Marketing plan to launch a packaged soya milk in vietnam final project master in business marketing management

The target consumers’ insight is the foundation to shape the product development 1.2 Objectives of Research - Understand the different attitude towards health /diet /nutrition among fem

TRƯỜNG ĐẠI HỌC MỞ TP.HCM UNIVERSITEÙ LIBRE DE BRUXELLES HOCHIMINH CITY OPEN UNIVERSITY SOLVAY BRUSSELS SCHOOL

MBMM3

NGUYỄN THÙY CHÂU

MARKETING PLAN TO LAUNCH

A PACKAGED SOYA MILK IN VIETNAM

MASTER PROJECT MASTER IN BUSINESS & MARKETING MANAGEMENT

Tutor: Trinh Thuy Anh

Ho Chi Minh City

(2011)

STATEMENT OF ORIGINALITY

This work has not been submitted for a degree or diploma in any university To the best

of my knowledge and belief, the project contains no materials previously published or written by another person except where due reference is made in the project itself

NGUYEN THUY CHAU

March 01, 2011

ACKNOWLEDGEMENT

Firstly, I would like to express my appreciation to Ms TRINH THUY ANH - PhD, my project tutor, for all her valued guidance and expert advice in the preparation of this project

Special thanks to my mentor for his personal encouragement and unlimited support in sharing marketing experience which motivated me to work harder on this project Last but not least I would like to send my deepest appreciation to my family and my company for their emotional support and spiritual encouragement throughout my MBA study

TUTOR’S COMMENTS

I am writing to certify that this project entitled:

MARKETING PLAN TO LAUNCH

PACKAGED SOYA MILK IN VIETNAM

Prepared by

Ms NGUYEN THUY CHAU

meets the requirement for a business project at the master’s level It is recommended that Nguyen Thuy Chau present her project to the Committee

Hochiminh City, March 1st, 2011

_

Tutor’s signature

Trinh Thuy Anh

TABLE OF CONTENT

EXECUTIVE SUMMARY 1

CHAPTER 1: INTRODUCTION 3

1.1 Reasons to Research 3

1.2 Objectives of Research 3

1.3 Methodology 4

1.4 Structure of Thesis 4

CHAPTER 2: LITERATURE REVIEW 5

2.1 Process to launch a new product 5

2.1.1 Idea Generation 6

2.1.2 Screening 6

2.1.3 Concept Development and Testing 6

2.1.4 Business Analysis 6

2.1.5 Product and Marketing Mix Development 7

2.1.6 Market Testing 7

2.1.7 Commercialization 7

2.2 Marketing Activities to Build and Develop a New Product 7

2.2.1 Product 7

2.2.2 Price 8

2.2.3 Place (Distribution) 10

2.2.4 Promotion 11

CHAPTER 3: RESEARCH DESIGN AND FINDINGS 12

3.1 Framework of Research 12

3.2 Methodology and Sampling composition 12

3.3 Findings of Research 13

3.3.1 Finding 01: Life attitude 13

3.3.2 Finding 02: Eating behaviors 14

3.3.3 Finding 03: Criteria of Demanding Soy-milk brand 15

3.3.4 Finding 04: Hierarchy of Demanding Criteria 17

3.3.5 Finding 05: Occasions to use 18

3.3.6 Finding 06: Location to drink Soy-milk 18

3.3.7 Finding 07: Activity to drink Soy-milk 19

3.3.8 Finding 08: Places to buy Soy-milk 19

3.3.9 Finding 09: Environmental Concern 20

CHAPTER 4: MARKET ANALYSIS 21

4.1 Market situation 21

4.2 Introduction of La Beaute 23

4.2.1 About La Beaute 23

4.2.2 La Beaute’s Sustainability 24

4.3 SWOT Analysis 25

4.3.1 Strengths 25

4.3.2 Weaknesses 25

4.3.3 Opportunities 26

4.3.4 Threats 26

CHAPTER 5: MARKET ACTIVITIES 27

5.1 Target Consumers 27

5.2 Positioning 28

5.3 Marketing Activities to Launch La Viva 29

5.3.1 La Viva 29

5.3.2 Pricing of La Viva 31

5.3.3 Distribution of La Viva 33

5.3.4 Communication Strategy of La Viva 34

CHAPTER 6: CONCLUSION 37

REFERENCE 38

APPENDIX 39

LIST OF TABLE Table 4.1 Retail value RSP 24 Table 4.2 La Beaute’s Sustainability 26

