Marketing Plan-Rohto Mentholatum Company-A Free

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Posted by Thanhthai2212 | 4:09 AM | Marketing Plan | 0 comments
Contents
INTRODUCTION: 2
Executive Summary 2
Current Market Situation 3
Micro environment: 3
Marketing intermediaries: 3
Customers: 4
Competitors: 4
BCG Matrix 4
Macro environment: 5
Demographic: 5
Economic 5
SWOT Analysis: 5
SWOT: 5
SWOT Matrix: 6
Objective 7
SEGMENTATION, TARGETING AND POSITIONING 8
Market segmentation: 8
Target Marketing: 9
Position 10
Marketing Mix strategies: 12
I. Product Strategy: 12
II. Pricing Strategy: 13
1. Product line strategy: 13
2. Product Bundle Pricing: 13
3. Segmented Pricing: 14
4. Price Adjustment Strategy - Discounts: 14
III. Place Distribution 14
IV. Promotion 15
1/ Advertising 15
2/Personal Selling 17
3/ Sales Promotion 17
4/ Public relation 17
VII. Action Program: 18
References 22

INTRODUCTION:
Rohto Mentholatum Company is a big company with a long history from the year 1899 in Japan.
With more than 100 years of operation and development in five continents, Rohto Mentholatum
Companys products have sold widely in more than 120 countries. There have been 11 branches
which are scattered all over the world such as Rohto Pharmaceutical Company Ltd. (Parent
Company) in Japan, Mentholatum Australia Pty, the Mentholatum Pharmaceutical in China, and
the Mentholatum Company in USA, UK, Canada and Hong Kong.
Occurring in Vietnamese market for 12 years, the product line for skin protected is one of the key
businesses of the Mentholatum Company. OXY is a new product line only for men of Rohto
Mentholatum Company which has just been presented in August of 2006. OXY used to a famous
brand of GlaxoSmithKline, and then was bought by the Group Rohto Mentholatum in April
2006. With the slogan Pull handsomeness back, OXY Vietnam has born two lotion products
OXY Deep Wash and OXY Perfect Wash which have face cleaning and reducing acnes effect.
Bring a very fashionable feature, OXY aims to target the male customers from 17 to 25 years
old.
Because this brand has just gone into Vietnamese market, in two big cities such as Hanoi and
HCMC, then, it has not made up a large market share yet. However, OXY is targeting new
customer segmentation, male customers. New market, so, there are not too many competitors.
We completely have chances to bring OXY lotion to one of the most famous cosmetic for men in
Vietnam.
Executive Summary
At the beginning of 2007; Rohto introduced the new kind or cosmetic product for male named
Oxy. This brand is still too new with customer. This purpose of this marketing plan is developing
the customers recognition of this brand, building strong image of Oxy brand in customers mind
and helps them to realize the importance of using skin care products for men.
Firstly, this plan will show some research about the current situation of Oxy products in Vietnam.
Some main factors will be concerned about is BCG matrix and microenvironment such as
suppliers, market intermediaries, customers and competitors. In addition, this plan also mention
about economic and demographic factor of macro environment. Moreover, SWOT analysis and
SWOT matrix will be also identified to help the company improve its market policies. Realizing
the company objectives is the next important steps to set a right and suitable strategies for
company. There will be also a positioning map of the company comparing with other competitors
in Vietnam market such as Nivea for men and Biore for men. Marketing mix will be 4P
including: price, place, product and promotion. In the product part, 3 level of product include
core benefit, actual product and augmented product will be identified to help company to realize
the advantages and develop them. Next, a plan about promotion will be set to attract more
customers. For example, the company will choose some main types of advertisings such as:
magazines, newspapers, TV, websites, buses and bus stops. Besides that, public relation is also
one of the important steps for promotion parts. The company aim to put 5% of revenue to spend
on this to develop the customers awareness. For sale promotion, Oxy will have some discount or
rewards for some special events or give the customers some free goods such as clothes. In
addition, the company set strategies about personal selling. For instance, the employees will be
sent to the supermarkets or shops to promote the products. Oxy still had narrow distribution so in
the place section, the company plan to provide for more shops and supermarkets, selling products
through internet and telephones. The final P mention about is price. The price will reduced to
satisfy customers through discount in some special events such as Rohto Mentholatum

