Allied growth development company help 400 SC a latest generation of broad spectrum fungicide a critical analysis of long term marketing communication campaign proposals

TRƯỜNG ĐẠI HỌC MỞ TP HỒ CHÍ MINH
HO CHI MINH CITY OPEN UNIVERSITY

UNIVERSITY LIBRE DE BRUSSELES
SOLVAY BRUSSELL SCHOOL
ECONOMIC & MANAGEMENT
MMA6

NGUYEN XUAN HUNG
BACH NGOC TUNG

ALLIED GROWTH DEVELOPMENT COMPANY (ADC)
HELP® 400 SC - A LATEST GENERATION OF BROAD
SPECTRUM FUNGICIDE
CRITICAL ANALISYS OF LONG TERM MARKETING
COMMUNICATION CAMPAIGN & PROPOSALS

MASTER PROJECT
MASTER IN MARKETING & ADVERTISING

Tutor’s Name: SERGE BYWALSKI

HOCHIMINH CITY
2013


TRƯỜNG ĐẠI HỌC MỞ TP HỒ CHÍ MINH
HOCHIMINH CITY OPENUNIVERSITY

UNIVERSITY LIBRE DE BRUXELLES
SOLVAY BRUSSELL SCHOOL

ECONOMICS & MANAGEMENT
MMA6

Student’s name: + Nguyen Xuan Hung
+ Bach Ngoc Tung

COMMIMENT TO OPEN UNIVERSITY AND SOLVAY BRUSSELL
SCHOOL

Here by, I commit to HCM Open University & Solvay Brussel School that this final
project in conducted by us under agrrement of ADC company. Some data, table and
figure in this work which only are provided for purpose of supporting this project
will be kept confidential as ADC requirement.

Student‘s signature

Nguyen Xuan Hung
Bach Ngoc Tung


ACKNOWLEDGEMENT

I would like to express my gratitude to all who gave me the possibolity to complete
the final project. Firstly, I want to thank the ADC company who have support me
permission to get the figure, table of conduct survey and use department data to
complete the final project. Basing all information and help, we could have
conducted the final project and more over we understand deeply the performance of
marketing campaign of ADC company and have analisys the proposal later .
I would thank to my tutor, Mr. Serge Bywalski from Solvay Brussel School who
have guidance and encouragement of help to us in the initial time of doing final

project.
We also would thank to my colleagues in MMA 6 during all courses to have shares
some information, some studies in team work and in marketing activities outside.
From that team work activities, we could understand more about practical activities
in all comapnies of marketing and advertising as well.



1

TABLE OF CONTENT

1. INTRODUCTION
1.1 Market overview
1.2 Allied Development Corporation (ADC)
1.3 Competitor Companies
1.4 Competitor product & Help® 400 SC
2. ADVERTISING & COMMUNICATION CAMPAIGN
2.1 IN 2007
2.1.1 Advertising, Communication & Promotion
2.1.2 Merchandising
2.2 IN 2008
2.2.1 Advertising, Communication, Promotion and Merchandising
2.2.2 Help® campaign
2.2.2.1 Activities during the campaign
2.2.2.1 Help® Festival
2.2.2.2 Merchandising contest
2.3 IN 2009
2.3.1 Advertising, Communication, Promotion and Merchandising
2.3.2 Help® campaign

3. ASSESSMENT
3.1 PRODUCT
3.1.1 Market research
3.1.2 Positioning
3.1.3 Segmentation
3.2 PRICE
3.3 PLACE
3.4 PROMOTION
3.4.1 Advertising
3.4.2 Communication message
3.4.3 Merchandising
3.4.4 Help® campaign
3.4.5 TV talk and Demo
3.4.6 Technical seminar and farmer meeting
4. PROPOSALS
4.1 PRODUCT
4.1.1 Market research


2

4.1.2 Positioning
4.1.3 Segmentation
4.2 PRICE
4.3 PLACE
4.4 PROMOTION
4.4.1 Advertising
4.4.1.1 TV commercial
4.4.1.2 Radio commercial
4.4.1.3 Print ads

4.4.2 Merchandising
4.4.3 Public relation
4.4.3.1 TV talk
4.4.3.2 Newspaper
4.4.4 Direct mailing
4.4.5 Farmer meeting & Demo
4.4.6 POSM
4.4.7 Budget


