chude
15-08-2007, 01:31 AM
Hi All,
Chude đọc bài này thấy khá hay hay post lên đây cho mọi người tham khảo.
NUMBER ONE TONIC DRINK IN VIETNAM
The years of 1996, 1997, and 1998 are well remembered for the fierce competition between giant global brands, the explosion of fresh ideas for new products, and the amazing appearance of local brands in the refreshment drink market in Vietnam. Pepsi and Coca-Cola entered the Vietnamese market at the beginning of the 1990s with policies to extend joint ventured with state-owned companies, and managing their businesses through their share of contributed capital. A successful penetration strategy was followed by various tactics to secure a firm position in the Vietnam market. These corporations subsequently implemented a strategy to transform their businesses into 100% foreign-owned entities, made possible with the open-door policy of the Vietnamese government.
Opportunities for the Small Fry
The war between these two giants started in 1996. Both companies launched various activities through their advertising and promotional campaigns such as changing the packaging of their products, providing discounts to agents, slashing prices, dishing out promotional gifts, or increasing credits to agents. However, these strategies brought about huge losses for both brands from 1996 until 2000. The joint ventures stayed unprofitable through the years, and the local management reverted to foreign hands. The transformation of Pepsi and Coca-Cola intro 100% foreign-owned companies became a reality.
The small and medium-sized companies operating in the refreshment business were the ones that suffered the most damage. They were continuously losing their market shares, their control of distribution channel, and their credit solvency. A number of companies merged and operated in smaller markets, while others became shareholding entities and strategically changed their businesses to different categories of products and market segments, following the old saying Avoiding the elephant is not a shame. However, that situation also created new opportunities for other domestic businesses. While big corporations were fighting for market shares for their traditional products, local companies were entering the competition through the development of new products. A great number of drinks containing natural extracts such as soya, grapefruit, carrot, yogurt, and tea made their appearance, thus creating much variety for the refreshment market. The emergence of Number Once tonic drink was the result of this creative process.
Number One is a brand of Tan Hiep Phat Company. In 2001, when the market of tonic drinks occupied only of 0.67% of the total refreshment market, there were only three main brands Red Bull, Rhino, and Lipovitan. All these products were marketed in cans and were distributed through agents who possessed coolers or refrigerators. Red Bull and Lipovitan had their own factories in Vietnam, while Rhino was an imported product. At that time, those were the three biggest brands in Vietnam. Their advantages lay in their financial power and their ability to generate wide promotion through various communication media and hiring professional distributors to spread their products to every corner of the country. The main activities of those companies were still focused on selling and promoting.
Product differentiation
Despite their financial power, experiences, and marketing knowledge, the big brand could not fulfill the demands of all market segments. According to research conducted in 2000, middle-class consumers were not able to afford a can of tonic drink at the price of 6,000 VND (40 US cents). Also, the majority of consumers experienced much inconvenience in the consumption of tonic drinks as they did not have in-house refrigerators. So when the need arose, they had to go to shops to buy and consume the drinks. One important factor was that tonic drink taken with ice was not as good as when it was chilled.
On the consumption psychology, research showed the majority of consumers understood that tonic drink was the product that brought comfort, enhanced body and spiritual function, relieved stress, and helped the work better. These were important perceptions that had been exploited by big brands in the market penetration strategies, pricing, and distribution of their products.
For Number One, these perceptions were the foundation to boldly invest in this market. Tan Hiep Phat decided to invest in a factory to produce bottled tonic drink in Vietnam. During the first phase, they manufactured 300-ml bottles and sold them at low prices to make them affordable to the majority of local consumers. Convenience and particularly the fact that this drink could be taken with ice without losing its good taste were the new advantages. An important factor is that consumers were used to drinking from a bottle. Number One was the only bottled tonic drink in the market at that time, with a selling price equivalent to a bottle of Coke or Pepsi at 2,500 VND (18 US cents).
