Strategic Marketing Proposal-Nguyen - Quynh
Strategic Marketing Proposal-Nguyen - Quynh
Strategic Marketing Proposal-Nguyen - Quynh
CONTENT
1
INTRODUCTION
1.1
Background
1.2
1.3
Research methodology
1.4
1.5
Thesis structure
2.1
2.1.1
Company
10
2.1.2
Consumers
10
2.1.3
Competitors
12
2.1.4
SWOT Analysis
17
2.2
18
2.2.1
Segmenting
19
2.2.2
Targeting
21
2.2.3
Positioning
25
2.3
30
2.3.1
Consumer value
30
2.3.2
Consumer costs
31
2.3.3
Convenience
31
2.3.4
Communication
32
MARKETING RESEARCH
33
3.1
33
3.2
35
3.3
Data acquisition
39
3.4
Data analysis
41
42
43
SUMMARY
44
REFERENCES
45
APPENDICES
50
LIST OF FIGURES
FIGURE 1. Research methodology
14
16
19
22
23
26
28
33
40
LIST OF TABLES
TABLE 1. Consumer analysis
11
17
19
34
39
GLOSSARY
ACD
BA
Beauty Advisors
BB Cream
CC Cream
CPD
CT
Counters
FGD
GT
General Trade
LPD
MBL
Maybelline
MM
Marketing Manager
MNY
MT
Modern Trade
PPD
1.1
INTRODUCTION
Background
Since the first time entering the Vietnamese market in 2007, Maybelline New
York Vietnam has obtained a rapid growth over years. In a recent report, MNY
Vietnam has the highest growth rate in the Asian Pacific area with 22% (Asian
zone report in 2014). Within less than 10 years, MNY has become the leader in
the mass makeup market, especially the mascara segment with 90% market share.
Lip business has also proved to perform well, highly competitive in color lip
products with a growth rate of 23%. However, the facial category does not enjoy
as high a growth rate as the others. Maybelline still has a long way to go to
compete with LGs Essance (Korean brand) for the first place in makeup powder.
Meanwhile, BB Cream maintains the same sales figures without much promising
advancement in the near future. (LOral Vietnam Internal report Q-2 2014).
However, BB Cream market in Vietnam is growing at a rapid rate, proving to be a
very potential market in a short period of time. In 2008, MBL was the first brand
in the market introducing BB Cream, a breakthrough product replacing traditional
foundation and moisturizer. Two years later, Korean brand Essance jumped into
the field and started to share the market with Maybelline. Until now, 2014, almost
every cosmetics brand in Vietnam has its own range of BB Cream. This market
has become highly competitive. In the mass market, there are three main players:
Ponds (Unilever), Essance (LG), MBL (LOral) and lots of Korean and
unbranded products. With lack of focus on this segment, MBL BB Cream cannot
secure its success from earlier days.
In order to improve this business, MBL has requested the author to do research
and propose plans to solve this issue and make MBL No.1 in this market. To
prepare a feasible plan, the author was advised to conduct market research to
understand the market and get sufficient consumer insights.
1.2
This thesis aims at providing valuable consumer insight about BB Cream and
good understanding of the current market. Based on that, the research will help
point out the way to develop this category of MBL. Therefore, the ultimate goal of
this report is to provide the commission company a feasible plan to grow its BB
Cream business strategically.
The main research question: How can MBL grow its BB Cream business in
Vietnam?
In order to achieve the objective as well as answer the main research question, the
following sub-questions are established:
1.3
Research methodology
Research
approach
Deductive
Research
method
Quanlitative
Quantitative
Data
collection
Theory
Hypothesis
Observation
Confirmation
On the other hand, inductive reasoning has an opposite approach, starting from
specific observations and facts to find out patterns in the data. From that, the
researcher generalizes theories that could explain these patterns. This reasoning
can be informally called as bottom-up approach.
Theory
Pattern
Tentative
Hypothesis
Observation
1.4
In this thesis, the author only focuses on young female consumers aging from 15
to 27, which is considered as main target groups. The consumer insights play a
vital role in building the marketing plan. Even though Maybelline has the highest
level of sales channel coverage (General Trade, Modern Trade and Counter), the
brand positions itself as Consumer Products. Therefore, this research only focuses
on competitors in the mass market. The market research and survey are conducted
in five big cities of Vietnam (Ho Chi Minh, Ha Noi, Nha Trang, Da Nang and
Bien Hoa) where cosmetics products are well consumed.
It should be noted that this study only aims at giving the case company
suggestions based on insights of end-consumers and analysis of main competitors
promotion activities. The thesis does not focus on wholesalers, retailers and trade
marketing issues. Differences between distribution channels will be discussed but
not in-depth analysis as well. Besides, the proposal plan is just the guideline for
Maybelline setting its strategy, not a detail launching or communication plan.
Therefore, it is highly recommended that the company should carry out further
research to form a specific product marketing plan, if it decides to extend the
portfolio and consumer base.
This research is relatively broad as the author aims at providing the case company
better understanding about its consumer so that MBL can re-evaluate its
performance as well as prepare for new launch projects in the near future.