3

1. INTRODUCTION
1.1 MARKET OVERVIEW
Vietnam has 7.2 mio ha rice, 70% is belong to Mekong Delta which is key planted
area for export; the North and the Central is for domestic consumption within the
territory only.
There are 2 main rice crops per year in Mekong Delta, winter – spring season (Nov
– Mar) and summer – autumn season (Apr – Aug).
Blast usually occurs in winter – spring season, other diseases are almost happen in
summer – autumn season.
Fungicide is a key drive of growth in agrochemical industry on rice and other crops
as well, rice accounted for almost 40 – 50 % consumption of total fungicide value.
Fungicide accounted for 50 % crop protection costs (US$ 100/ha) on rice; farmers
have to apply fungicide 4 - 6 times per crop to control blast, yellow leaf, sheath
blight and dirty panicle of which 2 times for blast. They have to tank mix 2
fungicides to control ALL rice diseases which almost happen at the same time.
Broad spectrum products may control most of diseases except blast which is
required a specialist blasticide. In farmers’ perception, broad spectrum fungicides
are not so effective compared to a specialist one for whatever diseases.

Annual Total
(VND/Ha)

19,574,830

5,654,565

2,834,273

2,169,898

610,249

40,182

29%
of Input

50%
of CPC

38%
of CPC

11%
of CPC

1%
of CPC

Winter Spring

Summer Fall

Others

Source: Pivotal Jan 2008

Agricultural Input

CPC

Fungicide

Insecticide

Herbicide
(selective)

Herbicide (nonselective)

Others

8,688,962

2,372,038

1,299,380

853,593

251,932

53,450

Summer Fall

8,998,890

2,567,291

1,270,983

992,187

290,829

50,845

Winter Spring

8,676,897

2,571,052

1,282,091

996,143

277,443

52,501


4

Market Value and Market Share in 2007 – 2012
2007

Rice Fun
by

Val_US$

company

($1,000)

Syngenta

2008

2009

Val_US$
M/S (%)

($1,000)

2010

Val_US$
M/S (%)

($1,000)

2011

Val_US$
M/S (%)

($1,000)

2012

Val_US$
M/S (%)

Val_US$

($1,000)

M/S (%)

($1,000)

M/S (%)

33,604

36.23%

44,878

32.10%

43,484

26.77%

55,130

29.91%

62,182

30.80%

67,190

31.06%

ADC

3,777

4.07%

5,222

3.73%

9,738

5.99%

11,391

6.18%

11,583

5.74%

14,151

5.78%

Others

55,375

59.70%

89714

64.71%

109,232

67.24%

117,818

63.91%

128,150

63.46%

134,960

63.16%

Source: General Custom Office & In desk research

For all players, farmer meeting, demonstration, TV talk, TV commercial, radio
commercial, merchandising are popular communication activities. Adverting on TV
is the most effective and expensive tool, it’s a “heavy weapon” of market leader.

Most useful sources to get info (Source: AGRI insight - Kynatec Oct 2007)

Other farmers and neighbors
TV farmer programs
TV ads
Farmer meetings
Technicians/PPD
Retailers & dealers

Most useful

Useful

All values in %
84

21
34

16
34

7
28

19

16

60

16

Demo trials
Posters & leaflets
Farmer radio programs
Radio ads

7

16

5

14

0

12

1
12
10

Papers/magazines

12
10
0

Agriculture books
-100
-80
-60
1.2 ALLIED DEVELOPMENT CORPORATION
(ADC)-40

0

-20

0

ADC was set up in 9.9.1999. In 2007, they employed more than 300 people, ADC
set up a sales network of 80 whole sellers and 1,200 retailers throughout the

20

40


5

country. Until now, they have expanded their business into fertilizers, seeds,
pharmaceutical, aqua-feed. Their vision is Bringing Fourth Goodness to their
partners and farmers, which reflect through the date ADC was established 9.9.99.
1.3 COMPETITOR COMPANIES
Syngenta (Swiss company) is a market leader. They dominated rice fungicide
market (36.2 % market share in 2007)
There was about 100 crop protection suppliers in Vietnam, Chinese suppliers took
37.8% market share of rice fungicide, they supplied to many local distributors; most
of Chinese suppliers did not have an office in Vietnam.
There was a big gap between Syngenta and the rest of players. ADC ranked 2 nd in
rice fungicide market although its share was only 4% in 2007.
1.4 COMPETITOR PRODUCTS & HELP® 400 SC
Tilt® Super and Filia™ were a key drive for growth of Syngenta not only for
fungicide but the whole product portfolio as well.
Tilt® Super is a rice fungicide for controlling dirty panicle, sheath blight, yellow
leaf, it make more filled grains which bring bumper harvest as their positioning.
Filia™ is a specialist blasticide, it effectively control rice blast and make strong

