TRƯỜNG ĐẠI HỌC MỞ TP HCM HO CHI MINH CITY OPEN UNIVERSITY UNIVERSITE LIBRE DE BRUXELLES SOLVAY BRUSSELS SCHOOL ECONOMICS & MANAGEMENT MMA7 Author: NGUYEN MINH HANG NGUYEN THI THU HANG INTEGRATED MARKETING COMMUNICATION PLAN OF KNORR TET 2014 MASTER PROJECT MASTER IN MARKETING & ADVERTISING Tutor’s Name: HUYNH BA CHAN NHU Ho Chi Minh City (2014) COMMITMENTS We, Nguyen Minh Hang and Nguyen Thi Thu Hang commit that we have done the project by ourselves based on the information collected either from the Public or Unilever Internal Source This paper is designed only for the academic purpose of the completion of our Master in Marketing and Advertising It is not expected for any other users ACKNOWLEGEMENT We would like to express our deep gratitude to for Ms Huynh Ba Chan Nhu for her first guideline of the structure of this project Prof Marianne Claes deserves a special note of thanks for her commitments, advice, and approval on this paper We are indebted to Ms Vu Thi Nguyet Que in Unilever Vietnam for her sincerely help and useful documents Finally, we must express our deep appreciation to all our colleagues, friends, and our family, who have, as always, given us their support throughout TABLE OF CONTENTS CHAPTER 1: VIETNAM GRANULES MARKET OVERVIEW AND MARKETING ANALYIS OF KNORR Introduction about Unilever and brand Knorr 1.1 Unilever and Unilever Vietnam 1.2 Brand Knorr and Knorr granules Marketing Analysis 2.1 Market analysis 2.2 Granules market analysis 2.3 Competitors 10 Knorr SWOT analysis 12 Segmentation - Target audience 12 4.1 Segment description 12 4.2 Target audience 12 4.3 Insights and innovation of product 13 4.4 Product differentiation 13 4.5 Positioning 13 CHAPTER 2: THEORETICAL FRAMEWORK OF 5M’S OF ADVERTISING 14 Steps to develop a communication strategy 14 4P’s and 4C’s of Marketing 14 Elements of IMC mix 15 Measurement 16 CHAPTER 3: ANALYSIS ON MARKETING COMMUNICATON PLAN OF KNORR TER 2013 17 Target audience 17 Communication plan of Knorr Tet 2013 Budget 17 Key message 18 Objective 18 Timeline 18 Media channels 19 Measurement 20 CHAPTER IV: RECOMMENDATION FOR INTEGRATED MARKETING COMMUNIATION PLAN OF KNORR TET 2014 22 Key message 22 Objective 22 Target audience 22 Media channels 22 Timeline 23 Communication plan of Tet 2014 Budget 24 CONCLUSION 25 REFERENCES 26 APPENDIX 27 EXECUTIVE SUMMARY At present, in the granules market, Knorr from Unilever Corporation is one of top brands together with two other rivals of Maggi and Aji-ngon With the advantage of being the pioneer in the Vietnamese market, since 2000 until now, Knorr has developed more and more and proved to be a leading and favorite brand as a result of powerful finance, right marketing strategy, and talented marketing staff Tet is special holiday of the Vietnamese for eating, entertainment activities, and family traditions This is also a special season for most of businesses to make use of launching products, marketing campaigns that help to build sales at maximum level The objective of this project is to review and analyze integrated communication plan Knorr Tet 2013 and giving some suggestions for further plan Tet 2014 Knorr has launched Tet campaign yearly and in 2013, Knorr continued to implement thematic TVC and sales promotion to attract its target customers However, in the harsh competition, others foreign players of Maggi and Aji-ngon follow very close to Knorr and also launch Tet gift packages Besides, on Tet, customers have trend to choose brand that have appealing mechanics To solve that issue, in 2013, Knorr decided to choose a premium Lock&Lock gift for Tet to create big impact As a result, Knorr got advantage of value share in urban areas Nevertheless, in rural, Knorr did not achieve the target because people not realize outstanding value from Knorr’s gift From Tet 2013, we have withdrawn some good points, unachieved issues, and given some recommendations for Integrated marketing communication plan of Knorr Tet 2014 Continuing with taking advantage of Tet to grow volume sales, market share, and brand loyalty, we have planned to implement media activities via insightful TVC, eye-catching and premium promotion gifts but focus on customizing promotion gifts basing on different regions to get the highest impact CHAPTER 1: VIETNAM GRANULES MARKET OVERVIEW AND