Company introduction
Introduction
SUNHOUSE group Jsc, formerly known as Phu Thang Co., Ltd, was established on22/5/2000 In 2004, SUNHOUSE took joint venture with SUNHOUSE Co., Ltd,Korea, established SUNHOUSE Vietnam Co., Ltd.
History of Formatic & Development
With 18 years of establishment and development, Sunhouse is proud to be the leading bird of the Vietnamese household industry
- In 2000: Sunhouse group, formerly known as Phu Thang Co.,Ltd, was established on
- In 2004: Sunhouse took joint venture with Sunhouse Korea Co., Ltd, established SUNHOUSE Vietnam Co., Ltd
- In 2010: Sunhouse is officially named Sunhouse Group Joint Stock Company, investing in many diverse fields ( Household goods, home appliances, kitchen equipment, industrial electrical appliances.
- In 2014: Expand the business area of civil electricity.
- In 2018: Raise the vision New face Next step to success
Vision
As the leading home appliances brand in Southeast Asia, Sunhouse is dedicated to ensuring consumer safety and health while catering to the diverse needs of the region's population The company is committed to evolving into a global brand.
Mission
Continuously research and apply advanced technology to help the majority of consumers have the opportunity to use high-end products with reasonable prices.
Core values
- Creative: Sunhouse is constantly pursuing new ideas and challenging ourselves to create new opportunities.
- Understanding: Always listening and caring for the needs and expectations of colleagues, customers, agent and shareholders.
- Standard: Give the trust to the people with genuine words, express the words that go with the action and take responsibility for what you do.
Executive Summary
- Constantly researching and applying modern science and technology to improve quality; bringing to the market products with eye-catching aesthetics
- excellent quality and absolute safety for consumers' health.
The "Vietnamese happy kitchen" ecosystem aims to establish a comprehensive value chain for modern kitchens, addressing all customer needs This includes providing high-quality home appliances, essential kitchen equipment, fresh ingredients, and flavorful cooking spices, ensuring a delightful cooking experience.
Our water purifier meets the drinking water standards set by QCVN06-1:2020/BYT, ensuring safe and clean water It features three convenient water modes: Hot, Cold, and RO With advanced 360-degree block cooling technology, it delivers cold water as low as 6 degrees, while also extending the lifespan of the machine compared to traditional chip technology purifiers.
Situation Analysis
Market Analysis
The report "Vietnam water purifier market by technology, sales, forecast and competitive opportunities 2011 - 2021" of TechSci Research From 2016 to 2021 also gives a positive forecast of the growth rate of up to 12.4%.
In less than ten years, Vietnam's water purifier market has experienced significant transformations, marked by the departure of established players and the emergence of new entrants, indicating that the market is more dynamic than it appears.
In recent years, the demand for clean water has surged, leading to an increased popularity of water purifiers equipped with both hot and cold functions, which offer enhanced convenience and safety for users Additionally, the Covid-19 pandemic has heightened awareness of health protection, making water purifiers a top choice for consumers seeking to improve their well-being.
Currently, the market has more than 400 different brands of water purifiers, the brands are mainly from the US, Japan, Korea, Taiwan, Thailand, Malaysia, Vietnam or joint venture with Vietnam.
Vietnam's water purifier market is thriving, showcasing a wide variety of models, types, and origins These products are available at significantly different price points, ranging from a few million to tens of millions of dong per unit.
Kitchen infrared Air purifier Double infrared cooker
Air cooler - Air conditioner fan
Oven Freezer Negative gas stove
PESTEL Analysis
Vietnam, a socialist nation, boasts a stable political climate and an evolving legal framework that fosters opportunities for businesses to plan their production and operations The government has reinforced the legal system to safeguard the interests of consumers and genuine manufacturers, implementing laws on standards, technical regulations, industrial property copyright, and packaging and labeling for electronic and electrical household products.
Sunhouse is committed to establishing a strong brand image through its SLIMBIO RO WATER FILTER products, which adhere to all technical standards mandated by law.
Since 1986, Vietnam has undergone significant economic and political transformations, emerging as a low-middle-income country rather than a struggling nation Despite facing global challenges, Vietnam has maintained a positive growth trajectory, with a projected growth rate of 1.82 percent in 2020, largely impacted by the COVID-19 pandemic Compared to its regional counterparts, Vietnam's economy has been recognized for its resilience and strong growth performance in recent years.
The Covid-19 pandemic prompted various nations to implement social isolation measures and limit activities, leading to significant reductions in consumption and temporary closures of industrial companies However, Vietnam managed to mitigate a severe economic downturn by adopting effective illness prevention and response strategies Despite the challenges posed by deep economic integration, the country showcased remarkable resilience, with an anticipated economic growth of 5.64 percent in 2021 if the virus's spread is successfully contained Additionally, export-oriented manufacturing industries performed well, and domestic demand rebounded swiftly.