plants.
Syngenta recommended tank mix Tilt® Super and Filia™ to control ALL diseases
Help® is a latest generation of broad spectrum fungicide, it effectively control rice
blast and other diseases. By launching Help®, ADC expected to open a new
segment for a broad spectrum fungicide, effectively control ALL diseases including
blast. They positioned it as a latest fungicide generation which effectively control
rice blast, dirty panicle, yellow leaf and sheath blight, increase yield and quality
thanks to greening effects
Help® would be enable farmers reduce 50% fungicide application and cut half of
application costs compared to Tilt® Super mix with Filia™; besides, Help®
brought greening effects to rice plants, more foliage green is more yield and better
grains quality in both farmers’ perception and scientists’ study.
By launching Help®, ADC wanted to build up Help® as a market standard for rice
fungicide, open a new segment for a real/ effective broad spectrum fungicide. They
positioned it as a latest generation of rice fungicide which effectively control rice
blast, dirty panicle, yellow leaf and sheath blight with results are more than
expectation of farmers


6

Products’ value and market share in rice fungicide segment

Rice Fun
by product
Tilt®
Super
Filia™
Help®

2007
Val_US$
($1,000)
M/S (%)

2008
Val_US$
($1,000)

M/S (%)

2009
Val_US$
($1,000)
M/S (%)

2010
Val_US$
($1,000)
M/S (%)

2011
Val_US$
($1,000)
M/S (%)

2012
Val_US$
($1,000)
M/S (%)

21,553

23.24%

22,068

15.78%

25,535

15.72%

25,891

14.05%

28,073

13.90%

28,073

12.98%

4,986

5.38%

12,045

8.61%

5,494

3.38%

11,724

6.36%

12,562

6.22%

14,237

6.58%

1,437

1.55%

813

0.81%

641

0.50%

777

0.35%

663

0.39%

636

0.27%

Source: General Custom Office & In desk research
2. ADVERTISING & COMMUNICATION CAMPAIGN
2.1 IN 2007
In summer 2007, ADC organized launching ceremony in Can Tho province which
is considered as a capital of Mekong Delta. 20 whole sellers, 30 farmers (belong to
ADC Farmer Club) and all of their field force including sales and marketing were
invited. They went through product presentation including technical, trial results,
benefits of using Help®, the ceremony was end up with gala dinner. Sales team
then follow up with sales scheme to whole sellers in the other days
2.1.1 Advertising, Communication & Promotion
ADC selected television in key provinces (Long An, Dong Thap, Vinh Long, Can
Tho, An Giang, Kien Giang) throughout Mekong Delta to ensure 80% coverage to
the area and some province in the east of Vietnam during TV commercial airing.
Technical and Marketing Department would follow up with farmer meetings, TV
talks in which their people would joined with an officer of Sub Plant Protection
Department and a professor from agriculture universities to talk about rice, pests,
Help® 400 SC and other products of ADC (if any related questions), farmers sat in

front of a television just picked up a phone and asked a question, they would reply
at one as a direct dialog; they collaborated with some television in key provinces for
a TV talk which could be covered several provinces at a same time
Their communication message in TV commercial only focused on a latest
generation of broad spectrum fungicide with animation of diseases spot without
voice over on name of diseases. They ended up the TVC with a tagline and voice
over as “Help® 400 SC – More than expectation!”
ADC collaborated with Sub Plant Protection Department, Plant Protection Station,
farmers for demonstrations with a demo board stood in a middle of rice field with
Help® brand and tagline
They also organized spray events for several rice fields in a same day and came
back 1 week later to check results and had spot meetings at the rice field.


