Final report Group 3 A05E Marketing management PDF

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BỘ GIÁO DỤC VÀ ĐÀO TẠOTRƯỜNG ĐẠI HỌC KINH TẾ - TÀI CHÍNHUEFMARKETING MANAGEMENTFINAL REPORTLecturer: Lê Hồng ĐắcClass: MKT1102E – A05EGROUP 3 Nguyễn Quốc ThuậnLương Yến Linh Đào Duy KhánhĐỗ Thanh Trúc Nguyễn Huỳnh Ngọc TrinhTable of contents Chapter I: EXECUTIVE SUMMARY Chapter II: OV...

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Lecturer: Le Hong Dac

A05E

Group 3

BỘ GIÁO DỤC VÀ ĐÀO TẠO TRƯỜNG ĐẠI HỌC KINH TẾ - TÀI CHÍNH UEF   

MARKETING MANAGEMENT

 FINAL REPORT  Lecturer: Lê Hồng Đắc Class: MKT1102E – A05E

GROUP 3

Nguyễn Quốc Thuận

Lương Yến Linh

Đào Duy Khánh

Đỗ Thanh Trúc

Nguyễn Huỳnh Ngọc Trinh

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Lecturer: Le Hong Dac

A05E

Group 3

Table of contents Chapter I: EXECUTIVE SUMMARY ....................................................................................................... 4 Chapter II: OVERVIEW .............................................................................................................................. 5 1. General introduction........................................................................................................................ 5 2. Huggies’s history ............................................................................................................................... 5 3. Foundation and competitive advantage ................................................................................. 6 4. The product line of Huggies .......................................................................................................... 6 Chapter III: OBJECTIVE............................................................................................................................. 7 Chapter IV: SITUATION ANALYSIS ...................................................................................................... 8 1. Market Analysis .................................................................................................................................. 8 2. SWOT Analysis .................................................................................................................................... 9 Chapter V: STP ANALYSIS .................................................................................................................... 10 1. Market Segments ............................................................................................................................ 10 2. Target segment ................................................................................................................................ 11 3. Positioning ......................................................................................................................................... 12 Chapter VI: MARKETING STRATEGY .............................................................................................. 14 1. Product Strategy ............................................................................................................................. 14 2. Price Strategy ................................................................................................................................... 15 3. Place strategy ................................................................................................................................... 16 4. Promotion strategy........................................................................................................................ 19 4.1. Advertising ............................................................................................................................... 19 4.2. Direct marketing .................................................................................................................... 21 4.3. Promotion ................................................................................................................................. 22 4.4. Public relations (PR) ............................................................................................................ 23 4.5. Personal sales .......................................................................................................................... 23 Chapter VII: FINANCIAL PROJECTIONS ......................................................................................... 24 1. Sales forecast .................................................................................................................................... 24 2. Budget .................................................................................................................................................. 24 2

Lecturer: Le Hong Dac

A05E

Group 3

2.1. Direct ads estimated budget table ................................................................................. 24 2.2. Online ads estimated budget table ................................................................................ 25 2.3. Promotional gifts estimated budget table .................................................................. 26 2.4. Sponsorship programme estimated budget table .................................................. 26 2.5. Income statement and total marketing estimated budget .................................. 26 Chapter VIII: IMPLEMENTATION PLAN ........................................................................................ 28 1. Timeline activity ............................................................................................................................. 28 2. Project activities description .................................................................................................... 28 Chapter IX: EVALUATION AND CONTROL METRICS ............................................................... 34 1. Evaluation criteria ......................................................................................................................... 34 2. Evaluation methods ...................................................................................................................... 34 3. Estimated plan ................................................................................................................................. 34 Chapter X: APPENDIX ............................................................................................................................. 35 Chapter XI: REFERENCES ..................................................................................................................... 37

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Lecturer: Le Hong Dac

A05E

Group 3

Chapter I: EXECUTIVE SUMMARY With around 1,5 million babies born each year, Vietnam is an attractive market for the diaper business. Diaper brands are always competing for each display position on the shelves, especially Huggies, Bobby and Pampers. The demand for high quality baby products is increasing rapidly. Particularly for baby diapers, the growth rate is up to 139%. In addition, comparing to other countries, Vietnam is the top country in spending the most in spending on children and is the most active country in saving for the children's future. The Covid-19 pandemic caused the economy to be constrained in many aspects, requiring the company to have a new operation strategy to promote business activities as well as dynamism in production and innovation in customer’s views. Therefore, launching new product lines to help the brand continue to attract and retain customers is essential. In response to the trend of the saturated diaper market in the middle segment and the expansion of the market can only focus on the high-end segment, in December 2020, the company officially launched its High-grade (premium) diapers - Huggies Platinum Nature Made. Up to now, the product is only distributed on Mom and Baby supermarkets such as: Con Cung, KidsPlaza, Bibomart and on the company's main website, fanpage. Now, with the stability of the pandemic situation, the demand for shopping and market activities is gradually restored, this will be a golden time for the company to come up with market penetration marketing strategies for this product line to increase customer awareness.