During the pandemic, consumers have become more discerning with their purchases, prioritizing quality and reasonable pricing to ensure satisfaction SLIMBIO RO WATER FILTER products present an opportunity to demonstrate exceptional product quality at competitive prices, while also facing the challenges of meeting heightened consumer expectations during this time.
The population of Viet Nam is around 98 million people, with an average age of 32.9 years and 37.34 percent of the population residing in urban areas, according to
Vietnam boasts a significant working-age population, with Buddhism as its dominant religion and Vietnamese as the primary language The life expectancy in Vietnam is notably high, with men living an average of 93 years and women 81 years Furthermore, the middle and upper classes are rapidly growing, leading to an increase in travel among these demographics compared to previous decades.
This is a great opportunity for SLIMBIO RO WATER PILTER products to get closer to customers.
Reverse osmosis (RO) water purification technology is the most effective method for obtaining clean drinking water today Utilizing an ultra-thin filter with microscopic pores measuring just 0.001 micrometers, this technology allows only water molecules to pass through while blocking 99.99% of contaminants, including heavy metals, bacteria, viruses, and pesticides The impurities that cannot pass through are expelled as wastewater, which is why RO water purifiers are often associated with wastewater production With RO technology, you can enjoy pure drinking water without the need for reheating.
RO creates a wave of innovation by applying scientific, technical, and mechanical advances to life and production, thereby helping to improve people's lives more and more.
The SUNHOUSE RO water purifier utilizes advanced RO filtration technology along with essential mineral supplements, ensuring a reliable source of clean, mineral-rich water This innovative product is designed for safety and convenience, making it ideal for direct drinking and everyday cooking at home.
Vietnam, a sovereign nation with 54 ethnic groups, showcases a rich tapestry of regional identities and cultures, yet unites through shared values of patriotism, familial love, and national unity This collective sentiment significantly influences consumer attitudes, as Vietnamese shoppers increasingly prioritize "made in Vietnam" products, fostering national pride and supporting local businesses Additionally, the rising concerns over environmental pollution are prompting consumers to be more mindful of their purchasing decisions, aiming to protect the environment while contributing to the growth of the domestic market.
Since 2009, Vietnam's Ministry of Science and Technology has identified 13 categories of household electrical and electronic equipment as high-risk items that require safety regulation under QCVN 4:2009/BKHCN By 2012, an additional 7 categories were added to this list, emphasizing the importance of safety and electromagnetic compatibility in compliance with QCVN 9:2012/BKHCN.
The standard for assessing safety for household electrical and electronic equipment is the IEC 60335 Household and similar electrical appliances – Safety set of standards.
The IEC 60335 series of standards has been globally adopted, with many countries translating them into their national standards In Vietnam, these standards have been incorporated into the national standard TCVN 5699.
Five Forces Analysis
Customers are individuals and households.
External factors, from friends, relatives, family, affect the decision of customers.
Customers' needs: Product size, luxurious and eye-catching design, full of utilities, saving and optimizing electricity.
Price comparison between different brands, same segment.
Big brands are available in the market such as Kangaroo, Aqua, etc.
Reasonable price, same segment, similar items.
Customers are loyal to other brands.
A large sum of money is required.
Brand building is very difficult, because in the market there are already famous brands in the field.
Small businesses find it difficult to attain economies of scale.
Customers are loyal to the big brands available in the market, the emergence of a new brand that creates interest is very difficult.
There are many domestic and international suppliers.
There is a wide selection and product variety with relatively low affinity so the suppliers are secondary in this market.
In addition, Sunhouse can produce quality components by itself, which makes products more quality, more economical, and convenient for businesses in better product inspection.
There are other alternatives, such as spring water, carbonated beverages, and so on.
Alternative goods, such as boiling pots, filter straws, and so on, can give the same convenience.
A few goods can improve customer convenience while also harming the environment.
SWOT
New upgraded child safety lock feature.
When the power is out, the machine cannot filter the water.
The size is quite large compared to other companies' products.
When health is the top concern of customers, the demand for clean water increases Water pollution is becoming more and more serious, the market is starting to expand.
User demand is also more ready for high-end modern water purifiers in the kitchen
Domestic goods are prioritized by customers.
The water purifier market is growing rapidly.
Vietnam has joined the World Trade Organization (WTO).
Sunhouse does not really have a strength in water purifiers in Vietnam
Products in the same segment are produced by other company last year, with cheaper prise.