1.5
Thesis structure
This thesis is structured into two main sections. The first section is about
theoretical framework, which is discussed in Chapter 2 with all the theories, tools
and methods applied in the empirical issues in the second section. Those theories
include the 4Cs model to analyze the company current business situation,
consumer-value strategy and new model of marketing mix.
The second section of this thesis consists of two chapters. Chapter 3 is about the
market research process indicating how the author managed to get consumer
insights and market intelligence by conducting focus group interview, mass
survey and field visits. After that, Chapter 4 discusses about BB Cream business
of Maybelline and how to grow this category in the Vietnamese market by
stratetries formulated from information acquired in previous chapter.
Chapter 5 helps to answer the main research question and some recommendations
are formed for further research. Last but not least, a summary of the whole
research project will be provided in Chapter 7.
Following is the illustration of this thesiss structure:
Introduction
Chapter 1
Theoretical framework
Chapter 2
Market research
Chapter 3
Empirical Part
Chapter 4
Chapter 5
Situation Analysis
Consumer-value strategy
Marketing mix
Conclusion
Recommendation
Summary
Chapter 6
Over the past four decades, marketing strategy has become the subject of
considerable research in both business and marketing literature. Marketing
strategy can be defined shortly as the means an organization uses to achieve its
goals. (West 2010, 34-37.) According to Craven et.al (2009), the development of
marketing strategy consists of forming a strategic vision and selecting market
targeting as well as positioning strategy for each market target. To complete this
process, the understanding of the marketing environment and competitive space
plays a vital role. (Cravens 2009, 31-49.)
In order to profitably satisfy consumer needs, a company must understand its
marketing environment thoroughly (Situation Analysis). Kotler (2012)
emphasizes that marketers must pioneer in being environmental trend trackers
and opportunity seekers. It is important for a company to study its marketing
situation carefully so that it can adapt strategies to meet new marketplace
challenges and opportunities. (Kotler 2012, 90.)
According to Johnson and Scholes (2005), a holistic strategic marketing plan
consists of three stages: Strategic analysis, Strategic choice and Strategic
implementation. Strategic analysis helps marketers understand the strategic
position of the company in terms of internal competencies, external environment
and stakeholders influence. Based on the analysis, strategic choice generates
strategic options for evaluation. Finally, after weighing all the options, strategic
implementation plays the role of being the translation of strategy into actions with
tactical plans. (West 2010, 70-71.)
Since the outcome of this study is providing case company with strategic
proposals, suggesting direction to develop its BB Cream business, the author only
focuses on strategic analysis and strategic choice. Strategic implementation will
not be discussed in detail in this research.
2.1
Macroenvironment
Economics
Consumer
Technology
Microenvironment
Company
Collaborators
Political
Competitors
Social
Environment
Since the case company Maybelline New York has already in the market and
established its brand awareness and success for a while, macro analysis is not
studied in this research, but in-depth analyses of micro and internal environment
will be provided.
In order to perform the marketing environment analysis, the author decides to use
3Cs model of Kenichi Ohmae (1982), which focuses on three factors for success:
the company itself, its consumer and competition (Tarun 2007).
2.1.1
Company
2.1.2
Consumers
Amstrong and Kotler (2013, 97-98) have emphasized the role of consumer as the
most important one, forming the basis of any strategy (Ohmae 1982). Since the
ultimate goal of a business is to satisfy consumer needs and build strong bond
with them, the foremost concern of a company is the interests of its consumer. As
a result, a consumer analysis is considered one of the most important parts that
Market segmentation
Consumer behaviors
Unmet needs
SEGMENTATION
CONSUMER BEHAVIOR
Product perception
UNMET NEEDS
Since the case company requested author to focus on finding consumer insights,
this part will be paid more attention and effort to dig deep into consumers
perception, habits and attitude toward Maybelline brand and the research product
category.
2.1.3
Competitors
Threat
of
new entrants
Bargaining power
of
suppliers
Rivalry among
existing
competitors
Bargaining
power of
buyers
Threat
of substitute
products
FIGURE 6. Industry structure: The five forces (Porter 2008)
However, in this case study, the aspect of suppliers bargaining power will not be
discussed. As a fact, Maybelline Vietnam is operating as a franchise BB Cream
business; therefore, all the products will be imported from manufacturing hubs in
Asia (Indonesia and China). The company would have no supplier in Vietnam in
this case.
company to identify some strategic uncertainties that need more observation and
monitoring over time. (Aaker 2008, 44-48.)
Therefore, the goal of competitor analysis is set to acquire insights that influence
the development of a successful business strategy (Aaker 2008, 39). The first step
of this analysis to identify not only current but potential competitors that may
enter the market in the near future. After that, the focus will be shifted into
attempt to understand them and their strategies.
According to Jobber (2010, 708-711), the process of gathering data about
competitors strengths and weaknesses consists of three stages:
1. Identify key success factors of the industry
An important output of a competitive analysis is the identification of key
success factors for players in the market. These factors are competencies and
assets providing the basis for competing successfully. (Aaker 2008, 71-72).
