8/14/2019 MP 2 - 25 Dec 2009

1/15

Marketing Planning

Task 1

Marketing Plan

_OHUI _

After two years of economic downturn, the world is now expecting positive changes to

come. The following is a written statement of marketing plan for a newly developed in

the Vietnam market in the next three years. Main goal for that time is OHUI enlarging its

market in Vietnam. How will OHUI reach that goal? it is the question that this

marketing plan is going to answer.

Product background

OHUI is a premium, luxury cosmetic mannufactured by LG Debon. OHUI includes four

different types of product skincare, make up, body care and for men. OHUI promotes

the beauty of modern people by bringing together the principles of the cosmos and

nature and modern science and technology. It is a phytoscience-based cosmetic

designed to be most optimally suited to women through many years of R&D efforts to

develop phytotherapies using the phytosubtances that are most beneficial to the skin

and for aesthetics and to verify the efficacy and benefits of rare plants used for centuries

as remedies in the Eastern and Western worlds.

OHUI, an attractive, prestigious cosmetic, is quickly becoming a global brand offering the

greatest beauty and satisfaction to women around the world through its luxury brand

image of true premium beauty.

5

8/14/2019 MP 2 - 25 Dec 2009

2/15

Marketing Planning

Some items of the Active Care

The need to be innovative

Though how large an organization is, it must innovate in manufacturing process,

management, new product, service, market etc to meet customers demand and to

compete with business rivals. The most important aim of being innovative is to ensure

organization survival and success in a changing world.

Techniques used for developing products

6

8/14/2019 MP 2 - 25 Dec 2009

3/15

Marketing Planning

Think that the product that we are going to spread it out is the Active Care that includes

eight items and still spread out those existing. To develop a new product, firstly, we need

to have an overview about strengths, weaknesses, opportunities and threats of the

business. To get this, we can apply SWOT analysis for our product OHUI as follow.

Strenghts:

In the year of 2000s, market share for cosmetic in Vietnam was large because women

was limited in beautifying at that time; and Vietnam market was new for big cosmetic

brands to involve in. Seeing a potential market in Vietnam, DeBon became one of the

cosmetic brands which took part in Vietnam market earliest. Until now, though DeBon

have to share the market with many well-known brands like Shiseido, LOreal, Lacme

etc, they still have their own position in cosmetic market, even being on top 3 of the

luxury cosmetic with Shiseido and Vichy in Vietnam. On March 2003, DeBon launched

their new skin care brand OHUI, which is appreciated positively by customers because

of its high quality, sexy smell, nice design etc. Moreover, OHUI provides good taking

care services for their customers such as free massage, giving professional advices in

beautifying and taking care of skin.

Weaknesses:

The biggest weakness of OHUI is that its price is very high. It makes the customer flinch

to buy products before they use it. That means potential customers of OHUI is limitative

in high income women while almost Vietnamese women has low income.

Opportunities:

Vietnamese women now conscious of preserving their beauty because of many reasons

such as being confident when they meet working partners, keeping their husbands not to

go out with more younger girls, etc. Hence, they can spend a lot of money and time in

lasting their younger perfomance. Making up, cosmetic surgery are popular ways to

beautify now, however, middle-aged women in Vietnam prefer taking care of skin byusing skin care products which do not waste their time much.

Besides that, the economic is on the way of rehalibitating, I think at such this time, when

most of the businesses are restoring, we can take this opportunity to control the market

fastly by dumping goods, promoting marketing etc.

7

8/14/2019 MP 2 - 25 Dec 2009

4/15

Marketing Planning

Threats:

Besides OHUI, there is Vichy which is also a well-known skincare brand in Vietnam. The

main rival of OHUI is Vichy. Vichys strong points are that their price, common design

are more familiar to most of Vietnamese women than OHUI.

After applying SWOT analysis to have the whole view about the business, to dump new

product or renewed product, we can use the process of New Product Developmentin

overview.

NPD process

8

8/14/2019 MP 2 - 25 Dec 2009

5/15

Marketing Planning

This technique includes 8 steps that help us to figure out the answer for going ahead or

abandoning product.

