develop a communication strategy for celano

HO CHI MINH CITY OPEN UNIVERSITY

UNIVERSITÉ LIBRE DE BRUXELLES

SOLVAY BRUSSELS SCHOOL OF
ECONOMICS & MANAGEMENT

MMCoM9

NGUYEN THI NGOC DUNG
NGUYEN HOANG THANH THUY

DEVELOP A COMMUNICATION
STRATEGY FOR CELANO
MASTER FINAL PROJECT
MASTER IN MARKETING AND COMMUNICATION MANAGEMENT

Ho Chi Minh City
(2016)


1

DECLARATION
We declare that this study does not incorporate without acknowledgement any material
previously submitted for a degree or diploma in any university; and that to be the best of
knowledge it does not contain any material previously published or written by another
person except where due reference is made in the text

Nguyen Thi Ngoc Dung

Nguyen Hoang Thanh Thuy

Master of Marketing and Communication intake 9


2

ACKNOWLEDGEMENT
We would like to express our deepest appreciation to all those who provided us the
possibility to complete this report.
A special gratitude we give to both our practicing tutor - Mr. Le Minh Duc and academic
tutor – Hoang Thi Phuong Thao, for their careful and precious guidance which were
extremely valuable for our study both theoretically and practically.
We are using this opportunity to thank all Facilitators, Coordinators, Classmates and
the numbers of the Postgraduate Office at Open University HCHC and Solvay Business
School for their contribution in assistance and encouragement in completing this project.
Last, but not least, we would like to say thanks to all our classmates and our families
who have given us much encouragement and support during the time we perform this thesis.


3

ACADEMIC

TUTOR

AND

PRACTICAL

APPROVAL SIGNATURE

Academic Tutor: Prof. Hoang Thi Phuong Thao

Practicing tutor: Mr. Le Minh Duc

TUTOR’S

COMMENTS

AND


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Tutor’s comments
It is nice working with Thuy and Dung on this project. The two members have shown
a lot of efforts in order to bring the best results for the project.
In general, both project members have shown their understanding on the flow of how to
solve the marketing problem and how to use the knowledge learned into the whole process.
At the recommendation, Thuy and Dung are quite creative and insightful, taking the
advantage of knowing well the product, which is the target of the project.
Nevertheless, it is needed to have a logical link from all the data to come up with
recommendations, which will make them worthy and reliable. The sampling on the research
needs further validity.
The project team should have given a better timing to provide good opportunity for
adjustment and correction.
I suggest the project to be presented in front of the jury, conditionally that the
presentation is well prepared on selective content.
I am glad that this project is part of Thuy and Dung’s achievement after two years

investing for knowledge to aim at the better career promotion and development.
Good luck to the presentation

Le Minh Duc


5

LIST OF FIGURES/ CHARTS/PICTURES AND TABLES IN REPORT

Figure 1.1

NBO Company Shares of Ice Cream: % Value 2011-2015

Figure 2.1

The communication process

Figure 2.2

Cost effectiveness of three different communication tools at different buyer
readiness stage

Chart 1

Location that customer choose to enjoy ice-cream

Chart 2

Brand awareness about what ice cream is consumed

Chart 3

Customers’ awareness about company produce ice cream

Chart 4

Brand recognition of cone ice cream

Chart 5

Consumers’ favorite brands

Chart 6

Media channel which customers often to see

Chart 7

Customers advocate about ice cream

Table 1

Porter 5 forces analysis

Table 2

Brief of Lap campaign

Table 3

SWOT analysis

Picture 1

SKU of Celano

Picture 2

Banners of Color of Celano campain


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ABSTRACT
The research starts with introduction about Kido. Then we write about problem
statement and set the objectives for research. Besides that we mention about scope and
limitation of research. Research methodoly and structure of project is the last part of chapter
I.
Chapter II is written with some literature reviews, covering all the concepts that
supports fundamentally for setting the strategy. Firstly, some definitions about
communication strategy are extracted from various sources. Though phrasing in different
ways, most of the definition share commonality. Marketing communication mix is another
concept that is mentioned the most when people discuss about communication strategy. The
next part in the review refers Integrated Marketing Communications - the new marketing
communications model and Communication Process Models. To Develop Effective
Marketing Communication, all basic steps must be set well and this is the part flowed in the
literature review.
Chapter III shows firstly market analysis and Brand key of Celano. Secondly, it
analyzes Brand and communication activities in 2015. We based on theories of developing