Researcher is recommended to identify about six to eight factors to avoid
diffusion. These factors can be the ability to capture consumer needs quickly,
innovativeness or the capability to provide satisfactory services. The identified
criteria will be used to compare the case company with its competitors.
2. Rate the case company and its competitors on each key success factor,
using a rating scale
After defining key success factors of the industry that the case company is
operating in, the next step is to gather data related to its capability profiles
accordingly with those criteria. Normally, each factor will be assessed based
on a scale ranging from 1 (very poor) to 5 (very good).
Based on this, strengths and weaknesses of competitors in the market can be
visualized for better interpretation.
2.1.4
SWOT Analysis
After gather sufficient data related to company, its consumers and competitors,
SWOT analysis is used as a systematic way for integrating internal and external
analysis. This would help to formulate a strategic fit between what the
environment wants and what the case company has to offer, as well as what the
company needs and what the environment can provide.( West 2010, 93-95.) Trim
and Lee (2008, 731-745) described SWOT as a well-established method, which is
used to appraise a company situation. It can also extend by linking results of the
analysis to enhance the strategic decision making process. Thus, SWOT is
considered as an important foundation for any plan to help producing realistic and
meaningful strategic recommendations for a companys future direction. In fact,
the aim of SWOT analysis is to figure out the extent in which relevant strengths
and weaknesses of the company are capable of dealing with the changes taking
place in the business environment.
Despite its broad usage, SWOT has been subject of several criticisms because of
its apparent limitations, mostly caused by the simplicity. In this study, the TOWS
matrix will be applied instead of traditional SWOT tool. This matrix was
proposed by Weihrich (1982) as a very useful tool for creating a series of strategic
options for decision-makers to consider by illustrating alternative ways in which a
company can use its strengths to minimize threats and invest in available
opportunities to overcome weaknesses.
(West 2010, 71.)
TABLE 2. TOWS Matrix (Weihrich 1982, 60)
Internal
Strengths
Weaknesses
Strategic options
2.2
Opportunities
S+O
need to overcome a
companys weaknesses if
existing or emerging
existing or emerging
opportunities
opportunities are to be
exploited
Threats
External
W+O
S+T
W+T
minimize or overcome
existing or emerging
threats
Nowadays, consumer needs have become too numerous and widely scattered. It is
great challenge for companies to capture and satisfy all consumers in the market
place or at least all buyers in the same way. Thus, a consumer-driven marketing
strategy is pivotal for a company to build the right relationships with the right
consumers.
There is a shift in the way companies practice their marketing strategies. Most of
them have moved away from traditional mass marketing and toward target
marketing involving: segmenting the market into specific groups, targeting one or
more of them and positioning its products in the mind of consumers. (Kotler 2012,
212-214.)
Figure 8 below shows major steps in designing a customer-driven marketing
strategy.
Segmentation
Segmentation
Create value
for target
Targeting
customers
Targeting
segments to enter
segments to enter
Segmenting
Market segmentation is vital for the success of a company (West 2010, 152).
Kotler (2012, 214) has defined this term as follow:
Market segmentation: Dividing a market into smaller segments
with distinct needs, characteristics or behavior that might
require separate marketing strategies or mixes.
The aim of segmenting is to identify groups of customers with similar needs and
preferences so that they can be served effectively while being of a sufficient size
for a product to be offered effectively (D. Jobber 2010, 260). Based on this, a
company can choose which group or groups to focus on and develop a series of
strategies tailored to each groups distinctive characteristics and requirements.
According to West (2010, 153-168), the most common variables for identifying
segments are as follow:
TABLE 3. Common criteria for identifying
Geography
Demography
Psychography
Behavior
Global
Gender
Personality
Usage rate
National
Age
Lifestyle
Loyalty level
City/ state
Education
Values
Event creation
Climate
Income
Key benefits
Occupation
Religion
Since the case company in this study operates in mass market of Vietnam, there
will be no different in product offers among regions. Demographic and behavior
are two main metrics used to segment the cosmetics market in this research.
Demographic bases
Based on demographic, age, gender and occupation serve as appropriate bases for
segmentation. Since the case companys business is about color cosmetics, only
female group will be studied. This group of consumer will be then, divided into
smaller group according to their ages and level of education or occupation. Based
on this, level of income and purchasing power can be predicted as well.
Behavioristic bases
These bases are built around groups of consumers with similar perceptions and
responses toward particular products or services. There are different criteria
within this group such as loyalty level, brand insistence or creation of special
events, etc. However, main factors chosen to segment based on consumer
behaviors are usage rate and benefit segmentation. Usage rate involves the amount
which is normally consumed by individual consumers. Normally, consumers will
be classified into two groups: non-users and users. Then, within users, they will
continue to be divided into clusters of light, moderate and heavy users.
Apparently, the wants and needs of these groups are somewhat different from
each other. Meanwhile, benefit segmentation is based on key benefits that
consumers are seeking from the use of particular products or services. Even
though there can be two or more segments purchasing same products, the benefits
they are looking for can be very different.