7

2.1.2 Merchandising
They decorated point of purchase (POPs) with product posters, banners, stickers,
leaflets and product mock-up.
2.2 In 2008
2.2.1 Advertising, Communication, Promotion and Merchandising
They reduced advertising expenditure of Help® and other products
They maintained product demo, TV talks and merchandising as in 2007
2.2.2 Help® campaign
ADC focused resources on Help® campaigns. They organized 5 campaigns in
Mekong Delta, the East (Dong Nai, Lam Dong, Binh Duong, Binh Phuoc province),
Highland (Daklak, Gia Lai province). It cost them almost US$ 750,000 for these
campaigns through an agency.
120 – 200 promotion girls (PGs) were admitted for a campaign (US$ 25/day/PG.
All PGs were recruited in Hochiminh City, they hired 12 – 20 vans (15 seats) to

carry PGs and promotion gifts (condensed milk, electric fan, samples, refined sugar,
sodium glutamate and ect…); a big quantity of promotion gifts were carried to
POPs some days before the campaign.
A campaign happened in 7 – 10 days and run through 5 – 7 provinces. They stopped
in 2 – 3 provinces for the event.
A huge logistics were required for a campaign such as hotels reservation (staff, PGs,
guests), promotion gifts purchase & delivery, field force gathering and
transportation almost from the whole country for a campaign, invitation to whole
sellers, retailers & their farmers to join the campaign, permission of local authorities
including national security as ADC wanted to have load speaker on the way to event
area, area selection for the event, invitation to press, television, speakers from
universities & Sub Plant Protection Department, training to staff and PGs, invite
well-known singers, POSM for POPs decoration and ect…

2.2.2.1 Event
ADC selected provincial stadium for the event. Whole sellers requested their
retailers set up POPs in the stadium, there were 5 – 10 retailers joined the event.
Farmers free to come into the stadium, they also brought 100 – 200 farmers from


8

neighbored provinces to the event by bus. There were gifts for farmers if they
bought Help® (and other products depending on growth stage of rice crop) for a
certain amount. During the event, farmers could join some games with prize as T
shirt, product sample…; they could listen to music and song, exchanged & took
photo with singers.
ADC arranged Help® technical seminar during the event, they offered lunch box
for ones who joined the seminar
2.2.2.2 Help® Festival

ADC would nominate a province among the ones they run through for a big event
called Help® Festival, the nominated province should be the one which ADC
expected to push up Help® sales (with criteria such as market size, market
potential, competitors’ activities). Farmers bought Help® during the Festival could
join lottery at the end of a day (prize divided into 1st, 2nd, 3rd and consolidation
including Honda motorcycle, television, DVD player, electric cooker ….). ADC
opened a live music show at the end of the Festival, farmers may join as a singer.
Technical seminars took place inside Festival, ADC may bring farmers to nearby
rice fields to observe efficacy of the fungicide, they also “brought” rice field to the
Festival by pots with rice planted in.
Farmer representative of each province would join a game show in which
knowledge of the products, rice, farmers’ practice and ect… were raise to
attendants.
Throughout the campaign, PGs took a role of product consultant and supported
retailers to sell products. Sales reps would be with PGs for tough questions and
situations
2.2.2.3 Merchandising contest
Retailers took a certain amount of Help® & other products could join
Merchandising contest, ADC would sent 3 – 4 PGs to the retailers. PGs supported
retailers to sell products, delivered gifts for big purchase (gifts were defined on
purchased package) and the most important thing is POP decoration for the contest.
There are 3 levels awarded to 3 best decorated POPs, a level had 2 prizes with a
same value offered to owner of POP and a group of PGs who decorated it; 1st award
is Honda Wave which valued was US$ 700.
PGs had to use a limited POSM which counted by ADC. There was no limitation to
use carton box and bottle of Help® (100ml bottle) for decoration the more the better


9

as retailers must order more from whole sellers. Assessment based on good looking
merchandising, creativity, less competitors’ POSM in the POP, sales of Help® for 3
months (recorded and checked by sales rep and whole seller) and decoration must
maintain for 3 months
ADC took photo of the merchandising initially and after 3 months, then they
appraise for awards.
… They finished marketing budget by Quarter 3 in 2008, no TV commercials airing
for all products, no farmer meetings for all product and almost no marketing and
promotion activities
2.3 In 2009
2.3.1 Advertising, Communication, Promotion and Merchandising
ADC almost cut all marketing activities including TV advertisement
2.3.2 Help® campaign
ADC reached 7 campaigns in 2009 with larger size, longer time, more gifts…
… They almost finished marketing budget by 2nd half of 2009, sales department had
to release some of their budget for advertisement of key products
3. ASSESSMENT
3.1 PRODUCT
3.1.1 Market research
It’s necessary to conduct a market research before and after launch (pre-launch and
post launch)
Pre-launch study will enable a company to review product positioning,
segmentation, customer expectation, using habit, touch point, price elasticity,
communication message, product’s benefits (promotional and technical) and ect…
In agrochemical industry, a local company, even a leading company as ADC is
hardly to conduct pre-launch and post launch study, information from field force is
one of a major source for their decision making; however, it’s one sided view rather
than customers’ need.
A qualitative research (before launch) will help ADC test product concept, if
farmers think it’s worthwhile for a new rice fungicide, then farmers would give

