Marketing plan to launch a packaged soya milk in vietnam final project master in business marketing management

TRƯỜNG ĐẠI HỌC MỞ TP.HCM
HOCHIMINH CITY OPEN UNIVERSITY

UNIVERSITEÙ LIBRE DE BRUXELLES
SOLVAY BRUSSELS SCHOOL

MBMM3

NGUYỄN THÙY CHÂU

MARKETING PLAN TO LAUNCH
A PACKAGED SOYA MILK IN VIETNAM

MASTER PROJECT
MASTER IN BUSINESS & MARKETING MANAGEMENT

Tutor: Trinh Thuy Anh

Ho Chi Minh City
(2011)


STATEMENT OF ORIGINALITY
This work has not been submitted for a degree or diploma in any university. To the best
of my knowledge and belief, the project contains no materials previously published or
written by another person except where due reference is made in the project itself.

NGUYEN THUY CHAU
March 01, 2011

ACKNOWLEDGEMENT
Firstly, I would like to express my appreciation to Ms. TRINH THUY ANH - PhD, my
project tutor, for all her valued guidance and expert advice in the preparation of this
project.
Special thanks to my mentor for his personal encouragement and unlimited support in
sharing marketing experience which motivated me to work harder on this project.
Last but not least I would like to send my deepest appreciation to my family and my
company for their emotional support and spiritual encouragement throughout my MBA
study.


TUTOR’S COMMENTS

I am writing to certify that this project entitled:

MARKETING PLAN TO LAUNCH
PACKAGED SOYA MILK IN VIETNAM
Prepared by
Ms. NGUYEN THUY CHAU
meets the requirement for a business project at the master’s level. It is recommended
that Nguyen Thuy Chau present her project to the Committee.

Hochiminh City, March 1st, 2011

___________________________________
Tutor’s signature
Trinh Thuy Anh


TABLE OF CONTENT

EXECUTIVE SUMMARY .............................................................................................. 1

CHAPTER 1: INTRODUCTION .................................................................................... 3
1.1

Reasons to Research ........................................................................................... 3

1.2

Objectives of Research ....................................................................................... 3

1.3

Methodology ....................................................................................................... 4

1.4

Structure of Thesis .............................................................................................. 4

CHAPTER 2: LITERATURE REVIEW ......................................................................... 5
2.1

Process to launch a new product......................................................................... 5

2.1.1

Idea Generation ........................................................................................... 6

2.1.2

Screening...................................................................................................... 6

2.1.3

Concept Development and Testing .............................................................. 6

2.1.4

Business Analysis ......................................................................................... 6

2.1.5

Product and Marketing Mix Development................................................... 7

2.1.6

Market Testing ............................................................................................. 7

2.1.7

Commercialization ....................................................................................... 7

2.2

Marketing Activities to Build and Develop a New Product ............................... 7

2.2.1

Product ......................................................................................................... 7

2.2.2

Price ............................................................................................................. 8

2.2.3

Place (Distribution) ................................................................................... 10

2.2.4

Promotion .................................................................................................. 11

CHAPTER 3: RESEARCH DESIGN AND FINDINGS .............................................. 12
3.1

Framework of Research .................................................................................... 12

3.2

Methodology and Sampling composition ......................................................... 12


3.3

Findings of Research ........................................................................................ 13

3.3.1

Finding 01: Life attitude ............................................................................ 13

3.3.2

Finding 02: Eating behaviors .................................................................... 14

3.3.3

Finding 03: Criteria of Demanding Soy-milk brand ................................. 15

3.3.4

Finding 04: Hierarchy of Demanding Criteria ......................................... 17

3.3.5

Finding 05: Occasions to use .................................................................... 18

3.3.6

Finding 06: Location to drink Soy-milk ..................................................... 18

3.3.7

Finding 07: Activity to drink Soy-milk ....................................................... 19

3.3.8

Finding 08: Places to buy Soy-milk ........................................................... 19

3.3.9

Finding 09: Environmental Concern ......................................................... 20

CHAPTER 4: MARKET ANALYSIS ........................................................................... 21
4.1

Market situation ................................................................................................ 21

4.2

Introduction of La Beaute ................................................................................. 23

4.2.1

About La Beaute ......................................................................................... 23

4.2.2

La Beaute’s Sustainability ......................................................................... 24

4.3

SWOT Analysis ................................................................................................ 25

4.3.1

Strengths .................................................................................................... 25

4.3.2

Weaknesses ................................................................................................ 25

4.3.3

Opportunities ............................................................................................. 26