Focused on Consumers Convenience
Product differentiation was a significant factor contributing to the success of Number One. Another significant factor was the consumption habit of consumers. Local consumers drank tonic drink at street refreshment stalls or small coffee shops. They seldom consumed it at home. Market research showed that 15% of consumers in five cities brought home tonic drinks once a week. Hence, 85% had their tonic drinks at coffee shops. This was mostly due to the fact that company did not own a refrigerator, and also because they preferred to take their drink with ice.
Being able to consume tonic drinks at low prices was hot during the year 2001. People with average incomes formed the majority of tonic drinkers. As it was the first bottled tonic drink in Vietnam, consumers could enjoy it anywhere. This was the main reason that helped Number Once quickly capture customers and transform the competitive landscape in the refreshment market in Vietnam at that time.
Building brand
The three main element that brought success to the branding strategy of Number One were product, distribution, and effective communication. Equipment and production technology were imported from Europe to set up a manufacturing process that was modern, safe, and hygienic. These images were well communicated on various TV channels and created a strong, positive impact on consumers nationwide.
Within four months of its launch, Number Once tonic drink captured 30% market share. Total distribution channels included 300,000 outlets with more than 200 distributors in all the 64 provinces and cities. Business was so good that Number One did not have enough supply to satisfy the demand during festivities such as the Lunar New Year.
Pepsi and Coca-Cola lost their market shares in a number of market sectors, and they forced their exclusive distributors not to carry and distribute products for Number One. But a dramatic event happened: many new distributors not beholden to Pepsi or Coca-Cola appeared in big cities. They transformed the whole distribution system and the distribution policies of competitors.
One factor that had contributed to the success of Number One was the very effective advertising carried out by THP Group marketing division and its agency, the then Saatchi & Saatchi Vietnam. The communication was quite simple: during one whole month, a five-second teaser was aired on the two main TV channels in Vietnam with only one message: Bottled tonic drink has appeared in Vietnam. This campaign created a big impact among the audience. At that time, market research showed that 60% of consumers had tried and 30% had later become regular consumers of Number One. Along with the strong advertising message were posters pasted on the walls of shops that sold Number One. Promotional items such as ice boxes, uniforms, flag-lines, glass containers, and glasses were provided to support sales in the whole country
Since 2002, Number One has also focused on its public communication campaign. It officially sponsored the bicycle race and the HCMC TV Cup, a race where participants ran from HCMC to the Ha Noi capital and back. The last day of the race ended right on April 30 which marked the commemoration day of Vietnams reunification. This is the most prestigious race in Vietnam and the sponsorship not only garnered daily news coverage of the race, but also bore testimony to the credibility and strength of a local brand. In 2005, all above and below the line activities ceased completely. Number Once is now concentrating on being the main sponsor of Vietnam Football Cup (V-League) with an amount of 10 billion VND (US$650,000). This is the biggest football competition in Vietnam.
Besides that, Number One is currently sponsoring the Social Activities Center of the HCMC Youth Branch to create a website called Live beautifully for more than 200 secondary and preparatory schools and universities nationwide. The aim of the website is to disseminate knowledge, highlight real-life situations about the behavior, study, and work of young people, and guide them to better goals in their lives.
Conclusion
The current success of Number One has prepared them for product extension: Number One in can, Number One Soda, Number One Soya. These are growing on the foundation of a strong main brand.
After only four years, the Number One line of products has managed to occupy more than 65% of the tonic bottled drink market, with brand recognition amounting to 80%, and taking up more than 20% of the bottled refreshment drink market. This is an amazing success.
The success of Number One is due to the correct assessment of the situation and demand of appropriate strategies in the manufacturing of quality products, strong distribution channels, and an effective branding strategy. This lesson is a valuable experience for small and medium sized enterprises which have to compete in a big arena. Number Ones success can be summarized as follows:
The differentiation is that it is the first bottled tonic drink in Vietnam.
Low selling price, affordable to all economic classes in a country tonic category is a big challenge for local manufacturers which have weak financial and technological power. This is a product of a newly established company, so big competitors did not pay much attention and did not have offensive schemes in time until Number One had the upper hand.