(West 2010, 152-168.)
2.2.2
Targeting
After the company has segmented the market into groups with distinctive needs
and characteristics, the next step is targeting. This process involves evaluating
market segments and deciding which ones to serve.
Evaluate market segments
When evaluating market segments, a company has to address these two issues:
market attractiveness and the companys capability to compete in the segment (D.
Jobber 2010, 278).
Market attractiveness can be assessed by looking at market factors, competitive
factors and social factors:
Most relevant social factor which will be studied in this research is about
trends in the cosmetics industry. A company needs to keep track with
changes in the market and make sure to be agile to follow the trend. Big
gains can be rewarded to first entrants.
Segment size
Nature of competition
Market attractiveness
Competitive factors
New entrants
Competitive differentiation
Social factors
Trends
FIGURE 9. Factors used to assess market attractiveness (D. Jobber 2010, 279)
(D. Jobber 2010, 278-281.)
Company capability
Even if a segment has high potential and is structurally attractive, a company
cannot choose to target this segment solely based on those factors. The company
must consider its own objectives and resources whether it can serve that group or
not. Some attractive segments can be dismissed quickly because they are not
aligned with the companys long-term objectives. Or on the other hand, the
company may be lack of skills and resources required to compete successfully in a
potential segment. Therefore, a company should only enter segments in which it
can create superior value for consumers and gain advantages over its competitors.
(Kotler 2012, 225.)
Target marketing strategies
After a company has evaluated all market segments, it is time to make decision on
which segments to target and serve. Market targeting can be carried out at
different levels (Kotler 2012, 225). According to Jobber (2010, 281-284), there
are four generic target strategies: undifferentiated marketing, differentiated
Undifferentiated marketing
Marketing mix
Whole market
Differentiated marketing
Marketing mix 1
Segment 1
Focused marketing
Marketing mix 2
Segment 2
Marketing mix 3
Segment 3
Marketing mix
Customized marketing
Marketing mix 1
Customer 1
Marketing mix 2
Customer 2
Marketing mix 3
Customer 3
This strategy can be used when a market analysis shows no strong differences in
customer characteristics (D. Jobber 2010, 280). By applying this strategy, the
company will focus on common needs of consumers instead of digging deep into
what is different. Thus, the company will treat the market as a whole and design a
single marketing to appeal the largest number of customers.
However, undifferentiated market also has its drawback. Apparently, there are
difficulties in designing one product that can satisfy all consumers. Besides, mass
marketers often appear to be less competitive in comparison with more focused
companies that do a better job of addressing the needs of specific segments.
(Kotler 2012, 225-226.)
Differentiated marketing
A market-coverage strategy in which a firm decides to target
several market segments and designs separate offers for each
(Kotler 2012, 226)
When market segmentation reveals several attractive targets, a company can
design specific marketing mixes, tailored to the characteristics of each group.
This strategy focuses on exploiting differences among segments in the market. By
practicing differentiated marketing, a company can offer product variations to
segments and hope for gaining higher sales, wider coverage and stronger position
within each targeted segment. However, this application would cause higher costs
of doing business for the company. Developing separate marketing plan for
separate segments requires extra investment in market research, sales analyses and
promotion activities. Therefore, a company is advised to weigh increased sales
against additional costs when deciding on a differentiated marketing strategy.
(Kotler 2012, 226.)
Focused marketing
It is not necessary for a company to serve all the segments in the market but only
one that is most appealing and suitable to the companys resources. Thus, the
company only develops one single marketing mix aimed at one target market.
This strategy is claimed to be most appropriate for companies with limited
resources. (D. Jobber 2010, 282-283). Through focused marketing, a company can
achieve a strong market position because of its great knowledge of consumer
needs in the niche segment it serves. It can also market more efficiently, target its
whole business including product portfolio, sales channels and communication
programs toward only consumers that it can serve best and most profitably (D.
Jobber 2010, 227).
Customized marketing
In some specific markets, the needs and requirements of individual customers are
so different and their purchasing power is sufficient enough for companies to
develop a separate marketing mix for every single customer. In this case, the
application of customized marketing is required. (D. Jobber 2010, 284). Different
form mass marketing, customized marketing has made relationships between
suppliers and customers become more important than ever (Kotler 2012, 229).
In this study, the case company chooses to apply differentiated marketing buy
using different approach for different target group, in order to serve their needs
effectively.
2.2.3
Positioning
After defining the market segmentations and potential groups to target, the next
step, also the most important one, is to position a companys offers in the mind of
consumers successfully. This process is one of the most important aspects in a
marketing strategy because, nowadays, the market place has become overcommunicated and consumers constantly exposed to too many advertising
messages daily. Adding to this, the volumes of information spreading over
internet, the print and broadcast media can cause consumer suffering from
information overload. (D. &. Jobber 2009, 122.) Hence, typical consumers have a
natural tendency to discard all information that does not immediately find an
empty slot in their minds (Pearson 2014, 145-146). To cut through this clutter and
stand out from the rest, a company is in need of messages that are simple, direct
and that resonate with the consumers needs (D. &. Jobber 2009, 122).
