Lifebuoy Hand Sanitizer Situation Analysis Case PDF

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SITUATION ANALYSIS REPORT LIFEBUOY HAND SANITIZER MKTG1205 – MARKETING PRINCIPLE Semester C – 2021 Class: Group 10 – Thursday, 8 a.m to 11 a.m Lecturer: Ms Sang Hua Team: 6 Word count: 4597 words TEAM MEMBERS: Nguyen Phung Tuyet Nhi – s3891657 Mirco environment Le Nguyen Phuc Tuong – s391174 Targeting + Conclusion Huynh Le Bao Tran – s3914430 Positioning + Differentiation Nguyen Duc Vinh – s3911756 SWOT analysis Nguyen Trong Nhan – s3911738 Marco environment Bui Hoang Dang Khoa – s3891432 Introduction + Segmentation

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TABLE OF CONTENT

I.

INTRODUCTION.................................................................................................2 1. Company description...................................................................................2 2. Product description......................................................................................2

II.

MARKET ENVIRONMENT.................................................................................2 1. Micro environment..........................................................................................2 1.1. Marketing intermediaries 1.2. Customers 1.3. Competitors 1.4. Public 2. Macro environment........................................................................................4 2.1. Demographics 2.2. Economic 2.3. Natural environment 2.4. Technology 2.5. Culture environment 2.6. Political

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III.

SWOT ANALYSIS...............................................................................................6 1. Strenghts 2. Weakness 3. Opportunites 4. Weakness

IV.

CUSTOMER-DRIVEN MARKETING STRATEGY (STDP).................................7 1.

Segmentation

2. 3. 4.

Targeting Differentiation Positioning

V.

CONCLUSION....................................................................................................12

VI.

REFERENCE......................................................................................................12

VII.

APPENDICES.....................................................................................................16

I. INTRODUCTION COMPANY DESCRIPTION

1.1 Company’s information Unilever Vietnam is one of Vietnam's most successful FMCG companies. According to Vietnam Credit, the company is one of the top three most preferred brand owners in Vietnam's urban and rural areas (Vietnam Credit 2021). They possess a number of well-known brands in three primary categories, including home care, personal care, and food goods. In 1995, the company entered the Vietnamese market. Unilever's 25-year journey has resulted in iconic brands such as OMO, Lifebuoy, Knorr, Sunsilk, and Clear being household names in Vietnam (Unilever Vietnam n.d). 1.2 Mission Statment For customers: To satisfy people's basic nutritional, hygienic, and personal care needs with products to make them feel well, look good, and get something out of life for a suitable price (Young, J 2017). For employees: Devoted to creating a safe and happy work environment, supporting people's physical, mental, and emotional well-being, and assisting them in achieving their particular goals (Unilever 2021). For society: "The Plastic Reborn ". Unilever believes that through the campaign to increase awareness and encourage people to work together to protect the environment (Unilever Vietnam 2021). 1. Product Description In the face of the complicated development of the covid-19 pandemic, one of the ways to protect health is to wash hands properly and often. Lifebuoy launches a product that is gel hand sanitizer, which is an effective solution for people to wash their hands at any time. According to Kantar World Panel (2021), Lifebuoy is one of the top 10 most preferred brand owners in Vietnam's urban and rural areas in the Health and Beauty sector. 2.1 Market share According to Passport (2021), in 2020, Unilever Vietnam has consistently had the largest retail value market share of mass beauty and personal care market sales, with a market share of 29 percent (Appendix 1). Furthermore, Lifebuoy accounted for the highest share of total brand is 8 percent (Appendix 2). 2.2 Brand awareness Lifebuoy invests a significant amount of money on marketing to create meaningful projects. Especially in the pandemic, Lifebuoy made a campaign called “Protecting Vietnam from covid-19, is in your hand”. The meaningful message from Lifebuoy has reached everyone from children to the elderly, raising awareness of hand washing to protect health. II. MARKET ENVIRONMENT 1.