The pressure of water purifiers is very much in the market, domestic and imported.
Big companies have a massive share in the market.
The difference between Sunhouse's Slimbio water purifier and other products is very little.
Competitive Framework
- Become a leading firm in the manufacturing and trade of water treatment equipment, air treatment equipment, and household appliances in Vietnam and the ASEAN region.
- Kangaroo's aim is to build solutions that suit the needs of food hygiene, water source safety, air source safety, and time management and bask in the splendor of existence
- Kangaroo has the greatest rate of counterfeit products on the market today, leaving buyers perplexed while making purchasing decisions.
- The cost of replacing the filter core is expensive.
- Kangaroo starts with a video that was inspired by a commercial that went viral ten years ago.
- Kangaroo applies the first three principles from two masters Al Ries and Jack Trout's book "22 Immutable
Laws of Marketing" once more.
- Kangaroo's new TVC, like the commercial from ten years ago, concentrates on one topic without putting a lot of information into it.
- The machine's simple design makes it more compact, and it may be used in a variety of settings, including business offices, schools, hospitals, and homes.
- Use a RO membrane from the United States.
- Kangaroo water purifier has a variety of hot, cold, and cold faucets to meet a variety of consumer needs.
- Hydrogen Kangaroo water purification method utilizes a filtration mechanism to produce hydrogen in water.
Kangaroo water purifiers significantly reduce water leakage thanks to their tightly sealed joints, ensuring minimal risk of leaks Additionally, the robust design of the pump enhances durability, further decreasing the likelihood of water escaping.
To enhance consumer access to refrigeration products, particularly RO water purifiers, it is essential to optimize efficiency while focusing on the core values that users prioritize By eliminating unnecessary features, we can ensure that product pricing remains affordable for the majority, making these vital products accessible to a wider audience.
Expanding the water purifier market
The machine will not be able to filter the water if the power goes out.
RO membrane has a short life span and is easily clogged.
Introduce a new warranty policy for the R.O Sunhouse water purifier.
Sunhouse's strategy is to concentrate on meeting the demands of the target consumer group, owing to the advantages of having a big number of clients
(in the kitchen appliances market), a vast distribution network, and an active research and development center.
Supported by a large and well-known worldwide brand Samsung and Panasonic Technology Sunhouse Korea
Concentrate on product enhancement and innovation.
Bacteria are killed, and contaminants are removed.
A mineral compensation core is included to assist replenish the body's micronutrient requirements.
A nanofilter with excellent odor-removal capabilities.
The design is exquisite and gorgeous.
Competition
Customers are Customers are households, people who focus on health, focus on quality and price of product, income average
Customers are households, people who households, people who
Customers focus on health, focus focus on health, focus on on product quality, quality and price of average income - quite product, income average.
7th floor, HUDLAND 12th floor, Richy Tower, At 1 Dao Duy Anh Tower, Lot A-CC7, Linh
Headquarters No 35 Mac Thai To,
Street, Phuong Mai Ward, Dong Da
Dam Residential Area, Nguyen Huu Tho Street, Hanoi District, Hanoi Hoang Liet Ward, Hoang
Marketing Objective
Sunhouse’ goal for water purifier Slimbio R.O 19.500 units by 2023
Marketing Analysis
Target Segmentation
Main Dimension Segmentation Variables Typical Breakdowns
Newlywed families, long-term families, people who need to improve their health and life
Income Middle Income – High income
Density City and urban/rural
Main Dimension Segmentation Variables Typical Breakdowns
Innovators Many features Increase product durability Price goes hand in hand with quality
Touch control Easy to clean Elegant and luxurious design
Water quality certification, prestigious brand, specialized in water purification, warranty regime, modern technology, number of filter errors, water saving.
Target customers Woman (mother) in the family
Income From medium to high From medium to high
Location Rural and urban Rural and urban
Search benefits Focus on family health, convenience, time saving, high quality.
Focus on nutrition, focus on health.
Positioning
Currently in Vietnam, Sunhouse is gradually asserting product prices with good product quality
The SUNHOUSE Positioning Among Rivals
High-end segment water purifier Equipped with 10 Imported Filters High safety feature
Modern touch control for water intake
AioTec smart technology connects wifi.
High quality RO made in
RO 50 GPD made in Korea
Product offering
Polluted water is the leading cause of serious health problems Sunhouse is proud to offer a solution of pure clean water, with the new generation of water purifier Slimbio R.O.
It is a new high quality water filter product.
With a minimalist, modern design Compact, save 15% area.
Suitable for any space, interior style in the house.
The glass cabinet cover overflows, easy to clean.
