TRệễỉNG ẹAẽI HOẽC Mễ TP HCM HO CHI MINH CITY OPEN UNIVERSITY UNIVERSITE LIBRE DE BRUXELLES SOLVAY BRUSSELS SCHOOL MBMM4 Nguyen Huu Diem Phuong Building the brand nutrozinc - A zinc supplement syrup for kid MASTER PROJECT MASTER IN BUSINESS & MARKETING MANAGEMENT Tutors name: Dr Bui Thanh Trang Ho Chi Minh City (2010) i DECLARATION I declare that this study does not incorporate without acknowledgment any material previously submitted for a degree or diploma in any university; and that to the best of knowledge it does not contain any materials previously published or written by another person except where due reference is made in the text Signature of the Student December 15th, 2010 Nguyen Huu Diem Phuong Master of Business and Marketing Management ii ACKNOWNLEDGEMENT This project would not be possible without the advice, assistance, cooperation and encouragement from a number of people I would like to acknowledge their help and support The most important individual has been my tutor, Dr Bui Thanh Trang, who gave guidance and valuable advices during the last four months Thanks to Dr Trang, this project has been made possible Moreover, I would like to express my appreciation to Mr Tran Manh Hao, my mentor in I.A.M Vietnam, who have supported me during the development of this project I also would like to thanks Solvay Business School Vietnam and Ho Chi Minh City Open University and all proffessors who have lectured and shared valuable practical experiences during the MBMM program Last, but not least, I wish to thank my family members for their love, assistance, encouragement and patience iii TUTORS COMMENTS I am writing to confirm that the project entitled: BUILDING THE BRAND NUTROZINC A ZINC SUPPLEMENT SYRUP FOR KID A product belongs to Supplement Category, Pharmaceutical Prepared by Ms NGUYEN HUU DIEM PHUONG has satisfied the requirement for a Masters project in Business and Marketing Management I, therefore, recommend that the project be presented Bui Thanh Trang iv CONTENTS EXECUTIVE SUMMARY INTRODUCTION i Rationale of the project ii Problem statement iii Scope of the project iv Research methods v Structure of the project CHAPTER 1: LITERATURE REVIEW 1.1 Brand and Branding 1.1.1 1.1.2 1.1.3 1.1.4 1.1.5 1.2 What is a brand Brand Equity Brand positioning Brand concept (brand premise) What is branding Qualitative research 1.2.1 1.2.2 Individual depth Interview Focus Group Discussion CHAPTER 2: RESEARCH DESIGN 2.1 Research problem 2.2 Research framework 2.2.1 2.2.2 2.2.3 2.3 Research targets Research stages 10 Data collection 10 Research findings 11 CHAPTER 3: SITUATION ANALYSIS 12 3.3 Internal environment 12 3.2 External environment 12 3.2.1 3.2.2 3.2.3 3.2.4 3.3 Population and kids undernutrition situation 12 Economic growth and medication expenditure 13 Sociocultural Specific 14 Competition 15 Consumer environment 17 v CHAPTER 4: CONCLUSIONS AND RECOMENDATIONS 19 4.1 Conclusions 19 4.2 Recommendations 20 4.2.1 4.2.2 4.2.3 4.2.4 4.2.5 4.2.6 4.2.7 4.3 Marketing goals and objectives 20 Brand Strategy 20 Product Strategy 23 Pricing Strategy 24 Distribution Strategy 24 Integrated Marketing Communication Strategy 24 Recommendation for implementation and monitoring marketing activities 27 Monitoring and evaluation 28 APPENDIX A: INDEPTH INTERVIEW DISCUSSION GUIDE 30 APPENDIX B: FGD CONCEPT TEST DISCUSSION GUIDE 32 APPENDIX C: BRAND CONCEPTS FOR FGD CONCEPT TEST 34 APPENDIX D: STANDARD SOCIAL ECONOMIC CLASS 35 APPENDIX E: NUTROZINC SYRUP 36 vi LIST OF FIGURES Figure - Research Stages 10 Figure - Vietnam GDP/Capita 1995 - 2010F in USD 13 Figure - Medication expenditure 2000 - 2008 in USD 14 Figure - The growth of the Pharmaceutical Industry 2001 - 2013F 15 Figure Perceptual map of kids growth and development products 16 LIST OF TABLES Table - Prevalence of under nutrition in 2008 12 Table 2- Prevalance of Stunting by province/city in 2008 13 Table - Price Index 24 Table - 12 months marketing schedule for Nutrozinc 27 Table - Estimated Nutrozinc Sales 2011 - 2013 27 Table - Estimated 12 months Marketing budget for Nutrozinc 28 EXECUTIVE SUMMARY Nutrozinc Syrup is a zinc supplement product which is suitable for kids Every 5ml has Zinc sulfate equivalent to 10mg Zn, an essential micromineral in human body and especially important in growing