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Shield Hand & Body Sanitizing Lotion 
Marketing Plan 
Rochelle Bellinger 
Jennifer Jarvey 
Chantia Lewis 
Alexis Nathavong 
Wendy Stallings 
July 2, 2014 
Marketing Plan
CONTENTS 
Section Ten ‐ Budgets, Control, and Accountability 1 
Section Eleven ‐ Global Marketing 9 
Appendix C: Target market select product survey results 16 
References 19
Section Ten ‐ Budgets, Control, and Accountability 
Based on consumer survey results, target market calculations were developed for a primary target 
market of females age 25‐44 and a secondary target market that represents 12% of the primary target 
market. The new product survey, conducted June 2014 had 122 participants. 
As part of the survey, purchase likelihood was measure at three price point ranges. Participants 
indicated purchase probability by selecting definitely buy, probably buy, probably not buy and definitely 
not buy. Purchase probability measured highest for females age 25‐44 over two price point ranges 
($4.00 ‐ 6.99 and $7.00 ‐ $9.99), resulting in a selected retail price of $7.00. Likely to purchase figures 
were determined by adding all definitely buy responses in both price point ranges and multiplying by 
30% to account for actual purchase drop off; probably buy responses were also added for both price 
point ranges and multiplied by 15%. Figures from each response group were combined and that final 
calculation used in the likely buy category. This accounts for single respondents with multiple, relevant 
responses and incorporates both price point ranges, justifying the retail price of $7.00. 
Based on frequency of use survey responses, an estimate of 12 units per market share in both the 
primary and secondary target markets was used to determine purchase unit numbers for both year one 
and two domestically. 
Per unit cost calculations were estimated by considering a material and labor cost combined of just over 
1/3 wholesale price. Overhead was determined at 20% of material and labor, or just 7% of wholesale 
price. Minimum profit percentage of 40% was subtracted from remaining per unit cost calculation and 
the balance allocated to advertising, selling and promotion. Year two calculations demonstrate a 
decrease in promotion per unit cost calculations by 2%, resulting in a 2% increase in profits with all other 
allocations remaining the same. 
1
2 
Figure 1 Target Market Calculations based on new product survey responses (Wholesale) 
TARGET MARKET CALCULATIONS 
Age 
Likely to 
Purchase 
Survey 
Total 
% of Survey 
Population 
US Female 
Pop 
Market 
Potential 
5% share 
of Market 
15‐24 2.1 7 30.00% 19,105,073 5,731,522 286,576 
25‐34 7.8 27 28.89% 19,771,195 5,711,679 285,584 
35‐44 9 28 32.14% 22,700,729 7,296,663 364,833 
45‐54 7.35 26 28.27% 19,180,722 5,422,243 271,112 
55‐64 3.3 13 25.38% 12,629,328 3,205,906 160,295 
65‐74 0.75 2 37.50% 10,087,712 3,782,892 189,145 
All Remaining 6.75 19 35.53% 5,096,631 1,810,645 90,532 
30.3 122 29.42% 103,474,759 31,150,904 1,557,545 
Target 42,471,924 13,008,341 650,417 
Secondary Market (12% of primary target market) 1,810,645 90,532 
Purchase Frequency Calculations 
Monthly 
Purchasing 
Total Target 
Market 
Responses 
Total Target 
Market 
% of Target 
Market 
Potential 
Market 5% 
Units 
Bought Per 
Year 
Total Units 
Purchased 
Year 2 Total 
Purchases 
(+20%) 
Primary 55 122 45.08% 650,417 12 7,805,005 9,366,006 
Secondary 67 122 54.92% 90,532 12 1,086,384 1,303,661 
total 122 100.00% 8,891,389 10,669,667 
Per Unit Cost Calculations 
Year 1 Production Year 2 Production 
% of Costs Cost in $ % of Costs Cost in $ 
Material 24% $ 1.08 24% $ 1.08 
labor 12% $ 0.54 12% $ 0.54 
overhead 7% $ 0.32 7% $ 0.32 
advertising 7% $ 0.32 7% $ 0.32 
promotion 7% $ 0.32 5% $ 0.22 
selling 3% $ 0.14 3% $ 0.14 
profit 40% $ 1.79 42% $ 1.89 
wholesale price 100% $ 4.50 100% $ 4.50
3 
Figure 2 Pro‐Forma Income Statement (Wholesale)
4 
Figure 3 Vietnam Target Market Calculations based US survey responses (Wholesale) 
TARGET MARKET CALCULATIONS 
Age 
Likely to 
Purchase 
Survey 
Total 
% of Survey 
Population 
Vietnam 
Female Pop 
Market 
Potential 
5% share of 
Market 
15‐24 2.1 7 30.00% 8,023,377 2,407,013 120,351 
25‐54 24.15 81 29.81% 20,861,243 6,219,741 310,987 
55‐64 3.3 13 25.38% 3,763,309 955,302 47,765 
65‐74 0.75 2 37.50% 3,260,435 1,222,663 61,133 
All Remaining 6.75 19 35.53% 2,503,349 889,348 44,467 
30.3 122 29.42% 35,908,364 10,804,719 540,236 
Target 20,861,243 6,219,741 310,987 
Secondary Market (12% of primary target market) 889,348 44,467 
Purchase Frequency Calculations 
Monthly 
Purchasing 
Total Target 
Market 
Responses 
Total Target 
Market 
% of Target 
Market 
Potential 
Market 5% 
Units 
Bought Per 
Year 
Total Units 
Purchased 
Year 2 Total 
Purchases 
(+20%) 
Primary 55 122 45.08% 310,987 12 3,731,845 4,478,213 
Secondary 67 122 54.92% 44,467 12 533,609 640,330 
total 122 100.00% 4,265,453 5,118,544 
Per Unit Cost Calculations 
Year 1 Production Year 2 Production 
% of Costs Cost in VND $ Conversion % of Costs Cost in VND $ Conversion 
Material 24.0% 12783.000 $ 0.60 24.0% 12783.000 $ 0.60 
labor 12.0% 6391.500 $ 0.30 12.0% 6391.500 $ 0.30 
overhead 7.2% 3834.900 $ 0.18 7.2% 3834.900 $ 0.18 
advertising 6.9% 3675.113 $ 0.17 6.9% 3675.113 $ 0.17 
promotion 6.9% 3675.113 $ 0.17 6.9% 3675.113 $ 0.17 
selling 3.0% 1597.875 $ 0.08 1.5% 798.94 $ 0.04 
profit 40.0% 21305.000 $ 1.00 41.5% 22103.94 $ 1.04 
wholesale price 100.0% 53262.500 $ 2.50 100% 53262.500 $ 2.50
5 
Figure 4 Pro‐Forma Income Statement Vietnam (Wholesale) 
Shield Hand & Body Sanitizing Lotion Pro‐Forma Income Statement 2015 & 2016 
Fiscal 2015 
Sales Qty 
Fiscal 2015 Sales 
VND 
Fiscal 2015 Sales $ Percent of 
Net Sales 
Fiscal 2016 
Sales Qty 
Fiscal 2016 Sales 
VND 
Fiscal 2016 
Sales $ 
Percent of 
Net Sales 
Retail Sales 
Primary market 3,731,845 238,520,846,401.72 $11,195,533.74 87.5% 4,478,213 286,225,015,682.06 $ 13,434,640.49 87.5% 
Secondary market 533,609 34,105,596,017.04 $1,600,825.91 12.5% 640,330 40,926,715,220.44 $ 1,920,991.09 12.5% 
Total Net Retail Sales 272,626,442,418.75 $12,796,359.65 100.0% 327,151,730,902.50 $ 15,355,631.58 100.0% 
Wholesale Sales 
Primary market 3,731,845 198,767,372,001.43 $9,329,611.45 87.5% 4,478,213 238,520,846,401.72 $ 11,195,533.74 87.5% 
Secondary market 533,609 28,421,330,014.20 $1,334,021.59 12.5% 640,330 34,105,596,017.04 $ 1,600,825.91 12.5% 
Total Net Wholesale Sales 227,188,702,015.63 $10,663,633.04 100.0% 272,626,442,418.75 $ 12,796,359.65 100.0% 
Wholesale represented below 
Cost of Goods Sold 
Material 54,525,288,483.75 $2,559,272 24.0% 65,430,346,180.50 $ 3,071,126.32 24.0% 
Labor 27,262,644,241.88 $1,279,636 12.0% 32,715,173,090.25 $ 1,535,563.16 12.0% 
Overhead 16,357,586,545.13 $767,782 7.2% 19,629,103,854.15 $ 921,337.90 7.2% 
Total cost of Good Sold 98,145,519,270.75 $4,606,689 43.2% 117,774,623,124.90 $ 5,528,027.37 43.2% 
Gross Profit 129,043,182,744.88 $6,056,944 56.8% 154,851,819,293.85 $ 7,268,332.28 56.8% 
Selling Expenses 
Advertising 15,676,020,439.08 $735,791 6.9% 18,811,224,526.89 $ 882,948.82 6.9% 
Promotion 15,676,020,439.08 $735,791 6.9% 18,811,224,526.89 $ 882,948.82 6.9% 
Selling 6,815,661,060.47 $319,909 3.0% 4,089,396,636.28 $ 191,945.39 1.5% 
Total Selling Expenses 38,167,701,938.63 $1,791,490 16.8% 41,711,845,690.07 $ 1,957,843.03 15.3% 
Net Operating Profit 90,875,480,806.25 $4,265,453 40.0% 113,139,973,603.78 $ 5,310,489.26 41.5%
The figure below depicts theoretical timeline for Shield over a two year period. Timeline includes task 
line, projected costs and resources required, revenues and department/group accountable for meeting 
milestone. Estimated costs and revenue represent domestic wholesale income and expenses. Figure 18 
represents a theoretical timeline for Shield in Vietnam, again using wholesale calculations. 
