The biggest PR program the company has done is the “Living beauty” activation program. The program combines the distribution of product samples and a festival to guide women to become modern women, perfecting both their external beauty and their lifestyle. This activity is supported by a series of articles in newspapers. The program is well-reviewed, but it only lasts for a short time and there is no maintenance activity, so it does not have a continuous impact on consumers.
In addition, Nivea also has PR activities combined with introducing new products, mainly newspaper articles and often has the disadvantage of being heavily promotional.
Promotion
Promotions include consumer and retail promotions.
Promotion for consumers
The usual form of promotion that Nivea uses is to buy skin cream and get free facial cleanser, or buy day cream and get free night cream. These big promotions for consumers are widely advertised on television and in newspapers.
Promotion for retailers
The usual form is a direct discount on the order or an additional product, such as buy 10 get 1 free, etc. In addition, product display programs also bring benefits to the seller, with the usual reward for the display being a product or other valuable gift.
2.4. Analysis of main competitors
2.4.1. Pond's:
Market share and growth over the years
Pond's has been the market leader for many years. During the period 2004 - 2006, Pond's had a market share of 22 - 24%, far surpassing other competitors, while the remaining brands had small and unstable market shares.
However, Pond's gradually lost market share since Olay officially appeared in the Vietnamese market in mid-2005. Over time, Pond's also revealed weaknesses in product quality, causing Pond's market share to decline sharply. By 2008, Pond's market share was only 11.3%.
Brand building:
Target market:
Pond's has a wide product range with many product lines aimed at different target markets.
- Skin whitening cream product line : female customers, young 18-34, single, average economic level (CD), college or high school level or higher. This is Pond's main market.
- Anti-aging cream product line : female customers, 25 - 45 years old, married, high economic level (AB), university or college degree or higher
Brand positioning
Average price positioning, pretty good quality.
Brand image positioning: Trusted and innovative brand that effectively whitens skin.
Consumer perception of the brand:
- Highest brand awareness of all skin cream brands. High purchase consideration and trial levels, but conversion to regular use is not very high (40%).
- Pond's is perceived by consumers as a trustworthy brand, reasonably priced, innovative brand, wide range of products, natural ingredients, effective skin whitening, frequent advertising and attractive, prominent advertising.
- Brand personality: dynamic, fashionable, modern, youthful, feminine.
Marketing Mix Strategy
Products : wide product range, including whitening cream and anti-aging cream. Whitening cream is Pond's main product line. Products come in many sizes (10g, 30g, 30g, 50g), many different packaging types and product functions. Beautiful, luxurious packaging.
Price: prices range from low to mid-range for skin whitening creams to high for anti-aging creams.
Distribution : widely distributed throughout the country, including the provinces due to diverse product prices, easy penetration, and very strong push and pull strategies.
Promotion : Pond's is the brand that spends the most on promotion. Pond's advertising budget accounts for nearly 40% of the advertising budget of the entire market with very strong advertising activities on television, newspapers, magazines, radio, internet, outdoor advertising such as billboards, bus stations, etc. The advertising image is luxurious, modern but close to Vietnamese consumers. Pond's is also a brand that is very active in sponsorship and public relations programs. Some recent major programs include the Golden Swallow program (MC competition of Ho Chi Minh City Television Station), Vietnam Supermodel, etc. Activities
New product sampling is organized on a large scale. Promotions are large and frequent. Major promotions are strongly supported by media to create a total effect.
Pond's Strengths and Weaknesses Analysis
Strengths
- Strong capital potential as the flagship brand of Unilever, one of the largest consumer goods companies in the world. Large marketing budget, creating the overall strength of huge advertising and promotion campaigns.
- Attractive advertising, the product entered the Vietnamese market very early, so there is a high level of consumer awareness and love for the brand.
- Diverse products and prices, penetrating many different market segments. Beautiful, luxurious product packaging.
- Strong and widespread distribution system. The brand has the highest distribution level in the market.
- Using a variety of media with high synchronization in the communication campaign, for very good communication effectiveness.
Weaknesses:
- Over time, product quality gradually revealed weaknesses compared to competitors, causing Pond's to gradually lose market share.
