5.3 Budget and Detail of Marketing Plan: IMC Plan
5.3.2 Detail of Marketing Plan: IMC Plan
For the first year brand entering into Viet Nam’s market, we focus on function of Go Choco sandwich biscuit:
Triple your tastes: crispy of biscuit, milky of vanilla and creamy of chocolate
Consumers Insight
“Want to have a nutrition product and reasonable price”
Product Value
“The distinct, convenient &
healthy biscuit”
Communication Message
“Triple your taste”
Figure 5.3: The IMC Plan for Go Choco biscuit
a. Trade Sales Promotion
Objectives: Support sales team to push sales by encouraging wholesalers, distributors and retailers to stock Go Choco biscuit. These activities also build brand awareness and brand image for Go Choco.
In this section, we focus on trade sales promotion only. The distribution channel (a “push strategy” encouraging the channels to stock the product).
How to do:
There are many trade sales promotion techniques. We must consider and choose the best tactics for Go Choco biscuit. For brand-new product, dealer loader is an incentive given to induce a retailer to purchase and display a product. And this margin rate should be a little bit higher comparing with indirect competitors. According to in-depth interview with 4 retailers at wet markets in HCMC and the psychology of any retailers and businessmen,
upon each introducing of a new product they just think of the amount they earn after selling this product. The higher margin the retailers get, the more frequent they will introduce Go Choco biscuit. The sales manager should have experience in building scheme, but the tentative proposal for distributor incentive as below:
Table 5.2: Margin scheme proposal for Go Choco distributors
The second technique is trade contest. It is a contest to reward retailers (not apply for wholesalers and distributors) that sell the most products. Each retailer has an account in Mayora Viet Nam website and they can check their sale volume, their benefit they will receive when ordering the new purchase order. This encourages retailers to visit Mayora Viet Nam website and update news policies, product knowledge. Otherwise, salesman will inform but not recommended. The contest duration is one year and gift, for top 3 highest sales will be winners, is the same with the gift for digital contest of TAs.
The third tactic is point-of-purchase displays used to create the urge of "impulse" buying and selling our product on the spot. Habits of consumers, especially women, often purchase a new product and make buying decision at point of sale, although previously no demand. So making reasonable display of goods will make it easier for consumers to choose Go Choco biscuit for their kids. At the point of sale, a product only has a few seconds to attract the attention of buyers. Therefore, an important factor leading to the product display is easily visible. For this, first select is the correct position. Whether products of enterprises with eye-catching packaging, if we place at wrong position,the product will not get a chance to be seen by end-users. We can inform the retailer the quantity of product display. For example, to get the reward, a store must have at least 10 Go Choco hangers at the same time. All plan must follow process deploying – doing – checking and rewarding. This assessment will be executed objectively by a third party. We can pay more for store owners in case they introduce Go Choco biscuit to staff who is an
Unit Price/Pack Percent compare with
Selling Price Margin Purchase Order Quantity 36,000
75% 25% <10,000 packs
34,200
71% 29% >10,000 packs - 20,000 packs
32,400
68% 33% >20,000 packs - 30,000 packs
30,600
64% 36% >30,000 packs - 40,000 packs
auditor or mystery shopper when he or she communicates and intends to buy something to eat or for his/her kids. This is called auditing and mystery shopping. It is an effective tool for consumers to know and buy Go Choco biscuit.
Besides Huong Thuy distribution, Mayora recruits and sets up an exclusive sales team and trade marketing will be companion with them to support sales team for pulling the consumer to the store to buy products. At the same time, trade marketing performance measures for customer identification products at the best stores (consumer reception).
Besides, sales promotion with “pull strategy” for consumers is concerned in the next session: sampling and selling activation for consumers.
Where to do:
This policies offers only to distribution channel: Mayora should build a clearly trade sales promotion of Go Choco biscuit to wholesalers, retailers and they are willing to pay and stock.
When to spend:
At launching event, when we inform with related distributors, wholesalers, journalist…that Go Choco comes officially in Viet Nam’s market. We should alternate the trade sales promotion each two months then come to normal one month and continue to begin a new sales promotion campaign or depend on the actual sales result to decide scheme and duration of promotion.
How much to spend:
The cost for trade sales promotion is estimated 1.1 billion VND, accounting for 27% of total marketing budget. This budget will be allocated to margin expense with 50%, third party for auditor and mystery shopper is 40% and 10% for final trips to Indonesia of 3 retailers.
Table 5.3: Trade sales promotion expense for Go Choco 2012
How to measure results:
Sales Division and Trade Marketing will be responsible for the sales volume each week.
Team will measure, to evaluate weekly, monthly the result in sales during the promotion, normal period without any promotion programs. From that, company can adjust the program, balance campaign duration for the most effectiveness.
Trade sales promotion is the major activity to push sales and to increase sales volume. And as usual, there are about 80 % turnover come from GT channel. If trade marketing exploits and manages well this campaign, a plus point is Go Choco taste suit with Vietnamese so the sales team feels confident to persuade retailers and easily reach the target.
b. Digital Marketing
Objectives: Expand Go Choco awareness and build brand image. It also indirectly pushes sales.
