Overall business plan and new product launching plan

Table 3: Market size & market share estimation in2018 source: 3M Vietnam Table 17: Crystalline specification source: 3M Vietnam FIGURE: Figure 1: CR heat resistance source: 3M Vietnam F

VIETNAM NATIONAL UNIVERSITY, HA NOI

GRADUATION ESSAY (INTERNSHIP REPORT)

OVERALL BUSINESS PLAN AND NEW PRODUCT

LAUNCHING PLAN

FACULTY: MARKETING & PROSPECTIVE

INSTRUCTOR: PHD NGUYEN THI HONG HANH

STUDENT: HOANG THI VAN ANH

CLASS: MARKETING & PROSPECTIVE 6

Ha Noi, June 6th, 2018

VIETNAM NATIONAL UNIVERSITY, HA NOI

GRADUATION ESSAY (INTERNSHIP REPORT) OVERALL BUSINESS PLAN AND NEW PRODUCT LAUNCHING PLAN

FACULTY: MARKETING & PROSPECTIVE INSTRUCTOR: PHD NGUYEN THI HONG HANH

STUDENT: HOANG THI VAN ANH CLASS: MARKETING & PROSPECTIVE 6

Ha Noi, June 6th, 2018

Table 3: Market size & market share estimation in2018 (source: 3M Vietnam)

Table 17: Crystalline specification (source: 3M Vietnam)

FIGURE:

Figure 1: CR heat resistance (source: 3M Vietnam)

Figure 12: Customer’s occupation (survey by 3M Vietnam)

Figure 14: Customer’s house hold income: (survey by 3M Vietnam)

Figure 15: Customer’s hobby (survey by 3M Vietnam)

Figure 16: Favorite website: (survey by 3M Vietnam)

Figure 17: Favorite TV channels and magazine/ newspaper: (survey by 3M Vietnam) Figure 18: Social networks & Outdoor advertising: (survey by 3M Vietnam)

Figure 19: Source of getting information about auto film: (survey by 3M Vietnam)

Figure 20: Source of getting information about auto film (by region): (survey by 3M

Vietnam)

Figure 21: 3M Corporate Core Value Brand (by 3M Vietnam)

LIST OF TABLES:

Table 1: Total Automotive market share (Passenger car only) by maker (source: Registration

Data) 9

Table 2: Passenger car sold out from 2010 – 2017 (source: Registration Data) 9

Table 3: Market size & market share estimation in 2018 10

Table 4: Score card comparison among 3M, V’Kool, Llumar 10

Table 5: Customer’s opinions on installation auto film for a car 12

Table 6: Considering criteria when deciding on installing automotive film package 12

Table 7: Customers’ requirements for higher satisfaction 13

Table 8: Automotive film brand in customer’s mind 13

Table 9: Number of customer who is willing to pay for a premium film package 14

Table 10: Acceptable price range for CR Package 14

Table 11: Important factors to be considered when purchasing an automotive film brand 16

Table 12: factors effect to customer purchasing decision 16

Table 13: Customer evaluation about their current auto film brand 17

Table 14: Data analysis 17

Table 15: Why customers chose other brands 18

Table 16: Top of mind automotive film brand in customer’s mind 19

Table 17: Crystalline specification (source: 3M Vietnam) 25

Table 18: Competitive advantages of 3M CR in compare with V’Kool, Cool N Lite in the same segment and compare with other 3M products in 3M film portfolio 26

Table 19: Dealer network 46

Table 20: Total marketing budget 48

Table 21: Original Sales Plan 49

Table 22: Detail check list 52

LIST OF FIGURES:

Figure 1: Company organization chart 4

Figure 2: Overall Automotive Film business plan (Hoa Quan plan) 5

Figure 3: Source of information 21

Figure 4: Switching ratio among segments 22

Figure 5: Product portfolio 23

Figure 6: CR position among product portfolio 24

Figure 7: CR position among segments 25

Figure 8: CR heat resistance 31

Figure 9: Multi-layer optical technology 32

Figure 10: 3M no metal film 33

Figure 11: Customer profile 34

Figure 12: Customer’s occupation (survey by 3M Vietnam) 34

Figure 14: Customer’s house hold income: (survey by 3M Vietnam) 35

Figure 15: Customer’s hobby (survey by 3M Vietnam) 36

Figure 16: Favorite website: (survey by 3M Vietnam) 37

Figure 17: Favorite TV channels and magazine/ newspaper: (survey by 3M Vietnam) 37

