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VUON XUAN TANG ME – FLOWERS FOR MOTHERS IMC Audit Report

Bachelor of Commerce Program ASSIGNMENT COVER PAGE

Your assessment will not be accepted unless all fields below are completed

Subject Code: MTKG 1257

Subject Name: Marketing Communication

Location where you study: RMIT Vietnam – Saigon South Campus

Title of Assignment: IMC Audit

File(s) Submitted IMC Audit_Omo.docx

Student name & ID: Pham Trung Hau (s3210161)Nguyen Viet Hung (s3210087)Au Nguyen Minh Thi (s3210165) Luong Bao Tram (s3210126)Dang Thanh Truc (s3192874)

Learning Facilitator in charge: Melvin Fernando

Assignment due date: March 22nd, 2010

Date of Submission: March 21st, 2010

Late Submission Approval

Number of pages including this one: (Please number your pages like this: page 1

of 7, page 2 of 7, etc)

14 pages

Word Count:(Main Content)

1635 words

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VUON XUAN TANG ME – FLOWERS FOR MOTHERS IMC Audit Report

EXECUTIVE SUMMARY

Rarely does one brand could achieve the position Omo has gained in Vietnam within the last ten

years. Against Tide, Omo is taking the lead in detergent market by currently holding 60% market

share. Omo have been following one single message about developing children to the fullest,

which aims right to the concentration of Vietnamese society and culture. Various marketing

campaigns have been launched successfully. Hereby we researched and analyzed the usage

effects on integrated marketing communication tools on specific campaign “Vườn Xuân Tặng

Mẹ” – Flowers for Mothers (December 2009 – February 2010).

Three elements: product, price and place of the campaign’s marketing mix were briefly

examined. The promotion factor broke down into three different marketing communication tools

including public relations, advertising and e-marketing.

Two PR activities within this campaign that drew attention of at least 50,000 people was the

“Flowers for Mothers” program, which enabled children in elementary schools grow their own

flower pots as Tet gifts for their Mothers, and the exhibition of a giant mosaic flower picture.

Though the campaign created positive responses from the community for its meaningful

message, yet its influences narrowed down to Ho Chi Minh City area only.

Advertising on TV on VTV1, VTV3, HTV7 & HTV9 channels in golden hours between news,

drama and game-shows were considerably the most effective tool because of the enormous

number of customers Omo were reaching. Also, magazine advertisements & articles about the

campaign were widely published on Tiep Thi Gia Dinh, The Gioi Phu Nu & Phu Nu Chu Nhat

which helps Omo reach 180,000 target customers. Street billboards and bus station banners also

added to the chance bringing this campaign to the attention of broader coverage.

The campaign’s website http://www.vuonxuantangme.com/ had a great interface for children

with lots of effort yet since Omo has not properly advertised the website link to public, its

influences were underestimated.

Omo should apply 360o touch points in wet markets and small grocery stores where it could

catch attention of more target customers. With simple & inexpensive point-of-purchase displays,

Omo could increase significantly the awareness of customers of their campaign as well as

constantly remind customers of Omo, or even take over competitors’ market share. Omo also

need more effort in promoting their e-marketing tools for possible higher achievement.

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VUON XUAN TANG ME – FLOWERS FOR MOTHERS IMC Audit Report

TABLE OF CONTENTS

1. Introduction ...............................................................................................................5

2. Analysis of marketing mix.........................................................................................5

2.1...............................................................................................................................Produc

t............................................................................................................................5

2.2...............................................................................................................................Price

..............................................................................................................................6

2.3...............................................................................................................................Place

..............................................................................................................................6

2.4...............................................................................................................................Promot

ion........................................................................................................................7

2.4.1. Public Relations.......................................................................................7

2.4.2. Advertising...............................................................................................8

2.4.2.1.............................................................................................................Televis

ion......................................................................................................8

2.4.2.2.............................................................................................................Magazi

nes......................................................................................................9

2.4.2.3.............................................................................................................Bus

stations/Street billboards....................................................................10

2.4.3. E-marketing..............................................................................................10

3. Recommendation.......................................................................................................12

4. Appendix....................................................................................................................13

5. References..................................................................................................................14

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1. INTRODUCTION:

Entering the detergent market in Vietnam since 2000, Omo has

built credibility in customers’ consciousness as high quality

detergent which resulting in 60% market share against its

competitors, especially Tide (P&G). However, the more new

entrances enter detergent market, the more competitive it becomes.