6 
Figure 5 Domestic Projected timeline 
Q1 2015 
Focus Group: test market 
samples to determine target 
consumer match to survey 
results. Market location: 
Atlanta, HQ of CDC. 
Estimated Cost: $50,000 
Revenues: $0 
PM/group: Promotion 
Q2 2015 
Soft Launch with social media 
awareness campaign. Market 
locations: New York, Chicago, Los 
Angeles, Detroit and Washington 
DC (US News top cities w/ top 
hospitals) 
Hard Launch US broadcast, print 
and social media campaigns live 
Cost: $2,300,000 
Qtr Revenues: $2,550,000 
PM/group: Promotion & 
Advertising 
Q3 2015 
Special promotion for wholesales 
‐ all markets 
Cost: $1,550,000 
Revenues: $10,750,000 
PM/group: Selling 
Q4 2015 
Holiday promotions, Customer 
loyalty pricing 
Cost: $1,750,000 
Revenues: $26,700,000 
PM/group: Promotion & 
advertising 
Q1 2016 
re‐launch global market during 
Vietnam New Year ‐ Vietnam 
and celebate domestically global 
appeal (social media, wholesale 
contact meetings) 
Cost: $1,750,000 
Revenues: $10,500,000 
PM/group: Advertising & Selling 
Q2 2016 
Summer Olympic advertising 
Cost: $2,500,000 
Revenues: $10,500,000 
PM/group: Advertising 
Q3 2016 
Back to School & cold/flu 
advertising 
Cost: $1,800,000 
Revenues: $15,000,000 
PM/group: Advertising & 
Promotion 
Q4 2016 
Holiday promotions, Customer 
loyalty pricing 
Cost: $1,150,000 
Revenues: $12,500,000 
PM/group: Advertising
7 
Figure 6 Vietnam Projected timeline 
Q1 2015 
Consumer Survey luanch 
online 
Focus Group: test market 
samples to determine target 
consumer match to survey 
results. Market location: 
Hanoi, Vietnam capital 
Estimated Cost: $10,000 
Revenues: $0 
PM/group: Promotion 
Q2 2015 
Soft Launch with social 
media awareness campaign. 
Market locations: Da Lat, Ho 
Chi Minh City, Danang, Hoi 
An and Phu Quoc Island (NY 
Times Travel Guide) 
Hard Launch social media 
campaigns live 
Cost: $350,000 
Qtr Revenues: $1,500,000 
PM/group: Promotion & 
Advertising 
Q3 2015 
Special promotion for 
wholesales ‐ all markets 
Cost: $600,000 
Revenues: $3,600,000 
PM/group: Selling 
Q4 2015 
Holiday promotions, 
Customer loyalty pricing 
Cost: $830,000 
Revenues: $5,500,000 
PM/group: Promotion & 
advertising 
Q1 2016 
relaunch global market 
during Vietnam New Year ‐ 
Vietnam and celebate 
domestically global appeal 
(social media, wholesale 
contact meetings) 
Cost: $350,000 
Revenues: $2,500,000 
PM/group: Advertising & 
Selling 
Q2 2016 
Summer Olympic advertising 
Cost: $5,500,000 
Revenues: $3,500,000 
PM/group: Advertising 
Q3 2016 
Back to School & cold/flu 
advertising 
Cost: $330,000 
Revenues: $2,500,000 
PM/group: Advertising & 
Promotion 
Q4 2016 
Holiday promotions, 
Customer loyalty pricing 
Cost: $750,000 
Revenues: $4,250,000 
PM/group: Advertising 
Three areas are used to measure success in launching Shield domestically and in Vietnam: sales, market 
share and cost. For each of these segments department checks and analysis is required weekly in the 1st 
and 2nd quarters and bi‐monthly after launch. Teams from sales, advertising and promotion are held 
accountable for goal achievement as defined in each timeline. 
Sales
Domestic projected quarterly revenue figures for Q1 and Q2 in 2015 allow a negative 12% deviation. 
This deviation decreases in Q3 to 7% and 5% in Q4. Deviations that exceed threshold over Q3 and Q4 
will require promotional and advertising adjustments to marketing plan. 
Domestic projected quarterly revenue figures for Q1 in 2016 allows a negative 5% deviation. This 
deviation decreases across Q2 and Q3 to 3% and less than 1% in Q4. Deviations that exceed threshold 
over Q1 and Q2 will require advertising and selling adjustments to marketing plan. 
Vietnam projected quarterly revenue figures for Q1 and Q2 in 2015 allow a negative 20% deviation. This 
deviation decreases in Q3 to 15% and 10% in Q4. Deviations that exceed threshold over Q3 and Q4 will 
require advertising and selling adjustments to marketing plan, namely social media contact and 
distribution. 
Vietnam projected quarterly revenue figures for Q1 in 2016 allows a negative 8% deviation. This 
deviation decreases across Q2 and Q3 to 6% and 5% in Q4. Deviations that exceed threshold over Q1 
and Q2 will require advertising and selling adjustments to marketing plan. 
Market share 
Health products contribute 15% of all net sales for P&G and 16% of market share price. With the 
introduction of Shield domestically and in Vietnam, an increase from 15% to 16% in net sale contribution 
for the segment by Q4 2015, is anticipated based on 2013 net sales contribution equaling $12.63 billion 
and estimated net sales retail and wholesale equaling $125.7 million in 2015. Selling is accountable for 
reaching this goal. 
Cost 
P&G values affordability for its consumers. Although a new product survey was conducted domestically, 
an additional survey and focus group will be required when launching in Vietnam. Cost estimates for the 
Vietnam market are based on cost of goods reported in 2011 for health and beauty products. 
(vietnamonline.com, 2011) domestically, should costs increase over 59% after Q3 in 2015, operations 
will need to investigate and informally report on cost deviation. Operations is also tasked with 
investigating cost effective and green production measures domestically and in Vietnam. Investigation 
costs are allocated from segment general ledger and will not impact marketing projections for Shield. 
8
9 
Section Eleven ‐ Global Marketing 
In analyzing the feasibility of marketing of Shield globally following figure reports data, quoted from The World FactBook, unless noted, 
produced by the Central Intelligence Agency allowing for a comparison of environmental variables between the United States and 
Vietnam. 
Figure 7 Global marketing comparison United States and Vietnam 
United States Vietnam Comparison Impact on marketing 
Geography 
North America, bordering both the North 
Atlantic Ocean and the North Pacific Ocean, 
between Canada and Mexico 
Climate: Mostly temperate, but tropical in 
Hawaii and Florida, arctic in Alaska, 
semiarid in the great plains west of the 
Mississippi River, and arid in the Great 
Basin of the southwest; low winter 
temperatures in the northwest are 
ameliorated occasionally in January and 
February by warm chinook winds from the 
eastern slopes of the Rocky Mountains 
Airports: 13,513* 
Railways: 224,792 km+ 
Energy production: 
Electricity‐ 4.099 trillion kWh (2011 est.) 
Crude oil ‐ 11.11 million bbl./day^ 
Refined Petroleum ‐ 18.45 million bbl./day 
(2010 est.) 
Natural gas ‐ 681.4 billion cu m^ 
Southeastern Asia, bordering the Gulf of 
Thailand, Gulf of Tonkin, and South China 
Sea, as well as China, Laos, and Cambodia 
Climate: Tropical in south; monsoonal in 
north with hot, rainy season (May to 
September) and warm, dry season (October 
to March) 
Airports: 45* 
Railways: 2,632 km+ 
Energy production: 
Electricity‐ 117 billion kWh^ 
Crude oil ‐ 363,500 bbl./day^ 
Refined Petroleum ‐ 112,000 bbl./day^ 
Natural gas ‐ 9.3 billion cu m^ 
Vietnam is just over 3% of the 
size of the United States in 
total area. 