1. Idea generation: Is the particular idea worth considering?

For the Active Care, the answer is Yes because it meets both the customers demand for

new helpful product and the companys demand for controlling market by dumping new

product.

2. Idea screening: Is the product idea compatible with company objectives, strategies

and resources?

Yes. This new product meets the objectives, strategies and resources of the company.

Moreover, the company have totally abilities to manufacturer this one.

3. Concept development: Is there a good concept for the product that consumers say

they would try?

Yes. In fact, all of the OHUI product have the belief of customers for its quality to try.

4. Marketing strategy development: Is there a cost effective, affordable marketing

strategy?

Yes. The maximum price of this product is below 1millionVND. That is a reasonable

price for such a top quality product.

5. Business analysis: Does product meet profit goals?

Yes.

6. Product development: Is the product sound technically and commercially?

Yes. The product has met all the riquirements of this step: engineering tests, consumer

preference tests, branding, packaging.

7. Market testing: Have product sales met our expectations?

Yes.

8. Commercialisation: Are product sales meeting our expectations?

Yes.

When all the answer is Yes that means this product properly spreads out over the

market.

In addition, we can use Ansoffs product-market growth matrixwhich describes a

combination of a firms activities in current and new market, with existing and new

products. This is a short-hand term for the products that company sells and the markets

it sells them to.

9

8/14/2019 MP 2 - 25 Dec 2009

6/15

Marketing Planning

Ansoffs matrix

We can also use apoisitioning map to log the positions of our company or college and

its key competitors.

10

8/14/2019 MP 2 - 25 Dec 2009

7/15

Marketing Planning

Finally, we can use theproduct life cycle which help us to recognise distinct stages in a

products sales history.

The product life cycle

11

8/14/2019 MP 2 - 25 Dec 2009

8/15

Marketing Planning

Recommendations for pricing, distributing and communicating that

product or service.

Pricing, distributing and communicating are the elements of the extended marketing mix

which is the set of controllable vairiables and their levels that the firm uses to influence

the target market.

Pricing

Though almost of Vietnamese customer complain of the high price of OHUIs product, in

my opinion, these price is reasonable. Firstly, the quality in OHUI products cannot be

denied. The product with high quality but their price is fluctuated around 1-3millions VND

is acceptable. Moreover, one product can be used during 1 - 1.5 years, that means the

customer just spend about maximum 10.000 VND per day for lasting their young

perfomance. However, OHUI should reduce their price a little bit lower to avoid huge

distance in price with Vichy, their main rival. Besides that, OHUIs consultants should

provide these information for new customer in order they are not surprised of such a

high price product.

Distributing

At this time, LG has not built any factories in Vietnam, hence, they have to use

distribution channels to sale products. The type of distribution channel in Vietnam is

indirect distribution. The disadvantage of this one is that it is passive in the sense that

they rely on consumers to make the first approach by entering the relevant retail outlet.

As quickly as posible, I think, LG should construct a factory in Vietnam as Shiseido has

done.

Communicating

About the communicating, OHUI uses effectively personal selling that the oral

presentations of the goods or services, or to create goodwill to improve the prospects of

sales in the future. Because the potential customer of OHUI is middle class and above

so they do not use media much for advertising. I think that they should change it to make

more customer know about them.

Measures to monitor and review marketing perfomance

12

8/14/2019 MP 2 - 25 Dec 2009

9/15

Marketing Planning

To ensure that the established marketing plan will be performed as proposed, senior

managerment cannot just leave it to their inferiors to finish off the work by putting the

plan into effect. She or he must follow closely steps by steps in the marketing plan, have

an overview of the whole marketing plan, predict the problems that the marketing plan

could meet and prepare solutions for these. Moreover, she or he must assign the job to

staffs, encourage them and ensure that all the deadlines have been met or are going to

meet. To do all those things, senior manager should use the marketing control process.

The marketing control process

There is no planning without control. Marketing control is the process of monitoring the

proposed plans as they proceed and adjusting where necessary. If an objective states

where you want to be and the plan sets out a road map to your destination, then control

tells you if you are on the right route or if you have arrived at your destination.

