Bugstop

AU REVOIR TEAM

Tam Chan Company

Agenda

• Company Background Information

• Market Research & Analysis

• SWOT analysis

• Product

• Pricing

• Promotion

• Place

COMPANY INFORMATION

History

• Established in Nov 2008 by Mr. Vu Khac Hao

• 7 office staffs & 10 workers

• Manufacture doors in Vietnam or from Korea, then import to

Vietnam.

• Mission Statement

▫ Building long term relationship with customers through offering

quality products, reasonable as well as competitive price and provide

thoughtful customer service

Location

• Tam Chan Co Ltd (Import & Export –

Trading – Manufactoring)

Address: , Dakao ward, Dis. 1, HCMC

Tel: (08) 3827 4114

Fax: (08) 3924 6061

Website: www.tamchansteel.com

• Manufacturing facility

Address: 403/15 Huong Lo 3, Binh Hung Hoa

ward, HCMC

Objectives

• 15% of annal growth rate in first 3 years

• Brand recognition

• Diversify products

• Aim of achieve 35% anti-mosquito bracelet market

• 25% sales inscrease after 2 years for doors

• 15% sales increase after 2 years for anti – mosquito bracelet

• Human resource investment and staff training

Product

• Anti-fire doors (Made in Vietnam & Import from Korea)

• Anti-mosquito bracelets

Organization Structure BOARD OF DIRECTOR

Mr. Nguyen Van CuongMr. Jun Kyung Bae

Mr. Kwak Jang Soon

DIRECTORMr. Vu Khac Hao

FINANCE DEPARTMENTMr. Dao Thanh Nghiem

SALES DEPARTMENTMr. Nguyen Ngoc PhuongMr. Le Duong Anh Hung

MANUFACTURING FACILITYSupervisor

MANUFACTURING FACILITY15 workers

Business Strategy

Tam Chan is low-cost leadership

because:

• The price is the

cheapest in compare with

others.

• Providing more values

to customers and target

market is broad, focusing

on children and people

who like travelling

MARKET RESEARCH & ANALYSIS

1. Industry Overview

2. Market Opportunity

3. Market Segmentation

Industry overview

• Many types with different smells and designs

• Market for bracelets is new and has few participants

• The product is convenient and presents fashionable trend of youth

Promising and potential

Market opportunity

• Decrease in import duty rate

▫ Import more commodities in higher volume with less import duties

• Market size

▫ Adult market

▫ Tourist market

Adult Market

• HCM population: 6,347,000 (General Statistic Office 2007)

• 69%: purchase product for

children

• 73%: purchase product for

family without caring about

price increasing.

Through a rough estimation,

can get 12% 761,640

Tourist market

• International visitors: on average, about

1.2 millions foreigners visit Vietnam

each year.

• Local visitors: contribute about 20% of

total revenue of the country tourism.

• estimated that about 3,500 of tourist

will interested in BUGSTOP

Market segmentation

• Geographic

▫ HCM city

• Demographic

▫ Age: 12 – 30 years old due to its youthful design

▫ Gender: both boys and girls

▫ Income: affordable for all classes of society

• Behavior

▫ Occasion: rainy and summer seasons

SWOT analysis

•Strong competition from indirect competitors•Low barrier to entry

•Raising awareness of health in the society•No dominant firm in this field

ThreatsOpportunities

•Small budget •Lacking of human resource•Problem of storing and warehousing.

•Exclusive importer of BUGSTOP bracelet.•The support of 2 Korean members of board of directors of supplier.•Quality of the product is stable and certified.

WeaknessesStrengths

CUSTOMER STRATEGY

Buying decision

Problem recognition

X

Habitual

decision

making

Low involvement High involvement

Habitual decision making Limited decision making Extended decision making

Information search

Social othersGeneral purpose

mediaNon-

commercial

salespeopleAdvertising, information

Commercial

PersonalImpersonal

Expand information resources on the main website.

Advertising on various websites.

Anti-mosquito bracelet

Evaluation of Alternatives

• Use surrogate indicators

• Instruction + origin + quality certification on the package

Store selection – Purchase decision

• Customers choose the stores or supermarkets that are popular and reliable

Point of Purchase display, selective distributors

Post purchase evaluation

• Magnitude of the dissonance is small.• Customers can take public reaction.

