Building brand for gatsby hair styling wax of mandom corporation in vietnam

TRƯỜNG ĐẠI HỌC MỞ TP. HCM
UNIVERSITÉ LIBRE DE BRUXELLES
HO CHI MINH CITY OPEN UNIVERSITY
SOLVAY BRUSSELS SCHOOL
MBMM5

VÕ XUÂN MINH KHA

BUILDING BRAND
FOR GATSBY – HAIR STYLING WAX
OF MANDOM CORPORATION IN VIETNAM

MASTER PROJECT
MASTER IN BUSINESS & MARKETING MANAGEMENT

Ho Chi Minh City
(2012)


COMMITMENT
This is the project I have created myself base on the knowledge I gained from many
interesting subjects during the Master In Business & Marketing Management course
year 2010 - 2012 of Solvay Brussels School and the Ho Chi Minh City Open
University.
I commit that this project is completed with my high honesty. I’ll fully take
responsibility for any mistakes or incorrect information given in this project.


ACKNOWLEDGEMENTS
Firstly, I 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 Business & Marketing Management course year 2010
– 2012.
Secondly, I would like to send many thanks to my tutor – Professor Bui Thanh
Trang who has provided me a lot in giving guidance, advices and comments on
how to build up an effective brand building plan.
I also want to say thanks to colleagues to support me for clearly understanding
about the male grooming market, market research and even share the time in
working during my studying.
Last but not least, I would like to send my special gratefulness to my family and
my friends who have heartily supported me to successfully complete this project.


TURTOR'S COMMENTS
This project is met the requirement for final project of MBMM program. The authour
has tried the best to study and analyze the market of Hair styling wax to build brand
for GATSBY of MANDOM Corporation (Japanese company) in Vietnam.
The thesis follows a good structure, from the approach of problem to solutions with
reliable statistic from reputation sources. Capability of applying suggested building
brand for GATSBY in practice business is high.
Therefore, I hereby propose this thesis to be presented to the jury’s board.

Dr. Bui Thanh Trang


ABBRIVEATIONS

ATL

Above The Line

BTL

Below The Line

BOD

Board Of Directors

BUMO

Brand Used Most Often users

CEO

Chief Executive Officer

Co.

Corporation

FGD

Focus Group Discussion

F2F

Face to Face

HCMC

Ho Chi Minh City

HS

Hair Styling

IMC

Integrated Marketing Communication

POP

Point of Purchase

POSM

Point of Sales Materials

PR

Public Relations

P1Y

Past 1 Year users

P3M

Past 3 Months users

REF

Reference

SWOT

Strength/ Weakness/ Opportunity/ Threat

TOM

Top of Mind

T2B

Top 2 Box

TV

Television

WTO

World Trade Organization


THE TABLE OF FIGURES
Figure 2.1: How brands create value ........................................................................ 5
Figure 2.2: Brand Management Model ..................................................................... 7
Figure 3.1: Population of Vietnam .......................................................................... 11
Figure 3.2: GDP growth of Vietnam ........................................................................ 12

Figure 3.3: Vietnamese GDP per capital ................................................................ 12
Figure 3.4: Hair styling brand positioning chart ................................................... 16
Figure 4.1: Research framework ............................................................................. 18
Figure 4.2: The hair styling category...................................................................... 20
Figure 4.3: Starting age of hair styling wax using................................................. 21
Figure 4.4: Sources of styling wax awareness ...................................................... 22
Figure 4.5: Triggers to try styling wax ................................................................... 22
Figure 4.6: Occasion to use styling wax ................................................................ 23
Figure 4.7: Styling Wax Brand Awareness ............................................................ 24
Figure 4.8: Styling Wax Brand Awareness by Group ............................................ 25
Figure 4.9: Styling Wax Brands Sources of Awareness ....................................... 26
Figure 4.10: Brand Funnel ....................................................................................... 27
Figure 4.11: Brand satisfaction ............................................................................... 28
Figure 4.12: Brand Preference ................................................................................ 28
Figure 4.13: Key purchasing factors - Mean score ............................................... 29
Figure 4.14: Brand Associations ............................................................................ 30
Figure 4.15: Brand Imagery ..................................................................................... 31