Besides, Al Ries and Jack Trout also strongly state that it is positioning that is the
strategic key. If the consumer has a particular top-of-mind product when a specific
need arises in that category, it is the product that consumer is most likely to buy.
The point is to keep the companys brand name automatically pop up as a top of
choices. (West 2010, 171.) Noel Peebles (2012), author of How to Sell Your
Business the Easy Way! emphasizes the importance of positioning:
Positioning is the marketing tool that helps prospects and
customers identify whats unique about your product, service or
company. Use Positioning to give your advertising purpose, to
give it a message, and to give it the appropriate tone. Then and
only then, are you on your way to developing a good advertising
strategy.
Positioning statement
A key element of positioning is the creating of a positioning statement, which is
a memorable, image enhancing, written summation of the products desired
stature (D. &. Jobber 2009, 122). According to Jobber (2010, 285), a successful
positioning statement relies on four factors, as shown in below figure.
Consistency
Credibility
Clarity
Competitiveness
Successful
positioning
FIGURE 11. The 4Cs Positioning framework (D. Jobber 2010, 285)
o Clarity: a positioning statement needs to be clear of the target market and
differential benefits that are offered for this group
o Consistency: all the messages delivering to consumers must be consistent
with each other to minimize any confusion.
Dimension 1
High
Brand C
Brand B
Brand A
Dimension 2
Low
Dimension 2
High
Brand D
Dimension 1
Low
FIGURE 12. A perceptual map (modified from Jobber and Fahy (2009, 123))
Repositioning
When a product is not performing well, perhaps because of changes in consumer
tastes or internal conflicts causing by adding more products into the current
portfolio, that product need to be re-positioned. Repositioning involves changing
current target market into a new segment, choosing new differential advantages to
emphasize or both. Based on this, there are three options to consider:
1. Same market, same target, different image of product: this option will help
the companys offer flexible address the changing need of consumer
2. Same target, modify product: this alternative is only suitable for company
owning the whole process of manufacturing. In this case, Maybelline
Vietnam operates as a franchise business. Thus, the case company has no
right of modify products but just import them from manufacturing hubs
around the world. As a result, this option is not applicable.
3. Same product, change target consumer: A company can re-segment its
current market into smaller and more specific groups in order to offer each
product efficiently and avoid internal competition among units in the same
portfolio.
Following these steps, a company can create the USP for its product, which must
be simple, visible and delivered again and again to maintain a differentiated
position in the highly competitive market place.
(Kippenberger 2000, 8.)
2.3
Customers are the epicenter of any business. In fact, the survival of any company
is heavily dependent on customers acceptability and satisfaction of the
companys offerings. Therefore, business organizations would make all possible
attempts to satisfy their customers, by implementing a marketing mix strategy that
best suits those target groups. Over time, there are plenty of marketing mix
models, and most of them are seller or product centric and not given due attention
to the consumer-centric perspective. (Tarak 2014, 51.)
Lauterborn (1990) suggested a new model, replacing the traditional 4Ps marketing
mix of Mc.Carthy (1960) by the new 4Cs format, which focuses on customer
centric view of marketing. According to him, for a successful marketing strategy,
customers must be placed in the center of the plan. The 4Cs include Customer,
Cost, Convenience and Communication. (Tarak 2014, 52.)
Since this study emphasizes on consumer value, 4Cs model of Lauterborn will be
applied instead of traditional marketing mix 4Ps, which helps the author better
study and understand the customer from varies aspects.
2.3.1
Consumer value
The first element of the new 4Cs model is about consumer value. Nowadays,
companies can just push whatever they can produce to the consumers any more. It
is important for companies to understand what their target consumers wants and
needs so that they can sell products that consumers want to buy. Being built on the
consumer centric view, this concept is based on the fact that consumers are more
interested in how offers in the market solve their problems rather than the
products or services themselves (Tarak 2014, 52). The frenzy feeding is over; the
fish are out of school. Now they need to be lured one by one, with something
particularly wants. (Lauterborn 1990, 26.)
2.3.2
Consumer costs
2.3.3
Convenience
2.3.4
Communication
The concept of communication remains same for both, the traditional marketing
mix as well as for the 4 Cs of marketing. While promotion tends to be
"manipulative", pushed from the seller; communication appears to be
"cooperative" built from the buyer centric view, with the aim to create a dialogue
with the potential customers based on their needs and lifestyles (Lauterborn
1990). This approach represents a broader focus. Communications can include all
promotion elements involving advertising, public relations, personal selling, viral
advertising, and any form of communication between the organization and the
consumer (Kotler 2012). In short, this element of Lauterborns 4Cs marketing mix
framework provides a comprehensive sense of promotional activities from
consumers point of view (Tarak 2014).
MARKETING RESEARCH
Define problem
& research
objectives
Develop
research plan
Data
acquisition
Data analysis
& findings
3.1
project is at the end. In other words, the research process can be planned based
on the outcome expected to get out at the end of the research.