MARKETING ANALYIS OF KNORR Introduction about Unilever and brand Knorr 1.1 Unilever and Unilever Vietnam Unilever is a group of Britain and the Netherlands that specialized in production of consumer goods such as cosmetics, chemical detergent, toothpaste, shampoo, and food Major competitors of Unilever are Procter & Gamble, Unilever, Nestlé, Kraft Foods, Mars Incorporated, Reckitt Benckiser and Henkel The company owns several production companies, consumer goods, food, laundry detergent products, cosmetics in the world Unilever employs about 173 thousand employees in 500 companies worldwide, their products are sold in 190 countries Business category: Consumer goods (Branded home & personal care and food and beverage categories) Unilever owns more than 400 brands with turnover about 51 billion euro in 2012 In 2013, Unilever turnover went down 3% from 2012 Unilever Vietnam Unilever Vietnam is a subsidiary of the Anglo-Dutch Unilever Corporation; one of the world’s leading suppliers of fast moving consumer goods in branded home & personal care and food categories, Unilever started its operations in Vietnam in 1995 To date, Unilever has invested more than USD 300 millions in Vietnam specializing in Home and Personal Care brands, Oral Care products, Foods and Tea-based Beverages Unilever Vietnam directly employs more than 1600 people Many of Unilever Vietnam’s brands have become #1 household brands in Vietnam, including Omo, Sunlight, Dove, Sunsilk, Clear, Lux, Close-up, Lipton, Knorr, Viso, Vaseline, P/S and Surf 1.2 Brand Knorr and Knorr granules The story about Knorr has begun in 1838, when Carl Heinrich Knorr founded first factory to provide specialist plant chicory for the coffee industry in Germany Knorr brand became a pioneer in testing dried vegetables for keeping flavor and value ding their support Today, Knorr became the number brand of Unilever Food Solutions - global brand with a particular passion for food with a wide range of product line of spices, sauces and soups Being put in Vietnam market since 2000, the Knorr brand has launched many product lines to help the lives of modern women Vietnam improved In April 2001, granules Knorr product was first introduced to consumers in Vietnam This is considered a milestone for the product market of Vietnamese spices, because the product has developed a new concept of the tasting cooking in the culinary culture of the Vietnamese people Table 1: Knorr Vietnam product overview No Product line Granules Sub-categories Shinbone, tenderloin & marrow Shinbone, tenderloin & marrow Mushroom and seaweeds (added Vitamin A) Fish sauce Knorr meal maker Knorr fish sauce North braised pork South braised pork North braised fish South braised fish Roast Chicken with Sour Cream & Spring Onion South sour soup Knorr pork cube Marketing Analysis 2.1 Market analysis a) Economy GDP 2013 increased 5.42% compared with 2012, in which the service sector rose 6.56% and higher than 5.9% in 2012 Such growth this year is mainly due to the contribution of the service sector Some industries with high proportion have positive increase e.g wholesale and retail rose 6.52%, accommodation service and food drinking rose 9.91% The average population of the country in 2013is estimated 89.71 million people and there is an increase of 1.05% compared to 2012 There is 44.38 million male populations, accounting for 49.47% of the total and increasing 1.08% The female population is 45.33 million, accounting for 50.53%, and rising 1.03% In the total of this year's national population, urban population is 29.03 million, accounting for 32.36%, rising 2.38% compared to the previous year; rural population is 60.68 million people, accounting for 67.64%, rising 0.43% b) Culture – Society As one of the Asian countries affected by Confucianism, Vietnam society over 2000 years still honors the woman with full of Cong – Dung – Ngon – Hanh personalities (Homemaking Skills, Appearance, Speech Manners, Good Behavior) A woman is good at doing the housework is always appreciated and becomes happiness for her husband and children in the family This is also considered as the foundation for a happy family It is said that "Men build houses, women established their home." A woman can both cook well and organize everything in her house logically and