kids The product is used in Zinc insufficient cases such as: poor absorption, loss of appetite, stunting and growth retardation in kid The product is imported and distributed by Central Pharmaceutical No Company, a leading local pharmaceutical company Nutrozinc had been successfully penetrated to the ETC (prescribed) channel The company now wants to penetrate to OTC market In order to this, the company need to build brand for Nutrozinc More than one-third of the kids under five years old in Vietnam is suffered from stunting and growth retardation And many others are suffered from loss of appetite, which makes mothers worried and stressed the most as the kid is the center of the family in the current Vietnam scociety In the pharmaceutical market, there has been many products, mostly multivitamin, for supporting kids growth and appetite Among them, Nutroplex, Lysivit and Cansua are the three most popular brands currently Nutroplex promises a strong starting point for kids; Lysivit stimulates appetite to help the kids grow fast and strong while Cansua offers height improvement However, they all have temporary effects not the long term ones that mothers are looking for Qualitative exploratory research on mothers who have or think that their kids at the age of one to six years old suffered from stunting and growth retardness shows that they love chubby kids Therefore, they are very worry if their kids not gain weight They think that the major reason is lack of appetite They will try many ways and make a lot of efforts to make the kids eat This is a very tough and stressful process for many mothers They even become desperated because the kid is the indicator of the family status and how good a mother be Height, another measurement of kids growth, has been awared as an important element currently; however, mothers not know the exact height of their kids while they can speak right away the kids weight The research also reveals that there are two groups of mothers who care a lot about their kids growth and spend their whole heart on improving their kids condition These are the overstressed mothers who have tried many ways from forcing the kid to eat, using many multivitamins products to seeking nutritionists consultancy but the kids stay the same The other group is un-satisfied mothers Their kids are growing normaly but they nerver satisfied with that and always think that the kids not grow as well as their peers They want their kid to be chubbier and taller Mothers from both groups are non-stop searching for appetite improvement solutions fot their beloved kids Mothers not aware of neither micromineral nor their roles in kids development; therefore, Zinc is something totally new to them For the kids under two years old, mothers never give them anything without doctors prescription They only feel open and confident to try OTC products for their kid when they are over two years old Nutrozinc syrup supplies essential adequate daily zinc intake for kids to increase absorption which lead to natural appetite, which is a long term effect that mothers are looking for This proposition of Nutrozinc has been bought in by target mothers in the concept test (via focus group discussions) Base on the above findings, a branding strategy with a twelve months implementation schedule is recommended for Nutrozinc to get 300,000 units sold in the first year INTRODUCTION i Rationale of the project Any product, to be successful in the competitive market, needs a strong brand Nutrozinc, a zinc supplement syrup product for kids, which is going to be launched to the OTC market in 2011 is not an exception It is a must to build Nutrozinc a strong brand in order to ensure its vitality in the market ii Problem statement Nutrozinc Syrup has penetrated the ethical (ETC) market months ago The product has proved its effectiveness in curing anorexia and improved the stunting condition in kids aged from one to five It also gains pediatrists prescriptions for stunting and loss of appetite cases in Ho Chi Minh City and Hanoi Pharmacies are also aware of Nutrozincs thank to the recent frequent prescriptions from doctors It is time to move to another step, the OTC market However, no branding strategy for Nutrozinc has been developed iii Scope of the project This study focuses