Marketing control process

Control involves measurement, evaluation, and monitoring. Resources are scarce and

costly so it is important to control marketing plans. Control involves setting standards.

The marketing manager will than compare actual progress against the standards.

13

3Compare results

against standards

4Corrections andalterations

2Perfomancestandards

1Marketing objectives

8/14/2019 MP 2 - 25 Dec 2009

10/15

Marketing Planning

Corrective action (if any) is then taken. If corrective action is taken, an investigation will

also need to be undertaken to establish precisely why the difference occurred.

Task 2:

As the ethical issues in marketing are now turned to be an emerging topic for any

marketing practitioner. The following is a short report compiling our findings about ethical

issues in Vietnam market.

Different organizations responses to ethics in marketing

Honda Vietnam

To avoid environment pollution, Honda applies new technology in protecting

environment system both inside and outside the factory. They train their employees to

know how to reduce harmful activities to environment. Besides that, since 2001, Honda

awarded environmental management according to ISO 14001. They apply these ISO

14001 system totally in product process with garbage disposal system, and improve

energy using effect. Moreover, they use air filter system to keep the inside factory

environment always be as clear as possible.

The closed incinerator system of Honda

14

8/14/2019 MP 2 - 25 Dec 2009

11/15

Marketing Planning

FPT Telecom

With the policy guilines consider employees as main factor in companys success or not,

FPT Telecom try their best to concern about consolidating and expanding their staffs,

take care and encourage them in both work and daily life. Hence, employees who work

in FPT Telecom can promote their ability as much as possible. Moreover, FPT treat their

employees as the more they contribute to the success of the company. It is fairly to

compete with your colleages there but do not impact the companys interest.

Ethical issues

Based on the 7Ps in marketing mix, we can divide ethical issues into product issues,

promotion issues,pricing issues,place issues,people issues,process issues and

physical issues.

Product issues:

Product issues usually relate to safety, quality and value and frequently occur when the

business does not provide adequate information to the customer. This may range from

omission of uncomfortable facts in product literature, to deliberate deception.

Promotion issues:

Ethical considerations are particularly relevant to promotional practices. Advertising and

personal selling are areas in which the temptation to select, exaggerate, slant, conceal,

distort and falsify information is potentially very great indeed.

Pricing issues:

There are several pricing practices that have attracted criticism:

- Active collusion (price fixing) among suppliers to fix prices.

- Predatory pricing is an issue when newcomers attempt to break into a market.

Established suppliers utilise their cash reserves and economies of scale to sell at prices

the newcomer cannot match and still make a profit.

- Failure to disclose the full price associated with a purchase has been rightly cricticised

as unethical.

Place issues:

15

8/14/2019 MP 2 - 25 Dec 2009

12/15

Marketing Planning

Where long and complex distribution channels are used, there is potential for disputes

and conflicts of interest. Even when relationships of trust have been built up over long

periods of time, business pressures can lead to hard decisions and a perception by

distributors that they have been treated unfairly. Here are some examples of conduct by

manufacturers that distributors could reasonably complain of.

- Requiring high levels of stock holding

- Manipulating price structures to the detriment of distributors

- Ending distribution agreements at short notice

- Dealing direct with end users

People issues:

People issues cover those ethical issues arising around the employer-employee

relationship, such as the rights and duties owed between employer and employee.

- Discrimination on the bases of age, gender, race, religion, disabilities, weight and

attractiveness

- Affecting the privacy of the employee: workplace surveillance, drug testing.

- The fairness of the employment contract and the balance of power between employer

and employee

- Occupational safety and health

Process issues:

This area of business ethics usually deals with the duties of a company to ensure that

production processes do not cause harm. Some of the more acute dilemmas in this area

arise out of the fact that there is usually a degree of danger in any product or production

process and it is difficulty to define a degree of permissibility, or the degree of

permissibility may depend on the changing state of preventative technologies or

changing social perceptions of acceptable risk.

