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Sample Report OMO - omo

Marketing Principles (Royal Melbourne Institute of Technology University Vietnam)

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SITUATION

MKTG1205 / Marketing Principles / Semester 3,2019

ANALYSIS REPORT
OMO MATIC LIQUID
DETERGENT

Lecturer: Nguyen Thi Huong Giang

Team member:
Vo Nguyen Minh Doan s3803315
Phan Hong My s3651473
Luu Danh Nhan s3818994
Pham Quynh Mai s3778802
Le Phan Thanh Truc s3818332
Tran Le Nhat Ha s3818135
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TABLE OF
CONTENT

I. SITUATION 1. Company Description 02

ANALYSIS 2. Product Description 03

II. MARKETING 1. Micro Environment 03

ENVIRONMENT 2. Macro Environment 06

III. SWOT 08

IV. STDP 1. Segmentation 09

2. Targeting 09
3. Differentiation 10
4. Positioning 11

V. CONCLUSION 12

VI. REFERENCES 13

VII. APPENDICES 17

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I. SITUATION ANALYSIS
1. COMPANY DESCRIPTION
Unilever is a British - Dutch multinational corporation which profession in produce a variety of consumer
goods such as cosmetics, detergent, toothpaste, shampoo, food, and beverages. The company product is
considered to have the best quality and was consumed all around the world. Unilever was established in 1930
by the merging of two corporations namely Lever Brother (British soap manufacturer) and Margarine Unie
(a margarine manufacturer). Unilever headquarters are located mainly in London - British and Rotterdam -
Netherlands (Nguyen 2014)

History
1890s: The product “ Sunlight Soap,” which was first advertised in 1886, was the revolutionary action in
business from William Hesketh Lever (founder of Lever Brothers) (Unilever n.d.)

1930s: Margarine Unie (a margarine manufacturer) merged with the Lever Bros. Since then, the name
“Unilever” was finally established (Unilever n.d.).

1940s: New strategy was applied by Unilever as the company started to widen its business areas which are
frozen products and food (Unilever n.d.).

2000s: There was a significant change in the brand portfolio which was acquisitions and sales in 2001. Up
to 2004, Unilever joined the palm oil industry and made a promise to sustainable palm oil .In the next year,
thousands of products were acquired for nutritional improvement (Unilever n.d.).

2010s: Unilever came up with the sustainable living plan together with enhancing Personal Care field and re-
entering into Myanmar market. It also commits to totally change its packaging into recyclable plastic by 2025
and 100% electric vehicles by 2030 (Unilever n.d.) .

Mission Statement - To add vitality to life

Unilever’s mission statement - adding vitality to life is considered to be the general direction of its business
strategy. Vitality here means the value that can reach consumers’ expectations from the Company products.
The aspects of life are also being added to meet customers’ vitality needs in the nutrition criteria. Moreover,
by promoting Unilever products, the main goal of the company is to gain the attention of the customers and
make them feel good, look good, and get out more of life. (Young 2017)

Vision Statement - To make sustainable living commonplace

It is reported by Beavis (2011) that by 2020 there are three main goals that Unilever aim to reach:
• To improve the health and well-being of one billion people
• Improvement in the sustenance of thousands of people in supply chain
• Reduce the environmental footprint in Unilever’s products
The solution on the long-term path of Unilever’s sustainable growth can be assumed as the ten years results
of work. The responsibilities for each of Unilever’s brands are to gain the determined targets so that execution
from the Unilever team will be measured and conclude whether it is successful or not. (Beavis 2011)

Unilever CEO - Alan Jope

Alan Jope first joined Unilever UK in 1985. He has been working for Unilever in North America (14 years)
and Asia (13 years). Alan took the role of the President of Unilever’s Personal Care Business since 2014 and
continue the President position in 2018 when the name of the division was changed into Beauty and Personal
Care. In May 2019, he was selected as the Chief Executive Officer of Unilever N.V and Unilever P.L.C.
(Unilever n.d.)

Unilever Vietnam
Entered the Vietnam market in 1995, the company growth accounted for 35- 40%, and the number of

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employees reach 2,000 people. Besides, Unilever Vietnam also corporates with many domestic manufacturers
in product supply and packaging. Unilever Vietnam now has five main factories in Ha Noi, Cu Chi, Thu Duc,
and industrial area - Bien Hoa. The company currently has more than 350 major distributors and more than
150,000 retail stores (Nguyen 2014), widening its distribution network throughout the nation.

2. PRODUCT DESCRIPTION
Function and Features
First, it is a liquid detergent product; it helps to reduce foam, which makes it easier to wash clothes either by
hand or washing machine. OMO Matic also has a very high ability to dissolve in water. Therefore, no stains
shall remain on clothes. Moreover, consumers can also select their favorite Liquid Detergent based on OMO’s
variety of aromas and functions.