Table 5.1 Pricing analyses for la Viva 34

Table 5.2 Communication mix 38

LIST OF FIGURES

EXECUTIVE SUMMARY

EUROMONITOR International1 forcasted that total Vietnam soy-milk market valued at US$ 18.5 million for the year 2010, growing by 23% vs 2009 also gave a forecast in

2014, this market value will achieve a value of US$ 43 million

Thanks to the initiatives in communicating and customizing product offering, local manufacturers are dominating market with 97% market value share by Fami, Vinasoy, Vfresh and Number One etc

With the communication of “Good for health” and “Good for heart”, soy-milk market is not so segmented and is considered a normal beverage for health

La Beaute is founded by the philosophy of Beauty-oriented company for Vietnamese working people It is planning to offer this soy-milk market with distinct proposal which is uniquely different from the current soy-milk in the market

The thesis conducted a qualitative research to find out the insights of its target consumers – Vietnamese young working woman aging from 22 to 40 Then it proposes

a concept to launch a soy-milk brand named La Viva to offer its target consumers

Euromonitor International Ltd is a privately owned, London-based market research firm, providing market research and business intelligence reports and data to industry The firm was founded in 1972

Euromonitor's website states the firm currently employs more than 1000 analysts and consultants globally, who source market information in 80 countries, producing consumer industry market reports, reference books, company profiles, current market data, and market forecasts (Wikipedia, Aug 2010)

With the advantage of marketing capability and consumer-centric philosophy, La Beaute starts its penetration into the big cities first The success of urban geo-distribution is the foundation for it to expand its distribution to the deeper and wider areas to the whole nation of Vietnam

The research found out that target consumers initiatively are demanding much more than the offerings from current players are This unmet need is the huge opportunity for

La Beaute since there is no players claiming for “Nourish from Inside out” or “Good for Breast” whare are hugely expected from target consumers

This thesis is proposing a marketing plan to launch a soy-milk to best fit the consumers’ unmet demand

CHAPTER 1: INTRODUCTION

1.1 Reasons to Research

La Beaute is Vietnamese private company which outsources suppliers to produce

carton packaged soy milk to sell in Vietnam market With competitive advantage in market initiatives and consumer understanding, it is quite innovative in product proposition and capturing market dynamics

La Beaute has found that the soy milk market is increasing and market size of soy

milk is quite big with US$ 18.5 million in 2010 with annual market growth rate of more than 23% which is highest in beverage category (Source: Euromonitor International,

2010) Therefore, La Beaute is planning to penetrate this lucrative soy milk market

In order to develop a soy-milk to best fit consumer’s desire, the primary research needed to be conducted to explore the target consumers’ insights The target consumers’ insight is the foundation to shape the product development

1.2 Objectives of Research

- Understand the different attitude towards health /diet /nutrition among females

- Explore underlying & potential insights in the soy-milk category

- Develop new soymilk concepts based on the 2 initial directions: Health shot and

Convenient

- Provide recommendations for concept optimizations and communication

directions

1.3 Methodology

Qualitative research was conducted with focus groups, in different age ranges, who are working woman and used soy-milk in last 6 months in order to collect the insights, needs, key perceptions

1.4 Structure of Thesis

The Thesis Includes 5 Chapters

- Chapter 1: Introduction to introduce Reasons to Research, Objectives of

Research and Methodology of research

- Chapter 2: Literature Review to review the process to launch a new product

- Chapter 3: Research and Findings

- Chapter 4: Market Analysis and introduction of Le Beaute

- Chapter 5: Marketing Activities

- Chapter 6: Conclusion

CHAPTER 2: LITERATURE REVIEW

The chapter was written based on Know this: Marketing Basics, Paul Christ (2009)

2.1 Process to launch a new product

Figure 2.1 A Framework of a new product launching process

IDEA GENERATION

SCREENING

COMMERCIALIZATION

BUSINESS ANALYSIS

CONCEPT DEVELOPMENT and TESTING

PRODUCT AND MARKETING MIX

DEVELOPMENT

MARKET TESTING

2.1.1 Idea Generation

The first step of new product development requires gathering ideas to be evaluated as potential product options Many market research techniques are used to encourage ideas including: running focus groups with consumers, channel members, and the company’s sales force; encouraging customer comments and suggestions; and gaining insight on competitive product developments through secondary data sources Group of conducted research can yield a wide range of possible products that can be further pursued