4.3.4

Threats ....................................................................................................... 26

CHAPTER 5: MARKET ACTIVITIES......................................................................... 27
5.1

Target Consumers ............................................................................................. 27

5.2

Positioning ........................................................................................................ 28

5.3

Marketing Activities to Launch La Viva .......................................................... 29

5.3.1

La Viva ....................................................................................................... 29


5.3.2

Pricing of La Viva ...................................................................................... 31

5.3.3

Distribution of La Viva .............................................................................. 33

5.3.4

Communication Strategy of La Viva .......................................................... 34

CHAPTER 6: CONCLUSION ....................................................................................... 37

REFERENCE ................................................................................................................. 38

APPENDIX .................................................................................................................... 39

LIST OF TABLE
Table 4.1

Retail value RSP

24

Table 4.2

La Beaute’s Sustainability

26

Table 5.1

Pricing analyses for la Viva

34

Table 5.2

Communication mix

38


LIST OF FIGURES
Figure 2.1

A framework of a new product launching process

5

Figure 3.1

Research framework

13

Figure 3.2

Hierarchy of Demanding Criteria

18

Figure 3.3

Occasion to use

19

Figure 3.4

Location to drink soy-milk

19

Figure 3.5

Activity to drink soy-milk

20

Figure 3.6

Place to buy soy-milk

20

Figure 3.7

Environmental Concern

21

Figure 4.1

22

Figure 4.2

23

Figure 5.1

Distribution Channel Organization

35

Figure 5.2

Stages of Communication

36

Figure 5.3

Success Elements of communication

38


Page 1

EXECUTIVE SUMMARY
EUROMONITOR International1 forcasted that total Vietnam soy-milk market valued at
US$ 18.5 million for the year 2010, growing by 23% vs 2009. also gave a forecast in
2014, this market value will achieve a value of US$ 43 million.
Thanks to the initiatives in communicating and customizing product offering, local
manufacturers are dominating market with 97% market value share by Fami, Vinasoy,
Vfresh and Number One etc.
With the communication of “Good for health” and “Good for heart”, soy-milk market is
not so segmented and is considered a normal beverage for health.
La Beaute is founded by the philosophy of Beauty-oriented company for Vietnamese
working people. It is planning to offer this soy-milk market with distinct proposal
which is uniquely different from the current soy-milk in the market.
The thesis conducted a qualitative research to find out the insights of its target
consumers – Vietnamese young working woman aging from 22 to 40. Then it proposes
a concept to launch a soy-milk brand named La Viva to offer its target consumers.

Euromonitor International Ltd is a privately owned, London-based market research firm, providing market
research and business intelligence reports and data to industry. The firm was founded in 1972.
Euromonitor's website states the firm currently employs more than 1000 analysts and consultants globally, who
source market information in 80 countries, producing consumer industry market reports, reference books,
company profiles, current market data, and market forecasts. (Wikipedia, Aug 2010)

With the advantage of marketing capability and consumer-centric philosophy, La
Beaute starts its penetration into the big cities first. The success of urban geodistribution is the foundation for it to expand its distribution to the deeper and wider
areas to the whole nation of Vietnam.


Page 2

The research found out that target consumers initiatively are demanding much more

than the offerings from current players are. This unmet need is the huge opportunity for
La Beaute since there is no players claiming for “Nourish from Inside out” or “Good for
Breast” whare are hugely expected from target consumers.
This thesis is proposing a marketing plan to launch a soy-milk to best fit the consumers’
unmet demand.


Page 3

CHAPTER 1: INTRODUCTION
1.1

Reasons to Research

La Beaute is Vietnamese private company which outsources suppliers to produce
carton packaged soy milk to sell in Vietnam market. With competitive advantage in
market initiatives and consumer understanding, it is quite innovative in product
proposition and capturing market dynamics.
La Beaute has found that the soy milk market is increasing and market size of soy
milk is quite big with US$ 18.5 million in 2010 with annual market growth rate of more
than 23% which is highest in beverage category (Source: Euromonitor International,
2010). Therefore, La Beaute is planning to penetrate this lucrative soy milk market.
In order to develop a soy-milk to best fit consumer’s desire, the primary research
needed to be conducted to explore the target consumers’ insights. The target
consumers’ insight is the foundation to shape the product development
1.2

Objectives of Research

-

Understand the different attitude towards health /diet /nutrition among females.

-

Explore underlying & potential insights in the soy-milk category.

-

Develop new soymilk concepts based on the 2 initial directions: Health shot and
Convenient.