on the vitamin & supplement for kids category and mother who has kid from to years old who suffer from stunting, growth retardness and loss of appetite All consumer researches were conducted in Ho Chi Minh City iv Research methods Secondary research: Desk research was used to provide general information Primary research: Qualitative research (In depth Interview and Focus Group Discussion) was used to understand target consumers perception and insights in this category 22 kid does not eat enough, she wants him/her to gain some more weights or be as tall as other kids by eating more 4.2.2.3 The Nutrozinc brand Product benefit Increase absorption which lead to natural appetite Emotional benefit Mother will be pleased and less stressful as the kid feels hungry and wants to eat Brand characters Nutrozinc will be a responsible, caring, friendly and fun brand 4.2.2.4 Reason to believe in Nutrozinc Nutrozinc can deliver the above benefit thanks to the role of Zinc in human physical development Zinc plays an important role in growth; it has a recognized action on more than 300 enzymes by participating in their structure or in their catalytic and regulatory actions It is a structural ion of biological membranes and closely related to protein synthesis The concept of zinc fingers explains the role of zinc in gene expression and endocrine function, and mechanisms of action of zinc involve the effects of the metal on DNA synthesis, RNA synthesis, and cell division Zinc also interacts with important hormones involved in bone growth such as somatomedin-c, osteocalcin, testosterone, thyroid hormones, and insulin Zinc is intimately linked to bone metabolism, thus, zinc acts positively on growth and development. 4.2.2.5 Brand concept By understanding consumer insights, the brand concept for Nutrozinc has been developed and tested by target consumers via focus group discussion The research design has been described in chapter Consumers have chosen the winning concept which they found 23 relevant, trustful and providing them with a new solution that can solve the root cause of the kids condition which make them willing to try Nutrozinc winning brand concept: The kid has suffered from loosing appetite or poor absorption which lead to lack of energy for growing, make him smaller than his peers Zinc is an essential mineral for human body, especially during the development of a kid Scientists have proven that Zn is an essential intermediate mineral; without it, nutrition cannot be transformed into good energy for the kids growth Nutrozinc syrup provides Zinc for kid, increasse transformant of good energy which is easier to be absorpted, make the kid feel hungry and create natural appetite Nutrozinc syrup for a natural appetite 4.2.3 Product Strategy Nutrozinc with 100% zinc ingredients is the core product Extended products with more supplements (vitamin or mineral) will be followed in the coming years to enlarge the porfolio and gain more sales Maintain the current 100ml pack size to ensure the kids use it in at least weeks - the lead time for Zinc to start showing its performance in the kid body, with a normal supplementary daily dosage of 2ml/day Bottle with less than 100ml pack size is not reccommended A kiddy and fun packaging for Nutrozinc should be developed to make the product friendlier to the kids as well as mothers instead of the current packaging which is typically a prescribed product The packaging aslo need to be easy to remember and differentiate 24 4.2.4 Pricing Strategy As the target consumers of Nutrozinc are in a wide range of social economic class (ABC) nationwide and majority of them are price sensitive, gaining widespread market acceptance and capture a large market share is the ambitious of the company The penetration pricing strategy in which the price is set at the relatively competitive with other players in the category Details in table price index Brand Pack size (box/bottle) NUTROPLEX NUTROPLEX LYSIVIT CANSUA NUTROZINC 60ml 120ml 60ml 03g x sachet 100ml Price (VND) Price Index (%) Price (VND) Price Index (%) Price/pack (sachet/ml) (Pack) 1ml/g 1ml/g 16,800.00 26,800.00 36,480.00 3,360.10 32,000.00 16,800.00 26,800.00 36,480.00 47,041.40 32,000.00 100 100 136 176 119 280.00 223.33 608.00 1,120.03 320.00 100 100 272 502 