Temperatures are more 
tropical for the country versus 
the regional temperatures in 
the United States. 
Transportation in the United 
States is vast; in contrast 
Vietnam has few airports 
proportionately to area size. 
The United States significantly 
outpaces Vietnam on energy 
production for every 
segment. 
The higher and more humid 
temperatures in Vietnam 
likely lead to increased sweat 
and odor, increasing the need 
for our product. Additionally, 
the lotion feature helps 
nourish and hydrate the skin, 
alleviating dryness. 
Limited transportation in 
Vietnam influences 
distribution negatively when 
reaching more rural areas. 
A lower energy production 
impacts the ability to produce 
Shield in Vietnam. This 
challenge can be overcome by 
employing energy 
efficient/green technologies.
United States Vietnam Comparison Impact on marketing 
10 
Demographics 
Population: 318,892,103+ 
Age structure: 
15‐24 years: 13.7% (male 
22,436,057/female 21,321,861) 
25‐54 years: 39.9% (male 
63,452,792/female 63,671,631) 
55‐64 years: 12.6% (male 
19,309,019/female 20,720,284) 
65 years and over: 13.9% (male 
20,304,644/female 25,874,360)# 
Population growth rate: 0.77%# 
Birth rate: 13.42 births/1,000 population# 
Population 93,421,835# 
Age structure: 
15‐24 years: 17.8% (male 8,598,360/female 
8,023,377) 
25‐54 years: 44.8% (male 
20,983,638/female 20,861,243) 
55‐64 years: 7.4% (male 3,149,494/female 
3,763,309) 
65 years and over: 5.6% (male 
2,034,721/female 3,260,435)# 
Population growth rate: 1%# 
Birth rate: 16.26 births/1,000 population# 
Vietnam has just under 1/3 
the population of the United 
States (29.3%), however 
Vietnam has a younger 
population indicated by the 
low percentages of people 
over the age of 55. 
Both the United States and 
Vietnam have higher 
percentages of people age 25‐ 
54, 39.9% and 44.8% 
respectively. 
Vietnam outpaces the United 
States for both growth rate 
and birth rate. 
Having a smaller population 
than the United States, 
Vietnam will have smaller 
primary and secondary target 
markets, resulting in lower 
sales. 
Vietnam has faster growth 
and birth rates than the 
United States. As an 
estimate, at current rates, 
Vietnam surpasses the United 
States population in 2443. 
Cultural 
Two‐tier labor market resulting in large gap 
between groups of educated and higher 
income and low education and income. 
Languages: English 82.1%, Spanish 10.7%, 
other Indo‐European 3.8%, Asian and 
Pacific island 2.7%, other 0.7% (2000 
census) note: the US has no official national 
language, but English has acquired official 
status in 28 of the 50 states; Hawaiian is an 
official language in the state of Hawaii 
Commitment to economic modernization in 
recent years. Part of the World Trade 
Organization promoting more competitive, 
export‐driven industries. Also, Vietnam is 
an official negotiating partner in the Trans‐ 
Pacific Partnership trade agreement in 
2010. 
Languages: Vietnamese (official), English 
(increasingly favored as a second 
language), some French, Chinese, and 
Khmer, mountain area languages (Mon‐ 
Khmer and Malayo‐Polynesian) 
Unlike Vietnam, the United 
States has no official 
language. 
The United States is market 
driven, where Vietnam is 
agricultural. These market 
and industry differences may 
be the driving influencer 
behind population below 
poverty line rates (estimated 
15.1% in the United States 
and 24.1% in Vietnam for 
2010) 
As the Vietnamese 
government focuses on 
economic improvement, 
disposable income should 
increase for consumers 
resulting in increased sales. 
Having an official language, 
production and marketing of 
Shield may cost less 
proportionately than in the 
United States, where 
production and marketing has 
to be done in at least two 
languages (English and 
Spanish).
United States Vietnam Comparison Impact on marketing 
11 
Economy 
GDP: $16.72 Trillion* 
Per capita GDP: $52,800* 
Industries: highly diversified, world leading, 
high‐technology innovator, second largest 
industrial output in world; petroleum, steel, 
motor vehicles, aerospace, 
telecommunications, chemicals, 
electronics, food processing, consumer 
goods, lumber, mining 
Occupations of labor force: 
farming, forestry, and fishing: 0.7% 
manufacturing, extraction, transportation, 
and crafts: 20.3% managerial, professional, 
and technical: 37.3% sales and office: 
24.2% other services: 17.6% 
Unemployment: 7.3%* 
Inflation: 1.5%* 
Interest rates: as of June 16, 2014 
Commercial paper (nonfinancial and 
financial 3 mth) 0.101 
Money exchange rate: $1 equals 0.73 Euro2 
GDP: $358.9 billion* 
Per capita GDP: $4,000* 
Industries: food processing, garments, 
shoes, machine‐building; mining, coal, 
steel; cement, chemical fertilizer, glass, 
tires, oil, mobile phones 
Occupations of labor force: 
agriculture: 48% industry: 21% services: 
31%^ 
Unemployment: 1.3%* 
Inflation: 6.8%* 
Interest rates: between 2009‐2013 2.3%3 
Money exchange rate: 1 Vietnamese Dong 
equals 0.000034 Euro4 
Vietnam is sixth in 
comparison to the rest of the 
world in unemployment 
rates; however the much 
lower GDP and higher rate of 
inflation will affect pricing in 
the Vietnam market and 
drastically changes Pro‐Forma 
calculations. 
Average retail price for health 
and beauty products in 
Vietnam is significantly lower 
than in the United States. 
GDP, per capita GDP, 
unemployment influence 
pricing in Vietnam. 
A lack of diversity in 
occupations negatively 
impacts unemployment and 
per capita GDP. Limited 
Industries in Vietnam have a 
pervasive impact on large 
populations, directly affecting 
sales; negatively in recession 
and positively in ‘boom’. 
Pricing for affordability and 
appeal reduces net sales and 
profit margins significantly in 
Vietnam; however Shield 
should have appeal, resulting 
in a steady increase in sales 
over time, making Vietnam a 
viable and profitable market. 
1 http://www.federalreserve.gov/releases/h15/current/ 
2 https://www.google.com/intl/en/googlefinance/disclaimer/ 
3 http://data.worldbank.org/indicator/FR.INR.RINR 
4 https://www.google.com/intl/en/googlefinance/disclaimer/
United States Vietnam Comparison Impact on marketing 
12 
Technology 
Main line telephone lines – 139 million^ 
Mobile telephone lines – 310 million^ 
Internet users ‐ 245 million (2009) 
Internet hosts ‐ 505 million (2012); note ‐ 
the US Internet total host count includes 
the following top level domain host 
addresses: .us, .com, .edu, .gov, .mil, .net, 
and .org 
Media: 
The United States has four major terrestrial 
TV networks with affiliate stations 
throughout the country, plus cable and 
satellite networks, independent stations, 
and a limited public broadcasting sector 
that is largely supported by private grants; 
overall, thousands of TV stations 
broadcasting; multiple national radio 
networks with many affiliate stations; while 
most stations are commercial, National 
Public Radio (NPR) has a network of some 
600 member stations; satellite radio 
available; overall, nearly 15,000 radio 
stations operating (2008) 
Main line telephone lines – 10.191 million^ 
Mobile telephone lines – 134.066 million^ 
Internet users – 23.382 million (2009) 
Internet hosts – 189,553 (2012) 
Media: 
Broadcast media is government controlled 
operating a network of nine channels with 
several regional broadcasting centers; 
programming is relayed nationwide via a 
network of provincial and municipal TV 
stations; law limits access to satellite TV but 
many households are able to access foreign 
programming via home satellite 
equipment; government‐controlled Voice 
of Vietnam, the national radio broadcaster, 
broadcasts on 6 channels and is repeated 
on AM, FM, and shortwave stations 
throughout Vietnam (2008) 
Vietnam is limited in 
technology in comparison to 
the United States. 
Because broadcast media is 
government controlled in 
Vietnam, marketing measures 
will be affected. Marketing 
strategy will rely heavily on 
social media. 
Broadcast media, government 
controlled in Vietnam, is a 
challenge for advertising. 
More accessible for P&G and 
consumers is social media. 
However, there are fewer 
internet hosts and just under 
10% of number of US internet 
users based on 2009 data. 
This limits our marketing 
across social media as well. 
Social media reach increases 
if most mobile device uses 
have data access; Vietnam 
has approximately 134 million 
mobile device users as of 
2012.