2.4.2. Olay
Market share and growth over the years
Only officially present in the Vietnamese market since 2005, but Olay has made rapid and remarkable progress. After only 1 year, Olay has reached 19% of the market.
share, roughly equal to the then market leader Pond's. In 2008, Olay was the market leader with a market share of 24.8%.
Brand building:
Target market:
Female customers, high economic level (AB), university or college degree or higher. Olay has two product lines targeting two age groups with different needs: 18-34 years old for skin whitening cream and 25-55 years old for anti-aging cream. The market for anti-aging cream is Olay's main market.
Brand positioning
Positioning the brand at a high price and high quality in the mass segment. Brand image positioning: “The number 1 brand in America”
Consumer perception of the brand:
- High brand awareness, high conversion rate to regular use after trial. High brand preference.
- Olay is perceived by consumers as a trusted, leading brand, of high quality and effective anti-aging.
- Brand personality: dynamic, reliable, caring, feminine.
Marketing Mix Strategy
- Products : include skin whitening cream and anti-aging cream.
Size 20g, 40g, 50g. Beautiful, luxurious packaging.
- Price: high-end price in the mass market segment.
- Distribution : strong distribution, focusing on big cities due to the high price of the product.
- Promotion : focus on advertising. Olay's advertising budget in 2007 accounted for about 25% of the total market's advertising budget. The main advertising media are television and magazines. The advertising image is a housewife with beautiful skin, friendly and approachable style. Olay does not focus on sponsorship and public relations activities.
Olay Strengths and Weaknesses Analysis
Strengths
- Strong capital potential from one of the largest consumer goods companies in the world. Large marketing budget, relatively focused and effective marketing activities targeting the right target customers.
- Good product quality, suitable for Asian skin.
- Good product positioning and easy acceptance for Vietnamese consumers
- Products meet many different needs. Beautiful, luxurious packaging.
- Effective distribution system, focusing on the right target market.
- The advertisement is easy to remember, close to Vietnamese consumers, focusing on the brand's strengths, which are brand reputation and good product quality.
Weaknesses
- Not using a variety of marketing tools and media.
- Although the advertisement is easy to understand and familiar, it is not really attractive and impressive to consumers.
- PR activities are mainly promotional articles.
2.5. SWOT analysis of Nivea brand facial cream products
Table 2.7: Nivea SWOT Matrix
SWOT
OPPORTUNITIES 1. Consumer income is increasing, the market is developing to higher price segments. 2. Consumers are becoming more knowledgeable and focus more on product quality (functional) than on emotional factors. 3. Beiersdorf's growing investment in Vietnam. | THREATS 1. There are signs of saturation in the popular skin whitening product line, which is Nivea's target market. 2. Competitive pressure from competitors (Unilever, P&G) and more and more new brands entering Vietnam. 3. Pressure to increase marketing budget due to increased advertising and promotion costs. | |
STRENGTHS 1. The company has strong capital potential 2. World famous prestigious brand. 3. The brand is highly appreciated for its factors: high quality, reliability, recommended by experts. 4. Brand personality is protective and trustworthy. 5. Consistent, good quality products 6. There are many product lines 7. Beautiful, luxurious packaging 8. Good distribution in key markets, with leading distributors. 9. Focused promotional activities. Ensure consistency in communication campaigns. 10. Use a variety of media and luxurious advertising images. important, modern | S – O COMBINATION S2+S5+S6+O1: Exploiting the higher price segment with new product line S5+S7+S9+O1: building a leading brand image, beautiful packaging, luxurious advertising in the segments that Nivea targets. S2+S5+O2: Improve product quality, encourage product usage through increased trial activities, promotions, and marketing at points of sale. S3+S4+O2: maintain and promote the advantages of a trustworthy brand in positioning, ensuring top product quality. S8+O3: increase budget, invest in distribution activities S9+S10+O3: increase investment in marketing activities | S – T COMBINATION S6+T1: Focus more on anti-aging cream line with the orientation of being the main product line in the long term S1+S2+T2: increase investment and implement effective marketing to increase competitiveness compared to competitors. S3+S4+T2: exploiting the advantages of brand image and personality to increase competitiveness compared to competitors S5+T2: exploit the advantage of good product quality, encourage increased product usage. S9+S10+T2: ensure effective marketing activities, ensure consistency, increase investment to conduct large-scale and long-term marketing activities. S9+S10+T3: increase advertising and communication efficiency |
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Identify Rating Levels and Rating Scales
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of the islanders. Therefore, this indicator will be divided into two sub-indicators:
a1. Natural tourism attractiveness a2. Cultural tourism attractiveness
b. Tourist capacity
The two island communes in Quan Lan have different capacities to receive tourists. Minh Chau Commune is home to many standard hotels and resorts, attracting high-income domestic and international tourists. Meanwhile, Quan Lan Commune has many motels mainly built and operated by local people, so the scale and quality are not high, and will be suitable for ordinary tourists such as students.