ideal price and expectation. Thanks to pre-launch study, ADC could re-check costs


10

per ha to control all diseases including fungicide costs, number of application,
number of tank mix, labor costs and ect…
A quantitative research (before launch) would enable ADC in large scale know how
many percent farmers understand product concept, which ones they are still
struggling on the concept, do they believe the concept, are they willing to test it,
what are challenges to farmers (weather change, labor shortage, salty water invasion
and ect…)
Through a market research, ADC may have campaigns to ask farmers reduce
number of application as most of them apply too much fungicide which come from
their needs to see a thoroughly clean field (sometime diseases don’t reach a
threshold of application but they still apply chemicals) and promotion activities of
agrochemical companies (apply fungicide cause greening effect, healthy rice, they
may use fungicide because of emotional benefits rather than disease control). ADC
would recommend farmers apply Help® on important stages which mostly effect to
yield.
Post launch study will enable a company to appraise a launch campaign if it’s
successful, feedback from the market about their communication and what should
be modified or improved and ect…. The study can be conducted after 1 year launch
(2 rice crops)
3.1.2 Positioning
Based on internal and external studies, ADC would have a good positioning for
Help® whether it control all diseases or just claim it as a specialist of blast and dirty
panicle control; in scientific studies and farmers’ practice, a fungicide control dirty
panicle well can control effectively other diseases except blast.
A good positioning with functional and emotional benefits would sharpen

communication message. It’s quite general for a tagline of Help® “More than
expectation!”, ADC need to specify benefits of Help® in a sentence, it’s should be
clear enough and understandable.


11

3.1.3 Segmentation
Segmentation will help a company focus resources to target customers, it could be
customer segmentation (age, planted area, revenue and ect …), geographical
segmentation.
Pivotal (market research agency) propose 5 types of farmer’s segmentation;
however, most of agrochemical companies focus on farm size, then they may
consider age to classify old farmers (old people) and advanced farmers (young
generation) to position latest products.

Farm Revenue

Farm size
Medlarge
farmer
31%

Mediu
m
revenu
e31%

Large
farmer

43%

Small
revenu
e24%

Mediu
m
Extrafarmer
large
19%
farmer
7%

Age Group

35-39
years
17%

40-44
years
16%

30-34
years
15%
<30
years
12%

Length of Farming
Betwee
n 10
and 20
years
37%

Big
revenu
e 46%

Betwee
n 5 and
10
<5
years
years,
18%
7%

> 30
years
20%

Education

45-49
years
17%

50-54
years
>54 12%
years
11%

Betwee
n 20
and 30
years
17%

Finishe
d
primary
- c1
36%

Finishe
d
middle
school c2
48%
Finishe
d high
school c3
16%

Source: Fungicide Vietnam - Pivotal Jan 2008

As Pivotal, medium large to large farmer segment accounted for 74% population.
Because of industrialization, young generation is prefer to work in a factory rather
than in rice field, they would have a better income and less hard working compared
to agriculture


12

Labor shortage is a big problem now in agriculture where mechanization is mostly
in harvesting; sowing, transplanting, fertilizing, pesticide application are required
labor so far
A good segmentation would enable ADC focus resources on target customer
(medium large to large farmer) and where they reside - Long An, Dong Thap, An
Giang, Kien Giang, Soc Trang province which are belong to Mekong Delta.
3.2 PRICE
In practice, cost per ha of Help® (VND 360,000/ha) is 8% lower than Tilt® Super +
Filia™ (VND 390,000/ha) for all diseases control. Through market research, ADC
could position price of Help® higher than price of Tilt® Super + Filia™ because
it’s a latest fungicide generation and enable farmers cut labor costs at least by
reducing number of application. ADC may propose optimum dosage of Help® to
reach excellent efficacy as they recommended the most economic dosage during
launching which brought average efficacy to blast
By gathering sufficient market information through market research and perceive
value of farmers, ADC may quote the fungicide based on top – bottom approach.
3.3 PLACE
It’s good for a launching ceremony in the center of Mekong Delta to introduce a
new product to customers and partners. They may consider 1 more ceremony in the
North at the end of the year or beginning of next year (when new rice season start)
to ensure good product coverage throughout the country, their branch office in

