TRƯỜNG ðẠI HỌC MỞ TP HCM UNIVERSITÉ LIBRE DE BRUXELLES HO CHI MINH CITY OPEN UNIVERSITY SOLVAY BRUSSELS SCHOOL MBMM4 TRẦN KHÁNH PHƯỢNG MARKETING PLAN FOR LAUNCHING ABBOTT CMR IN VIETNAM MASTER PROJECT MASTER IN BUSINESS & MARKETING MANAGEMENT Tutor’s Name: PGS.TS Nguyễn ðình Thọ Ho Chi Minh City (2010) Marketing plan for launching Abbott CMR in Vietnam Final Project Commitment This is the first marketing plan I have created based on the knowledge I gained from interesting marketing subjects in the Master Business & Marketing Management 20092010 course of Solvay Brussels School and HCM city Open University I commit that the project is completed with my high honesty I fully take responsibility for any mistakes or incorrect information given in this project Tran Khanh Phuong MBMM4 Marketing plan for launching Abbott CMR in Vietnam Final Project Acknowledgements Firstly, I would like to send great thanks to my tutor – the professor Nguyen Dinh Tho who has helped me a lot in giving orientation, advices and comments on how to build up a marketing plan Secondly, I would like to send many thanks to my professional mentor – Mr Le Hoang Cu who has given me the chance to understand more deeply the company’s business and useful information to set up the marketing plan I also want to say thank you very much to all professors for useful marketing knowledge in the Master Business & Marketing Management 2009-2010 course Finally, I would like to send special thanks to my darling husband who has heartily supported me to complete this project successfully Tran Khanh Phuong MBMM4 Marketing plan for launching Abbott CMR in Vietnam Final Project Tutor’s comments Tran Khanh Phuong MBMM4 Marketing plan for launching Abbott CMR in Vietnam Final Project CONTENT 2.1 2.2 2.3 3.1 3.2 4.1 4.2 4.3 5.1 5.2 5.3 7.1 7.2 7.3 Page Executive Summary General Introduction 10 Vision and Objectives of the project 10 Company 1611 Product 1016 Situation analysis 18 External analysis 18 3.1.1 The Vietnamese IVD market overview 18 3.1.2 Environment (SLEPT) analysis 19 3.1.3 Competition analysis 26 3.1.4 Target market analysis 27 Internal analysis 829 3.2.1 Profitability 29 3.2.2 Product analysis 30 3.2.3 SWOT analysis 32 3.2.4 Key success factors of Abbott CMR 32 Marketing strategy 33 Targeting 33 4.1.1 Segmenting criteria 33 4.1.2 Choosing the target 34 4.1.3 Target customers 35 Re-Positioning strategy in VN market 37 Objectives of the marketing plan 41 Marketing planning 43 Marketing program 43 5.1.1 Product 43 5.1.2 Price 46 5.1.3 Communication (Branding) 46 5.1.4 Distribution 48 5.1.5 Convincing target customers 49 5.1.6 Customer relationship management 50 Budgeting 50 Implementation and control 51 Biliography 57 Appendixes 58 Market research design 58 Results 61 Orginal questionaires 66 Tran Khanh Phuong MBMM4 Marketing plan for launching Abbott CMR in Vietnam Final Project Abbreviations ADD Abbott Diagnostics Division CMR Cardiac/Cardiovascular, Metabolic, Renal IVD In vitro diagnostic KOL Key opinion leader SWOT Strength, Weaknesses, Opportunities, Threats SLEPT Social, Legal, Economic, Political, Technical Tran Khanh Phuong MBMM4 Marketing plan for launching Abbott CMR in Vietnam Final Project Figures and Tables Page Figure 2.1: Performance graph of Abbott Laboratories in 2004-2009 15 Figure 2.2: Sales growth of ADD Vietnam in 2005-2009 16 Figure 3.1: Relative Risk of Cardiovascular Disease Associated with 19 Metabolic Syndrome Figure 3.2: Diabetes prevalence map 20 Figure 3.3: Vietnam real GDP growth rate and Inflation rate in 2007-2023 21 Figure 3.4: National Medical budget in 2000-2008 23 Figure 3.5: International aid in 2000-2008 23 Figure 3.5: BMI short-term political stability rating – Asia Pacific 2010 24 Figure 3.6: Clinical CMR review of a complex patient 31 Figure 4.1: Volume percentage of main segments in the Vietnamese IVD 33 market in 2008 Figure 4.2: The segmentation criteria based on potential customer’s characteristics 34 Figure 4.3: Value curve of Abbott CMR vs competitor (Roche) 38 Figure 4.3: Re-positioning strategy 40 Figure 4.4: Objectives of the marketing plan 42 Figure 5.1: Abbott CMR’s major characteristics 43 Table 3.1: The qualitative research’s data interpretation 27 Table 5.1: Budget for the communication campaign 51 Table 5.2: The implementation plan of Abbott CMR 51 Tran Khanh Phuong MBMM4 Marketing plan for launching Abbott CMR in Vietnam Final Project Executive Summary General Introduction This part provides a brief summary about company overview, product and the vision & objectives of the project - Vision & objectives of the project: The project is setting up a marketing plan to launch Abbott CMR in Vietnam in years (2011-2013) By launching Abbott CMR, Abbott Laboratories has ambitions to be recognized as a leader connecting