c. Time of exploitation of Quan Lan Island Commune:
Quan Lan tourism is seasonal due to weather and climate conditions and festivals only take place on certain days of the year, specifically in spring. In Quan Lan commune, the period from April to June and from September to November is considered the best time to visit Quan Lan because the cultural tourism activities are mainly associated with festivals taking place during this time.
Minh Chau island commune:
Tourism exploitation time is all year round, because this is a place with a number of tourist attractions with diverse ecosystems such as Bai Tu Long National Park Research Center, Tram forest, Turtle Laying Beach, so besides coming to the beach for tourism and vacation in the summer, Minh Chau will attract research groups to come for tourism combined with research at other times of the year.
d. Sustainability
The sustainability of ecotourism sites in Quan Lan and Minh Chau communes depends on the sensitivity of the ecosystems to climate changes.
landscape. In general, these tourist destinations have a fairly high level of sustainability, because they are natural ecosystems, planned and protected. However, if a large number of tourists gather at certain times, it can exceed the carrying capacity and affect the sustainability of the environment (polluted beaches, damaged trees, animals moving away from their habitats, etc.), then the sustainability of the above ecosystems (natural ecosystems, human ecosystems) will also be affected and become less sustainable.
e. Location and accessibility
Both island communes have ports to take tourists to visit from Van Don wharf:
- Quan Lan – Van Don traffic route:
Phuc Thinh – Viet Anh high-speed boat and Quang Minh high-speed boat, depart at 8am and 2pm from Van Don to Quan Lan, and at 7am and 1pm from Quan Lan to Van Don. There are also wooden boats departing at 7am and 1pm.
- Van Don - Minh Chau traffic route:
Chung Huong high-speed train, Minh Chau train, morning 7:30 and afternoon 13:30 from Van Don to Minh Chau, morning 6:30 and afternoon 13:00 from Minh Chau to Van Don.
f. Infrastructure
Despite receiving investment attention, the issue of infrastructure and technical facilities for tourism on Quan Lan Island is still an issue that needs to be resolved because it has a direct impact on the implementation of ecotourism activities. The minimum conditions for serving tourists such as accommodation, electricity, water, communication, especially medical services, and security work need to be given top priority. Ecotourism spots in Minh Chau commune are assessed to have better infrastructure and technical facilities for tourism because there are quite complete and synchronous conditions for serving tourists, meeting many needs of domestic and foreign tourists.
3.2.1.4. Determine assessment levels and assessment scales
Corresponding to the levels of each criterion, the index is the score of those levels in the order of 4, 3, 2, 1 decreasing according to the standard of each level: very attractive (4), attractive (3), average (2), less attractive (1).
3.2.1.5. Determining the coefficients of the criteria
For the assessment of DLST in the two communes of Quan Lan and Minh Chau islands, the students added evaluation coefficients to show the importance of the criteria and indicators as follows:
Coefficient 3 with criteria: Attractiveness, Exploitation time. These are the 2 most important criteria for attracting tourists to tourism in general and eco-tourism in particular, so they have the highest coefficient.
Coefficient 2 with criteria: Capacity, Infrastructure, Location and accessibility . Because the assessment area is an island commune of Van Don district, the above criteria are selected by the author with appropriate coefficients at the average level.
Coefficient 1 with criteria: Sustainability. Quan Lan has natural and human-made ecotourism sites, with high biodiversity and little impact from local human factors. Most of the ecotourism sites are still wild, so they are highly sustainable.
3.2.1.6. Results of DLST assessment on Quan Lan island
a. Assessment of the potential for natural tourism development
For Minh Chau commune:
+ Natural tourism attractiveness is determined to be very attractive (4 points) and the most important coefficient (coefficient 3), so the score of the Attractiveness criterion is 4 x 3 = 12.