Page 4

-

Provide recommendations for concept optimizations and communication
directions.

1.3

Methodology

Qualitative research was conducted with focus groups, in different age ranges, who are
working woman and used soy-milk in last 6 months in order to collect the insights,
needs, key perceptions.
1.4

Structure of Thesis

The Thesis Includes 5 Chapters
-

Chapter 1:

Introduction to introduce Reasons to Research, Objectives of

Research and Methodology of research
-

Chapter 2: Literature Review to review the process to launch a new product

-

Chapter 3: Research and Findings

-

Chapter 4: Market Analysis and introduction of Le Beaute.

-

Chapter 5: Marketing Activities

-

Chapter 6: Conclusion

Page 5

CHAPTER 2: LITERATURE REVIEW
The chapter was written based on Know this: Marketing Basics, Paul Christ (2009).
2.1

Process to launch a new product

IDEA
GENERATION

SCREENING

BUSINESS ANALYSIS

CONCEPT DEVELOPMENT and TESTING

PRODUCT AND MARKETING MIX
DEVELOPMENT

MARKET TESTING

COMMERCIALIZATION

Figure 2.1 A Framework of a new product launching process


Page 6

2.1.1

Idea Generation

The first step of new product development requires gathering ideas to be evaluated as
potential product options. Many market research techniques are used to encourage ideas
including: running focus groups with consumers, channel members, and the company’s
sales force; encouraging customer comments and suggestions; and gaining insight on
competitive product developments through secondary data sources. Group of conducted
research can yield a wide range of possible products that can be further pursued.
2.1.2

Screening

Ideas are critically evaluated by company to isolate the most attractive options. As the
ideas are whittled down to a few attractive options, rough estimates are made of an
idea’s potential in terms of sales, production costs, profit potential, and competitors’
response if the product is introduced. Acceptable ideas move on to the next step.
2.1.3

Concept Development and Testing

With a few ideas in hand the marketer now attempts to obtain initial feedback from
customers, distributors and its own employees. Generally, focus groups are convened
where the ideas are presented to a group. In some cases, focus groups are exposed to a
mock-up of the ideas. During focus groups with customers, the marketer seeks
information that may include: likes and dislike of the concept; level of interest in
purchasing the product; frequency of purchase; and price points to determine how much
customers are willing to spend to acquire the product.
2.1.4

Business Analysis

Now in this step, the process becomes very dependent on market research as efforts are
made to analyze the viability of the product ideas. The key objective at this stage is to
obtain useful forecasts of market size, operational costs, production cost and financial
projections. Additionally, the organization must determine if the product will fit within
the company’s overall mission and strategy.


Page 7

2.1.5

Product and Marketing Mix Development

Companies direct their research and development teams to construct an initial design or
prototype of the idea. Marketers also begin to construct a marketing plan for the
product. Once the prototype is ready, the marketer seeks customer input. In this step,
the customer gets to experience the real product as well as other aspects of the
marketing mix, such as advertising, pricing, and distribution options. In addition to
gaining customer feedback, this step is used to gauge the feasibility of large-scale, cost
effective production for manufactured products.
2.1.6

Market Testing

Products are ready to be tested as real products. In some cases the marketer accepts
what was learned from concept testing and skips over market testing to launch the idea
as a fully marketed product. The most common type of market testing makes the
product available to a selective small segment of the target market (e.g., one city),

which is exposed to the full marketing effort as they would be to any product they could
purchase.
2.1.7

Commercialization

If market testing displays promising results the product is ready to be introduced to a
wider market. Some companies introduce or roll-out the product in waves with parts of
the market receiving the product on different schedules. This allows the company to
ramp up production in a more controlled way and to fine tune the marketing mix as the
product is distributed to new areas
2.2

Marketing Activities to Build and Develop a New Product

2.2.1 Product

In marketing, the term “product” is often used as a catch-all word to identify solutions a
marketer provides to its target market. We will follow this approach and permit the term


Page 8

“product” to cover offerings that fall into one of the 3 categories of Goods, Service and
Ideas.


Goods - Something is considered a good if it is a tangible item. That is, it

is something that is felt, tasted, heard, smelled or seen. In some cases there is a

fine line between items that affect the senses and whether these are considered
tangible or intangible.


Service - Something is considered a service if it is an offering a customer

obtains through the work or labor of someone else. Services can result in the
creation of tangible goods (e.g., a publisher of business magazines hires a
freelance writer to write an article) but the main solution being purchased is the
service.