Micro environment

1.1 Marketing Intermediaries a. Reseller

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Lifebuoy's hand sanitizers are extensively supplied through current distribution channels such as supermarkets, convenience stores, and mini-marts. Pursuant to Deloitte (2019), supermarket chains account for the biggest percentage of customers (66%) (Appendix 3). In addition, Lifebuoy is ranked 3rd and 5th in urban and rural areas, respectively, in the Kantar Brand Footprint ranking (2020). b. Marketing service agency

Lifebuoy collaborates with The A List (Vietnam's largest cooperative surfing network KOLS) to release the music video "Lifebuoy has not, Lifebuoy gone," which features two well-known singers Dong Nhi and Ong Cao Thang. In this moment of social separation, everyone being at home means regularly accessing social networks, and Lifebuoy truly grasped the corn at the right time. Quan AP (Vietnamese singer) garnered over 49,000 likes, 58,000 comments, and 11,300 shares during his broadcast (The Influencer). These figures demonstrate that Lifebuoy is getting better at reaching out to clients. Lifebuoy and other KOLS covered the song in various styles to promote the campaign. Finally, the relationship with KOLs propelled the campaign to the 8th position in the BIS (Buzzmetrics social media rankings) with 300,000 interactive buzzes. According to Buzzmetrics (2021), these initiatives actually assisted Lifebuoy in increasing its viral score to 0.78 (Appendix 4), indicating that more and more users are becoming aware of Lifebuoy's products. 1.2 Customers

Consumer market: Lifebuoy is a hygiene product aimed at everyone, with the objective "For a healthier Vietnam" (Lifebuoy Vietnam) and a range of smells to provide customers with additional options. Lifebuoy primarily targets children with its "help children turn 5" campaign (Lifebuoy Vietnam), as these are the most susceptible to infection. Lifebuoy hand sanitizers eliminate 99.9% of bacteria in seconds, protecting youngsters from germs. When a difficult covid pandemic occurs, hand sanitizer is an incredibly important product that must be used on a daily basis. Lifebuoy has added vitamin E with moisturizing properties to help prevent dry hands when exposed to alcohol on a regular basis, following this trend (Lifebuoy Vietnam). 1.3 Competitors

a. Direct competitors In 2020, lifebuoy holds 3rd place in Kantar's most chosen FMCG brand ranking. In addition, Lifebuoy is still facing competition from the domestic market. In 2020, Lixco company launched the On1 hand sanitizer line with natural ingredients, thanks to the newly launched product, it helped the company's revenue increase by more than 5% compared to the plan (Lixco Annual Report 2020, page 6). On1 hand, sanitizer quickly reaches consumers thanks to its affordable price, a 500ml bottle is priced at 50,000 VND (Shopee Vietnam). Meanwhile, with the same capacity, Lifebuoy has a higher selling price of 64,000 VND for 1 bottle of hand sanitizer (Shopee Vietnam). Not only at affordable prices, but On1 also combines natural ingredients to create 5 different scents (On1 Vietnam), helping consumers, especially housewives, have more Lots of fresh options. b. Indirect competitors In addition, lifebuoy must compete with a number of other FMCG items. The Dettol brand, which is regarded as the world's number one germicidal brand (Vietnam Plus) has introduced antibacterial wet wipes. It's tough to refute this product's convenience, as it allows users to clean both their hands and the surfaces they come into contact with. The unique feature of this product is that it is fully alcohol-free while killing 99.9% of microorganisms (Dettol Vietnam). 3

1.4 Publics

a. General public In 2017, Kantar Worldpanel announced Lifebuoy was one of the five most popular Unilever brands in the health and beauty care category in both urban and rural Vietnam. Since 2008, Unilever Vietnam Foundation has cooperated with the Ministry of Health to celebrate “Global Handwashing Day” with soap with the goal of reducing the risk of disease spread and raising awareness of the importance of hand washing. Through the ceremony, the Lifebuoy brand committed to taking action to increase the rate of people washing their hands regularly. Lifebuoy has extended their importance in people's lives Lifebuoy successfully launched the Infection change system campaign in 2019 with the support of Google technology, which lets provinces to report the epidemic state with pinpoint accuracy. Through Warc, every month, 3.5 million mothers are forewarned about sickness as a result of this campaign. This campaign won a Gold cup for ‘Innovation' and ‘Location-based services/targeting’ at Smarties Vietnam 2019. b. Media public