+ Capacity is determined as average (2 points) and the coefficient is quite important (coefficient 2), then the score of Capacity criterion is 2 x 2 = 4.
+ Exploitation time is long (4 points), the most important coefficient (coefficient 3) so the score of the Exploitation time criterion is 4 x 3 = 12.
+ Sustainability is determined as sustainable (4 points), the important coefficient is the average coefficient (coefficient 1), so the score of the Sustainability criterion is 4 x 1 = 4 points
+ Location and accessibility are determined to be quite favorable (2 points), the coefficient is quite important (coefficient 2), the criterion score is 2 x 2 = 4 points.
+ Infrastructure is assessed as good (3 points), the coefficient is quite important (coefficient 2), then the score of the Infrastructure criterion is 3 x 2 = 6 points.
The total score for evaluating DLST in Minh Chau commune according to 6 evaluation criteria is determined as: 12 + 4 + 12 + 4 + 4 + 6 = 42 points
Similar assessment for Quan Lan commune, we have the following table:
Table 3.3: Assessment of the potential for natural ecotourism development in Quan Lan and Minh Chau communes
Attractiveness of self-tourismof course
Capacity
Mining time
Sustainability
Location and accessibility
Infrastructure
Result
Point
DarkMulti
Point
DarkMulti
Point
DarkMulti
Point
DarkMulti
Point
DarkMulti
Point
DarkMulti
CommuneMinh Chau
12
12
4
8
12
12
4
4
4
8
6
8
42/52
Quan CommuneLan
6
12
6
8
9
12
4
4
4
8
4
8
33/52
b. Assessment of the potential for humanistic tourism development
For Quan Lan commune:
+ The attractiveness of human tourism is determined to be very attractive (4 points) and the most important coefficient (coefficient 3), so the score of the Attractiveness criterion is 4 x 3 = 12.
+ Capacity is determined to be large (3 points) and the coefficient is quite important (coefficient 2), then the score of the Capacity criterion is 3 x 2 = 6.
+ Mining time is average (3 points), the most important coefficient (coefficient 3) so the score of the Mining time criterion is 3 x 3 = 9.
+ Sustainability is determined as sustainable (4 points), the important coefficient is the average coefficient (coefficient 1), so the score of the Sustainability criterion is 4 x 1 = 4 points.
+ Location and accessibility are determined to be quite favorable (2 points), the coefficient is quite important (coefficient 2), the criterion score is 2 x 2 = 4 points.
+ Infrastructure is rated as average (2 points), the coefficient is quite important (coefficient 2), then the score of the Infrastructure criterion is 2 x 2 = 4 points.
The total score for evaluating DLST in Quan Lan commune according to 6 evaluation criteria is determined as: 12 + 6 + 6 + 4 + 4 + 4 = 36 points.
Similar assessment with Minh Chau commune we have the following table:
Table 3.4: Assessment of the potential for developing humanistic eco-tourism in Quan Lan and Minh Chau communes
Attractiveness of human tourismliterature
Capacity
Mining time
Sustainability
Location and accessibility
Infrastructure
Result
Point
DarkMulti
Point
DarkMulti
Point
DarkMulti
Point
DarkMulti
Point
DarkMulti
Point
DarkMulti
Quan CommuneLan
12
12
6
8
9
12
4
4
4
8
4
8
39/52
Minh CommuneChau
6
12
4
8
12
12
4
4
4
8
6
8
36/52
Basically, both Minh Chau and Quan Lan localities have quite favorable conditions for developing ecotourism. However, Quan Lan commune has more advantages to develop ecotourism in a humanistic direction, because this is an area with many famous historical relics such as Quan Lan Communal House, Quan Lan Pagoda, Temple worshiping the hero Tran Khanh Du, ... along with local festivals held annually such as the wind praying ceremony (March 15), Quan Lan festival (June 10-19); due to its location near the port and long exploitation time, the beaches in Quan Lan commune (especially Quan Lan beach) are no longer hygienic and clean to ensure the needs of tourists coming to relax and swim; this is also an area with many beautiful landscapes such as Got Beo wind pass, Ong Phong head, Voi Voi cave, but the ability to access these places is still very limited (dirt hill road, lots of gravel and rocks), especially during rainy and windy times; In addition, other natural resources such as mangrove forests and sea worms have not been really exploited for tourism purposes and ecotourism development. On the contrary, Minh Chau commune has more advantages in developing ecotourism in the direction of natural tourism, this is an area with diverse ecosystems such as at Rua De Beach, Bai Tu Long National Park Conservation Center...; Minh Chau beach is highly appreciated for its natural beauty and cleanliness, ranked in the top ten most beautiful beaches in Vietnam; Minh Chau commune is also home to Tram forest with a large area and a purity of up to 90%, suitable for building bridges through the forest (a very effective type of natural ecotourism currently applied by many countries) for tourists to sightsee, as well as for the purpose of studying and researching.
