Digital Money Maker Club – von Gunnar Kessler digital.
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
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
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De Nies, Y., Pirone, J., & Santichen, K. (2009, December 06). Hand Sanitizer: Good Hygiene or
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http://www.federalreserve.gov/releases/h15/current/
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http://www.forbes.com/companies/procter‐gamble/
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eport.pdf
P&G. (2009). Human Safety Brochure ‐ The Tradition & Science of Safe Products.
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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
22. 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#