There were 47.65 million Vietnamese users of social media in 2017 and this number is expected to grow to approximately 34.28 million users by 2025. (Appendix 5). According to Statista ( 2021), in Vietnam, around 72 million people actively use social networking platforms, with social network users accounting for two-thirds of the entire population, allowing social networks to become a more popular primary communication between businesses and customers. The fact that Lifebuoy Vietnam's Fanpage (2021) has 275k followers and 273k likes is one of the factors that contributes to Lifebuoy's ability to connect consumers with meaningful marketing. In March 2020, Lifebuoy announced a campaign to film a cover video of the hand washing dance in order to raise funds for the construction of "100 field handwashing stations - For a Healthy Vietnam.". The hashtag of 100 lifebuoy handwashing stations was widely circulated on social networking platforms such as Facebook and Tiktok, attracting 46,000 participants and 70,000 recordings (Advertising Vietnam). Not only were 113 hand washing stations erected as a result of this initiative, but it also raised awareness about the importance of proper hand hygiene in preventing disease. 2. Marco environment 2.1 Demographics Worldometer reported that Vietnam's population is currently about 97 million people, ranked 15th worldwide, of which urban population accounts for 37% and agricultural population accounts for 63%. Besides, in the period 2010-2020, the fertility rate tends to increase slightly from 1.9 to 2.1, which also means that the group of children tends to increase. The increase of this target group will likely lead to an increase in consumer demand, creating a great opportunity for the FMCG sector. Because this is an age that is easily vulnerable to external environmental influences, specifically, there are from 50,000 to 100,000 cases of TCM each year because personal hygiene measures are not really effective. fruit. Through demographic numbers, this is a great potential opportunity for Lifebuoy to develop its brand and promote its mission to the community. 2.2 Economic Since the pandemic Covid 19 occurred, it has had a serious impact on the Vietnamese economy, specifically, GDP has decreased to 2.5% in 2020 (Passport 2021), the unemployment rate has increased slightly to 2.27% in 2020 (Appendix 6). Despite the COVID-19 outbreak, in 2020, the size of the economy at current prices preliminarily reached 6,293.1 trillion VND; GDP per capita attained 64.5 million VND, equivalent to 2,779 USD, an increase of 65 USD compared to 2019 quite low but showing an optimistic background for the Vietnamese economy (Statistical summary book of Vietnam 2020, p1 09)). In particular, the increased proportion of people consuming health products accounts for the consumption of hygiene-related products which has increased since the outbreak of covid 19. This has not stopped promoting antibacterial products to increase suddenly. According to data from Statista (2020) have sanitizer increased by 1065% and hand alone accounts for 96% so Lifebuoy should focus