143 Table - Price Index Note: Nutroplex 60ml pack size assumped as market leader Prices are collected at Eco Pharma, November 2010 4.2.5 Distribution Strategy Focus all sales resources and activities on 2000 key pharmacies nationwide Well-train the sales representatives with Nutrozinc brand knowledge 4.2.6 Integrated Marketing Communication Strategy 4.2.6.1 Communication Target In communcating Nutrozinc, besides mothers that have been described above, pharmacys sales staffs also need to be communicated as the use of Zinc in the kids physical development (stunting) is new to most of them Pharmacys sales staffs play a very important role in influencing the consumer in making a OTC brand decision 25 4.2.6.2 Integrated Marketing Communication Objectives Integrated Marketing Communication is used to build the Nutrozinc brand awareness as a leading brand in creating natural appetite for kids by increasing absorption Create the emotional relationship between target mothers and Nutrozinc brand a handful brand in releasing both the kid from loss of appetite and poor absorption and mothers from stress, help mother proud of their kids 4.2.6.3 Integrated Marketing Communication Program Nutrozinc syrup will be launched to the OTC market in April 2011 with the IMC program focuses on public relations, print ads, below the line materials, marketing activities for pharmacies and sales promotion Public relations The fact is that consumers have low awareness of Zinc and its role in kids growth Hence, there is a need to educate them with the role and how Zinc works in the body as an intermediate mineral to maximize absorption And last but not least, the supplement sources of Zinc in which Nutrozinc syrup is their best solution Use pediatric nutritionists to deliver the above message Advertising Print ad will be used to build the brand awareness for Nutrozinc It is supported by online banners in websites for parents The key message to be delivered is Nutrozinc syrup for a natural appetite Other below the lines materials such as leaflet, standee placed at the pharmacies will help maintaining the presence of the brand in the market as well as provide more details about Nutrozinc to both consumers and pharmacys staffs 26 Marketing activitives for customers (pharmacies) Customer conference will be organized to lauch Nutrozinc brand The target is 300 key pharmacies in Ho Chi Minh City and another 100 in Hanoi The conference will officially introduce Nutrozinc to OTC market Provide the pharmacies with propper and updated product information and benefits in anti-stunting treatment (including anorexia and poor absorption) and also take orders from them The mystery shopper program for pharmacies will be applied for pharmacies in Ho Chi Minh City and Hanoi to encourage pharmacies sales staff to understand the products and the brand as well as recommend the brand for mothers The final prize will be motorbikes: in Ho Chi Minh City and in Hanoi The winners will be choosen by a lucky draw Other encourage gifts with small value will be used during the program Promotion Promotion will be applied during the lauch of Nutrozinc to attract the kids Cute, fun and small dolls that the kids can use to attached to their backpack will be used as free gift for every unit purchased 27 4.2.7 Recommendation for implementation and monitoring marketing activities 4.2.7.1 Marketing Schedule Detail activites of the 12 months marketing plan has been developed as below: 2011 No Strategy Action plan Q1 2012 Q2 Q3 Q4 10 11 Q1 12 Select Advertising Agency Developing the packaging design Final art work I Packaging design Select Media agency Developing the creative works Production Media plan & booking Creative works development II (Print ad, Radio) Developing merchandising and Design III promotion materials (standee, Production leaflet and promotion gift) Customer launching conference Print Radio Websites PR (Print and websites) IV Launching and building brand Leaflet Standee V In-store activities Mystery shopper Consumer launching promotion VI Promotion VII Marketing research Nutrozinc brand health check Table - 12 months marketing schedule for Nutrozinc 4.2.7.2 Marketing Budget As this at the launching stage, marketing budget for 12 months was set at 17% of total estimated sales in 2011 