effective communication process to analyze the process and give comments about the
results. Then, we check customers ‘reaction to find out the current situation. It helps to find
out the key points for setting the communication strategy which is oriented to the customers.
In this part, it explains the process, and displays the data with finding comments.
From all the outcome of the analysis and research, it comes to some suggestion to
improve the communication process.
The appendixes shows the questionnaires for the research


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Table of Contents
DECLARATION
ACKNOWLEDGEMENT
TUTOR COMMENT
ABSTRACT
TABLE OF CONTENT
CHAPTER I – INTRODUCTION ..................................................................................................... 9
1.1

INTRODUCTION ABOUT KIDO COMPANY ............................................................... 9

1.2

PROBLEM STATEMENT .............................................................................................. 11

1.3

RESEARCH OBJECTIVES ............................................................................................ 11

1.4

SCOPE AND LIMITATION OF RESEARCH ............................................................... 11

1.5

RESEARCH METHODOLOGY ..................................................................................... 12
Role of the survey: ................................................................................................................... 12
Objectives: ............................................................................................................................... 12
Expecting deliverables: ............................................................................................................ 12
Collecting data: via Google form to synthesize the result of the questionnaire. ...................... 13

1.6

STRUCTURE OF THE PROJECT .................................................................................. 13

CHAPTER II: LITERATURE REVIEW......................................................................................... 14
2.1

WHAT IS MARKETING COMMUNICATION? ........................................................... 14

2.2

MARKETING COMMUNICATION MIX ..................................................................... 14

2.3

INTEGRATED MARKETING COMMUNICATION .................................................... 15

2.4

THE COMMUNICATION PROCESS ............................................................................ 16

2.5

STEPS IN DEVELOPING EFFECTIVE MARKETING COMMUNICATION ............ 17
2.5.1

Identifying target audience ....................................................................................... 17

2.5.2

Determine Communication Objectives .................................................................... 17

2.5.3

Designing a Message................................................................................................ 17

2.5.4

Select channels ......................................................................................................... 18


8

2.5.5

Establish budget ....................................................................................................... 19

2.5.6

Decide on media mix ............................................................................................... 19

2.5.7

Measure results......................................................................................................... 20

2.6

BRAND AWARENESS .................................................................................................. 20
2.6.1

What is a brand? ....................................................................................................... 20

2.6.2

What is brand awareness? ........................................................................................ 20

CHAPTER III: ANALYSIS OF CURRENT COMMUNICATION STRATEGY OF CELANO .. 22
3.1

MARKET ANALYSIS IN 2015 ...................................................................................... 22
3.1.1

Trends....................................................................................................................... 22

3.1.2

Competitive landscape ............................................................................................. 22

3.1.3

Prospects .................................................................................................................. 23

3.1.4

Porter 5 forces analysis ............................................................................................ 24
CELANO – TARGET BRAND ANALYSIS .................................................................. 25

3.2
3.2.1

Brand key ................................................................................................................. 25

3.2.2

Marketing communication activities at the end 2015 analysis................................. 27

3.2.3

Consumers’ attitude toward communication strategies of ice cream brand ............. 33

3.2.4

SWOT analysis of marketing communication: ........................................................ 38

4.1

4.2

DEVELOP A NEW MARKETING COMMUNICATION STRATEGY FOR CELANO
39
4.1.1

Identifying the target audience: ................................................................................ 39

4.1.2

Determining the communication objectives: ............................................................ 39

4.1.3

Designing a message ................................................................................................ 40

4.1.5

Establishing the budget ............................................................................................ 40

4.1.5

Design on media mix ............................................................................................... 40
OTHER RECOMMENDATIONS ................................................................................... 41

CONCLUSION ................................................................................................................................ 42
REFERENCE ................................................................................................................................... 43


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CHAPTER I – INTRODUCTION

In this chapter, we introduce about Kido company. Then, we write about problem statement.
After that, we give the objectives of our research, scope and limitation of research and
research methodology.