There are four types of OMO Matic Liquid Detergents:

• OMO Matic Hand Wash and Upper Door
• OMO Matic Front Door, Durable
• OMO Matic, Top Door, Deodorant
• OMO Matic, Comfort

According to the OMO Vietnam website, there are a variety of features and benefits that consumers can get
from using OMO Matic. First, OMO Matic helps remove all the tough stains within a short amount of time,
making it more convenient and also less time-consuming compared to OMO Washing Powder. Secondly is
the remarkably superior Polyshield stain resistant formulation by OMO; this significant feature provides a
microscopic layer of clothing on clothes, avoids stains to stick on the fabric, and eliminate all the tough stains.
Last but not least is The Color Shield Formula, which protects the fabric structure and maintains the color
fastness of clothes. (OMO 2019).

Market Share
According to Euromonitor International (2019), the brand OMO (Unilever Vietnam) dominated the market
with 33,6% market share in 2018. This has proven that OMO is now leading in the detergent industry.

Brand Awareness
It is said by Tran (2015) that “OMO is one of the most favorite brands in Vietnam”. Currently OMO is leading
in the market for the consumer experience criteria, with more than 83% of women admitted that they have
used OMO at least once (Tran 2015). One of OMO strategies to maintain not only the prestigious position
but also its leading market share is by the method of creating brand effective marketing campaigns. OMO
Advertising Campaigns are created annually. The brand image, as well as the key messages, is fully delivered
to the customers. Therefore, it is undeniable that OMO is now the leading brand in the market.

II. MARKETING ENVIRONMENT

1. MICRO ENVIRONMENT

1.1. SUPPLIERS
A strategic long-term vision of sustainable production, quality products, and corporate responsibility comes
about as the ultimate goals guiding how Unilever has established local and international supply partnerships.
By standardization and streamlining structure, Unilever Supplier Qualification System acts as their well-
established common ground for the process of supply chain and material availability supervision for production
(Ministry of Planning and Investment 2009). Incorporating Responsible Sourcing Policy further allows
Unilever to outsource the most quality raw materials, therefore allowing for the best-quality OMO Matic.

TICO Joint-Stock Company is a strategic partner of Unilever Vietnam with a stable supply of surfactant
materials and palm oils to sustain OMO production (Tico Joint Stock Company 2014). OMO’s local

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partnership is clearly tailored to bring the costs down, improve technical flexibility, and effectively strategize
the combination of diverse specializations. Consequently, they will build a foothold of commitment towards
sustainable, quality-assured production while cutting down on foreign imports dependence.

On the other hand, Vinachem, a long time official chemical supplier for Unilever products (Vinachem 2010),
has an irrecoverable debt exceeding 10,000 billion VND in 2019 (Vinh 2019). This poses a great challenge for
them to maintain sustainable business and competitive edges, thus possibly forcing them to keep OMO Matic
at a more inflated price to cover the production costs or otherwise find other credentialed foreign suppliers.

1.2. MARKETING INTERMEDIARIES

Resellers
Retail area characterizes how OMO Vietnam not only delivers their laundry detergent to the right customer
market but also brings value to the customers. Major retail firms such as Lotte Mart, Coop Mart, or BigC
cooperate with Unilever to distribute OMO Matic to consumers. Considering OMO’s stable income market
target, these easily accessible modern retail outlets consolidates the Vietnamese propensity for purchasing
FMCG products like OMO. Partially as part of the suburban area expansion in Vietnam, the number of
supermarkets in Vietnam increased from 246 to 308 from 2017 to 2018 (Q&Me 2018, Figure 1.). As a result,
their extensive reach to our daily life has been increasingly feasible, continually increasing OMO sales. Yet,
according to Christou (2018), despite all the modern retail development due to urbanization and growing
economy, Vietnam still gets hold of a dominant traditional retail method. The relevance of the modern retailing
arena in Vietnam is highlighted in ways that total street shops is projected to navigate a large market share of
60% (Christou 2018, Figure 2.). Besides, mini market and convenience store format are gaining popularity in
Vietnam (Kantar Worldpanel Insight Handbook 2019, pp. 59); OMO Matic has yet to focus on this channel.

Marketing Service Agencies

As Vietnam is an emerging market with 90 million and over 37 million internet users (Mishra 2017), Unilever
Vietnam has utilized this advantage to launch many well-known marketing campaigns and define OMO’s
pioneering market position by partnering with some potential marketing firms. There are four marketing
agencies defining OMO’s high customers’ awareness and their marketing excellence, namely Biz-Eyes,
MullenLoweVietnam, Mindshare Vietnam, Ogilvy & Mather Vietnam.