Different types of objectives will lead to different types of research designs to
acquire information. Generally, the objectives can only be determined when there
is a mutual understanding or agreement between marketing managers and
researchers (Zikmunk 2010, 63). There are three most common types of
objectives: exploratory research, descriptive research and causal research.
Depending on the level of uncertainty surrounds the situation motivating the
research, researcher can choose the most appropriate type. Comparison of these
types of objectives can be found in following table:
TABLE 4. Characteristics of Different Types of Business Research (Zikmunk
2010, 60)
Exploratory
Research
Amount of
Uncertainty
Highly ambiguous
Characterizing
Decision Situation
Key Research
Research question
Statement
Early stage of
When Conducted?
decision making
Usual Research
Unstructured
Approach
Examples
Nature of
Discovery
Descriptive
Research
Partially defined
Causal Research
Clearly defined
Later stages of
decision making
Research
hypothesis
Later stages of
decision making
Structured
Highly structured
Research question
What kind of
people patronize
our stores
compared to our
primary
competitor?
What product
features are most
important to our
customers?
Can be
Will consumers
buy more products
in a blue
package?
Which of two
advertising
campaigns will be
more effective?
Confirmatory
Research
oriented,
productive but
still speculative.
Often in need of
further research.
confirmatory
although more
research is
sometimes still
needed. Results
can be
managerially
actionable.
oriented. Fairly
conclusive with
managerially
actionable results
often obtained.
Related to this study, the research was guided by Maybelline Marketing Manager
(MM) with clear instruction about what kind of information is needed. As
mentioned in the first chapter, the business objective is to suggest a strategic
marketing proposal to grow current BB Cream business of Maybelline New York
in the Vietnamese market. In order to achieve this goal, it is crucial to have indepth studies about the market and its target consumers as a solid foundation to
build the plan. Thus, the research objective is set to be acquiring necessary
consumer and market insights to support planning the marketing strategy. To be
precise, this research aims at collecting data to examine three aspects of the
situation analysis including Company, Competitors and Consumers.
Based on the nature of the research, which is to get to know the market and
discover ideas that may be potential business opportunities (Zikmunk 2010, 54),
exploratory research appears to be the most appropriate one to apply in this study.
3.2
After the problems are clearly defined and the objectives of the research is
carefully set, the next step is to translate these objectives into specific information
needed. Based on this, researcher can develop a plan to collect required data
efficiently. This plan provides a framework of action for the research (Zikmunk
2010, 66), outlines the specific research approaches, contact methods, sampling
plans and instrument that researchers will use to gather new data (Kotler 2012,
128).
Based on the objectives set in the previous part, the author outlines key
information needed in this research:
Market insights:
o Competitors activities
o Trends
o Brand awareness, brand loyalty, brand images, marketing activities
Consumer insights:
o Perception
o Behavior: Usage and Attitude
How-to
Usage frequency
Pricing assessment
Sampling size: The larger the samples are, the more reliable the results are.
However, it is not necessary to sample the entire market to get reliable
results, since larger samples usually require more costs. After discussion
with marketing manager of MBL, the author was advised to conduct the
survey with around 150-200 respondents.
process. Based on different contact methods e.g. in-person interview, webbased, telephone survey, etc., the format and wording of questions can be
different. Besides, the length of the survey is worth to pay attention to. The
author was advised by MBL Marketing Manager to put all the words within
two side of an A4 paper. The longer the questionnaires are, the lower the
response rates are. (Rea 2014, 31.)
Related to this study, there will be two questionnaires, distributed separately
to two groups of consumers. One will be for BB Cream users and the other is
for non-users. By dividing into two surveys, participants only need to read and
answer relevant questions and the survey paper will not look too lengthy to be
bothersome.
Instead of in-person interview, mail out or web-based interview, etc., intercept
survey is chosen to be the contact method. This is a variation of the in-person
survey whereby information can be obtained from respondents in populated
public area such as parks, schools, retail malls, etc. Respondents are actually
intercepted individually by the interviewer to participate in the survey. The
reasons behind choosing this method are listed as follow:
-
Questions are ensured not being skipped and there are no uncompleted
answers
(Rea 2014, 32.) Besides, timeline is set to manage this stage within the
timeframe of one month. Because the questionnaires are printed on paper,
the author had to input the data into computer for processing. Since the
number of participant is not too big (N=180), Excel is recommended as the
main tool to analyze.
TABLE 5. Summarize of planning primary data collection (adapting from Kotler
(2012, 130))
Research
approach
Contact methods
Sampling
Observation
Personal
3 channels:
- Markets:
- Super markets:
- Shopping malls
Interview
In-person
Focus group
Discussion
4 groups (6 people/group):
1. Age 18-22 BB users
2. Age 18-22 non BB users
3. Age 15-18 BB users
4. Age 15-18 non BB users
All must be non-marketing background
Survey
3.3
Intercept
Data acquisition
This stage helps to provide a holistic view of the data acquisition process. The
below figure illustrate how every single step is done and how it contributes to
reach the final goal of the research:
Company
info
Focus
groups
Interview
& Market
visits
Survey
design
Survey
implemen
tation
Final
analysis
Jan May
2014
Feb
2014
Mar
2014
April
2014
May
2014
Jun
2014
that worth testing in larger scale. During that period, the author was advised to
pay visits to key markets and super markets around Ho Chi Minh City to observe
consumer behavior and conduct interviews with shop owners and Beauty
Advisors. There was large number of places to visit while the author was still an
intern and had to actively support marketing team with daily tasks, these visits
took a lot of time to finish. The outcome of these interview and observation was
also beneficial for designing the questionnaires.