United States Vietnam Comparison Impact on marketing 
13 
Competition 
Globally, the P&G brand outperforms its 
competitors according to Forbes; ranking 
40 globally, 81 for sales and 16 in market 
value. P&G brands are in major retailers 
with prominent placement on shelves. 
Pricing is affordable and often, nearly 
weekly, P&G offers product coupons via 
newspapers, online, and through social 
media. 
Vietnam has six avenues of distribution: 
“hypermarkets, supermarkets, commercial 
centers, shopping centers, convenience 
stores and specialty supermarkets” 
(vietnamonline.com, n.d.) however most 
distribution points are cramped and 
crowded, on the outskirts of cities. 
(vietnamonline.com, n.d.) 
Diana Joint Stock Company 
manufactures and distributes 
hygiene products and is based 
in Hanoi, Vietnam5 Annual 
Sales Volume is below $1 
Million US6 
Additionally Johnson & 
Johnson, L’Oreal, and 
Kimberly‐Clark are domestic 
competitors with market 
share in Vietnam. 
Pricing in Vietnam is 
significantly lower than in the 
US. 
Vietnam is experiencing 
increasing growth in market 
retail “far exceeding many 
other economies in the world, 
behind only India and Russia” 
(vietnamonline.com, n.d.) 
Additional points of 
distribution increase net sales 
and profit margin. 
Pricing for Shield is on 
average for Health and 
Beauty item sin Vietnam, 
however additional features 
make Shield more desirable 
than competitor products. 
+July 2007 estimate, ^2012 estimate, *2013 estimate, #2014 estimate 
5 http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=114982700 
6 http://www.alibaba.com/countrysearch/VN/hand‐sanitizer‐supplier.html
14 
Figure 8 Vietnam market segmentation 
Demographic Segmentation Behavioral Segmentation Benefit 
Segmentation 
Growing demographic of 
expatriates working for US 
companies in Southeast Asia 
Vietnam caters to convenience 
shoppers – this behavior 
translates to other portions of 
their daily lives (Nguyen, 2014) 
Customers who see the 
convenience of using the product, 
Customers who feel they are 
currently missing this product 
Advantages: 
This group is familiar with brand 
name 
Advantages: 
This group enjoys the great values 
that exceed expectations and 
benefits, which Shield does. 
Product longevity would be a 
great selling point for this 
segment. 
Advantages: 
This group is currently marketed 
US products and Vietnamese 
products (sanitizing wipes). 
However Shield lasts longer has 
convenient, value‐based sizing 
and affordable pricing. 
Disadvantages: 
Existing loyalty to other US brand. 
Desire for cultural fit may lead to 
buying Vietnamese products. 
Disadvantages: 
Shifts to increase work/life 
balance may slow down this 
segment making convenience 
products less desirable. 
Disadvantages: 
Convince group of truth in 
advertising, that product performs 
as indicated and outperforms 
current products they may be 
familiar. 
Volume: Price and distribution are 
key for sales for this demographic. 
Volume: This group maintains a 
high paced lifestyle making Shield 
with 1 or 2 applications daily a 
desirable product. 
Volume: Potential for product 
sales is high if consumers are 
convinced of product 
performance. 
Differences domestically to the Vietnamese market require changes to marketing mix, positioning, and 
pricing strategies. Product design requires minimal changes. Namely, adapting the translation of Shield, 
bảo vệ, (Translate.google.com)(Nguyen, 2014) is important for product success in Vietnam. Product 
color may require tinting as green is interpreted as jealousy or lustiness and white is equated with 
purity, death and “the end” (bảohouse.net, n.d.). The blue in the Shield logo is highly desirable because 
it means “calmness, hope, growth” ” (bảohouse.net, n.d.) connotations that benefit sales and brand 
loyalty over time. 
Thanh Nien News online report from May 2014, indicates that since 2005, foreign retailers have flooded 
the Vietnamese marketplace, pushing Vietnamese stores out. Familiar store names and the brand logo 
P&G will likely be appealing to expatriates, increasing sales. Domestically, offering Shield in diverse 
cultural areas goes above and beyond consumer expectations, especially if adapting language and 
product design. 
Product position domestically focused on using national retailers, middle shelves at eye level in the hand 
sanitizer section or health and beauty departments in major retailers. In contrast, although Vietnam has 
six main distribution types (“hypermarkets, supermarkets, commercial centers, shopping centers, 
convenience stores and specialty supermarkets”) (Vietnam Travel & Living Guide, 2011), smaller retailers 
along the outskirts of major cities are more desirable as a point of distribution. These “no‐name 
convenience stores that still make up the majority of the Vietnamese retail market” (Vietnam Travel &
Living Guide, 2011). Hypermarkets and supermarkets are often cramped and crowded. When 
positioning in Hypermarkets it is imperative that endcaps be used, almost exclusively, since aisles of 
narrow, congested and difficult for consumers to navigate. 
Pricing was significantly reduced for the Vietnamese market because of it lower GDP and per capita 
GDP. After reviewing Vietnam Travel & Living Guide’s article on comparable costs, a retail price of $3 or 
63,915 VND and a wholesale price of $2.5 or 53,262.5 VND was set to stay affordable for consumers and 
competitive with other sanitizing products. 
Media avenues for promotion are stymied in Vietnam. Broadcast television is under government 
control. The best and most efficient use of resources is to limit promotion to social media, sampling and 
collaborating with distributors to increase consumer awareness and market share. 
15
16 
Appendix C: Target market select product survey results 
1. How often do you wash your hands in a day? 
18 
16 
14 
12 
10 
8 
6 
4 
2 
0 
1‐3 times 4‐6 times 7‐9 times 10+ times 
2. How concerned are you with your contact to germs and bacteria? 
16 
14 
12 
10 
8 
6 
4 
2 
3. What product(s) do you currently use to avoid contact with germs? 
25‐34 years old 
35‐44 years old 
0 
Not concerned Somewhat concerned Very concerned 
25‐34 years old 
35‐44 years old 
18 
16 
14 
12 
10 
8 
6 
4 
2 
0 
Soap/Water 
only 
Hand Sanitizer 
only 
Soap/Water & 
Hand Sanitizer 
All selections 
25‐34 years old 
35‐44 years old
17 
4. What benefit of this product is of MOST VALUE to you…? 
18 
16 
14 
12 
10 
8 
6 
4 
2 
5. Considering your day-to-day activities how OFTEN would you use this product 
18 
16 
14 
12 
10 
8 
6 
4 
2 
6. Based on the product description, at what price range are you LIKELY to buy this product? 
Purchasing likelihood representing only definitely buy or probably buy 
0 
Protects up to 16 
hours 
Is a hand and body 
lotion 
Is a sanitizer 
25‐34 years old 
35‐44 years old 
0 
1‐3 times 4‐6 times 7‐9 times 10+ times 
25‐34 years old 
35‐44 years old 
20 
18 
16 
14 
12 
10 
8 
6 
4 
2 
0 
$4‐6.99 
Definitely buy 
$4‐6.99 
Probably buy 
$7‐9.99 
Definitely buy 
$7‐9.99 
Probably buy 
25‐34 years old 
35‐44 years old
18 
7. What is the highest level of education completed or the highest degree you have obtained? 
16 
14 
12 
10 
8 
6 
4 
2 
0 
High 
school or 
equivalent 
Some 
college but 
no degree 
Associate 
degree ‐ 
all types 
Bachalor's 
degree 
Master's 
degree 
8. How many persons live in your household? 
Doctorate 
degree 
12 
10 
8 
6 
4 
2 
9. How many of those living in your household are children? 
25‐34 years old 
35‐44 years old 
0 
1 2 3 4 5 or more 
25‐34 years old 
35‐44 years old 
14 
12 
10 
8 
6 
4 
2 
0 
0 1 2 3 4 5 or more 
25‐34 years old 
35‐44 years old
19 
References 
Central Intelligence Agency. (2014, March 6). The World FactBook. Retrieved from CIA.gov: 
https:www.cia.govlibrarypublicationsthe‐world‐factbookgeosvm.html 
Coating Systems Laboratories, Inc. ‐ GermFree 24 ‐ Hand Sanitizer and Protectant. (n.d.). 