Figure 3.1: Thenmala Forest Bridge (India) Source: https://www.thenmalaecotourism.com/(August 21, 2019)
3.2.2. Using SWOT matrix to evaluate Quan Lan island tourism
General assessment of current tourism activities of Quan Lan island is shown through the following SWOT matrix:
Table 3.5: SWOT matrix evaluating tourism activities on Quan Lan island
Internal agent
Strengths- There is a lot of potential for tourism development, especially natural ecotourism and humanistic ecotourism.- The unskilled labor force is relatively abundant.- resource environmentunpolluted, still
Weaknesses- Poorly developed infrastructure, especially traffic routes to tourist destinations on the island.- The team of professional staff is still weak.- Tourism products in general
quite wild, originalintact
general and DLST in particularalone is monotonous.
External agents
Opportunity- Tourism is a key industry in the socio-economic development strategy of the province and Van Don economic zone.- Quan Lan was selected as a pilot area for eco-tourism development within the framework of the green growth project between Quang Ninh province and the Japanese organization JICA.- The flow of tourists and especially ecotourism in the world tends toincreasing
Challenge- Weather and climate change abnormally.- Competition in tourism products is increasingly fierce, especially with other localities in the province such as Ha Long, Mong Cai...- Awareness of tourists, especially domestic tourists, about ecotourism and nature conservation is not high.
Through summary analysis using SWOT matrix we see that:
To exploit strengths and take advantage of opportunities, it is necessary to:
- Diversify products and service types (build more tourism routes aimed at specific needs of tourists: experiential tourism immersed in nature, spiritual cultural tourism...)
- Effective exploitation of resources and differentiated products (natural resources and human resources)
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WEAKNESSES
1. Proactiveness in production and consumption is not high.
2. The brand is not highly regarded for its “natural” factor.
3. Brand personality is not dynamic or fresh.
4. The product is not really suitable for Asian skin.
5. Not focused on the big segment: anti-aging.
6. Not keeping up with the continuous improvement and development of new products from competitors.
7. Packaging is not clearly differentiated between product lines
8. Price as perceived by customers is higher than the level of customer satisfaction achieved.
9. The distribution system is very thin in tier 2 provinces and cities.
10. Low initiative and concentration in distribution.
11. Short-term focused marketing campaign.
12. The advertisement is not attractive and impressive compared to competitors. The image is not familiar to Vietnamese people.
13. Public relations are limited and heavily promotional.
W – O COMBINATION W1+O3: investment, support for distribution activities (establishment of Business Development department) W2+W4+O2+O3: develop and improve product quality to suit Vietnamese skin W2+W3+W12+O3: invest in marketing activities, build a brand image close to Vietnamese people, build a dynamic and unique brand personality. W6+O3: increase the speed of product innovation and development, increase the proactiveness of regional and area management of the company. W7+O1+O3: improve packaging, create clear differences between product lines W9+W10+O3: promote and expand distribution activities. W11+O3: Building a long-term marketing strategy W13+O3: increase the effectiveness of public relations activities, increase the connection with consumers. | W – T COMBINATION W5+W6+T1: shift focus to anti-aging cream line, maintain whitening cream line, speed up product development W1+T2: increase initiative to increase competitiveness W2+W3+T2: improve image (natural elements) and brand personality (dynamism) to increase competitiveness W4+T2: improve and perfect product quality W6+T2: speed up product development, keep up with competitors W7+T2: packaging improvement W9+W10+T2: increase distribution level W11+W12+W13+T2: increase advertising and public relations effectiveness, build attractive and impressive advertising W11+W12+T3: ensure effective marketing activities: focus and target the right customers |