Tài liệu Brand marketing campaign an evaluation of lipice sheer color brand in 2015

TRƯỜNG ĐẠI HỌC MỞ TP. HCM UNIVERSITÉ LIBRE DE BRUXELLES HO CHI MINH CITY OPEN UNIVERSITY SOLVAY BRUSSELS SCHOOL MMCOM9 NGUYEN BA NHAT TAN TRUONG TUYET HONG BRAND MARKETING CAMPAIGN: AN EVALUATION OF LIPICE SHEER COLOR BRAND IN 2015 MASTER PROJECT MASTER IN BUSINESS & MARKETING MANAGEMENT Ho Chi Minh City (2016) 1 COMMITMENT This project was created based on the interesting of ourselves before, during and after finishing the Master in Marketing and Communication Management Course. We truly love marketing and communication, therefore we spend enough time in finding information, market survey and some information provided by RHOTO-MENTHOLATUM VIETNAM Co., Ltd to complete this project. Some information from the product is non-disclose due to the strict requirement from the manufacturer, however we commit that with the information provided will be sufficient to the thesis for this project. 2 ACKNOWLEDGEMENTS Firstly, We would like to send my great thanks to all professors of Solvay Brussels School and the Ho Chi Minh City Open University for the useful marketing knowledge in the Master In Marketing & Communication Management course year 2014 – 2016. Secondly, we would like to send many thanks to my tutor – Professor Nguyen Quang Trung and Mr. Ho Cong Hoai Phuong, who have show us a lot experience in guidance, advices and comments on how to build up an effective brand analysis framework. We also want to say thanks to ROHTO-MENTHOLATUM VIET NAM team members who have supported us in providing market information, segment and even share the time in working during our studying. We also want to show our gratitude to our family who have always trust, support and also be a source of stimulation during our course. 3 TUTORS COMMENT 4 TUTORS COMMENT 5 ABBRIVEATIONS ATL Above The Line BTL Below The Line BCI Brand Communication Information BUMO Brand Used Most Often users CEO Chief Executive Officer FB Facebook HCMC Ho Chi Minh City LIS LipIce Sheer Color Regular LIS Q LipIce Sheer Color Q IMC Integrated Marketing Communication MU Lips Make-up NC Non-color POP Point of Purchase POS Point of Sales POMS Point of Sales Material PR Public Relations REF Reference SWOT Strength/ Weakness/ Opportunity/ Threat BCG Boston Consulting Group TOM Top of Mind TV Television WTO World Trade Organization 6 THE TABLE OF FIGURES FIGURE 1.0: ROHTO LIPS PRODUCTS RANGE FIGURE 1.1: THE 5 LAYERS OF PRODUCT FIGURE 1.2: IMC FIGURE 1.3: GDP GROWTH OF VIETNAM FIGURE 1.4: MARKET SHARE OF LIPS MAKE-UP PRODUCT 2014-2015 FIGURE 1.5: PERSONAL CARE MASS MARKET IN ASIA FIGURE 1.6: VIETNAM CARE MASS MARKET SITUATION FIGURE 1.7: BUYER BASE FIGURE 1.8: MARKET SHARE OF LIPS MAKE-UP PRODUCT 2014-2015 FIGURE 1.9: THE GROWTH DRIVER OF LIP MAKE-UP PRODUCT FIGURE 2.0: MEDIA SPENDING ON TV & PRINT FOR MAKE-UP LIP SEGMENT 2014 ROHTO FIGURE 2.1: MEDIA SPENDING ON TV & PRINT FOR MAKE-UP LIP SEGMENT 2014 ROHTO FIGURE 2.2: DISTRIBUTION CHANNEL FIGURE 2.3: THE PORTER’S 5 FORCES MODEL FIGURE 2.4: BCG MATRIX MODEL FIGURE 2.5: THE 7PS MARKETING MIX MODEL FIGURE 2.6: ROHTO LIS SPENDING 2014 - 2015 FIGURE 2.7: ROHTO LIPICE SHEER COLOR SALES 2014 - 2015 FIGURE 2.8: SHARE OF SALES ROHTO LIPS PRODUCTS 2014 - 2015 7 THE TABLE OF CONTENTS EXECUTIVE SUMMARY ............................................................................................ 8 CHAPTER I: INTRODUCTION ................................................................................... 9 1.1 Project rationale .................................................................................................... 9 1.2 The company ...................................................................................................... 10 1.3 The marketing mix review ................................................................................... 12 1.3.1 Product and Price ............................................................................................. 12 1.3.2 Place ................................................................................................................ 13 1.3.2 Promotion ......................................................................................................... 14 CHAPTER II: MARKET ANALYSIS ......................................................................... 15 2.1 Market overview .................................................................................................. 15 2.1.1 PESTEL analysis.............................................................................................. 15 2.1.2 Competitor analysis .......................................................................................... 17 2.1.3 Market research ............................................................................................... 19 2.1.4 The SWOT analysis ......................................................................................... 25 2.1.5 The Porter's 5 forces analysis .......................................................................... 26 2.1.6 The BCG Matrix................................................................................................ 27 2.2 The marketing plan in 2015 ................................................................................. 28 2.3 The marketing plan analysis ................................................................................ 