The faucet is designed with 304 stainless steel, safe, durable, good heat resistance, minimizing water leakage rate
A versatile faucet featuring three modes—hot, cold, and a unique 360-degree block cooling technology—effectively addresses diverse customer needs This innovative technology allows for cold water temperatures as low as 6 degrees, ensuring enhanced performance and longevity compared to traditional chip-based water purifiers.
10-core filter with 3 levels of coarse filtration ensures clean filtration and effective protection of the RO membrane.
Removes 99.99% of harmful agents thanks to RO membrane DOW Filmtec (USA)
6 mineral cores add minerals, sweeten the water.
Going through the coarse filter, essence filter and mineral edema, the machine will filter out contaminated domestic water, unpleasant odors, impurities, harmful viruses.
Automatically stops when inlet pressure is too low.
Automatically shuts off when the water tank is full.
Marketing Mix – 4Ps
Simbio, the premium product line from Sunhouse, features a sleek and modern minimalist design that saves 15% more space than traditional appliances Its tempered glass with an overflow edge not only adds a touch of luxury but also ensures easy maintenance With its impressive aesthetics and practical functionality, Simbio is the perfect choice for any contemporary setting.
- Design 1 single faucet with 304 stainless steel structure, anti-rust, along with 3 rotary buttons of 3 modes, to meet the needs of each user.
- Smart connector cut-out reduces installation time by 70%
- Combined with the monitor mechanism, making the water cooled and stable by2.5% compared to conventional machines.
- Warning when the water tank is empty.
- Anti-shock ELCB system, ensuring for users
Performance a Set of 3 upstream prefilters SUNHOUSE SHA-WF123 is composed of 3 coarse filters, made of transparent PP material, safe and easy to observe:
- Filter core 1: PP core 5 Micron: Remove impurities, dirt size > 5 micron; increase the life of successive cores.Activated carbon (granular) GAC filter cartridge:
- Filter core 2: Partially adsorbs organics, heavy metals, pesticides, odors, etc.
- Filter core 3: Cation filter core: Treats water contaminated with limestone, softens water. b The R.O DOW Filmtec filter (USA) and a quality pre-filter with 6 filter errors with different functions:
- Filter core 4: Imported from Korea, the RO reverse osmosis membrane removes all pollutants, heavy metal ions, bacteria, organic compounds, amoeba, arsenic, and other contaminants, leaving the water perfectly pure.
- Filter core 5: Flavoring core, pH balancing, mineralization, and natural sweetness for water are the five cores of the filter.
- Filter core 6: Mineral stone core, which provides the body with trace minerals such as iron, calcium, magnesium, and other minerals found in nature.
- Filter core 7: Alkaline generator core, which raises the pH index, produces alkaline water, and neutralizes excess acid in the body.
- Filter core 8: Polarizes water molecules, making it easier for the body to absorb water.
- Filter core 9: Bactericidal core (nano silver) kills germs, deodorizes, balances pH, adds minerals, and gives water a natural taste. c Provide beneficial minerals
- Filter Core 10: ORP core produces water with a high pH and low electrolytes, reduces oxidation, and provides clean, safe water.
In the table is price of Slimbio at official store of Sunhouse
According to a Deloitte research on the Vietnam consumer survey 2020, the majority of customers choose to buy consumer electrical items via supermarket chains, shopping malls, and enterprise store systems,
- Accounting for around 80% of the total.
- About 15% of purchases are made through traditional commercial channels.
- The online commerce channel accounts for around 5% of total sales.
Sunhouse effectively develops diverse pricing strategies tailored to market demands, reflecting a deep understanding of consumer needs and preferences With the introduction of its Slimbio water purifier line, the brand aims to penetrate the high-end market, competing against rivals like Kangaroo and Karofi, which attract consumers through competitive pricing.
- For partners (customers) who are electronics supermarkets such as Dien May Xanh, Cho Lon, and others, the value is quite high The price will be negotiated/
- For conventional electronic shop dealers (level 2 agents) Sunhouse will give discount to agents who sign a contract with them.
- Sunhouse gives customers incentives and prizes in addition to prices for items purchased at Sunhouse's system stores.
Plan 1: Showrooms for sunhouses -> customers
Sunhouse's website is https://sunhouse.com.vn/ customers may pick from a variety of options and purchase online to earn rewards.
At the showroom: Sunhouse showrooms may be found in all provinces and towns around the country.
Plan 2: Sunhouse — Customers interact with an electronic supermarket system.
Customers choose supermarket chains, shopping malls, and a system of business outlets based on a full introduction, selected items, gift policies, promotions, and assistance Approximately 80% of the population takes this type.