1.1

INTRODUCTION ABOUT KIDO COMPANY
Kido Group, formerly Kinh Do Corporation, was established in 1993 and has

become one of the leading Food & Flavor companies in Vietnam. In its 23-years history,
Kido Group has remained the market leader in confectionery across a wide array of products
such as sponge cake, bread, moon cake, cookie and ice-cream under the Kinh Do brand
name.
Leveraging the existing foundation, Kido Group aims to maintain their market leader
position in ice-cream with two brand names Merino and Celano, yogurt products under the
Well-Yo brand name and expand their product portfolio into the staple food category with
instant noodle, spices, sauces, cooking oil and packaged food under the Dai Gia Dinh brand
name to take care of the Vietnamese kitchen and meet customers’ needs throughout the day.
With a solid financial position and competitive advantages honed in the combination
of well-established distribution channels, manufacturing capability, branding and sales
strategy, KIDO Group is step by step realizing its vision to become the premier Food &
Flavor Company in Vietnam.
At the core of business philosophy is the well-being of the customer, as demonstrated
by the dedication of our founders and people, the quality of our products, and consumers’
confidence in the Kinh Do brands.
Kido Group’s mission is to offer an original and creative product experience that
exceeds consumers’ expectation with our commitment to quality. They are proud to continue
creating happiness for and improve the well-being of our consumers while generating value
for all stakeholders, including consumers, suppliers, partners, employees, and communities.
Above is the brief about Kido Group, here we will give some information about Kido

company – subsidiary of Kido Group.


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Right in 2003 when the concept of M&A was relatively new to most businesses in
Vietnam, Kinh Do impressed the industry with the takeover of Wall's Cream owned by
Unilever, which held more than 50% of cream market share in Vietnam at that time. Then
Kido was established. It is a part of Kinh Do Corporation which has just changed its name to
Kido Group.
After 10 years of operation, the average revenue of the company has been increasing
from 30-40%. Its profit annually increases 40-50%, according to Kido Group. Kido had the
highest growth rate in Kinh Do Corporation.
Kido factory is located on 2.4ha of land in HCM City’s Tay Bac Cu Chi Industrial
Park.
Kido is currently the industry leader with 37% market share in ice cream and more
than 30,000 retail outlets across the country. Impressive achievement that Kido achieved
within difficult economy was a testament to the growth and sustainable development of the
company. KIDO has 2 brands for ice cream: Merino – mass ice cream, Celano – premium ice
cream.
According to Euromonitor 2015 LBN Brand Shares of Ice cream, Merino is top of
the list with 20.2% retail value rsp while Celano is 2nd players with 13.3%.
Figure 1.1
NBO Company Shares of Ice Cream: % Value 2011-2015
% retail value rsp


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Source: Euromonitor International 2015.

1.2

PROBLEM STATEMENT
Eating ice cream has become a popular in Vietnam. With the reasonable prices, the

domestic ice cream market is still controlled by Vietnamese brands. However, the makeup of
the market may be change in the near future. Vietnamese brands have been warned that the
positions may change any time as foreign investors have been flocking to Vietnam. The
foreign brands attract Vietnamese consumers, especially youth, though the imported
products are expensive. As living standards rise, consumer demand for snacks, convenience
and luxury F&B items such as ice cream has increased.
Besides that, foreign brands have experiences and large budget in doing marketing in
other countries. They bring new trends and focus on integrated communication strategy to
attract young consumers. In contrast, Vietnamese ice cream companies do not focus on it;
they concentrate more on traditional communication marketing.
Celano of KIDO company is premium brand ice cream, compete with foreign brands
especially Wall's. Although, Celano also have some activities in integrated communication
recently, they are feeling the pressure from foreign rivals. Market share is more divided. To
keep the market leader position in premium brand, Celano wants to strengthen customers’
relationship, build loyalty so that they can increase the market share and keep the leading
position in premium ice cream.