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Lecturer: Le Hong Dac

A05E

Group 3

Chapter II: OVERVIEW 1. General introduction Corporation: Kimberly-Clark Brand Name: Huggies Business field: Baby and child care Official distributor address: 18th Floor, Etown Central Building, 11 Doan Van Bo, Ward 12, District 4, Ho Chi Minh City, Vietnam.  Vision “No Baby Unhugged”: to ensure all babies get the hugs they need to thrive.  Mission We are the leader in our field. We are evolving into an integral part of every new baby and new parents life.  Brand position Huggies is there to help parents and care about babies, Huggies help to make parents feel a little easier and a lot less daunting and enjoy the journey of being parents.  Slogan: "Nothing hugs like Huggies."

2. Huggies’s history  1872: The Kimberly-Clark Paper Company (abbreviation: K-C) was established.  20th century: The company entered the diaper market, although it has occupied a high position in the market, it was quickly overtaken by its competitors.  1968: Huggies presented disposable diapers and baby wipes to the market for the first time.  1978: Huggies replaced the Kimbies brand of the same company. K-C then relaunched the Huggies Baby Shaped diaper with elastic in the diaper leg to prevent reflux and has received a positive response from consumers.  1985: For the first time, Huggies achieved the top spot in its product.  1988: First commercialization of Huggies Pull - Ups. At the end of the year, all diapers Huggies were adapted to baby sex.  1993: Huggies products became America's top sales diapers.

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Lecturer: Le Hong Dac

A05E

Group 3

 1997: Kimberly Clarks introduced Huggies for the first time in Vietnam and almost immediately, Huggies won the trust of consumers.  2000: All diapers of Huggies were made thin.  2003: Huggies successfully researched the pads - allowing mothers to change diapers everywhere while ensuring the hygiene of their babies.  2009: Huggies was the first brand in the market to provide convenient and economical Huggies Dry Pant diapers for moms.  4/2009: Huggies Dry Pant has acquired 90% of the market share in the diaper industry.  5/2011: The first diaper production machine was installed at the Kimberly-Clark Binh Duong factory. Many outstanding products such as Huggies Dry and Huggies Dry Pants were quickly favored and became one of the leading brands in Vietnam.

3. Foundation and competitive advantage  Foundation Huggies is a reputable diaper brand of Kimberly-Clark originating in the United States. In 1978, K-C launched "Huggies Diapers" and quickly became a popular product in America. Over time, Huggies have built the satisfaction and trust of mothers from over 175 countries.  Competitive advantage Huggies first appeared in Vietnam in 1997 and until now, it is known as one of the leading brands of diapers when receiving the trust of many Vietnamese mothers. Huggies is the brand most recommendation by pediatricians for babies and young children.

4. The product line of Huggies Huggies diapers are developed and manufactured with absolute care to deliver a top quality. Products are available and can easily be purchased from resellers, supermarkets and e-commerce websites all over Vietnam. The Huggies product line includes:  Baby diapers: Newborn diapers, sticky diapers, super premium sticky diapers, pants diapers, super premium pants diapers, GoodNites night diapers, Huggies Platinum and newly launched products Huggies Platinum Nature Made.  Baby wipes.

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Lecturer: Le Hong Dac

A05E

Group 3

Chapter III: OBJECTIVE Maintaining a leading position in the baby diaper market. The brand awareness and usage of products increasing from 77.8% to 82.8%. Increasing the number of distribution channels from 1 (official distributors) to 119 establishments (major supermarkets and official distributors). Sales reaching over 20 million products in the period QIII/2021 - QIII/2022.

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Lecturer: Le Hong Dac

A05E

Group 3

Chapter IV: SITUATION ANALYSIS 1. Market Analysis Vietnam's population as of April 10, 2021 is 97.98 million, of which, urban population accounted for 37.34% of the population. According to estimation, in 2021, the population of Vietnam is expected to increase 830,246 people and reach 98,564,407 people by the beginning of 2022. Natural population growth is forecast to be positive as the number of births will exceed the number of decease up to 912,801 people. Each year, Vietnam has an average of 1.5 million new babies born each year, or about 4,100 babies per day. It is estimated that in 2021 there will be about 4,234 children born on average each day. With the raise in the annual birth rate, the demand for high quality baby products is increasing rapidly. According to research by Nielsen Vietnam in 2013 also showed that the growth rate of for baby diapers was up to 139%. According to Kantar Worldpanel, in the group of families with children aged 0-3 years in Ho Chi Minh City and Hanoi, on average, each household consumes about 58 diapers per month with the frequency of purchase every 3 weeks. Assuming, only counting the number of consumption for 1.5 million babies born each year, the capacity for this market is huge. Therefore, not only more and more new businesses are entering this field, but even businesses that have firmly established themselves in the market are constantly investing in technology and factories in an effort to consolidate and expand the market part.