To maintain the market leader position, Omo has launch lots of

marketing campaign. Here we mainly focus on “Vườn xuân tặng

mẹ” – Flowers for Mothers campaign started in December 2009 – February 2010. The

campaign’s purpose is to remind customers about Omo brand as well as build up a good image in

community.

2. ANALYSIS OF THE MARKETING MIX:

2.1. PRODUCT:

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Potential product

Augmented product

Expected product

Actual product

Brand name of UnileverConvenience packagingAble to remove most stains on clothesWashing task lighter & simplier

Core product

Cleaned clothes - brighten & whiten

• Gentle smell• Cause no harm to hand skin

• Provide different type of detergent for different washing type (hand washing or washing machine), with same amount of detergent Omo enable customers to wash more clothes.

• Able to participate in promotion programs & events of Omo

• Reduce environmental impacts (Omo Small & Mighty)

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Customers

VUON XUAN TANG ME – FLOWERS FOR MOTHERS IMC Audit Report

2.2. PRICE:

Omo has applied value-based and competition-based pricing strategies with slightly

higher prices than other competitors.

Table 1. Price comparison between Omo and Tide

Omo 3 kg

Price: 116.500 VND

Tide 3 kg

Price: 86.000 VND

Omo Red 800 g

Price: 26.000 VND

Tide 800 g

Price: 26.000 VND

Omo Red 400 g

Price: 13.500 VND

Tide 400 g

Price: 8.500 VND

2.3. PLACE:

Omo applies “intensive distribution channel” which consists of independent retailers,

wholesalers and producers seeking for profit maximization of its own sake.

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OMO manufacturer

Wholesale1

Retailer 1 Retailer 2 Retailer 3

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2.4. PROMOTION:

2.4.1. PUBLIC RELATIONS:

“Vườn xuân tặng Mẹ” (Flowers for Mothers) started in December 2009, Omo

initiates this program in 39 elementary schools in big cities of Vietnam (Ha Noi, Hai

Phong, HCMC, Da Nang, Can Tho) with the intention of helping children express

their gratitude and appreciation to their Mothers through planting flowers as gifts.

Figure 1. Ceremony at Dinh Tien Hoang elementary school (10-01-2010)

Afterwards, a giant picture at 13mx6m - made by artist Nguyen Ngoc Duc using

mosaic techniques with 300,000 silk flowers representing 14,000 flower pots planted

by students – was displayed in Flower Festival in Tao Dan park (on Nguyen Thi

Minh Khai St.) from 04/02/2010-23/02/2010 (Dantri 2010).

Figure 2. Mosaic flower picture at Tao Dan park (04/02/2010)

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This PR event aims to family-oriented culture of Vietnam and the concern of

Vietnamese society on rising a new generation. There was 14,000 flower pots were

grown, equivalent to 14,000 students participated in this program, which implies

approximately 50,000 people1 are involved. In Tet holiday, Vietnamese people have a

tradition to visit Flower Festivals. Hence, choosing right place and right time to

display the mosaic flower picture was very successful in attracting people’s attention

about Omo’s campaign.

Using “feature stories” and “sponsored events” (O’Guinn et al. 2009) as tools of this

PR activities, Omo campaign drew great impression. Thus, different magazines,

newspapers and websites wrote many articles complimenting this event.

Consequently, positive image of Omo has duplicated in even broader coverage. With

positive responses from the meaningful message, it created a base for following

campaign to easily magnetize people’s concentration in the purpose of reminding

Omo brand-name.