Figure 18: Social networks & Outdoor advertising: (survey by 3M Vietnam) 38

Figure 19: Source of getting information about auto film: (survey by 3M Vietnam) 38

Figure 20: Source of getting information about auto film (by region): (survey by 3M Vietnam) 39

Figure 21: 3M Corporate Core Value Brand (by 3M Vietnam) 39

Figure 22: Master communication plan for launching new CR package 40

Figure 23: Media plan 41

Figure 24: Dealer network map 46

Figure 25: Master communication plan for launching new CR package 50

Through studying with this essay, I can equip for myself a good analysis and planning skill My strategic planning ability also improve so much

I would like to express my sincerely thank to my teachers at Vietnam National University, specially PHD Nguyen Thi Hong Hanh who enthusiasm to instruct me to complete

my essay and share with me many value knowledges during my studying time with her

I wish you all have a good health, success and happiness

Your student

Hoang Thi Van Anh

TABLE OF CONTENTS

ASSURANCE i

LIST OF TABLES: ii

LIST OF FIGURES: iii

THANKS iv

SUMMARY 1

PART I: COMPANY INTRODUCTION, DUTY INTRODUCTION 3

I Company introduction 3

1 History 3

2 Vision, mission and value 3

3 Company organization chart 4

4 Overall Automotive Film business plan 4

II Introduction about my duty in the company 5

PART II: NEW PRODUCT LAUNCHING PLAN- AUTO FILM - CR PACKAGE 6

I Market research and analysis 6

1 Business environment and SWOT analysis 6

1.1 PESTEL analysis 6

1.2 The 5 Forces analysis 7

1.3 SWOT analysis 7

2 Market over view 8

3 Qualitative research 11

3.1 Research objectives 11

3.2 Methods, sample, questionnaire 11

3.3 Summary result 11

4 Quantitative research 14

5 Market share among segments (high-end, medium, economic) … 21

II Product planning and price strategy 22

1 Product portfolio 22

2 Crystalline Package introduction 23

3 Target customer 33

4 CR Product concept and key message 39

III Promotion/ Communication plan 40

IV Place/ Channel setting up 45

V People 47

VI Packaging 47

VII Process and quality 47

VIII Customer relationship management 47

IX Budget 48

X Sales target 49

PART III: CONCLUSION 50

REFERENCES 54

SUMMARY

This essay includes 3 parts:

Part I: Introduce about company, the overall marketing plan of company and my duty

in the company My duty in the company is launching a new premium film package name CR Package

Part II: The content of Part II is detail information about my duty, what I do to prepare

for launching CR Package such as market research and analysis (PESTEL, 5 FORCES, SWORT, customer survey), product study (determine competitors, product’s competitive advantages, unique selling point, product concept, product positioning and pricing), determine target customer, key message, propose communication plan, set up Dealer system, build up customer relationship program, …

Part III: Conclusion

The company named Hoa Quan, a trading and service company, specialize in automotive aftermarket, especially automotive window film and car care The brand of product that Hoa Quan runs business is 3M – a famous global technology company in the World and has head quarter in America

The methods are used in this report are: PESTEL analysis, SWOT analysis, 5 FORCES analysis, qualitative survey, quantitative survey, observe, face to face interview

The output of this essay play an important role in business activities of Hoa Quan company It provides Hoa Quan an over view about automotive film market with market insight (market size, market share, product and competitors, …) and customer insight This essay also proposes to Hoa Quan a communication plan to approach target customers and activities to support sales team reach sales target

This essay provides to reader a layout (route map) of launching a product to the market

By reading this essay, the readers will know how a product is launched to the market, how many steps we prepare, what we do in each step, specifically:

Step 1: Market research and analysis, includes:

- Business environment and SWOT analysis

- Market overview

- Qualitative research

- Quantitative research

- Market share among segments (high-end, medium, economic)

Step 2: Product planning and price strategy, includes:

- Product portfolio

- Product to be launched (strong point/ weak point, outstanding feature, competitive advantages, )

