Young Marketers 2 -The Chubby Bunnies


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Young Marketers 2 -The Chubby Bunnies

  1. 1. OK CONDOMS RENOVATION Marketing Proposal October 3, 2013 Presented by Lê Xuân Yến Nhi Lê Thị Tuyết Ni
  2. 2. BACKGROUND INFORMATION DEMOGRAPHIC. • GDP per capital: 1,540USD •     Demographic : Aging population; Portion of children decreases; Imbalance in gender, Imbalance in population in urban and rural area (27.44% living in the urban and counting);  Majority of the women care about contraception. •      Lifestyle: 11.2% of teenagers have sex, 33.9% of them doesn’t use contraception Average age at first sex is 18.2 years old ; 82.6% use condom, 13.1% use birth control pills.
  3. 3. BACKGROUND INFORMATION GEOGRAPHIC HA NOI SAIGON 6,448,837 people. 7,123,340 people. More collective. More individualistic. Ask others’ opinions prior to purchase. Make their own purchase decisions. Love promotions and more aware of prices. Buy what they need when they need. More impacted by advertising. Less impacted by advertising. Brand loyalty. Lower loyalty to brands.
  4. 4. • Power Distance (70): people accept a hierarchical order. • Individualism ( 20): Collectivistic society fosters strong loyalty, relationships and responsibility. • Masculinity (40): Feminine society values consensus, equality, solidarity and quality. • Uncertainty avoidance (30): Low preference for uncertainty avoidance so people are more flexible and relaxed attitude. • Long-term Oriented (80): ability to adapt traditions to a modern context.
  5. 5. BACKGROUND INFORMATION DISEASE • Sex Education: Lack of knowledge and skills about sexual problems due to lack of education; Don’t have the gender knowledge system. • Abortion rate : 300,000 cases/ year, 4-5% of those is teenage. VN has highest abortion rate in SEA and rate 5th among the world. • HIV/ AIDS: About 0.6% of the population has HIV. • STDs: sexually transmitted diseases – about 20 types transmitted between huma ns by means of sexual behavior. In Vietnam, 800,000 – 1m people get STDs each year. Year Living people who have HIV Year Living people who have HIV 8/2007 128.367 3/2010 164.197 3/2008 123.775 9/2010 180.312 6/2008 129.722 12/2010 183.938 8/2008 132.048 3/2011 185.623 06/2009 149.653 9/2011 193.350 09/2009 156.802
  6. 6. BACKGROUND INFORMATION INDUSTRY • Condoms are convenient good with low purchase involvement. • High social risk: fear of being judged or discriminated by others when the person is known to use/ buy the products. • Main players: Durex, Okamoto, OK, Sagami, Unidus. • Factors competing on: price, quality, brand reliability. • Awareness of brands: Most people place Durex in their evoked set and others in inert set.
  7. 7. OK CONDOMS  OK rubber latex condom are made in Thailand by Thai Nippon Rubber Industry Company.  Package is boring and “cheap”.  130,000 VND for 144-condom box and 5-8,000VND for a 3-condom box.  Mainly distributed through the chain of pharmacy and used by hotels business.  No distribution at supermarkets, retailers or convenient stores.  Not well marketed and promoted.  Past promotional material are not engaging.  No continuous and updated promotional activities.
  8. 8. VALUE PROPOSITION Desired position Current position
  9. 9. POSITIONING MAP Sagami High reliability Okamoto Durex Unidus Cheap Expensive OK Low reliability
  10. 10. TARGET MARKET Young adult 18-24 Social group BCD High school and university students, blue and white collars Lifestyle Thinker, achiever, experiencer Personality Sincerity, health cautious Benefits Behavioral Male & Female Occupation Psychographic Ho Chi Minh city, Ha Noi capital Age Demographic Region Gender Geographic Health protection, pregnancy and STD prevention, self and sex partner assurance User status Potential users, First-time users, Regular users User rate Low to medium
  11. 11. CUSTOMER INSIGHT • About condoms: People who are knowledgeable and understand the benefits of having safe sex. People who use condom to protect themselves and show responsibility to their partners. • About OK condom: OK condom – Live to love, love to live.
  12. 12. PROJECT OBJECTIVES 70% 60% 50% 40% 30% Demand 20% Sales 10% Dec-15 Aug-15 Apr-15 Dec-14 Aug-14 Apr-14 0% Dec-13 • Increase demand from 45% to 65% • Increase awareness of OK. • Increase OK sales by 15%.
  13. 13. SWOT ANALYSIS • • • • Subsidized by Government Affordable price High awareness Direct distribution to all pharmacies in Vietnam Strengths • Sex education has been brought to school curriculum. • More distribution channels are available: clubs, retailers, convenient stores and so on. • Vietnamese are more open to the sex culture. • Limited marketing activities from the competitors except for Durex Opportunities Weaknesses Threats • No continuous and updated improvement of products and promotion. • Ineffective marketing team. • Distribution channels are not maximally deployed. • Cultural and social restrictions. • Many substitutes available such as pills. • Low brand loyalty. • Strong competitors: Durex and Okamoto
  14. 14. PROPOSED MARKETING STRATEGIES • OK Condom brand is not in evoked set and it has characteristics of habitual decision making product. Disrupt strategy is used to regain and strengthen its position. 1. Product. 2. Price. 3. Place. 4. Promotion.