orderly, which brings spiritual and physically for herself and her family Today's woman desires to both meet the requirements of social position and well complete role-play of a wife and mother in the family For that reason, they raise the demand for family care products especially to help creating delicious meals quickly but retaining flavorful and nutritional value for her family 2.2 Granules market analysis Vietnam is a country with an ancient culinary culture Characteristics of Vietnamese cuisine involves in "Strong fragrance" and "total quality air drips, multiple predicates", therefore culinary art lies in Vietnamese flavorings mix so that each dish has the taste, style and exclusive to each other Granules product has appeared in Vietnamese market just more than a decade, but this product has become one of the familiar flavorings in many meals of the family and restaurants Knorr is the first brand that appears in the market and is followed by other brands such as Maggi of Nestlé, Chinsu of Masan Food, Aji-ngon of Ajinomoto Annual consumption of Vietnamese consumers is about 1.500 tons granules (in which about 300 tons Knorr, approximately 400 tons Maggi, 200 tons Aji-ngon and some other local brands e.g Vifon, Thien Huong and some other small businesses) According to the survey from supermarkets like Coop Mart, Maxi Mart, Citimart, the level of favorite among flavorings brands is not much different In this industry, brands which have more attractive promotions and advertising activities, the consumption will be more The customers are not loyal to any certain brand now Because of potential market (expected annual growth rate of flavorings industry, especially those brands which can bring high usability for family meals will grow at 50% / year), the competition between brands to dominate the market will be more intense every day On Tet, beside special advertising programs, brands also invest on products to relaunch products with new improvement That shows the determination of brands in becoming the market leader 15  Not PLACE but CONVENIENCE As above, turn the standard logic around Think convenience of the buying experience and then relate that to a delivery mechanism Consider all possible definitions of “convenience” as it relates to satisfying the consumer’s wants and needs  Not PROMOTION but COMMUNICATION Communicate many mediums working together to present a unified message with a feedback mechanism to make the communication two-way/interactive Think of using nontraditional mediums, such as word of mouth Elements of IMC mix PROMOTIONAL ELEMENT MASS VS CUSTOMIZED PAYMENT Advertising Mass Personal selling Customized Public relations Mass No direct payment to media Sales promotion Mass Direct marketing Customized Wide range of fees paid, depending on promotion selected Cost of communication through mail, telephone, or computer Fees paid for space or time Fees paid to salespeople as either salaries or commissions STRENGTHS WEAKNESSES -Efficient means for reaching large numbers of people -Immediate feedback -Very persuasive -Can select audience -Can give complex info -Often most credible source in the consumer’s mind -Effective at changing behavior in short run -Very flexible -Messages can be prepared quickly -Facilitates relationship with customer - High absolute costs - Difficult to receive good feedback -Extremely expensive per exposure -Messages may differ between salespeople -Difficult to get media cooperation -Easily abused -Can lead to promotion wars -Easily duplicated -Declining customer response -Database management is expensive 16 Measurement  Rating (or Television rating - TVR): the percentage of people watching television at a specified time period  Gross Rating Points (GRPs): is the total sum of all the television rating points  Reach: percentage of total potential who have seen the ad at least once  Reach and frequency (R & F): This indicator is more precise & useful measures of audience delivery R&F tells us how many: People we reached Times we reached them  Effective frequency: The number of time our target audience needs to see an ad for it to be effective Defining effective Frequency for our brands is the most important media planning decision we can make Too low effective frequency consumers will not understand or