“Less screen time, more play time” stands as a perfect example of Biz-Eyes/Square Group’s contribution
to OMO’s increasing brand recognition. This encouraging message concerning children’s internet absorption
and lack of social interaction boosted social links to sale action, OMO’s market image, and more importantly,
accommodate Vietnamese children with more exciting real-life experiences.

Furthermore, OMO successfully launched Tết 2018 campaign with the help of MullenLoweVietnam
(MullenLowe Vietnam 2018) and Mindshare Vietnam. The former intertwined OMO’s core notion “Dirt is
Good” into the vibrant Tết atmosphere. Assisted by Mindshare, OMO encouraged more Vietnamese real-life
experiences outside screen time alongside a new definition of an imperfectly fulfilling Tết by advocating
for the philosophy “The Imperfect Moments that Bring Out Perfect Tết Experiences”. According to MMA
Smarties (2018), the campaign resulted in thousands of consumers’ voluntary online endorsement and the
stable market growth of OMO Matic.

Last, Ogilvy & Mather Vietnam (O&G), a top advertising agency in Vietnam, played a significant role in
conducting how Vietnamese consumers appreciate their Mothers on Mother’s Day 2019 via “OMO Dịu Nhẹ
Trên Da” campaign. OMO’s share of voice dominated the topic conversations with 38% among the 200
brands participating that day (Advertising Vietnam 2019, Figure 3.). By getting a good grasp of real-time
insights, O&G succeeded in raising huge Vietnamese interest in this campaign. 29,825 interactive buzzes and
1,700 product purchases signify how positive Vietnamese public’s reactions are to this purposeful campaign
(Advertising Vietnam 2019). In the end “Dirt Is Good” was inspiringly solidified in the Vietnamese public
around the appreciative image of Vietnamese Mother.

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1.3. CUSTOMERS
Overall, OMO laundry detergent is highly regarded as a national laundry detergent brand by taking consumers
opinions and habits into consideration. A valid point in case is that changes in preferences and growing washing
machine penetration among Vietnamese consumers from 25.4% in 2013 to 34.7% in 2018 (Euromonitor
International 2018) influenced how OMO Vietnam is focusing more on developing liquid laundry detergent.
OMO has various prominent campaigns such as “Bring the ‘real summer’ back to Vietnamese kids”, or “Dear
Mom, I Don’t Like Tết”, all encompassed in “Dirt Is Good” theme. What OMO nurtured is an counter-intuitive
mindset of a negative Vietnamese public view of dirt. From a brand message, ‘Dirt is Good’ was repositioned
to a new Vietnamese parenting philosophy of discovery and experience (Gosling 2013). Their campaigns truly
redefined Vietnamese people’s care towards children’s development and family. OMO’s ‘take dirt to give dirt’
appearance hit home with over 30 million people in Vietnam. (Thuy Luong & Ha A 2018).

According to Euromonitor International (2018), smartphone users have increased dramatically in Vietnam,
stimulating E-commerce potential growth. Vietnamese people including OMO’s customers will spend more
time on online shopping. Well-known sites such as Lazada or Shopee indispensably shape consumers’ decision
on laundry care purchase (Euromonitor International 2018). More marketing activities and promotional
campaigns have been developed on these sites to capitalize on consumer’s internet penetration. Online customer
experiences are substantially examined by Unilever to develop suitable products (Peña-Taylor 2019).

1.4. COMPETITORS
Although Unilever Vietnam has constantly been a leading firm in laundry care market with OMO Matic, the
Vietnamese market positions itself as profitable yet unstable with the prominent emergence of competing
international brand P&G’s Ariel or budding local brands Lix and Aba.

An OMO’s close competitor, Ariel Matic by Procter & Gamble Vietnam (P&G) serves as a substitute for
OMO Matic in high-income segment. Ariel, a second follower of OMO in usage rate with 12% respondents
in a survey by Q&Me (Q&Me n.d., Figure 4.), makes up a market share of 3.7% (Euromonitor International
2018). Proportional to Unilever, P&G has sizable production and marketing capabilities along with an
environmentally-inclined product development, driving impact on OMO’s further product innovation and
marketing efforts to stay ahead in the industry.

Lix constitutes just 1.5% market share (Euromonitor International 2018). However, their liquid product is not
only affordable but also suitable for both hand-washing and machine washing. Its ability to protect washing
machines and clothes’ fabric textures is substantive when customers are both price and quality-conscious (Lix
2019). Also, Lix Detergent JSC is a strategic Unilever’s partner to help produce OMO Matic (Euromonitor
International 2018).