anniversary each year. Plus, an action program will be set to ensure that all strategies will flow in
the right direction and also calculate the budget for the whole plan.
Current Market Situation
Micro environment:
Marketing intermediaries:
When OXY face wash was introduced in Vietnam 2 years ago, it was immediately distributed
through the pharmacy and shops that have sold anti acnes cream OXY 5 and OXY 10.
However, until now, the distribution channel of OXY is still uncompleted, sometime customers
cannot found it in supermarket and hard to buy from small shops.
Customers:
As other convenience goods, the customers of OXY are retailer and end-customers. The product
used to be sold in 2 types of customer markets which are consumer markets and reseller market.
Competitors:
If talking about the age of product in Vietnam, X-Men and Romano have a longer time.
However, OXY still have competitive advantages since it was the first brand and the company
indicate their profession by offering a set of skin protect, not just a lotion.
One Companys rival Oriflame would launch onto the market 28% cosmetics products for men
of all ages, from young to middle-aged men, which will be priced between VND45,000 ($2.81)
and VND349,000 ($21.8).
Besides several well known brands in Vietnam such as Double-Rich, Biore and Nivea is start
producing male cosmetic, OXY also should pay attention at new brands or famous international
brands that will come due to the integration of Vietnam.
BCG Matrix
Currently, OXY is still in the process of changing from Question marks to Star. The fact is that
OXY is trying to spread brand name and boost sale by using many kinds of promotions from
advertisement on TV, newspaper, websites to the recent road show and OXY festival in Hanoi
and Saigon.
Macro environment:
Demographic:
The geographicis shifting in Vietnam is from rural area to urban area. In 1990, there is only 19%
of Vietnamese lived in cities, however in 2007 the number has increased to 27%. The population
in Hanoi and HCMC reached to 2,541 and 5,545 million people in 2007. Based on the population
structure, there is 20% of them are young male, from 15 to 24 years old. For this reason, the
number of targeted consumers also is expanding.
Economic
Urban Vietnamese people have higher monthly income per person, from VND 622,000 in 2002
to VND 840,000 in 2004 and predicted to reach VND 1,200,000 in 2008. (General Statistic
Office, 2008) However, Vietnams inflation rate hits 25.2% in May 2008, highest on a decade.
This will lead to a significant decrease in demand of cosmetic.
SWOT Analysis:
SWOT:

SWOT Matrix:

Objective
Cooperate Objectives: Continue being the leading brand in Vietnam males cosmetic market,
Marketing Objective: We plan to start the new marketing plan in summer 2009 and end at
autumn 2010. OXY is expected to be in mind of at least 70% customers and obtain 20 - 25%
market share by applying a VND 3 billion massive promotion plan aiming at young, stylist and
trendy Vietnamese.
Finance Objective: Targeting at upper class customers in urban area, OXY hope to achieve over
VND 50 billion sales from 1,2 million phials and approximately VND 20 billion profit autumn
2010. The profits before taxes are also expected to increase 15% at the end of plan.

SEGMENTATION, TARGETING AND POSITIONING

To achieve the product objectives, we should make the decision about segmentation, targeting
and positioning
Market segmentation:
- Geographic:
+ City or metro size: over 4,000,000
+ Density: urban
- Demographic:
+ Age: 15-24
+ Gender: male
+ Income: average VND 3 million per months and more
+ Occupation: student, young, white-collar worker
+ Generation: Digital generation
- Psychographic:
+ Social class: upper middles and over
+ Personality: gregarious
- Behavioural:
+ Occasions: regular occasion and special occasion
+ Benefit: easy to use, suitable price
+ User status: potential user and regular user
Target Marketing:
Firstly, we should go to evaluate the market segments base on three factor: segment size and
grow, segment structural attractiveness and company objectiveness and resources
- Segment size and grow: Recently, OXY has a significant increase in Viet Nam market.
According to Taylor Nelson, the cosmetic for men is 2% of cosmetic market in 2004, 2.5% in

