cook for them

Secondary target

Male (30%) who is a practical husband - a working man who appreciates traditional family values but open with international trends He thinks cooking is not women exclusive duty and willing to assist his wife in house works

As health concerns are very high among Vietnamese consumer’s trends nowadays (Part I.1.3), he highly appreciates meals at home and prefers mom and wife cook for him rather than the house-helper does

Also from the Vietnamese consumer’s trends in cooking, we recognized that man

is more open and willing to help his wife but just be able to do some small stuff because of no cooking skill

Insight of Secondary target:

– They just help woman in some small stuff For ex: Cleaning the dishes, chopping vegetable…

From above portraits which including behavior and insight of both target groups, we can find out their sharing values and insight which can describe as following

• Common Insight:

– Cooking is a must have activity of a family but new generation take it less seriously in compare with their parent generations They would like to prioritize for the family gather moment rather than cooking

– Most of Vietnamese men and women still think cooking is female’s exclusive duty However, more and more young male try to help his wife on house tasks, including cooking

and things displayed in their houses They exhibit “home pride” behaviors and use high end products to make a statement about them Level of the home pride behaviors is different in showing out by area

From those insights, we can realize that the cooking requirement in modern life is conflict with traditional belief Cooking is still important with Vietnamese women but they want to take it simple The sharing and sympathizing attitude from husband motivate women to cook Besides that, kitchen equipments are not only simply for cooking but also using as the means to show owner’s style In order to fulfill these insights; the “Cook with love” platform was built to connect the innovative technology, well-design of Teka products to the consumer mind and heart as following:

b Activities and channel

b.1 Integrated communication mix to bring the “Cook with love” message to life

b.2 Evaluation the current communication mix

Teka had built the “Cook with love” platform and put it at the centre of their communication mix as following:

(1) Evaluate the effectiveness of Teka’s offline activities

- Merchandising at shop: this is the most important activity that Teka

invested since 2009 They have been successful in building the consistent image of Teka brand across the exclusive shops and retailers However, no

“Cook with love” image appears in those places

- POSM: This tool is just limited at catalogue, brochure about the products to

support sales in both retail and project channels

- Exhibition: Every year, Teka choose Vietbuild to introduce their capacity,

new products and technology Vietbuild trade fair is the biggest exhibition

of Construction – Real Estate – Building Materials – Interior and Exterior decoration in Viet Nam It gathers all well known domestic and foreign entrepreneurs, visitors, partners, construction contractors, engineers, architects This event not only offers Teka chance to evaluate market, gather competitor’s information, appear on PR stories and news but also meet face to face with Key Opinion Leaders, Dealers and potential customers How to help Teka stand out among others while still bring to the Fair the message “ Cook with Love” is the critical issue

- Cooking class: For the consumers, Teka keeps providing well-designed

cooking classes at exclusive shops and retail shops to both adult and children These cooking classes are organized by Teka in order to support

retailers Each shop is recruiting attendees themselves based on current loyalty customer list or contact information of potential customers who visited shop before Consumers who attend there will have the chance to experience Teka’s products and trendy recipes More important, those cooking classes help consumers realize that cooking with Teka is simple and fast but help you have a great meal with nourish nutrition Consumers love this program but it was limited to those who know Teka or followers of

“Cook with love” platform The critical issue here is participants are able to explore about Teka’s products and cooking experience but they still could not relate these activities to “Cook with love” concept

(2) Evaluate the effectiveness of Teka’s Advertising and event sponsor

Teka is choosing advertising in highly targeted channels such as TVC in display LCD in some office buildings and luxury apartments, or occasional brand name’s appearance in some specific magazines or events It helps Teka reach target consumer at low cost but cannot make an impressive impact Beside that, Teka’s advertising or event sponsor were not linked

to “Cook with love” message

(3)Evaluate the effectiveness of Teka’s PR activities

Online PR plays an important role

To evaluate the performance of online PR activities, Teka used the brand health checking report that collected by a social listening tool from Edge Marketing This is a software application that can help Teka listen more comprehensively and effectively to what their audience already said about them Through analyzing the data and reaching all these insights, the tool helped Teka to understand their customers better and improve their marketing strategy The tool also went beyond basic aggregation and provided detailed insights, including sentiment analysis and trend tracking This social listening tool is used widely by many big companies including Diageo, AnZ, Adidas, etc Following that social listening report from Edge Marketing, Teka gained 26% share among 4 premium brands discussed online within the early 6 months of 2012 This proved that the low cost, speed and ease of practicing online PR brought good result Since brand association has not established as expected, consumers talking about Teka under very basic and functional topics, mostly focused on product information Therefore, strong brand functional benefits were recalled among online community while low emotional association, especially no connection with “Cook with Love” platform

From total buzz

talking about its

“Cook with love”

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Most Discussed Issues aro