Appropriate positioning through the creation of convenience in usage. The ability to make the product easily is a winner. In a country where 65% of the population are young people, and 80% of the population depend on an agricultural economy, the marketing of a low-priced tonic drink that is safe and hygienic is a bright marketing idea.
Having an effective brand-building strategy. It was the first company in Vietnam to take the initiative to hire the services of multinational advertising agencies to carry out advertising campaigns in a professional way.
Having an effective brand-building strategy. It was the first company in Vietnam to take the initiative to hire the services of multinational advertising agencies to carry out advertising campaigns in a professional way.
Well-exploited public relations activities such as sponsored football events and sponsored charity and social activities. These are must-do activities for companies operating in the fast-moving consumer goods industry and wishing to succeed in Vietnam.
With an invested capital of 2 million USD since the launch of its products, Number One has become the leading bottled tonic drink in Vietnam with an annual output of about 7 million cases per year.
Number One has been able to compete in a big market on its own terms. Its business strategy transformed the market and secured a firm position for itself.
Another important factor is the strong business spirit of the founder of the THP group. In the context of an unbalanced competitive situation where the notion of the brand was still new in Vietnam, innovative thinking and execution and his untiring efforts were elements that contributed to making Number One a familiar brand for the Vietnamese consumers.
Number One is and example of a company that has successfully positioned itself as a pioneer brand. Declared as the first bottled tonic drink in Vietnam, Number One has been made available to everyone due to its widespread distribution and price affordability. Its bottling technology adds to its differentiation from other tonic drinks and increases customer perception of its brand.
Source: www.promagroup.net - Think ASEAN! Philip Kotler Center for Asian Marketing
Lúc này hơi bận nên chỉ post bài lên thôi không có thời gian nhiều để thêm vài ý kiến gì cả!!! Nếu có thời gian chude sẽ nói thêm về một sản phẩm thành công hiện nay của công ty Tân Hiệp Phát - Trà Xanh Không Độ và một sản phẩm khác nhưng không thành công của công ty này bia Laser!!!
Chude
Chude đọc bài này thấy khá hay hay post lên đây cho mọi người tham khảo.
NUMBER ONE TONIC DRINK IN VIETNAM
The years of 1996, 1997, and 1998 are well remembered for the fierce competition between giant global brands, the explosion of fresh ideas for new products, and the amazing appearance of local brands in the refreshment drink market in Vietnam. Pepsi and Coca-Cola entered the Vietnamese market at the beginning of the 1990s with policies to extend joint ventured with state-owned companies, and managing their businesses through their share of contributed capital. A successful penetration strategy was followed by various tactics to secure a firm position in the Vietnam market. These corporations subsequently implemented a strategy to transform their businesses into 100% foreign-owned entities, made possible with the open-door policy of the Vietnamese government.
Opportunities for the Small Fry
The war between these two giants started in 1996. Both companies launched various activities through their advertising and promotional campaigns such as changing the packaging of their products, providing discounts to agents, slashing prices, dishing out promotional gifts, or increasing credits to agents. However, these strategies brought about huge losses for both brands from 1996 until 2000. The joint ventures stayed unprofitable through the years, and the local management reverted to foreign hands. The transformation of Pepsi and Coca-Cola intro 100% foreign-owned companies became a reality.
The small and medium-sized companies operating in the refreshment business were the ones that suffered the most damage. They were continuously losing their market shares, their control of distribution channel, and their credit solvency. A number of companies merged and operated in smaller markets, while others became shareholding entities and strategically changed their businesses to different categories of products and market segments, following the old saying Avoiding the elephant is not a shame. However, that situation also created new opportunities for other domestic businesses. While big corporations were fighting for market shares for their traditional products, local companies were entering the competition through the development of new products. A great number of drinks containing natural extracts such as soya, grapefruit, carrot, yogurt, and tea made their appearance, thus creating much variety for the refreshment market. The emergence of Number Once tonic drink was the result of this creative process.