The next period was for collecting quantitative data. Designing a questionnaire is
a very time-consuming process and need to pretest a couple of time in order to
make sure the survey was well structured and good wording. Since it was
intercept interview, the author had to wander in public places such as big parks
around the city where students often hang out after school, or in universities, high
schools and shopping centers to pick up individuals and ask them to do the
survey. The total number of 180 people was approached and there are all valid
answers. This amount is accepted by the case company to represent the larger
population that this research is targeted at. At the end of the internship, the author
was required to analyze all information obtained and based on that, suggesting
plan to grow the current business of MBL BB Cream in the Vietnamese market.
3.4
Data analysis
SUMMARY
Consumer insights:
o Skin issues: Acnes and irritation preventing more frequent users
o Consumers lack of how-to
Based on research and thorough analyses, the author came up with a solution for
growing BB Cream business of Maybelline in the Vietnamese market by
suggesting to recruit new users and explore new opportunities to expand the
market and steal market share from the competitors.
Further research is advised to implement these proposals.
REFERENCES
Published references
Aaker, David. Strategic Market Management. NJ: jon Wiley & Sons, Inc., 2008.
Armstrong, Gary, and Philip Kotler. Marketing: An Introduction. Harlow: Pearson
Education Limited, 2013.
Bray, M. Skin Deep: Dying to be White. Hong Kong, May 15, 2002.
Brown, G. Move Over BB Cream, Here Comes CC. New York: Good Morning
America, March 27, 2013.
Burney, A. Inductive & Deductive Research Approach. 2008.
Cravens, W. Nigel, P. & Baldauf, A. "Management Framework Guiding Strategic
Thinking in Rapidly Changing Markets." Journal of Marketing Management,
2009: 31-49.
Davis, D. The Next Big Skin Care Trend: CC Creams. Los Angeles: TotalBeauty,
n.d.
Eriksson, P. & Kovalainen, A. Qualitative Methods in Business Research.
London: Sage Publications Ltd., 2008.
Eskildson, L. "5* Michael Porter's Five Competitive Forces." Mc.Clatchy Tribune Business News, April 2010.
Jobber, D. & Fahy, J. Foundations of Marketing. Maidenhead: McGraw-Hill
Education, 2009.
Jobber, D. Principle and Practice of Marketing. Maidenhead: McGraw-Hill ,
2010.
Johnson, G. & Scholes, K. Exploring Corporate Strategy. Harlow: Prentice-Hall
Europe Ltd., 2005.
Electronic references
Clinique. n.d. http://www.clinique.com/product/12537/25255/Makeup/MakeupBest-Sellers/Moisture-Surge-CC-CreamHydrating-Colour-CorrectorBroadSpectrum-SPF-30 (accessed May 4, 2015).
Dream Pure BB . 2015. http://www.maybelline.com/Products/Face-Makeup/BBCream/Dream-Pure-BB.aspx (accessed May 4, 2015).
Falabella. Kenh 14. March 4, 2015. http://kenh14.vn/fashion/diem-danh-styletrang-diem-dac-trung-cua-hot-girl-viet-han-va-nhat-20150303100344370.chn
(accessed May 4, 2015).
Interview
Huynh, K., interview by Q. Nguyen. Assistant Retail Manager, Consumer
Product Division, L'Oreal Vietnam (January 22, 2014).
Kantar. Color Cosmetics Research - Quarter 1 2014. Market research, Vietnam:
Kantar Worldpanel, 2014.
Maxus. Average Monthly Keyword Search. Statistics, Ho Chi Minh: Maxus, 2014.
Nguyen, Huyen, interview by Quynh Nguyen. Sales Director, Consumer Product
Division, L'Oreal Vietnam (April 15, 2014).
Pham, D. MBL Brand Brief 2013. Internal brief, Ho Chi Minh City: Internal
report, 2013.
APPENDICES
APPENDICE 1. Focus group discussion guideline for BB Non-users
WARM UP
Moderator introduces herself and Maybelline New York
Explain the Projects purpose:
We are working on a Project on make-up habits and lifestyles
to explore insights and behaviors of the consumers. You have
been invited to join us here today because of your experiences
and knowledge in this area and your interest together with the
valuable perspectives you can share with us.
Introduction
PERCEPTION
Beauty
Ideal skin
General
perception
USAGE
Trigger
Barrier
Usage frequency
Buying channels
Factors affect
purchasing
decisions
MEDIA
- What do you often do in your free time? Frequency?
Why?
- How do you know about new products or promotion
campaign? Most common information channels? (YAN,
Star Movie, Ads in cinemas, etc.)