However, Omo seems to spend more effort in HCMC (mosaic flower picture was

only available in HCMC) whereas the influences of this campaign in other cities was

not so maximized to the fullest as the beginning intention. In the future, the direct

competitor of Omo (Tide) might have competitive campaign to gain back the market

share Omo has taken.

2.4.2. ADVERTISING:

2.4.2.1. TELEVISION:

Channel Program Time Viewer rating

VTV1 “Chào buổi sáng” news

“Sức sống mới” talkshow

Drama

6am-7am

11am-12am

12am-1.30pm

8pm-9.30pm

VTV3 Drama

Game shows

12am-1.30pm

9pm-10.30pm

8pm-9pm

HTV7 “Chào ngày mới” news 6.30am-7am

1 On a basic of 3 people per family

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Drama

Game shows

11am-2am

9pm-10.30pm

8pm-9pm

HTV9 Drama 11am-12pm

6pm-7pm

TV advertisement is currently the main channel of OMO to introduce about the

campaign. The TV commercial for this campaign follows “resonance” advertising

style which reflects consumers’ “slice of life” (Shimp 2010). This advertisement told

a story of the child when he saw his Mom preparing a Tet gift for his Grandma, then

he realized that he also should do something for Mom. He planted a flower pot and

together with his friends, they made a special garden to thank Mothers. It made their

clothes become dirty but they did not worry about that because Omo’s slogan

appeared “Learn good things, ignore dirtiness” with the last touching scene: Mothers’

happiness when receiving beautiful flower pots from their beloved children. This

advertisement successfully delivered Omo’s idea and message to customers

(Simplicity), easy to understand (Concreteness), touchy and meaningful message that

suits Vietnamese culture, easily get into people’s mind by simple language

(Storytelling).

The regular appearance on top viewing channels of Omo’s advertisement not only got

customer awareness for this campaign but also reminded them about Omo brand

name. Moreover, it creates a linkage to its PR activity (mosaic flower picture) that

brings instant recognition of customers of Omo sponsor to PR activity (mosaic flower

picture). Despite of the great influences, the advertising cost takes a large proportion

in this campaign’s budget.

2.4.2.2. MAGAZINES:

Magazine Number of prints Area

The gioi Phu Nu 50,000 Nationwide

Phu Nu Chu Nhat 10,000 Ho Chi Minh City

Tiep Thi Gia Dinh 120,000 Nationwide

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Omo has chosen well-known magazines that have same target customers. The choice

to use magazines as part of the campaign perfectly suits the objectives of Omo to

remind people about their product because of the reading petition ability of

magazines. Basically, this advertising method helps Omo reach around 180,000 target

customers effectively.

2.4.2.3. BUS STATION/STREET BILLBOARDS:

Large billboards at bus stops and on the walls of buildings on main streets (Nguyen

Van Cu, Nguyen Tri Phuong, Nguyen Thai Hoc, etc.) displayed poster of this

campaign could effectively remind people about Omo product as well as informing

the campaign a huge numbers of customers passing by these billboards every day.

2.4.3. E-MARKETING:

Omo developed the website http://www.vuonxuantangme.com/ with outstanding interface

that certainly attracts children users. Besides the purpose of popularizing the campaign to

website visitors, Omo also creates a built-in “flower planting” game whereas users could

choose flower type, color, pot shape, grow, water and send as gifts to family and friends. It

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Figure 3. Magazine articles about the campaign

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also has an online Vietnamese tradition lesson book in colorful pictures and poetry for

children. Through this website, Omo provided one more channel for customers to get

information about this campaign. Since the internet users have increased significantly, the

number of customers acknowledging of a product accordingly enlarged. Thus, owning a

website becomes Omo’s competitive advantage in introducing new

product/promotion/campaign. However, this website link was not introduced widely on TV

ads, and even appearing in magazines, the link was presented in very small size that could

not get customers’ attention easily, thus could not maximize its potential influences.