remember our advertising- we could invest our budget with little effect Too high and we could be wasting money with little additional benefit  Effective reach: percentage of the target that has the opportunity to see our commercial at the right effective frequency level 17 CHAPTER 3: ANALYSIS ON MARKETING COMMUNICATON PLAN OF KNORR TER 2013 Tet is the biggest and longest traditional holiday in Vietnam Therefore, people spend much time to prepare for their special occasion such as house decoration, shopping, listing traditional and special dishes to worship ancestors and serve their family and friends Besides those things, the most important and meaningful on Tet of the Vietnamese is family reunion During the year, members are very busy with their own lives, and many of them are working or studying far from home Thus, Tet is the occasion for all members to pause everything and gather with their family On those days, people have chance to enjoy cozy meals together, share stories, happiness, even difficulties they have experienced during the past year, and exchange best wishes for a new year In other words, Tet is the precious moments that bring family members closer and closer It is grasping customs and meaning of Vietnamese Tet, Knorr has planned communication plan to transfer the message that brings Tet environment for all families across the country Target audience People who prepare meals at home for their loved ones every day, mainly mums are officers, workers, or housewives They are from 25 – 45 years of age, class ABC and people who have babies or not Communication plan of Knorr Tet 2013 Budget No Items Quantity Cost (mio VND) I TVC Promotion rate 38% 39.000 TVC+ Promotion tag on 1.500 Broadcasting (on 25 channels in weeks) 3.000 spots 37.500 II POSM activity 2% 1.700 III Promotion gift 60% 68.000 KMG 200g Bundle (Bowl) KMG 450gx (Bowl) 68.000 18 KMG 900g Bundle (L&L Box) TOTAL 100% 108.700 Key message  Thematic TVC “Canh ngon ngày Tết, sức khỏe dồi dào” or “Delicious soup for powerful health on Tet”  Promotion “Tặng hộp nhựa cao cấp Lock&Lock trị giá 114.000 VNĐ mua hạt nêm Knorr” or “ Lock&Lock Tet gift to the value of 114.000 VNĐ” Objective  Build brand loyalty and brand love of current Knorr users via attractive promotion Tet gift (Lock & Lock premium plastic box) and insightful Tet TVC  Build off-take (volume sales) of current users by encouraging them to buy more for purchase through offering them attractive gift for bundle (3 packs 200g/ packs 450g free premium Indonesia crystal bowl; packs 900g free premium L&L plastic box)  Build market share by converting competitors' users (who are promotion driving) through offering them attractive promotion gift Timeline ACTIVITY TRAFFIC OF TET 2013 Oct Nov Dec Jan Fe Week 43 44 45 46 47 48 49 50 51 52 KMG 200 g Bundle + Bowl Tet gift KMG 450g x + Bowl launch KMG 900g Bundle + Box ATL & BTL support TVC Instore Visibility Tet 19 Media channels Media channels ALT TVC+ promotion tag on Activities  Tet thematic TVC exploited topic about family reunion tradition on Tet, exchanging best wishes for each other, and enjoying homemade meals together The ad appeared densely on most of TV channels on gold hours to attract not only housewives but whole family also  Introducing premium Tet gift : Lock&Lock plastic box Website  Information about Tet promotion was updated on company’s web: http://www.knorr.com.vn/  Article on usage of L&L plastic for people’s health to help consumers well recognize premium value that only Knorr can offer BTL POSM Outstanding displays at supermarkets: Metro, Big C, Coopmart with mass, bulky, head of shelves, tactics and showing coordinated and combined products e.g vegetables corner to push combined purchase Also, exclusive presentation with eyecatching yellow theme, special promotion illustration of the year which is suitable with Tet festive mood Promotion There are packages of gift for Tet: crystal bowl for 2x KMG 450g, crystal bowl 3x KMG 200g, Lock&Lock plastic box for 2x KMG 900g This is the first time Knorr using L&L as a gift, thus which brings more added values for the brand and differentiates with other brands 20 Measurement  Thematic TVC and promotion tag on: Measurement Indicators Comparison 2013 vs 2012 2013 2012 R&F 83% @ 3+ 72% @ 3+ +11% @ 3+ GRP30 3043 