Hanoi would support the launching.
Point of Purchase (POP) decoration is a good activity to launch/promote the product
at downstream.
Refreshment campaign is a recommendation for new product launch after 1 – 2 year
to strengthen or improve communication message.


13

3.4 PROMOTION
3.4.1 Advertising
Brand awareness is a key drive for trial use, customers don’t ask for a product if
they have nothing in their mind.
For a new product launch, we should achieve 70% brand awareness after a launch
campaign, it’s required thick airing schedule of the first 2 – 3 months launch.
ADC selected key provinces for TVC airing to ensure coverage thoroughly to the
Mekong Delta, it enable them to save airing costs and increase repetition across
Mekong Delta.
In agrochemicals industry, marketing budget take about 5% of sales target, 40%
marketing budget is for TVC and PR. For a new and block buster product as Help®,
ADC need to invest even more than 40% marketing budget into TVC airing to
increase brand awareness, they may shift some budget of other products to support
Help®. ADC may consider a teaser airing to stimulate customers’ attention before
official launch.
Market research would give them more ideas about customers’ insight and
expectation to build up a story board. They should produce 30s and 15s TV
commercial, 15s TV commercial would be aired 4 – 6 months after launch.
Most of farmers listen to radio in early morning (4:30 – 5:30) before going to rice
field and during rest (11:30). 30 – 60s radio commercial is the most effective way
and economic to approach them. ADC may use Voice of Hochiminh to cover most

of Mekong Delta, local/provincial radio could be considered in key rice provinces
Vietnam Agriculture newspaper is a specialist news for agricultural officers, print
ads and articles would alert them on new generation fungicide with new mode of
action. It’s useful information for them to recommend fungicide rotation to farmers
for resistant management.
Through market research, ADC would find out which newspaper farmers are prefer
and what they want to read, it’s useful to define approach.
As survey of Kynatec, there is no awareness of Help® after 6 month launch


14

Top of mind awareness rice fungicide brands
What fungicide brands for rice have you known or heard of? Base: All rice farmers
(642)
All value in %

TOTAL

Red River North Cent’l South Cent’l
Delta
Coast
Coast

Mekong
River Delta

P1
17

20

15

71

48

Tilt Super

11

1

0

14

Anvil

20

13

17

2

Validacin

0

0

0

11

Fuan

0

8

0

8

Beam

5

6

2

10

3

5

Fuji One

5

7

0

0

3

2

Vali

1

0

0

0

0

2

Flash

1

1

0

0

0

1

Trizole

1

1

0

0

0

1

Folicur

0

0

0

0

0

0

Kasumin

0

1

123

72

63

384

42
10

11

8

20

7

11

645

Source: Agri insight - Kynatec Oct 2007
3.4.2 Communication message
A message must be clear, simple and specific enough in mass media and promotion
activities to deliver value of a product, the product will stand for something in
consumers’ mind.
Objective of ADC is launching a latest fungicide generation, effectively control rice
blast, dirty panicle, yellow leaf and sheath blight, but they did nothing with specific
diseases on TV commercial. A voice over on name of diseases is required to
communicate clearly benefits of Help®; it’s hard for farmers to catch up with
diseases spots in animation. It’s a mess in farmers mind with animated diseases
spots and a conclusion “Help® 400 SC – More than expectation!”, to whom
expectation and what type of expectation in their communication message(?). The
tagline here could be used in PR campaign, it could be ideas of rice farmers after 2
– 3 year applying the products which bring results more than expectation.