2.1.2 Screening

Ideas are critically evaluated by company to isolate the most attractive options As the ideas are whittled down to a few attractive options, rough estimates are made of an idea’s potential in terms of sales, production costs, profit potential, and competitors’ response if the product is introduced Acceptable ideas move on to the next step

2.1.3 Concept Development and Testing

With a few ideas in hand the marketer now attempts to obtain initial feedback from customers, distributors and its own employees Generally, focus groups are convened where the ideas are presented to a group In some cases, focus groups are exposed to a mock-up of the ideas During focus groups with customers, the marketer seeks information that may include: likes and dislike of the concept; level of interest in purchasing the product; frequency of purchase; and price points to determine how much customers are willing to spend to acquire the product

2.1.4 Business Analysis

Now in this step, the process becomes very dependent on market research as efforts are made to analyze the viability of the product ideas The key objective at this stage is to obtain useful forecasts of market size, operational costs, production cost and financial projections Additionally, the organization must determine if the product will fit within the company’s overall mission and strategy

2.1.5 Product and Marketing Mix Development

Companies direct their research and development teams to construct an initial design or prototype of the idea Marketers also begin to construct a marketing plan for the product Once the prototype is ready, the marketer seeks customer input In this step, the customer gets to experience the real product as well as other aspects of the marketing mix, such as advertising, pricing, and distribution options In addition to gaining customer feedback, this step is used to gauge the feasibility of large-scale, cost effective production for manufactured products

2.1.7 Commercialization

If market testing displays promising results the product is ready to be introduced to a wider market Some companies introduce or roll-out the product in waves with parts of the market receiving the product on different schedules This allows the company to ramp up production in a more controlled way and to fine tune the marketing mix as the product is distributed to new areas

2.2 Marketing Activities to Build and Develop a New Product

2.2.1 Product

In marketing, the term “product” is often used as a catch-all word to identify solutions a marketer provides to its target market We will follow this approach and permit the term

“product” to cover offerings that fall into one of the 3 categories of Goods, Service and Ideas

 Goods - Something is considered a good if it is a tangible item That is, it

is something that is felt, tasted, heard, smelled or seen In some cases there is a fine line between items that affect the senses and whether these are considered tangible or intangible

 Service - Something is considered a service if it is an offering a customer

obtains through the work or labor of someone else Services can result in the creation of tangible goods (e.g., a publisher of business magazines hires a freelance writer to write an article) but the main solution being purchased is the service

 Idea - Something falls into the category of an idea if the marketer

attempts to convince the customer to alter their behavior or their perception in some way

2.2.2 Price

What is price?

In general terms, price is a component of an exchange or transaction that takes place between two parties and refers to what must be given up by one party (i.e., buyer) in order to obtain something offered by another party (i.e., seller) In fact, price means different things to different participants in an exchange:

 Buyers’ View – For those making a purchase, such as final customers,

price refers to what must be given up to obtain benefits

 Sellers’ View - To sellers in a transaction, price reflects the revenue

generated for each product sold and, thus, is an important factor in determining

profit For marketing organizations price also serves as a marketing tool and is a key element in marketing promotions

Price versus Value

For most customers price by itself is not the key factor when a purchase is being considered This is because most customers compare the entire marketing offering and

do not simply make their purchase decision based solely on a product’s price In essence when a purchase situation arises price is one of several variables customers evaluate when they mentally assess a product’s overall perceived value

Perceived value = perceived benefits received/perceived price paid

For the buyer value of a product will change as perceived price paid and/or perceived benefits received change

Importance of price

Pricing decisions can have important consequences for the marketing organization and the attention given by the marketer to pricing is just as important as the attention given

to more recognizable marketing activities Some reasons pricing is important include:

 Most Flexible Marketing Mix Variable – The flexibility of pricing

decisions is particularly important in times when the marketer seeks to quickly stimulate demand or respond to competitor price actions

 Setting the Right Price – Pricing decisions made hastily without sufficient

research, analysis, and strategic evaluation can lead to the marketing organization losing revenue

 Trigger of First Impressions - It is important for marketers to know if

customers are more likely to dismiss a product when all they know is its price If

so, pricing may become the most important of all marketing decisions if it can be

shown that customers are avoiding learning more about the product because of the price

 Important Part of Sales Promotion – Many times price adjustment is part

of sales promotions that lower price for a short term to stimulate interest in the product

2.2.3 Place (Distribution)

What is distribution channel?

