PROPOSAL

Jun to August 2014

Content

1 Overview

2 Sales Analyses

3 SWOT Analyses

4 Strategy

5 Conclusion

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Overview
External factor:
 Customer:
– Pharmacies just sell products which have descripted or recommended by
doctors/pharmacists
– Pharmacies just sell products which have known by advertise on Mass
media.
– Pharmacies sell which products bring high profit
Habit to use:
– Effervescent tablet is often recommended to use separately with others
– Pharmacists combine a lot of drugs to treat a disease with daily cost is
around 15,000 vnd

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Overview
External factor:
 Direct competitor:
 No player has invested mass media
 Focus on price:
• Big discount for key customers: 30 – 35% (Pepfize)
• Cheap price.
• High profit for customers
– Product: similar to Pepfiz: design, color
• Pepfize is considered as Pepfiz VN
– Quality: although a food supplement, Pepfize has successful to get a trustworthy

Item Manufacturer Purchasing price Selling price

Dizzo Rajat - India 2,300-2,500 3,000 – 3,500

Pepfize Truong Tho - VN 1,700-1,850 2,000 – 3,000
Eno GSK  2,500 3,000
Peptifiz-US US Pharma - VN  1,800 3,000

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Overview
External factor:
 Other Causes:
– The temperature is too hot, it affects a quality of product.
– Effervescent tablets is not preferred to use by pharmacists at the hot weather
 Other Competitors:
– Not effervescent tablets
– Cheap price
– Easy to combine with other drugs to treat a disease
– Prescript by doctors as Neopeptine
 DKSH Distributor:
– High professional
– High order’s value: >=500,000 vnd/order
– DKSH have many brands so they do not focus on Reliv brand => the
recognition of Dizzo is not much

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Overview
Internal factor:
 Visa:
– Dizzo’s visa will be out of date in Sep 2014
 Staff:
– No. of pharmaceutical representatives are 12 persons: HCM: 5, North:
5(HN,HD,ND-TB,HP), East: 2(BD,VT), not enough to cover the whole
market
 Stock on hand: high stock (22 May 14)
– DIZZO EFFERVESCENT TAB. B/12 : 11,717  2,929 B/48
– DIZZO EFFERVESCENT TAB. B/48 : 11,586
– New shipment will arrive in the end of May

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 Sales Analyses
 Sales trend through DKSH from June’2013 to April’ 2014 (box- 48’s)
– The sales trend has been grown vs last year.
– Need to have an action to keep forwarding

12,000 350%
10,941

10,000 300%
8,265 250%
8,000 7,669
7,181
205% 200%
5,717 5,837
6,000 5,343
4,778 4,845 70%
150% 4,542 150%
75% 102%
4,000
2,788 107% 110% 100%
297%
2,000 55% 50%
39%

- 0%
t r r r r
ne ly us be be be be 14 '1
4
'1
4
'1
4
J u Ju g o n' b ar r
Au em ct em em J a Fe M Ap
ept O ov ec
S N D

Dizzo 48's Linear (Dizzo 48's) Growth vs LM

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 Sales Analyses
 Sales trend through DKSH from June’2013 to April’ 2014 (box- 48’s) by channel:
– Almost sales came from the wholesaler and equal 50% contribution by the end of
long period
– Need to improve pharmacy contribution
100%
90% 1,120
80% 2,909
1,426 4,137 2,139 2,437 2,796
70% 3,107 6,199 4,340 3,141

60%
76%
50%
40% 3,650
30% 4,259
1,361 4,116 2,404 2,375 3,036
20% 2,232 4,737 3,329 2,567

10%
0%
June July August September October November December Jan'14 Feb'14 Mar'14 Apr'14

Pharmacy Hospital Pharmacy Wholesaler

CHANNEL2 June July August SeptemberOctober November December Jan'14 Feb'14 Mar'14 Apr'14 Grand Total
Pharmacy 76% 59% 49% 50% 53% 49% 42% 43% 43% 45% 52% 50%
Hospital Pharmacy 0% 0% 0% 0% 0% 1% 0% 0% 0% 0% 0% 0%
Wholesaler 23% 41% 51% 50% 47% 50% 58% 57% 57% 55% 48% 50%
Dizzo 48's 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