cardio-metabolic and renal care from prevention and diagnosis to treatment and monitoring - Company: introduce Abbott Corporation’s history, reputation, branding values and business figures - Product: introduce Abbott CMR characteristics and its global business strategy Situation analysis This part provides the detailed analysis of the situation including external and internal analysis - External: it is a composition of data collected from the secondary research about Market (size, growth, trend), Environment (SLEPT: social, legal, economic, political and technical), Competition There is a qualitative research to explore target market’s expectations and decision making influencing factors - Internal: it gives some details about the company Profitability, Brand awareness & identity and Product Then the SWOT analysis and Key success factors of Abbott CMR gives very important strategic information as a background for the marketing plan described in the following part Marketing strategy This part provides the targeting approach and the re-positioning strategy in Vietnam IVD immunological market - Targeting: it gives the information on segmenting criteria, why we choose the target and the list of major target customers in this project - Re-positioning: it gives the information on re-positioning strategy of Abbott CMR with Core differentiation, Sustainable competitive advantages and Characteristics based on the value curve Tran Khanh Phuong MBMM4 Marketing plan for launching Abbott CMR in Vietnam Final Project This part also provides the smart objectives of the marketing plan which are required to achieve in the first 3years Marketing planning This is the key part of the project It provides all information about the marketing plan which is created based on the situation analysis and the marketing strategy The plan includes steps: Marketing program, Budgeting, Implementation and Control, in which marketing program will cover parts: Product, Price, Communication, Distribution, Convincing target customers and Customer relationship management Tran Khanh Phuong MBMM4 Marketing plan for launching Abbott CMR in Vietnam General Introduction 2.1 Vision and Objectives of the project Final Project Abbott Diagnostics is a division of Abbott Laboratories, an American broad-based healthcare company having 120+ year history and approximately 83,000 employees around the world, with products that span the continuum of care—from prevention and diagnosis to treatment and cure, and leadership in technologies and businesses across the spectrum of health care Abbott Diagnostics is a global leader in in vitro diagnostics (IVD) and offers a broad range of innovative instrument systems and tests The signature “A Promise for Life” is a commitment that the company wants to bring to customers who care about their health and life At Abbott, leading science and innovation are the key words to develop new products Not like the pharmaceutical or nutrition division, the business of Abbott Diagnostics division is B2B with target customers are hospitals, reference labs, blood banks, physician offices and clinics Moreover, as a kind of healthcare products, the IVD product is regulated by the Ministry of Health in most of countries in the world Therefore, the marketing of this product is limited to scientific activities like symposia, seminars, sponsoring for scientific studies… The new scientific application and innovative technology is the most important core differentiation of an IVD product An IVD product can be “alive” in the market until a new scientific application/ technology is discovered to improve health care, and it can be several years to several decades And Abbott CMR is a typical example for that, it is developed by Abbott Diagnostics to bring a new value to the diagnosis of CMR diseases for complex patients It is one of key products of Abbott global marketing strategy to strengthen Abbott’s top position in global IVD immunochemistry market in the coming time By launching Abbott CMR, Abbott Laboratories has ambitions to be recognized as a leader connecting cardio-metabolic and renal care from prevention and diagnosis to treatment and monitoring In this project, I will introduce you a marketing plan to launch Abbott CMR in Vietnam in 2011 The marketing plan for Abbott Diagnostics’ new IVD products is usually set up for 3-5 years which will cover whole growth stage of the product life cycle before declining in the market (there Tran Khanh Phuong 10 MBMM4 Marketing plan for launching Abbott CMR in Vietnam Final Project brand video ) Finance - Review the department and distribution Jan 2011 30 Jan 2011 Jan 2011 30 Jan 2011 Jan 2011 30 Jan 2011 30 Jan 2011 Feb 2011 the management agreement team - Set up target sales and incentive/bonus scheme Scientific