Distribution channel is the path that moves product from the marketer to consumers It means making decisions on the activities that will give customers access to and permit purchase of a marketers’ product

Distribution systems

 Indirect - With an indirect distribution system the marketer reaches the

intended final user with the help of others These resellers generally take ownership of the product, though in some cases they may sell products on a consignment basis Under this system intermediaries may be expected to assume many responsibilities to help sell the product

 Direct - With a direct distribution system the marketer reaches the

intended final user of their product by distributing the product directly to the customer That is, there are no other parties involved in the distribution process that take ownership of the product

 Multi-Channel (Hybrid) - In cases where a marketer utilizes more than

one distribution design the marketer is following a multi-channel or hybrid distribution system

Promotion Mix

Marketers have at their disposal four major methods of promotion Taken together these comprise the promotion mix Those include:

 Advertising – Involves non-personal, mostly paid promotions often using

mass media outlets to deliver the marketer’s message

 Sales Promotion – Involves the use of special short-term techniques, often

in the form of incentives, to encourage customers to respond or undertake some activity

 Public Relations – Also referred to as publicity, this type of promotion

uses third-party sources, and particularly the news media, to offer a favorable mention of the marketer’s company or product without direct payment to the publisher of the information

CHAPTER 3: RESEARCH DESIGN AND FINDINGS

Research Objectives

elements The findings were the foundation to design the next steps for product development and marketing mix

Focus groups sample

We recruited 20 respondents and divided into 4 groups Respondents of each group had the similar demographic in age range and genders

- 2 groups of : 5 females, working, age from 22 to 30 [young working female group]

- 2 groups of : 5 females, working, age from 21 to 40 [mature working female group]

Respondent criteria: those who drank soy-milk in last 6 months

Research Question : Refer to Appendix 01.

 I believe that hard working is a way to make life better

 My family is a big part of my life

 I want to have a good career to show my independence

 Maintaining family values is important to me

 I'm always prioritize to choose product which is good value for money

 I am constantly looking for new experiences in life Differentiated

Attitudes

 Being accepted by others is very important to me

 I really appreciate the actions which protect the environment

 I pay more attention to spiritual wellbeing than material stuffs

 I trust the manufacturers who specialize in Soy milk only

 I am a busy person who is always looking forward to possibility in the future

 I love trying new brands and products before my friends have chance to try them

 I like to stand out from everyone else

 I want to become more attractive

Niche attitudes  I tend to think and act in a way as similar as my friends

 I am more concerned about my children’s future than I were 1 year ago

 I find it difficult to balance work and family needs

 I really need a product which could reward me whenever I get tired

3.3.2 Finding 02: Eating behaviors

Key – general

common ones

 Looking after my health is one of my highest priorities

 Slim body is the sign of attractiveness

 Soy products are integral to being healthier

 Beautiful skin is the sign of good health

 When buying food, I always prioritize to choose safe/ hygiene product

 I always try to choose the food & drink which is good for health

 Soy-milk is considerable with less fat than other dairy products

Differentiated

Attitudes

 I always look at the label to check the ingredients in a product

 I always try to choose product with less preservative

 I am constantly thinking about my weight

 My busy life makes moderating my food intake difficult

 To me, quality is necessary for eating than quantity

 Soy drinks are considerably better for me than other dairy products

 The brands I choose reflect the type of person I am

Niche attitudes  Soy-milk is good for breast

 I pay a lot of attention to what I eat and drink towards my beauty

3.3.3 Finding 03: Criteria of Demanding Soy-milk brand

[The higher the order, the more important rate]

1 Good for beauty

2 Help me more attractive

Needs that can

differentiate

your offer

1 Anti-aging

2 To give me healthier skin

3 To have a good body shape

4 Cooling down/ balance the body inner heat

6 To make me feel more beautiful

7 To ease my stress

8 To feel confident