Retrieved from http://www.coatingsystemslaboratories.com/products_germfree.php 
De Nies, Y., Pirone, J., & Santichen, K. (2009, December 06). Hand Sanitizer: Good Hygiene or 
Just Hype. Retrieved from http://abcnews.go.com 
http://abcnews.go.com/GMA/Weekend/america‐obsessed‐hand‐sanitizer/story?id=9260788 
Euromonitor. (2013, July). Beauty and Personal Care in the US. Retrieved from 
www.euromonitor.com: http://www.euromonitor.com/beauty‐and‐personal‐care‐in‐the‐ 
us/report 
Federal Reserve. (2014, June 23). Selected Interest Rates (weekly) H.15. Retrieved from Board 
of Governors of the Federal Reserve System: 
http://www.federalreserve.gov/releases/h15/current/ 
Forbes. (2014). Procter & Gamble. Retrieved from www.forbes.com: 
http://www.forbes.com/companies/procter‐gamble/ 
Google Finance. (2014, June 24). Finance data listing and disclaimers. Retrieved from Google 
Finance: https://www.google.com/intl/en/googlefinance/disclaimer/ 
PG.com Investor. (n.d.). IRWeblink. Retrieved June 5, 2014, from 
http://www.pginvestor.com/GenPage.aspx?IID=4004124&GKP=208821 
Passport ‐ P&G 2012 SWOT Analysis. (n.d.). . Retrieved June 5, 2014, from 
http://www.euromonitor.com//medialibrary/PDF/ProcterAndGamble‐Company‐ 
Profile‐SWOT‐Analysis.pdf 
PG Annual Report ‐ 2013. (n.d.). Retrieved June 5, 2014, from 
http://www.pg.com/en_US/downloads/investors/annual_reports/2013/2013_AnnualR 
eport.pdf 
P&G. (2009). Human Safety Brochure ‐ The Tradition & Science of Safe Products. 
Procter & Gamble. (2013). 2013 Annual Report. 
Procter & Gamble. (2014). Core Strengths. Retrieved from http://www.pg.com/: 
http://www.pg.com/en_US/company/core_strengths.shtml 
Procter & Gamble. (n.d.). PG.com Home: sustainability, company, brands. Retrieved June 5, 
2014, from http://www.pg.com/en_US/index.shtml
Procter and Gamble advertising and marketing profile. (n.d.). Procter and Gamble advertising 
20 
and marketing profile. Retrieved June 10, 2014, from 
http://www.adbrands.net/us/pg_us.htm 
The World Bank. (n.d.). Real interest rate (%). Retrieved from World Bank Data Bank: 
http://data.worldbank.org/indicator/FR.INR.RINR 
Trefis Team. (2014). Procter & Gamble. Retrieved from http://www.trefis.com/: 
http://www.trefis.com/company?hm=PG.trefis#

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Shield Hand and Body Sanitizing Lotion

  • 1. Shield Hand & Body Sanitizing Lotion Marketing Plan Rochelle Bellinger Jennifer Jarvey Chantia Lewis Alexis Nathavong Wendy Stallings July 2, 2014 Marketing Plan
  • 2. CONTENTS Section Ten ‐ Budgets, Control, and Accountability 1 Section Eleven ‐ Global Marketing 9 Appendix C: Target market select product survey results 16 References 19
  • 3. Section Ten ‐ Budgets, Control, and Accountability Based on consumer survey results, target market calculations were developed for a primary target market of females age 25‐44 and a secondary target market that represents 12% of the primary target market. The new product survey, conducted June 2014 had 122 participants. As part of the survey, purchase likelihood was measure at three price point ranges. Participants indicated purchase probability by selecting definitely buy, probably buy, probably not buy and definitely not buy. Purchase probability measured highest for females age 25‐44 over two price point ranges ($4.00 ‐ 6.99 and $7.00 ‐ $9.99), resulting in a selected retail price of $7.00. Likely to purchase figures were determined by adding all definitely buy responses in both price point ranges and multiplying by 30% to account for actual purchase drop off; probably buy responses were also added for both price point ranges and multiplied by 15%. Figures from each response group were combined and that final calculation used in the likely buy category. This accounts for single respondents with multiple, relevant responses and incorporates both price point ranges, justifying the retail price of $7.00. Based on frequency of use survey responses, an estimate of 12 units per market share in both the primary and secondary target markets was used to determine purchase unit numbers for both year one and two domestically. Per unit cost calculations were estimated by considering a material and labor cost combined of just over 1/3 wholesale price. Overhead was determined at 20% of material and labor, or just 7% of wholesale price. Minimum profit percentage of 40% was subtracted from remaining per unit cost calculation and the balance allocated to advertising, selling and promotion. Year two calculations demonstrate a decrease in promotion per unit cost calculations by 2%, resulting in a 2% increase in profits with all other allocations remaining the same. 1
  • 4. 2 Figure 1 Target Market Calculations based on new product survey responses (Wholesale) TARGET MARKET CALCULATIONS Age Likely to Purchase Survey Total % of Survey Population US Female Pop Market Potential 5% share of Market 15‐24 2.1 7 30.00% 19,105,073 5,731,522 286,576 25‐34 7.8 27 28.89% 19,771,195 5,711,679 285,584 35‐44 9 28 32.14% 22,700,729 7,296,663 364,833 45‐54 7.35 26 28.27% 19,180,722 5,422,243 271,112 55‐64 3.3 13 25.38% 12,629,328 3,205,906 160,295 65‐74 0.75 2 37.50% 10,087,712 3,782,892 189,145 All Remaining 6.75 19 35.53% 5,096,631 1,810,645 90,532 30.3 122 29.42% 103,474,759 31,150,904 1,557,545 Target 42,471,924 13,008,341 650,417 Secondary Market (12% of primary target market) 1,810,645 90,532 Purchase Frequency Calculations Monthly Purchasing Total Target Market Responses Total Target Market % of Target Market Potential Market 5% Units Bought Per Year Total Units Purchased Year 2 Total Purchases (+20%) Primary 55 122 45.08% 650,417 12 7,805,005 9,366,006 Secondary 67 122 54.92% 90,532 12 1,086,384 1,303,661 total 122 100.00% 8,891,389 10,669,667 Per Unit Cost Calculations Year 1 Production Year 2 Production % of Costs Cost in $ % of Costs Cost in $ Material 24% $ 1.08 24% $ 1.08 labor 12% $ 0.54 12% $ 0.54 overhead 7% $ 0.32 7% $ 0.32 advertising 7% $ 0.32 7% $ 0.32 promotion 7% $ 0.32 5% $ 0.22 selling 3% $ 0.14 3% $ 0.14 profit 40% $ 1.79 42% $ 1.89 wholesale price 100% $ 4.50 100% $ 4.50
  • 5. 3 Figure 2 Pro‐Forma Income Statement (Wholesale)
  • 6. 4 Figure 3 Vietnam Target Market Calculations based US survey responses (Wholesale) TARGET MARKET CALCULATIONS Age Likely to Purchase Survey Total % of Survey Population Vietnam Female Pop Market Potential 5% share of Market 15‐24 2.1 7 30.00% 8,023,377 2,407,013 120,351 25‐54 24.15 81 29.81% 20,861,243 6,219,741 310,987 55‐64 3.3 13 25.38% 3,763,309 955,302 47,765 65‐74 0.75 2 37.50% 3,260,435 1,222,663 61,133 All Remaining 6.75 19 35.53% 2,503,349 889,348 44,467 30.3 122 29.42% 35,908,364 10,804,719 540,236 Target 20,861,243 6,219,741 310,987 Secondary Market (12% of primary target market) 889,348 44,467 Purchase Frequency Calculations Monthly Purchasing Total Target Market Responses Total Target Market % of Target Market Potential Market 5% Units Bought Per Year Total Units Purchased Year 2 Total Purchases (+20%) Primary 55 122 45.08% 310,987 12 3,731,845 4,478,213 Secondary 67 122 54.92% 44,467 12 533,609 640,330 total 122 100.00% 4,265,453 5,118,544 Per Unit Cost Calculations Year 1 Production Year 2 Production % of Costs Cost in VND $ Conversion % of Costs Cost in VND $ Conversion Material 24.0% 12783.000 $ 0.60 24.0% 12783.000 $ 0.60 labor 12.0% 6391.500 $ 0.30 12.0% 6391.500 $ 0.30 overhead 7.2% 3834.900 $ 0.18 7.2% 3834.900 $ 0.18 advertising 6.9% 3675.113 $ 0.17 6.9% 3675.113 $ 0.17 promotion 6.9% 3675.113 $ 0.17 6.9% 3675.113 $ 0.17 selling 3.0% 1597.875 $ 0.08 1.5% 798.94 $ 0.04 profit 40.0% 21305.000 $ 1.00 41.5% 22103.94 $ 1.04 wholesale price 100.0% 53262.500 $ 2.50 100% 53262.500 $ 2.50
  • 7. 5 Figure 4 Pro‐Forma Income Statement Vietnam (Wholesale) Shield Hand & Body Sanitizing Lotion Pro‐Forma Income Statement 2015 & 2016 Fiscal 2015 Sales Qty Fiscal 2015 Sales VND Fiscal 2015 Sales $ Percent of Net Sales Fiscal 2016 Sales Qty Fiscal 2016 Sales VND Fiscal 2016 Sales $ Percent of Net Sales Retail Sales Primary market 3,731,845 238,520,846,401.72 $11,195,533.74 87.5% 4,478,213 286,225,015,682.06 $ 13,434,640.49 87.5% Secondary market 533,609 34,105,596,017.04 $1,600,825.91 12.5% 640,330 40,926,715,220.44 $ 1,920,991.09 12.5% Total Net Retail Sales 272,626,442,418.75 $12,796,359.65 100.0% 327,151,730,902.50 $ 15,355,631.58 100.0% Wholesale Sales Primary market 3,731,845 198,767,372,001.43 $9,329,611.45 87.5% 4,478,213 238,520,846,401.72 $ 11,195,533.74 87.5% Secondary market 533,609 28,421,330,014.20 $1,334,021.59 12.5% 640,330 34,105,596,017.04 $ 1,600,825.91 12.5% Total Net Wholesale Sales 227,188,702,015.63 $10,663,633.04 100.0% 272,626,442,418.75 $ 12,796,359.65 100.0% Wholesale represented below Cost of Goods Sold Material 54,525,288,483.75 $2,559,272 24.0% 65,430,346,180.50 $ 3,071,126.32 24.0% Labor 27,262,644,241.88 $1,279,636 12.0% 32,715,173,090.25 $ 1,535,563.16 12.0% Overhead 16,357,586,545.13 $767,782 7.2% 19,629,103,854.15 $ 921,337.90 7.2% Total cost of Good Sold 98,145,519,270.75 $4,606,689 43.2% 117,774,623,124.90 $ 5,528,027.37 43.2% Gross Profit 129,043,182,744.88 $6,056,944 56.8% 154,851,819,293.85 $ 7,268,332.28 56.8% Selling Expenses Advertising 15,676,020,439.08 $735,791 6.9% 18,811,224,526.89 $ 882,948.82 6.9% Promotion 15,676,020,439.08 $735,791 6.9% 18,811,224,526.89 $ 882,948.82 6.9% Selling 6,815,661,060.47 $319,909 3.0% 4,089,396,636.28 $ 191,945.39 1.5% Total Selling Expenses 38,167,701,938.63 $1,791,490 16.8% 41,711,845,690.07 $ 1,957,843.03 15.3% Net Operating Profit 90,875,480,806.25 $4,265,453 40.0% 113,139,973,603.78 $ 5,310,489.26 41.5%