Another competitor is Aba Matic, which falls into a reasonable price range of 50,000 to 200,000 VND (Adayroi
n.d.) while often offering attractive 15-20% discount policies compared to Unilever or P&G’s 10% limit
(Vietnamnet 2017). What is at stake for OMO Matic is Aba’s strong market position with 11.6% (Euromonitor
International 2018) as traditional retail is continually a highly-trusted retail channel for Vietnamese middle-
class consumers to purchase with ease.

All foregrounds a test in which Unilever should apply new innovative technologies and implement new
branding strategies to expand OMO Matic’s market share.

1.5. PUBLIC
In the eyes of Vietnamese general public, OMO Matic’s presence is clearly defined, but what is more important
is how OMO stands strong in their corporate social responsibility. As a top consumer brand, OMO has created
an unparalleled social force by sparking conversations, bringing about powerful social messages, and in
turn facilitating changes in Vietnamese people’s lifestyle habits via various marketing campaigns. In fact,
OMO’s profoundly counter-intuitive philosophy “Dirt is Good” has prompted Vietnamese children to have
more experiences and families to embrace more bonding. More than a brand message, this is a Vietnamese

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parenting philosophy that redefined the benefits of dirt, the virtues of creative freedom, and real-life experience
(Gosling 2013). In 2019, OMO has further expanded their social involvement by sponsoring a tree-planting
campaign to proactively increase public environmental awareness (OMO Vietnam 2019). Hence, their social
commitment public image is consistently consolidated.

In media public, Unilever used rapidly-developing Internet and TVC platforms to promote OMO Matic via
many social media channels. In 2023, it is projected that the number of Vietnanese social media users will
grow solidly to approximately 52.8 million (Statista 2019, Figure 5.). Moreover, Facebook posts a growth of
about 56.83% as of 2019 in Vietnam (StatCounter 2019, Figure 6.). Deloitte (2019) reports that social media
platforms are where Vietnamese consumers and sellers form connections. In fact, OMO’s facebook page
(2019) which hosts about 431,000 followers has fruitfully succeeded in engaging with audience through social
activities and further purchases.

2. MACRO ENVIRONMENT

2.1. DEMOGRAPHIC
Doubtlessly, demographic factors such as population, age, and gender play an important role in customer’s
purchase behavior (Vilčeková & Sabo 2013, Vol. 1, pp. 3). The first trend is that Vietnam’s population has
increased significantly recently. Based on Figure 7, the population of Vietnam in 2018 was nearly 95 million
people (General Statistics Office of Vietnam 2019). As detergent products are indispensable for a daily basis,
the burgeoning population is a positive sign for FMCG industry, such as OMO of Unilever, due to the higher
demand for consumption.

Moreover, “Vietnam is considered as one of the world’s fastest aging population” by the World Health
Organization (Kantar Worldpanel Vietnam Insight Handbook 2019, pp. 19). This population trend may affect
OMO negatively-in the near future as OMO’s main targeted consumers are young people and housewives who
are from 18-44 years old as shown in Segmentation and Targeting section below. Hence, it is necessary for
OMO to consider alternative marketing and growth strategies to meet this group’s needs.

In addition, nowadays Vietnamese residents tend to shift from rural to urban areas in order to seek for a better
life (Nguyen & Raabe & Grote 2013), resulting in the growth of Vietnam’s urban population to approximately
35 million in 2018, (General Statistics Office of Vietnam 2019, Figure 8.). Thanks to this trend, OMO has
a vast opportunity to increase their market share, as well as easily reach out to consumers due to the high
volume of urban retailer and reseller. In addition, more people living in urban areas would require a higher
demand for convenient and effective products to better serve their hustle-and-bustle life. Therefore, automatic
washing machine products play an important role in the homecare products market, with 87% of households
in urban areas using washing machines (Kantar Worldpanel Vietnam Insight Handbook 2019, pp.42), leading
to a higher demand for OMO Matic.

2.2. ECONOMIC
The GDP per capita of Vietnam is approximately 60 million VND in 2019 (Euromonitor International 2019,
Figure 9.), a 0.03 % increase from 2018. This concrete development has shaped the disposable income growth
over the years, which in turn mobilizes a considerable growth in total consumer expenditure in Vietnam from
US$80 billion from 2010 to US$171 billion in 2018 (Vietnam News 2019). At Unilever’s disposal, these
economic factors are their core primary levers to focus on upgrading their innovation and diversification of
their concentrated liquid detergent product - OMO Matic in the stable and high income market segment.