Plan 3: Sunhouse — Traditional store (level 2 agents)
Customers prefer brick-and-mortar establishments because they are simpler to barter with on price This type accounts for around 15% of all transactions.
Slimbio water purifier products are available in all provinces, both conventional and online, and are easy to find, buy, and use.
Advertising objectives: Popular forms of advertising, easy to reach users, so that customers can add options, refer to Sunhouse's filtered water.
Messaging: To show that Slimbio is a family brand, we send out the same message to all of our customers: "choose purity - live comfortably”.
Purpose: + Use social ads to present new product features to customers and debut products to the market.
+ Increase brand awareness (Brand Awareness)
Youtube: Advertising on channel SUNHOUSE GROUP, Dien May Xanh, etc Facebook: Carousel AD
With the Sunhouse Group channel, videos are advertised to reduce advertising costs
Use promotional videos on other youtube sites with a price of 50 VND/view.
Use promotional on Facebook with a price of 500 VND/view.
Sunhouse always promotes the content of television advertisements to suit each period and catch up with consumer trends The program will introduce slimbio R.O water purifier product.
VTV3: 2021 - 2022: Sunhouse co-sponsor: program " Dau Truong Am Thuc"
VTV1: 2023: Sunhouse co-sponsor: program " Am Thuc Duong Pho"
Location: Board Door To Tan Son Nhat Airport, Ward 2, Tan Binh District, Ho Chi Minh City
Location: 325 Giai Phong, Dong Da, Hanoi
Location: Supermarket - Electronics supermarket in nationwide
Time: First 6 months of 2021 Total budget: 360.000.000 VND Purpose: Increase brand awareness (Brand Awareness)
Purepose: Conveying information, trust, and product quality with the brand representation of football player Tien Linh
- 750 million VND for 8 hours photo with Slimbio
- 1.800 million VND for using image on mass media during 6 months
- 750 million VND for billboard during 6 months
- 350 million VND for 7 posts on Fanpage TIEN
To ensure the effectiveness of Sunhouse Slimbio RO's marketing strategy, it is crucial to evaluate its performance by tracking key elements like profitability, promotional effectiveness, and consumer perceptions The Sunhouse marketing team utilizes research methodologies and measurement tools to facilitate this evaluation process, ensuring that their approach aligns with overall business objectives.
Financial Summary
- In the above table, Slimbio RO water purifier is forecasted with revenue and sales volume from 2021-2023
Source Units Sales Units Sales Units Sales Units Sales
Proportion of sale per year
- The bar chart below depicts our sales prediction from 2021 to 2023 for SHA76213CK-S and SHA76214CK-S
SALES FORECAST SLIMBIO FROM 2021 TO 2023
Launched in 2021 during the Lunar New Year celebrations, the Slimbio RO water purifier experienced a significant sales boost of 34% With rising demand for high-quality water, Slimbio RO is projected to capture 38% of the previous year's sales in 2022 Meanwhile, Sunhouse may enhance its product offerings while reducing overall usage.
- This table show our advertising campaigns for 3 years.
A dv er ti si n g C am pa ig n s
Advertising On Dien May Xanh (Social network Ads) channel 150
Advertising On VTV3 – “ Dau Truong Am Thuc” 1.300
Advertising On VTV1 – “ Am Thuc Duong Pho” 700
Pano advertising in TAN SON NHAT AIRPORT 1.200
Pano advertising in 325 Giai Phong, Dong Da, Hanoi 1.505
Using image on mass media during 6 months 1.800
Posts on Fanpage TIEN LINH 350
Leaflet for first 6 months of 2021 360
Marketing expenses for the SHA76213CK-S and SHA76214CK-S account for around 5,2% of overall income, according to Sunhouse Group's prediction.
Advertising (67%) Promotion (20%) Retailer discount (4%) Distribution channel (7%) Other (2%)
- We decided to deduct 7,76% of total revenue for marketing budget, so it wil be 7,76%x 251.431= 19.526 million VND.
- The following table shows the figures of our estimated marketing budget for SHA76213CK-S and SHA76214CK-S.
- The following bar chart shows the total marketing budget for SHA76213CK-S and SHA76214CK-S.
In our marketing strategy, we allocate the majority of our budget during the first two years to achieve maximum unit volume However, in 2023, we plan to cut our marketing budget by over 50% compared to the initial year to facilitate the launch of new products.
This article outlines the marketing strategy for the SLimbio RO water purifier in Vietnam, highlighting Sunhouse's potential to strengthen its brand presence in the water purifier market By achieving sales targets, the company aims to cover product development and advertising costs, ultimately leading to overall profitability, supported by a thorough cost-benefit and marketing analysis.