GRPs 1150 GRPs 1893 GRPs Comparing with the result of 2012, percentage of target audience those who can see this TVC at least times increases 11% In fact, Knorr belongs to top of mind brands, so Effective Frequency is 3+ is medium for launching a new commercial Besides, GRP 30 in 2013 increase 1.6 times comparing with that of 2012 Conclusion: It shows TVC of Tet 2013 got the engagement with target audience and conveyed clear message  POSM and promotion program: Efficiency of POSM and promotion is measure via value share indicator as shown below: BrandsShareTrendsandGrowth Value%Share| PeriodEndingJAN13| Shareof Total Granules Table 3: Share performance of Knorr, Maggi, Aji-ngon in 2013 vs 2012 NATIONWIDE (Source: Unilever Internal Source) Source: Unilever Internal Source URBAN RURAL 21 Table 4: Lock&Lock awareness in 2013 vs 2012  Gain 12% no of people spontaneously heard  Gain 10% no of people prompted to remember  Conclusion: According to table 3, Knorr value share show positive points in consecutive months in urban In urban, market is stable and Knorr is the top brand in terms of value share Additionally, basing on the Lock&Lock awareness survey in November 2012 and February 2013, it shows a rise in the awareness of people of premium Lock&Lock brand, thus that pushes purchasing power for Knorr products in urban areas However, in rural, Knorr’s market share keeps unchanged and is lower than Aji Ngon It seems that promotion program at rural areas cannot reach the target partly because people in the countryside have not yet recognize the value of L&L Tet gift yet and then that causes low eagerness for buying behavior 22 CHAPTER IV: RECOMMENDATION FOR INTEGRATED MARKETING COMMUNIATION PLAN OF KNORR TET 2014 Key message  Thematic TVC “Everyone can cook like Mums” Usually, Tet of the Vietnamese is related to familiar subjects such as family love, reunion, exchanging best wishes and hopes for a new year, and especially warm meals in the family They are value which Knorr has exploited for those past communication campaigns For the year of 2014, those traditional values are continuing to promote but in a new view with subject  Cooking by heart because a delicious meal is origin for happiness  Honoring cuisine quintessence of the Vietnamese: In daily meals, the mothers still cook Vietnamese traditional dishes such as meat cooked with caramel, bitter melon soup for her family Nevertheless, on Tet, those dishes are more and more delicious because she cook by all her love, care, innermost feelings to bring the most standard meal of the year for her beloved and that meal could be called cuisine quintessence because it is the combination of true love and true recipe  Promotion “Lock&Lock Tet gift for family’s health” and cooking and nutrition handout Objective  Build brand loyalty and brand love of current Knorr users via attractive promotion Tet gift (Lock & Lock premium plastic box in urban and customized gift in rural) and insightful Tet TVC  Build volume sales of current users by encouraging them to buy more for purchase through offering them attractive gift  Build market share by converting competitors' users (who are promotion driving) through offering them attractive promotion gift in rural and keep market share in urban Target audience People are officers, workers, or housewives who prepare meals at home for their loved ones every day, mainly mums They are from 25 – 45 years of age, class ABC and have babies or not Media channels In granules market, elements that effect to sale are advertising and promotion So, to achive the above objectives, Knorr’s communication plan needs to remain advertising via thematic TVC, sales promotion and POSM  Thematic TVC: TVC 30s and promotion tag on 15s  Sales promotion: Customizing gift for different regions 23 In urban, premium Lock&Lock gift is still the key mechanic and the best choice to increase brand image for Knorr Moreover, other gift packages should be flexibly changed compared with those of 2013 to satisfy more target customers who are always eager to shop for eye-catching gifts on Tet In rural: Owing to the fact that people have not distinguish L&L brand with other domestic plastic brands e.g Dai Dong Tien, Duy Tan which are so accustomed to them, conducting research into “Favorite level of home