Furthermore, Vietnam News (2019) stated that Vietnam would become one of the most developed markets by
2030 with the GDP growth and disposable income are forecasted to reach 91.4% and $9,740 per household
over the period of 2019-2030. These key trends will bring a positive effect on the OMO detergent products
market because it is likely that Vietnamese people are more quality prioritized over price sensitive. In other
words, customers are willing to pay for high-quality products with convenient and useful features, creating
opportunities for concentrated products like OMO Matic.

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2.3. POLITICAL
The policy of building an industrialized and modernized economy in Vietnam (chinhphu.vn 2019) is a
great opportunity for foreign companies, Unilever, to promote investment and develop their product in the
Vietnamese market. To be more specific, Investment Law (National Assembly) (2005) 59/2005/QH11 2019
was approved in November 2005 to ensure investors’ legitimate rights and interests, investment incentives
for investment in Vietnam, and investment from Vietnam to abroad (chinhphu.vn 2019). Furthermore, the
Political stability index of Vietnam is quite stable recently, which was 0.2 in 2018 (Euromonitor International
2019, Figure 10.). This helps OMO attract both local and foreign investment more easily.

2.4 NATURAL
Businesses nowadays not just only focus on profitability but also the environment and social development
because consumers are more aware of social responsibility than ever (Mantaeva 2019). Fortunately, Unilever
is quite successful in terms of maintaining and develop its corporate social responsibility. They employ
plastic packaging for the purpose of recycling and re-usage (Unilever Annual Report and Accounts 2018).
In addition, they achieved their target of sending zero waste to landfill in 2014 and still focus on maintaining
that performance (Unilever 2019). Based on the Unilever Sustainable Living Plan (USLP), during the process
of manufacture liquid laundry detergents, they use 100% palm oil from sustainable and environment-friendly
source. Nevertheless, they are in the process of redesigning and innovating products to “bring more benefits
to people while cutting greenhouse gas emissions (Unilever 2019). Those plans and strategies have generated
positive impacts and images of Unilever as well as OMO toward society, helping them easily to gain interests
and huge support from consumers.

2.5. TECHNOLOGY
As we are living in the century 4.0, technology is an integral tool for doing business. Currently, among
nearly 95 million of Vietnam’s population, there are 55,19 million internet users and 35,4 million people use
e-commerce as the main method of shopping (Shira 2019). Associated with the development of e-commerce
sites such as Lazada, tiki and shoppe, creating a huge opportunity for OMO and Unilever to selling their
product and reaching closer to customers. Another important factor is Research and Development (R&D). As
CNBC News reports (2019), the main institution investment of business is R&D due to the increasing demand
for new products’ growth and features. Particularly, customer experiences are the key driver of value as in this
manner, OMO Matic is annually upgraded to be receptive to market competitiveness and customers’ technical
needs such as features of color protection or stain defensiveness. One of the most essential factors for the
company to compete with its competitors is to stay ahead of the technological element. To be more specific,
companies also have to combine new manufacturing materials and techniques to bring the costs down and
critically capture the high customer loyalty and life-time value. To catch up with this trend, in 2018 Unilever
appointed the first R&D officer with more than 6000 people in the team, committing to growing business and
making a positive impact in the world (Unilever 2019).

2.6. CULTURAL
The report from Vietnam Insider (Nguyen 2019) indicates that Vietnamese people watching online
advertisements in 19 seconds, which is the longest time compared to the average in the world with 8-9
seconds. This positively affected OMO as they annually introduced a lot of impressive online advertisement
campaigns, especially “Tết is fulfilled when...” advertisement, which is ranked the top 10 most viewed videos
in 2018 (Advertising Vietnam 2018). Understanding that Vietnamese people are family-oriented, OMO has
succeeded in bringing a new breeze into the bustling atmosphere of traditional Tết holiday to captivate our
desire to reunite with family members. The Tết 2018 campaign “The Imperfect Moments that Bring Out Perfect
Tet Experiences” was long-lastingly anchored in Vietnamese household’s online conversations, leaving an
enduring impression on the founding of new mindsets, new social patterns during Tết holiday. This brand
message is a socio-cultural pioneer in ways that this cultural approach to Tết underlies how transforming
it is for Vietnamese people to downplay the burdens of ‘imperfect’ moments like dirts and embrace that
imperfection to truly embrace family bonding and enjoy these moments.
Moreover, Vietnamese consumers prefer to purchase homecare goods in effortless and time-saving convenience
stores (Kantar Worldpanel Insight Handbook 2019, pp. 59), which could, however, negatively affect OMO
sales as OMO Matic has yet to be widely distributed in those convenience platforms.