- Target customer (customer profile),

- Product concept and key message

Step 3: Communication plan to approach targeted groups

- Know clearly about target customers (customer profile, customer’s behavior, their care, their hobby, their habit, …)

- Choose suitable communication channel and place to approach target customers: online communication channels (website, face book, you tube, online newspapers, forum seeding, television, radio, ….), offline channel (activation, offline event, launching event, exhibition, …), outdoor advertising (bill board, light box advertising, …at the airport, building, coffee shops, main roads, crowded street, ) Step 4: Set up and develop Distributor/ Dealer channels

- Set up levels of Distributors/ Dealers base on their capacity, their business strategy, potential partners, …with different price level, different sales target, …

- Training Distributors/ Dealer about product, sales talk, product installation, …

- Sales area management among Distributor/ Dealers

- Monthly/ yearly evaluation and awarding to encourage Distributor/ Dealers system Step 5: Build up related process or quality control activities, for example:

- Sales process training and period evaluation

- Technician training and period evaluation

Step 6: Develop people who run business

Step 7: Customer relationship management: develop tools and program to keep and increase loyalty customers

PART I: COMPANY INTRODUCTION, DUTY INTRODUCTION

I Company introduction

1 History

Hoa Quan Trading and Service Company was precursor of Thang Long Spare Parts Company Mr Quang and Mr Ha are the owners, specialized in trading all kinds of automotive and motorcycle parts Thang Long Spare Parts Company was established in 2010 After 8 years

of operation, to February 2018 Mr Quang separated from Thang Long Spare Parts Company and established a new company named Hoa Quan The company specializes in automotive aftermarket, especially automotive window film and car care

Regarding automotive window film, Hoa Quan distribute 3M auto film brand from 3M Viet Nam, a member of 3M Global who is famous as a high technology company

2 Vision, mission and value

With the leading spirit, preparing for the boom of the automobile industry in the coming years, Hoa Quan focus on the automotive auxiliary industry with car care items such as

exterior cleaning, interior cleaning, auto window film, The targeted customer of Hoa Quan are Authorized Automobile Dealers, Independent Garage and End Users Beside B2B activities, Hoa Quan also care about B2C activities to enhance the stable of its business

Slogan of Hoa Quan is “Fun on every journey” Safety, High Quality, Advanced Technology

are core values of Hoa Quan:

Safety: Hoa Quan's products and services provide a great contribution to increasing

the safety of customers during the use of personal vehicles to move Hoa Quan always try their best to bring the highest safety to customers

High quality: Having inherited Point 10 for the quality of Thang Long Spare Parts

Company, Hoa Quan always tightens the quality control index of the company, ensuring all customers are satisfied before leaving and peace of mind during the use of the product

Advance: To be Distributor of 3M – a famous high technology company in The World,

Hoa Quan have a chance to get more knowledge about advance technology products and bring them to customers of Hoa Quan The products of 3M are created by the leading expert in America who care much about the applying science to life

3 Company organization chart

Figure 2: Company organization chart

4 Overall Automotive Film business plan

Figure 3: Overall Automotive Film business plan (Hoa Quan plan)

II Introduction about my duty in the company

My duty in Hoa Quan is an Assistant to Business Development Manager and to be in charge of launching new premium automotive window film package name Crystalline package (CR package) In this job I do market research and analysis which focus on the premium film segment (PESTEL, 5 FORCES, SWORT analysis, customer survey, product study (determine competitors, product’s competitive advantages, unique selling point, product concept, product positioning and pricing), determine target customer, key message, propose communication plan, set up dealer system, build up customer relationship program, …

PART II: NEW PRODUCT LAUNCHING PLAN- AUTO FILM - CR PACKAGE

I Market research and analysis

1 Business environment and SWOT analysis

- The people living standard is higher and they require for high quality product

- The Automobile market is growing well, booming in the next years with many brands including domestic cars and imported cars Car owner become caring about their vehicles

Social:

- Young people like to show off their style, share their image on the social platform

- People care more about their health and they are trying their best to protect themselves

Technology:

- Telecommunications and internet are increasingly spreading

- Exploring and developing new technologies in the automobile industry

Environment:

- The Earth is hotter Summer becomes longer than Winter

- Number of people get disease from UV is increasing

Law:

- Government has just issued new regulation to bring more chance for imported car

entering the marketing, help the automobile market hotter

1.2 The 5 Forces analysis

The power of the Buyer: rather high

- Buyers are dominant because of the few number of buyers but each person usually buys in big quantities (they are Dealers and buy whose sales) => build retail channel can help company balance the power of the buyers

The power of Supplier: rather high

- The products were provided by 3M Vietnam, the member of 3M Global – a Famous Group come from America and which is the 28th among the best company in American

- 3M can choose other distributors to replace Hoa Quan if Hoa Quan does not reach sales target

The potential rivals: rather low

- In the market, only 3M owns this technology: multilayer optical film

The rival competition: rather low

- In the market, the list of brands now is mostly in the economic class and medium class There are only 2 high-end brands such as V’Kool and SunTek but SunTek is

a quite new Brands

The risk of substitutes: normal

- In the future if the automobile manufacturers can produce the car with high quality glass door which can against Solar’s UV ray, radiation, …we would not be able to sell the fill for automobile any more However, such kind of cars will be very expensive and if it happens only supper cars can be applied

- Customers in big Cities (Ha Noi, Ho Chi Minh, Hai Phong, Da Nang) have a rather good awareness about 3M automobile film

- Company has a good experience in parts business

- Company has a customer database of 8 years ago and have a good relationship with them through B2B business This can create a stable revenue for Hoa Quan and Hoa

Quan can use invest more in B2C, widen retail channels to balance the power of B2B customers

Weakness:

- The company has less experience in retail sales which aim to the end user

Opportunities:

- People’s nowadays care much about their heath and bad effects from environment,

living condition They are willing to pay to protect their health better

- The number of female car owners and female drivers is increasing and for them completion protection when driving is very important They really expect a solution

to solve their issues: UV rays, Solar’s radiation

- Gasoline price is increasing day by day and how to reduce the consumption is a

matter

- The Earth is hotter and Solar’s damage is increasing

- Quantity of New Automobile Dealer Opening is greater day by day and Hoa Quan

have many chances to inspect them at the beginning to be their Partners

- Independent Garages are looking for solutions to increase revenue Doing

automotive window film business is an excellent solution

Threats:

- Counterfeit goods from China, Taiwan

- New brands from American can enter Vietnam market like 3M

Hoa Quan should enhance the strengths (good product brand, good experience, customer database, Dealer network), improve the weakness (less experience in retail sales industry) and focus on customer satisfaction and good service quality to push business growth

up quickly Beside key accounts/ B2B activities, Hoa Quan should build retail channel to enhance the stable of its business

2 Market over view

In 2017, due to the information about new rule of imported car (imported tax will reduce

to 0%), almost customers who have need to buy a car delay their purchasing plan to wait and see new rule Therefore, the automotive market decreased around 9% in general The car maker who decrease most was Kia with 4% losing Only Toyota have increase trend but not so much with just 3,8% (Table 1)

Table 1: Total Automotive market share (Passenger car only) by maker (source: Registration

Data)

Total sold car (passenger car only) in 2017 was 154,209 unit (registration data), decrease

in compare with 2017 but still increase in compare with 2015, 2014 We can see that the need

of market still has increase trend but a little bit down in 2017 and due to this the need will boom

in 2018 and the next years (Table 2)

Table 2: Passenger car sold out from 2010 – 2017 (source: Registration Data)

Total domestic car in 2018 including new one and old one is 3,217,500 car and bout 30% of new car will install automotive film, 10% of old car will install automotive film Total car with film installed in 2018 is around 368,250 cars

Total market size in USD is about 11,047,000 of which middle up class (3M, V-Kool, Llumar) takes 50% and 3M takes 20% of Middle up class or takes 10% of total market share with USD 1,104,750 (Table 3)

Table 3: Market size & market share estimation in 2018

Middle up class (3M, V-Kool, Llumar) 50% of

Competitive strategies of Brands in high-end segment: According to the result on

the table 4, we saw that the score of 3M is 170, V’Kool is 153; Cool N Lite is 132 3M has the best quality and capacity because only 3M has factory and authority in Viet Nam However, the Brand Awareness, Dealer network and customer care of 3M is not strong enough

Hoa Quan should coordinate with 3M to hold branding activities to enhance brand awareness of 3M Strategy of Hoa Quan to help increasing 3M’s business: enhance customer awareness of a trusted brand, reasonable price, wide Dealer network and high customer

satisfaction (customer care)