1.3

RESEARCH OBJECTIVES
This research is to find out current problem in marketing communication strategy of

Celano and customers’ reaction with integrated marketing communication of ice cream
brand. From there, the writers suggest some recommendation for developing an

effectiveness communication strategy that supports the long term operation of company.

1.4

SCOPE AND LIMITATION OF RESEARCH
Due to the limited time, the authors selected Hochiminh city as the main city to do

the research. In which, the target customers will be selected randomly to do the survey.
The research focus at analyzing and evaluating Celano marketing communication
activities in 2015. Because there are many sku in Celano brand, we decided to focus on Cone
which had some activities last year.


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Because the time and budget constraints, the authors just could carry out the research
in Hochiminh city with limit number of survey data.
Finance is confidential information so that we could not find out marketing budget of
Celano. We wrote about it but did not analyze in details.

1.5

RESEARCH METHODOLOGY
In order to get enough data and information for the research, the authors will apply

both quantitative and qualitative method in collecting data. The data is from many sources
including primary and secondary data.
Collection of secondary data: The secondary data are collected by many resources
such as internal information of Kido Company (sales report, products, and results of
campaigns) and many diversity channels (Facebook fanpage, Kido group website).

Collection of primary data:
Questionnaire: The questionnaire applied for respondents (50 samples); focusing on
details so as to get response of people about habit of consumption as well as perception of
brand through marketing communication of Celano and competitors.
Survey has 50 respondents as details:
●

Gender:

Female 72.3%
Male 27.7%

●

Group of age:

15-19: 53.2%
20-25: 46.8%

Role of the survey:
Identifying customer’s reaction with advertising campaigns of Celano as well as
competitors.
Objectives:
Investigating the habit of consumption about ice cream market.
Investigating the perception of the brand Celano and finding what problem in
communication strategy.
Expecting deliverables:
It is expected that the results would give data to deal with the following problems:

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 Habit of consumption: (question 3,4,5) finding out where do customers enjoy
ice cream and do they use different brand?
 Brand awareness: (question 6,7,8,9,10) including brand recognizing, we want
to know position of Celano cone in people’s mind.
 Brand recognition: (question 12,13,14,15) with two different objects about
imagine of brand and deliver message of Celano as well as competitors. Do
target customers recall brand? What did channels or activities impress them
most?
 WOM effectiveness: (question 16,17,18) can Celano create a buzz to have
WOM effectiveness? Are target customers pleased to give comment on
advertising campaigns?
Collecting data: via Google form to synthesize the result of the questionnaire.

1.6

STRUCTURE OF THE PROJECT
Apart from the acknowledgement, abstract, and appendixes, the project is structured

with 4 chapters:
Chapter 1: Introduction
Chapter 2: Literature review
Chapter 3: Analysis of current communication strategy of Celano
Chapter 4: Recommendations


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CHAPTER II: LITERATURE REVIEW

To understand about marketing communications we follow three theories of Kotler,
Keller and Amstrong about Marketing communication mix, Integrated Marketing
Communications, and the Communication Process Models. In additional, we refer some
knowledge from Ukehajdaraj and MSG Experts about Brand Awareness.