  15. 15. MARKETING STRATEGY BASED ON INFORMATIONSEARCH PATTERN Brand position Target market decision making pattern Habitual decision making Brand NOT in evoked set 4-15 Extended decision making (no search) Brand in evoked set Limited decision making (limited search) (extensive search) Maintenance strategy Capture strategy Preference strategy Disrupt strategy Intercept strategy Acceptance strategy
  16. 16. PROPOSED MARKETING STRATEGY PRODUCT Core Product Actual Product Augmented Product • A barrier device used during sexual intercourse • Helps reduce the probability of pregnancy and STDs • • • • • • • Brand Name: OK condom. Existing product: Classic OK Condom. New Luxury Product line: Flavors , Sensations, Breakthrough. Quality level: Moderate Package: 3-condom box and 12-condom box Packaging: Red (Classic); Silver ( Flavors); Gold ( Sensations); Black (Breakthrough) Feature: Latex material with additional flavors. • High warranty • Improved distribution channels • Accessible post purchase and hotlines.
  17. 17. PROPOSED MARKETING STRATEGY PRICE • Slightly increase price for Classic product: 9,000VND per 3-condom box. • Set higher price for new product line: 24,000VND per 3-condom box. • Pricing method: cost-based (current products) and value based pricing strategy (new product line)
  18. 18. PROPOSED MARKETING STRATEGY PRICE • Price strategy objectives: • Maximize Current Profits: Higher prices to help improve overall profit margins. • Maximize Sales Quantity: Lower prices compared to competitors – to increase the total number of items sold and generate discounts or rebates from suppliers or wholesalers. • Generate New Customers: Flat fee pricing to generates additional customers. • Create Additional Sales Opportunities: Existing customers – especially satisfied existing customers – are fertile ground for additional purchases.
  19. 19. PROPOSED MARKETING STRATEGY PLACE 1/ Without intermediaries: • OK Website and Hotline. • OK vending machine. 2/ With intermediaries Selective distribution channels: • Convenient store • Pharmacy • Retailers • Supermarkets • Hotels • Online selling • Clubs
  20. 20. Proposed marketing strategies PROMOTION OBJECTIVES • Raise awareness of OK product through the OK renovation by communicating the new packages and differentiating the new product line and the existing one to the market. • Raise safe-sex awareness and encourage people to use contraceptives and protection.
  21. 21. Proposed marketing strategies PROMOTION for OK CONDOMS • Interactive website - Allow online purchase. - Direct marketing: no use of intermediaries. • SEO keywords: baocaosu, Baocaosuok, tinhducanhtoan, Okcondom. • Exclusive sponsoring for “Be Responsible” campaign (refer to next slide)
  22. 22. Proposed marketing strategies PROMOTION for BE RESPONSIBLE Propaganda – “Be Responsible” Campaign: • The OK Mascots • Online competition – Video contest • TVC – “Be Responsible? OK” • Safe-sex courses at high schools and universities • Banners at street poles/ Billboards/ Posters/ Booklets • Bus stops
  23. 23. The OK Mascots Guerilla marketing • Have fun looking designed mascots running around to give out samples and Booklets at high residential areas. • Let mascots drive motorbikes at centers to get the immediate attention and media viral.
  24. 24. TVC – “Be Responsible? OK” • Mascots will run to random young people and ask “Will you take responsibility for your life?” • Respondents say “OK” • Showing response from Individuals and groups saying “OK” • OK Condoms will appear as sponsor at the end of the video.
  25. 25. Online competition- “Be Responsible” • Participants age: 18-24 • Create a video to raise awareness about the use of condoms. • OK products need not to be displayed in the video but no competitors’ brands are allowed. • OK will appear as a sponsor for the competition. • Youtube is the flat form.
  26. 26. TIMELINE
  27. 27. BUDGET Cost Estimation provided by Triniad Company and Khai Thong Media Company
  28. 28. KPI KPI and Metrics Benchmark Return on investment 150% (Applying 80/20 Pareto theorem.) Incremental Sales 70% for online promotion. 30% for offline promotion. Social Interaction 1.20% 1.00% 0.80% 0.60% 0.40% 0.20% 0.00% Youtube Dec-15 Sep-15 Jun-15 Mar-15 Dec-14 Sep-14 Jun-14 Facebook Website SEO Keyword Ranking Baocaosu • Rank: 3 • CTR: 8.7% okcondom • Rank: 5 • CTR: 7.3% Baocaosuok • Rank: 15 • CTR: 4.4% tinhducantoan • Rank: 11 • CTR: 5.6%
  29. 29. Thank you from the Chubby Bunnies Họ và tên Lê Xuân Yến Nhi Lê Thị Tuyết Ni Ngày sinh 29/1/1993 25/4/1993 Giới tính Nữ Nữ Trường RMIT Vietnam RMIT Vietnam Khoá lớp Quản trị thương mại Thương mại marketing Địa chỉ 540 Nhật Tảo, F.7, Q.11 137 Bàu Cát 4, F.14, Q. Tân Bình. Điện thoại 0982 291 193 0909 628 254 Email Facebook /ynle.allison /lethituyetni Youtube introduction video of the Chubby Bunnies