15

3.4.3 Merchandising

POPs decoration is a good approach at end-users’ touch point, farmers would aware
of new product for trial use. ADC may go further by offering a merchandising
contest among sales reps, they may put more creative and enthusiastic during
decoration rather than thinking it’s a task.
3.4.4 Help® campaign
It’s the biggest and the most costly promotional activity; however, it’s likely a
brand building for Help® in general rather than delivering product value
specifically. Through the campaign, farmers would aware of Help® as a fungicide
in general. Technical seminars during campaign were not enough to deliver product
benefits in large scale. The campaign is a good ideal in areas/provinces which ADC
wants to increase brand awareness or push up sales. ADC should also consider
campaign’s costs to turnover
3.4.5 TV talk and demo
TV talk, product demo are traditional promotion activities. Through TV talks,
farmers would ask ADC directly, they raise questions and learn from others’
experience.
Thanks to demos, farmers would observe product’s efficacy in practice, they could
touch rice field to compared to their current practice.
ADC could do a bit different with a master program for TV talks and demos
throughout Mekong Delta. A master of ceremony (MC) could be considered for all
TV talks, he or she would build up a story of Help® including product demo,
farmer’s ideas, video clip of Help® application in practice and ect…, these
information will be shared during TV talks for discussion. ADC could invite 1 – 2
farmers join TV talks to share their experience.
MC could end up a TV talk with questions related to Help® and farmers’ practice,
ADC would reward soonest and correct answers, TV station may send gifts to
winner on behalf of ADC.
3.4.6 Technical seminar and farmer meeting
For a technical product as Help®, technical seminars and farmer meeting are
important to present and reply directly farmers’ concerns. Farmers aware of the

product through mass media, they will ask for further information; however, it’s not


16

an effective tool for raising brand awareness because of low coverage, less
repetition and customers reach.
It’s an ideal if a company has a good TVC airing schedule which is supported with
sufficient technical seminars and farmer meetings
4. PROPOSALS
4.1 PRODUCT
4.1.1 Market research
We will have focus groups across Mekong Delta follow with quantitative field
survey, we call it’s as “Supreme project”
Focus Groups
 Focus Groups are conducted to gain a basic understanding of needs and usage
patterns as well as to test concept validity with potential users. The results of
the focus groups provided a preliminary indicator of project “Supreme”
viability and also aided in developing a more accurate and more detailed
questionnaire for use in the quantitative survey.
 4 FGDs at An Giang, Long An, Kien Giang & Soc Trang.
 Time: Mar 2006
Quantitative Field Survey
 A survey 300 rice farmers in the Mekong Delta Region during the summer autumn season were carried out in 5 provinces (An Giang, Dong Thap, Long
An, Kien Giang & Soc Trang) 60 each province.
 Respondents had farming areas of 0.5ha or above
 Time: May - Jun 2006
 The primary objective of the survey was to measure the overall market
opportunity with the defined value proposition, including:
 Quantification of application and usage patterns

 Validation/acceptance of the defined proposition
 Price elasticity vs. business development potentials
Findings through Focus Groups and Quantitative Field Survey
 Product acceptance
 Product Appeal
 Product Understand
 Points to Believe
 Product Trial Willingness
 Price Sensitive Measurement


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 Use pattern
 Summary
 Cost of Agricultural inputs
 Number of Fungicide Applications in winter – spring season
 Frequency of Fungicide Applications in winter – spring season
 Brand and Advertising & Promotion Awareness
 Brand Awareness
 Promotional Awareness
 Used Brand
 Favorite Brands
 Reasons of stop using a Brand
 Brand Funnel
 Tank mix
 Frequency of Tank Mixing
 Mixing Pattern
 Rationale of Mixing
 Know-how

 Brand Mixing
 Mixing of Syngenta Brands with Low vs. High Cost Brands
 Labor hiring
 Frequency of Labor Hiring
 Job Need Hired Labor
 Labor Cost
 Purchase attitude
 Number of Shops
 Payment Method
 When & Where to Buy
 Brand Choice (Decision Maker)
 Farmer geography
 Geography of Respondent
 Farming Challenges
A proposed brief of market research to develop with agency is as follows:
Product description
 This is a new generation broad spectrum fungicide which is introduced the first
time in Vietnam


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Product benefits
 Control Blast, Sheath Blight, Dirty Panicle, Yellow leaf
 Vigor (leaves green)
 High yield
Usage timing
 35 days after seedling (DAS), 7 days before and 7 days after flowering
 Or application when the syndromes appear
Application