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III. SWOT

STRENGTH WEAKNESS

• Innovation in new products with new formulas
and production methods which can offer numerous
selections for different customers.
• Cooperating with a huge number of retailers in
Vietnam such as Lotte Mart, Coop Mart,etc helps OMO
in bringing its products to the final customers faster.
• OMO is a leading firm with 83% respondents saying
that they have used OMO at least one in their lifetime.
Therefore, OMO has shown to be one of the most
popular brands in terms of laundry detergent in Vietnam.
• There is no dedicated brand stores to exhibit
and sell OMO Matic. Essentially, this dependence
on retailing network would narrow their influence
on consumer behaviours and their end decisions.
• Due to Vietnamese preference in proximity
and ease of shopping, there is a substantial
development of convenience store and mini
market retail channel in Vietnam. Meanwhile,
OMO Matic does not focus well on together with
making use of this platform which might cause
OMO to lose its future market share.

• Success of OMO in maintaining and developing its

corporate social responsibility such as waste treatment
strategies. Thanks to this, OMO can gain trust from its
clients as it has proved to be eco-friendly.

OPPORTUNITIES THREATS

• A significant increase in the number of
supermarkets over the 2-year period from 2017 to the
end of 2018. Hence, OMO could have a wide source of
retailers and bring its products to many clients.
• Smart cooperation with four marketing agencies
namely Biz-Eyes, MullenLoweVietnam, Mindshare
Vietnam, Ogilvy & Mather Vietnam helps OMO in
attracting consumers to engage with the brand stories
logically and emotionally.
• Vietnamese people spend the longest time watching
advertisements compared to other countries
(Nguyen 2019). Consequently, this habit can be taken
advantage by OMO through providing lots of interesting
advertisements to attract customers.
• OMO Matic has close and potential
competitors like international brand P&G’s Ariel
or budding local brands Lix and Aba.
• Regarding supplier, the official chemical
provider Vinachem is now having a 10,000
billion VND debt. Consequently, the cooperation
between OMO and Vinachem is likely to be
unsustainable.
• Owing to aging population issue, there is a
likelihood that OMO might lose its market if no
proper action is taken.

• The growth of GDP and disposable income

together with the high living standards in Vietnamese
people would possibly lead to the significant increase
in the demand for premium quality products. Thanks to
this, OMO can meet consumers’ needs by offering high
quality products with high price at the same time.

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IV. STDP
1. SEGMENTATION

Segment Demographic Psychographic Behavioural Geographic

- Age: 30-44 - Social Class: middle and - Loyalty: medium Metropolitan
- Gender: Female upper class - User status: Density:
- Marriage Status: - Personality traits: caring, regular High
Married gentle, family-oriented, - User rate: heavy
- Family Size: 3-4 open-minded, supportive, user
The people realistic - Benefit sought:
Modern - Income: Middle - High - Lifestyle: busy, modern, high-quality,
Mom Income (>15 million) prioritize product’s quality, eco-friendly,
- Occupation: Varies concern about health and long-lasting scent,
- Education: College environment, settle in work convenient, time-
Graduate, Master’s and family saving
Degree
- Age: 45-64 - Social Class: middle class - Loyalty: High Mostly in
- Gender: Female - Personality traits: - User status: sub-urban
- Marriage Status: family-oriented, practical heavy user areas, some in
married conventional, conservative - User rate: high rural areas
- Family size: 4 people - Lifestyle: busy with - Benefit sought: Density:
The
or more household chores, mostly bright and clean Average
Traditional
- Income: Middle stay at home, concern clothes, remove
Woman
income (about 15 over price, prefer powder stains easily, nice
million) detergent, compare brands scent, quality must
- Education: Varies before buying, purchase at be compatible with
- Occupation: mostly traditional channels the price
housewife
- Age: 27-40 - Social class: middle - high - Loyalty: medium Metropolitan
- Gender: Both class - User status: Density:
- Marriage Status: not - Personality traits: regular user High
married sophisticated, independent, - User rate:
- Family Size: single career-oriented, value medium
person freedom, optimistic - Benefit sought:
The Single - Income: Middle - High (DePaulo 2019) color protection,
Adult income (>15 million) - Lifestyle: active convenient, high-
- Occupation: Varies consumer, adaptable to quality products,
- Education: College/ changes, dedicated to work, long-lasting scent
Master’s Degree well-organized, flexible, eco-friendly
- Background: Single, cultivated senses/needs
live alone for upscale, high-quality
products, services

2. TARGETING
OMO has effectively adapt the differentiated targeting strategy by recognizing distinctive needs from
customers and offering various lines of liquid detergent to them, based on their habits, preferences, and even
based on their washing machines (front load - top load).