THE TABLE OF CONTENTS
EXECUTIVE SUMMARY ............................................................................................. 1
CHAPTER I: INTRODUCTION .................................................................................... 3
1.1Rational of the project ..........................................................................................3
1.2 Project objective..................................................................................................3
1.3 Scope and limitation of project ............................................................................4
1.4 Research methodology .......................................................................................4
1.5 Project structure ..................................................................................................4
CHAPTER II: LITERATURE REVIEW ......................................................................... 5
2.1 What is a brand? .................................................................................................5
2.2 How brands create value ....................................................................................5

2.3 Brand building process .......................................................................................6
2.4 What is Branding?...............................................................................................8
CHAPTER III: MARKET ANALYSIS ........................................................................... 9
3.1 Internal environment ...........................................................................................9
3.1.1 MANDOM Corporation .................................................................................9
3.1.2 About GATSBY brand ...................................................................................9
3.2 External environment ........................................................................................ 10
3.2.1 PESTEL Analysis ........................................................................................ 10
3.2.1.1 Political factors ..................................................................................... 10
3.2.1.2 Economic factors .................................................................................. 10
3.2.1.3 Social factors ........................................................................................ 13
3.2.1.4 Technology factors ............................................................................... 13
3.2.1.5 Environment factors .............................................................................. 13
3.2.1.6 Legal factors ......................................................................................... 13
3.2.2 Competition................................................................................................. 14
3.3 Consumer environment ..................................................................................... 16
CHAPTER IV: MARKET RESEARCH AND FINDINGS ............................................ 18
4.1 Research objectives .......................................................................................... 18
4.2 Research framework ......................................................................................... 18


4.3 Research methodology .....................................................................................19
4.4 Sample size ...................................................................................................... 19
4.5 Data collection .................................................................................................. 19
4.5.1 Exploratory stage ........................................................................................ 19
4.5.2 Descriptive stage ........................................................................................ 20
4.3 Research results and findings ........................................................................... 20
4.3.1 Main findings in Hair styling category and position of wax .......................... 20
4.3.2 Snapshots about styling wax market .......................................................... 21
4.3.3 Styling wax brand awareness and usage ................................................... 24

4.3.4Styling wax purchase habit .......................................................................... 29
4.3.5 Styling wax brand imageries ....................................................................... 29
4.4 SWOT Analysis ................................................................................................. 32
4.4.1 Strength ...................................................................................................... 32
4.4.2 Weakness ................................................................................................... 32
4.4.3 Opportunities .............................................................................................. 33
4.4.4 Threats ....................................................................................................... 33
CHAPTER V: CONCLUSION AND RECOMMENDATIONS ..................................... 35
5.1 Conclusion ........................................................................................................ 35
5.2 Recommendations ............................................................................................ 35
5.2.1 Marketing goals and objective .................................................................... 35
5.2.2 Brand strategy ............................................................................................ 35
5.2.2.1 Target consumers ................................................................................. 36
5.2.2.2 Brand positioning .................................................................................. 37
5.2.2.3 Product strategy ................................................................................... 37
5.2.2.4 Distribution strategy .............................................................................. 37
5.2.2.5 Pricing strategy ..................................................................................... 38
5.3 Brand management .......................................................................................... 38
5.4 Integrated marketing communication strategy in 2012 ...................................... 39
5.4.1 Communication target ................................................................................. 39


5.4.2 Communication objective ............................................................................39
5.4.3 Communication message ........................................................................... 40
5.4.4 Communication activities ............................................................................ 40
5.5 Recommendation for implementation and monitoring marketing activities ....... 41
5.5.1 Marketing schedules ................................................................................... 41
5.5.2 Marketing budget ........................................................................................ 42
5.5.3 Post check .................................................................................................. 42
REFERRENCES ........................................................................................................ 43

APPENDIX 1: FOCUS GROUP DISCUSSION GUIDELINE ..................................... 44
APPENDIX 2: QUESTIONNAIRES FOR STYLING WAX PROJECT ....................... 48
APPENDIX 3: SHOWCARD PHOTOS OF STYLING WAX BRAND ........................ 67
APPENDIX 4: STYLING WAX PRICE LIST IN VIETNAM MARKET ........................ 69