Number One is a brand of Tan Hiep Phat Company. In 2001, when the market of tonic drinks occupied only of 0.67% of the total refreshment market, there were only three main brands Red Bull, Rhino, and Lipovitan. All these products were marketed in cans and were distributed through agents who possessed coolers or refrigerators. Red Bull and Lipovitan had their own factories in Vietnam, while Rhino was an imported product. At that time, those were the three biggest brands in Vietnam. Their advantages lay in their financial power and their ability to generate wide promotion through various communication media and hiring professional distributors to spread their products to every corner of the country. The main activities of those companies were still focused on selling and promoting.
Product differentiation
Despite their financial power, experiences, and marketing knowledge, the big brand could not fulfill the demands of all market segments. According to research conducted in 2000, middle-class consumers were not able to afford a can of tonic drink at the price of 6,000 VND (40 US cents). Also, the majority of consumers experienced much inconvenience in the consumption of tonic drinks as they did not have in-house refrigerators. So when the need arose, they had to go to shops to buy and consume the drinks. One important factor was that tonic drink taken with ice was not as good as when it was chilled.
On the consumption psychology, research showed the majority of consumers understood that tonic drink was the product that brought comfort, enhanced body and spiritual function, relieved stress, and helped the work better. These were important perceptions that had been exploited by big brands in the market penetration strategies, pricing, and distribution of their products.
For Number One, these perceptions were the foundation to boldly invest in this market. Tan Hiep Phat decided to invest in a factory to produce bottled tonic drink in Vietnam. During the first phase, they manufactured 300-ml bottles and sold them at low prices to make them affordable to the majority of local consumers. Convenience and particularly the fact that this drink could be taken with ice without losing its good taste were the new advantages. An important factor is that consumers were used to drinking from a bottle. Number One was the only bottled tonic drink in the market at that time, with a selling price equivalent to a bottle of Coke or Pepsi at 2,500 VND (18 US cents).
Focused on Consumers Convenience
Product differentiation was a significant factor contributing to the success of Number One. Another significant factor was the consumption habit of consumers. Local consumers drank tonic drink at street refreshment stalls or small coffee shops. They seldom consumed it at home. Market research showed that 15% of consumers in five cities brought home tonic drinks once a week. Hence, 85% had their tonic drinks at coffee shops. This was mostly due to the fact that company did not own a refrigerator, and also because they preferred to take their drink with ice.
Being able to consume tonic drinks at low prices was hot during the year 2001. People with average incomes formed the majority of tonic drinkers. As it was the first bottled tonic drink in Vietnam, consumers could enjoy it anywhere. This was the main reason that helped Number Once quickly capture customers and transform the competitive landscape in the refreshment market in Vietnam at that time.
Building brand
The three main element that brought success to the branding strategy of Number One were product, distribution, and effective communication. Equipment and production technology were imported from Europe to set up a manufacturing process that was modern, safe, and hygienic. These images were well communicated on various TV channels and created a strong, positive impact on consumers nationwide.
Within four months of its launch, Number Once tonic drink captured 30% market share. Total distribution channels included 300,000 outlets with more than 200 distributors in all the 64 provinces and cities. Business was so good that Number One did not have enough supply to satisfy the demand during festivities such as the Lunar New Year.
Pepsi and Coca-Cola lost their market shares in a number of market sectors, and they forced their exclusive distributors not to carry and distribute products for Number One. But a dramatic event happened: many new distributors not beholden to Pepsi or Coca-Cola appeared in big cities. They transformed the whole distribution system and the distribution policies of competitors.