- Ethical relations between the company and the environment

- Product testing ethics (animal testing etc)- Ethical problems arising out of new technologies

Physical issues:

Knowledge and skills are valuable but not easily ownable as objects. Nor is it obvious

who has the greater rights to an idea: the company who trained the employee, or the

16

8/14/2019 MP 2 - 25 Dec 2009

13/15

Marketing Planning

employee themselves? The country in which the plant grew, or the company which

discovered and developed the plants medicinal potential? As a result, attempts to assert

ownership and ethical disputes over ownership arise.

- Patent infringement, copyright infringement, trademark infringement

- Misuse of the intellectual property systems to stifle copetition

- Business intelligence and industrial espionage

Describe the implication of ethical issues on the marketing mix for your

client company

About the LG H&H code of ethics, they share and believe in two key corporate principles

Creating value for customers and Respecting human dignity. Based on these

principles and in the spirit of their Managerment Charter, they strive to promote self-

governing management and its accompanying responsibilties. It is their intention to

uphold the principle of free market economy, which embodies the spirit of fair

competition. They are committed to attaining their goal of becoming a global leader, and

as such they will continuously pursue mutual benefits for their stakeholders on the basis

of trust and cooperation. LG is committed to act uprightly and make value judgments in

accordance to the code of ethics as follow.

Responsibilities and obligations to customers

They highly regard the opinions of their customers in the belief that they form the very

basics of their business. They seek to secure unconditional trust from their customers by

continuously providing them practical values. They are always truthful to their customers,

and are bound to keep their promises.

Fair competition

They uphold the principle of the free market economic system. Therefore we pursue free

competition and earn their customers trust through top quality products and services.

They compete fairly and capably with their competitors, but do not intrude upon their

interests, or exploit their weaknesses. They conduct their domestic and overseas

business activities in strict accordance with local laws and regulations, and with respect

for local business customs.

Fair transactions

17

8/14/2019 MP 2 - 25 Dec 2009

14/15

Marketing Planning

They offer equal opportunities to all qualified companies seeking to become their

business partners. All applicants are registered and selected in a rational manner

following a fair and objective evaluation process.

All business transactions are conducted under equitable circumstances. The terms and

procedures of the transaction are to be sufficiently dicussed between parties involved.

The use of prominence in position to execute an unjust transaction is forbidden.

Information required for a transaction is exchanged through appropriate procedures in a

timely manner. Transaction results are evaluated on a regular basis where

complementary measures are mutually taken.

They support the long-term growth of their dealers and vendors by enhancing their

competitiveness through technological and managerial assistance. They share the

profits dirived from business innovations. They pursue cooperation with their dealers and

venders in a mutual effort to promote a healthy trading environment and maintain a fair

trading system.

Basic ethics for employees

LG employees faithfully accomplish their duties in compliance with the visions and

policies of the company. Assigned duties are carried out in the best possible and fairest

manner while observing relevant laws and regulations. Moreover, they exert themselves

in enhancing work efficiency through open communication and cooperation with

colleagues and related departments. LG employees carry out their duties based on

honesty and fairness, seeking to foster a soung business culture. They also avoid any

individual behaviors or relationships that are in conflict with company interests.

LG treats each employee with trust and affection and places a high value on individual

human dignity. They offers equal opportunities to all its employees based on their

abilities and talents. They also makes the utmost efforts to promote a working

evironment conducive to creative thinking and autonomous behaviours.

Responsiblities to society and country:LG conducts its business with respect to the social values at home and abroad. They

promote their business expansions based on stable corporate growth. LG protects its

stockholders interests by earning healthy profits through effective management. LG

contributes to national and social development through job creation, tax payment, and

18

8/14/2019 MP 2 - 25 Dec 2009

15/15

Marketing Planning

promotion of cultural and welfare programs. They strive to prevent environmental

pollution and employ all measures necessary to conserve precious natural resources.

With these incessantly endeavors, LG has taken many awards such as:

1986 Awarded the quality management Grand Prize

1994 Selected as the model company for environmental management

1995 Awarded facility management prize

1996 Awarded the presidential prize on international environment day

and so on.

Hence, if LG has plan to construct factories in Vietnam, they would be able to satisfy the

Vietnames code of ethics.

Reference:

http://www.lgcare.com

http://www.marketingteacher.com

http://www.google.com.vn

http://www.en.wikipedia.com

19