Trainings about Affairs team, selling skills, Product product Specialists & information Sales team, Distributors Sales team - Create special team to train on how to measure customer satisfaction index - Assign one person as Key account manager 1st meeting Scientific - To review review Affairs team, collected data Product - Analyse to Specialists & give directions Sales team for setting price range and detailed Tran Khanh Phuong 52 MBMM4 Marketing plan for launching Abbott CMR in Vietnam Final Project communication plan Stage – Scientific - Select the list Communication Affairs team of the invitees plan - Prepare for the Feb 2011 28 Feb 2011 28 Feb 2011 20 Mar 2011 round table discussions (3 separate round table discussions with top KOLs in C, M, R fields, final round table discussions with integration of top KOLs in all C, M, R fields) Stage – Scientific - Select the list Communication Affairs team, of the invitees plan Product - Prepare for the Specialists & scientific Sales team symposia with (North, Central, the invitees of South) top clinical physicians in CMR fields (1 in North, in Central, in South at the same time) Tran Khanh Phuong 53 MBMM4 Marketing plan for launching Abbott CMR in Vietnam Stage – Scientific - Select the list Communication Affairs team, of the invitees plan Product - Prepare for the Specialists & national Sales team utilization Final Project 20 Mar 2011 30 Mar 2011 Apr 2011 Apr 2011 Apr 2011 30 Mar 2014 symposium with the invitees of lab managers of sub-clinical departments (immunological testing laboratories) of target hospitals and clinics 2nd meeting Scientific - Analyse and review Affairs team, evaluate the Product results/ ideas Specialists & from stages Sales team - Discuss detailed Field action plan Field action Sales team, - Weekly plan plan (bilateral distributors to visit target with customers distributors) - Local seminars - Explore & customize their needs - Offer the Tran Khanh Phuong 54 MBMM4 Marketing plan for launching Abbott CMR in Vietnam Final Project contracts - Coordinate with logistics team to prepare inventory Quarterly Special team Measure customer customer satisfaction satisfaction surveys index Monthly review Scientific - Evaluate and Affairs team, correct the field Product action plan Specialists & - Review Sales team, inventory Distributors management Apr 2011 30 Mar 2014 Apr 2011 30 Mar 2014 - Evaluate customer satisfaction index and give corrective & preventive actions - Review key customer relationship management - Evaluate achievements vs objectives Yearly Kick-off Whole - Review 30 Mar 2012 meeting company, business 30 Mar 2013 Tran Khanh Phuong 55 MBMM4 Marketing plan for launching Abbott CMR in Vietnam distributors Final Project achievements of 30 Mar 2014 a whole year (end of - Identify the financial year) gaps and update the plan Tracking Monthly review: Evaluation and correction Yearly business review (kick-off meeting): Identify the gaps and update the plan Post-market surveys: carried out by the end of each year (2011-2013) to evaluate the brand identity indexes (awareness, perceived values) and market penetration (usage%) compared with objectives Planning Phases & Milestones Tran Khanh Phuong Planned deadline Tracking Problems to solve Recommendations 56 Decisions Revised deadline MBMM4 Marketing plan for launching Abbott CMR in Vietnam Final Project Bibliography Prof Jean-Pierre Aerts – Business & Marketing Planning course materials – Master of Business & Marketing Management (2009-2010) Prof Jean-Pierre BAEYENS – Strategic Marketing course materials – Master of Business & Marketing Management (2009-2010) Prof Christian Bluemelhuber – Creating & Managing Brands course materials – Master Of Business & Marketing Management (2009-2010) Prof Alain Van den Eynde – Marketing & Business Communication, P.R and Advertising course materials – Master Of Business & Marketing Management (2009-2010) Prof Claire Gruslin – Market Research, BIS & Competitive Intelligence course materials – Master of Business & Marketing Management (2009-2010) W Chan Kim & Renée Mauborgne – Blue Ocean Strategy – Harvard Business School Press 2005 Tran Khanh Phuong 57 MBMM4 Marketing plan for launching Abbott CMR in Vietnam Appendixes 7.1 Market research design Final Project Objectives of the research To understand deeply about the current diagnosis and treatment process and the future trend of CMR fields in Vietnam Research methodology Exploratory, using qualitative research to collect data Research tools Depth interview with experts (laddering*) * Laddering is a qualitative technique using depth interviews to evaluate the significance consumers attach to products or services” (de Ruyter and Scholl 2005) Sample: Purposive sampling with panel of experts* Top KOLs (key opinion leaders) in CMR fields