1

EXECUTIVE SUMMARY
Hair styling wax is quite new in Vietnam market even though other hair styling
products such as foam, gel, cream…) are popular and high potential to expand in
future amongst male target.
With the young & growing population, Vietnam has potential for investors in the
personal care industry. Especially with the growing male grooming market, it is
attractive for many players including Global Groups such as: Unilever (Clear Men,
Rexona, Vaseline, Axe…), Unza (Romano), Rohto (Oxy), BDF Bieersdorf (Nivea)…as
well as Local Corporations e.g.: ICP (X-men), VietCos (Ramus). In hair styling
category, the most popular form is hair gel, following cream and foam while wax has
small share still as current. The products are mostly imported brands: L’Oreal,
GATSBY, Double Rich, etc, except: X-men & Ramus with hair gel type.
With the product’s advantages of wax, the growing of Vietnamese male grooming
market and the explosion of communication media channels, it is expected the growth
of styling wax share speedily.
To capture this opportunity, MANDOM Co.,in Thailand decides to push up the
communication for wax styling products of GATSBY brand at the 1 st step to set up the
Brand Identity for fully entering Vietnam market with the whole male grooming
category later on.
The research has been carried out examine the current brand health of GATSBY
amongst young male target, identify the SWOT of GATSBY and find out the
consumer’ insight. That would help GATSBY to penetrate and exploit its market share

with the well marketing strategies.
The findings for GATSBY are quite favorable as it is perceived as No.1 brand in
styling wax currently however the penetration is low still. Hence, GATSBY needs to
improve the brand awareness, providing products understanding in the 1st stage as


2

well as building up the brand campaign for long-term plan. In another hand, GATSBY
needs to be improved in terms of “professional” and “high class/ luxurious” image to
win over the competitor.
The research has proposed a brand management to be the framework for marketing
strategy of GATSBY in the period 2012 – 2014 as well as an integrated marketing
plan in 2012 to achieve 400,000 units sold as marketing goal.


3

CHAPTER I: INTRODUCTION
1.1Rational of the project
A strong brand is able to help a company differentiate itself from its rivals, 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 is essential if a firm wants to achieve sustained success,
especially when competition is increasingly intense and product differentiation
becomes unclear.
So that, building brand is an important role in the marketing plan for a company when
develop its business in market.
About MANDOM Corporation, this is a leading corporation in Men’s & Ladies’
toiletries & cosmetics with wide products line-up including Hair care, Styling & Facial

care, Body care, deodorant. In Hair Styling (HS), MANDOM has reputed GATSBY
brand. GASTBY is No. 1 HS brand in Japan, Indonesia, Hongkong and Singapore &
No. 2 brand in Malaysia, Thailand & Korea.
In Vietnam, GATSBY officially entered market since September 2009 through the
distributor DKSH Corporation but there is no any brand communication done yet.
Vietnam has perceived as a potential market with increasing wealthy trends and
young population who are open for new things, extrovert & adaptive for modern
lifestyles. So that the plan to building brand for GATSBY is being considered as the
key activities to develop the market share of GATSBY in Vietnam.
1.2 Project objective
For developing the business plan in Vietnam of MANDOM Corporation, the company
is planning to penetrate widen and depth into Vietnam hair styling market with the
product GATSBY hair styling wax.
To support for this plan, the project aims to:
 Analyzing the factors of a cosmetic brand for men especially in the hair styling
wax segment


4

 Building up the marketing plan for the GATSBY brand communication in 3
years (2012 – 2014) to be the No. 1 preference hair styling brand for young
male.
1.3 Scope and limitation of project
The project will analyze the market of styling wax and young male consumers in Ho
Chi Minh City in Sep & Oct 2011 and the results will be assumed to nationwide.
1.4 Research methodology
The research for this project is combined both Qualitative research via Focus Group
Discussion and Quantitative research done by Face-to-face Interview with
Questionnaires to check the brand awareness, brand imagery, brand usage,

attributes and customer’s insight.
1.5 Project structure
This project includes five Chapters and Appendix
 Execution Summary
 Chapter I: Introduction
 Chapter II: Literature Review
 Chapter III: Market Analysis
 Chapter IV: Research Methodology and Findings
 Chapter V: Conclusion and Recommendation
 References
 Appendix


5

CHAPTER II: LITERATURE REVIEW
2.1 What is a brand?
The American Marketing Association (AMA) 1960 defines a brand as a "Name, term,
design, symbol, or any other feature that identifies one seller's good or service as
distinct from those of other sellers.
(Source: cited by Lisa Wood in Brands and Brand Equity: Definition & Management,
“Management Decision” 2000)
2.2 How brands create value
If brand is strong, it is able to help a company differentiate itself from its rivals, stand
out from competition, influence a consumer’s purchase decision in the company’s
favor, build customer loyalty and boost the company’s financial performance. The
following combination model to show how brands create value:
FIGURE 2.1: H OW BRANDS CREATE VALUE