2.1

WHAT IS MARKETING COMMUNICATION?
“Marketing communications are the means by which firms attempt to inform,

persuade, and remind consumers – directly or indirectly – about the products and brands they
sell”, (Kotler and Keller, 2012). It presents all information about the company, the brand and
the product from the beginning to the end. It creates the conversation between consumers
and product. It also conveys the message which brand would like to say with other people.
People get familiar with product through marketing communication.
Marketing communications also work for consumers when they show how and why a
product is used, by whom, where and when. Consumers can learn who makes the product
and what the company and brand stand for, and they can get an incentive for trial or use.
“Marketing communications allow companies to link their brands to other people, places,
events, brands, experiences, feelings and things. They can contribute to brand equity – by
establishing the brand in memory and creating a brand image – as well as drive sales and
even affect shareholder value”. (Kotler and Keller, 2012)

2.2

MARKETING COMMUNICATION MIX
The marketing communication mix refers to specific methods which help to promote

product, brand and company to target audiences. According to Kotler and Keller (2012),
there are eight major models of communication:

1. Advertising: Any paid form of nonperson presentation and promotion of ideas,
goods or services by an identified sponsor via print media, broadcast media, network
media, electronic media and display media.
2. Sales promotion: a variety of short-term incentives to encourage trial or purchase of
a product or service.


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3. Events and experiences: Company-sponsored activities and programs designed to
create daily or special brand-related interactions with consumers.
4. Public relations and publicity: a variety of programs directed internally to
employees of the company or externally to consumers, other firms, the government,
and media to promote or protect a company’s image or its individual product
communications.
5. Direct marketing: use of mail, telephone, fax, email, or Internet to communicate
directly with or solicit response or dialogue from specific customers and prospects.
6. Interactive marketing: online activities and programs designed to engage customers
or prospects and directly or indirectly raise awareness, improve image, or elicit sales
of products and services.
7. Word-of-mouth

marketing:

people-to-people

oral,

written

or

electronic

communications that related to the merits or experiences of purchasing or using
products or services.
8. Personal selling: face-to-face interaction with one or more prospective purchases for
the purpose of making presentations, answering questions, and procuring orders.
The product’s styling and price, the shape and color of the package, the salesperson’s
manner and dress, the store decoration, the company’s stationery – all communicate
something to buyers.

2.3

INTEGRATED MARKETING COMMUNICATION
Day by day, everything is changing. People and technologies are changing, too. In

this digital age, consumers communicate with others and receive information from many
sources on their own. Especially young people have much powerful since they are growing
up with the wireless age. It leads to marketing strategies changing. The new marketing
communications model is needed to adapt the changing. It is Integrated Marketing
Communication. Kotler and Amstrong (2012) mentioned that “advertisers are now adding a
broad selection more-specialized and highly targeted media to reach smaller customers
segments with more-personalized, interactive messages.
broadcasting and more narrowcasting”.

Companies are doing less


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Consumers face tons of commercial messages from variety sources. If conflicting
messages come from different sources, they cannot distinguish. Therefore, they are easily
confused company images, brand positions and customer relationships. Integrated
Marketing Communications ensures that all forms of communications and messages are
carefully linked together when delivering to target audience. It brings together all the
company’s messages under one campaign to promote a single, clear and consistent
positioning statement.
Although Integrated Marketing Communications requires a lot of effort it delivers
many benefits. It can create competitive advantage, boost sales and profits, while saving
money, time and stress. Integrated Marketing Communications wraps communications
around customers and helps them move through the various stages of the buying process.
The organization simultaneously consolidates its image, develops a dialogue and nurtures its
relationship with customers.

2.4

THE COMMUNICATION PROCESS
Kotler and Amstrong (2012) present a communication model with nine elements.

Sender and Receiver are represents the major parties in a communication. Major
communication tools are message and media. Four represents major communication
functions: encoding, decoding, response and feedback. The last element in the system is
noise.

Figure 2.1 - The communication process
(Adapted from Kotler and Amstrong, 2012)


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Senders must understand very well what audiences they want to reach and what
response they expect to receive. They must be good at encoding messages so that target
audiences can decode messages like they want. They must convey the message through
media that can reach target audiences. Besides that, they must develop feedback channels to
evaluate the responses.