of the healthcare industry * Purposive sampling with panel of experts: a sample of persons with known or demonstrable experience and expertise in some area (William M.K Trochim 2006) The Questionnaires: No Variable Type of question Comparison of complex patients vs Cardiac, Qualitative question Metabolic and Renal patients The current diagnosis and treatment procedure of Open ended question a complex patient Issues of this procedure Open ended question The coming trend of diagnosis and treatment Open ended question procedure of Cardiac, Metabolic and Renal diseases Benefits of screening tests for Cardiac, Metabolic Open ended question and Renal diseases at one time vs doing separately Tran Khanh Phuong 58 MBMM4 Marketing plan for launching Abbott CMR in Vietnam Final Project The English translated version of Questionnaires Interviewee’s information (the interviewer fill in): Full Name- Academic title- Degree : ……………………… Specialty : …………… Position: ………………… Working place : …………… Interview venue: □ Working place of the interviewee □ Private medical practice of the interviewee □ The interviewee’s house Interview length: ~60-90 minutes (not limited) The content of the interview : Greetings Greetings to the professor …(Full Name- Academic title- Degree) ! We’d like to say thank you very much for spending your time to join this interview of Abbott Diagnostics Vietnam How are you doing? How’s busy of your job? Short introduction about the company and products (10 minutes) Explain the purpose of the interview: - With the increasing demand of diagnosis and treatment for complex patients including cardiac, metabolic and renal diseases in the world, today we conduct the interviews with top KOLs in CMR fields to understand deeply about the current diagnosis and treatment process and the future trend of CMR fields in Vietnam Questions: Can the professor tell us that the rate of complex patients compared with separate cardiac, metabolic and renal increase/ decrease in recent years? (how much increase/ decrease?) (explain more: complex patient = cardiac disease patient having symptom/ history of metabolic and/or renal diseases and vice versa, the interviewer make question according to the specialty of the interviewee) The current diagnosis and treatment procedure for a complex patient? Tran Khanh Phuong 59 MBMM4 Marketing plan for launching Abbott CMR in Vietnam Final Project To your opinion, what are issues of this procedure? To your opinion, how is the future trend of diagnosis and treatment procedure in cardiac, metabolic and renal fields in Vietnam? What is the benefits of a physician of any cardiac, metabolic and renal department assigning the screening tests for all of these diseases at one time for a complex patient compared with doing separately? Tran Khanh Phuong 60 MBMM4 Marketing plan for launching Abbott CMR in Vietnam 7.2 Final Project Results The table below shows all data collected from the survey: No Interviewee Dang Van Phuoc Academic title- Degree Specialty Position Working place Professor - MD, PhD Cardiac Senior Professional consultant, Retired Former principal of University of Medicines and Pharmacy of HCM city Pham Nguyen Vinh Professor - MD, PhD Cardiac Senior Professional consultant Tam Duc hospital Pham Van Bui MD, PhD Renal Head of department 115 hospital Do Kim Que Md, PhD Cardiac Vice director Thong Nhat hospital Do Doan Loi Professor - MD, PhD Cardiac Vice director Bach Mai hospital Tran Khanh Phuong 61 MBMM4 Marketing plan for launching Abbott CMR in Vietnam Q Variable Comparison of complex patients vs Cardiac, Metabolic and Renal patients The current diagnosis and treatment procedure of a complex patient Tran Khanh Phuong Interviewee The percentage of complex patients are higher and higher Interviewee Complex patients are increasing rapidly, especially obesity or diabetes Complex patients are diagnosed and treated cardiac, metabolic and renal diseases separately Complex patients are diagnosed and treated cardiac, metabolic and renal diseases separately 62 Final Project Interviewee Complex patients are increasing rapidly, chronic kidney disease is a high risk to get other cardiac and metabolic diseases A complex patient is diagnosed with a whole set of sub-clinical tests before and after a renal surgery The surgery requires high accuracy so the diagnosis is very important to make sure that the patients are safe and ready for the surgery as well as monitoring their health after the surgery MBMM4 Interviewee Complex patients are increasing rapidly, cardiovascular disease is a high risk to get other metabolic and renal diseases Safety is the most important concern for a complex patient in a cardiac surgery Therefore, pre- and post-testing play essential role for a surgery as they impact on the patients’ safety