• clear instruction written in Vietnamese must be on the package

• hot-line contact

Product

FRONT BACK

Figure 3: Design of package

LOGO

BRAND NAME

SLOGAN means

Bye-bye bugs

• Core benefits

• Package design

• Features

• Made in Korea with

local ingredients

• Smell & materials are

tested by official testing

institutes of Korea

Competitors

• Direct • Indirect

PRICING

MARKET

PENTRATION

VALUE-BASED

PRICING

Market Penetration

• Retail price 25,000vnd

• Reasons:▫ To satisfy the goal of market share leadership▫ discourage the competition

Value-based pricing

• low price must be in the range of prices of the competitors

• Reason:▫ Avoid negative reaction from customers

Pricing adjustment

18, 50018,00017,50017,00016,000

26%28%30%32%36%

70 - < 100100 - < 300300 - < 500

500 - < 1000> 1000

Price (vnd)Discount rateQuantity

PROMOTION

Promotion Strategy

Push strategy

Pull strategy

Tam Chan Wholesalers Retailers

Promotional Campaigns

Customers

Tam Chan Distribution Channels Customers

Order

Objectives of Promotion

Short-term objective:

Achieve 25% market share in anti-mosquito bracelet industry

Appeal more than 30,000 new customers

Increase the sales and profit 10% monthly

Raise gradually the number of order received from many wholesales and retails

Long-term objective:

Acquire 35% market share in anti-mosquito position within three years of operation The annual sales should be increased each 60% Reach the awareness and high reputation of existing customers in domestic Open 5 main branches owned by Tam Chan chain across Vietnam after 3 years

operating

Television advertising

• A tool that spread their new product to customers quickly and widely

• Efficient choice for achieving the awareness from customers

• Vietnamese people have habit to watch television everyday

Newspaper & Magazines

• Cost spent is less than TV• Many people read newspaper and magazine to

get information everyday• Easy to store for future view

Internet

• Most convenient and popular tool that used a lot for communicating and providing information quickest

www.ngoisao.net, www.dantri.com.vn, www.tuoitre.com

www.tamchansteel.com

Others promotional activities

• Sponsor for game show“Sieu thi may man”, “Hay chon gia dung”

Others promotional activities

• Hang banners on public places

DISTRIBUTION

Distribution Channel

CROSS DOCKING

reduce negative cash flow

solve the problem of warehousing

FINANCIAL DESIRED OUTCOMES

Thank you for listening!

References• Dengue Fever – Information Sheet, viewed 2nd September 2009, WHO Regional

Office for South-East Asia, <http://www.searo.who.int/en/Section10/Section332_12647.htm>.

• Haub, C 2009, An Overview of Population and Development in Vietnam, Population Reference Bureau, viewed 2nd September 2009, <http://www.prb.org/Articles/2003/AnOverviewofPopulationandDevelopmentinVietnam.aspx>.

• High number of off-season petechial fever patients worries medical staff, viewed 2nd September 2009, Vietnamnet, <http://english.vietnamnet.vn/social/2008/02/769464/>.

• Ho Chi Minh Population, in Population and population density in 2007 by province, General Statistic Office Of Vietnam, viewed 1st September 2009, <http://www.gso.gov.vn/default_en.aspx?tabid=467&idmid=3&ItemID=7354>.

• Quester, P 2007, ‘Problem recognition’, in Consumer Behavior – Implication for Marketing strategy, 5th edn, McGraw-Hill, Australia, pp. 64-89.

• Quester, P 2007, ‘Information search’, in Consumer Behavior – Implication for Marketing strategy, 5th edn, McGraw-Hill, Australia, pp. 90-123.

• Quester, P 2007, ‘Evaluating and selecting alternatives’, in Consumer Behavior – Implication for Marketing strategy, 5th edn, McGraw-Hill, Australia, pp. 124-150.

• Quester, P 2007, ‘Outlet selection and product purchase’, in Consumer Behavior – Implication for Marketing strategy, 5th edn, McGraw-Hill, Australia, pp. 152-185.

• Quester, P 2007, ‘Post purchase processes’, in Consumer Behavior – Implication for Marketing strategy, 5th edn, McGraw-Hill, Australia, pp. 186-221.