Hobbies
Media touch point
Usage
Brands
perception
Purchase
Ending
- CC Cream
- Media
- Interests
18 22
2. Occupation:
Office workers
Undergraduates
Above 22
Other:________
3. Your skin type:
Dry skin
Oily skin
Sensitive skin Combination skin Not sure
4. Your preference:
Skin tone:
Brightening
Brightening white
Pinkish white
Porcelain white
Honey skin
Other: ________
Skin texture:
Smooth
Dewy
Pinkish
Even
Other: ________
Flawless
Scars
Blemishes
Under-eye circles
Oily skin
Dry skin
Pores
Un-smooth skin
Pale skin
Other (specify):________
Dull skin
Sun cream
Primer (base)
Liquid foundation
BB Cream
CC Cream
Makeup powder
Concealer
None
Other (specify):_________
Anti-aging
Skin firming
Acnes treatment
Moisturizing
Skin nourishing
Frequency of usage:
Daily
5-7 times/week
3-4 times/week
1-2 times/week
Others (specify):_________
Daily
5-7 times/week
3-4 times/week
1-2 times/week
Others (specify):_________
Skin smoothening
Blemish concealing
Oil control
Other (specify):_______
Frequency of usage:
Daily
5-7 times/week
3-4 times/week
1-2 times/week
Others (specify):_________
Pinkish white
Non-blemish
Not cakey
Poreless
Natural
Other (specify):_______
Skin brightening
Skin whitening
Skin nourishing
Moisturizing
Oil control
Acne treatment
Anti-aging
Sun protection
Natural make-up
Other (specify):_______
Maybelline
LOral
Bourjois
Mira
Skinfood
Skin79
Missha
Etude
Other: _______
16. Why dont you use BB Cream if you know about it?
Dont know how to use
Never tried before
Low coverage compared to foundation
No suitable shades to match my skin tone
Unsuitable for my case
Other (specify):_____________________________
17. What are the 5 most important factors of an ideal facial (foundation/BBCream)?
(from 1 5: low importance high importance)
__ Skin smoothening
__ Skin brightening
__ High coverage
__ No irritations
__ Moisturizing
__ Long lasting
__ Non-greasy
__ Light-weight, natural
__ Cooling ingredients
__ Easy to apply
__ Others (specify):_______
18. How the following factors affect your purchase decision of a facial make-up
(BB Cream/Foundation)?
Not
relevant at
all
Not
relevant
Neutral
Relevant
Very
relevant
Product features:
Shades
Brightness
Smooth
Coverage
Long lasting
Oil control
Moisturizing
(specify):
Famous brands
Nice packaging,
informative
Affordable price
BAs attitudes
BAs makeup
Display of products
in store
Promotion,
discounts
Tester offered
Good reviews
from friends/family
Other (specify):
Other
Recommendation
19. How do you get information about a new product or promotional campaign?
Posters, billboards on the streets/at the bus stops
TV:
HTV3
HTV7
YANTV
YEAH1
VTV3
SCTV5 - SCJ
VTV1
Lotte t Vit
E Channel
Other (specify):
Online newspapers:
Knh 14
VnExpress
Eva
Webtretho
24h
ione.net
Ngoisao.vn
Other (specify):
Newspapers, magazines:
VTM
Hoa hc tr
Th gii vn ha
Cosmopolitan
Her World
Other (specify):
Facebook
Official website of the brand
Product displays in the stores
Recommendation from sellers
Recommendation from friends/family
Other (specify):_____________________________
20. How do you perceive the following price levels:
Cheap but
Expensive
Too cheap, must
VND
acceptable
but still
be low quality
quality
affordable
40.000
60.000
80.000
100.000
125.000
150.000
200.000
250.000
300.000
350.000
400.000
500.000
Neutral
Like
Really like
care
like
15 17
23 27
Over 27
23. Occupation:
Student
Undergraduates
Office workers
Workers
Other:_________
24. Your skin type:
Dry skin
Sensitive skin
Not sure
25. Your preference:
Oily skin
Combination skin
Skin tone:
Bright
Skin texture:
Bright
Whitening bright
Dewy
Pinkish white
Smooth
Porcelain white
Even
Chocolate skin
Flawless
Honey skin
Other: ________
Scars
Under-eye circles
Oily skin
Dry skin
Pores
Un-smooth
Pale skin
Dull skin
Pinkish white
Non-blemish
Non-powdery
Poreless
Natural
Liquid foundation
BB cream
CC Cream
Make-up powder
Concealer
1-2 times/week
Special occasions
Moisturizer
Sun cream
Concealer
Make-up powder
Smother skin
Better coverage
Longer lasting
Other (specify):______________
Complicated
Other (specify):___________
35. How satisfied are you with your current BB Cream? (specify):_____________________
Very
Dissatisfi
Satisfie
Neutral
dissatisfied
ed
d
Very
satisfied
Shade/color
Brightness
Smooth
Coverage
Long lasting
Oil control
Moisturize
Light-weight
Price
Other (specify):