Table 4: Score card comparison among 3M, V’Kool, Llumar

(Score explanation: 1 = very weak; 10 = very strong)

3 Qualitative research

3.1 Research objectives

Understand customer’s insight

Find out the trends in the market

Confirm the needs of high-end product before launching a premium product

3.2 Methods, sample, questionnaire

Methods: face to face interview

Samples: car owners (car with value from 800 Mil VND to 2 VND billion)

Questionnaire:

Question 1: What are your opinions on installation auto film for a car? (necessary,

benefit, quality, installer, …)

Question 2: What criteria do you consider when deciding on installing an auto film

package?

Question 3: Do you have any demands when you want to install an auto film package

to get more satisfied with the service?

Question 4: In your opinion, which brand is the best and the worst? Why? Sun Teck,

LLumar, Cool N Lite, V’Kool, 3M?

Question 5: Are you willing to pay for a premium film package if you know that it is the

real one, from a famous brand and you can check its quality?

Question 6: How much will you pay for that premium film package?

Interviewee information:

- Number of samples: 15

- Age ranging from 25 to 60 years old

- Gender: 9 males, 6 females

Question 1: What are your opinions on installation auto film for a car? (necessary,

benefit, quality, installer, …)

Table 5: Customer’s opinions on installation auto film for a car

Classification Positive aspects Negative aspects

- It is necessary to install film on the cars

- Benefit of film installation:

+ reduces heat and make driver feel more comfortable when driving + has anti-UV ability which protect driver from skin cancer

+ create the separate space + sometime shows the difference of car owner

- Counterfeiting goods but real price

- Limited ability in checking the counterfeiting

- Limited information about

Table 6: Considering criteria when deciding on installing automotive film package

+ High anti-UV index

+ Good heat resistance

+ Easy to see when driving

+ High anti-glare headlight

Question 3: Do you have any demands when you want to install an auto film package

to get more satisfied with the service?

Table 7: Customers’ requirements for higher satisfaction

+ How to know the real film, not fake film

+ Can contact to the band/ factory to check information

and claim incase car owner suspect about fake film

+ Know the authorized network of factory/ film brand

+ Want to know the specification of product (eg:

anti-UV ratio, heat block ability, …)

Question 4: In your opinion, which brand is the best and the worst? Why? Sun Teck,

LLumar, Cool N Lite, V’Kool, 3M?

3M: (+) good quality, long age brand, famous

(-) difficult to get the real film

V’Kool: (+) good quality, no fake

(-) narrow installation network, glare, GPRS block

Llumar: (+) economic price, rather good quality, no fake

(-) not premium brand, free-gift at showroom car Dealer

Sun Teck: (+) economic price

(-) lowest quality vs Llumar, Cool N Lite, V’Kool, 3M

Cool N Lite: (+) no fake

(-) not familiar with this brand

Table 8: Automotive film brand in customer’s mind

Respondents

Best

Llumar: not premium brand, free gift at showroom car Dealer 9

Worst

Sun Teck: lowest quality vs Llumar, Cool N Lite, V’Kool, 3M 4

Question 5: Are you willing to pay for a premium film package if you know that it is the

real one, from a famous brand and you can check its quality?

Table 9: Number of customer who is willing to pay for a premium film package

Willing to pay for a premium film package Number of Respondents

Question 6: How much will you pay for that premium film package?

Table 10: Acceptable price range for CR Package

Price rage (VND) Number of Respondents

Survey results

Question 1: How are these factors important to you when you choose automotive film?

Please give score from 1 to 9, the more important level the higher score

Table 11: Important factors to be considered when purchasing an automotive film brand

Almost purchasing purpose of customer when buying an automotive film package is for

anti-UV and heat resistance Therefore, 100% of them chose factors: High anti-UV index, Good

heat resistance And they said that almost automotive film brand in the market can meet this

requirement

The next important factors as evaluation of responders are: Good glue, Easy to see

outside, No rust, High anti-glare, Beautiful color, Beautiful color And they said that not all

automotive film brand can satisfy these requirements Only good brand can satisfy

Question 2: Which factors affect to your purchasing decision you when choosing an

automotive Film Brand? Please give score from 1 to 9, the higher effect level the higher score

Table 12: factors effect to customer purchasing decision

Beside important factors about specification information of product such as High

anti-UV index, Easy to see outside, Good glue, Beautiful color, Good heat resistance, … they will also ask friend or installer’ s advice and care about famous brand

Among three word of mouth factors: Friend advice, Famous brand, Installer’s advice,

the most effected factors to car owner when they make purchasing decision is friend advice,

then Installer advice and famous brand Most of them believe about what their friend talk to them

Question 3: Could you give evaluation for the current automotive film you are using?