 300ml/ha for treatment of Sheath Blight, Dirty Panicle, Yellow leaf and
prevent Blast
 400ml/ha for treatment for all 4 diseases
Why it is better?
 New active ingredient thus no resistance
 Broad spectrum fungicide thus can control all fungus infected area of the field
thus higher efficacy
 One time of application could prevent and cure 4 important disease
4.1.2 Positioning
Based on findings through market research, ADC will consider following scenario
 A broad spectrum fungicide with novel mode of action, effectively control
ALL rice diseases, help rice plants reserve energy for growth and grains filling
which bring higher yield (define with dosage to control all diseases & blast
prevention – 300ml/ha and optimum dosage to control ALL diseases including
blast – 400ml/ha)
 Specialist for blast and dirty panicle (also define with dosage for blast
prevention and blast control)
4.1.3 Segmentation
A propose that segmentation will base on farm size and age; young and middle age
generation (30 – 50 years old) is willing to test new things; owners of large farm
must consider costs of pesticide application and labor based on economic of scale,
ADC may focus on middle large to large group (74%) in the key rice provinces.
Findings through market research will support their approach methodology to the
segment.
ADC may define approach way to medium large to large and extra-large segment
by B2C and B2B respectively.


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4.2 PRICE
Latest fungicide generation, perceived value and labor cost reduction are useful
information to quote the fungicide based on top – bottom approach. ADC may offer
higher than market standard (Tilt® Super + Filia™)
 Acceptable price range in winter - spring season: 840,000 ~ 1,100,000 VND/Ha
 Optimal price = 950,000 VND or 315,000 VND/application/Ha
 Normal price = 1,000,000 VND or 333,000 VND/application/Ha
 Source: Pivotal Jan 2008 (ideal price of fungicides to control ALL diseases)
Too Cheap

Expensive

Cheap

Too expensive

100
90
80
70
60
Normal Price,
VND 1,000,000

50

Point of
marginal
expensive

40
30
20

Point of
marginal
cheapness

10

Optimal pricing,
VND 950,000

0
500

550

650

750

850

950

1050 1150 1250 1350 1450 1550 1650 1750 1850 1950 2050

4.3 PLACE
Blast is the most important disease in the North, then sheath blight, yellow leaf and

dirty panicle. Planted area per household is small in northern provinces (360 –
500m2/household accounted for 50% rice farmer population)
ADC may consider one more launching ceremony in the North, focus on blast
control as key selling message, small pack-size (10ml bottle) is a good ideal for
launching in the North because of small farm size.
ADC may then follow with launch event in central with small packaging.


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7,324.4
Total rice area in 2006
(1,000ha)
Red River Delta
North East
North West
North Central Coast
South Central Coast
Central Highlands

1,124.0
553.8
154.4
683.6
392.4
207.6

South East
Mekong River Delta

435.5
3,773.2

Source: Agriculture Statistic in 2006
4.4 PROMOTION
4.4.1 Advertising
4.4.1.1 TV commercial
 30s TVC
 Period: Apr, May 2007
 Place: key provinces in Mekong Delta (Long An, Vinh Long, An Giang , Kien
Giang, Soc Trang, Can Tho)
 Objective: create brand awareness for Help®
Province/TV Station
Long An
Vinh Long
Can Tho
An Giang
Kien Giang
Soc Trang

No. of Spot
20
20
20
20
20
20
120

Period/Time

18:45 – 18:55
19:00 – 19:15
19:45 – 19:55
19:45 – 19:55
20:15 – 20:30
18:45 – 18:55


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4.4.1.2 Radio commercial
 30s RC
 Period: Apr, May, Jun 2007
 Place: Radio Hochiminh City which can cover thoroughly the whole Mekong
Delta
 Objective: create brand awareness for Help®
Radio Station
Hochiminh City

No. of Spot
90
90

Period/Time
5:00 and 11:30

4.4.1.3 Print ad
 Period: Apr, May, Jun 2007
 Vietnam Agriculture newspaper which is delivered to most of agri-authorities
 Objective: create brand awareness for Help®

Newspaper
Vietnam Agriculture

No. of Spot
30
30

Period/Time
Apr - Jun

4.4.2 Merchandising
 Period: Apr, May 2007
 Place: Mekong Delta
 Objective: create brand awareness for Help®
 Plan
 Whole sellers and retailers decoration with poster, canvas
 Place leaflet box in key retailers
 Decorate shelves with Help® sticker
POSM
Canvas
Poster
Leaflet
Leaflet box
Sticker

Quantity
2,000
2,000
20,000

1,000
3,000

Period/Time
Apr - May