40 2.3.1 The 7Ps Marketing Mix ..................................................................................... 40 CHAPTER III: RECOMMENDATION ........................................................................ 47 3.1 Recommendation ................................................................................................ 47 3.2 Action plan .......................................................................................................... 48 3.3 Road map ............................................................................................................ 49 REFERRENCES ....................................................................................................... 50 8 EXECUTIVE SUMMARY Niche market is a small segment but high profit. It pros is the brand trust and loyalty you will build up over time. Those years of trust then turn into legacy, which sells your events and ideas to newer party goers entering your niche. The color lip balm segment with the brand LipIce Sheer Color is an obvious example for the niche market. The brand penetrate in the segment for many years that create a legacy in loyalty and strong relationship with end-user and positioning as a market leader with a high investment from marketing campaign. However, in the need market, we have to face disadvantages such as less opportunities in market base expand, easy to be attacked by the rivals, effect of the technology, therefore we choose this case for our project to prove that the niche market is still potential and can survive in a long time with an appropriate segmentation and positioning strategy. 9 CHAPTER I: INTRODUCTION 1.1 Project rationale A strong brand is able to help a company differentiate itself from its competitors, stand out from the competition, influence a consumer’s purchase decision in the company’s favor, build customer loyalty and boost the company’s financial performance. Brand management strategy is essential when a firm wants to achieve sustained success, especially when competition is increasingly intense and product differentiation becomes unclear. So that, building a clear strategy is an important role in the marketing plan for a company when develop its business in market. The Lip Balm Color - Non Color segment was invented by Rohto-Mentholatum Viet Nam since 1996 and followed by Daily Lip Make up segment in 2003. These are also the first “made-in Viet Nam” cosmetic products that customize for Vietnam market and export to Japan and ASEAN countries. While other import products communicated as non-season product, Rohto Lip Care Products is segmented as the product of winter and festive season. These are the first cosmetic segments make the explosion of mass media channels with the locals advertising talents come along with big end-user promotion campaign that pushing the growth of Daily Lip Care and Lip Make up share speedily. The distribution channels also spread out from the General Trade channel to the Modern Trade channel to increasing product coverage. Both segments has expand gradually and became popular and high potential to having line-extension on next market stage within the key target consumer is Female 15-35 ABCD ~ 10 mils people by Y 2015 . In 2015, Make-up segment take 5.3% in Personal Care category. The Make-up for Lip also take 38% in total Make-up segment. Rohto Lip Care still being the king in the micro-niche Daily Lip Care and Lip Make Up “emirates” thanks for its integrated activities and product innovation constantly. Lip Ice Sheer Color - the market leader in Lip Balm Color microsegment with 11 years in Vietnam market has an outstanding sale performance in Y 2015 thanks to strong mass end-user promotion and product renovation “Lip Ice Sheer Color Q” after 2 previous struggle years. However, Lip Ice Sheer Color brand has facing serious obstacle: the scale down of market size and even market share [9]. Besides, new rival came from portable and black market also challenge this made-in Viet Nam brand for a quick and thoroughly MKT strategy to revitalize the brands as the sale turnover is still under expectation 10 Project objective The project aims to:  Evaluate the 2015 Marketing plan of Lip Ice Sheer Color brand.  Building up the framework for key activities for the brand in 3 years (2016 – 2018) to be the No. 1 preference Lips Balm Color brand for young female target audience. Project structure This project includes three Chapters and Reference  Chapter I: Introduction  Chapter II: Market Analysis  Chapter III: Recommendation  References 1.2 The company Rohto Japan is a pharmaceutical company, established in 1899 in Osaka, Japan. In 1970, Rohto Acquired the Mentholatum trademark right from the US Company, the Mentholatum Co., Inc. This acquisition provided Rohto with a foothold in entering the skincare market in a bid to make the Mentholatum brand into a third pillar of business and also becoming a global company.