Marketing budget % Marketing budget Estimated sales volume sales % growth Unit price rate (F) (VND) 2011 1,632,000,000 17 9,600,000,000 300,000 2012 1,248,000,000 10 12,480,000,000 390,000 30 32,000 2013 960,960,000 13,728,000,000 429,000 10 32,000 Table - Estimated Nutrozinc Sales 2011 - 2013 32,000 28 Marketing budget allocation for the first 12 months: No Activities Budget (USD) % I Creative works development & final artworks production Print ad Radio POSM 2,500 1,300 700 500 1 II Media budget Print Radio websites PR III Launching conference (400 key pharmacies in HCMC & HN) 38,000 12,000 8,000 10,000 8,000 16,000 46 14 10 12 10 19 4,000 8,000 10 11,000 13 4,000 Total (USD) 83,500 100 in mil VND (1USD = 19500VND) 1,628,250 IV In-store Activities (200 standees) V Mystery shopper VI POSM production (standees, leaflet & promotion gift) VII Nutrozinc brand health check (HCM & HN) Table - Estimated 12 months Marketing budget for Nutrozinc 4.3 Monitoring and evaluation The marketing strategy will be monitor via the Nutrozincs monthly sales and brand health check after months after the launch The research will be done in Ho Chi Minh City and Ha Noi, the two key markets, with mothers who have kids in the age of years old and suffered from anorexia (lack of appetite) and poor absorption The basic criteria will be covered in the Nutrozincs brand health check are: Brand awareness, brand leverage, brand equity and brand association 29 REFERENCES Donald R.Cooper/Pamela S Schindler (9th Edition) Business Research Methods, Mc Graw Hill International Edition O.C Ferrell and Micheal D Hartline (4th Edition) Marketing Strategy, Thompson South Western Philip Kotler and Kelvin Lane Keller (13th Edition) Marketing Management, Pearson Internatinal Edition Mara J Salgueiro, BS, Marcela B Zubillaga, PhD, Alexis E Lysionek, BS, Ricardo A Caro, PhD, Ricardo Weill, Eng, and Jose R Boccio, PhD Nutrition 2002;18: 510 519 âElsevier Science Inc 2002 Review Article: The Role of Zinc in the Growth and Development of Children http://www.idpas.org/pdf/2695Zinc_GrowthAndDev_Children.pdf 30 APPENDIX A: INDEPTH INTERVIEW DISCUSSION GUIDE I Introduction Introduce about the project and the purpose of the project The interviewee just say what they think as there is no right or wrong answer II How they raise their kid and what they know about nutrition and microsubtances We will talk about raising kids What you care the most when raising your kid? Why are those important? What does it mean to yourself and the kids? How did you raise your kid? How about their diet? Do you think that the current diet provides the kid with enough nutrition and subtances? Why/why not? What kind of nutrition/substance that the kid needs at this stage? Do you care about these? Have you ever heard about microsubtances? Please list out those you know as well as their roles to the development of the kid According to you, how is total development in kid? Do you reference on books or any media about how to raise the kid? Or just follow what your mother did? Why you choose that way? III Expectation for the kid any problem they are facing? Who you expect your kid to become? In physical, interlectual or career? How you think that will help your kid achieve that? As a mother, what have you done to help your kid? Is there anything relate to the kids physical development that you are worrying about? If there is, what does it influence your kid? What you feel about that? Why? 31 IV Perception about stunting and anoxeria in kid What you think about stunting and anoxeria in kid? What are the causes? What you feel about kids that suffer from such condition? When you start worrying that such thing may be happenning to your kid? What you feel then? What stunting and anorexia will cause to the kids future? What would you to help your kid? 32 APPENDIX B: FGD CONCEPT TEST DISCUSSION GUIDE I Introduction Introduce about the project and the purpose of the project The interviewee just say what they think as there is no right or wrong answer II How they raise their kid and what they know about nutrition and microminerals We will talk about raising kids What you care the most when raising your kid? Why are those important? What does it mean to yourself and the kids? How did you raise your kid? How about their