Idea - Something falls into the category of an idea if the marketer

attempts to convince the customer to alter their behavior or their perception in
some way.
2.2.2 Price

What is price?
In general terms, price is a component of an exchange or transaction that takes place
between two parties and refers to what must be given up by one party (i.e., buyer) in
order to obtain something offered by another party (i.e., seller). In fact, price means
different things to different participants in an exchange:


Buyers’ View – For those making a purchase, such as final customers,

price refers to what must be given up to obtain benefits.


Sellers’ View - To sellers in a transaction, price reflects the revenue

generated for each product sold and, thus, is an important factor in determining


Page 9

profit. For marketing organizations price also serves as a marketing tool and is a
key element in marketing promotions.
Price versus Value
For most customers price by itself is not the key factor when a purchase is being
considered. This is because most customers compare the entire marketing offering and
do not simply make their purchase decision based solely on a product’s price. In
essence when a purchase situation arises price is one of several variables customers
evaluate when they mentally assess a product’s overall perceived value
Perceived value = perceived benefits received/perceived price paid
For the buyer value of a product will change as perceived price paid and/or perceived
benefits received change.
Importance of price
Pricing decisions can have important consequences for the marketing organization and
the attention given by the marketer to pricing is just as important as the attention given
to more recognizable marketing activities. Some reasons pricing is important include:


Most Flexible Marketing Mix Variable – The flexibility of pricing

decisions is particularly important in times when the marketer seeks to quickly
stimulate demand or respond to competitor price actions.


Setting the Right Price – Pricing decisions made hastily without sufficient

research, analysis, and strategic evaluation can lead to the marketing
organization losing revenue.


Trigger of First Impressions - It is important for marketers to know if

customers are more likely to dismiss a product when all they know is its price. If
so, pricing may become the most important of all marketing decisions if it can be


Page 10

shown that customers are avoiding learning more about the product because of
the price.


Important Part of Sales Promotion – Many times price adjustment is part

of sales promotions that lower price for a short term to stimulate interest in the
product.

2.2.3 Place (Distribution)

What is distribution channel?
Distribution channel is the path that moves product from the marketer to consumers. It
means making decisions on the activities that will give customers access to and permit
purchase of a marketers’ product.
Distribution systems



Indirect - With an indirect distribution system the marketer reaches the

intended final user with the help of others. These resellers generally take
ownership of the product, though in some cases they may sell products on a
consignment basis. Under this system intermediaries may be expected to assume
many responsibilities to help sell the product.


Direct - With a direct distribution system the marketer reaches the

intended final user of their product by distributing the product directly to the
customer. That is, there are no other parties involved in the distribution process
that take ownership of the product.


Multi-Channel (Hybrid) - In cases where a marketer utilizes more than

one distribution design the marketer is following a multi-channel or hybrid
distribution system.


Page 11

2.2.4 Promotion

What is Promotion?
Promotion is a form of communication that uses various methods to reach a targeted
audience with a certain message in order to achieve specific organizational objectives.

Objectives of Promotion
The most obvious objective marketers have for promotional activities is to convince
customers to make a decision that benefits the marketer (of course the marketer believes
the decision will also benefit the customer). For most for-profit marketers this means
getting customers to buy an organization’s product and, in most cases, to remain a loyal
long-term customer.
Promotion Mix
Marketers have at their disposal four major methods of promotion. Taken together these
comprise the promotion mix. Those include:


Advertising – Involves non-personal, mostly paid promotions often using

mass media outlets to deliver the marketer’s message.


Sales Promotion – Involves the use of special short-term techniques, often

in the form of incentives, to encourage customers to respond or undertake some
activity.


Public Relations – Also referred to as publicity, this type of promotion

uses third-party sources, and particularly the news media, to offer a favorable
mention of the marketer’s company or product without direct payment to the
publisher of the information.


Page 12

CHAPTER 3: RESEARCH DESIGN AND FINDINGS
3.1

Framework of Research
Research
Objectives

Methodology

Qualitative

Data Collection

Analysis

Findings

Figure 3.1 Research Framework

3.2

Methodology and Sampling composition

Qualitative Research
Those was conducted by 4 Focus Groups of respondents in different age ranges who
used soy-milk in last 6 months in order to collect the insights, needs, key perceptions in
terms of strength and weaknesses of current brands in the market. The result of this
research helped to discover Insights & Needs, to discover attitudes, beliefs & related
behaviors, to discover the brand attributes, to discover key drivers, influencing

Page 13

elements. The findings were the foundation to design the next steps for product
development and marketing mix.
Focus groups sample
We recruited 20 respondents and divided into 4 groups. Respondents of each group had
the similar demographic in age range and genders.
-