2005. In the middle of 2006, with the appearing of OXY, it dominated the cosmetic market for
men. From there until now, OXY has a significant growth in Vietnam because Vietnam has the
large number of young population, therefore, OXYs segment is large size and fast-growth which
is approximately 1.21% in 2007 (General Statistic Office 2007).
- Segment structural attractiveness:
+ Level of competition: Medium level of competition, Oxy has 4 main competitors which are
Romano, Biore, Nivea and Oriflame. However, as an expert in anti acnes and men-focus product
line, OXY have more advantages than rivals.
+ Power of buyers: Since OXY is convenience products and can be found easily, buyers do not
have much power with company.
+ Although Rohto, the owner of OXY brand do not mention about their suppliers, we believe that
the global scale economic crisis may lead to a significant increase in cost of raw material for
OXY.
After evaluating the difference segments, we go to decide which and how many segment it can
serve best. In general, we carry out 2 different levels of segments:
- Differentiated marketing: we will produce several kind of OXY for each different group of
customers. Now, we have Oxy Perfect Wash, Oxy Perfect Clean Pad, Oxy 5, Oxy 10, and Oxy
Perfect Facial Sheet. Also, we will examine to design OXY cream after shaving, shampoo OXY
for man Therefore, the customers can choose which one is the best suitable for them.
- Concentrated Marketing: instead of producing many kind of cream for every one, OXY just
focus on treatment the pimple for men and all other products are for men only. Therefore, we will
dominate the market, get the high market share and have much profit.
Position
In OXY festival day which was celebrated in 2006, OXY found that approximately 75% of
users said that they saw clearly the effect after using OXY; the acne was cured by OXY.
Moreover, the price at 40,000vnd per phial is affordable with many people in Vietnam. There
fore, we identify that our products stand at position which have high quality and medium price.
After that, we choose a positioning strategy which is the most suitable with current situation of
our company:
Identify possible competitive advantages: after finding and compete with other competitor, the
company identify the competitive advantages:
- Product differentiation: Biore has one kind of face-washing for man whereas we produce more
kind of OXY for man. We will examine to decide which kind of product the consumers want
more. To illustrate, our company will produce the specific product for each kind of group
customer: Oxy Perfect Wash, Oxy Perfect Clean Pad, Oxy 5, Oxy 10, and Oxy Perfect Facial
Sheet
- Service differentiation:
+ Our targeted customers are young males, who usually hate shopping. At this time, OXY can
only deliver to distributors and retailers, however, we will create a delivery system which will
deliver fast and efficiently. Thus, consumers will get our product without shopping and OXY will
get customer information for direct marketing.
+ Also, when the customer buy product, we have the advising-service, the staff will advise which

product is the best with them.

- Channel differentiation:
+ With a set of skin care products, OXY can open OXY shop to sell all products of OXY only
+ OXY is also being sold in pharmacies who are companys old retailers while other products
can not be sold here.
+ Until now, OXY has connected and are connecting with super markets such as: FiviMart,
BigC, Vincom Tower, etc to convince them become our intermediaries
- People differentiation: in each quarter, we will open the training program to improve the skill of
our staff. Also, we will award worthy for the employee that work effectively
Choose the right competitive advantages:
+ Distinctive: Instead of offering single lotion like other competitors, OXY provide a set of skin
care that help customers gain the best efficiency of the product
+ Profitable: In the parallel with making skin smoothly and whitely like other competitors, OXY
also focus on helping customers to eliminate acne, help them to protect the face and create a
fashionable and manly style.
+ Affordable: As a famous anti acnes brand, the additional feature of OXY face wash which is
anti acnes cost less than other company, lead to an affordable and reasonable price.
+ Preemptive: we will register the copyright and design with the specific term such as guarantee
stamp to avoid other company copy as well as expand distribution channel which help customers
to buy our real product easier.
Selecting an overall positioning strategy:
Comparing the price of OXY with other competitor, the average price of cream for men vary
from 30,000 to 50,000vnd while the OXYs price is around 40,000vnd. Further more, OXY
product has some specific feature such as treatment acnes effective for man and easy to use.
Therefore, our company applies the More for the same for our products which is high quality
and medium price.
Marketing Mix strategies:
I. Product Strategy:

II. Pricing Strategy:

1. Product line strategy:
A new type of anti-acne provided by Oxy is face wash, which has been divided into two
products: Oxy Perfect Wash and Oxy Deep Wash. The main differentiation between these two
products is:
2. Product Bundle Pricing:
We plan to provide a set of anti-acne products which include Oxy Perfect Wash or Oxy Deep
Wash and other Oxy products which leads to a 10% decrease in each product price in the parallel
with selling each product separately. As a result of that, the company will not only get more sales
and more profit but also make the customers feel good by decrease the price.
3. Segmented Pricing:
This program focuses on students who can get 10% discount when they have their student cards.