2.5

STEPS IN DEVELOPING EFFECTIVE MARKETING
COMMUNICATION

2.5.1 Identifying target audience
This is the first step of process. Target audiences are potential buyers, current users,
deciders, influencers. They may be individuals, groups, particular public or the general
public. Marketers must know who they are so that you can decide on what to communicate,
how to communicate, when, where and who will communicate the company’s message.
2.5.2 Determine Communication Objectives
Companies must find out at what stage of buyer-readiness their consumers are
presently in. Therefore, they can design a plan to move the target audience towards a
favorable stage. The six stages that consumers normally go through before buying a product
are – awareness, knowledge, liking, preference, conviction and purchase.
2.5.3 Designing a Message
“Ideally, the message should get attention, hold interest, arouse desire, and obtain
action (a framework known as AIDA model)”, (Kotler and Amstrong, 2012)
The message should be decided on what to say (message content), how to say it
(message structure and format), and who should say it (message source)
Your promotional messages must not only be catchy and hold the consumers’
attention but also compel them to like your product and make a purchase.
a) Message content

“There are three types of appeals: rational, emotional and moral. Rational appeals
relate to the audience's self-interest. They show that the product will produced the desired
benefits. Emotional appeals attempt to stir up either negative or positive emotions that can


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motive purchase. Moral appeals are directed to the audience's sense of what is right and
proper”, ( Kotler and Amstrong, 2012).
b) Message Structure
Kotler and Amstrong (2012) introduced three kinds of it. The first is whether to draw
a conclusion or leave it to the audience. The second is whether to present the strongest
arguments first or last. The last issue is whether to present a one-sided argument or
two-sided argument.
c) Message Format
The message format needs to be strong. In each category of channel, communicators
must decide suitable presentations which are eye-catching, distinctive format and impressive
sounds and voices... Thus consumers can recognize and recall the brands.
d) Message Source
Message should be delivered by attractive or prominent sources. It can achieve
higher attention and recall. However, picking the wrong spokesperson can lead to the bad
and misunderstanding image.
2.5.4 Select channels
Communications channels may be personal communications channels and non
personal (mass) communications channels.
a) Personal communications channels “let two or more people communicate
face-to-face or person-to-audience through a phone, surface mail, or email. They derive their
effectiveness from individualized presentation and feedback and include direct and
interactive marketing, word-of-mouth marketing, and personal selling”, (Kotler and Keller,
2012).

Influence of this channel is really powerful. Buying attitude are easily affected
someone's recommendation. In additional, when message is sending through many people,
the content might be changed a little bit differently.

Because of digital age, people

communicate faster. People share negative information even faster than the positive one.
Thus, in this channel, company should be more careful with the message (content, structure
and format) before spreading it. Reaching the right people is a key.
b) Nonpersonal (mass) communication channels “are directed to more than one
person and include advertising, sales promotion, events and experiences, and public


19

relations”, (Kotler Keller, 2012). They create or reinforce the buyers' leaning towards
product purchase.
c) Integration of communication channels Personal communications have more
impact than mass communication, but mass media channel might stimulate personal
communications. “People interact primarily within their own social groups and acquire ideas
from opinion leaders in their group. Through mass communication directed specifically to
opinion leaders, they can carry on message to others”, Kotler and Keller (2012).
2.5.5 Establish budget
This is one of the most difficult marketing decision is determining how much to
spend on marketing communication. Kotler and Amstrong (2012) describe four methods:
-

Affordable method: setting the promotion budget at the level of management

thinks the company can afford.