Survey results of consumption market shares of diaper brands in HCMC supermarkets. Source: Survey results

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Lecturer: Le Hong Dac

A05E

Group 3

2. SWOT Analysis O-OPPORTUNITIES 1. Strong potential in online growth of its products. 2. Increasing customer preference for organic and natural care products. 3. The rising importance of emerging markets, and the increasing presence. 4. Acquisitions and alliances should help the company to expand its global business portfolio. S-STRENGTHS STRATEGY S-O Continue to invest in S1,2 O1,2,3 innovation and product Developing brand identity marketing. along with many activities to Has over 40,000 employees, attract customers. is listed among top 500 most S5 O2,4 successful companies and Focus on developing has been presented in 175 environmentally friendly countries. products. Taken responsible for providing product donations, cooperating contributions and volunteering for variety of disasters which have taken place around the world. Heavily invested in sustainability, products with sustainable natural fiber, recycling of packaging etc. W-WEAKNESS STRATEGY W-O Intense competition means W1,2 O1,3,4 limited market share Online business deployment, growth. pages own-brand sales, Fake products sold under together with incentives to its brand name lead to attract customers. brand dilution.

SWOT

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2.

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1.

2.

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T-THREATS 1. Intense competition among FMCG companies to gain market share in consolidated markets. 2. Threat from private labels which are cheaper than Huggies.

STRATEGY S-T S1,2 T1,2 Put a strong emphasis on marketing to build brands and increase competitiveness.

STRATEGY W-T W1,2 T1,2 1. Limit counterfeit products by giving customers warning measures and instructions to detect counterfeit products. 2. Ensure stability and propose strategies to reduce input costs and boost revenue.

Lecturer: Le Hong Dac

A05E

Group 3

Chapter V: STP ANALYSIS 1. Market Segments CRITERIA CLASSIFICATION

18-22

Age

23-41

42-56

6-14 million VND

Income

14-21 million VND Over 21 million VND

Area

Urban

CHARACTERISTICS Generation Z, not fully financially independent. Not much experience being parent. Decisions are still influenced by people around. Early access to technology. Taste high, pay much attention to quality and buying experience. Generation Y, the average income at this age is 14-21 million dong. Can afford and are willing to pay large fees to invest in children. Pay more attention to quality and price. Highly influenced by the development stages of the society, having a "inertia" level when making buying decisions due to Vietnamese "long-time use and difficult to change" habits, and both having flexibility in spending and ability self-study function through electronic devices. The general taste is not too high. Generation X, difficult access to technology. Income is not stable, buying decisions are greatly influenced by people around. It is very difficult to change the consumption habits of this generation. Willing to pay investments for children but often think very carefully about the actual price and quality. Can afford to pay for premium care products but will not often and heavily influenced by consumers' spending habits. Usually spend more on promotions and bulk product packages that last longer. The income level is more comfortable, often paying more attention to the quality and values that come with the product. Excited and willing to pay for premium products. Taste is high, demanding more in quality, safety level, promotions, after sales and buying experience. Often choose brands with great reputations and purchasing frequency reaches a regular level. Demand for using products for mother and baby care is high, willing to pay big fees for their children. Pay much attention to health benefits, convenience and social issues. High standard of living with high average income.

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Lecturer: Le Hong Dac

Rural

   

 

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



A05E

Group 3

Ineligible to pay for premium care products. Affected greatly from personal income and the cost of the product. Mainly interested in quality. Consumption habits are easy to change, often influenced by promotions.

Selected segment: Age: 23 - 41 Gender: Parents who have been or are about to have a baby. Incomes: average in the range from 6 to 21 million / month may be higher Living area: mainly in big cities and areas with high population density with high investment demand for children such as Ho Chi Minh City, Hanoi, North Central Coast, Southeast, etc. Work: diverse Need: need quality baby care products, easy to buy, easy to use and affordable. The product must be non-irritating and benign for children, with diverse designs, suitable to general tastes. Habit: often buy goods at supermarkets and grocery stores. Easy to be influenced by buying decisions of people around. Willingness to spend on investments for children. Often buy products in the form of bulk, combos with gifts (the habit of buying in bulk to store at home). Hunting promotions. Hobbies: convenient and fast shopping experience. The products are cheap but the quality is still guaranteed. Annual promotions work really well. Nice model. Ready to experience and try a variety of products. Purchase behavior: buy at retail points in the morning 8am-10am and 5pm-9pm. Shopping online. Hunt the deal and learn carefully about the product before making a buying decision. Highly influenced by other users. Purchase barrier: price. The habit of using other products for a long time and difficult to change.

2. Target segment Exploiting young customers (21-28 years old) in urban areas with the tendency to invest more in their children, financial autonomy, self-opinion and product research, less affected by decisions of relatives. Customers at this age often have an average income of 14-21 million, high tastes, require more individuality and often tend to experience new products in search of superiority and difference. Especially effective 11

Lecturer: Le Hong Dac

A05E

Group 3

with the company'...