  • 8. The figure below depicts theoretical timeline for Shield over a two year period. Timeline includes task line, projected costs and resources required, revenues and department/group accountable for meeting milestone. Estimated costs and revenue represent domestic wholesale income and expenses. Figure 18 represents a theoretical timeline for Shield in Vietnam, again using wholesale calculations. 6 Figure 5 Domestic Projected timeline Q1 2015 Focus Group: test market samples to determine target consumer match to survey results. Market location: Atlanta, HQ of CDC. Estimated Cost: $50,000 Revenues: $0 PM/group: Promotion Q2 2015 Soft Launch with social media awareness campaign. Market locations: New York, Chicago, Los Angeles, Detroit and Washington DC (US News top cities w/ top hospitals) Hard Launch US broadcast, print and social media campaigns live Cost: $2,300,000 Qtr Revenues: $2,550,000 PM/group: Promotion & Advertising Q3 2015 Special promotion for wholesales ‐ all markets Cost: $1,550,000 Revenues: $10,750,000 PM/group: Selling Q4 2015 Holiday promotions, Customer loyalty pricing Cost: $1,750,000 Revenues: $26,700,000 PM/group: Promotion & advertising Q1 2016 re‐launch global market during Vietnam New Year ‐ Vietnam and celebate domestically global appeal (social media, wholesale contact meetings) Cost: $1,750,000 Revenues: $10,500,000 PM/group: Advertising & Selling Q2 2016 Summer Olympic advertising Cost: $2,500,000 Revenues: $10,500,000 PM/group: Advertising Q3 2016 Back to School & cold/flu advertising Cost: $1,800,000 Revenues: $15,000,000 PM/group: Advertising & Promotion Q4 2016 Holiday promotions, Customer loyalty pricing Cost: $1,150,000 Revenues: $12,500,000 PM/group: Advertising
  • 9. 7 Figure 6 Vietnam Projected timeline Q1 2015 Consumer Survey luanch online Focus Group: test market samples to determine target consumer match to survey results. Market location: Hanoi, Vietnam capital Estimated Cost: $10,000 Revenues: $0 PM/group: Promotion Q2 2015 Soft Launch with social media awareness campaign. Market locations: Da Lat, Ho Chi Minh City, Danang, Hoi An and Phu Quoc Island (NY Times Travel Guide) Hard Launch social media campaigns live Cost: $350,000 Qtr Revenues: $1,500,000 PM/group: Promotion & Advertising Q3 2015 Special promotion for wholesales ‐ all markets Cost: $600,000 Revenues: $3,600,000 PM/group: Selling Q4 2015 Holiday promotions, Customer loyalty pricing Cost: $830,000 Revenues: $5,500,000 PM/group: Promotion & advertising Q1 2016 relaunch global market during Vietnam New Year ‐ Vietnam and celebate domestically global appeal (social media, wholesale contact meetings) Cost: $350,000 Revenues: $2,500,000 PM/group: Advertising & Selling Q2 2016 Summer Olympic advertising Cost: $5,500,000 Revenues: $3,500,000 PM/group: Advertising Q3 2016 Back to School & cold/flu advertising Cost: $330,000 Revenues: $2,500,000 PM/group: Advertising & Promotion Q4 2016 Holiday promotions, Customer loyalty pricing Cost: $750,000 Revenues: $4,250,000 PM/group: Advertising Three areas are used to measure success in launching Shield domestically and in Vietnam: sales, market share and cost. For each of these segments department checks and analysis is required weekly in the 1st and 2nd quarters and bi‐monthly after launch. Teams from sales, advertising and promotion are held accountable for goal achievement as defined in each timeline. Sales
  • 10. Domestic projected quarterly revenue figures for Q1 and Q2 in 2015 allow a negative 12% deviation. This deviation decreases in Q3 to 7% and 5% in Q4. Deviations that exceed threshold over Q3 and Q4 will require promotional and advertising adjustments to marketing plan. Domestic projected quarterly revenue figures for Q1 in 2016 allows a negative 5% deviation. This deviation decreases across Q2 and Q3 to 3% and less than 1% in Q4. Deviations that exceed threshold over Q1 and Q2 will require advertising and selling adjustments to marketing plan. Vietnam projected quarterly revenue figures for Q1 and Q2 in 2015 allow a negative 20% deviation. This deviation decreases in Q3 to 15% and 10% in Q4. Deviations that exceed threshold over Q3 and Q4 will require advertising and selling adjustments to marketing plan, namely social media contact and distribution. Vietnam projected quarterly revenue figures for Q1 in 2016 allows a negative 8% deviation. This deviation decreases across Q2 and Q3 to 6% and 5% in Q4. Deviations that exceed threshold over Q1 and Q2 will require advertising and selling adjustments to marketing plan. Market share Health products contribute 15% of all net sales for P&G and 16% of market share price. With the introduction of Shield domestically and in Vietnam, an increase from 15% to 16% in net sale contribution for the segment by Q4 2015, is anticipated based on 2013 net sales contribution equaling $12.63 billion and estimated net sales retail and wholesale equaling $125.7 million in 2015. Selling is accountable for reaching this goal. Cost P&G values affordability for its consumers. Although a new product survey was conducted domestically, an additional survey and focus group will be required when launching in Vietnam. Cost estimates for the Vietnam market are based on cost of goods reported in 2011 for health and beauty products. (vietnamonline.com, 2011) domestically, should costs increase over 59% after Q3 in 2015, operations will need to investigate and informally report on cost deviation. Operations is also tasked with investigating cost effective and green production measures domestically and in Vietnam. Investigation costs are allocated from segment general ledger and will not impact marketing projections for Shield. 8
  • 11. 9 Section Eleven ‐ Global Marketing In analyzing the feasibility of marketing of Shield globally following figure reports data, quoted from The World FactBook, unless noted, produced by the Central Intelligence Agency allowing for a comparison of environmental variables between the United States and Vietnam. Figure 7 Global marketing comparison United States and Vietnam United States Vietnam Comparison Impact on marketing Geography North America, bordering both the North Atlantic Ocean and the North Pacific Ocean, between Canada and Mexico Climate: Mostly temperate, but tropical in Hawaii and Florida, arctic in Alaska, semiarid in the great plains west of the Mississippi River, and arid in the Great Basin of the southwest; low winter temperatures in the northwest are ameliorated occasionally in January and February by warm chinook winds from the eastern slopes of the Rocky Mountains Airports: 13,513* Railways: 224,792 km+ Energy production: Electricity‐ 4.099 trillion kWh (2011 est.) Crude oil ‐ 11.11 million bbl./day^ Refined Petroleum ‐ 18.45 million bbl./day (2010 est.) Natural gas ‐ 681.4 billion cu m^ Southeastern Asia, bordering the Gulf of Thailand, Gulf of Tonkin, and South China Sea, as well as China, Laos, and Cambodia Climate: Tropical in south; monsoonal in north with hot, rainy season (May to September) and warm, dry season (October to March) Airports: 45* Railways: 2,632 km+ Energy production: Electricity‐ 117 billion kWh^ Crude oil ‐ 363,500 bbl./day^ Refined Petroleum ‐ 112,000 bbl./day^ Natural gas ‐ 9.3 billion cu m^ Vietnam is just over 3% of the size of the United States in total area. Temperatures are more tropical for the country versus the regional temperatures in the United States. Transportation in the United States is vast; in contrast Vietnam has few airports proportionately to area size. The United States significantly outpaces Vietnam on energy production for every segment. The higher and more humid temperatures in Vietnam likely lead to increased sweat and odor, increasing the need for our product. Additionally, the lotion feature helps nourish and hydrate the skin, alleviating dryness. Limited transportation in Vietnam influences distribution negatively when reaching more rural areas. A lower energy production impacts the ability to produce Shield in Vietnam. This challenge can be overcome by employing energy efficient/green technologies.