-

Percentage of sales method: setting the promotion budget at a certain

percentage of current or forecasted sales or as a percentage of unit sales prices.
-

Competitive-parity method: setting the promotion budget to match

competitors’ outlay.
-

Objective-and-task method: developing the promotion budget by:

(1)

Defining specific promotion objectives

(2)

Determining the task needed to achieve these objectives

(3)

Estimating the costs of performing these tasks. The sum of these costs is the

proposed promotion budget.
2.5.6 Decide on media mix
Each company have different marketing strategies wherein they use several
promotional tools like advertising, sales promotion, public relations and publicity, events

and experiences, direct and interactive marketing, word-of-mouth marketing, personal
selling. Each tool has its own advantage and costs involved. Furthermore, types of product
market, buyer-readiness stage and product life-cycle stage need to be consider. Therefore it
is important for marketer to choose the right marketing communications mix also called as
promotion mix.


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Figure 2.2
Cost effectiveness of
three different
communication
tools at different
buyer readiness
stage
Source: Kotler and
Keller, 2012
2.5.7 Measure results
After implementing the communications plan, marketrs should measure the
effectiveness. They should check by asking target audience whether they recognize or recall
the communication, how many times they saw it, what points they recall, how they felt
about the communication and what their previous and current attitudes toward the company,
brand, and product.

2.6

BRAND AWARENESS

2.6.1 What is a brand?

Ukehajdaraj (2015) mentioned the definition of brand from David Ogilvy:
“The intangible sum of a product’s attributes: its name, packaging, and price, its
history, its reputation, and the way it’s advertised.”
However Ukehajdaraj (2015) prefered another definition from Jeff Bezos, the
founder of Amazon:
“Your brand is what people say about you when you’re not in the room”
2.6.2 What is brand awareness?
Management Study Guide Experts gave the knowldege about Brand awareness:
“It is the probability that consumers are familiar about the life and availability of the
product.


21

Brand awareness includes both brand recognition as well as brand recall. Brand
recognition is the ability of consumer to recognize prior knowledge of brand when they are
asked questions about that brand or when they are shown that specific brand, i.e., the
consumers can clearly differentiate the brand as having being earlier noticed or heard.
While brand recall is the potential of customer to recover a brand from his memory
when given the product class/category, needs satisfied by that category or buying scenario as
a signal.
It is generally easier to recognize a brand rather than recall it from the memory.
There are two types of brand awareness:


Aided awareness- This means that on mentioning the product category, the customers
recognize your brand from the lists of brands shown.



Top of mind awareness (Immediate brand recall)- This means that on mentioning the
product category, the first brand that customer recalls from his mind is your brand.
Building brand awareness is essential for building brand equity. It includes use of

various renowned channels of promotion such as advertising, word of mouth publicity,
social media like blogs, sponsorships, launching events, etc. To create brand awareness, it is
important to create reliable brand image, slogans and taglines. The brand message to be
communicated should also be consistent. Strong brand awareness leads to high sales and
high market share. Brand awareness can be regarded as a means through which consumers
become acquainted and familiar with a brand and recognize that brand.”
Building brand awareness is the process to build the relationship with customer. It is
from the beginning people see your product, know, have the full information, remember,
recognize, buy it and in the end they re-oder it and recall the brand.

Summary: With on knowledge of academic theories that was mentioned above, we
had a general view of a communication strategy and brand awareness. Therefore, we base on
these theories to evaluate how Celano’s campaigns execute.


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CHAPTER III: ANALYSIS OF CURRENT
COMMUNICATION STRATEGY OF CELANO
In this chapter, first we provide market outlook of ice cream to describe the whole
picture of Celano’s position as well as competitive landscape at the present and prospects in
futute. Then, we deeply analyze about product and marketing communication strategy
through two main campains: Lap 2015– Leaking a prize 2015 and Color of Celano. Last but
not least, we proceed a survey to figure out customer’s attitude toward Celano’s campaigns
to identify current situation.

3.1 MARKET ANALYSIS IN 2015
3.1.1 Trends
According to Euromonitor International (2015), ice cream and frozen desserts
recorded a 13% current retail value growth rate in 2015, which was slightly higher than in
2014 mainly due to higher inflation, higher living standards as well as higher disposable
income, which allowed more people to spend on premium ice cream products. From that, we
can recognise the trendy of enjoying premium ice cream increasing in big cities such as Ho
Chi Minh City and Hanoi. People are more willing to pay higher prices especially young
people.
Euromonitor International (2015) also gave the issue about channels. Key
distribution channel was independent small grocers over the review period. However,
modern channels such as supermarkets and hypermarkets were noticed a better performance
due to the increasing trend of shopping in modern channels, especially in big cities.