Please give score from 1 to 9, the better evaluation the higher score

Table 13: Customer evaluation about their current auto film brand

R Square R Square Adjusted

Customer express their loyalty with Auto film brand with characteristics:

R Square R Square Adjusted Q4 use 0.963 0.961

Only three factors have significant impact on the decisions to use of the others auto films: Good glue, Easy to see outside, Anti-glare These three characteristics explain 96% of the changes of decision to use of customers

Question 4: Which is name of your current automotive film?

3M Brand: 25 respondents (12.5%)

V’Kool Brand: 22 respondents (11%)

Llumar Brand: 27 respondents (13.5%)

Other Brands: 126 respondents (63%)

This quantity number is rather match with the actual market share (Middle up brand takes ~50% total market share (3M, V’Kool, Llumar and some other brands but very low market share which I calculate here in the Other group); 3M brand takes around 10% of total market share

Question 5: Do you agree with below ideas? Please give score from 1 to 9, the higher

agreement level the higher score

Table 16: Top of mind automotive film brand in customer’s mind

This brand is my first choice when I think

I will not change to other brand if this

I will change to the other brand if that

I will introduce this brand to other people 14 4 28 6 19 115 4 10

I will not introduce this brand to other

* I will not change to other brand if this brand still has goods and service: 58 responders

gave score from 7 to 9

Question 6: How do you know about the current auto film brand?

86% know about Brand through staff/ sales consultant at car showroom/ garages 20% know about Brand through friends/ relatives

7% know about Brand through advertising at car showroom/ garages

4% know about Brand through social platform

2% know about Brand through website of that brand

1% know about Brand through event/ activation

Figure 4: Source of information

Question 7: For a sedan car with 4-5 seats, which price is suitable for a super premium

5 Market share among segments (high-end, medium, economic) …

Currently, the Economic segment take highest market share with 50% while the Medium segment is 35% and the Premium segment is only 15% This is easy to understand because the market is free now and no voice from the official brand; customer has no information about authorized Distributor/ Dealers and they are not active to discover

information about automotive film (Figure 4)

Figure 5: Switching ratio among segments

However, as qualitative survey result, customer is willing to pay for a good quality product which they know well about its source/ brand and it is value for money

In addition, the income and living standard of customer is increasing day by day and need of owning a car is booming in the next coming years

Therefore, we have a good change to convert customer from the lowest segment to the medium segment and from the medium segment to the high-end segment when we well educate customer and give them enough information for their decision making

II Product planning and price strategy

1 Product portfolio

Terms to know

• Total Solar Energy Rejected (TSER)

The percentage of total solar energy rejected by filmed glass The higher this value, the less solar heat is transmitted

• Visible Light Transmitted

The percentage of visible light that passes directly through filmed glass: the higher the number, the lighter the film

• Glare Reduction

The percentage by which visible light is reduced by the addition of film

Current product portfolio of 3M Auto Film currently has 2 main kinds of packages:

- Premium package: CS

- Economic package: RE and some other package such as BC, FX

We should launch a Premium Package, maintenance the Medium package and gradually reduce and cut the Economic Package

For the BC package and FX package (lowest quality product), we should cut immediately to have simple portfolio, easy to communicate and educate customer and enhance brand image of

a high quality

Figure 6: Product portfolio

2 Crystalline Package introduction

Source of product that Hoa Quan distributes:

The auto film that Hoa Quan distribute is a product of 3M Viet Nam which is imported from 3M America, packaging and trading in Vietnam The new product that is going to be launched names Crystalline (shorten name is CR) and it entered the high-end market

Product level of Crystalline in product portfolio of 3M Film:

Crystalline (CR) is the most premium product in the product portfolio of 3M Film