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 Sales Analyses
• Sales trend through DKSH from June’2013 to April’ 2014 (box- 48’s) by region:
77% contribution is HCM and MK Delta
1/ Should maintain top contribution
2/ Increase size and develop other contribution
6000
HANOI NORTH HIGHL
5000
0% 0% 7% SOU
4,862 TH
7%
4,202 4,158
4000
3,549
CENTER
3000 3,063 9%
2,245 2,758HCMCT
2,518 44%
2,385 1,966
2,219 2,071 2,085
2000 1,898
1,708 1,777 1,843
1,415 1,556 1,911
1,249 MKNGD
1000
688 33%

HANOI NORTH HIGHL SOUTH CENTER MKNGD HCMCT

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 Sales Analyses
• Sales by:

Grand
Saleby 6 7 8 9 10 11 12 1 2 3 4 5
Total

DKSH 3,102 3,340 1,231 4,288 2,147 2,852 2,420 3,979 3,544 1,647 1,966 1,465 31,978

Reliv 219 868 318 1,341 828 60 1,226 3,923 2,494 2,622 3,147 988 18,034

Tu dat 1,457 2,974 1,240 2,637 1,567 1,933 1,697 3,038 1,631 1,448 724 545 20,891

Grand Total 4,778 7,181 2,788 8,265 4,542 4,845 5,343 10,941 7,669 5,717 5,837 2,998 70,902

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 SWOT Analyses
Strength
- Importing products
- Drugs
- Unique effervescent tablet: relief from
gas, heartburn & indigestion
- New technology from UK
- 3 years shelf - life
Opportunities
- Good quality
- Approved by Drug Administration of
Vietnam => feel secure for pharmacies
- Apply new technology => effective fast
Weakness
- Do not popular or accept by customers
and consumers
- High price
- Coverage low
- Low integrated investment for
marketing.
Threat
- Price of competitor product is low =>
easy to sell, more profit
- Competitor products are accepted by
consumers => difficult to change
consumer’s mind set and increase
market share
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SWOT Analyses
Current Issues:
− Low coverage
− Low acceptance from customers and consumers
− High stock => lost money for storage
Objective:
− Increase coverage
− Incease brand awareness to boost sales
− Clear stock
Strategy:
− Open new let to increase coverage and boost sales
− Mystery shopper to increase brand awareness and boost sales
− Display program at pharmacy to boost sales

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 Strategy
1. Open New Outlets & Focus sales
 Objecive:
– Increase coverage
– Boost sales
 Duration: 3 months
– From Jun – August
 Target customer:
– All potential pharmacies in nationwide
Mechanic:
– Target: 600 outlets of Dizzo per month
– Definition of new outlet: potential pharmacies which had not in the Reliv
customer list from the starting with DKSH up to now.

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 Strategy
1. Open New Outlets & Focus sales
 Estimated sales:
No. of new outlets /month: 600
Month Estimated sales/outlet/month Amount
Jun 2 1,200
Jul 2 1,200
Aug 2 1,200
Total 3,600
Total revenue 445,714,286

 Estimates cost:
Total New Unit cost per Discount 50%
Total Amount Note
Outlets outlet per outlet
Discount fee will be applied if Reliv
1,800 106,000 53,000 95,400,000
participates YPC program

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 Strategy
2. Mystery shopper
 Objecive:
- Increase brand awareness
- Encourage pharmaceutical representatives introduce Dizzo to consumers
- Increase sales
 Duration: 2 months
- From Jun 2014 – July 2014
Target customers:
- Pharmacies have 3 – 5 staffs: 20%
- Pharmacies bought Dizzo: 30%
- Pharmacies are selling competitor products: 50%

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 Strategy
2. Mystery shopper
 Mechanic:
- 4 visiting rounds in 2 months
- Pharmaceutical representative invites and convinces pharmacy
participating mystery shopper program
- Pharmaceutical representative sign contract with pharmacy
- Pharmacies will be offered special scheme when they buy product during
program
- Pharmacies have to commit they always intruduce Dizzo to consumers
during program
- Consultants will receive a gift when they meet required of program