One factor that had contributed to the success of Number One was the very effective advertising carried out by THP Group marketing division and its agency, the then Saatchi & Saatchi Vietnam. The communication was quite simple: during one whole month, a five-second teaser was aired on the two main TV channels in Vietnam with only one message: Bottled tonic drink has appeared in Vietnam. This campaign created a big impact among the audience. At that time, market research showed that 60% of consumers had tried and 30% had later become regular consumers of Number One. Along with the strong advertising message were posters pasted on the walls of shops that sold Number One. Promotional items such as ice boxes, uniforms, flag-lines, glass containers, and glasses were provided to support sales in the whole country
Since 2002, Number One has also focused on its public communication campaign. It officially sponsored the bicycle race and the HCMC TV Cup, a race where participants ran from HCMC to the Ha Noi capital and back. The last day of the race ended right on April 30 which marked the commemoration day of Vietnams reunification. This is the most prestigious race in Vietnam and the sponsorship not only garnered daily news coverage of the race, but also bore testimony to the credibility and strength of a local brand. In 2005, all above and below the line activities ceased completely. Number Once is now concentrating on being the main sponsor of Vietnam Football Cup (V-League) with an amount of 10 billion VND (US$650,000). This is the biggest football competition in Vietnam.
Besides that, Number One is currently sponsoring the Social Activities Center of the HCMC Youth Branch to create a website called Live beautifully for more than 200 secondary and preparatory schools and universities nationwide. The aim of the website is to disseminate knowledge, highlight real-life situations about the behavior, study, and work of young people, and guide them to better goals in their lives.
Conclusion
The current success of Number One has prepared them for product extension: Number One in can, Number One Soda, Number One Soya. These are growing on the foundation of a strong main brand.
After only four years, the Number One line of products has managed to occupy more than 65% of the tonic bottled drink market, with brand recognition amounting to 80%, and taking up more than 20% of the bottled refreshment drink market. This is an amazing success.
The success of Number One is due to the correct assessment of the situation and demand of appropriate strategies in the manufacturing of quality products, strong distribution channels, and an effective branding strategy. This lesson is a valuable experience for small and medium sized enterprises which have to compete in a big arena. Number Ones success can be summarized as follows:
The differentiation is that it is the first bottled tonic drink in Vietnam.
Low selling price, affordable to all economic classes in a country tonic category is a big challenge for local manufacturers which have weak financial and technological power. This is a product of a newly established company, so big competitors did not pay much attention and did not have offensive schemes in time until Number One had the upper hand.
Appropriate positioning through the creation of convenience in usage. The ability to make the product easily is a winner. In a country where 65% of the population are young people, and 80% of the population depend on an agricultural economy, the marketing of a low-priced tonic drink that is safe and hygienic is a bright marketing idea.
Having an effective brand-building strategy. It was the first company in Vietnam to take the initiative to hire the services of multinational advertising agencies to carry out advertising campaigns in a professional way.
Having an effective brand-building strategy. It was the first company in Vietnam to take the initiative to hire the services of multinational advertising agencies to carry out advertising campaigns in a professional way.
Well-exploited public relations activities such as sponsored football events and sponsored charity and social activities. These are must-do activities for companies operating in the fast-moving consumer goods industry and wishing to succeed in Vietnam.
With an invested capital of 2 million USD since the launch of its products, Number One has become the leading bottled tonic drink in Vietnam with an annual output of about 7 million cases per year.
Number One has been able to compete in a big market on its own terms. Its business strategy transformed the market and secured a firm position for itself.
Another important factor is the strong business spirit of the founder of the THP group. In the context of an unbalanced competitive situation where the notion of the brand was still new in Vietnam, innovative thinking and execution and his untiring efforts were elements that contributed to making Number One a familiar brand for the Vietnamese consumers.
Number One is and example of a company that has successfully positioned itself as a pioneer brand. Declared as the first bottled tonic drink in Vietnam, Number One has been made available to everyone due to its widespread distribution and price affordability. Its bottling technology adds to its differentiation from other tonic drinks and increases customer perception of its brand.
Source: www.promagroup.net - Think ASEAN! Philip Kotler Center for Asian Marketing
Lúc này hơi bận nên chỉ post bài lên thôi không có thời gian nhiều để thêm vài ý kiến gì cả!!! Nếu có thời gian chude sẽ nói thêm về một sản phẩm thành công hiện nay của công ty Tân Hiệp Phát - Trà Xanh Không Độ và một sản phẩm khác nhưng không thành công của công ty này bia Laser!!!
Chude