and health Interviewee Complex patients are increasing rapidly, especially obesity or diabetes As a national reference hospital, we receive many patients having difficult and complex diseases, especially Cardiac, Metabolic and Renal diseases Therefore, we focus on the diagnostic testing by investing new and innovative technology and tests with high quality in order to serve the diagnosis and treatment better Marketing plan for launching Abbott CMR in Vietnam Issues of this procedure Tran Khanh Phuong Physicians of Cardiac, Metabolic, Renal department already knew the relation of these diseases, but due to low healthcare expenses from the government and limited budget of patients, the diagnostic testing tends to economic saving Therefore, in any department, if the physicians see other symptoms besides their Physicians of Cardiac, Metabolic, Renal department already knew the relation of these diseases, but according to hospital’s regulation and physicians don’t want to take more responsibilities and to avoid conflicts with their colleagues, they just assign tests of their departments for a complex patient 63 Final Project We requires the most standardized and best quality tests for patients To my point, the quality of subclinical testing in VN is much lower than in developed countries in the world Therefore, skills and knowledge of physicians are good but there is still high risk of errors MBMM4 Currently we are trying to improve the diagnostic testing for Cardiac, Metabolic and Renal diseases much better to support the surgery requirements However, it doesn’t mean that we misuse diagnostic tests I recommend the physicians to take it into careful consideration when assigning tests for patients As a result of careful consideration when assigning tests for patients, although physicians already knew the relation of Cardiac, Metabolic and Renal diseases, they never assign additional tests for complex patients and the patients have to visits many departments for their treatment Marketing plan for launching Abbott CMR in Vietnam The coming trend of diagnosis and treatment procedure of Cardiac, Metabolic and Renal diseases specialty, they just advise their patients to get further visits to other departments if possible but not assigning further tests The government will invest more in the healthcare system so that the diagnosis and treatment procedure of Cardiac, Metabolic and Renal diseases will be improved better Benefits of screening tests for Cardiac, Metabolic and Renal diseases at one time vs doing It will reduce the time for diagnosis and treatment for complex patients Early or timely detection can help to reduce cost for treatment, especially Tran Khanh Phuong Final Project VN hospitals try to update the global trend of diagnosis and treatment procedure of Cardiac, Metabolic and Renal diseases and apply it timely into their practice, especially less expensive tools Improving sub-clinical testing is one of the government focus in the coming time We will have opportunities and enough budget to use the most standardized and best quality tests for patients In vitro testing is less expensive than other diagnostic tools If there will be a comprehensive assay menu for diagnosis of Cardiac, Metabolic and It will reduce the time for pre- and postsurgery diagnostic testing 64 MBMM4 Improving sub-clinical testing is one of the government focus in the coming time We will have opportunities to approach and apply global trend of diagnosis and treatment procedure of Cardiac, Metabolic and Renal diseases It will reduce the time for pre- and postsurgery diagnostic testing and avoid extra costs for other testing The diagnosis and treatment procedure of Cardiac, Metabolic and Renal diseases for complex patients will be improved to save time and total cost It is a very good way to save time and total cost Marketing plan for launching Abbott CMR in Vietnam separately Tran Khanh Phuong serious diseases Final Project Renal, it will save total costs for complex patients 65 MBMM4 Marketing plan for launching Abbott CMR in Vietnam 7.3 Final Project Original questionnaires Next pages are the actual Vietnamese version used for the survey Tran Khanh Phuong 66 MBMM4 ... 42 60 80 100 MBMM4 Marketing plan for launching Abbott CMR in Vietnam Marketing planning 5.1 Marketing program Final Project It is a marketing plan for B2B business As a kind of healthcare products,... Khanh Phuong MBMM4 Marketing plan for launching Abbott CMR in Vietnam Final Project Tutor’s comments Tran Khanh Phuong MBMM4 Marketing plan for launching Abbott CMR in Vietnam Final Project CONTENT.. .Marketing plan for launching Abbott CMR in Vietnam Final Project Commitment This is the first marketing plan I have created based on the knowledge I gained from interesting marketing subjects