  • 12. United States Vietnam Comparison Impact on marketing 10 Demographics Population: 318,892,103+ Age structure: 15‐24 years: 13.7% (male 22,436,057/female 21,321,861) 25‐54 years: 39.9% (male 63,452,792/female 63,671,631) 55‐64 years: 12.6% (male 19,309,019/female 20,720,284) 65 years and over: 13.9% (male 20,304,644/female 25,874,360)# Population growth rate: 0.77%# Birth rate: 13.42 births/1,000 population# Population 93,421,835# Age structure: 15‐24 years: 17.8% (male 8,598,360/female 8,023,377) 25‐54 years: 44.8% (male 20,983,638/female 20,861,243) 55‐64 years: 7.4% (male 3,149,494/female 3,763,309) 65 years and over: 5.6% (male 2,034,721/female 3,260,435)# Population growth rate: 1%# Birth rate: 16.26 births/1,000 population# Vietnam has just under 1/3 the population of the United States (29.3%), however Vietnam has a younger population indicated by the low percentages of people over the age of 55. Both the United States and Vietnam have higher percentages of people age 25‐ 54, 39.9% and 44.8% respectively. Vietnam outpaces the United States for both growth rate and birth rate. Having a smaller population than the United States, Vietnam will have smaller primary and secondary target markets, resulting in lower sales. Vietnam has faster growth and birth rates than the United States. As an estimate, at current rates, Vietnam surpasses the United States population in 2443. Cultural Two‐tier labor market resulting in large gap between groups of educated and higher income and low education and income. Languages: English 82.1%, Spanish 10.7%, other Indo‐European 3.8%, Asian and Pacific island 2.7%, other 0.7% (2000 census) note: the US has no official national language, but English has acquired official status in 28 of the 50 states; Hawaiian is an official language in the state of Hawaii Commitment to economic modernization in recent years. Part of the World Trade Organization promoting more competitive, export‐driven industries. Also, Vietnam is an official negotiating partner in the Trans‐ Pacific Partnership trade agreement in 2010. Languages: Vietnamese (official), English (increasingly favored as a second language), some French, Chinese, and Khmer, mountain area languages (Mon‐ Khmer and Malayo‐Polynesian) Unlike Vietnam, the United States has no official language. The United States is market driven, where Vietnam is agricultural. These market and industry differences may be the driving influencer behind population below poverty line rates (estimated 15.1% in the United States and 24.1% in Vietnam for 2010) As the Vietnamese government focuses on economic improvement, disposable income should increase for consumers resulting in increased sales. Having an official language, production and marketing of Shield may cost less proportionately than in the United States, where production and marketing has to be done in at least two languages (English and Spanish).
  • 13. United States Vietnam Comparison Impact on marketing 11 Economy GDP: $16.72 Trillion* Per capita GDP: $52,800* Industries: highly diversified, world leading, high‐technology innovator, second largest industrial output in world; petroleum, steel, motor vehicles, aerospace, telecommunications, chemicals, electronics, food processing, consumer goods, lumber, mining Occupations of labor force: farming, forestry, and fishing: 0.7% manufacturing, extraction, transportation, and crafts: 20.3% managerial, professional, and technical: 37.3% sales and office: 24.2% other services: 17.6% Unemployment: 7.3%* Inflation: 1.5%* Interest rates: as of June 16, 2014 Commercial paper (nonfinancial and financial 3 mth) 0.101 Money exchange rate: $1 equals 0.73 Euro2 GDP: $358.9 billion* Per capita GDP: $4,000* Industries: food processing, garments, shoes, machine‐building; mining, coal, steel; cement, chemical fertilizer, glass, tires, oil, mobile phones Occupations of labor force: agriculture: 48% industry: 21% services: 31%^ Unemployment: 1.3%* Inflation: 6.8%* Interest rates: between 2009‐2013 2.3%3 Money exchange rate: 1 Vietnamese Dong equals 0.000034 Euro4 Vietnam is sixth in comparison to the rest of the world in unemployment rates; however the much lower GDP and higher rate of inflation will affect pricing in the Vietnam market and drastically changes Pro‐Forma calculations. Average retail price for health and beauty products in Vietnam is significantly lower than in the United States. GDP, per capita GDP, unemployment influence pricing in Vietnam. A lack of diversity in occupations negatively impacts unemployment and per capita GDP. Limited Industries in Vietnam have a pervasive impact on large populations, directly affecting sales; negatively in recession and positively in ‘boom’. Pricing for affordability and appeal reduces net sales and profit margins significantly in Vietnam; however Shield should have appeal, resulting in a steady increase in sales over time, making Vietnam a viable and profitable market. 1 http://www.federalreserve.gov/releases/h15/current/ 2 https://www.google.com/intl/en/googlefinance/disclaimer/ 3 http://data.worldbank.org/indicator/FR.INR.RINR 4 https://www.google.com/intl/en/googlefinance/disclaimer/
  • 14. United States Vietnam Comparison Impact on marketing 12 Technology Main line telephone lines – 139 million^ Mobile telephone lines – 310 million^ Internet users ‐ 245 million (2009) Internet hosts ‐ 505 million (2012); note ‐ the US Internet total host count includes the following top level domain host addresses: .us, .com, .edu, .gov, .mil, .net, and .org Media: The United States has four major terrestrial TV networks with affiliate stations throughout the country, plus cable and satellite networks, independent stations, and a limited public broadcasting sector that is largely supported by private grants; overall, thousands of TV stations broadcasting; multiple national radio networks with many affiliate stations; while most stations are commercial, National Public Radio (NPR) has a network of some 600 member stations; satellite radio available; overall, nearly 15,000 radio stations operating (2008) Main line telephone lines – 10.191 million^ Mobile telephone lines – 134.066 million^ Internet users – 23.382 million (2009) Internet hosts – 189,553 (2012) Media: Broadcast media is government controlled operating a network of nine channels with several regional broadcasting centers; programming is relayed nationwide via a network of provincial and municipal TV stations; law limits access to satellite TV but many households are able to access foreign programming via home satellite equipment; government‐controlled Voice of Vietnam, the national radio broadcaster, broadcasts on 6 channels and is repeated on AM, FM, and shortwave stations throughout Vietnam (2008) Vietnam is limited in technology in comparison to the United States. Because broadcast media is government controlled in Vietnam, marketing measures will be affected. Marketing strategy will rely heavily on social media. Broadcast media, government controlled in Vietnam, is a challenge for advertising. More accessible for P&G and consumers is social media. However, there are fewer internet hosts and just under 10% of number of US internet users based on 2009 data. This limits our marketing across social media as well. Social media reach increases if most mobile device uses have data access; Vietnam has approximately 134 million mobile device users as of 2012.