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 Strategy
2. Mystery shopper
 Prizes:
- Special scheme for pharmacy:
Buy 15 Dizzo B/48 + 2 Dizzo B/48
- Prizes for consultants in pharmacy:

No. Round Prizes No. of prizes Unit price Amount Note

1 Round 1 Mobile card 200 100,000 20,000,000  

60% selling
2 Round 2 1 Dizzo B/48 - 130,000 200 78,000 15,600,000
price
3 Round 3 Buying Dizzo 200 12,000 2,400,000 1 pack - 4 tab
4 Round 4 Supermarket voucher 200 300,000 60,000,000  
Total prizes 98,000,000

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 Strategy
2. Mystery shopper
 Estimated sales:
Sales per
No. of Estimated
Pharmacy pharmacy (per Estimated sales (%)
pharmacies Sales volume
month)

Pharmacies have 3 – 5 staffs – 20% 40 15 30% 360

Pharmacies bought Dizzo – 30% 60 5 70% 420

Pharmacies are selling competitor
100 2 50% 200
products - 50%
Total 200     980
Total sales revenue 127,400,000

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 Strategy
2. Mystery shopper
 Estimated cost:
Unit cost Amount
No Description Unit Quan Remarks
(VND) (VND)
1  Sign contract with pharmacy         6,000,000  

  - 800 Nhà thuốc pharmacy 200 30,000 6,000,000    

2  Quà         98,000,000  
 
  pharmacy 200 100,000 20,000,000    
- Round 1 - Mobile Card
 
  pharmacy 200 78,000 15,600,000   60% selling price
- Round 2 - 1 Dizzo B/48
 
  pharmacy 200 12,000 2,400,000   1 pack - 4 tab
- Round 3 - Buying Dizzo
 
  pharmacy 200 300,000 60,000,000    
- Round 4 - Supermarket voucher
 
3         10,000,000  
Mystery shopper - 8
- 800 pharmacies – 4 visitting Per day: 2 mystery shoppers/ day
  day 25 200,000 10,000,000  
round No. of pharmacies per day:16
 
      TOTAL   115,872,000  
 

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 Strategy
3. Display program in pharmacy
 Objective:
– To build brand image and the visibility of products
– Boost sales
 Duration:3 months
– From Jun – Aug
 Target customer:
– Potential pharmacies who are in the DKSH’s YPC program – 300 pharmacies
 Mechenic:
– Display 8 real boxes of Dizzo (Dizzo B/48)
– Commitment consulting Dizzo for end-users

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 Strategy
3. Display program in pharmacy
 Estimated sales:
No. of Estimated Estimated
Total sales Total Revenue Note
pharmacies sales/outlet sales (%)

90% - 100% 2,160 2,400 267,428,571 297,142,857 - Sales have just committed
since the second month of
80% - 100% 1,920 2,160 237,714,286 267,428,571 program (min)
300 4 - Fee will be charged based on
60% - 80% 1,440 1,920 178,285,714 237,714,286 actual
=> free of charge if lower than
<60% 1440 178,285,714
60%
 Estimated cost: Framework display

Unit cost/
Area Quan Discount (30%) Amount
outlet
Ha Noi 70 $ 25 $ 17.50 $ 3,675
Ho Chi Minh 140 $ 25 $ 17.50 $ 7,350
Da Nang 30 $ 25 $ 17.50 $ 1,575
Can Tho 30 $ 25 $ 17.50 $ 1,575
Hai Phong 30 $ 25 $ 17.50 $ 1,575
Total 300     $ 15,750
Total Revenue   VND 333,900,000

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Conclusion

Item YPC - DKSH

Focus Tele Reliv Display Mystery Shopper
Display

Cost 66,652,800 333,900,000 98,000,000 115,872,000

95,400,000

Revenue 468,000,000 510,900,000 312,000,000 390,000,000 127,400,000

Convertion rate 20% 13% 107% 25% 91%

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Thank you!