(Source: Keller, K.L “Strategic Brand Management”, Upper Saddle River 2003

and David A.Aaker, “Building Strong Brands”, New York: The Free Press 1995)


6

2.3 Brand building process
Following Martin Roll in the Asian Brand Strategy (2006), there are 6 steps in brand
management model to build, manage and evaluate strong brands including:


Brand Audit (profound understanding based on data, experience and other
insights)



Brand Identity (the strategic charter of the brand)



Brand Strategy (intended direction linked to corporate strategy)



Brand Implementation (the messages and channels of communication)



Brand Equity and Brand Valuation within a brand management driven
boardroom (systematic and organization-wide framework)

7

FIGURE 2.2: B RAND M ANAGEMENT M ODEL


8

2.4 What is Branding?
Branding is the process involved in creating a unique name and image for a product
in the consumers' mind, mainly through advertising campaigns with a consistent
theme. Branding aims to establish a significant and differentiated presence in the
market that attracts and retains loyal customers.
(Source: www.businessdictionary.com)


9

CHAPTER III: MARKET ANALYSIS
3.1 Internal environment
3.1.1 MANDOM Corporation
MANDOM Corporation is a leading corporation in Men’s & Ladies’ toiletries &
cosmetics with wide products line-up including Hair care: styling & color, Fragrance,
Facial care, Body care, Deodorant & Ladies’ Cosmetics. Originated from Japan,
MANDOM Group is now available in Singapore, Thailand, Indonesia, China,
Hongkong, Malaysia, Taiwan, Philippines & Korea to cover the remaining Asian
regions.
Company Mission: Aiming to Provide a Comfortable Lifestyle Supported by Health
and Beauty. In MANDOM opinion, contributions to a comfortable life can be achieved
by creating valuable and attractive products or services that appeal to the consumers'

sense of beauty, and by acquiring as many customers as possible. MANDOM aims,
above all, to maximize consumer satisfaction.
3.1.2 About GATSBY brand
Amongst variety product line-ups, MANDOM Corporation has reputed GATSBY
brand. Ever since first going on sale in 1978, GATSBY has been accepted by young
generations as the men’s grooming brand which always create and propose the latest
trend at each era. Even as times change, GATSBY continues to appeal to young men
as the standard in men’s grooming cosmetics. Retaining high levels of recognition,
trust and a sense of comfort, GATSBY has established itself as the leading men’s
cosmetics brand in Japan and Asia.
In Hair Styling category, GASTBY is No. 1 Hair styling brand in Japan, Indonesia,
Hongkong and Singapore & No. 2 brand in Malaysia, Thailand & Korea.
In Vietnam, GATSBY officially entered market since September 2009 through the
distributor - DKSH Corporation but there is no any branda communication done yet.
Vietnam is perceived as potential market with increasing wealthy trends and young
population, so that MANDOM Corporation (Thailand) is considering investing into


10

Vietnam to build up the GATSBY brand officially in male grooming category. Amongst
variety products for male, the GATSBY hair styling wax is the chosen brand to
penetrate deeply and grow in Vietnam male grooming market. The goal is to build up
GASTBY as the leading brand in hair styling category for male. Above all, it is critical
to find the strong positioning for GATSBY brand.
3.2 External environment
3.2.1 PESTEL Analysis
3.2.1.1 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. 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.
3.2.1.2 Economic factors
According to the CIA World Factbook, Vietnam population is estimated to be over 90
million of which half are men. The annual population growth rate of Vietnam is about
1.08%. 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.


11

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 companies especially personal care products which
were in the past considered as “luxury” products.
FIGURE 3.1: P OPULATION OF V IETNAM

Population of Vietnam

Population (million people)

100
95
89.6

90
85
80

78.8

79.9

81.1

81.6

82.7

83.5

84.4

85.3

86.1

90.5

87.0

75
70
65
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

(Source: The CIA World Factbook, the information is accurate as of Jan 1, 2011)


12

FIGURE 3.2: GDP GROWTH OF V IETNAM

GDP - Real growth rate

GDP (Real growth…

10
8.2

8.5

8.5

8
6

5.5

4.8

7.2
4.7

7.7

6.8

6.2

6

5.3

4
2
0
1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

(Source: The CIA World Factbook, the information is accurate as of Jan 1, 2011)
FIGURE 3.3: V IETNAMESE GDP PER CAPITAL