OMO Matic, is mainly targeting The Modern Mom. Being the largest consumer segment in terms of age, with

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strong purchasing power that comes from rapidly rising income (Euromonitor International 2018), Vietnamese
women in their 30s have a solid demand for high-quality household merchandise. This segment can quickly
accommodate to the liquid detergent, as they prioritize premium quality, eco-friendly products which also
provide convenience over price (Euromonitor International 2019). In addition, if this segment is successfully
captivated, they will widen the brand awareness within their families, especially their children. This will be
significantly beneficial for OMO in the long run.

Another segment that OMO currently aims for is The Single Adult, which is approximately 15% of the
population in 2030 (Euromonitor International 2019). As mentioned before, these people possess strong
buying power, backed up by constantly increasing income. Being independent also means they can spend
more on premium products, in order to enhance their living conditions. Furthermore, OMO Matic is mostly
being sold in modern channels such as supermarkets, which makes it reachable for this segment. If OMO can
attract and increase the loyalty of this segment, they will accumulate a high life-time customer value, which
is extremely profitable for the brand. However, as they live independently, their user rate will not be high as
there are less people in the household.

3. DIFFERENTIATION
Product Differentiation
With a view to serving different demands of customers, OMO Matic has created several types in the same
category with it, namely OMO Matic Polyshield, OMO Matic Deodorized, OMO Matic Gentle, OMO Matic
Durable and OMO Matic Comfort.

To attract sporty people who usually do intense exercises and have their clothes become dirty because of sweat,
the brand produces OMO Deodorized. This type, with lemon as the main ingredient, also attracts busy officers
who do not have enough time to dry their clothes under the sunlight. Moisture can percolate unpleasant odor in
clothes, making them uncomfortable to wear. Therefore, OMO Deodorized type is definitely the right choice
for this situation.

Regarding babies whose skin is sensitive, OMO Gentle will be a suitable product since its ingredients are
completely harmless. The brand also came up with other product types such as OMO Comfort (with more
scent) and OMO Durable, with special ingredients from natural essence such as pomegranate (color protection
and oxidation protection) and bamboo (strong protection against harmful UV rays) for luxury clothes or those
with many small details. Last but not least, the most popular type for families is the OMO Polyshield, thanks
to its longest-lasting existence among all types. As its name suggests, OMO Polyshield which is used to make
clothes be more dirt-resistant can be used by any consumer segment above.

Services Differentiation
Not just good at satisfying customers and meeting their needs with the products per se, OMO is also a companion
to help them solve problems about clothes washing by giving tips through web posts (Cleanipedia), on social
media (Facebook) or through hotline. Moreover, among powerful washing detergent brands, OMO is the only
brand owns a personal website in Vietnamese, so that customers will be provided with a space to search and be
updated information about OMO Matic’s products. This also creates a sense of speciality for their customers
when using the products.

Image Differentiation
Opposed with a popular insight: Asians prefer to be clean and neat. Even when it comes to the young
generation such as kids and teenagers, they are usually not allowed to play with dirt. That is why OMO has
transmitted a message “Dirt is Good”, to make people understand that lying inside the meaning of being dirty
is the progress of growing up, new experiences, discovery and the happiness of their child.

A familiar brand to both urban and rural people: Advertising videos of OMO have the background of
various areas, in both rural and urban, which turns OMO to be a national brand even to people living in the
countryside, despite its high cost.

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More than a washing detergent brand: OMO advertises its image through other aspects of people’s life.
The Bumper Sequence Ads, one of their ideas, are 6-second advertising videos to remind viewers of the
prolonging period of time they have spent on the digital screen. Although the main aim of the advertisement
is to popularize the brand’s “Bring the ‘real summer’ back to Vietnamese kids” campaign, it is undeniable
that they have transmitted a meaningful message to the public awareness. Another outside aspect that the
brand cares about is the family’s bonding. Regarding the Tết 2018’s campaign, OMO has proved its great
care in the connection of family members. Again, the brand has well approached a common insight of a
traditional Vietnamese family:“Mom is in charge of everything in the house to make sure they are all perfect
in Tết holidays”. However, for the brand, “Perfection is not necessary for the happiness of the family in Tết
holidays” and OMO pulled the nation’s attention into their philosophy ‘The Imperfect Moments that Bring out
Perfect Tết Experiences’.

4. POSITIONING
The three most important factors that consumers consider when buying the product are product quality, brand
and price (W&S Company Limited 2013). Therefore, stain removal effectiveness, price, brand awareness,
and marketing influence would be the specific attributes to determine the market position of OMO Matic,
as these factors could significantly affect how consumers and public perceive the brand, thus their purchase
decisions.