appliances in rural” before making a decision if Knorr should keep the same gift packages in both areas or customize in the countryside  POSM: POSM tactics still develop as in those of 2013 in order to build offtake and attract target customers to choose Knorr Timeline Oct Nov Dec Jan Week 43 44 45 46 47 48 49 50 51 52 KMG 200 g Bundle + gift KMG 450g x + gift Tet promo launch KMG 900g Bundle + L&L product ATL& BTL support Thematic TVC Instore Visibility TET 2014 24 Communication plan of Tet 2014 Budget No Items Quantity Cost (mio VND) I TVC 42.900 Thematic TVC+ Promotion tag on Broadcasting (8weeks) II POSM III Promotion gift KMG 200g Bundle 1.650 ~ 3.100 spots 41.250 Promotion rate 37,92% 1.870 1,65% 68.350 60,43% 68.350 KMG 450gx KMG 900g Bundle Cooking and nutrition handout TOTAL 113.120 100% 25 CONCLUSION To survive and develop in competitive market, many companies need to continuously innovate their products with highest commitment about the quality Nowadays, brand Knorr is ranked first in granules market at 36 big cities, the result shows that marketing communication activities of this brand are effective in general However, the market share in rural region is not good as expected; after promotion program Knorr’s market share in rural is stable Besides, Knorr position in market is not safe, when its rank is changed in different market Knorr granules need to improve product quality and learn how to prevent bad public opinions about its quality in recent years Harsh competition and changed market are two elements that require Knorr has to protect its market well firstly, after that Knorr need to develop in long-term Vietnam is a potential spices market, so Knorr will be reach success if they focused on customers to their business 26 REFERENCES Unilever Internal Source http://www.knorr.com.vn/ Solvay Ads Course handout - Katrin Giebel Thesis “Analysis marketing plan of Knorr”- Huỳnh Thị Ngọc Diễm, Lê Thị Anh Đào, Lê Thị Mỹ Hằng, Master Hoàng Thọ Phú) http://www.brandsvietnam.com/574-Lich-su-nhan-hang-Knorr http://www.hatnem.com/tin-tuc/4-masan-food-va-nhung-cuoc-khuynhdao-thi-truong.html http://sgtt.vn/oldweb/cacsobaotruoc/365_20/p20_21_dobovaothitruonggia vi.htm http://luanvan.net.vn/luan-van/de-tai-phan-tich-ke-hoach-marketing-hatnem-tu-thit-knorr-50615/ http://www.unilever.com/aboutus/introductiontounilever/unileverataglanc e/ 10 http://www.reuters.com/article/2014/01/21/unilever-resultsidUSL2N0KO17S20140121 11 http://www.knorr.com.vn/article/detail/275176/l-ch-s-nhan-hang-knorr 12 http://www.unileverfoodsolutions.com.vn/products/brands/show/955.KN ORR.html 13 http://chinhphu.vn/portal/page/portal/chinhphu/noidungtinhhinhthuchien? categoryId=100002927&articleId=10053063 14 http://www.tin247.com/quang_cao_hat_nem_lap_lo_danh_lan_con_den3-22016708.html 15 http://vtc.vn/suc-khoe/hat-nem-98-khong-phai-tu-thit-xuong-80955.html 16 http://songmoi.vn/kinh-te-thi-truong/hat-nem-%E2%80%9Cmehoac%E2%80%9D-nguoi-viet-nhung-rat-it%E2%80%9Cdat%E2%80%9D-cho-hang-noi 17 http://www.doanhnhansaigon.vn/online/kinh-doanh/chuyen-laman/2013/08/1076105/hat-nem-bot-canh-dam-phan-ngoai-lat-phan-noi/ 18 http://www.saigon-gpdaily.com.vn/business/2012/11/103210/ 27 APPENDIX Picture 1: Key visual for Tet promotion 2013 Picture 2: Thematic TVC 2013 28 Picture 3: Outstanding in-store Table 5: Price of promotion gift packages of Knorr, Maggi, Aji-ngon in Tet 2013 BRAND IMAGE MECHANICS PRICE (VND) 2x KMG 900g + L&L plastic box 142.000 2x KMG 450g + crystal bowl 72.000 29 x KMG 200g + crystal bowl 51.000 packs 450g + crystal big bowl 123.000 packs 210g + crystal bowl 45.000 packs 450g + plastic box 62.000 (Tan Lap Thanh) pack 900g + plastic box (Sina Dai Dong Tien) 56.000 ... value from Knorr s gift From Tet 2013, we have withdrawn some good points, unachieved issues, and given some recommendations for Integrated marketing communication plan of Knorr Tet 2014 Continuing... recognize the value of L&L Tet gift yet and then that causes low eagerness for buying behavior 22 CHAPTER IV: RECOMMENDATION FOR INTEGRATED MARKETING COMMUNIATION PLAN OF KNORR TET 2014 Key message ... launching products, marketing campaigns that help to build sales at maximum level The objective of this project is to review and analyze integrated communication plan Knorr Tet 2013 and giving