The reason that student will be the target customers for discount is that student is the most
sensitive type with acnes and most of them not have much money to spend on cosmetic.
However, the demand for this product from this segment is still high. Therefore, the company
can get more profit by encouraging sales for students.
4. Price Adjustment Strategy - Discounts:
o Cash discounts:
Apply for Oxy marketing intermediaries including supermarkets and pharmacies. Especially, for
each 100 products purchased, the retailers will get 10% discount. This discount strategy will
encourage the retailers and become our competitive advantage with other cosmetic companies,
therefore increase the company total sales.
o Quantity discounts:
In order to not only encourage consumers to buy more but also promote other products, at every
first week of months start June 2009 to September 2009, by purchasing each of Oxy products,
customers will get a free Oxy Perfect Clear Pad and Oxy Perfect Facial Sheet. This program will
not only promote other Oxy products but also boost sales for the main products, Oxy Perfect
Wash and Oxy Deep Wash.
III. Place Distribution
Based on the market analysis and market segmentation, it can be seen that OXY is a convenience
product, moreover, OXY aim to attract young, stylist and fashionable customers from upper
medium class and over who require a wide spread and dynamic distribution channel. For this
reason, hybrid marketing channel and intensive distribution strategy is quite appropriate with our
product. We determine to sell the product through 3 main channels to customers and business.
Multichannel Distribution system, adopted from Principle of Marketing, Kotler et al, pp 334,
2008
As other cosmetic product, OXY is being sold to customers through the retailers such as super
market or small shops and even the medicine shops that have sold the anti acne cream tube
OXY before. Until now, male cosmetic is still a new segment in Vietnams cosmetic market.
Due to the culture barrier, and natural behaviour not many male know or go shopping for a
cosmetic product. In order to exploit these potential customers, in the parallel with the
intermediaries system, we decide to sell OXY via internet and phone also .With only click or a
phone call, customers in Hanoi and Hochiminh city can buy their product with exactly the same
price as it is in the shop.
Furthermore, we also want to spread our product and brand name further, male barber shop is a
good place for us to expand the market. At first, OXY will be provided freely to some big barber
shops in Hanoi and Hochiminh city. Customers will get free face wash before or after cutting
hair in these shops. After that, if there are positive feedbacks from customers, we will start
selling OXY to these barber shops, the owner will probably get 5 to 10 commission percentage
on each products they sell.
IV. Promotion
As a leading brand in Vietnams male cosmetic market, OXY look forward to hold and
strengthen the brands position in the next year by a massive promote strategy aiming at young
Vietnamese people. Since customers of OXY are mostly student in High schools and
Universities, our promotion also needs to be dynamic, creative and trendy.
1/ Advertising: At this time, OXY is still trying to be a star in the cosmetic market. For this
reason, our advertisement need to be informative which will tell customers about our products as

well as build the company image in customers mind by emphasizing the lifestyle via personality
symbol of handsome and famous Vietnamese actors and singers.
- OXY now rarely advertise on VTV3, and major local channels such as HTV 9 or Hanoi TV.
However, to attract more teenage, we plan to expand the advertisement to VTV6, which is new
channel for teenage only, 2 times a day, from 5 pm to 6pm, before and after the programs. At that
time, most of teenage have finished their class and go home so they will have time to watch the
TV as well as our advertisement.
- Although magazine and newspaper is a good tool for promotion, based on the technology trend,
youth tend to read news on website instate of printed newspaper, for this reason, we only
corporate with a few famous teenage magazines such as hoahoctro, 2!, or Sinhvien Vietnam. On
the other hand, OXY will increase and start advertising on common website such as
vnexpress.net, dantri.com, free download music and teen designed webs like kenh14.com.
- Finally, instead of using billboard, we plan to use Bus stop and buses as one of the major media
vehicles. The fact is that more and more young people are using buses, buses and bus stops
become the best place for us to promote the products. The average time bus users see our
advertisement is at least 15 minutes, longer than every other kind of advertises. Moreover, the
cost for it is much cheaper than other types, from $4000 to $8000 per year for a bus stop depend
on the location and $2500 for a bus compare with $2000 for 30 seconds advertise on TV.
http://www.nhungtrangvang.com.vn/Sanpham_dichvu/yp_bus.asp
2/Personal Selling: As we have mentioned in the distribution strategy, OXY will start selling face
wash cream in the barber shop. Because personal selling is costly, we plan to send the employees
to some big shop for introducing the products as well as give advice to customers. It can be seen
that the customers in these shop are usually fashionable, trendy and can afford our product well.
The action can also be considered as pull strategy since it can build up the image of product and
company in customers mind and change the perception about male cosmetic as well.
3/ Sales Promotion: OXY plan to introduce the discount campaign in the summer and special
event such as Rohto Vietnam anniversary each year. In the program, customers have chance to
get stylist items such as Ipods, Oxy style clothes as well as free product from the company.
Moreover, OXY also provide free additional items with to every products. For example, when
customers buy 1 OXY perfect wash they will get 2 free OXY facial sheet and 2 OXY perfect
clean pads which cost around VND 4,000, equal with 10% of product price.
4/ Public relation: Aiming at young Vietnamese people who are mostly still students, we plan to
establish a scholarship for poor students in Vietnam. 5% of the revenue on each product will be
saved for the purpose. Each year when the new semester begin, OXY will give the scholarship to
poor students and each months, VND 500,000 will be given to crippled students and orphans
who study in school. All information of this charity program will be published and transparent on
public media and common website.