How to do:
Building a product website and a lot of people know and visit it daily is difficult. Fan is precious. They help brands more valuable than normal consumers. From a medium branding 62 % of fans believe that this brand has advantages compared to other brands, while regularly consumers of this figure are only 19 %. Fan spends 4 times for their favorite brands than the average person. This is not the result that fan page provides, instead, the relationship of brand has led consumers to become fans. The challenge for fan page is how can we enhance and maintain the relationship between which has a positive attitude about the brand.
According to www.socialbakers.com, Oreo cookies of Kraft Foods has more than 25 million fans, more than 300 thousand people talking about and fan growth speed about 24 thousand per day worldwide. Thus, through facebook, Go Choco can deliver product
No. Activities Amount (VND) Remarks
1
Margin for distributors, wholesellers, retailers 576,000,000 There are est. 8,500 retailers, including online purchase. (Appendix b) 2
Auditing and Mystery Shopping 405,000,000 15 auditors x 4mil/month x 6 working months + ad. agency fee 3
Gift for winner sales contest 150,000,000 3 couples to Indonesia trip
Grand Total 1,131,000,000
information and build a contest for TAs, for its consumers. The importance is the subject, theme. This must link to each stage of Go Choco product and communication voice.
For the first year, we focus on the ingredients of product and must play under or around the theme “triple your taste”, great combination with three tastes in one bite or “3 in 1” with eating Go Choco biscuit, learning and playing a lot of thing. When the consumers buy Go Choco biscuit, they can join Go Choco facebook, website, then enter the product code, upload and share their moments or their target or passion in life: video, photo, story….
These are controlled by administrator and voted by community network. The top 10 consumers or fans with their one family member will receive an Indonesia trip combining with coming Go Choco factory at the ending of school year.
The result of the above trip will be used for PR in the marketing plan second year.
The theme and objectives of online contest will be briefed to three digital advertising agencies to brainstorm and propose a detailed plan. The timeline for well prepare should be one month for briefing and pitching. One week for consider the proposal and decide to go with which agency. Then we have 1 month to develop website and build an online platform to pilot.
The second plan is deploy the e-commerce via Vietnamese trustable groupon websites such as muachung.vn, nhommua.com. The advantages are low cost, pay for performance vs.
newspaper advertising, easy approach huge of consumers, use exiting of the groupon website coverage and transportation. Groupon pitches our business to its installed customer base. For each person that buys, we get a cut and groupon gets a cut of the revenue. The customer pays groupon, and when the customer redeems the certificate, we submit to groupon for payment.
Where to do:
There are two place digital website or Mayora Viet Nam’s website and groupon websites such as muachung.vn, nhommua.com…
When to spend:
For digital contest: kick-off campaign on “back to school” period, maintain and manage all databases each quarter for top 10 winners during one year and ending in June next year.
For groupon form, we do it during a year.
How much to spend:
Cost for building digital, winner’s gift and groupon style are estimated 0.5 billion VND.
How to measure results:
Digital Agency to create website, manage databases and report weekly, monthly. One marketer is person in charge for this campaign.
c. Sampling or Selling Activation
Objectives: Push sales and increase brand awareness.
The activation has two impacts for both Consumer and Retailer. For consumers, they have chance to do trial, to aware brand, to buy Go Choco with promotion scheme. For retailers, they sell Go Choco and receive the incentive and percentage of mark up price from distributors. For the brand-new product as Go Choco biscuit, trial or driving trial is the best way for consumers to feel and taste the delicious appeal.
How to do:
Direct contact and attract TAs with exciting game, non-commercial and cleverly incorporate ingredients such as biscuit, chocolate, cream… into these games and winners will receive a piece of Go Choco for trial. Game must be designed customized to each channel and TAs.
Selling with special promotion scheme: The process: base on marketing plan and brief, advertising agency makes a working plan and estimates the sales amount to salesman at least one week before executing. The salesman will inform retailers or shop owners about this marketing campaign, persuade them to order Go Choco biscuit and at the execution day, PGs and PBs of ad-agency will buy the products from these indicated stores around activation area and sell to consumers with the same price but attached gifts.
Inform and instruct the key TAs at school for the digital running contest in the Go Choco website and facebook and encourage them to join. For each channel we tailor the activities to have the best result.
Firstly, we do activation at secondary school and university. Viet Nam law does not allow do selling at any form at school channel so we do activation and redemption booth. When pupils and students buy any Go Choco product at retailers and canteen, they will receive a small gift at our booth in school yard. If they did not buy, they can join some exciting game and get the product trial. They also have a chance to go to website and participate in the online contest via product code.
The activation team will buy the products at the canteen and give sampling to game winner. This is decrease benefit conflict between the school owner and canteen owner when activation team does activities at the school.
By buying the product at canteen, activation team informs the redemption at retailers. They will directly update to their consumers and this is also an effective way to push sales.
Secondly, public area such as theme park, wet market, apartment and supermarket will be scheduled in December.
Both channel to serve primary and secondary TAs, the process to get the goods and do a redemption and activation at field as below figure.