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on diversified handwashing products to meet market demand (Appendix 7).This shows that users have spent more on hygiene products, which helps Lifebuoy to expand its product distribution scale and open up abundant profits when the epidemic is still complicated and consumption is still high. 1.3. Natural Environment The Ministry of Industry and Trade of Vietnam has announced the amount of plastic waste in Vietnam is about 1.8 million tons of plastic waste each year. According to Statistics, only 10% of that plastic waste is recycled after use. Most of the waste will be buried or discharged directly into the environment. This has had a direct negative impact on the land and water environment. Therefore, Lifebuoy in particular, or Unilever in general has committed to reducing its plastic waste in the following years. For example, Unilever's plastic packaging could be 100% recycled or naturally biodegradable or set a goal to collect and process 600,000 tons of plastic waste per year by 2025. 1.4. Technology In Vietnam, the application of technology to any product is extremely difficult because the technology is still very outdated, has not been invested much, and the product quality is uneven. According to WEF's 2017 global competitiveness ranking, Vietnam ranks 55th out of 134 ranked countries. However, in the last few years, Unilever, more specifically Lifebuoy has had a successful invention of creating Activ Naturol Shield technology. This is a combination of natural substances and the best cleaning technology, its effect is 10 times better protection in just 10 seconds to help the body fight bacteria or pathogens. Products from this technology have no side effects, suitable for all skin types. 2.5. Cultural Environment The report of the World Bank shows that the percentage of Vietnamese people who have good hygiene habits is still very low, only 13% and not often only after "key-moments". The report also indicates that improper hand washing also prevents bacteria from remaining and is the main cause of infection. Also, the difficult situation in the face of a shortage of clean water is up to 30% in schools where mainly soap products are used to wash away bacteria.To alleviate user anxiety, Lifebuoy has introduced a new generation of hand sanitizer with a 10-second use time. When children's awareness of body hygiene is still low, this product is appropriate for them. The use of this new product aids in the removal of bacteria, making it easier for mountainous areas or sanitary works that have not been repaired and have many limitations in accessing water sources. Besides capturing the psychology of consumers who like the mild fragrance of products, lifebuoy has launched many product lines with multi-scents. This affects the psychology of consumers when the target audience is still children and women are the main ones. Culture has a great impact on the consumption process of consumers and in Vietnam too. - Consumption habits and behavior: + In addition to buying at the market or at convenient selling points, Vietnamese consumers also change their buying behavior at supermarkets, convenience stores, etc. In particular, they will take advantage of shopping more often when available promotions. Consumers care more about the safety of the product than the price of the product. In times of price storms, consumers are loyal to brands as well as the type and size of packaging of everyday consumer goods that they often use. + Vietnamese people are who easily accept new and innovative views, have a welcoming attitude to new things as long as these new things are suitable for their way of life and thinking. + They like to use new products, always new, the better with improved quality, even when they don't know a certain product, the problem of promoting the company's products is not too much. many difficulties, because Vietnamese people are very curious, the company when conducting promotion, advertising just needs to stimulate their curiosity, the product will also be successful. + In addition, the company also realizes that Vietnamese people's preferences are very diverse, very suitable for the company's rich product categories, Vietnamese people do not like a particular color, like China likes. Red as the color of happiness, Vietnamese people are generally diverse and do not exclude

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something related to aesthetics, except in cases related to their fine customs and traditions. On the other hand, the company also intends to learn and understand more about these issues when it hires Vietnamese people to work and joint ventures with Vietnamese partners. - On cultural issues: + Religion: Vietnam is a religiously free country, so the coordination and promotion of products are not as strict as some other Asian countries. + The role of the company's target customers in society: Unilever's products are mostly consumer products for family activities such as shampoo, shower gel, toothpaste, soap, etc... This helps us to realize that the company's customers are majority women. Understanding the extremely important role of women in the domestic market in Vietnamese families, therefore, in its product promotion programs, the company focuses on emphasizing that its products The company will always accompany Vietnamese women in taking care of and protecting their family's health. Convenience and good quality products are always the top criteria of women in shopping choices. In addition, the company also focuses its business on young people, who are more independent, liberal and confident than before. They will be the ones to make decisions for most issues in life, including choosing to buy consumer products. 2.6. Political/Legal Environment Since Vietnam joined the WTO, the Government of Vietnam has always encouraged foreign businesses to enter Vietnam, especially in areas where Vietnam has advantages such as labor, natural resources, etc. to help Vietnam in the process of industrialization. Because there is only one Party, Vietnam is a politically stable country, people have a positive perception and opinion about foreign direct investment and value these companies, so building and forming a long-term business strategy in Vietnam is completely grounded. In addition, the company will have a better understanding of the investment law as well as the business environment in Vietnam in general when the company hires local people to work for them, so when forming a business strategy, the main issue is: There are no problems with the company's rule and law, no big obstacles. The only thing that the company has to deal with and be careful about in the law when formulating its strategy is the issue of labor and the regime for employees, because the Vietnamese government is very concerned about this issue and the public. The company has learned lessons from other foreign companies on these issues in Vietnam. Legal system and legal documents: Vietnam's legal system is changing in line with fluctuations and integrating more deeply into the world. Many laws have been introduced in accordance with reality. With the right to freedom of business, the Vietnamese law has the 2005 Enterprise Law and the 2005 Investment Law. This system of laws is being supplemented in accordance with reality. Regulations on product production, brand name, ingredients, product's uses, production date and expiry date, etc. Especially, before the product is circulated on the market, all manufacturers are required to comply with regulations. must be tested by the authorities. In particular, products directly related to human health need to be inspected by the Ministry of Health. III. SWOT ANALYSIS 1. Strenghts ...