Positioning map 1 Positioning map 2

a/ Positioning map 1
Price: OMO Matic’s price was quite high compared to OMO Matic Polyshield (4 liters) 239,000 VND
other competitors’, but still slightly lower than Ariel,
Ariel Matic (3.8 liters) 239,000 VND
its strongest competitor. The table beside demonstrates
that for the same price, we can only purchase 3,8 liters Lix Aloe Vera (4 liters) 116,000 VND
of Ariel, but 4 liters for OMO Matic. On the other OMO Matic Polyshield (2.7 liters) 163,000 VND
hand, Lix only priced half of OMO Matic for the same
Aba Matic (2.75 liters) 150,000 VND
quantity, and Aba charges consumers briefly lower for
almost the same capacity. (Adayroi.com n.d.)

Stain-Removal: OMO Matic has successfully positioned itself as a leading detergent in stain-removal
functionality in Vietnam. With the discernible POLYSHIELD technology, OMO Matic guaranteed to remove
the stain effectively and prevent the dirt from the fiber (OMO n.d.). In this aspect, Ariel is a comparable
competitor, as it is committed to help removing tough stains, cleaning and whitening garments (Ariel n.d.).
Other brands also offer moderate effectiveness. However, as their costs are fairly lower, the features are not as
distinguishable and differentiated, therefore it should be ranked lower.

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b/ Positioning map 2
Marketing Influence: As mentioned above, OMO’s marketing strategies is diverse and well-developed. OMO
launched many campaigns and projects, brought meaningful family values and contributed to the well-being of
children. OMO has proved to have a stronger influence on the society. Ariel also has many effective marketing
campaigns, however, has not yet to make a significant impact compared to OMO. Aba, on the other hand, has
moderately high awareness, but really weak influence due to their inactivity in marketing.

Brand awareness: Figure 11 outlined that in 2013, OMO led the market with 100% brand awareness (W&S
Company Limited 2013). Accounted for 87% TOM awareness (W&S Company Limited 2013), OMO was the
brand that immediately come to mind of consumers in terms of detergent (Doyle, C 2016). Even though the
market has changed dramatically over the past few years, OMO’s reputation in the market still remains strong
compared to other competitors.

c/ Value proposition:
OMO Matic has successfully adapted the “More for more” proposition strategy. The brand priced its products
higher than most of the competitors, however, it offers superior values in exchange. Innovative formula and
features, exceptional support services and meaningful social values all justified OMO’s position as a first-rated
and distinguishable brand in the concentrated liquid detergent market in Vietnam.

V. CONCLUSION

In conclusion, OMO Matic has steadily succeeded in providing one of the most high-quality and widely-
recognized liquid laundry detergents to Vietnamese consumers in this moderately changing and competitive
laundry market together with delivering an exceptional capacity to foster brand-new ideal national values and
philosophy: “Dirt is Good”. To Vietnamese public’s awareness, OMO is truly a game-changing champion of
children’s personal development with creativity and discovery freedom, and close family bonding. Behind
this, Unilever’s plenty of creativity and innovation effort with the help of their wide range of partnerships
has coalesced into advertising their products, building a reliable, household-friendly image and sustaining
corporate social responsibility. In this sense, their marketing campaigns reflect their high flexibility and
receptiveness. What is more, by taking clients’ feedback into account, OMO has successfully diversified their
liquid detergents that strikingly meet customers’ needs. OMO Matic is highly-priced because of its highly-
regarded ability of color and fabric protection, stain removal, and its diverse scent portfolio. However, in
order to stay ahead in the market, challenges are still expectedly mounted against OMO Matic as they might
encounter many difficulties when confronting other competitors in the laundry market - P&G’s Ariel Matic,
Lix, or Aba Matic - or sustaining a certified domestic supplier portfolio.

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VII. APPENDICES

Figure 1. Number of Supermarkets in Vietnam in 2018, 2018

Figure 2. Percentage of Value Share of Trade/Retail Platforms in

Vietnam from 2012 with 2025 prediction, 2018

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Figure 3. Brand’s Share of Voice on Mother’s Day, 2019

Figure 4. Percentage of Vietnamese Consumers’ usage rate of Detergent Brands, n.d.

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Figure 5. Number of Social Network Users in Vietnam, 2019

Figure 6. Social media stats Vietnam, 2019

Figure 7. Vietnam’s population from 2010 to 2019, 2019

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Figure 8. Vietnam’s Urban Population from 2009 to 2018, 2019

Figure 9. Vietnam’s GDP from 2013 to 2019, 2019

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Figure 10. Political Stability and Absence of Violence Index from

2013 to 2018, 2019

Figure 11. Laundry detergent brand awareness in 2013, 2013

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