Figure 5.4: Buying Go Choco biscuit process when do selling and sampling at GT channel
With this process, retailers are happy to give an order to sales team as well as avoid the benefit conflict between the promotion for end users and retailers.
Where to do: School includes secondary and universities and public areas include theme park, apartment, wet - market.
Scope of work: Do activation at HCMC, Ha Noi and Da Nang. This is 3 key cities and approach three areas North, South and Center.
When to spend: For school channel: 2 months in September and March 2012.
First round will active at secondary school and universities at the occasion “back to school”. Three months after launching, sales team must prepare and cover full of agents and retail shops near or inside the school (canteen). And in March, before summer holiday two months, team will come back to push sales as well as reinforce the online contest.
For public areas, we should do activation in December and Jan, on holidays and near year- end for huge traffic.
How much to spend:
Regarding school channel and public areas, all expense for salary, POSM, game, management, location, transportation, and gift for redemption or for game’s winner within 4 months are 1 billion VND.
And as normal cost for all expense from human resource to POSM is a half of sales amount.
How to measure results:
Based on the population and market analysis, within 2 months in December and January, we can reach 15 % of amount pupils and students at TAs, equal 42 thousand people and est. sales amount 756 billion VND.
Estimated result from sampling or selling activation at GT and MT channel within 2 months in December and January. Total est. sales amount are more than 2 billion VND through campaign.
We estimate the percent of approach for the first TAs in these channels is 10 % of total quantity, because this is not the location for this group.
And estimation at school channel is:
Marketing department should balance the scope of work and control well the cost if we co- operate with advertising agency. We must request schedule and timeline for report and always remember to set clearly the Key Performances Indicators with third party before running the Campaign.
d. Event and Sponsorship
Objectives: Step by step build the brand awareness and brand image to Viet Nam consumers through social and community activities.
How to do:
As research in the Chapter IV, along with the development of the economy, Vietnamese consumers are increasingly concerned to the responsibility of the business to community.
Besides factors such as price, product quality, after sales service ... the prestige of the business community also plays an important role, impact on consumers’ choice decisions of products. Knowing for marketing department always focus on building and maintaining the image and reputation of Go Choco and Mayora in Viet Nam community, linked to the activities beneficial to the community and environment.
Therefore, social welfare activities are an integral part of the marketing plan. Need build consistent, specific plan, throughout each year and has its own costs. Employees or authorized agency to implement must be carefully selected. They must professionally work to avoid serious adverse effects.
Marketing department should choose suitable time and occasion to approach right TAs.
Do sponsor on holiday and occasion such as sponsor products and organize meaningful activities on annual Mid-Autumn day for poor children, the child protection organization has special circumstances, or at the poor provinces.
At the Central of Viet Nam, in lunar September and October yearly, it is rainy and flood season. After this natural disaster, there are many miserable lives, circumstances. And these poor pupils will be always accompanied sincerely with the Go Choco biscuit to overcome difficulties, overcome suffering and continue to go to school. With the reasonable price, delicious taste and emotional share, Go Choco will be the top of mind when these pupils, consumers can afford to buy the necessaries of life.
We can implement sponsor projects by smartly combine business and cultural, social activities such as holiday, Lunar New Year… This will not only bring practical benefits but also helps to build corporate, brand image.
And finally, how to think the best way to link Go Choco biscuit to theme “the great combination”: crispy, milky and creamy sandwich biscuit to healthy image, balance between eating, learning and playing, Go Choco biscuit can connect to Phu Dong Sporty Event which is held yearly to sponsor a suitable sport for uniform, products to winner gift, medal…for teams participant.
Where to do: Any time when marketers contact and have a suitable and meaningful event or occasion.
When to spend: Mid-Autumn, rainy and flood season, student day in September, Terry Fox Run, cross-country awards of pupil and student on December, Phu Dong sporty event in March…and all occasion related to the primary and secondary TAs. Marketers actively search and contact to be a sponsor
How much to spend:
e. CRM
Objectives: Manage the consumer relationship to build Go Choco brand awareness by listening client’s feedback and providing knowledge related to Mayora Company, product specification. The second objective is to win consumers’ trust.
How to do:
Build good, trustable relationship between distributors, retailers and consumers side and Go Choco biscuit side. It is effective tool for strong interaction through receiving market information from consumers and giving product, promotion campaign from the company.
Figure 5.5: Model of collaborative CRM
Source: www.fidis.net
Free hotline service - where consumers, wholesales can call and ask specific advice relating to getting the best use, promotion campaign of their product. And for Go Choco biscuit in Viet Nam, setting up a toll free phone services with the prefix 1800 xxxx, free cost is essential to prove the high quality, to prevent the fake and illegal imported ones.
Moreover, customer care is essential to create goodwill in the marketplace and is the first concern of all businesses in an environment increasingly fierce competition now. 1800 services are the most effective way to introduce and promote products and after sales support, feedback about our product, market information. Because both consumers, distributors will not have to pay charges for the call and it is very convenient to call at any
place, just remember the toll free phone number.
For Go Choco biscuit consumers, from distributors, retailers…to end users, they can call