3.1.2 Competitive landscape
Kinh Do Corp maintained its leading position in ice cream and frozen desserts with
36% and 37% value shares respectively in 2014 and 2015, Euromonitor International
(2015). Besides its strong brands, its nationwide distribution network and a wide range of
products in ice cream are other competitive advantages of company. As Euromonitor


23

International (2015) advised last year, the company not only successfully strengthened its
leading position but also recorded the fastest value growth within the category.
However, Celano - key premium brand from Kinh Do Corp also have many
competitors in the industry. Wall’s is still main competitors with key brand - Cornetto. In
2015, Wall’s ran a large campaign for Cornetto covering all Asia that named World tour
1989 Taylor Swift. Taylor Swift - international music stars as an influencer that helped
Cornetto achieved position in young people’s mind. Besides, many activities to support the

campaign like event “Shake it off”, PR and Social networks also created engage to target
consumers. According to Hong Thao (2015) that event attracted the participation of 1,100
artists and 340,000 votes of the young for the competition in the talent search contest. Fan of
Facebook fanpage increased tripled, interaction raised more than 500% per month and
reached over 40,000 like on a post. Through all of integrated marketing communication,
Cornetto successfully delivered key message: the expression of love.
Last year, we also see the rising number of international brand such as Wall’s,
Häagen-Dazs, New Zealand Natural and Swensen’s. It leads the market more intense. As
Euromonitor International (2015) reported especially in big cities, more consumers are
willing to pay for higher-priced and higher-quality ice cream. Private label and other
value-for-money products remained negligible.
3.1.3 Prospects
Euromonitor International (2015) gave the full prediction about prospects:
“The trend of premiumisation in ice cream and frozen desserts will strengthen in the
country over the forecast period. Especially as Vietnam is expected to become more open in
trading terms, more international brands are likely to enter the market and make competition
even more intense. Besides this, the predicted decline in the import taxation rate will be
another threat to the growth of local players.
The average unit price is set to decline slightly in 2015-2020. Stiff competition
caused by the entrance of many international brands and the expected decline in import tax
are likely to force manufacturers to put efforts into building a more-competitive price
strategy to attract customers.”


24

3.1.4 Porter 5 forces analysis
Table 1: Porter 5 forces analysis
Threat of potential entrants: medium




Countries have FTA with Vietnam, or members in
ASEAN and on-going TPP enjoy lower tariffs
Dairy milk companies expand their market

Bargaining power of
Buyers: strong


Bargaining power of
Suppliers: weak




Manufacturer can
easily switch to a
different supplier
at low cost
KIDO produce
their own product
so it is easy to
manage
capability.

Industry
competitors: strong




Cornetto
(Wall’s) has
strong budget to
build and
sustain its brand
Hagen Dazz,
Baskin Robin,
Fanny, Kit kat
(Nestle) focus
on social media





Young people
always want to try
new things so they
have little brand
loyalty.
They have price
sensitivity. However
they are willing to
pay what they like.
Ice cream is a
seasonal product so
weather influences
ice cream

consumption. In
North Vietnam, in
winter and in South
in rainy season,
people tends to not
eating ice cream

Substitutes: Strong



Traditional desserts are variety.
Korean & Japanese dessert like Pat bingsoo,
Mochi, Matcha is trendy nowadays

After analyzing, we realize that we have three factors to consider. Main buyer is
young people. With intensive competition from direct foreign competitors and substitutes,
they are easy to change loyalty. However they are also Brand Ambassador. We should have
the right communication strategy to get connection with target customer so that we can build
and keep Brand Loyalty.