Figure 4. Screenshots from Vuon Xuan Tang Me website

Overall, the campaign is successful in building brand image and reminding customers about

Omo by “speaking in one single voice” to the market. However, the influence of this

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campaign might not be long-lasting due to some reasons. Firstly, Omo did not support much

sales promotion to encourage immediate purchase. Secondly, although Omo almost achieved

“360-degree branding”, there were lack of touch-points at important places where their target

customers were.

3. RECOMMENDATION:

Although OMO has a powerful marketing campaign, there are some points Omo should improve

to enlarge their segment.

Firstly, OMO should spread campaign’s influences by applying 3600 touch point in different

places. Undoubtedly supermarket is the place gathered most Omo’s target customer; yet, not all.

Currently, many women still choose wet markets or small groceries which are near their resident

area. Due to convenient reason, those places would be a better choice. In HCMC, there are about

100 supermarkets which definitely cannot satisfy the big demand of urban population. Thus, wet

markets and small groceries are still profitable even they are less modern and comfortable than

supermarkets. Therefore, OMO should increase marketing activities in those places. Omo can

use some basic marketing tools which are comparatively cheap such as poster, or ceiling banners

to attract customers’ attention. Also OMO can set up a POP in a day to attract buyers in wet

markets who are very easily attracted by something new and funny. With an existing well-known

reputation, OMO will be successful easily. All of these methods are not expensive; hence Omo

just pays a few more but get worthy benefit:

Increasing awareness of customers about the campaign to remind them about Omo brand.

Covering a considerable market share which most of competitors abandon.

Secondly, OMO should promote the website of the event more popular and impressive. With

other marketing channels such as TV, magazine and newspaper, people are just impressed the

name of the event only, so they might not know campaign’s details. According to TNS (2009),

Vietnam (with 34% Urban home internet penetration, and 56% among internet users access

internet at home) was in the top 20 countries having the most active internet users globally, so

internet is a potential tool for Omo campaign in getting wider people’s concentration ( See

appendix B).

Not many people knew http://www.vuonxuantangme.com/, and this is regret for this big PR

campaign. To improve it, the website link should be presented impressively on TV commercial,

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billboards and Omo package before and during the campaign. Also, the content of this website is

supposed to be changed to get customers’ participation. This website can be used as an additional

tool for customers sharing their happy photos when receiving flower pots from their beloved

children. This method creates a two-way contact between Omo and customers. Also, easily

Omo’s campaign is extended by world-of-mouth. Hence, it supports Omo in creating long-

lasting relationship with Vietnamese consumers.

4. REFERENCES:

Belch, G, Belch, M 2009, Advertising and promotion: An integrated marketing

communication perspectives, 8th edn, McGraw-Hill Irwin, US.

Kotler, P, Amstrong, G, Ang, S Leong, S Tan, C & Tse, D 2005, Principles of Marketing,

10th edn, Prentice Hall, Pearson, Singapore

O’Guinn, T Allen, C & Semenik, R 2009, Advertising & Integrated brand promotion, 5th

edn, South-Western Cengage Learning, US.

Percy, L 2008, Strategic integrated marketing communication, Canada

Shimp, T 2010, Integrated Marketing Communication in Advertising and Promotion, 8th

edn, South-Western Cengage Learning, China

Unilever 2010,Unilever Global, viewed 12 March 1010,

<http://www.unilever.com/brands/homecarebrands/Omo.aspx>

5. APPENDIX:

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OMO

Washing machine detergentWashing Detergent

VUON XUAN TANG ME – FLOWERS FOR MOTHERS IMC Audit Report

APPENDIX A: PRODUCT PORTFOLIO

Chart 1. Hypothetical hierarchical partitioning of the soft drink market – Adapted from Percy, L 2008

APPENDIX B: TNS ANALYSIS OF INTERNET GROWTH IN VIETNAM

Semester A | 2010 14