2 groups of : 5 females, working, age from 22 to 30 [young working female

group]
-

2 groups of : 5 females, working, age from 21 to 40 [mature working female

group]
Respondent criteria: those who drank soy-milk in last 6 months.
Research Question: Refer to Appendix 01.
3.3

Findings of Research

3.3.1 Finding 01: Life attitude

Attitude

Sayings

Key – general
common ones







Differentiated
Attitudes

 Being accepted by others is very important to me
 I really appreciate the actions which protect the
environment
 I pay more attention to spiritual wellbeing than material
stuffs

I believe that hard working is a way to make life better
My family is a big part of my life
I want to have a good career to show my independence
Maintaining family values is important to me
I'm always prioritize to choose product which is good value
for money
 I am constantly looking for new experiences in life


Page 14

 I trust the manufacturers who specialize in Soy milk only
 I am a busy person who is always looking forward to
possibility in the future
 I love trying new brands and products before my friends
have chance to try them
 I like to stand out from everyone else
 I want to become more attractive.
Niche attitudes

 I tend to think and act in a way as similar as my friends
 I am more concerned about my children’s future than I
were 1 year ago
 I find it difficult to balance work and family needs.
 I really need a product which could reward me whenever I
get tired.

3.3.2 Finding 02: Eating behaviors

Attitude

Sayings

Key – general
common ones







Differentiated
Attitudes

 I always look at the label to check the ingredients in a product
 I always try to choose product with less preservative
 I am constantly thinking about my weight

Looking after my health is one of my highest priorities
Slim body is the sign of attractiveness
Soy products are integral to being healthier
Beautiful skin is the sign of good health
When buying food, I always prioritize to choose safe/ hygiene
product
 I always try to choose the food & drink which is good for
health
 Soy-milk is considerable with less fat than other dairy
products


Page 15

 My busy life makes moderating my food intake difficult
 To me, quality is necessary for eating than quantity
 Soy drinks are considerably better for me than other dairy
products
 The brands I choose reflect the type of person I am.
Niche attitudes

 Soy-milk is good for breast

 I pay a lot of attention to what I eat and drink towards my
beauty

3.3.3 Finding 03: Criteria of Demanding Soy-milk brand

[The higher the order, the more important rate]
Features

Functional

Emotional

Key – must
deliver
on
these, but can
still be points of
difference

1. To give me energy
2. To quench my thirst
3. To help my body absorb
nutrition
4. To improve my digestion
5. To improve my bodies
protection against diseases

1. Good for beauty
2. Help me more attractive

Needs that can
differentiate
your offer

1.
2.
3.
4.

1.
2.
3.
4.
5.

Anti-aging
To give me healthier skin
To have a good body shape
Cooling down/ balance the
body inner heat
5. To satisfy my hunger
6. To drink what my friends
drinking

To refresh me
To nourish me inside out
To reward me as a gift
To lift my mood / spirit
To help me concentrate /
focus

6. To make me feel more
beautiful
7. To ease my stress
8. To feel confident


Page 16

Niche needs –
relevant for
some people or
on certain
occasions,
though of
limited
importance at
total market
level

1. To prevent breast cancer

1. Good for breast
development


Page 17

3.3.4 Finding 04: Hierarchy of Demanding Criteria
93 90 90 89
88

86
86
83 83 82 82 82 81 79 79
76 76 76 75 74
73
72
71
70
69 67 66
64 64 62
55 52
50 50 50 48 47
42 41
35

28

To give me energy
To quench my thirst
To help my body absorb nutrition
To improve my digestion
To give me a taste I enjoy
To make me stronger
Good for digestion
To soothe my throat
Good for brain
improve my bodies against diseases
To lower chelesterol
To prevent heart disease/ good for heart
To prevent cancer

To give me healthier skin
Anti-aging
To help me relax
To lift my mood / spirit
To prevent diabetes
To refresh me
To have a good body shape
To give me strong bones
To satisfy my hunger
To help me concentrate / focus
Cooling down/ balance the body
To make me feel more beautiful
To feel confident
To ease my stress
To get a product with the cheapest price
To share with others/friends
To comfort myself when I was in ill
To warm me up
reward for a whole day’s work/class
To try something new and different
To drink what my friends were drinking
To relieve boredom
To make me taller
To make me feel trendy
To help me gain weight
To help me sleep well
To prevent breast cancer
Good for breast development

Figure 3.2 Hierarchy of Demanding Criteria