diet? Do you think that the current diet provides the kid with enough nutrition and subtances? Why/why not? What makes you satisfiy/not satisfy of your kids current development? Why? If not, what have you done to help improving the situation? Are you satisfied with that solution? III Brand concept assessment I will present a concept of a product for kids that have anorexia and slow physical development This is a product from a credible pharmaceutical company Spontaneous reaction: What you think about the concept? What are your first impressions? Likes/dislikes? Why? What is the key message of this concept? What is the most memorable/impressed part of the concept? Why? 33 Insight and relevance assessment What does the first paragraph talk about? Is that the same problem as your kids? Do you care about this? If you have not heard about this before, now what you feel? Does your kid is having the same problem? Is it worth considering? Product benefit assessment What does the product promise? Is it what you are looking for? Is there anything new/difference in comparison with what you are using now? How can they make such difference, according to this concept? What does it mean to your kid and you? What you expect for your kid (you and your family) from this product? Credibility of the concept Do you think that what they are promised here is persuasive? What make you believe in it? Why not? Purchase intent Does this concept attract you? Do you want to buy this for your kid? Why? Why not? Continue with 2nd concept Compare between the two concepts Which one is the most suitable for your kid? Why? Which one shows the benefit clearest? Why? For such product, what is the time that you expect the product starts showing its result? How long will it loose your patience? 34 APPENDIX C: BRAND CONCEPTS FOR FGD CONCEPT TEST Concept A The kid has suffered from loosing appetite or poor absorption which lead to lack of energy for growing, make him smaller than his peers Zinc is an essential mineral for human body, especially during the development of a kid Scientist have proven that Zn is an essential intermediate mineral; without it, nutrition cannot be transformed into good energy for the kids growth Nutrozinc syrup provides Zinc for kid, increases transformant of good energy which is easier to be absorpted, make the kid feel hungry and create natural appetite Nutrozinc syrup for a natural appetite Concept B Being a mom, I always give my kid the best diet, including milk and supplement; however, I still not see him growing This makes me so worried Zinc is a very essential subtance for human body, especially during the development of a kid Scientists have proven that Zn is an essential intermediate substance; without it, nutrition cannot be transformed into good energy for the kids growth Nutrozinc syrup provides daily sufficient Zinc for kids; ensure their optimal physical development Nutrozinc syrup - a foundation for optimizing kids growth 35 APPENDIX D: STANDARD SOCIAL ECONOMIC CLASS Source: Nielsen Vietnams Household and Individual Income Bands 2009 Class A5 A4 A3 A2 A1 B C D E F Personal & Household Income USD VND 10,000+ 150,000,000 or higher 5,000 - 9,999 75,000,000 - 149,999,999 3,000 - 4,999 45,000,000 - 74,999,999 2,000 - 2,999 30,000,000 - 44,999,999 1,000 - 1,999 15,000,000 - 29,999,999 500 - 999 7,500,000 - 14,999,999 300 - 499 4,500,000 - 7,499,999 200 - 299 3,000,000 - 4,499,999 100 -199 1,500,000 - 2,999,999 - 100 - 1,499,999 36 APPENDIX E: NUTROZINC SYRUP Manufactured by General Pharmaceutical Ltd, Bangladesh Imported and distributed by Central Pharmaceutical Company No.1 Packaging: 100ml bottle Active ingredients: Zinc Sulfate ... understanding and matching the consumer insights and the brand insights Only when consumers find what they are looking for in Nutrozinc, and they belive in the brand, including emotional attached and. .. pharmacy channel as well as having its own brands In order to grow and penetrate into the OTC market, the company will start with launching a OTC brand Nutrozinc is the chosen brand and will be handled... preferences, and behavior related to akk aspect of the marketing of a brand Stronger brand lead to greater revenue The challenge in building a strong brand is therefore ensuring that customers have the