GDP per capital (PPP) of Vietnam
3,500

3,100
2,800

3,000

3,100

2,800
2,900

2,500
2,000

GDP per capita (PPP)…

1,850

1,950

2,100

2,500

2,700

2,600

2,250

1,500
1,000
500
0
1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

(Source: The CIA World Factbook, the information is accurate as of Jan 1, 2011)


13

3.2.1.3 Social factors
Social environment
In the past, Vietnamese men seemed to not care for males’ grooming products. They
used bar soap for shampooing and bathing from top to toe or used the same
shampoo and bath shower with their family. They didn’t care about their body smells
and hesitated to use deodorants as perceived it for female. As previous years, the
hair care products were perceived as luxury goods and served for small groups of

well-groomed men.
Since 2001, due to improvement in living conditions from economic growth and due to
culture exchange between Vietnam and other countries, Vietnamese men pay more
attention to their personal appearance by using specific personal care products.
Cultural environment
With the GDP growth as shown in the figure 3.2 and 3.3, 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.
3.2.1.4 Technology factors
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
3.2.1.5 Environment factors
The climate: Vietnam is a tropical country, the environment is polluted. This leads to
the high need of the hair styling products which can maintain the hair shape without
dust-sticky. This is the favorable for wax form amongst hair styling products.
3.2.1.6 Legal factors
There are no any special regulations to bar the development of cosmetics category.
In another hand, following the resolution No. 32/2007/NQ-CP about the requirement
wearing helmet for motorbike user issued and was effective from Dec 15, 2007, it is
favorable for wax products more than other products such as: foam or cream in hair


14

styling category due to its function can maintain and restyle hair shape after using
helmet.
3.2.2 Competition
Men’s hair care showed the fastest growth in 2009 with the biggest contribution for
male purchasing is shampoo. The hair styling gel is the 4th product usage (67%) and

high intention to use (29%) thanks to the living conditions changing and the needs of
target that men need to be gook look, to suitable net working and well presenting
themselves among peers more and more.
In Vietnam, there are many kinds of hair styling types available such as: foam, cream,
mousse, gel, wax, etc. Currently, gel is the most popular type while others are just
minor line-ups and so do Wax.
Zooming into the Wax styling market, the brands available in Vietnam are mostly
imported and distributed through super markets, cosmetics shops in wet markets,
convenient stores, book stores, hair salons, barbers’ shops, etc or hand-carried from
abroad and sold through internet.
Products are targeted for mature men (upper 22 years old) who are working and care
about their perfect looking to build up for career and male teenager (from 16 – 22
years old) who are pupils, students, starting using hair styling products to be cool in
front of their friends, girl friends…
Even though there are many brands in hair styling market, the list down of popular
players considered as main competitors of GATSBY:
3.2.3.1 L’Oreal:
Starting in Vietnam since 2006, famous in cosmetic and hair styling products, L’Oreal
is perceived as products for professional usage. L’Oreal products are available in
variety types: Wax, gel, spray, mousse. In Vietnam, L’Oreal products are popular
through hair salon channels.


15

3.2.3.2 Taft:
Taft is a brand from Schwarzkorf, Henkel – a Germany company, famous in hair care
category. Taft is communicated for teenager recently with many activation and PR
campaign. In market, Taft is focused to promote for Gel and Wax products.
3.2.3.3 Good Look:

Imported from India, Good Look is a brand from Sams Cosmetic. In Vietnam, Good
Look hair styling products are available spray, gel, wax types.
3.2.3.4 New Force:
New Force is a brand of Kensuko Cosmetics Company from Japan, in its country,
New Force is perceived as top 10th males’ grooming brand. In Vietnam, the market is
quite new with New Force still. The products are available in Vietnam through hand
carrying imported and its wax type is popular with Vietnamese men.
3.2.3.5 Ubermen:
A brand from Tohtonku Co. , Malaysia, Ubermen is distributed in Vietnam through
Trade Wind Corporation – Trading distributors. In Vietnam, Ubermen is available with
variety male grooming products: shampoo, shower gel, hair styling wax…
3.2.3.6 VO5:
VO5 is a famous brand in shampoo and condition treatment in the world. In Vietnam,
VO5 is perceived somewhat as a product for women hair care however it is good
chance to let VO5 (wax styling for men) beloved and distributed through the hair
salons system.


16

FIGURE 3.4: H AIR STYLING BRAND POSITIONING CHART
(Positioning following price & target consumers)

3.3 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.