  • 15. United States Vietnam Comparison Impact on marketing 13 Competition Globally, the P&G brand outperforms its competitors according to Forbes; ranking 40 globally, 81 for sales and 16 in market value. P&G brands are in major retailers with prominent placement on shelves. Pricing is affordable and often, nearly weekly, P&G offers product coupons via newspapers, online, and through social media. Vietnam has six avenues of distribution: “hypermarkets, supermarkets, commercial centers, shopping centers, convenience stores and specialty supermarkets” (vietnamonline.com, n.d.) however most distribution points are cramped and crowded, on the outskirts of cities. (vietnamonline.com, n.d.) Diana Joint Stock Company manufactures and distributes hygiene products and is based in Hanoi, Vietnam5 Annual Sales Volume is below $1 Million US6 Additionally Johnson & Johnson, L’Oreal, and Kimberly‐Clark are domestic competitors with market share in Vietnam. Pricing in Vietnam is significantly lower than in the US. Vietnam is experiencing increasing growth in market retail “far exceeding many other economies in the world, behind only India and Russia” (vietnamonline.com, n.d.) Additional points of distribution increase net sales and profit margin. Pricing for Shield is on average for Health and Beauty item sin Vietnam, however additional features make Shield more desirable than competitor products. +July 2007 estimate, ^2012 estimate, *2013 estimate, #2014 estimate 5 http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=114982700 6 http://www.alibaba.com/countrysearch/VN/hand‐sanitizer‐supplier.html
  • 16. 14 Figure 8 Vietnam market segmentation Demographic Segmentation Behavioral Segmentation Benefit Segmentation Growing demographic of expatriates working for US companies in Southeast Asia Vietnam caters to convenience shoppers – this behavior translates to other portions of their daily lives (Nguyen, 2014) Customers who see the convenience of using the product, Customers who feel they are currently missing this product Advantages: This group is familiar with brand name Advantages: This group enjoys the great values that exceed expectations and benefits, which Shield does. Product longevity would be a great selling point for this segment. Advantages: This group is currently marketed US products and Vietnamese products (sanitizing wipes). However Shield lasts longer has convenient, value‐based sizing and affordable pricing. Disadvantages: Existing loyalty to other US brand. Desire for cultural fit may lead to buying Vietnamese products. Disadvantages: Shifts to increase work/life balance may slow down this segment making convenience products less desirable. Disadvantages: Convince group of truth in advertising, that product performs as indicated and outperforms current products they may be familiar. Volume: Price and distribution are key for sales for this demographic. Volume: This group maintains a high paced lifestyle making Shield with 1 or 2 applications daily a desirable product. Volume: Potential for product sales is high if consumers are convinced of product performance. Differences domestically to the Vietnamese market require changes to marketing mix, positioning, and pricing strategies. Product design requires minimal changes. Namely, adapting the translation of Shield, bảo vệ, (Translate.google.com)(Nguyen, 2014) is important for product success in Vietnam. Product color may require tinting as green is interpreted as jealousy or lustiness and white is equated with purity, death and “the end” (bảohouse.net, n.d.). The blue in the Shield logo is highly desirable because it means “calmness, hope, growth” ” (bảohouse.net, n.d.) connotations that benefit sales and brand loyalty over time. Thanh Nien News online report from May 2014, indicates that since 2005, foreign retailers have flooded the Vietnamese marketplace, pushing Vietnamese stores out. Familiar store names and the brand logo P&G will likely be appealing to expatriates, increasing sales. Domestically, offering Shield in diverse cultural areas goes above and beyond consumer expectations, especially if adapting language and product design. Product position domestically focused on using national retailers, middle shelves at eye level in the hand sanitizer section or health and beauty departments in major retailers. In contrast, although Vietnam has six main distribution types (“hypermarkets, supermarkets, commercial centers, shopping centers, convenience stores and specialty supermarkets”) (Vietnam Travel & Living Guide, 2011), smaller retailers along the outskirts of major cities are more desirable as a point of distribution. These “no‐name convenience stores that still make up the majority of the Vietnamese retail market” (Vietnam Travel &
  • 17. Living Guide, 2011). Hypermarkets and supermarkets are often cramped and crowded. When positioning in Hypermarkets it is imperative that endcaps be used, almost exclusively, since aisles of narrow, congested and difficult for consumers to navigate. Pricing was significantly reduced for the Vietnamese market because of it lower GDP and per capita GDP. After reviewing Vietnam Travel & Living Guide’s article on comparable costs, a retail price of $3 or 63,915 VND and a wholesale price of $2.5 or 53,262.5 VND was set to stay affordable for consumers and competitive with other sanitizing products. Media avenues for promotion are stymied in Vietnam. Broadcast television is under government control. The best and most efficient use of resources is to limit promotion to social media, sampling and collaborating with distributors to increase consumer awareness and market share. 15
  • 18. 16 Appendix C: Target market select product survey results 1. How often do you wash your hands in a day? 18 16 14 12 10 8 6 4 2 0 1‐3 times 4‐6 times 7‐9 times 10+ times 2. How concerned are you with your contact to germs and bacteria? 16 14 12 10 8 6 4 2 3. What product(s) do you currently use to avoid contact with germs? 25‐34 years old 35‐44 years old 0 Not concerned Somewhat concerned Very concerned 25‐34 years old 35‐44 years old 18 16 14 12 10 8 6 4 2 0 Soap/Water only Hand Sanitizer only Soap/Water & Hand Sanitizer All selections 25‐34 years old 35‐44 years old
  • 19. 17 4. What benefit of this product is of MOST VALUE to you…? 18 16 14 12 10 8 6 4 2 5. Considering your day-to-day activities how OFTEN would you use this product 18 16 14 12 10 8 6 4 2 6. Based on the product description, at what price range are you LIKELY to buy this product? Purchasing likelihood representing only definitely buy or probably buy 0 Protects up to 16 hours Is a hand and body lotion Is a sanitizer 25‐34 years old 35‐44 years old 0 1‐3 times 4‐6 times 7‐9 times 10+ times 25‐34 years old 35‐44 years old 20 18 16 14 12 10 8 6 4 2 0 $4‐6.99 Definitely buy $4‐6.99 Probably buy $7‐9.99 Definitely buy $7‐9.99 Probably buy 25‐34 years old 35‐44 years old
  • 20. 18 7. What is the highest level of education completed or the highest degree you have obtained? 16 14 12 10 8 6 4 2 0 High school or equivalent Some college but no degree Associate degree ‐ all types Bachalor's degree Master's degree 8. How many persons live in your household? Doctorate degree 12 10 8 6 4 2 9. How many of those living in your household are children? 25‐34 years old 35‐44 years old 0 1 2 3 4 5 or more 25‐34 years old 35‐44 years old 14 12 10 8 6 4 2 0 0 1 2 3 4 5 or more 25‐34 years old 35‐44 years old
  • 21. 19 References Central Intelligence Agency. (2014, March 6). The World FactBook. Retrieved from CIA.gov: https:www.cia.govlibrarypublicationsthe‐world‐factbookgeosvm.html Coating Systems Laboratories, Inc. ‐ GermFree 24 ‐ Hand Sanitizer and Protectant. (n.d.). Retrieved from http://www.coatingsystemslaboratories.com/products_germfree.php De Nies, Y., Pirone, J., & Santichen, K. (2009, December 06). Hand Sanitizer: Good Hygiene or Just Hype. Retrieved from http://abcnews.go.com http://abcnews.go.com/GMA/Weekend/america‐obsessed‐hand‐sanitizer/story?id=9260788 Euromonitor. (2013, July). Beauty and Personal Care in the US. Retrieved from www.euromonitor.com: http://www.euromonitor.com/beauty‐and‐personal‐care‐in‐the‐ us/report Federal Reserve. (2014, June 23). Selected Interest Rates (weekly) H.15. Retrieved from Board of Governors of the Federal Reserve System: http://www.federalreserve.gov/releases/h15/current/ Forbes. (2014). Procter & Gamble. Retrieved from www.forbes.com: http://www.forbes.com/companies/procter‐gamble/ Google Finance. (2014, June 24). Finance data listing and disclaimers. Retrieved from Google Finance: https://www.google.com/intl/en/googlefinance/disclaimer/ PG.com Investor. (n.d.). IRWeblink. Retrieved June 5, 2014, from http://www.pginvestor.com/GenPage.aspx?IID=4004124&GKP=208821 Passport ‐ P&G 2012 SWOT Analysis. (n.d.). . Retrieved June 5, 2014, from http://www.euromonitor.com//medialibrary/PDF/ProcterAndGamble‐Company‐ Profile‐SWOT‐Analysis.pdf PG Annual Report ‐ 2013. (n.d.). Retrieved June 5, 2014, from http://www.pg.com/en_US/downloads/investors/annual_reports/2013/2013_AnnualR eport.pdf P&G. (2009). Human Safety Brochure ‐ The Tradition & Science of Safe Products. Procter & Gamble. (2013). 2013 Annual Report. Procter & Gamble. (2014). Core Strengths. Retrieved from http://www.pg.com/: http://www.pg.com/en_US/company/core_strengths.shtml Procter & Gamble. (n.d.). PG.com Home: sustainability, company, brands. Retrieved June 5, 2014, from http://www.pg.com/en_US/index.shtml
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