[1] 11 Rohto-Mentholatum Vietnam was established in 1996, with the vision is to bring the health care to Vietnamese consumer, Rohto-Mentholatum Vietnam put the first milestone in Vietnam market with 2-product range: Eye-drop (VROHTO) and Lips make-up (LIPICE). Since then till now, after 20 years operation, Rohto-Mentholatum Vietnam become the heart of Vietnam FMCG market with a wide product range that serves for the benefit of Vietnamese consumer. [1] Vision: Rohto, A Pharmaceutical Company Pledged to Bring You Happy Surprise! Mission: + Listening to customers' views, we give material shape to "that little extra detail". + We handle flexible production in our "Evolving Plants". + We make proposals to customers through meticulously organized sales promotion activities and information input. [2] About ROHTO LIP MAKE-UP AND LIP CARE brands Established in Vietnam since year 1996, LipIce brand open a new segment: Lip care with SPF ingredient with tasty fruity flavors. It’s also educate consumer for new habit: nourish the lip skin with or without make up. By time, in YEAR 2003, the daily make-up lip stick Lip on Lip brand is born, contribute to Vietnamese ladies a habit: caring while make-up. In Y 2005, the hero product in-line appear: Lip Ice Sheer Color- the natural and unique colors lip stick that bringing the ultimate caring benefit with the lovely natural colors. Last member, Miracle Apo came in year 2010 with fashion, trendy and catchy SKUs. Miracle Lip Crayon became the hero product among the line. By year 2015, Rohto Lip Products family have 58 members. All started from the concept “caring and nourish for the lip, brilliant but safety colors and flavors”. Rohto Lip Products are the best friend of many young ladies generations in Viet Nam through 20 years. 12 Figure: 1.0 Rohto Lips Products range 1.3 The marketing mix review 1.3.1 Product & Price In this thesis, we only focus on Lips Balm products with color (LipIce Sheer Color), this is the hero product from Rohto, driven good sales revenue and gross margin. The available products for this brand are LipIce Sheer Color Regular (LIS R) and LipIce Sheer Color Q (LIS Q). a. LipIce Sheer Color Regular (LIS R): The LIS R is basic products for starter user with natural color and light flavor. The product feature is to raise the natural beauty and protect the lip under the UV. The product aim to the target of young females from 15 to 22 years old (Teenager and Students). Price: 59,000 VND/Pcs b. LipIce Sheer Color Q (LIS Q): The LIS Q is an line-extension product from LIS R, launched from beginning of 2015, LIS Q inherit all the attributed of LIS R plus strong shade and flavor. This offer a variety range of product for consumer to choose. 13 The product cover the same target segment with LIS R with price higher the regular product around 3% Price: 62,000 VND/Pcs Figure: 1.1 The 5 layers of product 1.3.2 Place: The distribution of Rohto-Mentholatum Vietnam is divided into 3 channels: 14 a. General Trade Channel: wet market, pharmaceutical store, cosmetic shop… b. Modern Trade Channel: super market, hyper Market, covinienient store… c. Online Channel: E-commerce site,TV Homeshopping, … (in development) 1.3.3 Promotion Promotion for LipIce brand is fully intergrated communication campaign in whole year. We will go into detail in the marketing campaign review. Figure: 1.2 IMC 15 CHAPTER II: MARKET ANALYSIS 2.1. Market overview: 2.1.1 PESTEL Analysis a. Political factors Vietnam is the most politically stable in the region and the country leaders have been younger and higher education than that in the past [3]. This new generation of country leader will move country toward the modernization, industrialization rapidly and more effectively but less corruption. The Vietnamese government has shown their commitment to economic liberalization and international integration. In January 2007, by the strong efforts from the government, Vietnam joined the WTO. Vietnam political environment is favorable for investment project in terms of capital security and long run business. In 2015, Vietnam had the first entry into the TPP (Trans-Pacific Strategic Economic Partnership Agreement) which is effective in 2017, this will create more chance for Vietnam in economic development. b. Economic factors According to the Vietnam General Statistic Organization announce on 17/12/2014, Vietnam population is estimated to be around 90.5 million of which 51% is women. The annual population growth rate of Vietnam is about 1.06% [4]. Besides, the GDP of Vietnam has increased over the past years. A sustained growth rate of around 8% for over 15 years shows great progression and is one of many reasons for the increasing number of foreign investors. Vietnam received over US$20 billion of foreign direct investment in 2007, a record amount with an increase of 70% on 2006 figures, and saw almost 1,500 new projects licensed in the same year. Although the economy is developing at a rapid rate, entry costs for investors are still low, and cheap labor costs coupled with a young, literate workforce make business investment a very attractive and lucrative prospect. The Vietnamese government has shown their commitment to economic liberalization and international integration. Structural reforms needed to modernize the economy have been implemented, helping to produce more competitive, export-driven industries. Vietnam joined the WTO in January 2007. This gives a major boost to Vietnam's export led economy and spur on the country's economic liberalizing reforms including cultural exchange. With above reasons, Vietnam is considered as an attractive market for many 16 companies especially personal care products which were in the past considered as “luxury” products. FIGURE 1.3: GDP GROWTH OF V IETNAM (Source: Nhip Cau Dau Tu – Magazine - 2015) [5] c. Social factors Social environment According to Nielsen Vietnam Of all the Asian countries is getting richer and Vietnam market is part of the story [6]. In Vietnam there are more than 400 brand of cosmetic available and Vietnam is still the potential market for cosmetic. The sales revenue total for Cosmetic market is estimated to be around 15,000,000,000 VND (around 700 million USD) in 2014 [7]. The consumer base in Vietnam for consuming product (include of cosmetic) is shift to younger base, General Z which age is under 20 and Millennials (age from 21 – 31) are the core shopper. These ground is shaping the new purchasing behavior. They are easily to be affected by online sales, willing to pay for product on online channel (the decision making rate is more than 50%) and the time they spend for internet is around 15.5 hours per week. Cultural environment With the GDP growth as shown in the figure 1.3, the living standard of Vietnamese is getting better and better. Therefore, the purchasing habits of Vietnamese consumers are also changing: they spend on personal care products and they are more and more demanding for sophisticated products. d. Technology factors 17 The evolution of internet in Vietnam in the recent years and the increasing numbers of people using mobile phone creates new medium for marketing activities. The purchasing on online is a trend. e. Environment factors The climate: Vietnam is a tropical country, the environment is hot and moisture, high UV affect. The demand for using lips make-up product is high. Especially, on the central and north area of Vietnam the climate is cold in year-end so the demand of non-color lips is also good compare to other period. f. Consumer environment The Vietnamese youth nowadays see themselves as a new generation who enjoy much more advantages in terms of lifestyle and quality of life which is driven by The “Doi moi’ policy applied since 1986 of the country and Vietnam has been being integrated into international community which brings much the influx of foreign culture to Vietnam. It is also supported by the high tech development, blooming of internet and cable TV to improve living condition for everyone especially the young generation. The biggest different from the past in terms of attitude is in fact the optimistic vision of life. Youth nowadays look forward to the bright future. They welcome challenges to build experiences and knowledge instead of avoiding or being afraid of. The slogan is “Living for today as tomorrow will have other opportunities” rather than “saving for rainy days”. This optimistic vision could be explained as these youngsters have never lived in a difficult days with war and hungers like the previous generation.  The Vietnamese young target is the @ generation 2.1.2 Competitor analysis Lips make-up product is a must have in women bag in urban area, so that the competition is very harsh. The playground up-till-now is shared by foreign brands such as: Maybeline, NYX, Revlon, Nivea … Key competitor: [8] a. Maybelline: Maybelline is a USA company in cosmetic industry. Headquarter is in New York. In 1991, the company adopted its advertising slogan “(Maybe she's born with it.) Maybe it's Maybelline.” which is still used today. The company was acquired by L'Oréal in 1996. Acquiring Maybelline gave L'Oréal access to mass markets in cosmetics. 18 Maybelline cover the full range make up which focus the urban ladies. The target audience is the same. Maybelline position in the mass market with professional image. b. NYX: NYX is a US-Based full range make-up company, established in 1999, the company focus on mass market with reasonable price. The company offer a full range make-up product with trendy and fashionable style. They focus on online channel and flagship store. In Vietnam, the HQ of NYX is in Hanoi, so their operation is strong in Hanoi and medium in HCM city and others. c. Revlon Revlon was founded in 1932 in US, by Charles Revson and his brother Joseph, along with a chemist, Charles Lachman, who contributed the "L" in the REVLON name. Starting with a single product - a nail enamel unlike any before it - the three founders pooled their meager resources and developed a unique manufacturing process. Revlon is a worldwide brand, they offer full range make-up product. The company cover in mid segment which is sales channel focus in department store. d. Nivea Nivea is a brand belong to Beiersdorf corporation, Germany. The company in which focus on skin care product for both male and female. Lips make-up product is secondary focus. e. Tony Moly Tony Moly is a Korean brand cover in full-range make-up product. Established in Vietnam around 10 year, with the business strategy focus on mass segment and direct sales, Tony Moly gain a decent market share in Vietnam cosmetic industry. 19 Figure: 1.4 Market share among competitors period 2014 - 2015 Source: Surf the growth opportunity in personal care Kantar World Panel 2015 (8) 2.1.3 Market research Market Research results and findings: From Kantar World Panel research about Personal Care segment (Surf the growth opportunity in personal care in 2015) [9], we find some key point as follow:  About the mass market: a. Personal care still prove their potential in the context of FMCG growth slowing down in Asia